("ENGAGE XR", the "Company", or the "Group")
Unaudited Interim Results
Financial Highlights:
|
● |
Revenue of c. |
|
● |
Gross margin in H1 2025 up 2% to 91% (H1 2024: 89%), due to one-off hardware purchases for a key customer in early 2024 not recurring in 2025 |
|
● |
EBITDA loss was |
|
● |
Loss before tax was |
|
● |
Cash balance at |
Operational Highlights:
|
● |
Launch of comprehensive education offering at BETT conference in |
|
● |
Participation and collaboration at BETT conference, ASU+GSV Summit and Leap 2025 with key partners including Meta and |
Post-period end Highlights:
|
● |
Increase in K-12 licenses from one of our largest educational customers who has now in excess of 4,000 licenses with an annual revenue approaching |
|
● |
Receipt of |
Outlook:
|
● |
Operating cost base reduced significantly in Q2 2025 with monthly run-rate of costs now approx. |
|
● |
With a strengthened educational product portfolio, our focus continues to be replacing one off enterprise revenue with education license revenue. We expect this continued shift to further improve our net revenue retention which was 98% in Education year to date compared to 50% in Enterprise year to date.
|
David Whelan, CEO of ENGAGE XR, said: The first half of 2025 has been a challenging transition period as we shift our focus toward education-related revenues. This has been influenced by a broader market slowdown in enterprise spending on immersive technology and a significant decline in demand from the tech sector, where we previously supported large-scale onboarding initiatives.
That said, I am confident that our renewed focus on the education sector, the very foundation on which this company was built positions us far more strongly for long term growth and stability.
This announcement contains inside information for the purposes of the
- Ends -
For further information, please contact:
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David Whelan, CEO Séamus Larrissey, CFO
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Tel: +353 87 665 6708 |
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|
Tel: +44 (0) 20 7220 0500 |
About ENGAGE XR
For further information, please visit: https://engagevr.io/
Chief Executive's Review
First Half Challenges
The first half of 2025 has been a challenging period for the wider technology sector, with widespread layoffs across major corporations impacting demand for training and onboarding solutions as hiring activity slowed.
This has been particularly evident in the enterprise projects we previously completed with major consultancy firms such as Accenture,
Educational leaders such as Optima ED and
AI Teacher
We are now helping to shape the future of education with our partners through the AI Teacher Program a groundbreaking initiative that gives students 24/7 access to domain-level experts. Powered by ENGAGE's advanced AI training tools, these AI Teachers can design lesson plans, assess student performance, and provide real-time progress reports to educators.
AI Teachers are not designed to replace educators but to empower them. By automating repetitive, lecture style teaching, educators gain more time to focus on high value one on one interactions with students, guiding those who need extra support while allowing advanced learners to progress at their own pace.
The video you see here is an early beta prototype, created in under an hour using our proprietary ENGAGE AI integration tools, seamlessly connected with OpenAI and Meta AI. This is just the beginning of how ENGAGE is redefining what's possible in education and expect to see a wider roll out of this tool for all our education clients later this year as we exit our private client testing phase.
AI Teacher Demo: https://vimeo.com/1115479480?share=copy
We currently have two major educational projects underway in the
The first project, in partnership with PwC Middle East, announced in 2024, is about to welcome its first enterprise students, who will begin experiencing remote education in the hospitality sector within weeks. Following the initial evaluation phase, we anticipate a broader rollout most likely in FY26.
The second large-scale initiative has just launched with a university pilot program, where the first cohort of students is now testing immersive technology for media studies. This project is being developed in collaboration with the state education board, ENGAGE, and professors from
Outlook
The first half of 2025 has been a challenging transition period as we continue to shift our focus toward education-related revenues. This has been influenced by a broader market slowdown in enterprise spending on immersive technology and a significant decline in demand from the tech sector, where we previously supported large-scale onboarding initiatives.
