AUSTIN, Texas - Tennsun -- Virtuix Holdings Inc. (N A S D A Q: VTIX) $VTIX is taking a major step toward expanding its presence in the defense industry with today's announcement that it has signed a Letter of Intent to acquire STS International, an established defense contractor with reported unaudited cash-basis revenue of approximately $40 million through October 2026. The November 12 announcement represents a potentially transformative development for Virtuix, bringing an established defense contracting business into its expanding portfolio while creating an opportunity to combine government-sector relationships and contracting capabilities with Virtuix's proprietary full-body simulation, virtual reality and AI-driven training technologies.

For investors, the significance of this announcement extends well beyond the proposed acquisition itself. Virtuix has spent considerable time developing its presence across consumer entertainment, military training, robotics and healthcare. The addition of STS International could provide a substantial new dimension to that strategy, potentially accelerating the company's entry into larger defense opportunities and broadening its commercial reach. The reported $40 million revenue figure is particularly noteworthy when considering the scale of Virtuix's existing business and the potential opportunity to build a more diversified organization.

The proposed transaction also follows management's September business update, when Virtuix specifically discussed its acquisition strategy and advanced negotiations involving a defense-sector target with annual revenue near the upper end of its previously identified $10 million to $50 million target range. Today's STS International announcement brings that previously discussed strategy into focus. The combination could provide Virtuix with additional defense-sector experience, established customer relationships and potential access to contracting opportunities that complement its existing technology portfolio. While the transaction remains subject to definitive agreements and completion, the strategic direction is clear: Virtuix is looking to expand beyond being a specialized technology developer and become a broader participant in the defense and simulation marketplace.

What makes this development particularly interesting is that Virtuix already has a growing foundation within the U.S. military. Its Omni platform allows users to physically walk, run, crouch and move through virtual environments, providing a realistic foundation for immersive training, mission rehearsal and tactical simulation. The company has been developing applications that address increasingly important military requirements, including battlefield preparation, terrain familiarization and counter-unmanned aircraft systems training. These capabilities give Virtuix an opportunity to participate in a market where realistic simulation, advanced training and AI-assisted technologies are becoming increasingly relevant.

Virtuix has reported programs, sales and collaborations involving all four major branches of the U.S. military. Its expanding defense portfolio includes several noteworthy developments:

• U.S. Marine Corps: Virtuix serves as lead systems integrator for the Infantry Fireteam Trainer, an immersive training initiative designed to provide realistic multi-person military exercises.
• U.S. Air Force: The company received an AFWERX Small Business Innovation Research Phase I award supporting development of its Virtual Terrain Walk platform for mission planning and terrain exploration.
• Counter-Drone Training: Virtuix has developed counter-unmanned aircraft systems training capabilities with LeadTech, addressing an increasingly important area of modern military preparedness.
• U.S. Army and Navy: The company has expanded deployments, sales and collaborative initiatives involving military installations and organizations, including West Point and the Navy's research and recreation programs.
• International Military Applications: Virtuix has also reported deployments involving Yokota Air Base in Japan, demonstrating the broader potential reach of its simulation technology.

The potential STS International acquisition could provide another important piece of this expanding defense operation. By combining an established defense contractor with Virtuix's technology development capabilities, the company could pursue opportunities that extend beyond individual equipment sales into larger government programs and integrated training solutions. For investors, the potential combination of existing defense-sector operations and proprietary technology is one of the most compelling aspects of today's announcement.

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At the same time, Virtuix continues to develop its consumer business through its expanded relationship with Meta Platforms. On October 13, the company announced that it had become an official Meta reseller, introducing new Omni One bundles featuring Meta Quest 3 and Quest 3S headsets and accessories. The announcement followed the June launch of Omni One for Quest, which has helped expand the company's reach within the established Meta virtual reality ecosystem. Virtuix reported approximately threefold year-over-year Omni One order growth following the launch, highlighting the commercial opportunity associated with bringing its full-body movement technology to a broader consumer audience.

The Omni One platform offers something different from traditional virtual reality gaming. Rather than remaining stationary while using a headset and handheld controllers, users can physically walk, run and move in 360 degrees within virtual environments. The system's expanding game library, which includes more than 75 Quest titles compatible or expected to become compatible and more than 100 compatible PC VR games, provides additional opportunities to attract consumers. The Meta reseller relationship also creates a more convenient purchasing experience through bundled headset and movement-system offerings.

