Virtuix Exchanges Secured Notes for Dilutive Streeterville Equity-Purchase Facility

Virtuix Holdings makes full-body virtual reality treadmills — its flagship Omni One lets users walk in 360 degrees inside VR games and simulations — and is pursuing a dual strategy of consumer hardware sales and high-value defense training contracts. The company listed on Nasdaq on January 27, 2026, roughly four months before this disclosure. At approximately $121M in market capitalization, it trades at a significant premium to its operating fundamentals.

The financial picture is lean. Net sales for the nine months ended December 31, 2025 were $3.0 million, against a net loss of $6.9 million for the same period. Cash stood at $1.1 million at December 31, 2025, and net cash used in operating activities was $5.5 million over that nine-month span. Interest expense alone in the three months ended December 31, 2025 was $870,717 — nearly matching quarterly net sales of $963,817 — reflecting the cost of a growing pile of structured notes issued to finance operations.

Virtuix has been active on the corporate development front: in May 2026 it announced that its board formed a special committee to evaluate acquisitions in the defense training sector, targeting companies with recurring defense revenues in the $10M–$50M range. The company has also signed agreements with the Naval Postgraduate School, the U.S. Marine Corps, and several Air Force and Army installations, and in May 2026 was selected for an AFWERX SBIR Phase I contract to develop its Virtual Terrain Walk platform.