2023

VR Education (AIM: VRE; Euronext Growth: 6VR), a leading virtual reality ('VR') technology company in the education, communication and virtual events space, and owner/developer of the ENGAGE platform, today announces its interim results for the six months ended 30 June 2020 (the ‘Period’ or ‘H1 2020’).

Highlights

• Accelerated demand for ENGAGE platform with now over 130 commercial customers
• Revenue increased by 83% to €1.25 million (H1 2020: €681,000)
• Expansion of ENGAGE to the Middle East for the first time through two commercial agreements in the United Arab Emirates: one for a global event for 12 international police forces and one for a commercial license with custom development work
• Strategic partner HTC Corporation ('HTC') has commenced selling its ENGAGE product, VIVE Sessions, in China, as part of a software bundle with HTC's new headset, the VIVE Focus 3, and with new HP ProBook laptops being sold in the region as announced on 12 May 2021
• ENGAGE revenue accelerated to €0.9 million (H1 2020: €0.2 million). ENGAGE revenue comprised 72% of total Group revenue for the period, up from 33% during the same period in 2020
• Planned continued investment in capabilities widens pre-tax loss to €1.3m (H1 2020: pre-tax loss of €1.1 million), although EBITDA loss flat at €1.0m (H1 2020: loss of €0.9m)
• Oversubscribed placing announced on 18 June 2021 raising €9.0m (£7.7m) before expenses at a price of 16 pence per share
• Net cash as at 30 June 2021 of €9.2 million

• In June 2021, VRE announced the planned development of a new fully featured corporate metaverse codenamed "ENGAGE Oasis" with the launch expected in the first half of 2022

David Whelan, CEO of VR Education, said: “The first six months has seen the continued growth of ENGAGE, building on the trends of 2020, as more and more companies and organisations around the world see VR a better way of communicating. The pandemic has had a major impact on the use of ENGAGE which is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace. We have seen major developments in the first six months, including the roll-out of our software in China through our partnership with HTC, passing the milestone of 100 commercial customers, and VRE entering new markets, including the Middle East. The development of our new corporate metaverse codenamed ENGAGE Oasis is set to build our product offer further and create even more demand. Our outlook is more exciting than ever as VR comes of age as a business communications tool.”

Investor Communications

CEO David Whelan and CFO Séamus Larrissey will provide a live presentation relating to the Group’s interim results via the Investor Meet Company platform on 17 September 2021 at 11:00am (UK).

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet VR Education Holdings plc via: https://www.investormeetcompany.com/vr-education-holdings-plc/register-investor

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

For further information, please contact:

Notes to Editors

VR Education (AIM: VRE; Euronext Growth: 6VR) is a virtual reality ('VR') technology company focused on becoming a leading global provider of virtual communications solutions through its proprietary software platform, ENGAGE. ENGAGE provides users with a platform for creating, sharing, and delivering VR content for education, training, and online events through its three solutions: Virtual Campus, Virtual Office, and Virtual Events. 

VRE is listed on AIM in London and on the Euronext Growth Market, a market regulated by Euronext Dublin.  For further information, please visit:  www.vreducationholdings.com

Chief Executive’s Review

2021 is proving to be a milestone year for VRE, with take-up of the Group’s ENGAGE platform accelerating. VRE is focused on becoming a leading global provider of virtual communications solutions through ENGAGE and its three solutions: Virtual Campus, Virtual Office, and Virtual Events.

More and more companies and organisations worldwide have turned to VR as a communication tool to combat ‘Zoom Fatigue’ and take advantage of the technology’s interactivity to host events, meetings and training sessions. This is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace.

The number of commercial customers has increased to over 130 since ENGAGE’s launch in May 2019.  We have also seen significant progress in our roll-out in China through our partnership with HTC. 

The metaverse is the next evolution of ENGAGE. Inspired by the VR simulation known as OASIS in the book and film 'Ready Player One', ENGAGE Oasis will be an always-on, fully persistent virtual world, where ENGAGE clients can meet and sell products and services directly to each other. 

With ENGAGE Oasis scheduled for launch in 2022 and backed by our successful fundraising, we believe VRE has a very exciting future.

ENGAGE

The significant growth in the commercial use of the Group’s ENGAGE platform has been reflected in our revenue. ENGAGE revenue has increased more than four-fold to €0.9 million (2020: €0.2 million).  ENGAGE revenue comprises 72% of total Group revenue up from 33% during the same period in 2020. While VRE sells Showcase Experiences on various VR platforms which perform well, the Group’s ENGAGE platform revenue now dominates.

Over the last six months, the uptake of VRE’s services demonstrates the broad appeal and versatility of the platform across its three current solutions: Virtual Campus, Virtual Office, and Virtual Events. Major developments include:

• New customers include Abbott Laboratories, KPMG, MongoDB and the US State Department.  A major US multinational client with a market cap of more than US$100 billion signed a six-figure deal for an event to showcase its product innovation, history, and sustainability initiatives. One of the world's leading consumer goods companies (in the world Top 100 companies by revenue) has become an ENGAGE client
• There have been a number of client renewals. For example, Facebook, an ENGAGE client since August 2020, has renewed its enterprise account and doubled the number of user licences it has since its initial contract.
• We have seen the expansion of ENGAGE to the Middle East for the first time through two commercial agreements in the United Arab Emirates. One for a global event for 12 international police forces, and one for a commercial licence with custom development work
• A BMW i Motorsport event was hosted on the ENGAGE platform on 1 July 2021. The event was the world's first fully immersive Formula E experience, showcasing the technology, engineering, and drivers of Formula E.

Development of ENGAGE platform

The Group continues to invest in the development of ENGAGE to improve the user experience and expand its reach. In the last 12 months, we have launched ENGAGE Mobile to support Android phones and tablets and an iOS version to support iPhones and iPads, which allows the ENGAGE audience to attend virtual events without the requirement for a VR headset or device. ENGAGE launched on the Facebook/Oculus Quest Store in November 2020 with Facebook now an official user of the ENGAGE platform using it regularly for customer facing events and meetings.  ENGAGE is now available to a global audience including mainland China and is one of only a handful of communications platforms accessible to such a large audience on a range of different devices.

We expect to see ENGAGE supported on new devices from currently unannounced vendors in the future as more social media platforms and hardware manufacturers enter this space. The latest entrant is Tik Tok with its purchase of VR hardware manufacturer, Pico.

ENGAGE Oasis

In June 2021, VRE announced the planned development of a new fully featured corporate metaverse, codenamed "ENGAGE Oasis” - with the launch expected in the first half of 2022.

Development is progressing well. ENGAGE Oasis is planned as a new digital world where businesses, professional users, educators, and digital artists can connect and provide services directly to each other and to the public. It is primarily designed for professional events, team collaboration, remote performances, online subscription services, distance learning and unique art displays.

The goal of ENGAGE Oasis is to provide a framework for corporations and businesses to build their own unique MetaWorlds which are accessible directly by customers.

ENGAGE Oasis provides unparalleled customisation options for users allowing for unique digital spaces to be created easily and linked together in a fully persistent digital world. MetaWorld builders inside ENGAGE Oasis construct the visible locations for users to visit and the rules and laws that govern any given MetaWorld location. As an example, they can set a dress code for their location or provide access to features depending on the visiting user type. MetaWorld Builders can also appoint a moderation team to patrol the location, ensuring a safe environment is maintained where needed.

The app tools within ENGAGE Oasis mean no programmers are needed. ENGAGE Oasis provides a set of templates, making it easy to deploy a customer’s personal MetaWorld quickly. They pick the template they want, upload their logo, place the branded items in their MetaWorld, and they are ready to go. Other more in-depth options are being developed to allow simple block construction using a mixture of templated options and 3D objects in templated spaces.

The ENGAGE Oasis marketplace will be open to all users inside the platform.  It will have various items for sale and additional services for MetaWorld owners wishing to generate revenue inside the platform. These include digital goods, such as 3D models and avatar clothing, event ticketing where users can set up their own events and sell tickets to other users to attend, and subscriptions, where owners can charge a subscription fee for users to access a location or subscribe to private content they have created.  ENGAGE Oasis will receive a commission for the provision of all services within the platform.

ENGAGE Oasis aims to be the spatial services platform for creative builders, innovative brands, exciting educators, and the professional public. 

Partnership with HTC

China is the fastest-growing immersive market in the world. Our strategic partner HTC Corporation, a world leader in VR and mobile computing, has commenced selling its ENGAGE product, known as VIVE Sessions in China, as part of a software bundle with HTC's new headset, the VIVE Focus 3 XR. HTC is bundling a three-month free licence for the VIVE Sessions product as part of the VIVE XR Suite with every new VIVE Pro 2 and VIVE Focus 3 device. Furthermore, VIVE Sessions will be included with new HP ProBook laptops being sold in the region, as announced on 12 May 2021.

The VIVE Focus 3 XR is designed for education and enterprise use. HTC expects that it will be one of the most advanced mobile XR devices on the market, providing superior display resolution and processing power, compared to the current other most popular devices.

