OFFERING CIRCULAR DATED MARCH 10, 2016 VIRTUIX ... - DealFlow

OFFERING CIRCULAR DATED MARCH 10, 2016 VIRTUIX HOLDINGS INC.

1826 Kramer Lane, Suite H, Austin, TX 78758 www.virtuix.com up to 6,432,247 SHARES OF SERIES A PREFERRED STOCK CONVERTIBLE INTO COMMON  STOCK The Series A Preferred Stock is convertible into Common Stock either at the discretion of the investor or automatically upon effectiveness of registration of the securities in an Initial Public Offering. The total number of shares of the Common Stock into which the Series A Preferred may be converted will be determined by dividing the Original Issue Price per share by the conversion price per share. SEE “SECURITIES BEING OFFERED” AT PAGE 27

Series A Preferred Stock

Price Per Share to the  Public 

Total Number of  Shares Being Offered 

Proceeds to issuer  before expenses,  discounts and  commissions**

$2.332

6,432,247

$15,000,000

**See the “Plan of Distribution” for details regarding the compensation payable to placement agents in connection with this offering. The company has engaged SI Securities, LLC to serve as its sole and exclusive placement agent to assist in the placement of its securities.

The company expects that the amount of expenses of the offering that it will pay will be approximately $80,000, not including state filing fees. The offering will terminate at the earlier of: (1) the date at which the maximum offering amount has been sold, (2) the date which is one year from this offering being qualified by the Commission, or (3) the date at which the offering is earlier terminated by the company in its sole discretion. The offering is being conducted on a best­efforts basis without any minimum target. The company may undertake one or more closings on a rolling basis. After each closing, funds tendered by investors will be available to the company. THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE MERITS OR GIVE ITS APPROVAL OF ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION. GENERALLY NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON­NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(d)(2)(i)(C) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO www.investor.gov. This offering is inherently risky. See “Risk Factors” on page 6. Sales of these securities will commence on approximately [date]. The company is following the “Offering Circular” format of disclosure under Regulation A.

AN OFFERING STATEMENT PURSUANT TO REGULATION A RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. INFORMATION CONTAINED IN THIS PRELIMINARY OFFERING CIRCULAR IS SUBJECT TO COMPLETION OR AMENDMENT. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED BEFORE THE OFFERING STATEMENT FILED WITH THE COMMISSION IS QUALIFIED. THIS PRELIMINARY OFFERING CIRCULAR SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR MAY THERE BE ANY SALES OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL BEFORE REGISTRATION OR QUALIFICATION UNDER THE LAWS OF SUCH STATE. WE MAY ELECT TO SATISFY OUR OBLIGATION TO DELIVER A FINAL OFFERING CIRCULAR BY SENDING YOU A NOTICE WITHIN TWO BUSINESS DAYS AFTER THE COMPLETION OF OUR SALE TO YOU THAT CONTAINS THE URL WHERE THE FINAL OFFERING CIRCULAR OR THE OFFERING STATEMENT IN WHICH SUCH FINAL OFFERING CIRCULAR WAS FILED MAY BE OBTAINED.

TABLE OF CONTENTS OFFERING CIRCULAR SUMMARY RISK FACTORS DILUTION USE OF PROCEEDS TO ISSUER THE COMPANY'S BUSINESS THE COMPANY'S PROPERTY MANGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS INTEREST OF MANGEMENT AND OTHERS IN CERTAIN TRANSACTIONS SECURITIES BEING OFFERED PLAN OF DISTRIBUTION AND SELLING SECURITYHOLDERS INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2015 FINANCIAL STATEMENTS FOR THE FISCAL YEARS ENDING MARCH 31, 2015 AND MARCH 31, 2014 INDEX TO EXHIBITS In this Offering Circular, the term “Virtuix” or “the company” refers to Virtuix Holdings Inc. and its operating subsidiary, Virtuix Inc., on a consolidated basis.  

­ 1 ­ ­ 6 ­ ­ 9 ­ ­ 12 ­ ­ 13 ­ ­ 19 ­ ­ 20 ­ ­ 23 ­ ­ 24 ­ ­ 25 ­ ­ 26 ­ ­ 27 ­ ­ 30 ­ ­ 32 ­ ­ 55 ­ ­ 83 ­

THIS OFFERING CIRCULAR MAY CONTAIN FORWARD­LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD­LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD­LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD­LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD­ LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE.

OFFERING CIRCULAR SUMMARY This Offering Circular Summary highlights information contained elsewhere and does not contain all of the information that you should consider in making your investment decision. Before investing in the company’s Series A Preferred Stock, you should carefully read this entire Offering Circular, including the company’s financial statements and related notes. You should also consider, among other information, the matters described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. The Company Virtuix is one of the pioneers of the recent rebirth of virtual reality (“VR”) and a leader in the emerging Active VR space, which includes any VR application that requires first­person navigation in­game like walking or running. Examples of Active VR include first­person shooters, first­person adventure or exploration games, and any non­gaming applications that require first­person navigation like training simulations, real estate walk­throughs, or virtual tourism. Virtuix’s first product is the Omni, the first virtual reality motion platform for moving freely in 360 degrees in VR games or applications. The Omni allows users to walk, run, or jump inside virtual worlds. The device has no moving parts which makes it robust, durable, compact and affordable. The Omni is compatible with PC based and mobile head mounted display currently available or coming to market (such as the Oculus Rift, HTC Vive,  and  Google  Cardboard),  and  with  content  that  uses  standard  gamepad  input  and  is  VR  enabled.  The  company  has  filed  12  patent  applications  to  date  to  protect  the  Omni technology. The company completed a successful $1.1 million Kickstarter campaign in July 2013, receiving pledges from over 3,000 backers. Since the Kickstarter campaign was completed, the company has continued to accept pre­orders. In total, Virtuix has received over 4,000 fully funded pre­orders for the Omni. Virtuix began delivering Omni’s to its pre­order customers in December 2015. The  company  has  raised  approximately  $8  million  in  capital  to  date  from  venture  capital  and  private  investors  located  in  Silicon  Valley  and  around  the  world.  Virtuix  has  31 employees in Austin, Texas and Zhuhai, China, and also maintains an office in Menlo Park, California. Our Mission The company believes true virtual reality cannot be experienced sitting down. Active VR applications like first­person shooters or exploration games require movement in­game. This does not translate well to a traditional seated or standing player setup due to physical constraints, safety issues, and simulator sickness. The panoramic visuals offered by head mounted displays  need  corresponding  natural  movement  to  maintain  the  user’s  sense  of  orientation  and  feeling  of  immersion.  The  Omni  enables  popular  Active  VR  experiences  safely, comfortably,  and  without  compromising  immersion.  Virtuix’s  mission  is  to  be  the  leading  platform  for  Active  VR  and  enable  the  fun,  addictive,  and  immersive  entertainment experiences that gamers and mainstream consumers long for. ­ 1 ­

Overview The company believes that the early adopters of virtual reality are PC and console gamers, given that the popular headsets predominantly require a PC or console to operate. These gamers enjoy first­person games and first­person shooters in particular. In September 2015, PC Gamer magazine published its top 100 greatest games ever made. Of the top 10, nine were first­person action games, of which seven were first person shooters. The top selling gaming franchises include Call of Duty, Battlefield, Grand Theft Auto, and Halo, which have sold more than 500 million copies among them. More than 100 million people  have  played  a  Call  of  Duty  game.  All  those  games  require  first­person  movement  in­game,  which  in  the  context  of  a  virtual  reality  experience  is  called  Active  VR. The company believes other Active VR experiences besides gaming may include, for example, walking around in foreign cities with a significant other, hiking in a nature reserve with friends, or having an active adventure with family. None of these Active VR experiences are as enjoyable with solely a head mounted display and hand controllers due to physical constraints, safety issues, and simulator sickness. A head mounted display by itself cannot safely and comfortably deliver the popular Active VR experiences that gamers or consumers enjoy, particularly first­person action games or adventures. The bio­mechanics of locomotion in virtual reality are a hard problem to solve. Our bodies are sensitive to physical movements and computer interactions that feel unnatural. This is a specialist  area  of  interface  design  that  is  currently  not  addressed  by  most  major  electronics  manufacturers.  Virtuix  is  the  global  leader  in  locomotion  design  for  VR  games  and applications. Industry Background and Trends The company believes virtual reality is the next phase of human computer interaction. On average 150 million VR head mounted displays are projected to be sold in the next 5 years according to projections by Piper Jaffray, Gartner, Kzero, and Business Insider. The  VR  experience,  however,  is  limited  until  the  user  is  able  to  move  around  inside  the  virtual  environment,  which  is  a  requirement  for  many  of  the  popular  game  genres  and envisioned VR applications The company believes Active VR is poised to be one of the most popular and largest sub­categories of the emerging VR domain. Active VR hardware like the Omni does not compete with other players such as headset makers and content creators. Instead, the Omni acts as the compatible interconnect between other VR devices and content creators, providing the necessary input solution that enables popular Active VR experiences. Our Current Product The Omni is the first of its kind omni­directional treadmill that enables natural navigation in VR. The Omni was designed to be affordable and compact. With the Omni, Virtuix aims to free gamers from passive, seated gameplay, unleashing the full potential of virtual reality gaming with the Oculus Rift and future head mounted displays. Gaming on a keyboard, mouse or gamepad while seated pales in comparison to the intense experience and fun that comes from actually walking, running, and jumping in games. ­ 2 ­

Omni players can walk and run in 360 degrees. The user’s movement output is translated to standard gamepad output that works with VR games or applications that use such standard gamepad input. Walk, run, jump, strafe, or even sit—movements mapped to the gamepad can be mapped to natural motion with the Omni. The Omni works independently from the VR head mounted display and therefore is compatible with both PC based head mounted display and mobile VR devices thanks to its integrated Bluetooth connectivity. How It Works The Omni is the result of four years of design and testing. The Omni uses a proprietary, low­friction, concave platform that enables a smooth and natural gait. The Omni footwear contains proprietary low­friction pads that allow for an immersive walking and running motion on the Omni base. A robust support ring and untethered support harness aim to provide both safety and versatility for rapid, unconstrained movement. Users are kept safely upright on the Omni thanks to the support ring and harness. Our Plans for New Products Virtuix is continuously working on improving the Omni’s design and reducing the product’s cost and physical footprint. The company aims to develop a next generation Omni that has a size and price point that is in range for household consumers. Ultimately, Virtuix’s vision is to have an Omni be part of every Active VR setup both for home use and for commercial applications that include arcades and out­of­home entertainment, training and simulation, education, virtual tourism, and health care and fitness. Beyond the Omni hardware, Virtuix is also developing Omni ConnectTM and Omni OnlineTM. Omni Connect is a software application that aims to track a user’s physical metrics and usage  such  as  steps  taken,  distance  walked  and  calories  burned.  Omni  Online  governs  the  product’s  social  gaming  functionality,  including  online  storage  of  players’  profiles  and gaming  stats,  and  the  presence  of  universal  leader  boards  and  league  standings.  Omni  Online  transforms  the  traditional  solitary  VR  experience  to  a  fun,  addictive,  and  social (multiplayer) Active VR experience with the Omni. Virtuix  is  currently  developing  TRAVR,  a  suite  of  in­house first­person  action  games  that  demonstrate  the  capabilities  of  the  Omni.  Virtuix’s  TRAVR  games  aim  to  provide  fun, addictive, and repeatable gaming experiences unavailable from any other product. Over time, the company plans to expand its platform and network of Active VR content and social features. The first version of the Omni hardware has been designed for direct­to­consumer online sales. The company anticipates that future versions will have the margin, scale and design to allow for wholesale and retail distribution. ­ 3 ­

Our Growth Strategy Early marketing efforts have been focused on PC gamers as early adopters. Virtuix reaches these gamers with a variety of online and offline marketing campaigns such as online game videos or live demos at trade shows and events. The main growth driver to date has been showing the product to influential gamers, journalists and bloggers, and letting them demo the Omni, either  at  events  or  at  certain  locations.  The  coverage  and  content  that  they  created  has  driven  customers  to  buy  the  product  online.  To  accelerate  growth,  Virtuix  plans  to increase its online and offline marketing campaigns, demos and marketing events, and community engagement. Besides the consumer gaming market, the company believes the Omni has applications in several commercial markets, including the military industry for training and simulation, the gym industry for exercise and fitness, the architecture and real estate industries for virtual walkthroughs, and the arcade and out­of­home entertainment industry for commercial VR entertainment. Virtuix believes that, in absence of a large home consumer market for VR in 2016, the Omni can generate meaningful revenues as a commercial product sold to VR arcades, gaming centers, and other commercial users of the Omni. Our Competitive Strengths In the last three years, Virtuix has created defensible product features, trade secrets, and intellectual property. Twelve patent applications have been filed to date to protect the Omni technology. A key strength of Virtuix is its first­mover advantage for fully­immersive omnidirectional treadmills, resulting in strong and early partnerships with headset makers, content creators, game developers, and the makers of VR accessories and controllers. This technology ecosystem provides Virtuix with a defensible advantage over newcomers in the Active VR space. Virtuix also invested heavily in building the Omni brand and reputation among the eSports, PC gaming and VR enthusiast communities. Virtuix is currently leading its competition in the Active VR space. The Omni is the first­of­its­kind platform for Active VR at a price point and physical size that has not been met by any other competing device in the market. The current offering Securities offered

Maximum of 6,432,247 shares of Series A Preferred Stock ($15,000,000)

Common Stock outstanding before the offering (1)

5,500,000 shares

Preferred Stock outstanding before the offering (2)

7,351,709 shares

Preferred Stock outstanding after the offering

13,783,956 shares

Use of proceeds

The net proceeds of this offering will be used primarily to expand marketing efforts, expand the engineering team, and continue the development of internally produced game content for the Omni.

­ 4 ­

   

(1) (2)

Does not include shares issuable upon the exercise of options issued under the 2014 Long­Term Incentive Plan. Includes issued Series Seed Preferred Stock and Series 2 Seed Preferred Stock. ­ 5 ­

RISK FACTORS The SEC requires the company to identify risks that are specific to its business and its financial condition. The company is still subject to all the same risks that all companies in its industry, and all companies in the economy, are exposed to. These include risks relating to economic downturns, political and economic events and technological developments (such as hacking and the ability to prevent hacking). Additionally, early­stage companies are inherently more risky than more developed companies. You should consider general risks as well as specific risks when deciding whether to invest. The company has not yet commenced planned principal operations. Virtuix was formed in 2013 (as Virtuix Technologies LLC) and made its first pre­order sales in August 2013. Accordingly, the company has a limited history upon which an evaluation of its performance and future prospects can be made. Virtuix's current and proposed operations are subject to all the business risks associated with new enterprises. These include likely fluctuations in operating results as the company reacts to developments in its market, including purchasing patterns of customers and the entry of competitors into the market. Virtuix will only be able to pay dividends on any shares once its directors determine that it is financially able to do so. The company depends on one primary product. The company’s primary product is the Omni. Although it is developing other products, the company’s survival in the near term depends upon being able to sell the Omni to sufficient customers to make a profit. The company’s current customer base is still small and the company will only succeed if it can attract more customers for its primary product. The delivery and quality of the company's primary product is dependent on third­party manufacturers. The company’s primary product is manufactured by third parties in China. While the company provides the specifications for the product, it relies on the manufacturer to meet those specifications.  Difficulties  encountered  by  the  manufacturer  may  result  in  a  poor  quality  product  or  the  inability  to  deliver  product  in  a  timely  manner.  If  the  current  manufacturer encounters difficulties, the company may be required to find another manufacturer, resulting in delays as the manufacturer retools its facility. The company may not be able to protect its intellectual property. The company's success will depend on its ability to secure patent protection for its core technologies and be able to enforce those patents. The filed patent applications may not result in issued patents. If any patent  application  results  in  an  issued  patent,  that  patent  may  later  be invalidated  or  held  unenforceable  as  patent  law  changes.  Further,  the  outsourcing  of  the manufacture of the company's product may result in the unauthorized exposure of the intellectual property of the company. If the company cannot raise sufficient funds it will not succeed. Virtuix is offering Series A Preferred Stock in the amount of up to $15 million in this offering on a best­efforts basis and may not raise the complete amount. Even if the maximum amount is raised, the company is likely to need additional funds in the future in order to grow, and if it cannot raise those funds for whatever reason, including reasons relating to the company itself or to the broader economy, it may not survive. If the company manages to raise a substantially lesser amount than the Maximum Raise, it will have to find other sources of funding for some of the plans outlined in “Use of Proceeds.” ­ 6 ­

Future fund raising may affect the rights of investors. In order to expand, the company is likely to raise funds again in the future, either by offerings of securities or through borrowing from banks or other sources. The terms of future capital­ raising, such as loan agreements, may include covenants that give creditors greater rights over the financial resources of the company. The company depends on a small management team. The company depends on the skill and experience of two individuals, Jan Goetgeluk and David Allan. Each has a different skill set. If the company is not able to call upon one of these people for any reason, its operations and development could be harmed. The company is controlled by its CEO and sole director. Virtuix CEO, and sole director, Jan Goetgeluk currently holds approximately 45 percent of the issued shares of the company. No other stockholder holds more than 3 percent of the issued shares. Under the terms of the Voting Agreement dated as of March 10, 2016, Mr. Goetgeluk, as CEO and the largest holder of Common Stock of the company, will be able to designate a majority of the directors for election to the company’s Board of Directors. New competitors may enter the market. The company operates in a relatively new market and the competitive landscape is not yet clear. New competitors may enter the market with an expanded range of products at a lower cost, targeting the same customer base, which may force the company to cut prices. Competitors may be able to call on more resources than the company. While the company believes that the Omni is unique, there may be other ways to provide for 360­degree movement and interaction for virtual reality. Additionally, competitors may replicate Virtuix's business ideas and produce directly competing products, possibly without having to rely on outsourced manufacturing. These competitors may be better capitalized than Virtuix, which would give them a significant advantage. This would particularly be the case if major technology companies were to enter the market. There is no current market for any shares of the company's stock. There is no formal marketplace for the resale of the Series A Preferred Stock or of any shares of Common Stock issuable upon conversion of the Series A Preferred Stock. Shares of Series A Preferred Stock may be traded on the over­the­counter market to the extent any demand exists. Investors should assume that they may not be able to liquidate their investment for some time, or be able to pledge their shares as collateral. Investors will hold minority interests in the company. Virtuix  Holdings  Inc.  has  already  issued  3,750,000  shares  of its  Series  Seed  Preferred  Stock  and  3,601,709  shares  of  its  Series  2  Seed  Preferred  Stock.  Investors  will  hold  minority interests in the company and will not be able to direct its operations. The rights, preferences, and privileges of the Series A Preferred Stock are identical to those of the Series Seed Preferred Stock and Series 2 Seed Preferred Stock. ­ 7 ­

Investors will be subject to the terms of the Subscription Agreement. As part of this investment, each investor will be required to agree to the terms of the Subscription Agreement included as Exhibit 4 to the Offering Statement of which this Offering Circular  is  part.  The  Subscription  Agreement  requires  investors  to  indemnify  the  company  for  any  claim  of  brokerage commissions,  finders’  fees  or  similar  compensation.  All  legal conflicts relating to the Subscription Agreement will be heard in Texas courts under Texas law. In addition, by each investor’s execution of the Subscription Agreement and under the terms thereof, each investor will join as a party to the Amended and Restated Investors’ Rights Agreement, the Amended and Restated Right of First Refusal Agreement and the Voting Agreement, each dated as of March 10, 2016, as entered into by the company with the holders of the company’s Series Seed Preferred Stock, Series 2 Seed Preferred Stock and certain holders of Common Stock. Each of these investment agreements has been filed as an exhibit to the company’s Offering Statement under Regulation A of which this Offering Circular is part. The company has previously issued secured debt. The company received a $1 million loan from Venture Lending & Leasing VII, Inc. secured by a pledge of 2,000,000 shares of the Common Stock of Virtuix Inc. and the intellectual property of the company as collateral for the loan. In the event of default on repayment of this loan, Venture Lending & Leasing VII, Inc. may take possession and sell the collateral to satisfy the company’s obligations under the loan. ­ 8 ­

DILUTION Dilution means a reduction in value, control or earnings of the shares the investor owns. Immediate dilution An early­stage company typically sells its shares (or grants options over its shares) to its founders and early employees at a very low cash cost, because they are, in effect, putting their “sweat equity” into the company. When the company seeks cash investments from outside investors, like you, the new investors typically pay a much larger sum for their shares than the founders or earlier investors, which means that the cash value of your stake is diluted because each share of the same type is worth the same amount, and you paid more for your shares than earlier investors did for theirs. The following table compares the price that new investors are paying for their shares with the effective cash price paid by existing shareholders, giving effect to full conversion of all outstanding, vested stock options, and assuming that the shares are priced at $2.332 per share. It reflects all transactions since inception, which gives investors a better picture of what they will pay for their investment compared to the company’s insiders than just including such transactions for the last 12 months, which is what the SEC requires.       Outstanding Common Shares (Founder) Preferred Stock issued in Series 1 Seed offering Preferred Stock issued in Series 2 Seed offering Related Party Notes and Convertible Notes issued and converted to Preferred Stock Warrants (Convert to PF, then to CS) Preferred Stock (Converted 2015 Notes) Vested Options Total Potential Common Shares Investors in this offering, assuming $15MM raised Total After Inclusion of this Offering

                         

Shares Issued     (Assuming Full     Conversion)     5,500,000  $ 3,031,250    2,854,283    718,750    156,250    747,426    624,733    13,632,692    6,432,247    20,064,939  $

    Effective Price   per Share Paid    0.03  0.80  1.05  0.80  0.80  1.20  0.11  0.53  2.332   1.109 

The following table demonstrates the dilution that new investors will experience relative to the Company’s net tangible book value as of September 30, 2015 of $(23,650), adjusted for the assumption of proceeds from conversion all other convertible equity and debt instruments outstanding at current, and assuming exercise of all vested options outstanding through current, which provide $193,721 of proceeds from conversions resulting in the issuance of 8,132,692 shares of common stock, in addition to the  5,500,000  shares  of  common  stock currently  issued  and  outstanding.  Issued  stock  options  that  have  not  yet  vested  and  authorized  but  unissued  stock  options  are  excluded  from  the  share  conversions  and  proceeds assumptions used in these calculations. Net tangible book value is the aggregate amount of the Company’s tangible assets, less its total liabilities. The table presents three scenarios: a $5 million raise from this offering, a $10 million raise from this offering, and a fully subscribed $15 million raise from this offering. ­ 9 ­

  Price per Share Shares Issued Capital Raised Less: Offering Costs Net Offering Proceeds Net Tangible Book Value Pre­Financing Net Tangible Book Value Post­Financing   Shares Issued and Outstanding Pre­Financing Post­Financing Shares Issued and Outstanding   Net tangible book value per share prior to offering Increase/(Decrease) per share attributable to new investors Net tangible book value per share after offering Dilution to NBV per share to new investors

$ $   $ $ $ $ $             $ $ $ $

5MM Raise   2.332  2,144,082   5,000,000   (455,000)  4,545,000   170,071   4,715,071    13,632,692  15,776,774     0.012  0.286  0.299   2.033 

$ $   $ $ $ $ $             $ $ $ $

10MM Raise   2.332  4,288,165   10,000,000   (830,000)  9,170,000   170,071   9,340,071    13,632,692  17,920,856     0.012  0.509   0.521   1.811 

$ $   $ $ $ $ $             $ $ $ $

15MM Raise   2.332  6,432,247   15,000,000   (1,205,000)  13,795,000   170,071   13,965,071    13,632,692  20,064,939     0.012  0.684  0.696   1.636 

The following table presents the stock options issued, forfeited, outstanding, and vested, through current. The dilution calculations and  tables  herein  only  give  effect  to  the  currently vested options outstanding, and therefore, further dilution is possible should some or all of the unvested outstanding options ultimately vest and be exercised or if authorized but unissued stock options are issued and ultimately vest. No options have been exercised to date. Exercise Price   $ 0.11 $ 0.32 TOTAL

             

  Issued   1,732,030  349,690  2,081,720 

                 

  Forfeited

              Outstanding                 (336,250)   1,395,780    ­    349,690    (336,250)   1,745,470   

  Vested

   

  624,733  ­  624,733 

Future dilution Another important way of looking at dilution is the dilution that happens due to future actions by the company. The investor’s stake in a company could be diluted due to the company issuing additional shares. In other words, when the company issues more shares, the percentage of the company that you own will go down, even though the value of the company may go up. You will own a smaller piece of a larger company. This increase in number of shares outstanding could result from a stock offering (such as an initial public offering, another crowd  funding  round,  a  venture  capital  round,  or  additional  angel  investment),  employees  exercising  stock  options,  or  by  conversion  of  certain  instruments  (e.g.  convertible  bonds, preferred shares or warrants) into stock. ­ 10 ­

If the company decides to issue more shares, an investor could experience value dilution, with each share being worth less than before, and control dilution, with the total percentage an investor owns being less than before. There may also be earnings dilution, with a reduction in the amount earned  per  share  (though  this  typically  occurs  only  if  the  company  offers dividends, and most early stage companies such as Virtuix do not pay dividends for some time). The type of dilution that hurts early­stage investors most occurs  when  the  company  sells  more  shares  in  a  “down  round,”  meaning  at  a  lower valuation  than  in  earlier  offerings.  An example of how this might occur is as follows (numbers are for illustrative purposes only):    

•   •   •

In June 2014 Jane invests $20,000 for shares that represent 2.0% of a company valued at $1 million.   In December the company is doing very well and sells $5 million in shares to venture capitalists on a valuation (before the new investment) of $10 million. Jane now owns only 1.3% of the company but her stake is worth $200,000.   In June 2015 the company has run into serious problems and in order to stay afloat it raises $1 million at a valuation of only $2 million (the “down round”). Jane now owns only 0.89% of the company and her stake is worth only $26,660.

If you are making an investment expecting to own a certain percentage of the company or expecting each share to hold a certain amount of value, it’s important to realize how the value of those shares can decrease by actions taken by the company. Dilution can make drastic changes to the value of each share, ownership percentage, voting control, and earnings per share. ­ 11 ­

USE OF PROCEEDS TO ISSUER The net proceeds of a fully subscribed offering to the issuer, after total offering expenses and commissions will be approximately $13.9 million, depending on the final commission paid to SI Securities. Virtuix plans to use these proceeds as follows:  

•

Approximately $1 million to pay off the following indebtedness: o

$0.83  million  in  principal  amount  as  of  September  30,  2015  and  $0.25  million  in  interest  owed,  payments  of  $38,255  due  each  month through September 2017, under the terms of a Secured Promissory Note entered into on September 5, 2014 with Venture Lending & Leasing VII, Inc. (the "VLL Note"). The monies borrowed were used for product development, and to meet payroll and other company expenses. The VLL Note carries an interest rate of 11.75% per annum. In addition to the interest rate, the company issued to Venture Lending & Leasing VII, Inc. a warrant that is currently  exercisable  for  the  purchase  of  156,250  shares  of  the  company's  Series  Seed  Preferred  Stock  at  an  exercise  price  of  $0.80  per  share. Further, the VLL Note is secured by a pledge of 2,000,000 shares of the Common Stock of Virtuix Inc. as collateral and the intellectual property of the company.

Approximately $12.675 million, or 91.3% of the net proceeds assuming the maximum amount offered is raised, has not been specifically allocated. Those funds will be used for three primary purposes at the discretion of the company:          

•   •   •

Expanding marketing efforts to reach more potential customers.   Expanding the engineering team to continue product design and build out Omni Connect and the Omni Online social platform.   Expand the game development team to build out the TRAVR content universe.