The ENGAGE board is cognisant of the Company's current cash runway. Having already taken steps to reduce the Company's cash burn, the ENGAGE board is very focused on the importance of cash conservation so as to ensure the Company is able to capture its future growth opportunity. In addition, the board is continually evaluating all options available to it to enable the Company to deliver value to shareholders.
Despite the challenges the business has faced in H1, the Board remains confident in meeting expectations for the current financial year. Looking further ahead, the Board is confident that our continued focus on the education sector, the very foundation on which this company was built, positions us strongly for long term growth and stability.
David Whelan
Chief Executive Officer
Financial Review
Revenue for H1 2025 is down 46% on the prior half year to
ENGAGE revenue from Education customers fell in the period to
ENGAGE revenue from Content and Events fell to
EBITDA loss was
Gross margin in H1 2025 up 2% to 91% (H1 2024: 89%), due to one-off hardware purchases for a key customer in 2024 not recurring in 2025.
Loss before tax was
The combination of operating cashflows and capital expenditure in H1 2024 were
Séamus Larrissey
Chief Financial Officer
Consolidated Statement of Comprehensive Income
For the six months ended
|
|
Note |
Unaudited Six months ended € |
Unaudited Six months ended € |
|
Continuing Operations |
|
|
|
|
|
|
|
|
|
Revenue |
|
1,199,634 |
2,206,780 |
|
Cost of Sales |
|
(111,988) |
(251,643) |
|
|
|
|
|
|
Gross Profit |
|
1,087,646 |
1,955,137 |
|
|
|
|
|
|
|
|
|
|
|
Administrative Expenses |
|
(2,755,138) |
(3,894,365) |
|
|
|
|
|
|
Operating Loss |
|
(1,667,492) |
(1,939,228) |
|
|
|
|
|
|
Finance Costs |
|
(2,428) |
(1,779) |
|
Finance Income |
|
33,870 |
125,461 |
|
|
|
|
|
|
Loss before Income Tax |
|
(1,636,050) |
(1,815,546) |
|
|
|
|
|
|
Income Tax Credit |
|
- |
- |
|
|
|
|
|
|
Loss for the Year from continuing operations |
|
(1,636,050) |
(1,815,546) |
|
Loss per share |
|
|
|
|
Basic from continuing operations |
4 |
(0.003) |
(0.003) |
|
|
|
|
|
Consolidated Statement of Financial Position
As at
|
|
Note |
Unaudited as at € |
Unaudited as at € |
Audited as at € |
|
Non-Current Assets |
|
|
|
|
|
Property, |
|
52,573 |
100,630 |
56,417 |
|
Intangible Assets |
|
- |
- |
- |
|
|
|
52,573 |
100,630 |
56,417 |
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
Trade and other receivables |
|
1,392,911 |
1,744,012 |
1,786,684 |
|
Cash and short-term deposit |
|
2,106,833 |
5,524,869 |
3,566,927 |
|
|
|
3,499,744 |
7,268,881 |
5,353,611 |
|
|
|
|
|
|
|
Total Assets |
|
3,552,317 |
7,369,511 |
5,410,028 |
|
|
|
|
|
|
|
Equity and Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Equity Attributable to Shareholders |
||||
|
Issued share capital |
5 |
524,826 |
524,826 |
524,826 |
|
Share premium |
5 |
43,910,062 |
43,910,062 |
43,910,062 |
|
Other reserves |
|
(12,054,664) |
(12,219,118) |
(12,128,790) |
|
Retained earnings |
|
(29,225,276) |
(25,430,276) |
(27,589,226) |
|
|
|
|
|
|
|
Total Equity |
|
3,154,948 |
6,785,494 |
4,716,872 |
|
|
|
|
|
|
|
Non-Current Liabilities |
|
|
|
|
|
Operating lease liabilities |
|
17,860 |
8,176 |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
Trade and other payables |
|
359,748 |