HTC regularly uses the ENGAGE platform for virtual conferences and virtual meetings. In May, HTC held two live virtual events on the ENGAGE platform, as part of VIVECON and V2EC conferences, and broadcast to a global audience through social media. As a sizeable shareholder, HTC has a strong vested interest in the continued growth of the Group as a whole.

Medium Term Outlook

Based on the strong traction demonstrated by the increased use of the ENGAGE platform and the expanding product range, VRE is making good progress towards its medium-term financial objectives for 2023 - 2025. These were announced in January 2021, and are as follows:

• Target of reaching €10 million annual ENGAGE revenue milestone, 500 active Enterprise customers and 100,000 monthly users during 2023 - 2025:
• Target only reflects current ENGAGE offering and doesn’t reflect huge opportunity from ENGAGE Oasis
• Annual ENGAGE revenue CAGR in excess of 100%
• 10% average month-on-month increase in users to reach 100,000 monthly users, reflecting a target 500 active Enterprise customers;
• Customer retention rate of 80%+;
• Growth in average annual contract value to €20,000+, reflecting the nature of emerging Enterprise client base and optimal contract value; and
• Target Group gross margin in excess of 80%

Outlook

The first six months have seen the continued growth of ENGAGE, building on the trends of 2020, as more and more companies and organisations around the world see VR as a better way of communicating. 

The pandemic has had a major impact on the use of ENGAGE, which is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace.

We have seen major developments in the first six months, including the roll-out of our software in China through our partnership with HTC, passing the milestone of 100 commercial customers, and VRE entering new markets, including the Middle East. In addition, the development of our new corporate metaverse ENGAGE Oasis is set to build our product offer further and create even more demand.

We have continued to hire new talent, and ahead of the launch of ENGAGE Oasis, we are strengthening our sales operation, with a particular focus on the US.

Our outlook is more exciting than ever as VR comes of age as a business communications tool.

David Whelan
Chief Executive Officer
14 September 2021

Financial Review

Revenue for the half year is up 83% on the prior half year to €1,248k (H1 2020: €681k), driven by a continued acceleration in revenue from the ENGAGE platform.

ENGAGE revenue as a percentage of total revenue grew significantly in the period and comprised 72% of total revenue in the period (H1 2020: 33%).

EBITDA loss was €1.0m comparable to the prior year period (H1 2020: loss of €0.9m).  The primary cost driver for the EBITDA loss is salary and associated costs, currently approximately €0.3m per month.

Loss before tax was €1.3m, in line with management expectations, compared to a loss in the prior year of €1.1m.

The combination of operating cashflows and capital expenditure in H1 2021 were €1.3m compared to just €1.0m in H1 2020. The current cash burn rate, net of revenue received, post period end is approximately €0.25m per month but is expected to decline as revenues continue to grow.

At 30 June 2021, the Group had a strong cash position with net cash of €9.2m following an oversubscribed placing in June 2021.

Séamus Larrissey
Chief Financial Officer
14 September 2021

Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2021

Consolidated Statement of Financial Position
As at 30 June 2021

Consolidated Statement of Cash Flows
For six month period ended 30 June 2021

2022

VR Education (AIM: VRE; Euronext Growth: 6VR), a leading virtual reality ('VR') technology company in the education, communication and virtual events space, and owner/developer of the ENGAGE platform, today announces its interim results for the six months ended 30 June 2020 (the ‘Period’ or ‘H1 2020’).

Highlights

• Accelerated demand for ENGAGE platform with now over 130 commercial customers
• Revenue increased by 83% to €1.25 million (H1 2020: €681,000)
• Expansion of ENGAGE to the Middle East for the first time through two commercial agreements in the United Arab Emirates: one for a global event for 12 international police forces and one for a commercial license with custom development work
• Strategic partner HTC Corporation ('HTC') has commenced selling its ENGAGE product, VIVE Sessions, in China, as part of a software bundle with HTC's new headset, the VIVE Focus 3, and with new HP ProBook laptops being sold in the region as announced on 12 May 2021
• ENGAGE revenue accelerated to €0.9 million (H1 2020: €0.2 million). ENGAGE revenue comprised 72% of total Group revenue for the period, up from 33% during the same period in 2020
• Planned continued investment in capabilities widens pre-tax loss to €1.3m (H1 2020: pre-tax loss of €1.1 million), although EBITDA loss flat at €1.0m (H1 2020: loss of €0.9m)
• Oversubscribed placing announced on 18 June 2021 raising €9.0m (£7.7m) before expenses at a price of 16 pence per share
• Net cash as at 30 June 2021 of €9.2 million

• In June 2021, VRE announced the planned development of a new fully featured corporate metaverse codenamed "ENGAGE Oasis" with the launch expected in the first half of 2022

David Whelan, CEO of VR Education, said: “The first six months has seen the continued growth of ENGAGE, building on the trends of 2020, as more and more companies and organisations around the world see VR a better way of communicating. The pandemic has had a major impact on the use of ENGAGE which is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace. We have seen major developments in the first six months, including the roll-out of our software in China through our partnership with HTC, passing the milestone of 100 commercial customers, and VRE entering new markets, including the Middle East. The development of our new corporate metaverse codenamed ENGAGE Oasis is set to build our product offer further and create even more demand. Our outlook is more exciting than ever as VR comes of age as a business communications tool.”

Investor Communications

CEO David Whelan and CFO Séamus Larrissey will provide a live presentation relating to the Group’s interim results via the Investor Meet Company platform on 17 September 2021 at 11:00am (UK).

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet VR Education Holdings plc via: https://www.investormeetcompany.com/vr-education-holdings-plc/register-investor

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

For further information, please contact:

Notes to Editors

VR Education (AIM: VRE; Euronext Growth: 6VR) is a virtual reality ('VR') technology company focused on becoming a leading global provider of virtual communications solutions through its proprietary software platform, ENGAGE. ENGAGE provides users with a platform for creating, sharing, and delivering VR content for education, training, and online events through its three solutions: Virtual Campus, Virtual Office, and Virtual Events. 

VRE is listed on AIM in London and on the Euronext Growth Market, a market regulated by Euronext Dublin.  For further information, please visit:  www.vreducationholdings.com

Chief Executive’s Review

2021 is proving to be a milestone year for VRE, with take-up of the Group’s ENGAGE platform accelerating. VRE is focused on becoming a leading global provider of virtual communications solutions through ENGAGE and its three solutions: Virtual Campus, Virtual Office, and Virtual Events.

More and more companies and organisations worldwide have turned to VR as a communication tool to combat ‘Zoom Fatigue’ and take advantage of the technology’s interactivity to host events, meetings and training sessions. This is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace.

The number of commercial customers has increased to over 130 since ENGAGE’s launch in May 2019.  We have also seen significant progress in our roll-out in China through our partnership with HTC. 

The metaverse is the next evolution of ENGAGE. Inspired by the VR simulation known as OASIS in the book and film 'Ready Player One', ENGAGE Oasis will be an always-on, fully persistent virtual world, where ENGAGE clients can meet and sell products and services directly to each other. 

With ENGAGE Oasis scheduled for launch in 2022 and backed by our successful fundraising, we believe VRE has a very exciting future.

ENGAGE

The significant growth in the commercial use of the Group’s ENGAGE platform has been reflected in our revenue. ENGAGE revenue has increased more than four-fold to €0.9 million (2020: €0.2 million).  ENGAGE revenue comprises 72% of total Group revenue up from 33% during the same period in 2020. While VRE sells Showcase Experiences on various VR platforms which perform well, the Group’s ENGAGE platform revenue now dominates.

Over the last six months, the uptake of VRE’s services demonstrates the broad appeal and versatility of the platform across its three current solutions: Virtual Campus, Virtual Office, and Virtual Events. Major developments include:

• New customers include Abbott Laboratories, KPMG, MongoDB and the US State Department.  A major US multinational client with a market cap of more than US$100 billion signed a six-figure deal for an event to showcase its product innovation, history, and sustainability initiatives. One of the world's leading consumer goods companies (in the world Top 100 companies by revenue) has become an ENGAGE client
• There have been a number of client renewals. For example, Facebook, an ENGAGE client since August 2020, has renewed its enterprise account and doubled the number of user licences it has since its initial contract.
• We have seen the expansion of ENGAGE to the Middle East for the first time through two commercial agreements in the United Arab Emirates. One for a global event for 12 international police forces, and one for a commercial licence with custom development work
• A BMW i Motorsport event was hosted on the ENGAGE platform on 1 July 2021. The event was the world's first fully immersive Formula E experience, showcasing the technology, engineering, and drivers of Formula E.

Development of ENGAGE platform

The Group continues to invest in the development of ENGAGE to improve the user experience and expand its reach. In the last 12 months, we have launched ENGAGE Mobile to support Android phones and tablets and an iOS version to support iPhones and iPads, which allows the ENGAGE audience to attend virtual events without the requirement for a VR headset or device. ENGAGE launched on the Facebook/Oculus Quest Store in November 2020 with Facebook now an official user of the ENGAGE platform using it regularly for customer facing events and meetings.  ENGAGE is now available to a global audience including mainland China and is one of only a handful of communications platforms accessible to such a large audience on a range of different devices.