Because the offering is being made on a “best efforts” basis, without a minimum offering amount, Virtuix may close the offering without sufficient funds for all the intended purposes set out above. If the offering size is $5 million, then the company estimates that its net proceeds from this offering will be approximately $4.5 million. In such an event, Virtuix will adjust its use of proceeds by reducing planned expansion of marketing, engineering, and game development. The company will still pay off the full amount of indebtedness specified above. The company reserves the right to change the above use of proceeds if management believes it is in the best interests of the company. ­ 12 ­

THE COMPANY’S BUSINESS Basic Information about the Company and Overview In 2011, prior to founding the company, Jan Goetgeluk began developing the product that would become the company’s core product. Virtuix was first founded as Virtuix Technologies LLC  in  April  2013.  Virtuix  Technologies LLC  converted  into  Virtuix  Inc.  in  November  2013.  In  December  2013,  Virtuix Holdings  Inc.  was  incorporated  in  Delaware  to  act  as  the holding company for Virtuix Inc., Virtuix Interactive I LLC (a subsidiary formed in January 2014), and Virtuix Manufacturing Ltd. (a subsidiary organized in Hong Kong formed in January 2015, and acquired by Virtuix Holdings Inc. on June 24, 2015). Virtuix is a pioneer in the recent rebirth of virtual reality (“VR”). Previously, VR technology was expensive, bulky, and of low quality. In recent years, VR technology has become more affordable and of higher quality thanks to the availability of high resolution screens, inertial sensors, and greater processing power that was initially demanded by the consumer cellular phone industry. Virtuix mission is to be the leading platform for Active VR, which includes any VR application that requires first­person navigation in­game, such as walking or running. Examples of Active VR include first­person shooters, first­person adventure or exploration games, and any non­gaming applications that require first­person navigation like training simulations, real estate walk­throughs,  or  virtual  tourism.  In  comparison  to  the  current  competitors  in  the  market  space,  as  of  September  30,  2015,  Virtuix  has  completed  the  largest  donation/reward crowd funding campaign and has sold the most units through pre­orders. Production of the Omni began in the fourth quarter of 2015. The company is currently delivering on pre­orders it received and is taking new orders for its product. Principal Products and Services Virtuix  began  delivering  the  Omni  in  December  2015.  The  company’s  primary  product  is  the  Omni.  The  Omni  is  the  first  virtual  reality  motion  platform  for  moving  freely  in  360 degrees in VR games or applications. The Omni permits video game users' own movements to control the movement of characters in a virtual reality context — users move freely and naturally on a physical platform that is integrated into a virtual reality system. This allows for users to walk, run, or jump inside virtual worlds. The device has no moving parts, which makes it durable, compact, and affordable. The Omni is compatible with PC based and mobile VR head mounted display devices currently available or coming to market (such as the Oculus Rift, HTC Vive, Samsung Gear VR, and Google Cardboard), and with content that uses standard gamepad input and is VR enabled. ­ 13 ­

 

The bio­mechanics of locomotion in virtual reality are a hard problem to solve. Human bodies are sensitive to physical movements and computer interactions that feel unnatural. This is a specialist area of interface design that is currently not addressed by most major electronics manufacturers. The Omni uses a proprietary, low­friction, concave platform that enables a smooth and  natural  gait.  The  Omni  footwear  contains  proprietary  low­friction  pads  that  allow  for  an  immersive  walking  and  running  motion  on  the  Omni  base.  A  support  ring  and untethered  support  harness  aim  to  provide  both  safety  and  versatility  for  rapid,  unconstrained  movement.  Users  are  kept  safely  upright  on  the  Omni  thanks  to  the  support  ring  and harness. The company believes true virtual reality cannot be experienced sitting down. Active VR applications like first­person shooters or exploration games require movement in­game that does not translate well to a seated or standing player setup due to physical constraints, safety issues, and simulator sickness. The panoramic visuals offered by head mounted displays need corresponding natural movement to maintain the user’s sense of orientation and feeling of immersion. The Omni enables popular Active VR experiences safely, comfortably, and provides the fun, addictive, and immersive entertainment experiences that gamers and mainstream consumers long for. The company believes that the Omni can be used in contexts other than gaming, including: corporate training and simulations, exercise and fitness, architectural design/construction,  entertainment,  health  care/physical  therapy,  virtual workplaces and events, and virtual tourism. Ultimately, Virtuix’s vision is to have an Omni be part of every Active VR setup both for home use and commercial applications. ­ 14 ­

The first version of the Omni hardware has been designed for direct­to­consumer online sales. The company anticipates that future versions will have the margin, scale, and design to allow for wholesale and retail distribution. The  company  is  also  developing  its  Omni  Pro,  of  which  a  prototype  was  revealed  at  the  December  2014  Interservice/Industry  Training,  Simulation  and  Education  Conference ("I/ITSEC")  conference  sponsored  by  the  National  Training  and  Simulation  Association.  The  Omni  Pro  is  a  larger  system  than  the  Virtuix  Omni  and  allows  for  users  to  crouch  in addition to walking, running, and jumping. To  encourage  customer  engagement  with  the  Omni,  the  company  is  developing  software  for  users  to  create  profiles,  track  usage  as  well  as  its  own  Omni  social  platform—  Omni ConnectTM and Omni OnlineTM, respectively. Omni Connect is a software application that aims to track a user’s physical metrics and usage, such as steps taken, distance walked, and calories burned. Omni Online provides the product’s social gaming functionality, including online storage of player’s profiles  and  gaming  stats,  and  the  presence  of  universal  leader boards  and  league  standings.  The  company  intends  to  use  Omni  Online  to  transform  the  traditional  solitary  VR  experience  to  a  fun,  addictive,  and  social  (multiplayer)  Active  VR experience with the Omni. The current version of the social platform allows users to create a profile, access universal leader boards, and maintain data on usage of the Omni. Over time, the company intends to build out the Omni social platform functionality to deliver the user experience described above. While the Omni is compatible with existing video games and virtual reality systems, the company is developing its own games under the TRAVR content universe. TRAVR games are first­person action games that demonstrate the capabilities of the Omni and aim to provide fun, addictive, and repeatable gaming experiences unavailable from any other product. These games will be specifically designed to allow users to engage the full functionality of the Omni in their gameplay. ­ 15 ­

Market The company believes virtual reality is the next phase of human computer interaction. The principal market for the Omni are individual consumers who are currently using virtual reality head mounted display ("HMD") or plan to use virtual reality HMD to augment their game playing experience. The company estimates that from its Fiscal Year 2016 to its Fiscal Year 2019, the global market for HMDs will grow from 8,225,000 to 38,000,000 units sold per year. This estimate is derived from averaging projections made in industry research reports of Business Insider from April 27, 2015, Piper Jaffray from May 2015, KZero Worldwide from July 2014, and Gartner from May 2015. These reports were not produced for the company or for this offering. Marketing/Distribution Channels The company is currently taking pre­orders of the Omni directly through its own website. It previously accepted pre­orders in a crowdfunding campaign through Kickstarter that ended in July 2013. That campaign resulted in $1.1 million of pre­orders. Marketing efforts have been focused on PC gamers as early adopters. Virtuix reaches these gamers with a variety of online and offline marketing campaigns, such as online game videos or live demos at trade shows and events. As of October 30, 2015, the main growth driver has been showing the product to influential gamers, journalists and bloggers, and letting them demo the Omni. The coverage and content that  they  created  has  driven  customers  to  buy  the  product  online.  The  company  plans  to  increase  its  online  and  offline  marketing  campaigns,  demos  and  marketing  events,  and community engagement. Virtuix made significant efforts to build the Omni brand and reputation among the eSports, PC gaming, and VR enthusiast communities. The  company  has  also  received  interest  from  several  commercial  markets,  including  the  military  industry  for  training  and  simulation,  the  gym  industry  for  exercise  and  fitness,  the architecture and real estate industries for virtual walkthroughs, and the arcade industry for commercial out­of­home entertainment. The company will continue to explore distribution to these markets. Competition The company will face competition from other equipment manufacturers, including manufacturers that have not begun developing their own products. Virtuix believes that the Omni will have advantages over other competitors currently in the market space, including:        

• • • •

lowest price point of $699; defensible product features, trade secrets, and intellectual property; smallest physical footprint; and first to market.

Its first­mover advantage for fully immersive omnidirectional treadmills has been a key strength for Virtuix. The company’s early product demonstrations and pre­order volume have resulted in strong relationships with headset makers, content creators, game developers, and the makers of VR accessories and controllers. The company anticipates building on these relationships as Omnis are delivered to pre­order purchasers. ­ 16 ­

The Omni does not compete with headset makers and contents creators. Instead, the Omni acts as the compatible interconnect between other VR devices and content creators, providing the necessary input solution that enables popular Active VR experiences. Product Delivery The company began delivery of the Omni in December 2015. Production will increase as the assembly process is fine­tuned to improve quality and efficiency. Suppliers The company has entered into an Original Equipment Manufacturing Agreement with an electronics manufacturer in China. The manufacturing agreement provides a non­exclusive right to manufacture the Omni at the specifications provided by Virtuix. The manufacturer is responsible for making the plastic components and assembling the final product with materials obtained  from  other  suppliers.  All  manufactured  products  will  be  required  to  meet  the  Acceptable  Quality  Level  of  the  product  specifications  provided  by  Virtuix.  Virtuix  owns  the plastic injection molds used to construct the Omni and could utilize additional manufacturers or change manufacturers. Research and Development Since inception, the company has spent approximately $1.5 million on research and development of its products. Employees Virtuix has 15 employees working full­time in Austin, TX, and 12 employees working full time in China. Additionally, the company has engaged three contractors at its Austin, TX location. Two part­time roles are filled by contactors as well. Intellectual Property The company relies on its intellectual property. As of August 31, 2015, the company has filed two non­provisional utility patent applications, nine provisional utility patent applications, and one design patent application.     1

Application Number 61/757,986

Title   Locomotion System and Apparatus

2

14/062,625

Locomotion System and Apparatus

3

61/955,767

4

61/981,149

METHOD AND SYSTEM OF DECOUPLING A LOCOMOTION AND VIRTUAL REALITY SYSTEM OMNIDIRECTIONAL LOCOMOTION SYSTEM FOR MILITARY APPLICATION

5

29/488,951

Omni­directional Locomotion Platform

6

62/004,550

Support Tube System For Vertical Movement of an Omnidirectional Locomotion Device

7

62/099,426

AN OMNIDIRECTIONAL LOCOMOTION SYSTEM AND APPARATUS

8

62/127,261

AN OMNIDIRECTIONAL LOCOMOTION SYSTEM AND APPARATUS

9

14/663,433

METHOD GENERATING AN INPUT IN AN OMNIDIRECTIONAL LOCOMOTION SYSTEM

10

62/144,253

HAPTIC GLOVE FOR USE IN A VIRTUAL ENVIRONMENT

11

62/198,032

OMNIDIRECTIONAL LOCOMOTION SYSTEM AND APPARATUS

12

62/253,317

METHOD OF SOFT­DECOUPLING VIRTUAL REALITY INPUT DATA; SYSTEM AND METHOD OF IDENTIFYING A SENSOR ­ 17 ­

Type   Provisional Utility  Patent Application Non­provisional Utility  Patent Application Provisional Utility  Patent Application Provisional Utility  Patent Application Design Patent  Application Provisional Utility  Patent Application Provisional Utility  Patent Application Provisional Utility  Patent Application Non­provisional Utility  Patent Application Provisional Utility  Patent Application Provisional Utility  Patent Application Provisional Utility  Patent Application

Date Filed 1/29/2013 10/24/2013 3/19/2014 4/17/2014 4/24/2014 5/29/2014 1/2/2015 3/2/2015 3/19/2015 4/7/2015 7/28/2015 11/10 /2015

The application titled "Locomotion System and Apparatus" has been filed with international patent regulators in Europe, China, Russia, India, Brazil, South Korea, and Australia. Additionally, Virtuix has entered into a License Agreement with CloudNav, Inc. covering the license of CloudNav, Inc.'s Sensor Fusion Library and Virtual Reality Motion Library. The company has also filed for trademark protection for Virtuix, Virtuix Omni, and TRAVR.  

Serial Number

Mark

Class

1

85851171

VIRTUIX

009

Date Filed 2/15/2013

2

85851157

VIRTUIX OMNI

028

2/15/2013

3

85851157

VIRTUIX OMNI

025

6/6/2013

4

86156858

TRAVR

009

1/2/2014

The trademark applications for "Virtuix" and "Virtuix Omni" filed on February 15, 2013 have been filed with international trademark regulators in Argentina, Brazil, Canada, European Union, Taiwan, and the World Intellectual Property Organization. The company is currently involved in a dispute in China regarding the trademark "Virtuix Omni". Litigation The company has been named a defendant in a legal proceeding in the 149th District Court of the State of Texas by Glen Jones. The Service of Process was mailed on July 13, 2015. The lawsuit alleges breach of contract and seeks monetary damages and other civil remedies, all of which the company has denied in its filed answer. ­ 18 ­

THE COMPANY’S PROPERTY The company owns manufacturing molds for its current products. Virtuix currently leases its premises. ­ 19 ­

MANGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations As of September 30, 2015, the company has not yet recognized sales of its core product, the Omni. Through online pre­orders, the company has received over $2 million in cash, which is recorded as deferred revenue. Those revenues will be recognized once the company begins delivering its product. The company began production in December 2015 and delivered its first product on December 15, 2015. Pre­orders  of  the  Omni  began  in  June  2013  with  the  company's  successful  Kickstarter  campaign.  With  an  original  goal  of  raising  $150,000  by  offering  rewards  and  pre­orders,  the company  raised  over  $1.1  million.  Certain  revenues  from  the  rewards  offered  in  the  Kickstarter  campaign  (such  as  t­shirts  and  posters)  other  than  the  Omni  were  recognized  upon delivery of the reward. The approximate time period these revenues were recognized was from September to December 2014. Although  the  company  has  not  undertaken  any  major  marketing  campaign,  pre­orders  of  the  Omni  have  continued.  On  a  quarterly  basis,  starting  on  April  1,  2014  and  ending  on September  30,  2015,  the  company  accrued approximately  $179,000,  $95,000,  $102,000,  $238,000,  $88,000,  and  $111,491  in deferred  revenue  from  pre­orders  of  the  Omni.  For  the Fiscal  Year  ending  March  31,  2015  (“Fiscal  2015”),  the  company  accrued  approximately  $615,000  in  deferred  revenue.  And  in  the  six  months  ending  on  September  30,  2015,  the company accrued an additional $199,401 in deferred revenue. Because sales of its products have not yet been recognized, the company has not yet determined the cost of goods sold. Cost of goods will include the cost of materials to produce each Omni, manufacturing costs, shipment costs, licensing fees with CloudNav, Inc., and other costs associates with the sale of the company's core product. As of September 30, 2015, the company had acquired $68,671 in inventory assets, comprising electronic component parts for its primary product. The company's operating expenses consist of rent, payroll, professional services, selling expenses, and research and development. Operating expenses for Fiscal 2015 totaled $3,449,829, a 113% increase from $1,619,573 for Fiscal 2014. The primary components of the increase from 2014 to Fiscal 2015 were: • •

a 137% increase in general and administrative expenses covering personnel costs, rent, insurance, professional and legal services, and expenses incurred other than for sales activities. The principal driver of this increase was the increase in personnel of the company from approximately 10 persons to 30; and a 105% increase in research and development expenses due do the availability of funds to engage in necessary research and development of the core product following capital raising efforts. ­ 20 ­

For the six months ended September 30, 2015, the company accrued $2,044,976 in operating expenses, a 26% increase from $1,619,652 for the six months ended September 30, 2014. The primary components of the increase in operating expenses between these two periods included: •

a 72% increase in general and administrative expenses covering personnel costs, stock compensation expense, professional and legal services, and operating expenses.

As a result of the foregoing factors, the company's net loss for Fiscal 2015 was $3,524,322, an 120% increase from the net loss of $1,603,580 in Fiscal 2014. For the six months ended September 30, 2015, the company’s net loss was $2,146,482. Liquidity and Capital Resources As of October 30, 2015, the company has not made any profits and had not commenced its planned principal operations. While the company has, as of September 30, 2015, $2,601,601 cash  on  hand,  it  has  not  recognized  revenue  from  sales  of  its  products.  The  company  has  recorded  losses  from  the  time  of  inception  to  September  30,  2015  in  the  total  amount  of $7,172,878. The company’s operations have largely been financed to date from its financing activities. The company was initially capitalized by the company's founder Jan Goetgeluk in the amount of $183,132. Then in June 2013, the company launched a Kickstarter campaign, which generated $1.1 million in cash for the company. From April through May 2014, the company was further capitalized by equity investments from its stockholders in the amount of $3,000,000 from three sources, including $175,000 in related party notes subsequently converted into Series Seed Preferred Stock, $400,000 in convertible notes subsequently converted into Series Seed Preferred Stock, with the remainder being direct sales of the company’s Series Seed Preferred Stock. From December 2014 to February 2015, the company received an additional equity investment from its stockholders in the amount of $2,997,000 through the sale of its Series 2 Seed Preferred Stock. From May 2015 to July 2015, the company received $879,701 from the sale of convertible promissory notes that converted into Series 2 Seed Preferred Stock on September 30, 2015. In  addition  to  its  sales  of  equity  and  convertible  notes,  the  company  has  entered  into  a  venture  loan  agreement  with  Venture  Lending  &  Leasing  VII,  Inc.  in  September  2014.  The company received $1,000,000 from this loan. The company has the ability to request an additional loan of $250,000 from the lender when production of the Omni begins. The company’s operations are dependent on making capital expenditures to produce manufacturing molds for the Omni. In the event that the company does not raise sufficient funds in this offering, the company will continue to make the planned capital expenditures out of its available cash on hand or its available loan facility. Plan of Operations Over the next 12 months, the company anticipates that it will begin production of the Omni, starting with the units ordered through the Kickstarter campaign in 2013. The company anticipates a production schedule as follows: ­ 21 ­

   

• •

10 units in December, 2015; 50 units in January, 2016.

As  the  manufacturing  process  is  fine­tuned  during  these  first  batches,  production  will  ramp  up  to  meet  the  company’s  obligations  to  purchasers  of  pre­ordered  products  and  future purchasers. Omni Connect and Omni Online are under continued development. The company anticipates that Omni Connect and Omni Online will be ready in the first quarter of 2016. The company anticipates releasing three games for the TRAVR content universe in January, 2016. The company will be able to begin its production with its cash on hand. Without additional financing from this offering, the company anticipates that it would be able to continue its normal operations through the end of March 2016. Trend Information Initially, the Omni was targeted to hardcore gamers who had already adopted virtual reality and desired to more fully immerse themselves in the experience. However, as the applications of virtual reality have expanded beyond hardcore gaming, Virtuix's target markets have expanded accordingly. The company believes that Omni Connect and Omni Online, by allowing users to create profiles, track usage, and engage socially, will appeal to a larger audience of users interested in applications other than gaming. To more completely reach this market, the company is actively considering ways to offer the Omni at a lower price, and further reduce the device's physical size. The company believes these efforts will enable the company to reach a larger market. The company continues to explore the market for professional and military users. The company revealed its Omni Pro prototype at the December 2014 Interservice/Industry Training, Simulation and Education Conference ("I/ITSEC") conference sponsored by the National Training and Simulation Association. To better reach this market, the company has brought on a part­time Military Business Development specialist. With the manufacturing agreement in place, the company began production of the Omni in December 2015 and delivered its first unit on December 15, 2015. Future delivery dates and volume will depend on the capacity and performance of the manufacturer. ­ 22 ­

DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES The following table sets out the company’s officers and directors. All work with the company on a full­time basis. Name

Position

Age

Term of Office (if indefinite, give date appointed)

Jan L. Goetgeluk

CEO

32

April 15, 2013

David Robert Malcolm Allan

Pres.

48

August 12, 2013

CEO

32

April 15, 2013

  Executive Officers:

  Directors: Jan L. Goetgeluk Jan Goetgeluk, CEO and Sole Director Jan Goetgeluk is the founder and CEO of Virtuix since its inception in February 2013. Prior to founding Virtuix, Mr. Goetgeluk was an Investment Banking Associate with JP Morgan Chase in Houston and New York. He served in that role from May 2010 to February 2013. While working as an investment banker, he started developing the Omni after hours, often working until late in the morning. In February 2013, after two years of researching, experimenting, and prototyping, Mr. Goetgeluk decided to leave his full­time job and founded Virtuix to bring the Omni to market. Mr. Goetgeluk holds a Bachelor of Science and Master of Science degree in Mechanical Engineering from the University of Ghent in Belgium, and an MBA degree from Rice University in Houston. David Allan, COO and President David Allan is currently President and Chief Operating Officer of Virtuix. He has served as President since December 2013 and as Chief Operating Officer since August 2013. Prior to joining the company, Mr. Allan was Vice President of ERP Power LLC, a California electronics startup, from June 2008 to January 2012. In that position he was responsible for setting up a China manufacturing subsidiary employing 200 workers. From January 2006 to May 2008, Mr. Allan was a senior manager at Flextronics, a Fortune 500 manufacturing company. Other  prior  positions  include  twelve  years  as  co­owner  of  a  Taiwan­based  OEM  hardware  business.  Mr.  Allan  holds  a  B.A.Sc.  degree  in  Systems  Design  Engineering  from  the University of Waterloo. ­ 23 ­

COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS For the fiscal year ended March 31, 2015 the company only had two executive officers and one director. The compensation for its two executive officers was as follows: Name

Capacities in which compensation was received Cash compensation  ($)

Other compensation  ($)

Total compensation  ($)

Jan Goetgeluk

Chief Executive Officer

$55,962

N/A

$55,962

David Allan

Chief Operating Officer

$175,000

$3,000

$178,000

For the fiscal year ended March 31, 2015, Jan Goetgeluk, the sole director, was not compensated for his services as a Director. In  June  2014,  the  company  granted  David  Allan  options  to  acquire  1,125,000  shares  of  Common  Stock  of  Virtuix  Holdings,  Inc.  The  options  were  granted  on  a  three  year  vesting schedule at an exercise price of $0.11 per share. ­ 24 ­

SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS The following table sets out, as of August 31, 2015, the voting securities of the company that are owned by executive officers and directors, and other persons holding more than 10% of the company’s voting securities, or having the right to acquire those securities. Title of class Name and address of beneficial owner Amount and nature of beneficial ownership Amount and nature of beneficial ownership acquirable Percent of class Common Stock

Jan Goetgeluk, 8406 Hub Cove, Austin, TX 78759

5,500,000 shares of common stock

0

100%

Common Stock

David Allan, 5F­1, #273, Alley 3, Lane 219, Chung Shan N. Road, Section 7, Taipei, Taiwan 11285

­­

1,125,000 shares available from issued stock options subject to three year vesting schedule

17%

The  final  column  (Percent  of  Class)  includes  a  calculation  of  the  amount  the  person  owns  now,  plus  the  amount  that  person  is  entitled  to  acquire.  That  amount  is  then  shown  as  a percentage of the outstanding amount of securities in that class if no other people exercised their rights to acquire those securities. The result is a calculation of the maximum amount that person could ever own based on their current and acquirable ownership, which is why the amounts in this column will not add up to 100%. ­ 25 ­

INTEREST OF MANGEMENT AND OTHERS IN CERTAIN TRANSACTIONS The company has not entered into any transactions in which the management or related persons have interest in outside of the ordinary course of operations of the company. ­ 26 ­

SECURITIES BEING OFFERED General The company is offering Series A Preferred Stock to investors in this offering. The following description summarizes important terms of the company's capital stock. This summary does not purport to be complete and is qualified in its entirety by the provisions of the Third Amended and Restated Certificate of Incorporation and its Bylaws, copies of which have been filed as Exhibits to the Offering Statement of which this Offering Circular is a part. For a complete description of Virtuix Holdings Inc.'s capital stock, you should refer to its Third Amended and Restated Certificate of Incorporation, and Bylaws, and applicable provisions of the Delaware General Corporation Law. Immediately following the completion of this offering, Virtuix Holdings Inc.'s authorized capital stock will consist of 23,000,000 shares of Common Stock, $0.001 par value per share, and 15,300,000 shares of Preferred Stock, $0.001 par value per share, of which 7,000,000 of those shares are designated as Series A Preferred Stock, 4,300,000 shares are designated as Series 2 Seed Preferred Stock, and 4,000,000 designated as Series Seed Preferred Stock. As of October 1, 2015, the outstanding shares of Virtuix Holdings Inc. included: 5,500,000 shares of Common Stock, 3,750,000 shares of Series Seed Preferred Stock, and 3,601,709 shares of Series 2 Seed Preferred Stock. Common Stock Dividend Rights Holders of Common Stock are not entitled to receive dividends, as may be declared from time to time by the board of directors out of legally available funds, unless such dividends are paid ratably to the holders of Common Stock and Preferred Stock based on the number of shares of Common Stock which would be held by each stockholder if all of the Preferred Stock was converted at the then­effective conversion rate applicable to such shares of Preferred Stock. The company has never declared or paid cash dividends on any of its capital stock and currently does not anticipate paying any cash dividends after this offering or in the foreseeable future. Voting Rights Each holder of Common Stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, including the election of directors, but excluding matters that relate solely to the terms of a series of Preferred Stock. Right to Receive Liquidation Distributions In the event of the company's liquidation, dissolution, or winding up, holders of its Common Stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of the company's debts and other liabilities and the satisfaction of the liquidation preferences granted to the holders of all shares of the outstanding Preferred Stock. ­ 27 ­

Rights and Preferences Holders of the company's Common Stock have no preemptive, conversion, or other rights, and there are no redemptive or sinking fund provisions applicable to the company's Common Stock. Preferred Stock The company has authorized the issuance of three series of Preferred Stock. The series are designated Series Seed Preferred Stock, Series 2 Seed Preferred Stock, and Series A Preferred Stock (together the "Designated Preferred Stock"). Each series of Designated Preferred Stock contains substantially similar rights, preferences, and privileges. Dividend Rights Holders of Designated Preferred Stock are entitled to receive dividends, as may be declared from time to time by the board of directors out of legally available funds. Those dividends are paid ratably to the holders of Common Stock and Preferred Stock based on the number of shares of Common Stock which would be held by each stockholder if all of the Preferred Stock was converted to Common Stock under the terms of the company's Third Amended and Certificate of Incorporation. The company has never declared or paid cash dividends on any of its capital stock and currently does not anticipate paying any cash dividends after this offering or in the foreseeable future. Voting Rights Each holder of Designated Preferred Stock is entitled to one vote for each share of Common Stock which would be held by each stockholder if all of the Preferred Stock was converted into Common Stock. Fractional votes are not permitted and if the conversion results in a fractional share, it will be rounded to the closest whole number. Holders of Preferred Stock are entitled to vote on all matters submitted to a vote of the stockholders, including the election of directors, as a single class with the holders of Common Stock. Specific matters submitted to a vote of the stockholders require the approval of a majority of the holders of Preferred Stock voting as a separate class. These matters include any vote to: • • • • •

Amend or repeal of any provision of the Certificate of Incorporation or Bylaws if the action would alter, change or otherwise adversely affect the powers, preferences, or privileges, of any series of the Designated Preferred Stock; Increase or decrease the authorized number of shares of Designated Preferred Stock or Common Stock; Authorize any new, or reclassify any existing class or series of equity securities with rights superior to or on par with any series of Designated Preferred Stock; Redeem, repurchase, or otherwise acquire for value any shares of Common Stock or Designated Preferred Stock other than certain allowable repurchases; Declare a dividend or distribute cash or property to holders of Common Stock; and ­ 28 ­

•

Liquidate, dissolve, or wind­up the business, or effect any merger or consolidation of the company.