Virtuix's technology story becomes even more intriguing when considering its expanding involvement in humanoid robotics and physical artificial intelligence. The company has disclosed repeat Omni One Enterprise orders from Tesla for use in its Optimus humanoid robotics program. Figure AI has also purchased an Omni One Enterprise system. These developments highlight how Virtuix's movement technology can potentially support applications beyond entertainment, including human-to-robot interaction, movement simulation and robotics research. As companies continue investing in humanoid robotics and AI-driven physical systems, Virtuix is positioning its platform within an emerging technology market that could create additional enterprise opportunities.

NASA involvement provides another notable dimension. Virtuix has announced its selection for NASA's Moon and Mars Exploration Analog mission, demonstrating the potential application of immersive movement systems in advanced research and exploration environments. Healthcare is also becoming an increasingly important part of the company's strategy. In September, Virtuix announced its first Omni One system sales to the U.S. Department of Veterans Affairs, with an initial deployment at the Detroit VA Medical Center. The company has also announced an autism therapy initiative involving the LP Foundation, Rutgers University and Sirica Therapeutics, with a multisite pilot planned for January 2027.

Adding to the growing list of developments, Virtuix announced on October 29 that it had received a Notice of Allowance for its 27th U.S. patent. The patent covers proprietary footwear technology designed to improve movement and traction on omnidirectional treadmills. This growing intellectual property portfolio reinforces the company's efforts to protect its technology across consumer gaming, enterprise simulation and defense applications.

Investors also have an important upcoming financial milestone to watch. On October 27, Virtuix announced that it expects strong revenue growth for its second fiscal quarter of 2027, ended September 30, following increased Omni One sales after the Meta Quest launch. Management scheduled its quarterly results conference call for November 16, 2026, at 8:30 a.m. Eastern Time. The company has indicated that the discussion will include developments across consumer entertainment, defense simulation and healthcare, providing investors with an opportunity to hear directly from management about its expanding commercial operations.

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The financial progress reported in previous quarters provides additional context. For fiscal 2026, Virtuix reported approximately $4.3 million in annual net sales, compared with $3.6 million in fiscal 2025. Gross profit improved to approximately $1 million, while gross margin increased to approximately 25%. In the first quarter of fiscal 2027, gross profit increased approximately 29% year over year and gross margin expanded to approximately 30%, compared with 17% in the prior-year period. The company has also described production infrastructure capable of supporting up to 3,000 units monthly, representing a company-estimated annual revenue capacity exceeding $100 million at full utilization.

Taken together, today's STS International acquisition announcement and Virtuix's existing commercial developments present a much broader picture of the company's ambitions. The proposed addition of a defense contractor reporting approximately $40 million in revenue could substantially expand the company's operating footprint, while its proprietary technology creates opportunities across military simulation, immersive gaming, robotics, AI research and healthcare.

The developments investors should be watching closely include:

• Progress toward definitive agreements and completion of the proposed STS International acquisition.
• The potential integration of STS International's defense operations with Virtuix's existing technology platform.
• Continued growth in Omni One orders through the Meta Quest ecosystem.
• Advancement of U.S. military training and counter-drone programs.
• Additional enterprise opportunities involving Tesla, Figure AI, NASA and healthcare organizations.
• The November 16 fiscal second-quarter financial update and management's outlook for the remainder of fiscal 2027.

Bottom line: Virtuix Holdings is pursuing a significant expansion of its business with today's proposed STS International acquisition. Bringing an established defense contractor with approximately $40 million in reported revenue into the picture could represent an important strategic step as Virtuix expands its military relationships and develops its proprietary AI-driven simulation technology. Combined with its Meta relationship, growing consumer demand, Tesla robotics applications, NASA involvement and healthcare initiatives, Virtuix is building a business with exposure to several compelling technology markets. The upcoming November 16 financial update adds another important milestone as investors watch the company advance what could become a substantially broader commercial platform.

For more information on VTIX visit: virtuix.com or the Company's new Investor Relations website at invest.virtuix.com

Media Contact
Company Name: Virtuix Holdings, Inc. (N A S D A Q: VTIX)
Contact Person: Lauren Premo
Email: press@virtuix.com
Phone: 949-270-3449
Country: United States

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