We expect to see ENGAGE supported on new devices from currently unannounced vendors in the future as more social media platforms and hardware manufacturers enter this space. The latest entrant is Tik Tok with its purchase of VR hardware manufacturer, Pico.

ENGAGE Oasis

In June 2021, VRE announced the planned development of a new fully featured corporate metaverse, codenamed "ENGAGE Oasis” - with the launch expected in the first half of 2022.

Development is progressing well. ENGAGE Oasis is planned as a new digital world where businesses, professional users, educators, and digital artists can connect and provide services directly to each other and to the public. It is primarily designed for professional events, team collaboration, remote performances, online subscription services, distance learning and unique art displays.

The goal of ENGAGE Oasis is to provide a framework for corporations and businesses to build their own unique MetaWorlds which are accessible directly by customers.

ENGAGE Oasis provides unparalleled customisation options for users allowing for unique digital spaces to be created easily and linked together in a fully persistent digital world. MetaWorld builders inside ENGAGE Oasis construct the visible locations for users to visit and the rules and laws that govern any given MetaWorld location. As an example, they can set a dress code for their location or provide access to features depending on the visiting user type. MetaWorld Builders can also appoint a moderation team to patrol the location, ensuring a safe environment is maintained where needed.

The app tools within ENGAGE Oasis mean no programmers are needed. ENGAGE Oasis provides a set of templates, making it easy to deploy a customer’s personal MetaWorld quickly. They pick the template they want, upload their logo, place the branded items in their MetaWorld, and they are ready to go. Other more in-depth options are being developed to allow simple block construction using a mixture of templated options and 3D objects in templated spaces.

The ENGAGE Oasis marketplace will be open to all users inside the platform.  It will have various items for sale and additional services for MetaWorld owners wishing to generate revenue inside the platform. These include digital goods, such as 3D models and avatar clothing, event ticketing where users can set up their own events and sell tickets to other users to attend, and subscriptions, where owners can charge a subscription fee for users to access a location or subscribe to private content they have created.  ENGAGE Oasis will receive a commission for the provision of all services within the platform.

ENGAGE Oasis aims to be the spatial services platform for creative builders, innovative brands, exciting educators, and the professional public. 

Partnership with HTC

China is the fastest-growing immersive market in the world. Our strategic partner HTC Corporation, a world leader in VR and mobile computing, has commenced selling its ENGAGE product, known as VIVE Sessions in China, as part of a software bundle with HTC's new headset, the VIVE Focus 3 XR. HTC is bundling a three-month free licence for the VIVE Sessions product as part of the VIVE XR Suite with every new VIVE Pro 2 and VIVE Focus 3 device. Furthermore, VIVE Sessions will be included with new HP ProBook laptops being sold in the region, as announced on 12 May 2021.

The VIVE Focus 3 XR is designed for education and enterprise use. HTC expects that it will be one of the most advanced mobile XR devices on the market, providing superior display resolution and processing power, compared to the current other most popular devices.

HTC regularly uses the ENGAGE platform for virtual conferences and virtual meetings. In May, HTC held two live virtual events on the ENGAGE platform, as part of VIVECON and V2EC conferences, and broadcast to a global audience through social media. As a sizeable shareholder, HTC has a strong vested interest in the continued growth of the Group as a whole.

Medium Term Outlook

Based on the strong traction demonstrated by the increased use of the ENGAGE platform and the expanding product range, VRE is making good progress towards its medium-term financial objectives for 2023 - 2025. These were announced in January 2021, and are as follows:

• Target of reaching €10 million annual ENGAGE revenue milestone, 500 active Enterprise customers and 100,000 monthly users during 2023 - 2025:
• Target only reflects current ENGAGE offering and doesn’t reflect huge opportunity from ENGAGE Oasis
• Annual ENGAGE revenue CAGR in excess of 100%
• 10% average month-on-month increase in users to reach 100,000 monthly users, reflecting a target 500 active Enterprise customers;
• Customer retention rate of 80%+;
• Growth in average annual contract value to €20,000+, reflecting the nature of emerging Enterprise client base and optimal contract value; and
• Target Group gross margin in excess of 80%

Outlook

The first six months have seen the continued growth of ENGAGE, building on the trends of 2020, as more and more companies and organisations around the world see VR as a better way of communicating. 

The pandemic has had a major impact on the use of ENGAGE, which is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace.

We have seen major developments in the first six months, including the roll-out of our software in China through our partnership with HTC, passing the milestone of 100 commercial customers, and VRE entering new markets, including the Middle East. In addition, the development of our new corporate metaverse ENGAGE Oasis is set to build our product offer further and create even more demand.

We have continued to hire new talent, and ahead of the launch of ENGAGE Oasis, we are strengthening our sales operation, with a particular focus on the US.

Our outlook is more exciting than ever as VR comes of age as a business communications tool.

David Whelan
Chief Executive Officer
14 September 2021

Financial Review

Revenue for the half year is up 83% on the prior half year to €1,248k (H1 2020: €681k), driven by a continued acceleration in revenue from the ENGAGE platform.

ENGAGE revenue as a percentage of total revenue grew significantly in the period and comprised 72% of total revenue in the period (H1 2020: 33%).

EBITDA loss was €1.0m comparable to the prior year period (H1 2020: loss of €0.9m).  The primary cost driver for the EBITDA loss is salary and associated costs, currently approximately €0.3m per month.

Loss before tax was €1.3m, in line with management expectations, compared to a loss in the prior year of €1.1m.

The combination of operating cashflows and capital expenditure in H1 2021 were €1.3m compared to just €1.0m in H1 2020. The current cash burn rate, net of revenue received, post period end is approximately €0.25m per month but is expected to decline as revenues continue to grow.

At 30 June 2021, the Group had a strong cash position with net cash of €9.2m following an oversubscribed placing in June 2021.

Séamus Larrissey
Chief Financial Officer
14 September 2021

Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2021

Consolidated Statement of Financial Position
As at 30 June 2021

Consolidated Statement of Cash Flows
For six month period ended 30 June 2021

2021

VR Education (AIM: VRE; Euronext Growth: 6VR), a leading virtual reality ('VR') technology company in the education, communication and virtual events space, and owner/developer of the ENGAGE platform, today announces its interim results for the six months ended 30 June 2020 (the ‘Period’ or ‘H1 2020’).

Highlights

• Accelerated demand for ENGAGE platform with now over 130 commercial customers
• Revenue increased by 83% to €1.25 million (H1 2020: €681,000)
• Expansion of ENGAGE to the Middle East for the first time through two commercial agreements in the United Arab Emirates: one for a global event for 12 international police forces and one for a commercial license with custom development work
• Strategic partner HTC Corporation ('HTC') has commenced selling its ENGAGE product, VIVE Sessions, in China, as part of a software bundle with HTC's new headset, the VIVE Focus 3, and with new HP ProBook laptops being sold in the region as announced on 12 May 2021
• ENGAGE revenue accelerated to €0.9 million (H1 2020: €0.2 million). ENGAGE revenue comprised 72% of total Group revenue for the period, up from 33% during the same period in 2020
• Planned continued investment in capabilities widens pre-tax loss to €1.3m (H1 2020: pre-tax loss of €1.1 million), although EBITDA loss flat at €1.0m (H1 2020: loss of €0.9m)
• Oversubscribed placing announced on 18 June 2021 raising €9.0m (£7.7m) before expenses at a price of 16 pence per share
• Net cash as at 30 June 2021 of €9.2 million

• In June 2021, VRE announced the planned development of a new fully featured corporate metaverse codenamed "ENGAGE Oasis" with the launch expected in the first half of 2022

David Whelan, CEO of VR Education, said: “The first six months has seen the continued growth of ENGAGE, building on the trends of 2020, as more and more companies and organisations around the world see VR a better way of communicating. The pandemic has had a major impact on the use of ENGAGE which is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace. We have seen major developments in the first six months, including the roll-out of our software in China through our partnership with HTC, passing the milestone of 100 commercial customers, and VRE entering new markets, including the Middle East. The development of our new corporate metaverse codenamed ENGAGE Oasis is set to build our product offer further and create even more demand. Our outlook is more exciting than ever as VR comes of age as a business communications tool.”

Investor Communications

CEO David Whelan and CFO Séamus Larrissey will provide a live presentation relating to the Group’s interim results via the Investor Meet Company platform on 17 September 2021 at 11:00am (UK).

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet VR Education Holdings plc via: https://www.investormeetcompany.com/vr-education-holdings-plc/register-investor

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

For further information, please contact:

Notes to Editors

VR Education (AIM: VRE; Euronext Growth: 6VR) is a virtual reality ('VR') technology company focused on becoming a leading global provider of virtual communications solutions through its proprietary software platform, ENGAGE. ENGAGE provides users with a platform for creating, sharing, and delivering VR content for education, training, and online events through its three solutions: Virtual Campus, Virtual Office, and Virtual Events. 