Right to Receive Liquidation Distributions In the event of the company's liquidation, dissolution, or winding up, holders of its Designated Preferred Stock are entitled to a liquidation preference superior to the Common Stock. Holders of Designated Preferred Stock will receive an amount for each share equal to the original price paid for the shares plus any declared but unpaid dividends thereon. If, upon such liquidation, dissolution or winding up, the assets and funds that are distributable to the holders of Designated Preferred Stock are insufficient to permit the payment to such holders of the full amount of their respective liquidation preference, then all of such assets and funds will be distributed ratably among the holders of the Designated Preferred Stock in proportion to the full preferential amounts to which they would otherwise be entitled to receive. Preemptive Rights Investors that acquire at least 85,000 shares of Preferred Stock generally are entitled to preemptive rights to acquire shares in any new offering of equity securities by the company. Holders of less than 85,000 shares do not have preemptive rights. There are no redemptive or sinking fund provisions applicable to the company's Designated Preferred Stock. Terms of Conversion The  Designated  Preferred  Stock  of  Virtuix  Holdings  Inc.  is  convertible  into  the  Common  Stock  of  the  company  as  provided  by  Section  4.3  of  the  Third  Amended  and  Restated Certificate of Incorporation. Each share of Designated Preferred Stock is convertible at the option of the holder of the share as any time after issuance and prior to the closing of any transaction that constitutes liquidation event of the company. The conversion price of the Designated Preferred Stock is equal to the issue price subject to adjustment as discussed under Anti­Dilution Rights below. Additionally, each share of the Designated Preferred Stock will automatically convert into the Common Stock of the company immediately prior to the closing of a firm commitment underwritten  public  offering,  registered  under  the  Securities  Act  of  1933,  in  which  the  aggregate  gross  proceeds  raised  are  at  least  $40  million.  The  shares  will  convert  in  the  same manner as the voluntary conversion. Anti­Dilution Rights Holders of Virtuix Holdings Inc. Designated Preferred Stock will receive certain anti­dilution protective provisions that will be applied to adjust the number of shares of Common Stock issuable upon conversion of the shares of the respective series of Designated Preferred Stock. If equity securities are subsequently issued by the company at a price per share less than the conversion  price  of  the  Designated  Preferred  Stock  then  in  effect,  the  conversion  price  of  the  Designated  Preferred  Stock  will  be  adjusted  using  a  broad­based,  weighted­average adjustment formula as provided for in the Third Amended and Restated Certificate of Incorporation. ­ 29 ­

PLAN OF DISTRIBUTION AND SELLING SECURITYHOLDERS Plan of Distribution The  company  is  offering  up  to  6,432,247  shares  of  Series  A  Preferred  Stock,  as  described  in  this  Offering  Circular.  The  company  has  engaged  SI  Securities,  LLC  as  its  sole  and exclusive placement agent to assist in the placement of its securities. SI Securities, LLC is under no obligation to purchase any securities or arrange for the sale of any specific number or dollar amount of securities. Commissions and Discounts The following table shows the total discounts and commissions payable to the placement agents in connection with this offering: Per   Per Share   $2.332 $0.1749 $2.1571

Public offering price Placement Agent commissions            Proceeds, before expenses, to us Placement Agent Warrants

The company has agreed to issue to SI Securities, LLC, for nominal consideration, a warrant to purchase up to a total of five percent (5%) of the shares of Series A Preferred Stock. The shares of Series A Preferred Stock issuable upon exercise of this warrant will have identical rights, preferences, and privileges to those being offered by this Offering Circular. This warrant shall (i) be exercisable at one hundred percent (100%) of the per share public offering price; (ii) be exercisable until the date that is five (5) years from the qualification date of this offering; (iii) contain automatic cashless exercise provisions upon a liquidity event or expiration; (iv) contain customary weighted average anti­dilution price protection provisions and  immediate  cashless  exercise  provisions  and  shall  not  be  callable  by  the  Company;  (v)  contain  customary  reclassification,  exchange,  combinations  or  substitution  provisions (including  with  respect  to  convertible  indebtedness);  and  (vi)  contain  other  customary  terms  and  provisions.  The  exercise  price  and  number  of  shares  issuable  upon  exercise  of  the warrant may be adjusted in certain circumstances including in the event of a share dividend, or the company's recapitalization, reorganization, merger or consolidation. This warrant has been deemed compensation by FINRA and is therefore subject to a 180­day lock­up pursuant to FINRA Rule 5110(g)(1). In accordance with FINRA Rule 5110(g)(1), neither this warrant nor any securities issuable upon exercise of this warrant may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative,  put,  or  call  transaction  that  would  result  in  the  qualification  economic  disposition  of  such  securities  by  any  person  for  a  period  of  180  days  immediately  following  the qualification date or commencement of sales of this offering, except to any placement agent and selected dealer participating in the offering and their bona fide officers or partners and except as otherwise provided for in FINRA Rule 5110(g)(2). In addition, this warrant grants its holders “piggyback” registration rights for periods of seven years from the qualification date of this offering. ­ 30 ­

Other Terms The company is obligated to reimburse SI Securities, LLC for up to a maximum amount of $25,000 in actual accountable out­of­pocket expenses. Except as set forth above, the company is not under any contractual obligation to engage SI Securities, LLC to provide any services to the company after this offering, and has no present intent to do so. However, SI Securities, LLC may, among other things, introduce the company to potential target businesses or assist the company in raising additional capital, as needs may  arise  in  the  future.  If  SI  Securities,  LLC  provides  services  to  the  company  after  this  offering,  the  company  may  pay  SI  Securities,  LLC  fair  and  reasonable  fees  that  would  be determined at that time in an arm’s length negotiation. SI Securities, LLC intends to use an online platform provided by SeedInvest Technology, LLC, an affiliate of SI Securities, LLC, at the domain name www.seedinvest.com (the “Online Platform”) to provide technology tools to allow for the sales of securities in this offering. Selling Security holders No securities are being sold for the account of security holders; all net proceeds of this offering will go to the company. Investors’ Tender of Funds After the Offering Statement has been qualified by the Commission, the company will accept tenders of funds to purchase the Series A Preferred Stock. The company may close on investments on a “rolling” basis (so not all investors will receive their shares on the same date). Upon closing, funds tendered by investors will be made available to the company for its use. In the event that it takes some time for the company to raise funds in this offering, the company will rely on income from sales and cash on hand of $2.6 million as of September 30, 2015. Investors will be required to subscribe to the Offering via the Online Platform and agree to the terms of the Offering and subscription agreement, which includes the adoption of the Investors’ Rights Agreement, First Refusal Agreement, and Voting Agreement (copies of which have been filed as an Exhibit to the Offering Statement of which this Offering Circular is part). The subscription agreement includes a representation by the investor to the effect that, if you are not an “accredited investor” as defined under securities law, you are investing an amount that does not exceed the greater of 10% of your annual income or 10% of your net worth (excluding your principal residence). ­ 31 ­

INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2015 Interim financial statements consisting of the consolidated balance sheets of Virtuix Holdings, Inc. and Subsidiaries for the six months ended September 30, 2015, and the consolidated statements of operations, changes in stockholders' equity, and cash flows of Virtuix Holdings, Inc. and Subsidiaries for such period have been included in this Offering Circular. ­ 32 ­

VIRTUIX HOLDINGS, INC. AND SUBSIDIARIES  CONSOLIDATED BALANCE SHEETS ASSETS       CURRENT ASSETS Cash and cash equivalents, including restricted cash of $27,752 at September 30, 2015 and March 31, 2015, respectively    Inventory    Prepaids and other current assets        TOTAL CURRENT ASSETS   NONCURRENT ASSETS    Property and equipment        Less: accumulated depreciation    Net property and equipment      Intangibles        Less: accumulated amortization    Net intangibles      Deferred tax asset (net of valuation allowance of $2,204,267 and $1,473,807 at September 30, 2015 and March 31, 2015, respectively)      Deferred loan costs        Less: accumulated amortization    Net deferred loan costs          TOTAL NONCURRENT ASSETS      TOTAL ASSETS See Accompanying Notes ­ 33 ­

        $                                                         $

September 30, 2015

               2,601,601  $ 68,671    182,686    2,852,958                275,605    (23,600)   252,005          95,417    (21,621)   73,796          ­    12,000  (4,329) 7,671    333,472     3,186,430 

                      $

March 31, 2015    3,876,657  ­  47,498  3,924,155      124,962  (24,671) 100,291    77,696  (11,302) 66,394    ­    12,000  (2,331) 9,669    176,354     4,100,509 

     

VIRTUIX HOLDINGS, INC. AND SUBSIDIARIES  CONSOLIDATED BALANCE SHEETS LIABILITIES AND STOCKHOLDERS' EQUITY       CURRENT LIABILITIES    Accounts payable    Accrued expenses    Deferred revenue ­ current portion    Due to related party    Current portion of notes payable          Less: discount on notes payable    Current portion of notes payable, net of discount          TOTAL CURRENT LIABILITIES   LONG­TERM LIABILITIES    Notes payable, net of current portion          Less: discount on notes payable    Notes payable, net of discount          TOTAL LONG­TERM LIABILITIES      TOTAL LIABILITIES   STOCKHOLDERS' EQUITY (DEFICIT)    Preferred stock, $.001 par value, 8,300,000 shares authorized,         7,351,709 and 6,604,283 shares issued and outstanding         at September 30, 2015 and March 31, 2015, respectively    Additional paid­in capital ­ preferred stock    Common stock, $.001 par value, 16,000,000 shares authorized,         5,500,000 shares issued and outstanding at September 30, 2015         and March 31, 2015    Additional paid­in capital ­ common stock    Accumulated Deficit        TOTAL STOCKHOLDERS' EQUITY (DEFICIT)      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT See Accompanying Notes ­ 34 ­

        $                                          

September 30, 2015

               114,633  $ 167,300    2,066,123    ­    387,030    (17,102)   369,928         2,717,984               437,945    (19,645)   418,300         418,300         3,136,284              

March 31, 2015    28,501  76,274  1,866,722  60,000  365,328  (17,599) 347,729     2,379,226       634,672  (24,932) 609,740     609,740     2,988,966      

   

7,351  6,858,619 

   

6,604  5,962,456 

          $

5,500  460,754  (7,282,078) 50,146      3,186,430 

          $

5,500  272,579  (5,135,596) 1,111,543      4,100,509 

     

VIRTUIX HOLDINGS, INC. AND SUBSIDIARIES  CONSOLIDATED STATEMENTS OF OPERATIONS  FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2015 AND 2014   NET SALES   COST OF GOODS SOLD   GROSS PROFIT   OPERATING EXPENSES    Selling expenses    General and administrative expenses    Research and development expenses   TOTAL OPERATING EXPENSES   OTHER INCOME (EXPENSE)    Loss on disposal of assets    Interest income    Interest expense   TOTAL OTHER INCOME (EXPENSE)   NET LOSS   Add: Net loss attributable to noncontrolling interests, net of tax   NET LOSS ATTRIBUTABLE TO VIRTUIX HOLDINGS, INC.   Weighted average common shares outstanding:    Basic and Diluted Net loss per share:    Basic and Diluted

  $                                           $       $                

See Accompanying Notes ­ 35 ­

2015

     ­  $       ­          ­                136,336    1,784,016    124,624          2,044,976                (32,717)   8,710    (77,499)         (101,506)          (2,146,482) $       306           (2,146,176) $             5,500,000          (0.39)  

2014  ­    ­    ­      122,371  1,038,104  459,177    1,619,652      ­  963  (22,842)   (21,879)    (1,641,531)   368     (1,641,163)     5,500,000    (0.30)

       

   

       

VIRTUIX HOLDINGS, INC. AND SUBSIDIARIES  STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY  FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2015 AND 2014     Common Stock                     Shares     Amount   Balance at March 31, 2015   5,500,000  $  5,500                 Convertible promissory notes converted to preferred stock   ­    ­                 Stock­ based compensation  ­    ­                 Net loss   ­    ­              Balance at September   5,500,000  $  5,500  30, 2015     Common Stock                     Shares     Amount   Balance at March 31, 2014   5,500,000  $  5,500                   Issuance of preferred stock   ­    ­                   Convertible promissory note converted to preferred stock   ­    ­                  Related party notes converted to preferred stock   ­    ­                  Preferred stock warrants   ­    ­                   Stock­ based compensation  ­    ­                   Net loss   ­    ­                Balance at September   5,500,000  $  5,500  30, 2014

        Preferred Stock                 Deficit       Additional                 Additional     Accumulated     Attributable to       Paid­In Capital     Shares     Amount     Paid­In Capital     Deficit     Noncontrolling Interest     $  

 272,579    

  6,604,283      

$  

 6,604    

$  

 5,962,456    

$  

 (5,127,902)   

$  

 (7,694)   

   

­    

   

747,426    

   

747    

   

896,163    

   

­    

   

­    

       

188,175     ­    

       

­     ­    

       

­     ­    

       

­     ­    

       

­     (2,146,176)   

       

­     (306)   

$

 460,754 

  7,351,709 

$

 7,351 

$

 6,858,619 

$

 (7,274,078)

$

 (8,000)

 183,132         

   

­ 

$      

 ­   

­    3,031,250                

3,031   

 

$      

 ­  $       2,341,231         

 (1,603,580) $     

 (6,842)  

   

896,910    

  188,175         (2,146,482)      $

 50,146      Total

­          

­   

   

2,344,262     

­   

  500,000       

     

500   

     

399,500   

     

­   

     

­   

     

400,000   

     

­   

  218,750       

     

219   

     

174,781   

     

­   

     

­   

     

175,000   

 

­        

       

­   

 

­          

­   

 

        ­         

­    ­   

       

­           (1,641,163)         

­    (368)  

 

 3,750 

$

 (7,210)

$

        $

57,038   

      ­        

­   

 240,170 

­     

  3,750,000 

$

See Accompanying Notes ­ 36 ­

52,798         

 

­     

      ­       

 2,968,310 

$

     

$  (1,421,790)        

     

 

     

$  1,111,543      

        Preferred Stock                 Deficit       Additional                 Additional     Accumulated     Attributable to       Paid­In Capital     Shares     Amount     Paid­In Capital     Deficit     Noncontrolling Interest     $  

    Total

 (3,244,743)

$

 

52,798     

57,038        (1,641,531)        

 (34,223)

VIRTUIX HOLDINGS, INC. AND SUBSIDIARIES  STATEMENTS OF CASH FLOWS  FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2015 AND 2014   CASH FLOWS FROM OPERATING ACTIVITIES   Net loss Adjustments to reconcile net loss to net cash provided by operating activities:        Depreciation and amortization expense        Amortization of discount on notes payable        Stock­based compensation        Loss on disposal of assets        (Increase) decrease in assets:              Prepaid expenses and other current assets              Inventory        Increase (decrease) in liabilities:              Accounts payable              Accrued expenses              Deferred revenue              Due from related party        CASH USED IN OPERATING ACTIVITIES   CASH FLOWS FROM INVESTING ACTIVITIES        Cash paid for purchases of fixed assets, including intangibles        CASH USED IN INVESTING ACTIVITIES   CASH FLOWS FROM FINANCING ACTIVITIES        Issuance of preferred stock        Proceeds from convertible promissory notes        Proceeds from long­term notes payable        Payments on long­term notes payable        Loan costs        CASH PROVIDED BY FINANCING ACTIVITIES   NET (DECREASE) INCREASE IN CASH   CASH AT BEGINNING OF PERIOD   CASH AT END OF PERIOD   SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:        Interest   SUPPLEMENTAL DISCLOSURE OF NON­CASH FINANCING ACTIVITIES: Convertible promissory notes converted to preferred stock Conversion of related party note to convertible note Accrued interest on convertible promissory notes converted to preferred stock Related party notes converted to preferred stock

          $                                                                           $     $         $         $ $ $ $

See Accompanying Notes ­ 37 ­

2015      (2,146,482)   23,384  7,706  188,175  32,717    (135,188) (68,671)   86,132  108,235  199,401  (60,000) (1,764,591)     (213,219) (213,219)     ­  879,701  ­  (176,947) ­  702,754    (1,275,056)    3,876,657     2,601,601       54,505       879,701   60,000   17,209   ­ 

            $                                                                                 $         $         $ $ $ $

2014      (1,637,357)   13,518  2,594  57,038  ­    (32,142) ­    36,711  2,000  274,574  ­  (1,283,064)     (66,741) (66,741)     2,344,262  ­  1,000,000  ­  (12,000) 3,332,262    1,982,457    388,627     2,371,084       20,248       400,000   ­   ­   175,000 

 

Virtuix Holdings, Inc. and Subsidiaries Notes to Consolidated Interim Financial Statements   Note 1. Nature of Operations Virtuix Holdings Inc. (“Virtuix Holdings” or the “Company”) was formed in December 20, 2013 as a Delaware Corporation. The Company has a wholly­owned subsidiary, Virtuix, Inc., a Delaware corporation formed on April 15, 2013. Virtuix, Inc. develops virtual reality hardware and software, and its main product is the Omni, the first virtual reality interface to move freely and naturally in video games and virtual worlds. Virtuix Interactive I, LLC (“VII”), a Texas Limited Liability Company, was formed on January 6, 2014, and on that date, the Company became the majority member, with 85% of the controlling financial interest. VII was formed to create interactive virtual reality content for use with the Omni. As  of  September  30,  2015,  the  Company  has  not  commenced  planned  principal  operations  nor  generated  significant  earned  revenue.  The  Company’s  activities  since  inception  have consisted of research and development of its main product, capital raising, and sales efforts to pre­sell its main product. Once the Company commences its planned principal operations of producing and selling the Omni and other products it may develop, it will incur significant additional expenses in conjunction with producing and selling products commercially. The Company is dependent upon additional capital resources for the commencement of its planned principal operations and is subject to significant risks and uncertainties; including failing to secure additional funding to operationalize the Company’s planned operations or failing to profitably produce and sell its products. Note 2. Summary of Significant Accounting Policies Principles of Consolidation  The  accompanying  consolidated  interim  financial  statements  include  the  accounts  of  Virtuix  Holdings,  Inc.  as  well  as  its  subsidiaries  required  to  be  consolidated  under  accounting principles generally accepted in the United States of America (“GAAP”). Significant intercompany accounts and transactions have been eliminated upon consolidation. Basis of Presentation The consolidated interim financial statements are presented using the accrual basis of accounting. Therefore, revenues are recognized when earned and expenses are recognized when incurred. In the opinion of management all adjustments necessary to make the consolidated interim financial statements not misleading have been included. The Company has elected to adopt early application of Accounting Standards Update (“ASU”) No. 2014­10, Development Stage Entities (“Topic 915”): Elimination of Certain Financial Reporting Requirements. The Company does not present or disclose inception­to­date information and other remaining disclosure requirements of Topic 915. Certain prior year amounts have been reclassified to conform to current year presentation. The Company has adopted a fiscal year ending March 31st of each year. Management's Estimates Preparing the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities  and  disclosure  of  contingent  assets  and  liabilities  at  the  date  of  the  consolidated  financial  statements  and  the  reported  amounts  of  revenues  and  expenses  during  the reporting period. Actual results could differ from those estimates. Revenue Recognition  The Company recognizes revenue when the earnings process is complete. This generally occurs when products are shipped to the customer in accordance with the sales agreement or purchase order, ownership and risk of loss pass to the customer, collectability is reasonably assured, and pricing is fixed or determinable. The Company’s shipping terms are generally F.O.B. shipping point, where title is transferred and revenue is recognized when the products are shipped to customers. ­ 38 ­

Virtuix Holdings, Inc. and Subsidiaries Notes to Consolidated Interim Financial Statements   Note 2. Summary of Significant Accounting Policies (continued) Noncontrolling Interests In accordance with the guidance under Topic 810, Noncontrolling Interests, in consolidated financial statements, references to net income and stockholders’ equity attributable to the Company do not include noncontrolling interests, which are reported separately. Cash and Cash Equivalents The Company considers deposits that can be redeemed on demand and investments that have original maturities of less than three months, when purchased, to be cash equivalents. As of September 30, 2015 and March 31, 2015, the Company’s cash and cash equivalents were deposited primarily in three and two, financial institutions, respectively, which at times, exceed the federally insured limits. The Company has $27,752 of its cash balances restricted as of September 30, 2015 and March 31, 2015. Inventory Valuation Inventory is stated at the lower of cost or net realizable value (market). Cost is computed using standard cost, which approximates actual cost. As of September 30, 2015, manufacturing operations have not commenced. Appropriate consideration will be given to obsolescence, excessive levels, deterioration, and other factors in evaluating net realizable value. Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight­ line method for financial statement purposes. The Company uses other depreciation methods (generally accelerated) for tax purposes where appropriate. The estimated useful lives for significant property and equipment categories are as follows: Computer Equipment Furniture and Fixtures Machinery and Equipment Trade Show Equipment

5 years 7 years 5 years 5 – 7 years

Fair Value Measurements  The Company’s financial instruments consist primarily of cash, accounts payable, accrued expenses and notes payable. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short­term maturities and approximate market interest rates of these instruments. The estimated fair value is not necessarily indicative of the  amounts  the  Company  would  realize  in  a  current  market  exchange  or  from  future  earnings  or  cash  flows.  The  Company  adopted  Topic  820­10,  Fair  Value  Measurements  and Disclosures, which defines  fair  value,  establishes  a  framework  for  measuring  fair  value,  and  expands  disclosures  about  fair  value  measurements.  The  standard  provides  a  consistent definition of fair value which focuses on an exit price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard also prioritizes, within the measurement of fair value, the use of market­based information over entity specific information and establishes a three­level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. ­ 39 ­

Virtuix Holdings, Inc. and Subsidiaries Notes to Consolidated Interim Financial Statements   Note 2. Summary of Significant Accounting Policies (continued) The three­level hierarchy for fair value measurements is defined as follows:      •     Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets      •     Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability other than quoted prices, either directly or indirectly including inputs in markets that are not considered to be active      •     Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Intangibles  The  Company’s  intangible  assets  represent  software,  trademarks,  and  a  website,  which  are  amortized  on  a  straight­line  basis  over  the  years  expected  to  be  benefited.  The  costs  of developing any intangibles for internal use are expensed as incurred. Software Development Costs  The  Company  accounts  for  software  development  costs  in  accordance  with  several  accounting  pronouncements,  including  Topic  730,  Research  and  Development,  Topic  350­40, Internal­Use Software, Topic 985­20, Costs of Computer Software to be Sold, Leased, or Marketed and Topic 350­50, Website Development Costs. Costs  incurred  during  the  period  of  planning  and  design,  prior  to  the  period  determining  technological  feasibility,  for  all  software  developed  for  use  internal  and  external,  has  been charged to operations in the period incurred as research and development costs. Additionally, costs incurred after determination of readiness for market have been expensed as research and development. The Company capitalizes certain costs in the development of its proprietary software (computer software to be sold, leased or licensed) for the period after technological feasibility was determined and prior to marketing and initial sales. Website development costs have been capitalized, under the same criteria as marketed software. Deferred Revenue Deferred revenue represents revenues collected but not earned as of September 30, 2015 and March 31, 2015. This is primarily composed of revenue for pre­orders of the Omni that have not been completed by the end of the financial reporting period. Net Loss Per Share Net loss per share is computed by dividing net loss by the weighted­average number of shares of common stock outstanding during the period, excluding shares subject to redemption or forfeiture. The Company presents basic and diluted earnings per share. Basic and diluted earnings per share reflect the actual weighted average of common shares issued and outstanding during the period. No dilutive effects were considered since the Company is in a net loss position as of September 30, 2015 and 2014. As a result, diluted loss per share is the same as basic loss per share for the periods presented. ­ 40 ­

Virtuix Holdings, Inc. and Subsidiaries Notes to Consolidated Interim Financial Statements   Note 2. Summary of Significant Accounting Policies (continued) Federal Income Taxes Topic 740­10, Accounting for Uncertainty in Income Taxes, clarifies the accounting for income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Topic 740­10 also provides guidance  on  derecognition,  measurement,  classification,  interest  and  penalties,  accounting  in  interim periods, disclosure, and transition. For the six months ended September 30, 2015 and 2014, no uncertain tax positions were identified. The Company recognizes tax related interest and penalties, if any, as a component of income tax expense. The federal tax returns are subject to examination by the Internal Revenue Service, generally for three years after they are filed. State tax returns are subject to examination generally for five years after they are filed. The Company’s less than wholly­owned subsidiary, VII is not subject to federal income taxes, and such taxes are the responsibility of the respective members. Recent Accounting Pronouncements  In June 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014­10, Development Stage Entities, which eliminated the requirements for development stage entities to (1) present inception­to­date information in the statements of income, cash flows, and members’ equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. This ASU is effective for annual reporting periods beginning after December 15, 2014, and interim periods beginning after December 15, 2015. Early application is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued. Upon adoption, entities will no longer present or disclose any information required by Topic 915. The Company has elected to early adopt this ASU and therefore, does not present or disclose inception­to­date information and other remaining disclosure requirements. In  August  2014,  the  FASB  issued  ASU  2014­15,  Presentation  of  Financial  Statements  Going  Concern  (Subtopic  205­40)  – Disclosure  of  Uncertainties  about  an  Entity’s  Ability  to Continue as a Going Concern. Currently, there is no guidance in U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue  as  a  going  concern  or  to  provide  related  footnote  disclosures.  The  amendments  in  this  update  provide  such  guidance.  In  doing  so,  the  amendments  are  intended  to  reduce diversity  in  the  timing  and  content  of  footnote  disclosures.  The  amendments  require  management  to  assess  an  entity’s  ability  to  continue  as  a  going  concern  by  incorporating  and expanding upon  certain  principles  that  are  currently  in  U.S.  auditing  standards.  Specifically,  the  amendments  (1)  provide  a  definition  of  the  term  substantial  doubt,  (2)  require  an evaluation  every  reporting  period  including  interim  periods,  (3)  provide  principles  for  considering  the  mitigating  effect  of  management’s  plans,  (4)  require  certain  disclosures  when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this update are effective for public and nonpublic entities for annual periods ending after December 15, 2016. ­ 41 ­

Virtuix Holdings, Inc. and Subsidiaries Notes to Consolidated Interim Financial Statements   Note 2. Summary of Significant Accounting Policies (continued) Early adoption is permitted. The Company has elected to early adopt this pronouncement, as described in Note 12. Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying consolidated financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances. Foreign Currency Translation  Assets  and  liabilities of  the  non­U.S.  subsidiary  that  operates  in  a  local  currency  environment,  where  that  local  currency  is  the  functional  currency,  are  translated  to  U.S.  dollars  at exchange rates in effect at the balance sheet date, with the resulting translation adjustments directly recorded to a separate component of Accumulated Other Comprehensive Income. Income and expense accounts are translated at average exchange rates during the year. Remeasurement adjustments are recorded in  other  income  or  loss,  net  of  taxes.  The  effect  of foreign currency exchange rates on balance sheet accounts was not material for the six months ended September 30, 2015. Note 3. Property and Equipment Property and equipment consist of the following as of:    

    $             $

Computer Equipment Furniture and Equipment Machinery and Equipment Office Equipment Assets in Progress   Less Accumulated Depreciation  

September 30,   2015    41,277  14,421  52,078  1,048  166,781  275,605  (23,600)  252,005 

    $             $

March 31,   2015    27,444  13,060  83,410  1,048  ­  124,962  (24,671)  100,291 

For  the  six  months  ended  September  30,  2015  and  2014,  management  has  recorded  depreciation  expense  in  the  consolidated  statements  of  operations  of  $11,067  and  $9,735, respectively. Note 4. Intangibles Intangible assets consist of the following as of:    

    $         $

Software and game design Trademarks Website   Less Accumulated Amortization   ­ 42 ­

September 30,   2015    25,704  24,526  45,187  95,417  (21,621)  73,796 

    $         $

March 31,   2015    25,704  14,055  37,937  77,696  (11,302)  66,394 

Virtuix Holdings, Inc. and Subsidiaries Notes to Consolidated Interim Financial Statements   Note 4. Intangibles (continued) For  the  six  months  ended  September  30,  2015  and  2014,  management  has  recorded  amortization  expense  in  the  consolidated  statements  of  operations  of  $10,319  and  $3,783, respectively. Note 5. Notes Payable On April 1, 2014, the Company carried three convertible promissory notes amounting to $400,000. Interest was to be accrued at 8% until the notes matured on September 30, 2014. At any time before maturity of the notes, the entire outstanding principal plus accrued and unpaid interest could be converted to shares of the Company’s capital stock when the Company issued and sold shares of its capital stock and the aggregate proceeds were equal to or exceeded $750,000. Also on April 1, 2014, the Company carried two promissory notes in the amount of $100,000 and $75,000 with a related party, payable in semi­annual installments at 1% interest. The notes were to mature on December 27, 2014 and January 28, 2015, respectively. As described in Note 6, all the aforementioned notes were converted to shares of Series Seed Preferred Stock on April 22, 2014. Effective September 4, 2014, the Company entered into an agreement to obtain financing with Western Technology Investment (“WTI”). The initial  commitment  of  $1,000,000  was received on September 5, 2014. Terms of the note are interest­only payments in six monthly installments at .979% of the amount borrowed, and thirty months of principal and interest payments beginning April 1, 2015 in the amount of $38,255, due in September 2017. The note bears a fixed rate of interest of 11.75% and is secured by all assets of the Company. In the terms of the agreement, the Company granted a warrant to WTI, to acquire shares in the most recent or next round of preferred stock, at WTI’s option, at the lower of $0.80 per share or the lowest price per share at which the Company has sold any shares of its Series Seed Preferred Stock (as of any determination date and subject to any adjustments for splits, dividends, or distributions since the date of such sale). The aggregate exercise price will be $125,000. The warrant will be exercisable until its expiration date of December 31, 2024. Upon  a  change  of  control  or  initial  public  offering  of  the  Company’s capital  stock,  the  warrant  shall  automatically  be  exchanged,  for  no  consideration  from  WTI,  for  the  maximum number of shares of the Company’s stock for which the warrant would have otherwise been exercisable. According to guidance of Topic 470­20, Debt, the warrant is recorded in equity as additional paid in capital – preferred stock, at fair value as of the date of issuance, and in liabilities, as a contra account, called discount on note payable. The fair value at the issuance date was determined to be $52,798 using the Black­Scholes model with the following assumptions. No adjustment to the fair value was made to account for the down­round protection clause in the agreement as management determined this adjustment would be difficult to estimate and immaterial to these consolidated financial statements. Exercise Price Dividend Yield Volatility Risk­free Rate Years to Expiration

$0.80 0.00% 32.40% 0.80% 10

The discount is amortized over the life of the note using the effective interest method. The carrying value of the note at September 30, 2015 was $788,228 ($824,975 principal, less discount of $36,747), and $5,785 of discount amortization is included in interest expense. ­ 43 ­

Virtuix Holdings, Inc. and Subsidiaries Notes to Consolidated Interim Financial Statements   Note 5. Notes Payable (continued) Future maturities of long­term debt are as follows as of September 30:   2016 2017  

  $   $

Principal   387,030  437,945   824,975 

The Company issued subordinated unsecured convertible promissory notes amounting to $879,701 between May 2015 and July 2015. Interest was to be accrued at 6% until the notes matured on September 30, 2015. If, on or before the maturity date, the Company issued or sold shares of any preferred stock of the Company for cash in a single transaction or series of related  transactions  in  which  the  gross  proceeds  to  the  Company  was  at  least  $1,500,000,  the  entire  outstanding  principal  plus  accrued  and  unpaid  interest  of  the  notes  would  be automatically be converted into either (i) the same class or series of preferred stock as are issued, at the same price per share at which such stock is issued and sold by the Company or (ii) shares of preferred stock of the Company at a price per share of $1.20. If, on or before the maturity date, the Company consummated a deemed liquidation, the entire outstanding principal plus accrued and unpaid interest of the notes would be converted into shares of preferred stock at a price per share equal to $1.20. If the above did not occur, then  on  the maturity date, the entire outstanding principal plus accrued and unpaid interest of the notes would be converted into shares of preferred stock at a purchase price equal to $1.20 per share. All of the notes, plus $17,209 of accrued unpaid interest, were converted into shares of preferred stock on September 30, 2015. Note 6. Capital Stock Prior  to  April  7,  2014,  the  Company’s  capital  stock  consisted  of  10,000,000  authorized  shares  of  0.001  par  common  stock,  of  which  5,500,000  shares  were  issued  and  outstanding. Effective  April  7,  2014,  the  Company  amended  its  certificate  of  incorporation  to  include  two  classes  of  stock.  The  number  of  shares  of  common  stock  authorized  increased  from 10,000,000 shares to 12,500,000 shares and the Company also authorized 3,750,000 shares of $.001 par value Series Seed Preferred Stock (the “Preferred Stock”). All of the April 1, 2014 convertible promissory notes mentioned in Note 5 were converted to shares of Preferred Stock by dividing the principal by  $.80,  resulting  in  an  issuance  of 500,000 shares of Preferred Stock on April 22, 2014. Accrued interest in the amount of $4,713 was paid directly to investors. The two April 1, 2014 promissory notes mentioned in Note 5  were  exchanged  for  convertible  promissory  notes  then  converted  into  218,750  shares  of  the  Preferred  Stock  on  April  30,  2014.  This  is  a  related  party  transaction.  The  remaining 3,031,250 shares of the Preferred Stock were issued at $.80 per share to investors between April 17, 2014 and May 19, 2014. Each holder of the Preferred Stock will have the right to convert the shares at any time, at the option of the holder, into shares of the common stock of the Company at a rate determined by dividing the number of shares held by the price paid per share. Effective August 7, 2014, the number of shares of common stock authorized increased from 12,500,000 shares to 12,750,000 shares, and the Company  also  increased  its  authorized Preferred Stock from 3,750,000 shares to 4,000,000 shares. Effective December 4, 2014, the number of shares of common stock authorized increased from 12,750,000 shares to 15,000,000 shares, and the Company also increased its authorized Preferred Stock from 4,000,000 shares to 7,000,000 shares. The Company issued 2,854,283 shares of Preferred Stock at $1.05 per share between November 24, 2014 and February 24, 2015. Each holder of the Preferred Stock will have the right to convert the shares at any time, at the option of the holder, into shares of the common stock of the Company at a 1:1 conversion rate. ­ 44 ­

Virtuix Holdings, Inc. and Subsidiaries Notes to Consolidated Interim Financial Statements   Note 6. Capital Stock (continued) Effective  May  6,  2015,  the  number  of  shares  of  common  stock  authorized  increased  from  15,000,000  shares  to  16,000,000  shares,  and  the  Company  also  increased  its  authorized Preferred Stock from 7,000,000 shares to 8,300,000 shares. At September 30, 2015, the Company has reserved 10,300,000 shares of its authorized but unissued common stock for possible future issuance in connection with the following:   Long Term Incentive Plan Conversion of preferred stock Exercise of stock warrants

Shares 2,000,000 8,050,000 250,000

Note 7. Stock Options The  Company  accounts  for  stock­based  compensation  under  the  provisions  of  Topic  718,  Compensation –  Stock  Compensation, which  requires  the  measurement  and  recognition  of compensation expense for all share­based payment awards made to employees and non­ employee officers based on estimated fair values as of the date of grant. Compensation expense is recognized on a straight­line basis over the requisite service period. On June 25, 2014, the board of directors of the Company approved a stock­based employee compensation plan, the Long Term Incentive Plan. As of September 30, 2015, Incentive Stock Options (“ISOs”) have been granted to certain employees of Virtuix, Inc. as follows:     Grant Date   June 25, 2014  July 17, 2014  September 17, 2014  July 7, 2015  July 31, 2015  August 31, 2015  September 9, 2015 

  Shares

      375,625  $ 22,500  $ 95,625  $ 301,916  $ 14,258  $ 14,258  $ 19,258  $

Exercise Price

    0.11  0.11  0.11  0.32  0.32  0.32  0.32 

As of September 30, 2015, 336,250 of these shares were forfeited as a result of employee terminations, and 7,969 shares were vested. The Company accounts for share­based payments to non­employees, with guidance provided by Topic 505­50, Equity­Based Payments to Non­Employees. On June 25, 2014, the board of  directors  of  the  Company  granted  two  non­qualified  stock  options  (“NQSOs”)  for  a  total  of  1,181,250  shares,  with  an  exercise  price  of  $0.11  per  share,  to  certain  independent contractors of Virtuix, Inc. None of the options have vested and therefore, are not exercisable. Effective October 21, 2014, the board of directors granted two NQSOs for a total of 57,030 shares, with an exercise price of $0.11 per share, to certain advisors of Virtuix, Inc. As of September 30, 2015, 616,764 of these shares were vested. Compensation expense pertaining to ISOs of $1,239 and compensation expense of $186,936 pertaining to NQSOs was recorded as of September 30, 2015 in general and administrative expenses in the consolidated statements of operations. ­ 45 ­

Virtuix Holdings, Inc. and Subsidiaries Notes to Consolidated Interim Financial Statements   Note 8. Research and Development Expenses relating to research and development are expensed as incurred. For the six months ended September 30, 2015 and 2014, research and development consisted of the following:  

  $         $

Design expenses Game and software development expenses Hardware development expenses Prototypes Other research and development expenses  

2015  41,622  24,237  ­  56,976  1,789   124,624 

    $         $

2014    265,431  ­  1,607  12,303  179,836   459,177 

Note 9. Royalty Commitments The Company has certain royalty commitments associated with the shipment of its products for the use of licensed software and modifications together with the Company’s hardware and other software. Royalty expense is generally based on a dollar amount per unit shipped and can range from $1 per unit to $8 per unit. As of September 30, 2015 and 2014, no royalty expense has been recognized in the consolidated statements of operations. Note 10. Income Taxes Deferred taxes are recognized for temporary differences between the basis of assets and liabilities for financial statement and income tax purposes. The differences relate primarily to depreciable assets using accelerated depreciation methods for income tax purposes, share­ based compensation expense, and for net operating loss carryforwards.    