523,113 |
658,616 |
|
Operating lease liabilities |
|
19,761 |
52,728 |
34,540 |
|
|
|
379,509 |
575,841 |
693,156 |
|
|
|
|
|
|
|
Total Liabilities |
|
397,369 |
584,017 |
693,156 |
|
|
|
|
|
|
|
Total Equity and Liabilities |
|
3,552,317 |
7,369,511 |
5,410,028 |
|
|
|
|
|
|
Consolidated Statement of Changes in Equity
At
|
|
Attributable to Equity Shareholders |
||||
|
|
Share Capital € |
Share Premium € |
Other Reserves € |
Retained Earnings € |
Total € |
|
|
|
|
|
|
|
|
Balance at |
524,826 |
43,910,062 |
(12,292,523) |
(23,614,730) |
8,527,635 |
|
Loss for the period |
- |
- |
- |
(1,815,546) |
(1,815,546) |
|
Share option expense |
- |
- |
73,405 |
- |
73,405 |
|
Balance at |
524,826 |
43,910,062 |
(12,219,118) |
(25,430,276) |
6,785,494 |
|
|
Share Capital € |
Share Premium € |
Other Reserves € |
Retained Earnings € |
Total € |
|
|
|
|
|
|
|
|
Balance at |
524,826 |
43,910,062 |
(12,128,790) |
(27,589,226) |
4,716,872 |
|
Loss for the period |
- |
- |
- |
(1,636,050) |
(1,636,050) |
|
Share option expense |
- |
- |
74,126 |
- |
74,126 |
|
Balance at |
524,826 |
43,910,062 |
(12,054,664) |
(29,225,276) |
3,154,948 |
Consolidated Statement of Cash Flows
For six month period ended
|
|
Note |
Unaudited Six months ended 30 June 2025 € |
Unaudited Six months ended 30 June 2024 € |
|
Cash Flows from Operating Activities |
|
|
|
|
Loss before income tax |
|
(1,636,050) |
(1,815,546) |
|
Adjustments to reconcile loss before tax to net cash flows: |
|
|
|
|
Depreciation |
|
38,599 |
44,894 |
|
Finance Income |
|
(33,870) |
(125,461) |
|
Finance Costs |
|
2,428 |
1,779 |
|
Share Option Expense |
|
74,126 |
73,406 |
|
Movement in Trade & Other Receivables |
|
393,773 |
(548,679) |
|
Movement in Trade & Other Payables |
|
(298,868) |
(92,124) |
|
|
|
(1,459,862) |
(2,461,731) |
|
Bank interest & other charges paid |
|
(2,428) |
(1,779) |
|
Bank interest received |
|
33,870 |
125,461 |
|
|
|
|
|
|
Net cash used in operating activities |
|
(1,428,420) |
(2,338,049) |
|
|
|
|
|
|
Cash Flows from Investing Activities |
|
|
|
|
Purchases of property, plant & equipment |
|
- |
(21,795) |
|
|
|
|
|
|
Net cash used in investing activities |
|
- |
(21,795) |
|
|
|
|
|
|
Cash Flows from Financing Activities |
|
|
|
|
Payment of operating lease liabilities |
|
(31,674) |
(26,366) |
|
|
|
|
|
|
Net cash used in financing activities |
|
(31,674) |
(26,366) |
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(1,460,094) |
(2,386,210) |
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
3,566,927 |
7,911,079 |
|
|
|
|
|
|
Cash and cash equivalents at the end of period |
|
2,106,833 |
5,524,869 |
|
|
|
|
|
Notes to the Interim Report
1. Basis of Preparation
The consolidated interim financial statements have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards as endorsed by the
The accounting policies are unchanged from the financial statements for the year ended
The consolidated interim financial statements are for the 6 months to
The interim consolidated financial information does not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements for the year ended
2. Summary of Significant Accounting Policies
New standards, interpretations and amendments adopted by the Company
No new standards or amendments have been adopted for the first time in these financial statements.