VRE is listed on AIM in London and on the Euronext Growth Market, a market regulated by Euronext Dublin.  For further information, please visit:  www.vreducationholdings.com

Chief Executive’s Review

2021 is proving to be a milestone year for VRE, with take-up of the Group’s ENGAGE platform accelerating. VRE is focused on becoming a leading global provider of virtual communications solutions through ENGAGE and its three solutions: Virtual Campus, Virtual Office, and Virtual Events.

More and more companies and organisations worldwide have turned to VR as a communication tool to combat ‘Zoom Fatigue’ and take advantage of the technology’s interactivity to host events, meetings and training sessions. This is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace.

The number of commercial customers has increased to over 130 since ENGAGE’s launch in May 2019.  We have also seen significant progress in our roll-out in China through our partnership with HTC. 

The metaverse is the next evolution of ENGAGE. Inspired by the VR simulation known as OASIS in the book and film 'Ready Player One', ENGAGE Oasis will be an always-on, fully persistent virtual world, where ENGAGE clients can meet and sell products and services directly to each other. 

With ENGAGE Oasis scheduled for launch in 2022 and backed by our successful fundraising, we believe VRE has a very exciting future.

ENGAGE

The significant growth in the commercial use of the Group’s ENGAGE platform has been reflected in our revenue. ENGAGE revenue has increased more than four-fold to €0.9 million (2020: €0.2 million).  ENGAGE revenue comprises 72% of total Group revenue up from 33% during the same period in 2020. While VRE sells Showcase Experiences on various VR platforms which perform well, the Group’s ENGAGE platform revenue now dominates.

Over the last six months, the uptake of VRE’s services demonstrates the broad appeal and versatility of the platform across its three current solutions: Virtual Campus, Virtual Office, and Virtual Events. Major developments include:

• New customers include Abbott Laboratories, KPMG, MongoDB and the US State Department.  A major US multinational client with a market cap of more than US$100 billion signed a six-figure deal for an event to showcase its product innovation, history, and sustainability initiatives. One of the world's leading consumer goods companies (in the world Top 100 companies by revenue) has become an ENGAGE client
• There have been a number of client renewals. For example, Facebook, an ENGAGE client since August 2020, has renewed its enterprise account and doubled the number of user licences it has since its initial contract.
• We have seen the expansion of ENGAGE to the Middle East for the first time through two commercial agreements in the United Arab Emirates. One for a global event for 12 international police forces, and one for a commercial licence with custom development work
• A BMW i Motorsport event was hosted on the ENGAGE platform on 1 July 2021. The event was the world's first fully immersive Formula E experience, showcasing the technology, engineering, and drivers of Formula E.

Development of ENGAGE platform

The Group continues to invest in the development of ENGAGE to improve the user experience and expand its reach. In the last 12 months, we have launched ENGAGE Mobile to support Android phones and tablets and an iOS version to support iPhones and iPads, which allows the ENGAGE audience to attend virtual events without the requirement for a VR headset or device. ENGAGE launched on the Facebook/Oculus Quest Store in November 2020 with Facebook now an official user of the ENGAGE platform using it regularly for customer facing events and meetings.  ENGAGE is now available to a global audience including mainland China and is one of only a handful of communications platforms accessible to such a large audience on a range of different devices.

We expect to see ENGAGE supported on new devices from currently unannounced vendors in the future as more social media platforms and hardware manufacturers enter this space. The latest entrant is Tik Tok with its purchase of VR hardware manufacturer, Pico.

ENGAGE Oasis

In June 2021, VRE announced the planned development of a new fully featured corporate metaverse, codenamed "ENGAGE Oasis” - with the launch expected in the first half of 2022.

Development is progressing well. ENGAGE Oasis is planned as a new digital world where businesses, professional users, educators, and digital artists can connect and provide services directly to each other and to the public. It is primarily designed for professional events, team collaboration, remote performances, online subscription services, distance learning and unique art displays.

The goal of ENGAGE Oasis is to provide a framework for corporations and businesses to build their own unique MetaWorlds which are accessible directly by customers.

ENGAGE Oasis provides unparalleled customisation options for users allowing for unique digital spaces to be created easily and linked together in a fully persistent digital world. MetaWorld builders inside ENGAGE Oasis construct the visible locations for users to visit and the rules and laws that govern any given MetaWorld location. As an example, they can set a dress code for their location or provide access to features depending on the visiting user type. MetaWorld Builders can also appoint a moderation team to patrol the location, ensuring a safe environment is maintained where needed.

The app tools within ENGAGE Oasis mean no programmers are needed. ENGAGE Oasis provides a set of templates, making it easy to deploy a customer’s personal MetaWorld quickly. They pick the template they want, upload their logo, place the branded items in their MetaWorld, and they are ready to go. Other more in-depth options are being developed to allow simple block construction using a mixture of templated options and 3D objects in templated spaces.

The ENGAGE Oasis marketplace will be open to all users inside the platform.  It will have various items for sale and additional services for MetaWorld owners wishing to generate revenue inside the platform. These include digital goods, such as 3D models and avatar clothing, event ticketing where users can set up their own events and sell tickets to other users to attend, and subscriptions, where owners can charge a subscription fee for users to access a location or subscribe to private content they have created.  ENGAGE Oasis will receive a commission for the provision of all services within the platform.

ENGAGE Oasis aims to be the spatial services platform for creative builders, innovative brands, exciting educators, and the professional public. 

Partnership with HTC

China is the fastest-growing immersive market in the world. Our strategic partner HTC Corporation, a world leader in VR and mobile computing, has commenced selling its ENGAGE product, known as VIVE Sessions in China, as part of a software bundle with HTC's new headset, the VIVE Focus 3 XR. HTC is bundling a three-month free licence for the VIVE Sessions product as part of the VIVE XR Suite with every new VIVE Pro 2 and VIVE Focus 3 device. Furthermore, VIVE Sessions will be included with new HP ProBook laptops being sold in the region, as announced on 12 May 2021.

The VIVE Focus 3 XR is designed for education and enterprise use. HTC expects that it will be one of the most advanced mobile XR devices on the market, providing superior display resolution and processing power, compared to the current other most popular devices.

HTC regularly uses the ENGAGE platform for virtual conferences and virtual meetings. In May, HTC held two live virtual events on the ENGAGE platform, as part of VIVECON and V2EC conferences, and broadcast to a global audience through social media. As a sizeable shareholder, HTC has a strong vested interest in the continued growth of the Group as a whole.

Medium Term Outlook

Based on the strong traction demonstrated by the increased use of the ENGAGE platform and the expanding product range, VRE is making good progress towards its medium-term financial objectives for 2023 - 2025. These were announced in January 2021, and are as follows:

• Target of reaching €10 million annual ENGAGE revenue milestone, 500 active Enterprise customers and 100,000 monthly users during 2023 - 2025:
• Target only reflects current ENGAGE offering and doesn’t reflect huge opportunity from ENGAGE Oasis
• Annual ENGAGE revenue CAGR in excess of 100%
• 10% average month-on-month increase in users to reach 100,000 monthly users, reflecting a target 500 active Enterprise customers;
• Customer retention rate of 80%+;
• Growth in average annual contract value to €20,000+, reflecting the nature of emerging Enterprise client base and optimal contract value; and
• Target Group gross margin in excess of 80%

Outlook

The first six months have seen the continued growth of ENGAGE, building on the trends of 2020, as more and more companies and organisations around the world see VR as a better way of communicating. 

The pandemic has had a major impact on the use of ENGAGE, which is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace.

We have seen major developments in the first six months, including the roll-out of our software in China through our partnership with HTC, passing the milestone of 100 commercial customers, and VRE entering new markets, including the Middle East. In addition, the development of our new corporate metaverse ENGAGE Oasis is set to build our product offer further and create even more demand.

We have continued to hire new talent, and ahead of the launch of ENGAGE Oasis, we are strengthening our sales operation, with a particular focus on the US.

Our outlook is more exciting than ever as VR comes of age as a business communications tool.

David Whelan
Chief Executive Officer
14 September 2021

Financial Review

Revenue for the half year is up 83% on the prior half year to €1,248k (H1 2020: €681k), driven by a continued acceleration in revenue from the ENGAGE platform.

ENGAGE revenue as a percentage of total revenue grew significantly in the period and comprised 72% of total revenue in the period (H1 2020: 33%).

EBITDA loss was €1.0m comparable to the prior year period (H1 2020: loss of €0.9m).  The primary cost driver for the EBITDA loss is salary and associated costs, currently approximately €0.3m per month.

Loss before tax was €1.3m, in line with management expectations, compared to a loss in the prior year of €1.1m.

The combination of operating cashflows and capital expenditure in H1 2021 were €1.3m compared to just €1.0m in H1 2020. The current cash burn rate, net of revenue received, post period end is approximately €0.25m per month but is expected to decline as revenues continue to grow.

At 30 June 2021, the Group had a strong cash position with net cash of €9.2m following an oversubscribed placing in June 2021.

Séamus Larrissey
Chief Financial Officer
14 September 2021

Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2021

Consolidated Statement of Financial Position
As at 30 June 2021

Consolidated Statement of Cash Flows
For six month period ended 30 June 2021

2020

VR Education (AIM: VRE; Euronext Growth: 6VR), a leading virtual reality ('VR') technology company in the education, communication and virtual events space, and owner/developer of the ENGAGE platform, today announces its interim results for the six months ended 30 June 2020 (the ‘Period’ or ‘H1 2020’).