        $                     $

Deferred tax assets:                              Share­based compensation expense                              Net operating loss carryforward Long­term deferred tax liabilities:                              Property and equipment Net deferred tax assets and liabilities   Valuation allowance                                Net deferred tax asset

September 30, 2015

               63,558  $ 2,151,027          (10,318)   2,204,267          (2,204,267)          ­  $

March 31, 2015

   

   24,206  1,463,515    (13,914) 1,473,807    (1,473,807)    ­ 

The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax­planning strategies, and results of recent operations. The Company assessed the need for a valuation allowance against its net deferred tax assets and determined a full valuation allowance is required due to net operating losses for the periods ended September 30, 2015 and March 31, 2015 and cumulative losses through September 30, 2015. Therefore, valuation allowances of $2,204,267 and $1,473,807 were recorded for the periods ended September 30, 2015 and March 31, 2015, respectively. Accordingly, no provision for income taxes has been recognized for the six months ended September 30, 2015. ­ 46 ­

Virtuix Holdings, Inc. and Subsidiaries Notes to Consolidated Interim Financial Statements   Note 10. Income Taxes (continued) The Company's ability to utilize net operating loss carryforwards will depend on its ability to generate adequate future taxable income. At September 30, 2015, the Company had net operating loss carryforwards available to offset future taxable income in the amount of $6,326,550, which may be carried forward and will expire if not used between 2034 and 2036 in varying amounts. Such amounts have been fully reserved in the valuation allowance discussed above. Topic 718 provides that income tax effects of share­based payments are recognized in the financial statements for those awards that will normally result in tax deductions under existing tax  law.  Under  current  U.S.  federal  tax  law,  the  Company  receives  a  compensation  expense  deduction  related  to  NQSOs  only  when  those  options  are  exercised.  Accordingly,  the consolidated financial  statement  recognition  of  compensation  cost  for  NQSOs  creates  a  deductible  temporary  difference,  which  results  in  a  deferred  tax  asset  and  a  corresponding deferred tax benefit in the consolidated statement of operations. The Company does not recognize a tax benefit for compensation expense related to ISOs unless the underlying shares are disposed of in a disqualifying disposition. Accordingly, compensation expense related to ISOs is treated as a permanent difference for income tax purposes. Note 11. Related Party Transactions Virtuix, Inc. paid certain expenses on behalf of Virtuix Holdings. An intercompany receivable and payable is recorded in the amount of $10,963 on each respective company’s books, and the amount eliminates in the financial statement consolidation. Virtuix, Inc. paid certain expenses on behalf of VII, and an intercompany receivable and payable is recorded in the amount of $17,298. The amount eliminates in the financial statement consolidation. As  mentioned  in  Note  14,  the  Company  acquired  common  stock  of  a  foreign  subsidiary,  Virtuix  Manufacturing,  Limited  (“VML”)  in  June  2015.  The  amount  due  to  the  foreign subsidiary  is  $1,290,  which  is  recorded  as  an  intercompany  receivable  and  payable  on  each  respective  company’s  books,  and  the  amount  eliminates  in  the  financial  statement consolidation. Virtuix, Inc. paid certain expenses on behalf of VML in the amount of $89,741, and Virtuix Holdings paid certain expenses on behalf of VML in the amount of $133,149. Intercompany receivables and payables are recorded and the amounts eliminate in the financial statement consolidation. Note 12. Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As discussed in Note 2, the Company has elected to early adopt ASU 2014­ 15 and followed this guidance in assessing the going concern assumption. The  Company  is  a  business  that  has  not  commenced  planned  principal  operations,  has  not  generated  meaningful  revenues  or  profits  since  inception,  has  sustained  net  losses  of $2,146,482 and $1,641,531 for the periods ended September 30, 2015 and 2014, respectively, and has not brought its primary product to market as of September 30, 2015 or 2014. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern within one year after the date that the consolidated financial statements are issued. ­ 47 ­

Virtuix Holdings, Inc. and Subsidiaries Notes to Consolidated Interim Financial Statements   Note 12. Going Concern (continued) In making this assessment, management weighed the significance of the factors, conditions, and events considered. Management primarily based the conclusion on the inception­to­date cumulative losses, lack of operating history, lack of meaningful revenues, and the fact that the product has not completed development and readiness for market. These factors were determined to be the primary drivers of the Company’s ability to sustain its operating costs in the near term. Management also performed an analysis of interim information subsequent to year­ end and projections of future operating results, which were given less weight due to the subjective nature of projections. Management’s plans relevant to the going concern assessment included the following considerations: 1.  

2.   3.  

The  Company  will  continue  to  market  its  primary  product  and  expects  to  continue  to  realize  substantial  cash  flows  from  pre­sales  until  the  product  is  through production and ready for market. The Company believes that preselling products is generally very difficult to achieve because the Company must convince a buyer not just that they will like the product at the price point, but also to believe that the Company will ultimately produce what it intends. The Company has created significant consumer interest and brand recognition through its successful Kickstarter campaign and appearance on Shark Tank. The Company believes that its brand recognition will be further enhanced by the Company’s planned exhibition at the January 2016 Consumer Electronics Show and expected first delivery of the Company’s product by December 2015. The Company plans to complete production preparations and bring the product to market during the year ending March 31, 2016. The Company anticipates significant revenues  from  the  primary  product  once  it  is  brought  to  market.  As  of  September  30,  2015,  the  Company  has  working  prototypes  of  the  product.  The  Company anticipates  that  after  the  modest  production  schedule  necessary  to  fine­tune  the  production  process,  the  Company  will  be  able  to  increase  production  to  meet  the demand it has experienced through pre­sales and the increased demand the Company expects once the product is brought to market. The Company anticipates that mass production of the product will commence during Fiscal Year 2016. The Company will continue to raise capital from existing shareholders and 3rd parties as necessary to fund its operating needs. The Company has established a track record with regard to its ability to raise funds as needed. The existing investors have demonstrated wherewithal and willingness to fund the Company to ensure that the product is brought to market, including participating in subsequent funding rounds as available. The participation of well­known and successful investors as existing shareholders of the Company has created interest in the Company among other investors from Silicon Valley and elsewhere.

Management concluded that its plans successfully alleviate the substantial doubt to the ability of the Company to continue as a going concern within one year after the date that the consolidated financial statements are issued. No assurance can be given that the Company will be successful in these efforts. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Note 13. Commitments and Contingencies On November 20, 2013, the Company entered into a 24­month non­cancelable operating lease agreement for office space. A $12,728 deposit was paid on the lease and monthly rent payments ranged from $2,734 to $2,795 over the life of the lease. The lease commenced on January 1, 2014, but was terminated in August 2015 before its expiration date of December 31, 2015. On June 2, 2014, the Company entered into a 12­month renewal on a non­cancelable operating lease agreement for office space. The lease renewal commenced on September 1, 2014 and expired on August 31, 2015. Monthly rent payments under this agreement were $3,400. On June 25, 2015, the Company entered into a 39­month non­cancelable operating lease agreement for office space. The lease commenced on July 1, 2015 and expires on September 30, 2018, with an option to renew the lease for an additional three year period. A $48,000 deposit was paid on the lease and monthly rent payments range from $6,750 to $7,200 over the life of the lease. Future minimum lease payments under this lease agreement at September 30:        

2016 2017 2018 Total lease payments

$      

 81,000  83,700  86,400  251,100 

Rent expense was $74,085 and $39,451 for the six months ended September 30, 2015 and 2014, respectively. ­ 48 ­

Virtuix Holdings, Inc. and Subsidiaries Notes to Consolidated Interim Financial Statements   Note 14. Foreign Subsidiary As mentioned in note 11, on June 24, 2015, the Company acquired 10,000 shares of common stock of VML, a wholly­owned subsidiary. VML is a Hong Kong corporation that was formed to conduct manufacturing operations and transact business with Chinese suppliers. Note 15. Subsequent Events On October 27, 2015, 14,258 shares of ISOs were granted to an employee of Virtuix, Inc. at an exercise price of $0.32. Management has evaluated subsequent events through October 30, 2015, the date the financial statements were available to be issued. Based on this evaluation, no additional material events were identified which require adjustment or disclosure in the consolidated financial statements. ­ 49 ­

SUPPLEMENTARY INFORMATION ­ 50 ­

VIRTUIX HOLDINGS, INC. AND SUBSIDIARIES  SCHEDULE I ­ CONSOLIDATING INTERIM BALANCE SHEET  September 30, 2015       ASSETS   CURRENT ASSETS    Cash and cash equivalents    Due from related parties    Inventory    Prepaids and other current assets      TOTAL CURRENT ASSETS   NONCURRENT ASSETS    Property, plant and equipment, net    Intangibles, net    Deferred loan costs, net      TOTAL NONCURRENT ASSETS   INVESTMENT IN SUBSIDIARIES      TOTAL ASSETS   LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES    Accounts payable    Accrued expenses    Deferred revenue    Due to related party    Current portion of notes payable      Less: discount on notes payable  Current portion of notes payable, net of discount      TOTAL CURRENT LIABILITIES   LONG­TERM LIABILITIES    Notes payable, net of current portion      Less: discount on notes payable    Notes payable, net of discount      TOTAL LONG­TERM LIABILITIES      TOTAL LIABILITIES   STOCKHOLDERS' EQUITY (DEFICIT)    Preferred stock

         Virtuix Holdings,     Inc.                     $  2,254,129    133,149    ­    ­    2,387,278                ­    ­    7,671    7,671          5,123,330        $  7,518,279                    $  ­    ­    ­    12,253          387,030    (17,102)   369,928    382,181                437,945    (19,645)   418,300    418,300          800,481                      7,351 

        Virtuix     Virtuix                 Interactive I,     Manufacturing           Virtuix, Inc.     LLC     Limited     Eliminations                                                                           $  335,562  $  ­  $  11,910  $  ­    118,002    ­    1,290    (252,441)   68,671    ­          ­    162,156    ­    20,530    ­    684,391    ­    33,730    (252,441)                                                   61,754    ­    190,251    ­    59,813    13,983    ­    ­    ­    ­    ­    ­    121,567    13,983    190,251    ­                            ­    ­    ­    (5,123,330)                         $  805,958  $  13,983  $  223,981  $  (5,375,771)                                                                         $  114,633  $  ­  $  ­  $  ­    167,300    ­    ­    ­    2,066,123    ­    ­    ­    ­    17,298    222,890    (252,441)                           ­    ­    ­    ­    ­    ­    ­    ­    ­    ­    ­    ­    2,348,056    17,298    222,890    (252,441)                                                   ­    ­    ­    ­    ­    ­    ­    ­    ­    ­    ­    ­    ­    ­    ­    ­                            2,348,056    17,298    222,890    (252,441)                                                                           ­    ­    ­    ­ 

        Consolidated     Balance                     $  2,601,601    ­    68,671    182,686    2,852,958                252,005    73,796    7,671    333,472          ­        $  3,186,430                    $  114,633    167,300    2,066,123    ­          387,030    (17,102)   369,928    2,717,984                437,945    (19,645)   418,300    418,300          3,136,284                      7,351 

   Additional paid in capital­preferred stock    Common stock    Additional paid in capital­common stock    Accumulated deficit TOTAL STOCKHOLDERS' EQUITY (DEFICIT)   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

             

6,858,619  5,500  ­  (153,672) 6,717,798   

             

$

 7,518,279 

$

­  2,000  5,530,782  (7,074,880) (1,542,098)    805,958  ­ 51 ­

             

­  ­  50,012  (53,327) (3,315)  

             

$

 13,983 

$

­  1,290  ­  (199) 1,091     223,981 

             

­  (3,290) (5,120,040) ­  (5,123,330)  

             

6,858,619  5,500  460,754  (7,282,078) 50,146   

$

 (5,375,771)

$

 3,186,430 

VIRTUIX HOLDINGS, INC. AND SUBSIDIARIES  SCHEDULE II ­ CONSOLIDATING INTERIM STATEMENT OF OPERATIONS  For The Six Months Ended September 30, 2015         REVENUES   COST OF REVENUES   GROSS PROFIT   OPERATING EXPENSES Selling expense General and administrative expense Research and development expense    TOTAL OPERATING EXPENSES   LOSS FROM OPERATIONS   OTHER INCOME (EXPENSE)    Loss on disposal of assets    Interest income    Interest expense    TOTAL OTHER INCOME (EXPENSE)   NET LOSS   Add: Net loss attributable to noncontrolling interests, net of tax   NET LOSS ATTRIBUTABLE TO VIRTUIX HOLDINGS, INC.

        Virtuix     Holdings, Inc.         $  ­          ­          ­                ­    2,481    ­    2,481          (2,481)               ­    8,710    (77,499)   (68,789)         (71,270)         ­       

              Virtuix, Inc.         $  ­          ­          ­                136,336    1,779,298    124,624    2,040,258          (2,040,258)               (32,717)   ­    ­    (32,717)         (2,072,975)         ­       

  Virtuix     Interactive I,     LLC         $  ­          ­          ­                ­    2,038    ­    2,038          (2,038)               ­    ­    ­    ­          (2,038)         306       

  Virtuix     Manufacturing     Limited         $  ­          ­          ­                ­    199    ­    199          (199)               ­    ­    ­    ­          (199)         ­       

                    Consolidated     Eliminations     Balance               $  ­  $  ­                ­    ­                ­    ­                            ­    136,336    ­    1,784,016    ­    124,624    ­    2,044,976                ­    (2,044,976)                           ­    (32,717)   ­    8,710    ­    (77,499)   ­    (101,506)               ­    (2,146,482)               ­    306             

$

$

$

$

$

 (71,270)

 (2,072,975) ­ 52 ­

 (1,732)

 (199)

 ­ 

$

 (2,146,176)

VIRTUIX HOLDINGS, INC. AND SUBSIDIARIES  SCHEDULE III ­ CONSOLIDATING INTERIM BALANCE SHEET  March 31, 2015       ASSETS   CURRENT ASSETS    Cash and cash equivalents    Due from related party    Prepaids and other current assets      TOTAL CURRENT ASSETS   NONCURRENT ASSETS    Property, plant and equipment, net    Intangibles, net    Deferred loan costs, net      TOTAL NONCURRENT ASSETS   INVESTMENT IN SUBSIDIARIES   TOTAL ASSETS   LIABILITIES AND STOCKHOLDERS' EQUITY   CURRENT LIABILITIES    Accounts payable    Accrued expenses    Deferred revenue    Due to related party   Current portion of notes payable    Less: discount on notes payable Current portion of notes payable, net of discount  TOTAL CURRENT LIABILITIES   LONG­TERM LIABILITIES    Notes payable, net of current portion      Less: discount on notes payable    Notes payable, net of discount      TOTAL LONG­TERM LIABILITIES   TOTAL LIABILITIES   STOCKHOLDERS' EQUITY (DEFICIT)      Preferred stock    Additional paid in capital ­ preferred stock    Common stock    Additional paid in capital ­ common stock    Accumulated deficit TOTAL STOCKHOLDERS' EQUITY (DEFICIT)   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

  Virtuix Holdings,     Inc.                           $  3,703,161          ­    3,703,161                ­    ­    9,669    9,669          3,207,758        $  6,920,588                          $  ­    ­    ­    70,963          365,328    (17,599)   347,729    418,692                634,672    (24,932)   609,740    609,740          1,028,432                      6,604    5,962,456    5,500    ­    (82,404)   5,892,156        $  6,920,588  ­ 53 ­

        Virtuix, Inc.                           $  173,496    28,261    47,498    249,255                100,291    50,373    ­    150,664          ­        $  399,919                          $  28,501    76,274    1,866,722    ­          ­    ­    ­    1,971,497                ­    ­    ­    ­          1,971,497                      ­    ­    2,000    3,428,325    (5,001,903)   (1,571,578)       $  399,919 

  Interactive I,     LLC                           $  ­    ­    ­    ­                ­    16,021    ­    16,021          ­        $  16,021                          $  ­    ­    ­    17,298          ­    ­    ­    17,298                ­    ­    ­    ­          17,298                      ­    ­    ­    50,012    (51,289)   (1,277)       $  16,021 

        Eliminations                           $  ­    (28,261)   ­    (28,261)               ­    ­    ­    ­          (3,207,758)       $  (3,236,019)                         $  ­    ­    ­    (28,261)         ­    ­    ­    (28,261)               ­    ­    ­    ­          (28,261)                     ­    ­    (2,000)   (3,205,758)   ­    (3,207,758)       $  (3,236,019)

  Consolidated     Balance                           $  3,876,657    ­    47,498    3,924,155                100,291    66,394    9,669    176,354          ­        $  4,100,509                          $  28,501    76,274    1,866,722    60,000          365,328    (17,599)   347,729    2,379,226                634,672    (24,932)   609,740    609,740          2,988,966                      6,604    5,962,456    5,500    272,579    (5,135,596)   1,111,543        $  4,100,509 

VIRTUIX HOLDINGS, INC. AND SUBSIDIARIES  SCHEDULE IV ­ CONSOLIDATING INTERIM STATEMENT OF OPERATIONS  For Six Months Ended September 30, 2014         REVENUES   COST OF REVENUES   GROSS PROFIT   OPERATING EXPENSES Selling expense General and administrative expense Research and development expense    TOTAL OPERATING EXPENSES   LOSS FROM OPERATIONS   OTHER INCOME (EXPENSE)    Interest income    Interest expense    TOTAL OTHER INCOME (EXPENSE)   NET LOSS   Add: Net loss attributable to noncontrolling interests, net of tax   NET LOSS ATTRIBUTABLE TO VIRTUIX HOLDINGS, INC.

        Virtuix     Holdings, Inc.         $  ­          ­          ­                ­    502    ­    502          (502)               963    (22,842)   (21,879)         (22,381)         ­        $  (22,381) ­ 54 ­

              Virtuix, Inc.         $  ­          ­          ­                122,371    1,035,650    458,677    1,616,698          (1,616,698)               ­    ­    ­          (1,616,698)         ­        $  (1,616,698)

  Virtuix     Interactive I,     LLC         $  ­          ­          ­                ­    1,952    500    2,452          (2,452)               ­    ­    ­          (2,452)         368        $  (2,084)

                    Consolidated     Eliminations     Balance               $  ­  $  ­                ­    ­                ­    ­                            ­    122,371    ­    1,038,104    ­    459,177    ­    1,619,652                ­    (1,619,652)                           ­    963    ­    (22,842)   ­    (21,879)               ­    (1,641,531)               ­    368              $  ­  $  (1,641,163)

FINANCIAL STATEMENTS FOR THE FISCAL YEARS ENDING MARCH 31, 2015 AND MARCH 31, 2014 The consolidated balance sheets of Virtuix Holdings, Inc. and Subsidiaries for the fiscal year ended March 31, 2015 and for the period from April 15, 2013 (inception) to March 31, 2014, and the consolidated statements of operations, changes in stockholders' equity, and cash flows of Virtuix Holdings, Inc. and Subsidiaries for each such period have been included in  this  Offering  Circular  with  the  Independent  Auditor's  Report  of  Artesian  CPA,  LLC,  independent  certified  public  accountants,  and  upon  the  authority  of  said  firm  as  experts  in accounting and auditing. ­ 55 ­

Virtuix Holdings, Inc. and Subsidiaries Consolidated Financial Statements and Independent Auditor’s Report  March 31, 2015 and 2014

­ 56 ­

Virtuix Holdings, Inc. and Subsidiaries TABLE OF CONTENTS     INDEPENDENT AUDITOR'S REPORT   CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE PERIODS ENDED MARCH 31, 2015 AND 2014:    Consolidated Balance Sheets      Consolidated Statements of Operations      Consolidated Statements of Changes in Stockholders' Equity      Consolidated Statements of Cash Flows      Notes to the Consolidated Financial Statements      Supplementary Information:              Consolidating Balance Sheet – March 31, 2015              Consolidating Statement of Operations – March 31, 2015              Consolidating Balance Sheet – March 31, 2014              Consolidating Statement of Operations – March 31, 2014 ­ 57 ­

         Page   58–59       60–61   62   63   64   65–78       79   80   81   82

To the Stockholders of: Virtuix Holdings, Inc. and Subsidiaries  Austin, Texas INDEPENDENT AUDITOR’S REPORT Report on the Consolidated Financial Statements We have audited the accompanying consolidated financial statements of Virtuix Holdings, Inc. (a corporation) and Subsidiaries, which comprise the consolidated balance sheets as of March 31, 2015 and 2014, and the related consolidated statements of operations, changes in stockholders’ equity, and cash flows for the year ended March 31, 2015 and the period from April 15, 2013 (inception) to March 31, 2014, and the related notes to the consolidated financial statements. Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our  responsibility  is  to  express  an  opinion  on  these  consolidated  financial  statements  based  on  our  audit.  We  conducted  our  audit  in  accordance  with  auditing  standards  generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s  judgment,  including  the  assessment  of  the  risks  of  material  misstatement  of  the  consolidated  financial  statements,  whether  due  to  fraud  or  error.  In  making  those  risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the  overall  presentation  of  the  consolidated  financial  statements.  We  believe  that  the  audit  evidence  we  have  obtained  is  sufficient  and  appropriate  to  provide  a  basis  for  our  audit opinion. Artesian CPA, LLC  303.823.3220  ArtesianCPA.com ­ 58 ­

Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Virtuix Holdings, Inc. and Subsidiaries, as of March 31, 2015 and 2014, and the results of its operations and its cash flows for year ended March 31, 2015 and the period from April 15, 2013 (inception) to March 31, 2014, in accordance with accounting principles generally accepted in the United States of America. Other Matters Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The accompanying supplementary information, comprised of the consolidating  balance  sheets  as  of  March  31,  2015  and  2014  and  the  consolidating  statements  of  operations  for  the  year  ended  March  31,  2015  and  the  period  from  April  15,  2013 (inception) to March 31, 2014, are presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole. /s/ Artesian CPA, LLC Denver, Colorado  September 15, 2015 Artesian CPA, LLC 303.823.3220 ArtesianCPA.com ­ 59 ­

Virtuix Holdings, Inc. and Subsidiaries Consolidated Balance Sheets As of March 31, 2015 and 2014 ASSETS       CURRENT ASSETS    Cash and cash equivalents, including restricted cash of $27,752 at March 31, 2015 and 2014      Prepaids and other current assets          TOTAL CURRENT ASSETS   NONCURRENT ASSETS    Property and equipment          Less: accumulated depreciation    Net property and equipment      Intangibles          Less: accumulated amortization    Net intangibles      Deferred tax asset (net of valuation allowance of $1,473,807 and $295,500, respectively)      Deferred loan costs          Less: accumulated amortization    Net deferred loan costs            TOTAL NONCURRENT ASSETS      TOTAL ASSETS

        $                                                         $

  2015

              3,876,657 $       47,498    3,924,155                124,962    (24,671)   100,291          77,696    (11,302)   66,394          ­       12,000    (2,331)   9,669          176,354           4,100,509  $

See Independent Auditor’s Report and accompanying notes, which are an integral part of these consolidated financial statements. ­60­

  2014   388,627   15,228  403,855      61,021  (3,387) 57,634    12,118  (1,421) 10,697    ­   ­  ­  ­    68,331     472,186 

     

Virtuix Holdings, Inc. and Subsidiaries Consolidated Balance Sheets As of March 31, 2015 and 2014 LIABILITIES AND STOCKHOLDERS' EQUITY    CURRENT LIABILITIES    Accounts payable    Accrued expenses    Deferred revenue ­ current portion    Due to related party    Convertible promissory notes    Current portion of notes payable          Less: discount on notes payable    Current portion of notes payable, net of discount          TOTAL CURRENT LIABILITIES   LONG­TERM LIABILITIES    Deferred revenue ­ long­term portion    Notes payable, net of current portion          Less: discount on notes payable    Notes payable, net of discount          TOTAL LONG­TERM LIABILITIES      TOTAL LIABILITIES   STOCKHOLDERS' EQUITY (DEFICIT)    Preferred stock, $.001 par value, 7,000,000 shares authorized, 6,604,283 and 0 shares issued and outstanding at March 31, 2015 and 2014, respectively    Additional paid­in capital ­ preferred stock    Common stock, $.001 par value, 15,000,000 shares authorized, 5,500,000 shares issued and outstanding at March 31, 2015 and 2014    Additional paid­in capital ­ common stock    Accumulated Deficit        TOTAL STOCKHOLDERS' EQUITY (DEFICIT)      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

      $                                              

2015

           28,501  $ 76,274    1,866,722    60,000    ­    365,328    (17,599)   347,729         2,379,226               ­    634,672    (24,932)   609,740         609,740         2,988,966              

   

2014    ­  67,122  ­  175,000  400,000  ­  ­  ­     642,122       1,251,854  ­  ­  ­     1,251,854     1,893,976      

 

6,604 5,962,456 

 

­ ­ 

        $

5,500 272,579  (5,135,596) 1,111,543      4,100,509 

        $

5,500 183,132  (1,610,422) (1,421,790)     472,186 

See Independent Auditor’s Report and accompanying notes, which are an integral part of these consolidated financial statements. ­61­

Virtuix Holdings, Inc. and Subsidiaries Consolidated Statements of Operations For the year ended March 31, 2015 and the period from April 15, 2013 (inception) to March 31, 2014       NET SALES   COST OF GOODS SOLD   GROSS PROFIT   OPERATING EXPENSES    Selling expenses    General and administrative expenses    Research and development expenses   TOTAL OPERATING EXPENSES   OTHER INCOME (EXPENSE)    Interest income    Interest expense   TOTAL OTHER INCOME (EXPENSE)   LOSS BEFORE INCOME TAXES   PROVISION FOR INCOME TAX    State tax expense   TOTAL PROVISION FOR INCOME TAX   NET LOSS   Add: Net loss attributable to noncontrolling interests, net of tax   NET LOSS ATTRIBUTABLE TO VIRTUIX HOLDINGS, INC.   Weighted average common shares outstanding:    Basic and Diluted Net loss per share:    Basic and Diluted