3. Share Based Payments
Share-based payment schemes with employees
Following the successful completion of the equity placing in H1 2023, the Remuneration Committee evaluated appropriate solutions to put in place suitable longer-term incentives aimed at aligning the interests of employees and shareholders. The option grant also assists with the retention and motivation of key employees of the Company as the Company looks to deliver against the strategic opportunity outlined at the time of the placing. The Options will provide the potential for rewards only if shareholders benefit from sustained growth in shareholder value over the coming years.
New Scheme
Under this new option grant there were no (2024: 2,700,000) employee options granted during 2025 at an exercise price of
The Options have performance criteria linked to the future share price performance of the Company with:
- One third of the Options being capable of exercise if the five day volume-weighted average price preceding the date of such exercise was
- One third of the Options being capable of exercise if the five day volume-weighted average price preceding the date of such exercise was
- One third of the Options being capable of exercise if the five day volume-weighted average price preceding the date of such exercise was
The Options will vest in full on a change of control provided a minimum price threshold of
The movement in employee share options under the new option grant and weighted average exercise prices are as follows for the reporting periods presented:
|
|
2023 Scheme |
|
|
|
Half-Year 2025 |
Half-Year 2024 |
|
|
|
|
|
At 1 January |
40,903,393 |
38,493,393 |
|
Granted during period |
- |
200,000 |
|
Forfeited during period |
(1,980,000) |
(250,000) |
|
At 30 June |
38,923,393 |
38,443,393 |
|
|
|
|
|
|
|
|
|
Options outstanding at 30 June |
|
|
|
Number of shares |
38,923,393 |
38,443,393 |
|
Weighted average remaining contractual life |
5.15 |
6.10 |
|
Weighted average exercise price per share |
|
|
|
Range of exercise price |
|
|
|
|
|
|
|
Exercisable at 30 June |
|
|
|
Number of shares |
- |
- |
|
Weighted average exercise price per share |
- |
- |
Old Scheme
There were no employee options granted under the old scheme during H1 2025 (H1 2024: Nil). Options expire at the end of a period of 7 years from the Grant Date or on the date on which the option holder ceases to be an employee.
Share-based payment expense with Directors
There were no share options granted during H1 2025 (H1 2024: Nil) to Directors.
The movement in employee share options and weighted average exercise prices are as follows for the reporting periods presented:
|
|
2018 Scheme |
|
|
|
Half-Year 2025 |
Half-Year 2024 |
|
|
|
|
|
At 1 January |
3,585,080 |
3,585,080 |
|
Granted during period |
- |
- |
|
Forfeited during period |
- |
|
|
At 30 June |
3,585,080 |
3,585,080 |
|
|
|
|
|
|
|
|
|
Options outstanding at 30 June |
|
|
|
Number of shares |
3,585,080 |
3,585,080 |
|
Weighted average remaining contractual life |
0.82 |
0.85 |
|
Weighted average exercise price per share |
|
|
|
Range of exercise price |
|
|
|
|
|
|
|
Exercisable at 30 June |
|
|
|
Number of shares |
3,585,080 |
3,585,080 |
|
Weighted average exercise price per share |
|
|
|
|
|
|
The expense recognised in respect of employee share based payment expense and credited to the share based payment reserve in equity was
4. Loss per share
|
Loss attributable to equity holders of the Group: |
Unaudited Six months ended 30 June 2025 € |
Unaudited Six months ended 30 June 2024 € |
|
|
|
|
|
Continuing Operations |
(1,636,050) |
(1,815,546) |
|
|
|
|
|
Weighted average number of shares for Basic EPS |
524,826,146 |
524,826,146 |
|
|
|
|
|
|
|
|
|
Basic loss per share from continuing operations |
(0.003) |
(0.003) |
|
|
|
|
5. Share Capital
|
|
Number of shares |
Ordinary shares |
Share premium |
Total |
|
|
|
€ |
€ |
€ |
|
|
|
|
|
|
|
At |
524,826,146 |
524,826 |
43,910,062 |
44,434,888 |
Forward-Looking Statements
Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.
The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.
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