Highlights

• Accelerated demand for ENGAGE platform with now over 130 commercial customers
• Revenue increased by 83% to €1.25 million (H1 2020: €681,000)
• Expansion of ENGAGE to the Middle East for the first time through two commercial agreements in the United Arab Emirates: one for a global event for 12 international police forces and one for a commercial license with custom development work
• Strategic partner HTC Corporation ('HTC') has commenced selling its ENGAGE product, VIVE Sessions, in China, as part of a software bundle with HTC's new headset, the VIVE Focus 3, and with new HP ProBook laptops being sold in the region as announced on 12 May 2021
• ENGAGE revenue accelerated to €0.9 million (H1 2020: €0.2 million). ENGAGE revenue comprised 72% of total Group revenue for the period, up from 33% during the same period in 2020
• Planned continued investment in capabilities widens pre-tax loss to €1.3m (H1 2020: pre-tax loss of €1.1 million), although EBITDA loss flat at €1.0m (H1 2020: loss of €0.9m)
• Oversubscribed placing announced on 18 June 2021 raising €9.0m (£7.7m) before expenses at a price of 16 pence per share
• Net cash as at 30 June 2021 of €9.2 million

• In June 2021, VRE announced the planned development of a new fully featured corporate metaverse codenamed "ENGAGE Oasis" with the launch expected in the first half of 2022

David Whelan, CEO of VR Education, said: “The first six months has seen the continued growth of ENGAGE, building on the trends of 2020, as more and more companies and organisations around the world see VR a better way of communicating. The pandemic has had a major impact on the use of ENGAGE which is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace. We have seen major developments in the first six months, including the roll-out of our software in China through our partnership with HTC, passing the milestone of 100 commercial customers, and VRE entering new markets, including the Middle East. The development of our new corporate metaverse codenamed ENGAGE Oasis is set to build our product offer further and create even more demand. Our outlook is more exciting than ever as VR comes of age as a business communications tool.”

Investor Communications

CEO David Whelan and CFO Séamus Larrissey will provide a live presentation relating to the Group’s interim results via the Investor Meet Company platform on 17 September 2021 at 11:00am (UK).

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet VR Education Holdings plc via: https://www.investormeetcompany.com/vr-education-holdings-plc/register-investor

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

For further information, please contact:

Notes to Editors

VR Education (AIM: VRE; Euronext Growth: 6VR) is a virtual reality ('VR') technology company focused on becoming a leading global provider of virtual communications solutions through its proprietary software platform, ENGAGE. ENGAGE provides users with a platform for creating, sharing, and delivering VR content for education, training, and online events through its three solutions: Virtual Campus, Virtual Office, and Virtual Events. 

VRE is listed on AIM in London and on the Euronext Growth Market, a market regulated by Euronext Dublin.  For further information, please visit:  www.vreducationholdings.com

Chief Executive’s Review

2021 is proving to be a milestone year for VRE, with take-up of the Group’s ENGAGE platform accelerating. VRE is focused on becoming a leading global provider of virtual communications solutions through ENGAGE and its three solutions: Virtual Campus, Virtual Office, and Virtual Events.

More and more companies and organisations worldwide have turned to VR as a communication tool to combat ‘Zoom Fatigue’ and take advantage of the technology’s interactivity to host events, meetings and training sessions. This is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace.

The number of commercial customers has increased to over 130 since ENGAGE’s launch in May 2019.  We have also seen significant progress in our roll-out in China through our partnership with HTC. 

The metaverse is the next evolution of ENGAGE. Inspired by the VR simulation known as OASIS in the book and film 'Ready Player One', ENGAGE Oasis will be an always-on, fully persistent virtual world, where ENGAGE clients can meet and sell products and services directly to each other. 

With ENGAGE Oasis scheduled for launch in 2022 and backed by our successful fundraising, we believe VRE has a very exciting future.

ENGAGE

The significant growth in the commercial use of the Group’s ENGAGE platform has been reflected in our revenue. ENGAGE revenue has increased more than four-fold to €0.9 million (2020: €0.2 million).  ENGAGE revenue comprises 72% of total Group revenue up from 33% during the same period in 2020. While VRE sells Showcase Experiences on various VR platforms which perform well, the Group’s ENGAGE platform revenue now dominates.

Over the last six months, the uptake of VRE’s services demonstrates the broad appeal and versatility of the platform across its three current solutions: Virtual Campus, Virtual Office, and Virtual Events. Major developments include:

• New customers include Abbott Laboratories, KPMG, MongoDB and the US State Department.  A major US multinational client with a market cap of more than US$100 billion signed a six-figure deal for an event to showcase its product innovation, history, and sustainability initiatives. One of the world's leading consumer goods companies (in the world Top 100 companies by revenue) has become an ENGAGE client
• There have been a number of client renewals. For example, Facebook, an ENGAGE client since August 2020, has renewed its enterprise account and doubled the number of user licences it has since its initial contract.
• We have seen the expansion of ENGAGE to the Middle East for the first time through two commercial agreements in the United Arab Emirates. One for a global event for 12 international police forces, and one for a commercial licence with custom development work
• A BMW i Motorsport event was hosted on the ENGAGE platform on 1 July 2021. The event was the world's first fully immersive Formula E experience, showcasing the technology, engineering, and drivers of Formula E.

Development of ENGAGE platform

The Group continues to invest in the development of ENGAGE to improve the user experience and expand its reach. In the last 12 months, we have launched ENGAGE Mobile to support Android phones and tablets and an iOS version to support iPhones and iPads, which allows the ENGAGE audience to attend virtual events without the requirement for a VR headset or device. ENGAGE launched on the Facebook/Oculus Quest Store in November 2020 with Facebook now an official user of the ENGAGE platform using it regularly for customer facing events and meetings.  ENGAGE is now available to a global audience including mainland China and is one of only a handful of communications platforms accessible to such a large audience on a range of different devices.

We expect to see ENGAGE supported on new devices from currently unannounced vendors in the future as more social media platforms and hardware manufacturers enter this space. The latest entrant is Tik Tok with its purchase of VR hardware manufacturer, Pico.

ENGAGE Oasis

In June 2021, VRE announced the planned development of a new fully featured corporate metaverse, codenamed "ENGAGE Oasis” - with the launch expected in the first half of 2022.

Development is progressing well. ENGAGE Oasis is planned as a new digital world where businesses, professional users, educators, and digital artists can connect and provide services directly to each other and to the public. It is primarily designed for professional events, team collaboration, remote performances, online subscription services, distance learning and unique art displays.

The goal of ENGAGE Oasis is to provide a framework for corporations and businesses to build their own unique MetaWorlds which are accessible directly by customers.

ENGAGE Oasis provides unparalleled customisation options for users allowing for unique digital spaces to be created easily and linked together in a fully persistent digital world. MetaWorld builders inside ENGAGE Oasis construct the visible locations for users to visit and the rules and laws that govern any given MetaWorld location. As an example, they can set a dress code for their location or provide access to features depending on the visiting user type. MetaWorld Builders can also appoint a moderation team to patrol the location, ensuring a safe environment is maintained where needed.

The app tools within ENGAGE Oasis mean no programmers are needed. ENGAGE Oasis provides a set of templates, making it easy to deploy a customer’s personal MetaWorld quickly. They pick the template they want, upload their logo, place the branded items in their MetaWorld, and they are ready to go. Other more in-depth options are being developed to allow simple block construction using a mixture of templated options and 3D objects in templated spaces.

The ENGAGE Oasis marketplace will be open to all users inside the platform.  It will have various items for sale and additional services for MetaWorld owners wishing to generate revenue inside the platform. These include digital goods, such as 3D models and avatar clothing, event ticketing where users can set up their own events and sell tickets to other users to attend, and subscriptions, where owners can charge a subscription fee for users to access a location or subscribe to private content they have created.  ENGAGE Oasis will receive a commission for the provision of all services within the platform.

ENGAGE Oasis aims to be the spatial services platform for creative builders, innovative brands, exciting educators, and the professional public. 

Partnership with HTC

China is the fastest-growing immersive market in the world. Our strategic partner HTC Corporation, a world leader in VR and mobile computing, has commenced selling its ENGAGE product, known as VIVE Sessions in China, as part of a software bundle with HTC's new headset, the VIVE Focus 3 XR. HTC is bundling a three-month free licence for the VIVE Sessions product as part of the VIVE XR Suite with every new VIVE Pro 2 and VIVE Focus 3 device. Furthermore, VIVE Sessions will be included with new HP ProBook laptops being sold in the region, as announced on 12 May 2021.

The VIVE Focus 3 XR is designed for education and enterprise use. HTC expects that it will be one of the most advanced mobile XR devices on the market, providing superior display resolution and processing power, compared to the current other most popular devices.