      $                                                         $       $             $

Year Ended March 31, 2015  

             ­  $      ­         ­               301,820    2,221,986    926,023         3,449,829               6,791    (79,464)        (72,673)        (3,522,502)              2,672         2,672          (3,525,174) $      852          (3,524,322) $            5,500,000           (0.64) $

See Independent Auditor’s Report and accompanying notes, which are an integral part of these consolidated financial statements. ­62­

Period Ended   March 31, 2014        80,026     67,071     12,955       230,634  936,613  452,326     1,619,573       ­  (2,740)    (2,740)    (1,609,358)      1,064     1,064      (1,610,422)    6,842      (1,603,580)      916,667     (1.75)

Virtuix Holdings, Inc. and Subsidiaries Consolidated Statements of Changes in Stockholders’ Equity For the year ended March 31, 2015 and the period from April 15, 2013 (inception) to March 31, 2014           Balance at April 15, 2013 (inception)    Issuance of common stock    Net loss Balance at March 31, 2014    Issuance of preferred stock    Convertible promissory notes       converted to preferred stock    Related party notes converted        to preferred stock    Preferred stock warrants    Stock­based compensation    Net loss Balance at March 31, 2015

                 

Common Stock                         Shares     Amount ­ $ ­ 5,500,000    5,500  ­    ­  5,500,000    5,500  ­    ­  ­

       

­ ­  ­  ­  5,500,000 

         

          Additional   Paid­In   Capital $ ­   183,132    ­    183,132    ­ 

­       $

­ ­  ­  ­   5,500 

         

                 

­       $

­ ­  89,447  ­   272,579 

Preferred Stock                         Shares     Amount ­ $ ­ ­    ­  ­    ­  ­    ­  5,885,533    5,885  500,000

       

218,750 ­  ­  ­  6,604,283 

         

          Additional   Paid­In   Capital $ ­   ­    ­    ­    5,335,377 

500       $

219 ­  ­  ­   6,604 

         

              Accumulated   Deficit $ ­   ­    (1,603,580)   (1,603,580)   ­ 

399,500       $

174,781 52,798  ­  ­   5,962,456 

         

      Deficit   Attributable to   Noncontrolling   Interest $ ­   ­    (6,842)   (6,842)   ­ 

­       $

­ ­  ­  (3,524,322)  (5,127,902)

                 

          $

­       $

See Independent Auditor’s Report and accompanying notes, which are an integral part of these consolidated financial statements. ­63­

­ ­  ­  (852)  (7,694)

        Total ­ 188,632  (1,610,422) (1,421,790) 5,341,262  400,000

      $

175,000 52,798  89,447  (3,525,174)  1,111,543 

         

Virtuix Holdings, Inc. and Subsidiaries Consolidated Statements of Cash Flows For the year ended March 31, 2015 and the period from April 15, 2013 (inception) to March 31, 2014     CASH FLOWS FROM OPERATING ACTIVITIES   Net loss Adjustments to reconcile net loss to net cash used in operating activities:        Depreciation and amortization expense        Amortization of discount on notes payable        Stock­based compensation        (Increase) decrease in assets:            Prepaid expenses and other current assets        Increase (decrease) in liabilities:            Accounts payable            Accrued expenses            Deferred revenue        CASH USED IN OPERATING ACTIVITIES   CASH FLOWS FROM INVESTING ACTIVITIES        Cash paid for purchases of fixed assets, including intangibles        CASH USED IN INVESTING ACTIVITIES   CASH FLOWS FROM FINANCING ACTIVITIES        Issuance of common stock        Issuance of preferred stock        Offering costs        Proceeds from short term notes with related parties        Proceeds from convertible promissory notes        Proceeds from long­term notes payable        Loan costs        CASH PROVIDED BY FINANCING ACTIVITIES   NET INCREASE IN CASH   CASH AT BEGINNING OF PERIOD   CASH AT END OF PERIOD   SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:        Interest        State taxes   SUPPLEMENTAL DISCLOSURE OF NON­CASH FINANCING ACTIVITIES:        Convertible promissory notes converted to preferred stock        Related party notes converted to preferred stock        Issuance of preferred stock warrants

            $                                                                             $     $ $     $ $ $

Year Ended March 31, 2015

                     (3,525,174) $ 33,496  10,266  89,447    (32,270)   28,501  9,153  614,868  (2,771,713)     (129,519) (129,519)     ­  5,421,997  (80,735) 60,000  ­  1,000,000  (12,000) 6,389,262    3,488,030    388,627     3,876,657       69,198   2,672     400,000   175,000   52,798 

See Independent Auditor’s Report and accompanying notes, which are an integral part of these consolidated financial statements. ­64­

                                                                                $         $ $     $ $ $

Period Ended March 31, 2014      (1,610,422) 4,808  ­  ­    (15,228)   ­  67,122  1,251,854  (301,866)     (73,139) (73,139)     188,632  ­    175,000  400,000  ­    763,632    388,627    ­     388,627       ­   1,064       ­   ­   ­ 

   

Virtuix Holdings, Inc. and Subsidiaries Notes to the Consolidated Financial Statements As of March 31, 2015 and 2014 and for the year ended March 31, 2015 and period from April 15, 2013 (inception) to March 31, 2014 Note 1. Nature of Operations Virtuix Holdings Inc. (Virtuix Holdings or the Company) was formed in December 20, 2013 as a Delaware Corporation. The Company has a wholly­owned subsidiary, Virtuix, Inc., a Delaware  corporation  formed  on  April  15,  2013  as  a  Texas  Limited  Liability  Company  and  subsequently  converted  to  a  Delaware  corporation  on  November  22,  2013.  Virtuix,  Inc. develops virtual reality hardware and software, and its main product is the Omni, the first virtual reality interface to move freely and naturally in video games and virtual worlds. Virtuix Interactive I, LLC (VII), a Texas Limited Liability Company, was formed on January 6, 2014, and on that date, the Company became the majority member, with 85% of the controlling financial interest. VII was formed to create interactive virtual reality content for use with the Omni. As of March 31, 2015 and 2014, the Company has not commenced planned principal operations nor generated significant earned revenue. The Company’s activities since inception have consisted of research and development of its main product, capital raising, and sales efforts to pre­sell its main product. Once the Company commences its planned principal operations of producing and selling the Omni and other products it may develop, it will incur significant additional expenses in conjunction with producing and selling products commercially. The Company is dependent upon additional capital resources for the commencement of its planned principal operations and is subject to significant risks and uncertainties; including failing to secure additional funding to operationalize the Company’s planned operations or failing to profitably produce and sell its products. Note 2. Summary of Significant Accounting Policies Basis of Presentation The  accounting  and  reporting  policies  of  the  Company  conform  to  accounting  principles  generally  accepted  in  the  United  States  of  America  (GAAP)  and  presentation  requirements under Article 8 of Regulation S­X of the rules and regulations of the Securities and Exchange Commission (SEC). The consolidated financial statements are presented using the accrual basis of accounting. Therefore, revenues are recognized when earned and expenses are recognized when incurred. The Company has elected to adopt early application of Accounting Standards Update No. 2014­10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements; the Company does not present or disclose inception­to­date information and other remaining disclosure requirements of Topic 915. The Company has adopted a fiscal year ending March 31st of each year. Management's Estimates Preparing the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and  liabilities  and  disclosure  of  contingent  assets  and  liabilities  at  the  date  of  the  consolidated  financial  statements  and  the  reported  amounts  of  revenues  and  expenses  during  the reporting period. Actual results could differ from those estimates. See accompanying Independent Auditor’s Report  ­65­

Virtuix Holdings, Inc. and Subsidiaries Notes to the Consolidated Financial Statements As of March 31, 2015 and 2014 and for the year ended March 31, 2015 and period from April 15, 2013 (inception) to March 31, 2014 Principles of Consolidation The accompanying consolidated financial statements include the accounts of Virtuix Holdings, Inc. as well as its subsidiaries required to be consolidated under accounting principles generally accepted in the United States of America (GAAP). Significant intercompany accounts and transactions have been eliminated upon consolidation. Revenue Recognition The Company recognizes revenue when the earnings process is complete. This generally occurs when products are shipped to the customer in accordance with the sales agreement or purchase order, ownership and risk of loss pass to the customer, collectability is reasonably assured, and pricing is fixed or determinable. The Company’s shipping terms are generally F.O.B. shipping point, where title is transferred and revenue is recognized when the products are shipped to customers. Noncontrolling Interests In accordance with the guidance under FASB ASC 810, Noncontrolling Interests, in consolidated financial statements, references to net income and stockholders’ equity attributable to the Company do not include noncontrolling interests, which are reported separately. Cash and Cash Equivalents The Company considers deposits that can be redeemed on demand and investments that have original maturities of less than three months, when purchased, to be cash equivalents. As of March 31, 2015 and 2014, the Company’s cash and cash equivalents were deposited primarily in two and three financial institutions, respectively, which at times, exceed the federally insured limits. The Company has $27,752 of its cash balances restricted as of March 31, 2015 and 2014. Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight­line method for financial statement purposes. The Company uses other depreciation methods (generally accelerated) for tax purposes where appropriate. The estimated useful lives for significant property and equipment categories are as follows: Computer Equipment Furniture and Fixtures Machinery and Equipment Trade Show Equipment See accompanying Independent Auditor’s Report  ­66­

5 years 7 years 5 years 5 – 7 years

Virtuix Holdings, Inc. and Subsidiaries Notes to the Consolidated Financial Statements As of March 31, 2015 and 2014 and for the year ended March 31, 2015 and period from April 15, 2013 (inception) to March 31, 2014 Fair Value Measurements The Company’s financial instruments consist primarily of cash, accounts payable, accrued expenses and notes payable. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short­term maturities and approximate market interest rates of these instruments. The estimated fair value is not necessarily indicative of the amounts the Company would realize in a current market exchange or from future earnings or cash flows. The Company adopted FASB ASC 820­10, Fair Value Measurements and Disclosures,  which  defines  fair  value,  establishes  a  framework  for  measuring  fair  value,  and  expands  disclosures  about  fair  value  measurements.  The  standard  provides  a  consistent definition of fair value which focuses on an exit price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard also prioritizes, within the measurement of fair value, the use of market­based information over entity specific information and establishes a three­level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. The three­level hierarchy for fair value measurements is defined as follows: •       Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets •       Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability other than quoted prices, either directly or indirectly including inputs in markets that are not considered to be active •       Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Intangibles The  Company’s  intangible  assets  represent  software,  trademarks,  and  a  website,  which  are  amortized  on  a  straight­line  basis  over  the  years  expected  to  be  benefited.  The  costs  of developing any intangibles for internal use are expensed as incurred. Software Development Costs The Company accounts for software development costs in accordance with several accounting pronouncements, including FASB ASC 730, Research and Development, FASB ASC 350­ 40, Internal­Use Software, FASB 985­20, Costs of Computer Software to be Sold, Leased, or Marketed and FASB ASC 350­50, Website Development Costs. See accompanying Independent Auditor’s Report  ­67­

Virtuix Holdings, Inc. and Subsidiaries Notes to the Consolidated Financial Statements As of March 31, 2015 and 2014 and for the year ended March 31, 2015 and period from April 15, 2013 (inception) to March 31, 2014 Costs  incurred  during  the  period  of  planning  and  design,  prior  to  the  period  determining  technological  feasibility,  for  all  software  developed  for  use  internal  and  external,  has  been charged to operations in the period incurred as research and development costs. Additionally, costs incurred after determination of readiness for market have been expensed as research and development. The Company capitalizes certain costs in the development of its proprietary software (computer software to be sold, leased or licensed) for the period after technological feasibility was determined and prior to marketing and initial sales. Website development costs have been capitalized, under the same criteria as marketed software. Deferred Revenue Deferred revenue represents revenues collected but not earned as of March 31, 2015 and 2014. This is primarily composed of revenue for pre­orders of the Omni that have not been completed by the end of the financial reporting period. Net Loss Per Share Net loss per share is computed by dividing net loss by the weighted­average number of shares of common stock outstanding during the period, excluding shares subject to redemption or forfeiture. The Company presents basic and diluted earnings per share. Basic and diluted earnings per share reflect the actual weighted average of common shares issued and outstanding during the period. No dilutive effects were considered since the Company is in a net loss position as of March 31, 2015 and 2014. As a result, diluted loss per share is the same as basic loss per share for the periods presented. Offering Costs The Company complies with the requirements of FASB ASC 340­10­S99­1 with regards to offering costs. Prior to the completion of an offering,  offering  costs  are  capitalized.  The deferred  offering  costs  are  charged  to  stockholders’  equity  upon  the  completion  of  an  offering  or  to  expense  if  the  offering  is  not  completed.  The  Company  anticipates  significant offering costs in connection with the Proposed Offering discussed in Note 14. Federal Income Taxes FASB ASC 740­10, Accounting for Uncertainty in Income Taxes, clarifies the accounting for income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. ASC 740­10 also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure, and transition. For the periods ended March 31, 2015 and 2014, no uncertain tax positions were identified. The Company recognizes tax related interest and penalties, if any, as a component of income tax expense. The federal tax returns are subject to examination by the Internal Revenue Service, generally for three years after they are filed. State tax returns are subject to examination generally for five years after they are filed. See accompanying Independent Auditor’s Report  ­68­

Virtuix Holdings, Inc. and Subsidiaries Notes to the Consolidated Financial Statements As of March 31, 2015 and 2014 and for the year ended March 31, 2015 and period from April 15, 2013 (inception) to March 31, 2014 The Company’s less than wholly­owned subsidiary, VII is not subject to federal income taxes, and such taxes are the responsibility of the respective members. Recent Accounting Pronouncements In  June  2014,  the  FASB  issued  Accounting  Standards  Update  (ASU)  2014­10  which  eliminated  the  requirements  for  development  stage  entities  to  (1)  present  inception­to­date information in the statements of income, cash flows, and members’ equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. This ASU is effective for annual reporting periods beginning after December 15, 2014, and interim periods beginning after December 15, 2015. Early application is  permitted  for  any  annual  reporting period  or  interim  period  for  which  the  entity’s  financial  statements  have  not yet  been  issued.  Upon  adoption,  entities  will  no  longer  present  or disclose any information required by Topic 915. The Company has early adopted the new standard effective as of the inception date. In August 2014, the FASB issued ASU 2014­15 on “Presentation of Financial Statements Going Concern (Subtopic 205­40) – Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. Currently, there is no guidance in U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments in this update provide such guidance. In doing so, the amendments are intended to reduce diversity  in  the  timing  and  content  of  footnote  disclosures.  The  amendments  require  management  to  assess  an  entity’s  ability  to  continue  as  a  going  concern  by  incorporating  and expanding  upon  certain  principles  that  are  currently  in  U.S.  auditing  standards.  Specifically,  the  amendments  (1)  provide  a  definition  of  the  term  substantial  doubt,  (2)  require  an evaluation  every  reporting  period  including  interim  periods,  (3)  provide  principles  for  considering  the  mitigating  effect  of  management’s  plans,  (4)  require  certain  disclosures  when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this update are effective for public and nonpublic entities for annual periods ending after December 15, 2016. Early adoption is permitted. The Company has elected to early adopt this pronouncement, as described in Note 12. Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying consolidated financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. See accompanying Independent Auditor’s Report  ­69­

Virtuix Holdings, Inc. and Subsidiaries Notes to the Consolidated Financial Statements As of March 31, 2015 and 2014 and for the year ended March 31, 2015 and period from April 15, 2013 (inception) to March 31, 2014 Note 3. Property and Equipment Property and equipment consist of the following as of March 31:    

    $           $

Computer Equipment Furniture and Equipment Machinery and Equipment Office Equipment   Less Accumulated Depreciation  

2015  

         27,444  $ 13,060    83,410    1,048    124,962    (24,671)    100,291  $

2014  

     9,495  13,060  37,418  1,048  61,021  (3,387)  57,634 

Depreciation expense was $21,284 and $3,387 for the periods ended March 31, 2015 and 2014, respectively. Note 4. Intangibles Intangible assets consist of the following as of March 31:     Software and game design Trademarks Website   Less Accumulated Amortization  

    $         $

2015        25,704  14,055  37,937  77,696  (11,302)  66,394 

    $         $

2014  

   

 5,704  3,055  3,359  12,118  (1,421)  10,697 

Amortization expense was $9,881 and $1,421 for the periods ended March 31, 2015 and 2014, respectively. Note 5. Notes Payable On April 1, 2014, the Company carried three convertible promissory notes amounting to $400,000. Interest was to be accrued at 8.00% until the notes matured on September 30, 2014. At  any  time  before  maturity  of  the  notes,  the  entire  outstanding  principal  plus  accrued  and  unpaid  interest  could  be  converted  to  shares  of  the  Company’s  capital  stock  when  the Company issued and sold shares of its capital stock and the aggregate proceeds were equal to or exceeded $750,000. See accompanying Independent Auditor’s Report  ­70­

Virtuix Holdings, Inc. and Subsidiaries Notes to the Consolidated Financial Statements As of March 31, 2015 and 2014 and for the year ended March 31, 2015 and period from April 15, 2013 (inception) to March 31, 2014 Also on April 1, 2014, the Company carried two promissory notes in the amount of $100,000 and $75,000 with a related party, payable in semi­annual installments at 1.00% interest. The notes were to mature on December 27, 2014 and January 28, 2015, respectively. As described in Note 6, all the aforementioned notes were converted to shares of Series Seed Preferred Stock on April 22, 2014. Effective  September  4,  2014,  the  Company  entered  into  an  agreement  to  obtain  financing  with  Western  Technology  Investment  (WTI).  The  initial  commitment  of  $1,000,000  was received on September 5, 2014. Terms of the note are interest­only payments in six monthly installments at .979% of the amount borrowed, and thirty months of principal and interest payments beginning April 1, 2015 in the amount of $38,255, due in September 2017. The note bears a fixed rate of interest of 11.75% and is secured by all assets of the Company. In the terms of the agreement, the Company granted a warrant to WTI, to acquire shares in the most recent or next round of preferred stock, at WTI’s option, at the lower of $0.80 per share or the lowest price per share at which the Company has sold any shares of its Series Seed Preferred Stock (as of any determination date and subject to any adjustments for splits, dividends, or distributions since the date of such sale). The aggregate exercise price will be $125,000. The warrant will be exercisable until its expiration date of December 31, 2024. Upon  a  change  of  control  or  initial  public  offering  of  the  Company’s capital  stock,  the  warrant  shall  automatically  be  exchanged,  for  no  consideration  from  WTI,  for  the  maximum number of shares of the Company’s stock for which the warrant would have otherwise been exercisable. According  to  guidance  of  FASB  ASC  470­20,  Debt, the warrant  is  recorded  in  equity  as  additional  paid  in  capital  –  preferred  stock,  at  fair  value  as  of  the  date  of  issuance,  and  in liabilities, as a contra account, called discount on note payable. The fair value at the issuance date was determined to be $52,798 using the Black­Scholes model with the following assumptions. No adjustment to the fair value was made to account for the down­round protection clause in the agreement as management determined this adjustment would be difficult to estimate and immaterial to these consolidated financial statements. Exercise Price Dividend Yield Volatility Risk­free Rate Years to Expiration

$        

 0.80  0.00%  32.40%  0.80%  10 

The  discount  is  amortized  over  the  life  of  the  note  using  the  effective  interest  method.  The  carrying  value  of  the  note  at  March  31,  2015  was  $957,469  ($1,000,000  principal,  less discount of $42,531), and $10,266 of discount amortization was included in interest expense. See accompanying Independent Auditor’s Report  ­71­

Virtuix Holdings, Inc. and Subsidiaries Notes to the Consolidated Financial Statements As of March 31, 2015 and 2014 and for the year ended March 31, 2015 and period from April 15, 2013 (inception) to March 31, 2014 Future maturities of long­term debt are as follows as of March 31: 2016 2017 Thereafter    

$  365,328    410,635    224,037       $  1,000,000 

Note 6. Capital Stock Prior to April 7, 2014, the Company’s capital stock consisted of 10,000,000 authorized shares of $0.001 par common stock, of which 5,500,000 shares were issued and outstanding. Effective  April  7,  2014,  the  Company  amended  its  certificate  of  incorporation  to  include  two  classes  of  stock.  The  number  of  shares  of  common  stock  authorized  increased  from 10,000,000 shares to 12,500,000 shares and the Company also authorized 3,750,000 shares of $.001 par value Series Seed Preferred Stock (the "Preferred Stock"). All  convertible  promissory  notes  mentioned  in  Note  5  were  converted  to  shares  of  Preferred  Stock  by  dividing  the  principal  by  $0.80,  resulting  in  an  issuance  of  500,000  shares  of Preferred  Stock  on  April  22,  2014.  Accrued  interest  in  the  amount  of  $4,713  was  paid  directly  to  investors.  The  two  promissory  notes  mentioned  in  Note  5  were  exchanged  for convertible promissory notes then converted into 218,750 shares of the Preferred Stock on April 30, 2014. This is a related party transaction. The remaining 3,031,250 shares of the Preferred Stock were issued at $0.80 per share to investors between April 17, 2014 and May 19, 2014. Each holder of the Preferred Stock will have the right to convert the shares at any time, at the option of the holder, into shares of the common stock of the Company at a rate determined by dividing the number of shares held by the price paid per share. Effective August 7, 2014, the number of shares of common stock authorized increased from 12,500,000 shares to 12,750,000 shares, and the Company  also  increased  its  authorized Preferred Stock from 3,750,000 shares to 4,000,000 shares. Effective December 4, 2014, the number of shares of common stock authorized increased from 12,750,000 shares to 15,000,000 shares, and the Company also increased its authorized Preferred Stock from 4,000,000 shares to 7,000,000 shares. The Company issued 2,854,283 shares of Preferred Stock at $1.05 per share between November 24, 2014 and February 24, 2015. Each holder of the Preferred Stock will have the right to convert the shares at any time, at the option of the holder, into shares of the common stock of the Company at a 1:1 conversion rate. At March 31, 2015, the Company has reserved 9,000,000 shares of its authorized but unissued common stock for possible future issuance in connection with the following: See accompanying Independent Auditor’s Report  ­72­

Virtuix Holdings, Inc. and Subsidiaries Notes to the Consolidated Financial Statements As of March 31, 2015 and 2014 and for the year ended March 31, 2015 and period from April 15, 2013 (inception) to March 31, 2014 Shares Long Term Incentive Plan Conversion of preferred stock Exercise of stock warrants

  2,000,000 6,750,000 250,000

Note 7. Stock Options The Company accounts for stock­based compensation under the provisions of FASB ASC 718, Compensation – Stock Compensation, which requires the measurement and recognition of compensation expense for all share­based payment awards made to employees and non­employee officers based on estimated fair values as of the date of grant. Compensation expense is recognized on a straight­line basis over the requisite service period. On June 25, 2014, the board of directors of the Company approved a stock­based employee compensation plan, the Long Term Incentive Plan. Incentive Stock Options (ISOs) were granted to certain employees of Virtuix, Inc. as follows:   Grant Date June 25, 2014 July 17, 2014 September 17, 2014

    Shares  375,625  22,500  95,625

         

  Exercise   Price $0.11 $0.11 $0.11

         

As of March 31, 2015, 111,250 shares were forfeited as a result of employee terminations, and 56,250 shares were vested. The Company accounts for share­based payments to non­employees, with guidance provided by FASB ASC 505­50, Equity­Based Payments to Non­Employees. On June 25, 2014, the board of directors of the Company granted two non­qualified stock options (NQSOs) for a total of 1,181,250 shares, with an exercise price of $0.11 per share, to certain independent contractors of Virtuix, Inc. None of the options were vested and therefore, were not exercisable. Effective October 21, 2014, the board of directors granted two NQSOs for a total of 57,030 shares, with an exercise price of $0.11 per share, to certain advisors of Virtuix, Inc. As of March 31, 2015, 11,881 of these shares were vested. Compensation expense pertaining to ISOs of $18,252 and compensation  expense  of  $71,195  pertaining  to  NQSOs  was  recorded  as  of  March  31,  2015 in general and administrative expenses in the consolidated statement of operations. Note 8. Research and Development Expenses relating to research and development are expensed as incurred. For the periods ended March 31, 2015 and 2014, research and development consisted of the following: See accompanying Independent Auditor’s Report  ­73­

Virtuix Holdings, Inc. and Subsidiaries Notes to the Consolidated Financial Statements As of March 31, 2015 and 2014 and for the year ended March 31, 2015 and period from April 15, 2013 (inception) to March 31, 2014  

  $         $

Design expenses Game and software development expenses Hardware development expenses Prototypes Other research and development expenses  

2015      247,971  $ 261,216    29,866    182,637    204,333     926,023  $

2014    164,494  103,412  17,758  114,714  51,948   452,326 

Note 9. Royalty Commitments The Company has certain royalty commitments associated with the shipment of its products for the use of licensed software and modifications together with the Company’s hardware and other software. Royalty expense is generally based on a dollar amount per unit shipped and can range from $1 per unit to $8 per unit. As of March 31, 2015 and 2014, no royalty expense has been recognized in the consolidated statement of operations. Note 10. Income Taxes Deferred taxes are recognized for temporary differences between the basis of assets and liabilities for financial statement and income tax purposes. The differences relate primarily to depreciable assets using accelerated depreciation methods for income tax purposes, share­based compensation expense, and for net operating loss carryforwards. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax­planning strategies, and results of recent operations. If it is determined that the Company would be able to realize its deferred tax assets in the future in excess of its net recorded amount, an adjustment to the deferred tax asset valuation allowance would be recorded, which would reduce the provision for income taxes. Deferred tax assets and liabilities as of March 31, 2015 and 2014 are as follows:   Deferred tax assets:        Share­based compensation expense        Net operating loss carryforward Long­term deferred tax liabilities:        Property and equipment Net deferred tax assets and liabilities Valuation allowance Net deferred tax asset See accompanying Independent Auditor’s Report  ­74­

     $            $

2015    24,206  1,463,515    (13,914) 1,473,807  (1,473,807)  ­ 

       $            $

2014    ­  298,485    (2,985) 295,500  (295,500)  ­ 

 

Virtuix Holdings, Inc. and Subsidiaries Notes to the Consolidated Financial Statements As of March 31, 2015 and 2014 and for the year ended March 31, 2015 and period from April 15, 2013 (inception) to March 31, 2014 The Company assessed the need for a valuation allowance against its net deferred tax assets and determined a full valuation allowance is required due to net operating losses for the periods ended March 31, 2015 and 2014 and cumulative losses from inception through March 31, 2015. Therefore, valuation allowances of $1,473,807 and $295,500 were recorded for the periods ended March 31, 2015 and 2014, respectively. Accordingly, no provision for income taxes has been recognized for the periods ended March 31, 2015 and 2014. The Company's ability to utilize net operating loss carryforwards will depend on its ability to generate adequate future taxable income. At March 31, 2015 and 2014, the Company had net operating loss carryforwards available to offset future taxable income in the amount of $4,304,455 and $849,145, respectively, which may be carried forward and will expire if not used between 2034 and 2035 in varying amounts. Such amounts have been fully reserved in the valuation allowance discussed above. ASC 718 provides that income tax effects of share­based payments are recognized in the financial statements for those awards that will normally result in tax deductions under existing tax  law.  Under  current  U.S.  federal  tax  law,  the  Company  receives  a  compensation  expense  deduction  related  to  NQSOs  only  when  those  options  are  exercised.  Accordingly,  the consolidated financial statement recognition of compensation cost for NQSOs creates a deductible temporary difference, which results in a deferred tax asset. The Company does not recognize a tax benefit for compensation expense related to ISOs unless the underlying shares are disposed of in a disqualifying disposition. Accordingly, compensation expense related to ISOs is treated as a permanent difference for income tax purposes. Note 11. Related Party Transactions Virtuix, Inc. paid certain expenses on behalf of Virtuix Holdings. An intercompany receivable and payable is recorded in the amount of $10,963 on each respective company’s books at March 31, 2015, and the amount eliminates in the financial statement consolidation. Virtuix, Inc. paid certain expenses on behalf of VII, and an intercompany receivable and payable is recorded in the amount of $17,298 and $20,000 on each respective company’s books at March 31, 2015 and 2014, respectively. The amounts eliminate in the financial statement consolidation. During the year ended March 31, 2015, the Company received cash advances from a related party totaling $60,000. As mentioned in Note 5, during the period ended March 31, 2014, the Company  entered  into  two  promissory  notes  totaling  $175,000  with  a  related  party.  Amounts  due  to  the  related  party  at  March  31,  2015  and  2014,  were  $60,000  and  $175,000, respectively. Note 12. Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As discussed in Note 2, the Company has elected to early adopt ASU 2014­15 and followed this guidance in assessing the going concern assumption. See accompanying Independent Auditor’s Report  ­75­

Virtuix Holdings, Inc. and Subsidiaries Notes to the Consolidated Financial Statements As of March 31, 2015 and 2014 and for the year ended March 31, 2015 and period from April 15, 2013 (inception) to March 31, 2014 The  Company  is  a  business  that  has  not  commenced  planned  principal  operations,  has  not  generated  meaningful  revenues  or  profits  since  inception,  has  sustained  net  losses  of $3,524,322 and $1,603,580 for the periods ended March 31, 2015 and 2014, respectively, and has not brought its primary product to market as of March 31, 2015 or 2014. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern within one year after the date that the consolidated financial statements are issued. In making this assessment, management weighed the significance of the factors, conditions, and events considered. Management primarily based the conclusion on the inception­to­date cumulative losses, lack of operating history, lack of meaningful revenues, and the fact that the product has not completed development and readiness for market. These factors were determined to be the primary drivers of the Company’s ability to sustain its operating costs in the near term. Management also performed an analysis of interim information subsequent to year­end and projections of future operating results, which were given less weight due to the subjective nature of projections. Management’s plans relevant to the going concern assessment included the following considerations:      

1. 2. 3.