HTC regularly uses the ENGAGE platform for virtual conferences and virtual meetings. In May, HTC held two live virtual events on the ENGAGE platform, as part of VIVECON and V2EC conferences, and broadcast to a global audience through social media. As a sizeable shareholder, HTC has a strong vested interest in the continued growth of the Group as a whole.

Medium Term Outlook

Based on the strong traction demonstrated by the increased use of the ENGAGE platform and the expanding product range, VRE is making good progress towards its medium-term financial objectives for 2023 - 2025. These were announced in January 2021, and are as follows:

• Target of reaching €10 million annual ENGAGE revenue milestone, 500 active Enterprise customers and 100,000 monthly users during 2023 - 2025:
• Target only reflects current ENGAGE offering and doesn’t reflect huge opportunity from ENGAGE Oasis
• Annual ENGAGE revenue CAGR in excess of 100%
• 10% average month-on-month increase in users to reach 100,000 monthly users, reflecting a target 500 active Enterprise customers;
• Customer retention rate of 80%+;
• Growth in average annual contract value to €20,000+, reflecting the nature of emerging Enterprise client base and optimal contract value; and
• Target Group gross margin in excess of 80%

Outlook

The first six months have seen the continued growth of ENGAGE, building on the trends of 2020, as more and more companies and organisations around the world see VR as a better way of communicating. 

The pandemic has had a major impact on the use of ENGAGE, which is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace.

We have seen major developments in the first six months, including the roll-out of our software in China through our partnership with HTC, passing the milestone of 100 commercial customers, and VRE entering new markets, including the Middle East. In addition, the development of our new corporate metaverse ENGAGE Oasis is set to build our product offer further and create even more demand.

We have continued to hire new talent, and ahead of the launch of ENGAGE Oasis, we are strengthening our sales operation, with a particular focus on the US.

Our outlook is more exciting than ever as VR comes of age as a business communications tool.

David Whelan
Chief Executive Officer
14 September 2021

Financial Review

Revenue for the half year is up 83% on the prior half year to €1,248k (H1 2020: €681k), driven by a continued acceleration in revenue from the ENGAGE platform.

ENGAGE revenue as a percentage of total revenue grew significantly in the period and comprised 72% of total revenue in the period (H1 2020: 33%).

EBITDA loss was €1.0m comparable to the prior year period (H1 2020: loss of €0.9m).  The primary cost driver for the EBITDA loss is salary and associated costs, currently approximately €0.3m per month.

Loss before tax was €1.3m, in line with management expectations, compared to a loss in the prior year of €1.1m.

The combination of operating cashflows and capital expenditure in H1 2021 were €1.3m compared to just €1.0m in H1 2020. The current cash burn rate, net of revenue received, post period end is approximately €0.25m per month but is expected to decline as revenues continue to grow.

At 30 June 2021, the Group had a strong cash position with net cash of €9.2m following an oversubscribed placing in June 2021.

Séamus Larrissey
Chief Financial Officer
14 September 2021

Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2021

Consolidated Statement of Financial Position
As at 30 June 2021

Consolidated Statement of Cash Flows
For six month period ended 30 June 2021

2019

VR Education (AIM: VRE; Euronext Growth: 6VR), a leading virtual reality ('VR') technology company in the education, communication and virtual events space, and owner/developer of the ENGAGE platform, today announces its interim results for the six months ended 30 June 2020 (the ‘Period’ or ‘H1 2020’).

Highlights

• Accelerated demand for ENGAGE platform with now over 130 commercial customers
• Revenue increased by 83% to €1.25 million (H1 2020: €681,000)
• Expansion of ENGAGE to the Middle East for the first time through two commercial agreements in the United Arab Emirates: one for a global event for 12 international police forces and one for a commercial license with custom development work
• Strategic partner HTC Corporation ('HTC') has commenced selling its ENGAGE product, VIVE Sessions, in China, as part of a software bundle with HTC's new headset, the VIVE Focus 3, and with new HP ProBook laptops being sold in the region as announced on 12 May 2021
• ENGAGE revenue accelerated to €0.9 million (H1 2020: €0.2 million). ENGAGE revenue comprised 72% of total Group revenue for the period, up from 33% during the same period in 2020
• Planned continued investment in capabilities widens pre-tax loss to €1.3m (H1 2020: pre-tax loss of €1.1 million), although EBITDA loss flat at €1.0m (H1 2020: loss of €0.9m)
• Oversubscribed placing announced on 18 June 2021 raising €9.0m (£7.7m) before expenses at a price of 16 pence per share
• Net cash as at 30 June 2021 of €9.2 million

• In June 2021, VRE announced the planned development of a new fully featured corporate metaverse codenamed "ENGAGE Oasis" with the launch expected in the first half of 2022

David Whelan, CEO of VR Education, said: “The first six months has seen the continued growth of ENGAGE, building on the trends of 2020, as more and more companies and organisations around the world see VR a better way of communicating. The pandemic has had a major impact on the use of ENGAGE which is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace. We have seen major developments in the first six months, including the roll-out of our software in China through our partnership with HTC, passing the milestone of 100 commercial customers, and VRE entering new markets, including the Middle East. The development of our new corporate metaverse codenamed ENGAGE Oasis is set to build our product offer further and create even more demand. Our outlook is more exciting than ever as VR comes of age as a business communications tool.”

Investor Communications

CEO David Whelan and CFO Séamus Larrissey will provide a live presentation relating to the Group’s interim results via the Investor Meet Company platform on 17 September 2021 at 11:00am (UK).

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet VR Education Holdings plc via: https://www.investormeetcompany.com/vr-education-holdings-plc/register-investor

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

For further information, please contact:

Notes to Editors

VR Education (AIM: VRE; Euronext Growth: 6VR) is a virtual reality ('VR') technology company focused on becoming a leading global provider of virtual communications solutions through its proprietary software platform, ENGAGE. ENGAGE provides users with a platform for creating, sharing, and delivering VR content for education, training, and online events through its three solutions: Virtual Campus, Virtual Office, and Virtual Events. 

VRE is listed on AIM in London and on the Euronext Growth Market, a market regulated by Euronext Dublin.  For further information, please visit:  www.vreducationholdings.com

Chief Executive’s Review

2021 is proving to be a milestone year for VRE, with take-up of the Group’s ENGAGE platform accelerating. VRE is focused on becoming a leading global provider of virtual communications solutions through ENGAGE and its three solutions: Virtual Campus, Virtual Office, and Virtual Events.

More and more companies and organisations worldwide have turned to VR as a communication tool to combat ‘Zoom Fatigue’ and take advantage of the technology’s interactivity to host events, meetings and training sessions. This is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace.

The number of commercial customers has increased to over 130 since ENGAGE’s launch in May 2019.  We have also seen significant progress in our roll-out in China through our partnership with HTC. 

The metaverse is the next evolution of ENGAGE. Inspired by the VR simulation known as OASIS in the book and film 'Ready Player One', ENGAGE Oasis will be an always-on, fully persistent virtual world, where ENGAGE clients can meet and sell products and services directly to each other. 

With ENGAGE Oasis scheduled for launch in 2022 and backed by our successful fundraising, we believe VRE has a very exciting future.

ENGAGE

The significant growth in the commercial use of the Group’s ENGAGE platform has been reflected in our revenue. ENGAGE revenue has increased more than four-fold to €0.9 million (2020: €0.2 million).  ENGAGE revenue comprises 72% of total Group revenue up from 33% during the same period in 2020. While VRE sells Showcase Experiences on various VR platforms which perform well, the Group’s ENGAGE platform revenue now dominates.

Over the last six months, the uptake of VRE’s services demonstrates the broad appeal and versatility of the platform across its three current solutions: Virtual Campus, Virtual Office, and Virtual Events. Major developments include:

• New customers include Abbott Laboratories, KPMG, MongoDB and the US State Department.  A major US multinational client with a market cap of more than US$100 billion signed a six-figure deal for an event to showcase its product innovation, history, and sustainability initiatives. One of the world's leading consumer goods companies (in the world Top 100 companies by revenue) has become an ENGAGE client
• There have been a number of client renewals. For example, Facebook, an ENGAGE client since August 2020, has renewed its enterprise account and doubled the number of user licences it has since its initial contract.
• We have seen the expansion of ENGAGE to the Middle East for the first time through two commercial agreements in the United Arab Emirates. One for a global event for 12 international police forces, and one for a commercial licence with custom development work
• A BMW i Motorsport event was hosted on the ENGAGE platform on 1 July 2021. The event was the world's first fully immersive Formula E experience, showcasing the technology, engineering, and drivers of Formula E.

Development of ENGAGE platform

The Group continues to invest in the development of ENGAGE to improve the user experience and expand its reach. In the last 12 months, we have launched ENGAGE Mobile to support Android phones and tablets and an iOS version to support iPhones and iPads, which allows the ENGAGE audience to attend virtual events without the requirement for a VR headset or device. ENGAGE launched on the Facebook/Oculus Quest Store in November 2020 with Facebook now an official user of the ENGAGE platform using it regularly for customer facing events and meetings.  ENGAGE is now available to a global audience including mainland China and is one of only a handful of communications platforms accessible to such a large audience on a range of different devices.

We expect to see ENGAGE supported on new devices from currently unannounced vendors in the future as more social media platforms and hardware manufacturers enter this space. The latest entrant is Tik Tok with its purchase of VR hardware manufacturer, Pico.

ENGAGE Oasis

In June 2021, VRE announced the planned development of a new fully featured corporate metaverse, codenamed "ENGAGE Oasis” - with the launch expected in the first half of 2022.

Development is progressing well. ENGAGE Oasis is planned as a new digital world where businesses, professional users, educators, and digital artists can connect and provide services directly to each other and to the public. It is primarily designed for professional events, team collaboration, remote performances, online subscription services, distance learning and unique art displays.

The goal of ENGAGE Oasis is to provide a framework for corporations and businesses to build their own unique MetaWorlds which are accessible directly by customers.

ENGAGE Oasis provides unparalleled customisation options for users allowing for unique digital spaces to be created easily and linked together in a fully persistent digital world. MetaWorld builders inside ENGAGE Oasis construct the visible locations for users to visit and the rules and laws that govern any given MetaWorld location. As an example, they can set a dress code for their location or provide access to features depending on the visiting user type. MetaWorld Builders can also appoint a moderation team to patrol the location, ensuring a safe environment is maintained where needed.

The app tools within ENGAGE Oasis mean no programmers are needed. ENGAGE Oasis provides a set of templates, making it easy to deploy a customer’s personal MetaWorld quickly. They pick the template they want, upload their logo, place the branded items in their MetaWorld, and they are ready to go. Other more in-depth options are being developed to allow simple block construction using a mixture of templated options and 3D objects in templated spaces.

The ENGAGE Oasis marketplace will be open to all users inside the platform.  It will have various items for sale and additional services for MetaWorld owners wishing to generate revenue inside the platform. These include digital goods, such as 3D models and avatar clothing, event ticketing where users can set up their own events and sell tickets to other users to attend, and subscriptions, where owners can charge a subscription fee for users to access a location or subscribe to private content they have created.  ENGAGE Oasis will receive a commission for the provision of all services within the platform.

ENGAGE Oasis aims to be the spatial services platform for creative builders, innovative brands, exciting educators, and the professional public. 

Partnership with HTC

China is the fastest-growing immersive market in the world. Our strategic partner HTC Corporation, a world leader in VR and mobile computing, has commenced selling its ENGAGE product, known as VIVE Sessions in China, as part of a software bundle with HTC's new headset, the VIVE Focus 3 XR. HTC is bundling a three-month free licence for the VIVE Sessions product as part of the VIVE XR Suite with every new VIVE Pro 2 and VIVE Focus 3 device. Furthermore, VIVE Sessions will be included with new HP ProBook laptops being sold in the region, as announced on 12 May 2021.

The VIVE Focus 3 XR is designed for education and enterprise use. HTC expects that it will be one of the most advanced mobile XR devices on the market, providing superior display resolution and processing power, compared to the current other most popular devices.

HTC regularly uses the ENGAGE platform for virtual conferences and virtual meetings. In May, HTC held two live virtual events on the ENGAGE platform, as part of VIVECON and V2EC conferences, and broadcast to a global audience through social media. As a sizeable shareholder, HTC has a strong vested interest in the continued growth of the Group as a whole.

Medium Term Outlook

Based on the strong traction demonstrated by the increased use of the ENGAGE platform and the expanding product range, VRE is making good progress towards its medium-term financial objectives for 2023 - 2025. These were announced in January 2021, and are as follows:

• Target of reaching €10 million annual ENGAGE revenue milestone, 500 active Enterprise customers and 100,000 monthly users during 2023 - 2025:
• Target only reflects current ENGAGE offering and doesn’t reflect huge opportunity from ENGAGE Oasis
• Annual ENGAGE revenue CAGR in excess of 100%
• 10% average month-on-month increase in users to reach 100,000 monthly users, reflecting a target 500 active Enterprise customers;
• Customer retention rate of 80%+;
• Growth in average annual contract value to €20,000+, reflecting the nature of emerging Enterprise client base and optimal contract value; and
• Target Group gross margin in excess of 80%

Outlook

The first six months have seen the continued growth of ENGAGE, building on the trends of 2020, as more and more companies and organisations around the world see VR as a better way of communicating. 

The pandemic has had a major impact on the use of ENGAGE, which is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace.

We have seen major developments in the first six months, including the roll-out of our software in China through our partnership with HTC, passing the milestone of 100 commercial customers, and VRE entering new markets, including the Middle East. In addition, the development of our new corporate metaverse ENGAGE Oasis is set to build our product offer further and create even more demand.

We have continued to hire new talent, and ahead of the launch of ENGAGE Oasis, we are strengthening our sales operation, with a particular focus on the US.

Our outlook is more exciting than ever as VR comes of age as a business communications tool.

David Whelan
Chief Executive Officer
14 September 2021

Financial Review

Revenue for the half year is up 83% on the prior half year to €1,248k (H1 2020: €681k), driven by a continued acceleration in revenue from the ENGAGE platform.

ENGAGE revenue as a percentage of total revenue grew significantly in the period and comprised 72% of total revenue in the period (H1 2020: 33%).

EBITDA loss was €1.0m comparable to the prior year period (H1 2020: loss of €0.9m).  The primary cost driver for the EBITDA loss is salary and associated costs, currently approximately €0.3m per month.

Loss before tax was €1.3m, in line with management expectations, compared to a loss in the prior year of €1.1m.

The combination of operating cashflows and capital expenditure in H1 2021 were €1.3m compared to just €1.0m in H1 2020. The current cash burn rate, net of revenue received, post period end is approximately €0.25m per month but is expected to decline as revenues continue to grow.

At 30 June 2021, the Group had a strong cash position with net cash of €9.2m following an oversubscribed placing in June 2021.

Séamus Larrissey
Chief Financial Officer
14 September 2021

Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2021

Consolidated Statement of Financial Position
As at 30 June 2021

Consolidated Statement of Cash Flows
For six month period ended 30 June 2021

2018

VR Education (AIM: VRE; Euronext Growth: 6VR), a leading virtual reality ('VR') technology company in the education, communication and virtual events space, and owner/developer of the ENGAGE platform, today announces its interim results for the six months ended 30 June 2020 (the ‘Period’ or ‘H1 2020’).

Highlights

• Accelerated demand for ENGAGE platform with now over 130 commercial customers
• Revenue increased by 83% to €1.25 million (H1 2020: €681,000)
• Expansion of ENGAGE to the Middle East for the first time through two commercial agreements in the United Arab Emirates: one for a global event for 12 international police forces and one for a commercial license with custom development work
• Strategic partner HTC Corporation ('HTC') has commenced selling its ENGAGE product, VIVE Sessions, in China, as part of a software bundle with HTC's new headset, the VIVE Focus 3, and with new HP ProBook laptops being sold in the region as announced on 12 May 2021
• ENGAGE revenue accelerated to €0.9 million (H1 2020: €0.2 million). ENGAGE revenue comprised 72% of total Group revenue for the period, up from 33% during the same period in 2020
• Planned continued investment in capabilities widens pre-tax loss to €1.3m (H1 2020: pre-tax loss of €1.1 million), although EBITDA loss flat at €1.0m (H1 2020: loss of €0.9m)
• Oversubscribed placing announced on 18 June 2021 raising €9.0m (£7.7m) before expenses at a price of 16 pence per share
• Net cash as at 30 June 2021 of €9.2 million

• In June 2021, VRE announced the planned development of a new fully featured corporate metaverse codenamed "ENGAGE Oasis" with the launch expected in the first half of 2022

David Whelan, CEO of VR Education, said: “The first six months has seen the continued growth of ENGAGE, building on the trends of 2020, as more and more companies and organisations around the world see VR a better way of communicating. The pandemic has had a major impact on the use of ENGAGE which is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace. We have seen major developments in the first six months, including the roll-out of our software in China through our partnership with HTC, passing the milestone of 100 commercial customers, and VRE entering new markets, including the Middle East. The development of our new corporate metaverse codenamed ENGAGE Oasis is set to build our product offer further and create even more demand. Our outlook is more exciting than ever as VR comes of age as a business communications tool.”

Investor Communications

CEO David Whelan and CFO Séamus Larrissey will provide a live presentation relating to the Group’s interim results via the Investor Meet Company platform on 17 September 2021 at 11:00am (UK).

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet VR Education Holdings plc via: https://www.investormeetcompany.com/vr-education-holdings-plc/register-investor

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

For further information, please contact:

Notes to Editors

VR Education (AIM: VRE; Euronext Growth: 6VR) is a virtual reality ('VR') technology company focused on becoming a leading global provider of virtual communications solutions through its proprietary software platform, ENGAGE. ENGAGE provides users with a platform for creating, sharing, and delivering VR content for education, training, and online events through its three solutions: Virtual Campus, Virtual Office, and Virtual Events. 