The  Company  will  continue  to  market  its  primary  product  and  expects  to  continue  to  realize  substantial  cash  flows  from  pre­sales  until  the  product  is  through production and ready for market. The Company plans to complete production preparations and bring the product to market during the year ending March 31, 2016. The Company anticipates significant revenues from the primary product once it is brought to market. The Company will continue to raise capital from existing shareholders and 3rd  parties as necessary to fund its operating needs.  The  Company  has  raised  additional capital subsequent to March 31, 2015 and intends to raise additional funds during the year ending March 31, 2016, as described in Note14.

Management concluded that its plans successfully alleviate the substantial doubt to the ability of the Company to continue as a going concern within one year after the date that the consolidated financial statements are issued. No assurance can be given that the Company will be successful in these efforts. The  consolidated  financial  statements  do  not  include  any  adjustments  relating  to  the  recoverability  and  classification  of  recorded  asset  amounts  or  the  amounts  and  classification  of liabilities that might be necessary should the Company be unable to continue as a going concern. Note 13. Commitments and Contingencies On November 20, 2013, the Company entered into a 24­month non­cancelable operating lease agreement for office space. The lease commenced on  January  1,  2014  and  expires  on December 31, 2015. A $12,728 deposit was paid on the lease and monthly rent payments range from $2,734 to $2,795 over the life of the lease. On June 2, 2014, the Company entered into a 12­month renewal on a non­cancelable operating lease agreement for office space. The lease renewal commenced on September 1, 2014 and expires on August 31, 2015. Monthly rent payments under this agreement are $3,400. See accompanying Independent Auditor’s Report  ­76­

Virtuix Holdings, Inc. and Subsidiaries Notes to the Consolidated Financial Statements As of March 31, 2015 and 2014 and for the year ended March 31, 2015 and period from April 15, 2013 (inception) to March 31, 2014 Rent expense was $88,363 and $37,475 for the periods ended March 31, 2015 and 2014, respectively. Future minimum lease payments for operating leases as of March 31, 2015 were $42,155, all due within one year. Note 14. Subsequent Events Effective  May  6,  2015,  the  number  of  shares  of  common  stock  authorized  increased  from  15,000,000  shares  to  16,000,000  shares,  and  the  Company  also  increased  its  authorized Preferred Stock from 7,000,000 shares to 8,300,000 shares. On June 24, 2015, the Company acquired 10,000 shares of common stock of Virtuix Manufacturing Limited (VML), a wholly­owned subsidiary. VML is a Hong Kong corporation that was formed to conduct manufacturing operations and transact business with Chinese suppliers. On June 25, 2015, the Company entered into a 39­month non­cancelable operating lease agreement for office space. The lease commenced on July 1, 2015 and expires on September 30, 2018, with an option to renew the lease for an additional three year period. A $48,000 deposit was paid on the lease and monthly rent payments range from $6,750 to $7,200 over the life of the lease. Future minimum lease payments under this lease agreement are as follows: Year Ended March 31, 2016 2017 2018 2019 Total Lease Payments

     $  60,750    82,350    85,050    43,200  $  271,350 

Between July 7, 2015, and September 9, 2015, 349,690 shares of ISOs were granted to certain employees of Virtuix, Inc. at an exercise price of $0.32. The Company issued subordinated unsecured convertible promissory notes amounting to $879,701 between May 2015, and July 2015. Interest is to be accrued at 6% until the notes mature on September 30, 2015. If, on or before the maturity date, the Company issues or sells shares of any preferred stock of the Company for cash in a single transaction or series of related  transactions  in  which  the  gross  proceeds  to  the  Company  equal  at  least  $1,500,000,  the  entire  outstanding  principal  plus  accrued  and  unpaid  interest  of  the  notes  will automatically be converted into either (i) the same class or series of preferred stock as are issued, at the same price per share at which such stock is issued and sold by the Company or (ii) shares of preferred stock of the Company at a price per share of $1.20. If, on or before the maturity date, the Company consummates a deemed liquidation, the entire outstanding principal plus accrued and unpaid interest of the notes may be converted into shares of preferred stock at a price per share equal to $1.20. If the above have not occurred, then on the maturity date, the entire outstanding principal plus accrued and unpaid interest of the notes will be converted into shares of preferred stock at a purchase price equal to $1.20 per share. See accompanying Independent Auditor’s Report  ­77­

Virtuix Holdings, Inc. and Subsidiaries Notes to the Consolidated Financial Statements As of March 31, 2015 and 2014 and for the year ended March 31, 2015 and period from April 15, 2013 (inception) to March 31, 2014 The Company is in the process of pursuing an offering (“Proposed Offering”). The Proposed Offering calls for the Company to offer for sale under Regulation A $15,000,000 of its Series A Preferred Stock at a to­be­determined price between $2.00 and $4.00 per share. Sales of these securities are expected to commence during the fiscal year ending March 31, 2016. The Company expects to incur costs of approximately $80,000 related to the Proposed Offering. There is presently no secondary market for Company’s stock and therefore the Company cannot guarantee that its securities will ever be tradeable on an exchange or have any other liquidity. This offering is not yet finalized nor qualified by the Securities Exchange Commission (SEC) and is subject to changes. These financial statements should not be relied upon as a basis for determining the terms of the Proposed Offering as this information may not be current or accurate relative to the final terms of the Proposed Offering. Management  has  evaluated  subsequent  events  through  September  15,  2015,  the  date  the  consolidated  financial  statements  were  available  to  be  issued.  Based  on  this  evaluation,  no additional material events were identified which require adjustment or disclosure in these consolidated financial statements. See accompanying Independent Auditor’s Report  ­78­

SUPPLEMENTARY INFORMATION

Virtuix Holdings, Inc. and Subsidiaries Consolidating Balance Sheet (Supplementary Information) As of March 31, 2015       ASSETS   CURRENT ASSETS  Cash and cash equivalents  Due from related parties  Prepaids and other current assets    TOTAL CURRENT ASSETS   NONCURRENT ASSETS  Property, plant and equipment, net  Intangibles, net  Deferred costs, net    TOTAL NONCURRENT ASSETS   INVESTMENT IN SUBSIDIARIES   TOTAL ASSETS   LIABILITIES AND STOCKHOLDERS' EQUITY   CURRENT LIABILITIES  Accounts payable  Accrued expenses  Deferred revenue  Due to related party    Current portion of notes payable    Less: discount on notes payable  Current portion of notes payable, net of discount      TOTAL CURRENT LIABILITIES LONG­TERM LIABILITIES    Notes payable, net of current portion    Less: discount on notes payable  Notes payable, net of discount        TOTAL LONG­TERM LIABILITIES    TOTAL LIABILITIES   STOCKHOLDERS' EQUITY (DEFICIT)    Preferred stock  Additional paid in capital­preferred stock  Common stock  Additional paid in capital­common stock  Accumulated deficit TOTAL STOCKHOLDERS' EQUITY (DEFICIT)   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

        Virtuix     Holdings, Inc.                     $  3,703,161    ­    ­    3,703,161                ­    ­    9,669    9,669          3,207,758        $  6,920,588                          $  ­    ­    ­    70,963          365,328    (17,599)   347,729          418,692                634,672    (24,932)   609,740          609,740         1,028,432                      6,604    5,962,456    5,500    ­    (82,404)   5,892,156        $  6,920,588 

              Virtuix, Inc.                     $  173,496    28,261    47,498    249,255                100,291    50,373    ­    150,664          ­        $  399,919                          $  28,501    76,274    1,866,722    ­          ­    ­    ­          1,971,497                ­    ­    ­          ­         1,971,497                      ­    ­    2,000    3,428,325    (5,001,903)   (1,571,578)       $  399,919 

See accompanying Independent Auditor’s report  ­79­

  Virtuix     Interactive I,     LLC                     $  ­    ­    ­    ­                ­    16,021    ­    16,021          ­        $  16,021                          $  ­    ­    ­    17,298          ­    ­    ­          17,298                ­    ­    ­          ­         17,298                      ­    ­    ­    50,012    (51,289)   (1,277)       $  16,021 

              Eliminations                     $  ­    (28,261)   ­    (28,261)               ­    ­    ­    ­          (3,207,758)       $  (3,236,019)                         $  ­    ­    ­    (28,261)         ­    ­    ­          (28,261)               ­    ­    ­          ­         (28,261)                     ­    ­    (2,000)   (3,205,758)   ­    (3,207,758)       $  (3,236,019)

        Consolidated     Balance                     $  3,876,657    ­    47,498    3,924,155                100,291    66,394    9,669    176,354          ­        $  4,100,509                          $  28,501    76,274    1,866,722    60,000          365,328    (17,599)   347,729          2,379,226                634,672    (24,932)   609,740          609,740         2,988,966                      6,604    5,962,456    5,500    272,579    (5,135,596)   1,111,543        $  4,100,509 

Virtuix Holdings, Inc. and Subsidiaries Consolidating Statement of Operations (Supplementary Information) For the year ended March 31, 2015       REVENUES   COST OF GOODS SOLD   GROSS PROFIT   OPERATING EXPENSES Selling expense General and administrative expense Research and development expense    TOTAL OPERATING EXPENSES   LOSS FROM OPERATIONS   OTHER INCOME (EXPENSE)    Interest income    Interest expense    TOTAL OTHER INCOME (EXPENSE)   LOSS BEFORE INCOME TAXES   PROVISION FOR INCOME TAX    Federal tax benefit    State tax expense    TOTAL PROVISION FOR INCOME TAX   NET LOSS     Add: Net loss attributable to noncontrolling interests, net of tax   NET LOSS ATTRIBUTABLE TO VIRTUIX HOLDINGS, INC.

        Virtuix     Holdings, Inc.   $ ­          ­          ­                ­    3,286    ­    3,286          (3,286)               6,791    (79,464)   (72,673)         (75,959)               ­    2,672    2,672          (78,631)               ­        $  (78,631)

              Virtuix, Inc.   $ ­          ­          ­                301,820    2,213,521    925,523    3,440,864          (3,440,864)               ­    ­    ­          (3,440,864)               ­    ­    ­          (3,440,864)               ­        $  (3,440,864)

See accompanying Independent Auditor’s report  ­80­

  Virtuix     Interactive I,     LLC   $ ­          ­          ­                ­    5,179    500    5,679          (5,679)               ­    ­    ­          (5,679)               ­    ­    ­          (5,679)               852        $  (4,827)

                    Consolidated     Eliminations     Balance   $ ­  $ ­                ­    ­                ­    ­                            ­    301,820    ­    2,221,986    ­    926,023    ­    3,449,829                ­    (3,449,829)                           ­    6,791    ­    (79,464)   ­    (72,673)               ­    (3,522,502)                           ­    ­    ­    2,672    ­    2,672                ­    (3,525,174)                           ­    852              $  ­ $    (3,524,322)

Virtuix Holdings, Inc. and Subsidiaries Consolidating Balance Sheet (Supplementary Information) As of March 31, 2014       ASSETS CURRENT ASSETS  Cash and cash equivalents  Due from related party  Prepaids and other current assets    TOTAL ASSETS   NONCURRENT ASSETS  Property, plant and equipment, net  Intangibles, net    TOTAL NONCURRENT ASSETS   INVESTMENT IN SUBSIDIARIES   TOTAL ASSETS     LIABILITIES AND STOCKHOLDERS' EQUITY   CURRENT LIABILITIES  Accrued expenses    Due to related party  Convertible promissory notes    TOTAL CURRENT LIABILITIES   LONG­TERM LIABILITIES  Deferred Revenues      TOTAL LONG­TERM LIABILITIES    TOTAL LIABILITIES   STOCKHOLDERS' EQUITY (DEFICIT)    Common stock  Additional paid in capital  Accumulated deficit TOTAL STOCKHOLDERS' EQUITY (DEFICIT)   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    

        Virtuix     Holdings, Inc.               $ 174,468    ­    ­    174,468                ­    ­    ­          405,000        $  579,468                                $  2,740          175,000    400,000    577,740                ­    ­          577,740                      5,500    ­    (3,772)   1,728        $  579,468          ­ 

              Virtuix, Inc.               $ 189,769    20,000    15,228    224,997                57,634    10,697    68,331          ­        $  293,328                                $  64,382          ­    ­    64,382                1,251,854    1,251,854          1,316,236                      2,000    536,132    (1,561,040)   (1,022,908)       $  293,328          ­ 

See accompanying Independent Auditor’s report  ­81­

  Virtuix     Interactive I,     LLC               $ 24,390    ­    ­    24,390                ­    ­    ­          ­        $  24,390                                $  ­          20,000    ­    20,000                ­    ­          20,000                      ­    50,000    (45,610)   4,390        $  24,390          ­ 

              Eliminations               $ ­    (20,000)   ­    (20,000)               ­    ­    ­          (405,000)       $  (425,000)                               $  ­          (20,000)   ­    (20,000)               ­    ­          (20,000)                     (2,000)   (403,000)   ­    (405,000)       $  (425,000)         ­ 

        Consolidated     Balance               $ 388,627    ­    15,228    403,855                57,634    10,697    68,331          ­        $  472,186                                $  67,122          175,000    400,000    642,122                1,251,854    1,251,854          1,893,976                      5,500    183,132    (1,610,422)   (1,421,790)       $  472,186          ­ 

Virtuix Holdings, Inc. and Subsidiaries Consolidating Statement of Operations (Supplementary Information) For the year ended March 31, 2014       REVENUES   COST OF GOODS SOLD   GROSS PROFIT   OPERATING EXPENSES Selling expense General and administrative expense Research and development expense  TOTAL OPERATING EXPENSES   LOSS FROM OPERATIONS   OTHER EXPENSE  Interest expense  TOTAL OTHER EXPENSE   LOSS BEFORE INCOME TAXES   PROVISION FOR INCOME TAX  State tax expense  TOTAL PROVISION FOR INCOME TAX   NET LOSS   Add: Net loss attributable to noncontrolling interests, net of tax   NET LOSS ATTRIBUTABLE TO VIRTUIX HOLDINGS, INC.

   

    Virtuix    Holdings, Inc.   $ ­         ­         ­               ­    500    ­    500         (500)              (2,740)   (2,740)        (3,240)              532    532         (3,772)         ­       $ (3,772)

              Virtuix, Inc.   $  80,026         67,071         12,955               230,634    936,113    406,716    1,573,463         (1,560,508)              ­    ­         (1,560,508)              532    532         (1,561,040)         ­       $  (1,561,040)

See accompanying Independent Auditor’s report  ­82­

  Virtuix     Interactive I,     LLC   $  ­         ­         ­               ­    ­    45,610    45,610         (45,610)              ­    ­         (45,610)              ­    ­         (45,610)         6,842       $  (38,768)

                    Consolidated     Eliminations     Balance   $  ­  $  80,026              ­    67,071              ­    12,955                          ­    230,634    ­    936,613    ­    452,326    ­    1,619,573              ­    (1,606,618)                         ­    (2,740)   ­    (2,740)             ­    (1,609,358)                         ­    1,064    ­    1,064              ­    (1,610,422)               ­    6,842            $  ­  $  (1,603,580)

INDEX TO EXHIBITS 1. Issuer Agreement with SI Securities, LLC 2.1. Third Amended and Restated Certificate of Incorporation 2.2. Bylaws** 3.1. Amended and Restated Investors' Rights Agreement 3.2. Amended and Restated Right of First Refusal Agreement 3.3 Voting Agreement 4. Form of Subscription Agreement 11.1 Consent of Auditing Accountant, Artesian, CPA, LLC 12. Attorney opinion on legality of the offering 13. Testing the waters materials 15.1. Image ­ Omni view 1** 15.2. Image ­ Omni view 2** 15.3. Image ­ Omni Action Shot 1** 15.4 Draft offering statement previously submitted pursuant to Rule 252(d) (incorporated by reference)** 15.5 Draft amended offering statement previously submitted pursuant to Rule 252(d) (incorporated by reference)** 15.6. Draft amended offering statement previously submitted pursuant to Rule 252(d) (incorporated by reference)** 15.7 Correspondence previously submitted pursuant to Rule 252(d)** 15.8 Correspondence previously submitted pursuant to Rule 252(d)** ** Previously filed. ­ 83 ­ SIGNATURES Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1­A and has duly caused this Offering Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Austin, State of Texas, on March 10, 2016. Virtuix Holdings Inc. By      

/s/ Jan Goetgeluk   Jan Goetgeluk, Chief Executive Officer of Virtuix Holdings Inc.

This Offering Statement has been signed by the following persons in the capacities and on the dates indicated. /s/ Jan Goetgeluk  Jan Goetgeluk, Chief Executive Officer and Sole Director  Date: March 10, 2016 ­ 84 ­

SUBSCRIPTION AGREEMENT THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK. THIS INVESTMENT IS SUITABLE ONLY FOR PERSONS WHO CAN BEAR THE ECONOMIC RISK FOR AN INDEFINITE PERIOD OF TIME AND WHO CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. FURTHERMORE, INVESTORS MUST UNDERSTAND THAT SUCH INVESTMENT IS ILLIQUID AND IS EXPECTED TO CONTINUE TO BE ILLIQUID FOR AN INDEFINITE PERIOD OF TIME. NO PUBLIC MARKET EXISTS FOR THE SECURITIES, AND NO PUBLIC MARKET IS EXPECTED TO DEVELOP FOLLOWING THIS OFFERING. THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES OR BLUE SKY LAWS AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND STATE SECURITIES OR BLUE SKY LAWS. ALTHOUGH AN OFFERING STATEMENT HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE “SEC”), THAT OFFERING STATEMENT DOES NOT INCLUDE THE SAME INFORMATION THAT WOULD BE INCLUDED IN A REGISTRATION STATEMENT UNDER THE ACT. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON THE MERITS OF THIS OFFERING OR THE ADEQUACY OR ACCURACY OF THE SUBSCRIPTION AGREEMENT OR ANY OTHER MATERIALS OR INFORMATION MADE AVAILABLE TO INVESTOR IN CONNECTION WITH THIS OFFERING, OVER THE WEB-BASED PLATFORM MAINTAINED BY SEEDINVEST TECHNOLOGY, LLC (THE “PLATFORM”) OR THROUGH SI SECURITIES, LLC (THE “BROKER”). ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL. THE SECURITIES CANNOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE SECURITIES ACT. IN ADDITION, THE SECURITIES CANNOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH APPLICABLE STATE SECURITIES OR “BLUE SKY” LAWS. INVESTORS WHO ARE NOT “ACCREDITED INVESTORS” (AS THAT TERM IS DEFINED IN SECTION 501 OF REGULATION D PROMULGATED UNDER THE SECURITIES ACT) ARE SUBJECT TO LIMITATIONS ON THE AMOUNT THEY MAY INVEST, AS SET OUT IN SECTION 4(g). THE COMPANY IS RELYING ON THE REPRESENTATIONS AND WARRANTIES SET FORTH BY EACH INVESTOR IN THIS SUBSCRIPTION AGREEMENT AND THE OTHER INFORMATION PROVIDED BY INVESTOR IN CONNECTION WITH THIS OFFERING TO DETERMINE THE APPLICABILITY TO THIS OFFERING OF EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

1

PROSPECTIVE INVESTORS MAY NOT TREAT THE CONTENTS OF THE SUBSCRIPTION AGREEMENT, THE OFFERING CIRCULAR OR ANY OF THE OTHER MATERIALS AVAILIBLE ON THE PLATFORM OR PROVIDED BY THE COMPANY AND/OR BROKER (COLLECTIVELY, THE “OFFERING MATERIALS”), OR ANY PRIOR OR SUBSEQUENT COMMUNICATIONS FROM THE COMPANY OR ANY OF ITS OFFICERS, EMPLOYEES OR AGENTS (INCLUDING “TESTING THE WATERS” MATERIALS) AS INVESTMENT, LEGAL OR TAX ADVICE. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE COMPANY AND THE TERMS OF THIS OFFERING, INCLUDING THE MERITS AND THE RISKS INVOLVED. EACH PROSPECTIVE INVESTOR SHOULD CONSULT THE INVESTOR’S OWN COUNSEL, ACCOUNTANTS AND OTHER PROFESSIONAL ADVISORS AS TO INVESTMENT, LEGAL, TAX AND OTHER RELATED MATTERS CONCERNING THE INVESTOR’S PROPOSED INVESTMENT. THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARDLOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS. THE COMPANY MAY NOT BE OFFERING THE SECURITIES IN EVERY STATE. THE OFFERING MATERIALS DO NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY STATE OR JURISDICTION IN WHICH THE SECURITIES ARE NOT BEING OFFERED. THE INFORMATION PRESENTED IN THE OFFERING MATERIALS WAS PREPARED BY THE COMPANY SOLELY FOR THE USE BY PROSPECTIVE INVESTORS IN CONNECTION WITH THIS OFFERING. NO REPRESENTATIONS OR WARRANTIES ARE MADE AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED IN ANY OFFERING MATERIALS, AND NOTHING CONTAINED IN THE OFFERING MATERIALS IS OR SHOULD BE RELIED UPON AS A PROMISE OR REPRESENTATION AS TO THE FUTURE PERFORMANCE OF THE COMPANY. THE COMPANY RESERVES THE RIGHT IN ITS SOLE DISCRETION AND FOR ANY REASON WHATSOEVER TO MODIFY, AMEND AND/OR WITHDRAW ALL OR A PORTION OF THE OFFERING AND/OR ACCEPT OR REJECT IN WHOLE OR IN PART 2

ANY PROSPECTIVE INVESTMENT IN THE SECURITIES OR TO ALLOT TO ANY PROSPECTIVE INVESTOR LESS THAN THE AMOUNT OF SECURITIES SUCH INVESTOR DESIRES TO PURCHASE. EXCEPT AS OTHERWISE INDICATED, THE OFFERING MATERIALS SPEAK AS OF THEIR DATE. NEITHER THE DELIVERY NOR THE PURCHASE OF THE SECURITIES SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE THAT DATE. March 22, 2016

To: Virtuix Holdings Inc. 1826 Kramer Lane, Suite H Austin, Texas 78758 Ladies and Gentlemen: 1.

Subscription.

(a) The Investor hereby irrevocably subscribes for and agrees to purchase shares (the “Shares”) of Series A Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock”), of Virtuix Holdings Inc., a Delaware corporation (the “Company”), at a purchase price of $2.332 per share of Series A Preferred Stock (the “Per Security Price”), rounded down to the nearest whole share based on Investor’s subscription amount, upon the terms and conditions set forth herein. The purchase price of each Share is payable in the manner provided in Section 2(a) below. The Shares being subscribed for under this Subscription Agreement and the Common Stock issuable upon the conversion of such Shares are sometimes referred to herein as the “Securities.” (b) Investor understands that the Shares are being offered pursuant to the Offering Circular dated March 22, 2016 and its exhibits (the “Offering Circular”) as filed with the Securities and Exchange Commission (the “SEC”). By subscribing to the Offering, Investor acknowledges that Investor has received and reviewed a copy of the Offering Circular Statement and any other information required by Investor to make an investment decision with respect to the Shares. (c) This Subscription may be accepted or rejected in whole or in part, at any time prior to the Termination Date (as hereinafter defined), by the Company at its sole discretion. In addition, the Company, at its sole discretion, may allocate to Investor only a portion of the number of the Shares that Investor has subscribed to purchase hereunder. The Company will notify Investor whether this subscription is accepted (whether in whole or in part) or rejected. If Investor’s subscription is rejected, Investor’s payment (or portion thereof if partially rejected) will be returned to Investor without interest and all of Investor’s obligations hereunder shall terminate. (d) The aggregate number of shares of Series A Preferred that may be sold by the Company in this offering shall not exceed 6,432,247 shares (the “Maximum Offering”). The Company may accept subscriptions until July 31, 2016, unless otherwise extended by the Company 3

in its sole discretion in accordance with applicable SEC regulations for such additional period as may be required to sell the Maximum Units (the “Termination Date”). The Company may elect at any time to close all or any portion of this offering on various dates at or prior to the Termination Date (each a “Closing”). (e) In the event of rejection of this subscription in its entirety, or in the event the sale of the Shares (or any portion thereof) to Investor is not consummated for any reason, this Subscription Agreement shall have no force or effect, except for Section 5 hereof, which shall remain in force and effect. (f) The terms of this Subscription Agreement shall be binding upon Investor and its transferees, heirs, successors and assigns (collectively, “Transferees”); provided that for any such transfer to be deemed effective, the Transferee shall have executed and delivered to the Company in advance an instrument in form acceptable to the Company in its sole discretion, pursuant to which the proposed Transferee shall be acknowledge, agree, and be bound by the representations and warranties of Investor, terms of this Subscription Agreement, and the Company consents to the transfer in its sole discretion. 2. Joinder to Investment Agreements. By subscribing to the Offering and executing this Subscription Agreement, Investor (and, if Investor is purchasing the Shares subscribed for hereby in a fiduciary capacity, the person or persons for whom Investor is so purchasing) hereby joins as a party that is designated as an “Investor” under each of : (i) the Amended and Restated Investors’ Rights Agreement dated as of March 10, 2016 (the “Investor Rights Agreement”), (ii) the Amended and Restated Right of First Refusal Agreement dated as of March 10, 2016, (the “First Refusal Agreement”), and (iii) the Voting Agreement dated as of March 10, 2016 (the “Voting Agreement”) in each case as entered into by and among Virtuix Holdings Inc., a Delaware corporation (the “Company”), the investors in the Company’s Series Seed Preferred Stock, Series 2 Seed Preferred Stock and Series A Preferred, and certain other stockholders of the Company. The Investor Rights Agreement, First Refusal Agreement and Voting Agreement collectively are referred to herein as the “Investment Agreements”. Any notice required or permitted to be given to Investor under any of the Investment Agreements shall be given to Investor at the address provided with Investor’s subscription. Investor confirms that Investor has reviewed the Investment Agreements and will be bound by the terms thereof as a party who is designated as an “Investor” thereunder. 3.

Purchase Procedure.