VRE is listed on AIM in London and on the Euronext Growth Market, a market regulated by Euronext Dublin.  For further information, please visit:  www.vreducationholdings.com

Chief Executive’s Review

2021 is proving to be a milestone year for VRE, with take-up of the Group’s ENGAGE platform accelerating. VRE is focused on becoming a leading global provider of virtual communications solutions through ENGAGE and its three solutions: Virtual Campus, Virtual Office, and Virtual Events.

More and more companies and organisations worldwide have turned to VR as a communication tool to combat ‘Zoom Fatigue’ and take advantage of the technology’s interactivity to host events, meetings and training sessions. This is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace.

The number of commercial customers has increased to over 130 since ENGAGE’s launch in May 2019.  We have also seen significant progress in our roll-out in China through our partnership with HTC. 

The metaverse is the next evolution of ENGAGE. Inspired by the VR simulation known as OASIS in the book and film 'Ready Player One', ENGAGE Oasis will be an always-on, fully persistent virtual world, where ENGAGE clients can meet and sell products and services directly to each other. 

With ENGAGE Oasis scheduled for launch in 2022 and backed by our successful fundraising, we believe VRE has a very exciting future.

ENGAGE

The significant growth in the commercial use of the Group’s ENGAGE platform has been reflected in our revenue. ENGAGE revenue has increased more than four-fold to €0.9 million (2020: €0.2 million).  ENGAGE revenue comprises 72% of total Group revenue up from 33% during the same period in 2020. While VRE sells Showcase Experiences on various VR platforms which perform well, the Group’s ENGAGE platform revenue now dominates.

Over the last six months, the uptake of VRE’s services demonstrates the broad appeal and versatility of the platform across its three current solutions: Virtual Campus, Virtual Office, and Virtual Events. Major developments include:

• New customers include Abbott Laboratories, KPMG, MongoDB and the US State Department.  A major US multinational client with a market cap of more than US$100 billion signed a six-figure deal for an event to showcase its product innovation, history, and sustainability initiatives. One of the world's leading consumer goods companies (in the world Top 100 companies by revenue) has become an ENGAGE client
• There have been a number of client renewals. For example, Facebook, an ENGAGE client since August 2020, has renewed its enterprise account and doubled the number of user licences it has since its initial contract.
• We have seen the expansion of ENGAGE to the Middle East for the first time through two commercial agreements in the United Arab Emirates. One for a global event for 12 international police forces, and one for a commercial licence with custom development work
• A BMW i Motorsport event was hosted on the ENGAGE platform on 1 July 2021. The event was the world's first fully immersive Formula E experience, showcasing the technology, engineering, and drivers of Formula E.

Development of ENGAGE platform

The Group continues to invest in the development of ENGAGE to improve the user experience and expand its reach. In the last 12 months, we have launched ENGAGE Mobile to support Android phones and tablets and an iOS version to support iPhones and iPads, which allows the ENGAGE audience to attend virtual events without the requirement for a VR headset or device. ENGAGE launched on the Facebook/Oculus Quest Store in November 2020 with Facebook now an official user of the ENGAGE platform using it regularly for customer facing events and meetings.  ENGAGE is now available to a global audience including mainland China and is one of only a handful of communications platforms accessible to such a large audience on a range of different devices.

We expect to see ENGAGE supported on new devices from currently unannounced vendors in the future as more social media platforms and hardware manufacturers enter this space. The latest entrant is Tik Tok with its purchase of VR hardware manufacturer, Pico.

ENGAGE Oasis

In June 2021, VRE announced the planned development of a new fully featured corporate metaverse, codenamed "ENGAGE Oasis” - with the launch expected in the first half of 2022.

Development is progressing well. ENGAGE Oasis is planned as a new digital world where businesses, professional users, educators, and digital artists can connect and provide services directly to each other and to the public. It is primarily designed for professional events, team collaboration, remote performances, online subscription services, distance learning and unique art displays.

The goal of ENGAGE Oasis is to provide a framework for corporations and businesses to build their own unique MetaWorlds which are accessible directly by customers.

ENGAGE Oasis provides unparalleled customisation options for users allowing for unique digital spaces to be created easily and linked together in a fully persistent digital world. MetaWorld builders inside ENGAGE Oasis construct the visible locations for users to visit and the rules and laws that govern any given MetaWorld location. As an example, they can set a dress code for their location or provide access to features depending on the visiting user type. MetaWorld Builders can also appoint a moderation team to patrol the location, ensuring a safe environment is maintained where needed.

The app tools within ENGAGE Oasis mean no programmers are needed. ENGAGE Oasis provides a set of templates, making it easy to deploy a customer’s personal MetaWorld quickly. They pick the template they want, upload their logo, place the branded items in their MetaWorld, and they are ready to go. Other more in-depth options are being developed to allow simple block construction using a mixture of templated options and 3D objects in templated spaces.

The ENGAGE Oasis marketplace will be open to all users inside the platform.  It will have various items for sale and additional services for MetaWorld owners wishing to generate revenue inside the platform. These include digital goods, such as 3D models and avatar clothing, event ticketing where users can set up their own events and sell tickets to other users to attend, and subscriptions, where owners can charge a subscription fee for users to access a location or subscribe to private content they have created.  ENGAGE Oasis will receive a commission for the provision of all services within the platform.

ENGAGE Oasis aims to be the spatial services platform for creative builders, innovative brands, exciting educators, and the professional public. 

Partnership with HTC

China is the fastest-growing immersive market in the world. Our strategic partner HTC Corporation, a world leader in VR and mobile computing, has commenced selling its ENGAGE product, known as VIVE Sessions in China, as part of a software bundle with HTC's new headset, the VIVE Focus 3 XR. HTC is bundling a three-month free licence for the VIVE Sessions product as part of the VIVE XR Suite with every new VIVE Pro 2 and VIVE Focus 3 device. Furthermore, VIVE Sessions will be included with new HP ProBook laptops being sold in the region, as announced on 12 May 2021.

The VIVE Focus 3 XR is designed for education and enterprise use. HTC expects that it will be one of the most advanced mobile XR devices on the market, providing superior display resolution and processing power, compared to the current other most popular devices.

HTC regularly uses the ENGAGE platform for virtual conferences and virtual meetings. In May, HTC held two live virtual events on the ENGAGE platform, as part of VIVECON and V2EC conferences, and broadcast to a global audience through social media. As a sizeable shareholder, HTC has a strong vested interest in the continued growth of the Group as a whole.

Medium Term Outlook

Based on the strong traction demonstrated by the increased use of the ENGAGE platform and the expanding product range, VRE is making good progress towards its medium-term financial objectives for 2023 - 2025. These were announced in January 2021, and are as follows:

• Target of reaching €10 million annual ENGAGE revenue milestone, 500 active Enterprise customers and 100,000 monthly users during 2023 - 2025:
• Target only reflects current ENGAGE offering and doesn’t reflect huge opportunity from ENGAGE Oasis
• Annual ENGAGE revenue CAGR in excess of 100%
• 10% average month-on-month increase in users to reach 100,000 monthly users, reflecting a target 500 active Enterprise customers;
• Customer retention rate of 80%+;
• Growth in average annual contract value to €20,000+, reflecting the nature of emerging Enterprise client base and optimal contract value; and
• Target Group gross margin in excess of 80%

Outlook

The first six months have seen the continued growth of ENGAGE, building on the trends of 2020, as more and more companies and organisations around the world see VR as a better way of communicating. 

The pandemic has had a major impact on the use of ENGAGE, which is set to continue as the technology becomes more accessible, and the drive to live more sustainably, and reduce travel, picks up pace.

We have seen major developments in the first six months, including the roll-out of our software in China through our partnership with HTC, passing the milestone of 100 commercial customers, and VRE entering new markets, including the Middle East. In addition, the development of our new corporate metaverse ENGAGE Oasis is set to build our product offer further and create even more demand.

We have continued to hire new talent, and ahead of the launch of ENGAGE Oasis, we are strengthening our sales operation, with a particular focus on the US.

Our outlook is more exciting than ever as VR comes of age as a business communications tool.

David Whelan
Chief Executive Officer
14 September 2021

Financial Review

Revenue for the half year is up 83% on the prior half year to €1,248k (H1 2020: €681k), driven by a continued acceleration in revenue from the ENGAGE platform.

ENGAGE revenue as a percentage of total revenue grew significantly in the period and comprised 72% of total revenue in the period (H1 2020: 33%).

EBITDA loss was €1.0m comparable to the prior year period (H1 2020: loss of €0.9m).  The primary cost driver for the EBITDA loss is salary and associated costs, currently approximately €0.3m per month.

Loss before tax was €1.3m, in line with management expectations, compared to a loss in the prior year of €1.1m.

The combination of operating cashflows and capital expenditure in H1 2021 were €1.3m compared to just €1.0m in H1 2020. The current cash burn rate, net of revenue received, post period end is approximately €0.25m per month but is expected to decline as revenues continue to grow.

At 30 June 2021, the Group had a strong cash position with net cash of €9.2m following an oversubscribed placing in June 2021.

Séamus Larrissey
Chief Financial Officer
14 September 2021

Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2021

Consolidated Statement of Financial Position
As at 30 June 2021

Consolidated Statement of Cash Flows
For six month period ended 30 June 2021