(a) Payment. The purchase price for the Shares shall be paid simultaneously with Investors subscription. Investor shall deliver payment for the aggregate purchase price of the Securities by ACH electronic transfer or by wire transfer to an account designated by the Company. (b) Escrow Arrangements. Payment for the Securities by Investor shall be received by The Bryn Mawr Trust Company of Delaware (the “Escrow Agent”) from Investor by transfer of immediately available funds via wire or ACH prior to the applicable Closing in the amount of Investor’s subscription using the instructions below. Upon such Closing, the Escrow Agent shall release such funds to the Company. Investor shall receive notice and evidence of the digital entry of the number of the Securities owned by Investor reflected in their investor account. Bank Name Address

Bryn Mawr Trust Company 801 Lancaster Ave, Bryn Mawr PA 19010

4

ABA No. Account Number Account Name FFC TEL Email

031908485 069-6964 Trust Funds SeedInvest – Virtuix; ATT: R. Eaddy (302) 798-1792 [email protected]

4. Representations and Warranties of the Company. The Company represents and warrants to Investor that the following representations and warranties are true and complete in all material respects as of the date of each Closing: (a) Organization and Standing. The Company is a corporation duly formed, validly existing and in good standing under the laws of the State of Delaware. The Company has all requisite power and authority to own and operate its properties and assets, to execute and deliver this Subscription Agreement, the Securities and any other agreements or instruments required hereunder. The Company is duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect on the Company or its business. (b) Issuance of the Securities. The issuance, sale and delivery of the Shares in accordance with this Subscription Agreement have been duly authorized by all necessary corporate action on the part of the Company. The Shares, when issued, sold and delivered against payment therefor in accordance with the provisions of this Subscription Agreement, will be duly and validly issued, fully paid and non-assessable. (c) Authority for Agreement. The acceptance by the Company of this Subscription Agreement and of Investor’s joinder as a party to each of the Investment Agreements, and the consummation of the transactions contemplated hereby and thereby, are within the Company’s powers and have been duly authorized by all necessary corporate action on the part of the Company. Upon the Company’s acceptance of this Subscription Agreement, each of this Subscription Agreement and the Investment Agreements, shall constitute a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies and (iii) with respect to provisions relating to indemnification and contribution, as limited by considerations of public policy and by federal or state securities laws. (d) No Filings. Assuming the accuracy of Investor’s representations and warranties set forth in Section 4 hereof, no order, license, consent, authorization or approval of, or exemption by, or action by or in respect of, or notice to, or filing or registration with, any governmental body, agency or official is required by or with respect to the Company in connection with the acceptance, delivery and performance by the Company of this Subscription Agreement except (i) for such filings as may be required under Regulation A or under any applicable state securities laws, (ii) for such other filings and approvals as have been made or obtained, or (iii) where the failure to obtain any such order, license, consent, authorization, approval or exemption or give any such notice or make any filing or registration would not have a material adverse effect on the ability of the Company to perform its obligations hereunder. 5

(e) Capitalization. The outstanding shares of Common Stock, Series Seed Preferred Stock, Series 2 Seed Preferred Stock, options, warrants and other securities of the Company immediately prior to the initial Closing is as set forth in “Security Ownership” in the Offering Circular. Except as set forth in the Offering Circular, there are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal), or agreements of any kind (oral or written) for the purchase or acquisition from the Company of any of its securities. (f) Financial Statements. Complete copies of the Company’s financial statements, consisting of the statement of financial position of the Company as of its fiscal year end on March 31, 2014 and March 31, 2015, and as of its fiscal quarter end on September 30, 2015, and the related consolidated statements of income and cash flows for the respective periods then ended (collectively, the “Financial Statements”), have been made available to Investor and appear in the Offering Circular. The Financial Statements are based on the books and records of the Company and fairly present the financial condition of the Company as of the respective dates they were prepared and the results of the operations and cash flows of the Company for the respective periods indicated. Artesian CPA, LLC, which has audited the Financial Statements at March 31, 2014 and March 31, 2015, and for each fiscal year then ended, is an independent accounting firm within the rules and regulations adopted by the SEC. (g) Proceeds. The Company shall use the proceeds from the issuance and sale of the shares of Series A Preferred sold in the offering as set forth in “Use of Proceeds” in the Offering Circular. (h) Litigation. Except as disclosed in the Offering Circular, there is no pending action, suit, proceeding, arbitration, mediation, complaint, claim, charge or investigation before any court, arbitrator, mediator or governmental body, or to the Company’s knowledge, currently threatened in writing (a) against the Company or (b) against any consultant, officer, manager, director or key employee of the Company arising out of his or her consulting, employment or board relationship with the Company or that could otherwise materially impact the Company. 5. Representations and Warranties of Investor. By subscribing to the Offering, Investor (and, if Investor is purchasing the Shares subscribed for hereby in a fiduciary capacity, the person or persons for whom Investor is so purchasing) represents and warrants, which representations and warranties are true and complete in all material respects as of the date of each Closing: (a) Requisite Power and Authority. Investor has all necessary power and authority under all applicable provisions of law to subscribe to the Offering, to execute and deliver this Subscription Agreement, to join as a party to each of the Investment Agreements, and to carry out the provisions of such respective agreements. All action on Investor’s part required for the lawful subscription to the offering have been or will be effectively taken prior to the Closing. Upon subscribing to the Offering, this Subscription Agreement and each of the Investment Agreements will be valid and binding obligations of Investor, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights and (ii) as limited by general principles of equity that restrict the availability of equitable remedies. (b) Company Information. Investor has had an opportunity to discuss the Company’s business, management and financial affairs with directors, officers and management of the Company and has had the opportunity to review the Company’s operations and facilities. Investor 6

has also had the opportunity to ask questions of and receive answers from the Company and its management regarding the terms and conditions of this investment. Investor acknowledges that except as set forth herein, no representations or warranties have been made to Investor, or to Investor’s advisors or representative, by the Company or others with respect to the business or prospects of the Company or its financial condition. (c) Investment Experience. Investor has sufficient experience in financial and business matters to be capable of utilizing such information to evaluate the merits and risks of Investor’s investment in the Shares, and to make an informed decision relating thereto; or Investor has utilized the services of a purchaser representative and together they have sufficient experience in financial and business matters that they are capable of utilizing such information to evaluate the merits and risks of Investor’s investment in the Shares, and to make an informed decision relating thereto. (d) Investor Determination of Suitability. Investor has evaluated the risks of an investment in the Shares, including those described in the section of the Offering Circular captioned “Risk Factors”, and has determined that the investment is suitable for Investor. Investor has adequate financial resources for an investment of this character, and at this time Investor could bear a complete loss of Investor’s investment in the Company. (e) No Registration. Investor understands that the Shares are not being registered under the Securities Act of 1933, as amended (the "Securities Act"), on the ground that the issuance thereof is exempt under Regulation A of Section 3(b) of the Securities Act, and that reliance on such exemption is predicated in part on the truth and accuracy of Investor's representations and warranties, and those of the other purchasers of the shares of Series A Preferred in the offering. Investor further understands that the Shares are not being registered under the securities laws of any states on the basis that the issuance thereof is exempt as an offer and sale not involving a registerable public offering in such state, since the Shares are "covered securities" under the National Securities Market Improvement Act of 1996. Investor covenants not to sell, transfer or otherwise dispose of any Shares unless such Shares have been registered under the Securities Act and under applicable state securities laws, or exemptions from such registration requirements are available. (f) Illiquidity and Continued Economic Risk. Investor acknowledges and agrees that there is no ready public market for the Securities and that there is no guarantee that a market for their resale will ever exist. The Company has no obligation to list any of the Securities on any market or take any steps (including registration under the Securities Act or the Securities Exchange Act of 1934, as amended) with respect to facilitating trading or resale of the Securities. Investor must bear the economic risk of this investment indefinitely and Investor acknowledges that Investor is able to bear the economic risk of losing Investor’s entire investment in the Shares. (g)

Accredited Investor Status or Investment Limits. Investor represents that either:

(i) Investor is an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act; or (ii) The purchase price, together with any other amounts previously used to purchase Shares in this offering, does not exceed 10% of the greater of Investor’s annual income or net worth (or in the case where Investor is a non-natural person, their revenue or net assets for such Investor's most recently completed fiscal year end). 7

Investor represents that to the extent it has any questions with respect to its status as an accredited investor, or the application of the investment limits, it has sought professional advice. (h) Stockholder Information. Within five days after receipt of a request from the Company, Investor hereby agrees to provide such information with respect to its status as a stockholder (or potential stockholder) and to execute and deliver such documents as may reasonably be necessary to comply with any and all laws and regulations to which the Company is or may become subject, including, without limitation, the need to determine the accredited status of the Company’s stockholders. Investor further agrees that in the event it transfers any Securities, it will require the transferee of such Securities to agree to provide such information to the Company as a condition of such transfer. (i) Valuation. Investor acknowledges that the price of the shares of Series A Preferred to be sold in this offering was set by the Company on the basis of the Company’s internal valuation and no warranties are made as to value. Investor further acknowledges that future offerings of securities of the Company6 may be made at lower valuations, with the result that Investor’s investment will bear a lower valuation. (j) Domicile. Investor maintains Investor’s domicile (and is not a transient or temporary resident) at the address provided with Investors subscription. (k) Foreign Investors. If Investor is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), Investor hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Subscription Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Shares. Investor’s subscription and payment for and continued beneficial ownership of the Shares will not violate any applicable securities or other laws of Investor’s jurisdiction. 5. Indemnity. The representations, warranties and covenants made by Investor herein shall survive the closing of this Subscription Agreement. Investor agrees to indemnify and hold harmless the Company and its respective officers, directors and affiliates, and each other person, if any, who controls the Company within the meaning of Section 15 of the Securities Act against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all reasonable attorneys’ fees, including attorneys’ fees on appeal) and expenses reasonably incurred in investigating, preparing or defending against any false representation or warranty or breach of failure by Investor to comply with any covenant or agreement made by Investor herein or in any other document furnished by Investor to any of the foregoing in connection with this transaction. 6. Governing Law; Jurisdiction. This Subscription Agreement shall be governed and construed in accordance with the laws of the State of Texas. EACH OF INVESTOR AND THE COMPANY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION LOCATED WITHIN THE STATE OF TEXAS AND NO OTHER PLACE AND IRREVOCABLY AGREES THAT ALL 8

ACTIONS OR PROCEEDINGS RELATING TO THIS SUBSCRIPTION AGREEMENT MAY BE LITIGATED IN SUCH COURTS. EACH OF INVESTORS AND THE COMPANY ACCEPTS FOR ITSELF AND HIMSELF AND IN CONNECTION WITH ITS AND HIS RESPECTIVE PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS SUBSCRIPTION AGREEMENT. INVESTOR AND THE COMPANY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN THE MANNER AND IN THE ADDRESS SPECIFIED IN SECTION 7 AND PROVIDED WITH INVESTORS SUBSCRIPTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS SUBSCRIPTION AGREEMENT OR THE ACTIONS OF EITHER PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF, EACH OF THE PARTIES HERETO ALSO WAIVES ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF SUCH PARTY. EACH OF THE PARTIES HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS SUBSCRIPTION AGREEMENT. IN THE EVENT OF LITIGATION, THIS SUBSCRIPTION AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 7. Notices. Notice, requests, demands and other communications relating to this Subscription Agreement and the transactions contemplated herein shall be in writing and shall be deemed to have been duly given if and when (a) delivered personally, on the date of such delivery; or (b) mailed by registered or certified mail, postage prepaid, return receipt requested, in the third day after the posting thereof; or (c) emailed on the date of such delivery to the address of the respective parties as follows: If to the Company, to: Virtuix Holdings Inc. Attention: Chief Executive Officer 1826 Kramer Lane, Suite H Austin, TX 78758

If to Investor, at Investor’s address supplied in connection with this subscription, or to such other address as may be specified by written notice from time to time by the party entitled to receive such notice. Any notices, requests, demands or other communications by email shall be confirmed by letter given in accordance with (a) or (b) above. 9

8. Miscellaneous. (a) All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons or entity or entities may require. (b)

This Subscription Agreement is not transferable or assignable by Investor.

(c) The representations, warranties and agreements contained herein shall be deemed to be made by and be binding upon Investor and its heirs, executors, administrators and successors and shall inure to the benefit of the Company and its successors and assigns. (d) None of the provisions of this Subscription Agreement may be waived, changed or terminated orally or otherwise, except as specifically set forth herein or except by a writing signed by the Company and Investor. (e) In the event any part of this Subscription Agreement is found to be void or unenforceable, the remaining provisions are intended to be separable and binding with the same effect as if the void or unenforceable part were never the subject of agreement. (f) The invalidity, illegality or unenforceability of one or more of the provisions of this Subscription Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Subscription Agreement in such jurisdiction or the validity, legality or enforceability of this Subscription Agreement, including any such provision, in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law. (g) This Subscription Agreement supersedes all prior discussions and agreements between the parties with respect to the subject matter hereof and contains the sole and entire agreement between the parties hereto with respect to the subject matter hereof. (h) The terms and provisions of this Subscription Agreement are intended solely for the benefit of each party hereto and their respective successors and assigns, and it is not the intention of the parties to confer, and no provision hereof shall confer, third-party beneficiary rights upon any other person. (i) The headings used in this Subscription Agreement have been inserted for convenience of reference only and do not define or limit the provisions hereof. (j) If any recapitalization or other transaction affecting the stock of the Company is effected, then any new, substituted or additional securities or other property which is distributed with respect to the Securities shall be immediately subject to this Subscription Agreement, to the same extent that the Securities, immediately prior thereto, shall have been covered by this Subscription Agreement. (k) No failure or delay by any party in exercising any right, power or privilege under this Subscription Agreement shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

10

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

TABLE OF CONTENTS Page 1.

Definitions............................................................................................................................1

2.

Registration Rights...............................................................................................................4 2.1 Demand Registration ...............................................................................................4 2.2 Company Registration .............................................................................................6 2.3 Underwriting Requirements .....................................................................................6 2.4 Obligations of the Company ....................................................................................7 2.5 Furnish Information .................................................................................................9 2.6 Expenses of Registration..........................................................................................9 2.7 Delay of Registration ...............................................................................................9 2.8 Indemnification ........................................................................................................9 2.9 Reports Under Exchange Act.................................................................................11 2.10 Limitations on Subsequent Registration Rights .....................................................12 2.11 “Market Stand-off” Agreement..............................................................................12 2.12 Restrictions on Transfer .........................................................................................13 2.13 Termination of Registration Rights .......................................................................14

3.

Information Rights .............................................................................................................15 3.1 Delivery of Financial Statements ...........................................................................15 3.2 Termination of Information Rights ........................................................................15 3.3 Confidentiality .......................................................................................................15

4.

Rights to Future Stock Issuances .......................................................................................16 4.1 Right of First Offer ................................................................................................16 4.2 Termination ............................................................................................................17

5.

Miscellaneous ....................................................................................................................17 5.1 Successors and Assigns..........................................................................................17 5.2 Governing Law ......................................................................................................18 5.3 Counterparts ...........................................................................................................18 5.4 Titles and Subtitles.................................................................................................18 5.5 Notices ...................................................................................................................18 5.6 Amendments and Waivers .....................................................................................18 5.7 Severability ............................................................................................................19 5.8 Aggregation of Stock .............................................................................................19 5.9 Additional Investors ...............................................................................................19 5.10 Entire Agreement ...................................................................................................19 5.11 Dispute Resolution .................................................................................................19 5.12 Delays or Omissions ..............................................................................................20

Schedule A

-

Schedule of Investors

i

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT THIS AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT (this “Agreement”), is made as of the 10th day of March, 2016, by and among Virtuix Holdings Inc., a Delaware corporation (the “Company”), and each of the investors listed on Schedule A hereto, each of which is referred to in this Agreement as an “Investor”, including Investors purchasing shares of Series A Preferred Stock of the Company after the date hereof that become a party to this Agreement in accordance with Section 5.9 hereof. R E C I T A L S: A. The Company and the Investors in the Company’s Series Seed Preferred Stock and Series 2 Seed Preferred Stock are parties to the Investors’ Rights Agreement dated as of April 7, 2014, as amended by Amendment No. 1 to Investors’ Rights Agreement dated as of December 3, 2014 (as so amended, the “Prior IRA Agreement”). B. The Investors’ Rights Agreement provides that it may only be amended or modified by a written instrument executed by the Company and Investors holding at least a majority of the Registrable Securities (as such term is defined in the Prior IRA Agreement). C. The Investors executing this Agreement hold more than a majority of the Registrable Securities outstanding as of the date hereof. D. On and after the date hereof, the Company intends to sell shares of its Series A Preferred Stock, par value $0.001 per share, of the Company (the “Series A Preferred Stock”) to new and current investors in the Company (collectively, the “Series A Investors”). E. As a condition to each Series A Investor’s purchase of shares of Series A Preferred Stock, the Company and those Investors holding shares of Series Seed Preferred Stock and Series 2 Seed Preferred Stock of the Company that are executing this Agreement have agreed to enter into this Agreement with each of the Series A Investors. F. The parties hereto desire to amend and restate the Prior IRA Agreement in its entirety by this Agreement so as to afford the Series A Investors with registration rights, preemptive rights and information rights on a parity with those that have been provided to the Investors in the Series Seed Preferred Stock and Series 2 Seed Preferred Stock of the Company under the Prior IRA Agreement. AGREEMENT NOW, THEREFORE, the parties hereby agree as follows: 1.

Definitions. For purposes of this Agreement:

1.1 “Affiliate” means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including without limitation any general partner, managing member,

officer or director of such Person or any venture capital fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same management company with, such Person. 1.2 “Certificate of Incorporation” means the Third Amended and Restated Certificate of Incorporation of the Company as in effect on the date hereof and as the same may be amended hereafter from time to time. 1.3 “Common Stock” means shares of the Company’s common stock, par value $0.001 per share. 1.4 “Damages” means any loss, damage, claim or liability (joint or several) to which a party hereto may become subject under the Securities Act, the Exchange Act, or other federal or state law, insofar as such loss, damage, claim or liability (or any action in respect thereof) arises out of or is based upon: (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement of the Company, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto; (ii) an omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation by the indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law. 1.5 “Derivative Securities” means any securities or rights convertible into, or exercisable or exchangeable for (in each case, directly or indirectly), Common Stock, including options and warrants. 1.6 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 1.7 “Excluded Registration” means (i) a registration relating to the sale of securities to employees of the Company or a subsidiary pursuant to a stock option, stock purchase, or similar plan; (ii) a registration relating to an SEC Rule 145 transaction; (iii) a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities; or (iv) a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered. 1.8 “Form S-1” means such form under the Securities Act as in effect on the date hereof or any successor registration form under the Securities Act subsequently adopted by the SEC. 1.9 “Form S-3” means such form under the Securities Act as in effect on the date hereof or any registration form under the Securities Act subsequently adopted by the SEC that permits incorporation of substantial information by reference to other documents filed by the Company with the SEC. 2

1.10

“GAAP” means generally accepted accounting principles in the

1.11 to this Agreement.

“Holder” means any holder of Registrable Securities who is a party

United States.

1.12 “Immediate Family Member” means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including, adoptive relationships, of a natural person referred to herein. 1.13 “Initiating Holders” means, collectively, Holders who properly initiate a registration request under this Agreement. 1.14 “IPO” means the Company’s first underwritten public offering of its Common Stock under the Securities Act. 1.15 “Major Investor” means any Investor that, individually or together with such Investor’s Affiliates, holds at least 85,000 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof). 1.16 “New Securities” means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable for such equity securities. 1.17 “Person” means any individual, corporation, partnership, trust, limited liability company, association or other entity. 1.18 “Preferred Stock” means, collectively, shares of the Series Seed Preferred Stock, Series 2 Seed Preferred Stock and Series A Preferred Stock. 1.19 “Registrable Securities” means (i) the Common Stock issuable or issued upon conversion of the Preferred Stock; (ii) any Common Stock, or any Common Stock issued or issuable (directly or indirectly) upon conversion and/or exercise of any other securities of the Company, acquired by the Investors after the date hereof; and (iii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares referenced in clauses (i) and (ii) above; excluding in all cases, however, any Registrable Securities sold by a Person in a transaction in which the applicable rights under this Agreement are not assigned pursuant to Section 5.1, and excluding for purposes of Section 2 any shares for which registration rights have terminated pursuant to Section 2.13 of this Agreement. 1.20 “Registrable Securities then outstanding” means the number of shares determined by adding the number of shares of outstanding Common Stock that are Registrable Securities and the number of shares of Common Stock issuable (directly or 3

indirectly) pursuant to then exercisable and/or convertible securities that are Registrable Securities. 1.21 “Restricted Securities” means the securities of the Company required to be notated with the legend set forth in Section 2.12(b) hereof. 1.22

“SEC” means the Securities and Exchange Commission.

1.23 the Securities Act.

“SEC Rule 144” means Rule 144 promulgated by the SEC under

1.24 the Securities Act.

“SEC Rule 145” means Rule 145 promulgated by the SEC under

1.25 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 1.26 “Selling Expenses” means all underwriting discounts, selling commissions, and stock transfer taxes applicable to the sale of Registrable Securities, and fees and disbursements of counsel for any Holder, except for the fees and disbursements of the Selling Holder Counsel borne and paid by the Company as provided in Section 2.6. 1.27 “Series Seed Preferred Stock” means shares of the Company’s Series Seed Preferred Stock, par value $0.001 per share. 1.28 “Series 2 Seed Preferred Stock” means shares of the Company’s Series 2 Seed Preferred Stock, par value $0.001 per share. 2.

Registration Rights. The Company covenants and agrees as follows: 2.1

Demand Registration.

(a) Form S-1 Demand. If at any time after the earlier of (i) five (5) years after the date of this Agreement or (ii) one hundred eighty (180) days after the effective date of the registration statement for the IPO, the Company receives a request from Holders of a majority of the Registrable Securities then outstanding that the Company file a Form S-1 registration statement with respect to a majority of the Registrable Securities then outstanding (or a lesser percent if the anticipated aggregate offering price, net of Selling Expenses, would exceed $10,000,000), then the Company shall (x) within ten (10) days after the date such request is given, give notice thereof (the “Demand Notice”) to all Holders other than the Initiating Holders; and (y) as soon as practicable, and in any event within sixty (60) days after the date such request is given by the Initiating Holders, file a Form S-1 registration statement under the Securities Act covering all Registrable Securities that the Initiating Holders requested to be registered and any additional Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given, and in each case, subject to the limitations of Sections 2.1(c) and 2.3.

4

(b) Form S-3 Demand. If at any time when it is eligible to use a Form S-3 registration statement, the Company receives a request from Holders of Registrable Securities that the Company file a Form S-3 registration statement with respect to outstanding Registrable Securities of such Holders having an anticipated aggregate offering price, net of Selling Expenses, of at least $1,000,000, then the Company shall (i) within ten (10) days after the date such request is given, give a Demand Notice to all Holders other than the Initiating Holders; and (ii) as soon as practicable, and in any event within forty-five (45) days after the date such request is given by the Initiating Holders, file a Form S-3 registration statement under the Securities Act covering all Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given, and in each case, subject to the limitations of Sections 2.1(c) and 2.3. (c) Notwithstanding the foregoing obligations, if the Company furnishes to Holders requesting a registration pursuant to this Section 2.1 a certificate signed by the Company’s chief executive officer stating that in the good faith judgment of the Company’s Board of Directors it would be materially detrimental to the Company and its stockholders for such registration statement to either become effective or remain effective for as long as such registration statement otherwise would be required to remain effective, because such action would (i) materially interfere with a significant acquisition, corporate reorganization, or other similar transaction involving the Company; (ii) require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; or (iii) render the Company unable to comply with requirements under the Securities Act or Exchange Act, then the Company shall have the right to defer taking action with respect to such filing, and any time periods with respect to filing or effectiveness thereof shall be tolled correspondingly, for a period of not more than one hundred twenty (120) days after the request of the Initiating Holders is given; provided, however, that the Company may not invoke this right more than once in any twelve (12) month period; and provided further that the Company shall not register any securities for its own account or that of any other stockholder during such one hundred twenty (120) day period other than an Excluded Registration. (d) The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Section 2.1(a): (i) during the period that is sixty (60) days before the Company’s good faith estimate of the date of filing of, and ending on a date that is one hundred eighty (180) days after the effective date of, a Company-initiated registration, provided that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; (ii) after the Company has effected two registrations pursuant to Section 2.1(a); or (iii) if the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to Section 2.1(b). The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Section 2.1(b): (i) during the period that is thirty (30) days before the Company’s good faith estimate of the date of filing of, and ending on a date that is ninety (90) days after the effective date of, a Company-initiated registration, provided that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; (ii) if the Company has effected two registrations pursuant to Section 2.1(b) within the twelve (12) month period immediately preceding the date of such request, or (iii) if the Company has effected four registrations pursuant to Section 2.1(b). A registration shall not be counted as “effected” for purposes of this Section 2.1(d) until such time 5

as the applicable registration statement has been declared effective by the SEC, unless the Initiating Holders withdraw their request for such registration, elect not to pay the registration expenses therefor, and forfeit their right to one demand registration statement pursuant to Section 2.6, in which case such withdrawn registration statement shall be counted as “effected” for purposes of this Section 2.1(d). 2.2 Company Registration. If the Company proposes to register (including, for this purpose, a registration effected by the Company for stockholders other than the Holders) any of the Common Stock under the Securities Act in connection with the public offering of such securities solely for cash (other than in an Excluded Registration), the Company shall, at such time, promptly give each Holder notice of such registration. Upon the request of each Holder given within twenty (20) days after such notice is given by the Company, the Company shall, subject to the provisions of Section 2.3, cause to be registered all of the Registrable Securities that each such Holder has requested to be included in such registration. The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 2.2 before the effective date of such registration, whether or not any Holder has elected to include Registrable Securities in such registration. The expenses (other than Selling Expenses) of such withdrawn registration shall be borne by the Company in accordance with Section 2.6. 2.3

Underwriting Requirements.

(a) If, pursuant to Section 2.1, the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to Section 2.1, and the Company shall include such information in the Demand Notice. The underwriter(s) will be selected by the Company and shall be reasonably acceptable to a majority in interest of the Initiating Holders. In such event, the right of any Holder to include such Holder’s Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in Section 2.4(e)) enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting. Notwithstanding any other provision of this Section 2.3, if the managing underwriter(s) advise(s) the Initiating Holders in writing that marketing factors require a limitation on the number of shares to be underwritten, then the Initiating Holders shall so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of Registrable Securities that may be included in the underwriting shall be allocated among such Holders of Registrable Securities, including the Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by each Holder or in such other proportion as shall mutually be agreed to by all such selling Holders; provided, however, that the number of Registrable Securities held by the Holders to be included in such underwriting shall not be reduced unless all other securities are first entirely excluded from the underwriting. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares.

6

(b) In connection with any offering involving an underwriting of shares of the Company’s capital stock pursuant to Section 2.2, the Company shall not be required to include any of the Holders’ Registrable Securities in such underwriting unless the Holders accept the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in such quantity as the underwriters in their sole discretion determine will not jeopardize the success of the offering by the Company. If the total number of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters and the Company in their sole discretion determine will not jeopardize the success of the offering. If the underwriters determine that less than all of the Registrable Securities requested to be registered can be included in such offering, then the Registrable Securities that are included in such offering shall be allocated among the selling Holders in proportion (as nearly as practicable to) the number of Registrable Securities owned by each selling Holder or in such other proportions as shall mutually be agreed to by all such selling Holders. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares. Notwithstanding the foregoing, in no event shall (i) the number of Registrable Securities included in the offering be reduced unless all other securities (other than securities to be sold by the Company) are first entirely excluded from the offering, or (ii) the number of Registrable Securities included in the offering be reduced below twenty-five percent (25%) of the total number of securities included in such offering, unless such offering is the IPO, in which case the selling Holders may be excluded further if the underwriters make the determination described above and no other stockholder’s securities are included in such offering. For purposes of the provision in this Section 2.3(b) concerning apportionment, for any selling Holder that is a partnership, limited liability company, or corporation, the partners, members, retired partners, retired members, stockholders, and Affiliates of such Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired members and any trusts for the benefit of any of the foregoing Persons, shall be deemed to be a single “selling Holder,” and any pro rata reduction with respect to such “selling Holder” shall be based upon the aggregate number of Registrable Securities owned by all Persons included in such “selling Holder,” as defined in this sentence. 2.4 Obligations of the Company. Whenever required under this Section 2 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible: (a) prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable efforts to cause such registration statement to become effective and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to one hundred twenty (120) days or, if earlier, until the distribution contemplated in the registration statement has been completed; provided, however, that such one hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder refrains, at the request of an underwriter of Common Stock (or other securities) of the Company, from selling any securities included in such registration; 7

(b) prepare and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection with such registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities covered by such registration statement; (c) furnish to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the Securities Act, and such other documents as the Holders may reasonably request in order to facilitate their disposition of their Registrable Securities; (d) use its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; provided that the Company shall not be required to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act; (e) in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the underwriter(s) of such offering; (f) use its commercially reasonable efforts to cause all such Registrable Securities covered by such registration statement to be listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities issued by the Company are then listed; (g) provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration; (h) promptly make available for inspection by the selling Holders, any managing underwriter(s) participating in any disposition pursuant to such registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the selling Holders, all financial and other records, pertinent corporate documents, and properties of the Company, and cause the Company’s officers, directors, employees, and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant, or agent, in each case, as necessary or advisable to verify the accuracy of the information in such registration statement and to conduct appropriate due diligence in connection therewith; (i) notify each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been declared effective or a supplement to any prospectus forming a part of such registration statement has been filed; and (j) after such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or supplement such registration statement or prospectus. 8

In addition, the Company shall ensure that, at all times after any registration statement covering a public offering of securities of the Company under the Securities Act shall have become effective, its insider trading policy shall provide that the Company’s directors may implement a trading program under Rule 10b5-1 of the Exchange Act. 2.5 Furnish Information. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 2 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as is reasonably required to effect the registration of such Holder’s Registrable Securities. 2.6 Expenses of Registration. All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or qualifications pursuant to Section 2, including all registration, filing, and qualification fees; printers’ and accounting fees; fees and disbursements of counsel for the Company; and the reasonable fees and disbursements, not to exceed $50,000, of one counsel for the selling Holders (“Selling Holder Counsel”), shall be borne and paid by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 2.1 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all selling Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn registration), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to one registration pursuant to Sections 2.1(a) or 2.1(b), as the case may be; provided further that if, at the time of such withdrawal, the Holders shall have learned of a material adverse change in the condition, business, or prospects of the Company from that known to the Holders at the time of their request and have withdrawn the request with reasonable promptness after learning of such information then the Holders shall not be required to pay any of such expenses and shall not forfeit their right to one registration pursuant to Sections 2.1(a) or 2.1(b). All Selling Expenses relating to Registrable Securities registered pursuant to this Section 2 shall be borne and paid by the Holders pro rata on the basis of the number of Registrable Securities registered on their behalf. 2.7 Delay of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 2. 2.8 Indemnification. If any Registrable Securities are included in a registration statement under this Section 2: (a) To the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, and the partners, members, officers, directors, and stockholders of each such Holder; legal counsel and accountants for each such Holder; any underwriter (as defined in the Securities Act) for each such Holder; and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any 9

Damages, and the Company will pay to each such Holder, underwriter, controlling Person, or other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the indemnity agreement contained in this Section 2.8(a) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the Company be liable for any Damages to the extent that they arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of any such Holder, underwriter, controlling Person, or other aforementioned Person expressly for use in connection with such registration. (b) To the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless the Company, and each of its directors, each of its officers who has signed the registration statement, each Person (if any), who controls the Company within the meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter (as defined in the Securities Act), any other Holder selling securities in such registration statement, and any controlling Person of any such underwriter or other Holder, against any Damages, in each case only to the extent that such Damages arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such selling Holder expressly for use in connection with such registration; and each such selling Holder will pay to the Company and each other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the indemnity agreement contained in this Section 2.8(b) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; and provided further that in no event shall the aggregate amounts payable by any Holder by way of indemnity or contribution under Sections 2.8(b) and 2.8(d) exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of fraud or willful misconduct by such Holder. (c) Promptly after receipt by an indemnified party under this Section 2.8 of notice of the commencement of any action (including any governmental action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 2.8, give the indemnifying party notice of the commencement thereof. The indemnifying party shall have the right to participate in such action and, to the extent the indemnifying party so desires, participate jointly with any other indemnifying party to which notice has been given, and to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such action. The failure to give notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of any liability to the indemnified party under this Section 2.8, to the extent that such failure materially prejudices the 10

indemnifying party’s ability to defend such action. The failure to give notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 2.8. (d) To provide for just and equitable contribution to joint liability under the Securities Act in any case in which either: (i) any party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Section 2.8 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding the fact that this Section 2.8 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any party hereto for which indemnification is provided under this Section 2.8, then, and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of each of the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions that resulted in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission; provided, however, that, in any such case (x) no Holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by such Holder pursuant to such registration statement, and (y) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation; and provided further that in no event shall a Holder’s liability pursuant to this Section 2.8(d), when combined with the amounts paid or payable by such Holder pursuant to Section 2.8(b), exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of willful misconduct or fraud by such Holder. (e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control. (f) Unless otherwise superseded by an underwriting agreement entered into in connection with the underwritten public offering, the obligations of the Company and Holders under this Section 2.8 shall survive the completion of any offering of Registrable Securities in a registration under this Section 2, and otherwise shall survive the termination of this Agreement. 2.9 Reports Under Exchange Act. With a view to making available to the Holders the benefits of SEC Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company shall: 11

(a) make and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144, at all times after the effective date of the registration statement filed by the Company for the IPO; (b) use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); and (c) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) to the extent accurate, a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days after the effective date of the registration statement filed by the Company for the IPO), the Securities Act, and the Exchange Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after the Company so qualifies); and (ii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration (at any time after the Company has become subject to the reporting requirements under the Exchange Act) or pursuant to Form S-3 (at any time after the Company so qualifies to use such form). 2.10 Limitations on Subsequent Registration Rights. From and after the date of this Agreement, the Company shall not, without the prior written consent of the Holders of a majority of the Registrable Securities then outstanding (excluding any of such shares held by any Holders whose rights to request registration or inclusion in any registration pursuant to this Section 2 have terminated in accordance with Section 2.13), enter into any agreement with any holder or prospective holder of any securities of the Company (i) to include such securities in any registration filed under this Section 2, unless under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only on a pro rata basis with respect the Registrable Securities, (ii) to make a demand registration that could result in such registration statement being declared effective prior to the dates set forth in this Section 2.1(a) or within onehundred-eighty (180) days of the effective date of any registration effected pursuant to this Section 2 or (iii) to grant registration rights that are senior to the rights granted to the Investors under this Agreement; provided that this limitation shall not apply to any additional Investor who becomes a party to this Agreement in accordance with Section 5.9. 2.11 “Market Stand-off” Agreement. Each Holder hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the registration by the Company of shares of its Common Stock or any other equity securities under the Securities Act on a registration statement on Form S-1 or Form S-3, and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (180) days in the case of the IPO, or such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports, and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2711(f)(4) or NYSE Rule 12

472(f)(4), or any successor provisions or amendments thereto), or such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto), (i) lend; offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right, or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable (directly or indirectly) for Common Stock (whether such shares or any such securities are then owned by the Holder or are thereafter acquired) or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise. The foregoing provisions of this Section 2.11 shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, or the transfer of any shares to any trust for the direct or indirect benefit of the Holder or the immediate family of the Holder, provided that the trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value, and shall be applicable to the Holders only if all officers, directors and stockholders individually owning more than one percent (1%) of the Company’s outstanding Common Stock (after giving effect to conversion into Common Stock of all outstanding Preferred Stock) are bound by and subject to the same restrictions. The underwriters in connection with such registration are intended third-party beneficiaries of this Section 2.11 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such registration that are consistent with this Section 2.11 or that are necessary to give further effect thereto. Any discretionary waiver or termination of the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all Holders subject to such agreements, based on the number of shares subject to such agreements. 2.12

Restrictions on Transfer.

(a) No shares of Preferred Stock or any Registrable Securities shall be sold, pledged, or otherwise transferred, and the Company shall not recognize and shall issue stoptransfer instructions to its transfer agent with respect to any such sale, pledge, or transfer, except upon the conditions specified in this Agreement, which conditions are intended to ensure compliance with the provisions of the Securities Act. A transferring Holder will cause any proposed purchaser, pledgee, or transferee of shares of Preferred Stock or Registrable Securities held by such Holder to agree to take and hold such securities subject to the provisions and upon the conditions specified in this Agreement. (b) Each certificate, instrument, or book entry representing (i) shares of Preferred Stock, (ii) the Registrable Securities, and (iii) any other securities issued in respect of the securities referenced in clauses (i) and (ii), upon any stock split, stock dividend, recapitalization, merger, consolidation, or similar event, shall (unless otherwise permitted by the provisions of Section 2.12(c)) be notated with a legend substantially in the following form: 13

THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT. THE SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY. The Holders consent to the Company making a notation in its records and giving instructions to any transfer agent of the Restricted Securities in order to implement the restrictions on transfer set forth in this Section 2.12. (c) The holder of such Restricted Securities, by acceptance of ownership thereof, agrees to comply in all respects with the provisions of this Section 2. Before any proposed sale, pledge, or transfer of any Restricted Securities, unless there is in effect a registration statement under the Securities Act covering the proposed transaction, the Holder thereof shall give notice to the Company of such Holder’s intention to effect such sale, pledge, or transfer. Each such notice shall describe the manner and circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the Company, shall be accompanied at such Holder’s expense by either (i) a written opinion of legal counsel who shall, and whose legal opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction may be effected without registration under the Securities Act; (ii) a “no action” letter from the SEC to the effect that the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result in a recommendation by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel to the Company to the effect that the proposed sale, pledge, or transfer of the Restricted Securities may be effected without registration under the Securities Act, whereupon the Holder of such Restricted Securities shall be entitled to sell, pledge, or transfer such Restricted Securities in accordance with the terms of the notice given by the Holder to the Company. The Company will not require such a legal opinion or “no action” letter (x) in any transaction in compliance with SEC Rule 144; or (y) in any transaction in which such Holder distributes Restricted Securities to an Affiliate of such Holder for no consideration; provided that each transferee agrees in writing to be subject to the terms of this Section 2.12. Each certificate, instrument, or book entry representing the Restricted Securities transferred as above provided shall be notated with, except if such transfer is made pursuant to SEC Rule 144, the appropriate restrictive legend set forth in Section 2.12(b), except that such certificate instrument, or book entry shall not be notated with such restrictive legend if, in the opinion of counsel for such Holder and the Company, such legend is not required in order to establish compliance with any provisions of the Securities Act. 2.13 Termination of Registration Rights. The right of any Holder to request registration or inclusion of Registrable Securities in any registration pursuant to Sections 2.1 or 2.2 shall terminate upon the earliest to occur of: 14

(a) the closing of a Deemed Liquidation, as such term is defined in the Certificate of Incorporation; (b) such time as Rule 144 or another similar exemption under the Securities Act is available for the sale of all of such Holder’s shares without limitation during a three-month period without registration; and (c) 3.

the five year anniversary of the IPO.

Information Rights.

3.1 Delivery of Financial Statements. The Company shall deliver or otherwise make available to each Investor, as soon as practicable, but in any event within sixty (60) days after the end of each fiscal quarter of the Company, an unaudited conssolidated balance sheet as of the end of such quarter, and unaudited consonsolidated statements of income and of cash flows for such quarter. 3.2 Termination of Information Rights. The obligation to deliver or otherwise make available financial statements pursuant to Section 3.1 shall terminate and be of no further force or effect (i) immediately before the consummation of the IPO, (ii) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act, or (iii) upon a Deemed Liquidation, as such term is defined in the Certificate of Incorporation, whichever event occurs first. 3.3 Confidentiality. Each Investor agrees that such Investor will keep confidential and will not disclose, divulge, or use for any purpose (other than to monitor its investment in the Company) any confidential information obtained from the Company pursuant to the terms of this Agreement (including notice of the Company’s intention to file a registration statement), unless such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of this Section 3.3 by such Investor), (b) is or has been independently developed or conceived by the Investor without use of the Company’s confidential information, or (c) is or has been made known or disclosed to the Investor by a third party without a breach of any obligation of confidentiality such third party may have to the Company; provided, however, that an Investor may disclose confidential information (i) to such Investor’s attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company; (ii) to any prospective purchaser of any Registrable Securities from such Investor, if such prospective purchaser agrees to be bound by the provisions of this Section 3.3; (iii) to any Affiliate, partner, member, stockholder, or wholly owned subsidiary of such Investor in the ordinary course of business, provided that such Investor informs such Person that such information is confidential and directs such Person to maintain the confidentiality of such information; or (iv) as may otherwise be required by law, provided that the Investor promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure.

15

4.

Rights to Future Stock Issuances.

4.1 Right of First Offer. Subject to the terms and conditions of this Section 4.1 and applicable securities laws, if the Company proposes to offer or sell any New Securities, the Company shall first offer such New Securities to each Major Investor. A Major Investor shall be entitled to apportion the right of first offer hereby granted to it. in such proportions as it deems appropriate, among (i) itself and (ii) its Affiliates. (a) The Company shall give notice (the “Offer Notice”) to each Major Investor, stating (i) its bona fide intention to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such New Securities. (b) By notification to the Company within fifteen (15) business days after the Offer Notice is given, each Major Investor may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New Securities which equals the proportion that the Common Stock then held by such Major Investor (including all shares of Common Stock then issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities then held by such Major Investor) bears to the total Common Stock of the Company then outstanding (assuming full conversion and/or exercise, as applicable, of all Preferred Stock and other Derivative Securities). At the expiration of such fifteen (15) business day period, the Company shall promptly notify each Major Investor that elects to purchase or acquire all the shares available to it (each, a “Fully Exercising Investor”) of any other Major Investor’s failure to do likewise. During the ten (10) day period commencing after the Company has given such notice, each Fully Exercising Investor may, by giving notice to the Company, elect to purchase or acquire, in addition to the number of shares specified above, up to that portion of the New Securities for which Major Investors were entitled to subscribe but that were not subscribed for by the Major Investors which is equal to the proportion that the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities then held, by such Fully Exercising Investor bears to the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities then held, by all Fully Exercising Investors who wish to purchase such unsubscribed shares. The closing of any sale pursuant to this Section 4.1(b) shall occur within the later of ninety (90) days of the date that the Offer Notice is given and the date of initial sale of New Securities pursuant to Section 4.1(c). (c) If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in Section 4.1(b), the Company may, during the ninety (90) day period following the expiration of the periods provided in Section 4.1(b), offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Major Investors in accordance with this Section 4.1.

16

(d) The right of first offer in this Section 4.1 shall not be applicable to (i) Exempted Securities (as defined in the Certificate of Incorporation); (ii) shares of Common Stock issued in the IPO; and (iii) the issuance and sale of up to 7,000,000 shares of Series A Preferred Stock, or of Warrants to acquire such shares of Series A Preferred Stock, afte the date of this Agreement. (e) Notwithstanding any provision hereof to the contrary, in lieu of complying with the provisions of this Section 4.1, the Company may elect to give notice to the Major Investors within thirty (30) days after the issuance of New Securities. Such notice shall describe the type, price, and terms of the New Securities. Each Major Investor shall have twenty (20) days from the date notice is given to elect to purchase up to the number of New Securities that would, if purchased by such Major Investor, maintain such Major Investor’s percentageownership position, calculated as set forth in Section 4.1(b) before giving effect to the issuance of such New Securities. The closing of such sale shall occur within sixty (60) days of the date notice is given to the Major Investors. 4.2 Termination. The covenants set forth in Section 4.1 shall terminate and be of no further force or effect (i) immediately before the consummation of the IPO, (ii) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act, or (iii) upon a Deemed Liquidation as such term is defined in the Certificate of Incorporation, whichever event occurs first. 5.

Miscellaneous.

5.1 Successors and Assigns. The rights under this Agreement may be assigned (but only with all related obligations) by a Holder to a transferee of Registrable Securities that (i) is an Affiliate of a Holder; (ii) is a Holder’s Immediate Family Member or trust for the benefit of an individual Holder or one or more of such Holder’s Immediate Family Members; or (iii) after such transfer, holds at least 1,000,000 shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock dividends, combinations, and other recapitalizations occurring after the date hereof); provided, however, that (x) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee and the Registrable Securities with respect to which such rights are being transferred; and (y) such transferee agrees in a written instrument delivered to the Company to be bound by and subject to the terms and conditions of this Agreement, including the provisions of Section 2.11. For the purposes of determining the number of shares of Registrable Securities held by a transferee, the holdings of a transferee (1) that is an Affiliate or stockholder of a Holder; (2) who is a Holder’s Immediate Family Member; or (3) that is a trust for the benefit of an individual Holder or such Holder’s Immediate Family Member shall be aggregated together and with those of the transferring Holder; provided further that all transferees who would not qualify individually for assignment of rights shall have a single attorney-in-fact for the purpose of exercising any rights, receiving notices, or taking any action under this Agreement. The terms and conditions of this Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective

17

successors and permitted assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein. 5.2 Governing Law. This Agreement shall be governed by the internal law of the State of Delaware, without regard to conflicts of law principles. 5.3 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. 5.4 Titles and Subtitles. The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing or interpreting this Agreement. 5.5 Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail or facsimile during the recipient’s normal business hours, and if not sent during normal business hours, then on the recipient’s next business day; (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their addresses as set forth on Schedule A or Schedule B (as applicable) hereto, or to the principal office of the Company and to the attention of the Chief Executive Officer, in the case of the Company, or to such email address, facsimile number, or address as subsequently modified by written notice given in accordance with this Section 5.5. If notice is given to the Company, a copy shall also be sent to Michael Dunn, Esq., Phillips & Reiter, PLLC, 6805 N. Capital of Texas Highway, Suite 318, Austin, Texas 78731. 5.6 Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Company and the holders of a majority of the Registrable Securities then outstanding; provided that the Company may in its sole discretion waive compliance with Section 2.12(c) (and the Company’s failure to object promptly in writing after notification of a proposed assignment allegedly in violation of Section 2.12(c) shall be deemed to be a waiver); and provided further that any provision hereof may be waived by any waiving party on such party’s own behalf, without the consent of any other party. Notwithstanding the foregoing, this Agreement may not be amended or terminated and the observance of any term hereof may not be waived with respect to any Investor without the written consent of such Investor, unless such amendment, termination, or waiver applies to all Investors in the same fashion (it being agreed that a waiver of the provisions of Section 4 with respect to a 18

particular transaction shall be deemed to apply to all Investors in the same fashion if such waiver does so by its terms, notwithstanding the fact that certain Investors may nonetheless, by agreement with the Company, purchase securities in such transaction). The Company shall give prompt notice of any amendment or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, termination, or waiver. Any amendment, termination, or waiver effected in accordance with this Section 5.6 shall be binding on all parties hereto, regardless of whether any such party has consented thereto. No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term, condition, or provision. 5.7 Severability. In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent permitted by law. 5.8 Aggregation of Stock. All shares of Registrable Securities held or acquired by Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement and such Affiliated persons may apportion such rights as among themselves in any manner they deem appropriate. 5.9 Additional Investors. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of Series A Preferred Stock, or Warrants to purchase shares of Series A Preferred Stock, after the date hereof, the purchaser of such shares of Series A Preferred Stock or recipient of such Warrants, as the case may be, may become a party to this Agreement by executing and delivering an additional counterpart signature page to this Agreement or an Adoption Agreement agreeing to be bound by this Agreement as an “Investor” hereunder, and thereafter shall be deemed an “Investor” for all purposes hereunder. No action or consent by the Investors shall be required for such joinder to this Agreement by such additional Investor, so long as such additional Investor has agreed in writing to be bound by all of the obligations as an “Investor” hereunder. 5.10 Entire Agreement. This Agreement (including any Schedules and Exhibits hereto) constitutes the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties, including, without limitation, the Prior IRA Agreement, is expressly canceled and of no further force or effect. 5.11 Dispute Resolution. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Delaware and to the jurisdiction of the United States District Court for the District of Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Delaware or the United States District Court for the 19

District of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court. WAIVER OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. 5.12 Delays or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or nondefaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

[Remainder of Page Intentionally Left Blank]

20

IN WITNESS WHEREOF, the parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first written above. VIRTUIX HOLDINGS INC. By: Jan Goetgeluk, Chief Executive Officer

INVESTORS: Signatures Incorporated by Reference from the Adoption Agreement Signed by the Holders of a Majority of the Series Seed Preferred Stock and Series 2 Seed Preferred Stock that are Parties to the Prior IRA Agreement. Signatures of Holders of Series A Preferred Stock Are Incorporated by Reference from the Subscription Agreements Relating to Their Purchase of Series A Preferred Stock (Per Section 2 Thereof).

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

SCHEDULE A Investors RADICAL INVESTMENTS LP c/o Radical Investments Management LLC 5424 Deloache Avenue Dallas, Texas 75220 Attention: President Fax: (214) 696-6310 with a copy to (which shall not constitute notice): Robert S. Hart 5424 Deloache Avenue Dallas, Texas 75220 Fax: (214) 696-3380 MAVERON EQUITY PARTNERS V, LP 411 1st Avenue South, Suite 600 Seattle, Washington 98104 MAVERON V ENTREPRENEUR’S FUND, LP 411 1st Avenue South, Suite 600 Seattle, Washington 98104 MEP ASSOCIATES V, LP 411 1st Avenue South, Suite 600 Seattle, Washington 98104 SKM PARTNERSHIP, LTD. 5621 Tuppor Lake Drive Houston, Texas 77050 KEITH A. KREUER 18701 East Cool Breeze Lane Montgomery, Texas 77356 DOUGLAS J. ERWIN 4 Briarwood Court Houston, Texas 77019 TEKTON VENTURES LLC 50 California Street, Suite 3200 San Francisco, California 94111

SCHEDULE A Investors (continued) STARTCAPS SL Calle General Arrando 9 BIS Madrid, Spain 28010 MICHAEL MCGOVERN 18 Berkley Highway The Woodlands, Texas 77385 ANTONIE WOBBE PLOEGSMA One Waterway Court, 6E The Woodlands, Texas 77380 BERNARD GOETGELUK Bergstraat 42 Merelbeke 9820 Belgium BHV ENTREPRENEURSHIP FUND II, LP 275 Greenwich Street, #5A New York, New York 10007 QUEENSBRIDGE FUND I, L.P. 1801 Century Park East, Suite 1132 Los Angeles, California 90067 UGO DE CHARETTE South Ridge 1, unit 2101 Downtown Burj Khalifa Dubai Dubai, 214967 United Arab Emirates VESTCESS, LLC Attention: Federico Gonzalez, President 9400 Bamboo Road Houston, Texas 77041 DAVID ROWE 42 arkwright road London, England, nw36bh United Kingdom SWAD 1608 LTD. Attention: Arthur Sharplin, Trustee of SWAD Management Trust 3205 Aztec Fall Cove Austin, Texas 78746

SCHEDULE A Investors (continued) GREGORY NOVAK 1000 Louisiana Street, Fifty Third Floor Houston, Texas 77002 Fax: (210) 860-9252 STEPHEN COOK 1503 Sheltons Bend Court Houston, Texas 77077 MICHAEL JONES 313 Lakeside Lane Houston, Texas 77058 FOUR WINDS CAPITAL LP Attention: Samuel Goodner, Manager 3400 Woodcutters Way Austin, Texas 78746 COLTON BAKER JACOBS REVOCABLE LIVING TRUST Attention: Colton Jacobs, Trustee 5931 Darwin Court Carlsbad, California 92008 S&H CAPITAL INVESTMENT HOLDINGS, LP Attention: Hayden Hill, Manager P.O. Box 40792 Houston, Texas 77240 SEEDINVEST HOLDINGS I, LLC, VIRTUIX SERIES ONLY P.O. Box 171305 Salt Lake City, Utah 84117 SCENTAN VENTURE PARTNERS LIMITED 1903 World Wide House 19 Des Voeux Road Central HK YOSHIAKI MURAKAMI 6 Cuscaden Walk #94-02 The Boulevard Residences Singapore SSSS INVESTMENT LLC 9036 Marlive Lane Houston, Texas 77025

SCHEDULE A Investors (continued) JOHN BESS LLC 3 Wyndmere Lane Mendham, New Jersey 07945 ROBERT W. MARK 1100 Louisiana, Suite 4800 Houston, Texas 77002

2020 VENTURES, LP 121 Deer Hollow Road San Anselmo, California 94960 STEPHEN CARPENTER 6067 Post Oak Green Lane Houston, Texas 77055

JONATHAN R. HARMS 1837 Dart Street Houston, Texas 77007

GERALD FALLS P.O. Box 2202 Cypress, Texas 77410 VIKA GUPTA 5035 Yarwell Drive Houston, Texas 77096

DANIEL JONES 716 S. Overlook Drive Alexandria, Virginia 22305

H. ALBERT NAPIER 193 W. Ledge Stone Drive Fredericksburg, Texas 78624

VENTURE LENDING & LEASING VII, LLC 104 La Mesa Drive Portola Valley, California 94028

SCHEDULE A Investors (continued) WAUTER HELLEBUYCK & JASMIEN DECLERCQ Gansetek Straat 9686 Etikhove, Belgium

THIRD COAST VR, LLC _________________________ _________________________ _________________________

VIRTUIX SERIES 2 SEED INVESTMENT LLC P.O. Box 171305 Salt Lake City, Utah 84117

RANDY B. CRATH 15 Courtlandt Place Houston, Texas 77006

451 WE VIRTUIX LLC _________________________ _________________________ _________________________

WALDEN WOODS HOLDINGS LLC 889 Tanglewood Drive Concord, Massachusetts 01742

WEFUNDS LLC, WEFUNDS VIRTUIX I __________________________ __________________________ __________________________

AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AGREEMENT THIS AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AGREEMENT (this “Agreement”), is made as of the 10th day of March, 2016, by and among Virtuix Holdings Inc., a Delaware corporation (the “Company”), the Investors listed on Schedule A hereto and the Key Holders listed on Schedule B hereto. R E C I T A L S: A. The Company, the Investors in the Company’s Series Seed Preferred Stock and Series 2 Seed Preferred Stock listed on Schedule A thereto, and the holders of the Company’s Common Stock listed on Schedule B thereto are parties to the Right of First Refusal Agreement dated as of April 7, 2014, as amended by Amendment No. 1 to Right of First Refusal Agreement dated as of December 3, 2014 (as so amended, the “Prior RoFR Agreement”). B. The Prior RoFR Agreement provides that it may only be amended or modified by a written instrument executed by the Company, Key Holders holding a majority of the shares of Transfer Stock then held by all of the Key Holders who are then providing services to the Company as officers, employees or consultants, and Investors holding a majority of the Common Stock issuable or issued upon conversion of the Series Seed Preferred Stock and Series 2 Seed Preferred Stock of the Company. C. The Investors executing this Agreement hold a majority of the Common Stock issuable or issued upon conversion of the Series Seed Preferred Stock and Series 2 Seed Preferred Stock of the Company; and the Key Holders executing this Amendment hold more than a majority of the shares of Transfer Stock held by all of the Key Holders who are currently providing services to the Company as officers, employees or consultants. D. On and after the date hereof, the Company intends to sell shares of its Series A Preferred Stock, par value $0.001 per share, of the Company (the “Series A Preferred Stock”) to new and current investors in the Company (collectively, the “Series A Investors”). E. As a condition to each Series A Investor’s purchase of shares of Series A Preferred Stock, the Company, the current Investors executing this Agreement, and the Key Holders have agreed to enter into this Agreement with each of the Series A Investors. F. The parties hereto desire to amend and restate the Prior RoFR Agreement in its entirety by this Agreement so as to afford the Series A Investors with the first refusal rights provided for herein.

AGREEMENT NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company, the Key Holders and the Investors agree as follows:

1.

Definitions.

1.1 “Affiliate” means, with respect to any specified Investor, any other Investor who directly or indirectly, controls, is controlled by or is under common control with such Investor, including, without limitation, any general partner, managing member, officer or director of such Investor, or any venture capital fund now or hereafter existing which is controlled by one or more general partners or managing members of, or shares the same management company with, such Investor. 1.2 “Capital Stock” means (a) shares of Preferred Stock, (b) shares of Common Stock, whether now outstanding or hereafter issued in any context, including, without limitation, upon the conversion of shares of Preferred Stock, and (c) shares of Common Stock issued or issuable upon exercise or conversion, as applicable, of stock options, warrants or other convertible securities of the Company, in each case now owned or subsequently acquired by any Key Holder, any Investor, or their respective successors or permitted transferees or assigns. For purposes of the number of shares of Capital Stock held by an Investor or Key Holder (or any other calculation based thereon), all shares of Preferred Stock shall be deemed to have been converted into Common Stock at the then-applicable conversion ratio. 1.3 “Change of Control” means a transaction or series of related transactions in which a person, or a group of related persons, acquires from stockholders of the Company shares representing more than fifty percent (50%) of the outstanding voting power of the Company. 1.4 “Common Stock” means shares of Common Stock of the Company, $0.001 par value per share. 1.5 “Company Notice” means a written notice from the Company notifying the selling Key Holder that the Company intends to exercise its Right of First Refusal as to some or all of the Transfer Stock with respect to any Proposed Key Holder Transfer. 1.6 “Investor Notice” means a written notice from an Investor notifying the Company and the selling Key Holder that such Investor intends to exercise its Secondary Refusal Right as to a portion of the Transfer Stock with respect to any Proposed Key Holder Transfer. 1.7 “Investors” means the persons named on Schedule A hereto, each person to whom the rights of an Investor are assigned pursuant to Section 7.9, and each person who hereafter becomes a signatory to this Agreement pursuant to Sections 7.8 and 7.11, as the context may require. 1.8 “Key Holders” means the persons named on Schedule B hereto, each person to whom the rights of a Key Holder are assigned pursuant to Section 3, and each person who hereafter becomes a signatory to this Agreement as a “Key Holder” as a condition to such person becoming a stockholder of the Company, as the context may require 1.9 “Preferred Stock” means, collectively, shares of the Company’s Series Seed Preferred Stock, Series 2 Seed Preferred Stock and Series A Preferred Stock.

2

1.10 “Proposed Key Holder Transfer” means any assignment, sale, offer to sell, pledge, mortgage, hypothecation, encumbrance, disposition of or any other like transfer or encumbering of any Transfer Stock (or any interest therein) proposed by any of the Key Holders. 1.11 “Proposed Transfer Notice” means written notice from a Key Holder setting forth the terms and conditions of a Proposed Key Holder Transfer. 1.12 “Prospective Transferee” means any person to whom a Key Holder proposes to make a Proposed Key Holder Transfer. 1.13 “Restated Certificate” means the Company’s Third Amended and Restated Certificate of Incorporation, as in effect on the date hereof and as the same may hereafter be amended from time to time. 1.14 “Right of First Refusal” means the right, but not an obligation, of the Company, or its permitted transferees or assigns, to purchase some or all of the Transfer Stock with respect to a Proposed Key Holder Transfer, on the terms and conditions specified in the Proposed Transfer Notice. 1.15 “Secondary Notice” means a written notice from the Company notifying the Investors and the selling Key Holder that the Company does not intend to exercise its Right of First Refusal as to all shares of Transfer Stock with respect to any Proposed Key Holder Transfer. 1.16 “Secondary Refusal Right” means the right, but not an obligation, of each Investor to purchase up to its pro rata portion (based upon the total number of shares of Capital Stock then held by all Investors) of any Transfer Stock not purchased by the Company pursuant to its Right of First Refusal, on the terms and conditions specified in the Proposed Transfer Notice. 1.17 “Transfer Stock” means shares of Capital Stock owned by a Key Holder as of the date hereof, or issued to a Key Holder after the date hereof (including, without limitation, in connection with any stock split, stock dividend, recapitalization, reorganization, or the like). 1.18 “Undersubscription Notice” means written notice from an Investor notifying the Company and the selling Key Holder that such Investor intends to exercise its option to purchase all or any portion of the Transfer Stock not purchased pursuant to the Secondary Refusal Right. 2.

Agreement Among the Company, the Investors and the Key Holders. 2.1

Right of First Refusal by Key Holders.

(a) Grant. Each Key Holder hereby unconditionally and irrevocably grants to the Company a Right of First Refusal to purchase all or any portion of Transfer Stock that such Key Holder may propose to transfer in a Proposed Key Holder Transfer, at the same price and on the same terms and conditions as those offered to the Prospective Transferee.

3

(b) Notice. Each Key Holder proposing to make a Proposed Key Holder Transfer must deliver a Proposed Transfer Notice to the Company and each of the Investors not later than forty-five (45) days prior to the consummation of such Proposed Key Holder Transfer. Such Proposed Transfer Notice shall contain the material terms and conditions (including price and form of consideration) of the Proposed Key Holder Transfer, the identity of the Prospective Transferee and the intended date of the Proposed Key Holder Transfer. To exercise its Right of First Refusal under this Section 2, the Company must deliver a Company Notice to the selling Key Holder within fifteen (15) days after delivery of the Proposed Transfer Notice. (c) Grant of Secondary Refusal Right to Investors. Each Key Holder hereby unconditionally and irrevocably grants to the Investors a Secondary Refusal Right to purchase all or any portion of the Transfer Stock not purchased by the Company pursuant to the Right of First Refusal, as provided in this Section 2.1(c). If the Company does not intend to exercise its Right of First Refusal with respect to all Transfer Stock subject to a Proposed Key Holder Transfer, the Company must deliver a Secondary Notice to the selling Key Holder and to each Investor to that effect no later than fifteen (15) days after the selling Key Holder delivers the Proposed Transfer Notice to the Company. To exercise its Secondary Refusal Right, an Investor must deliver an Investor Notice to the selling Key Holder and the Company within ten (10) days after the Company’s deadline for its delivery of the Secondary Notice as provided in the preceding sentence. (d) Undersubscription of Transfer Stock. If options to purchase have been exercised by the Company and the Investors with respect to some but not all of the Transfer Stock by the end of the ten (10) day period specified in the last sentence of Section 2.1(c) (the “Investor Notice Period”), then the Company shall, immediately after the expiration of the Investor Notice Period, send written notice (the “Company Undersubscription Notice”) to those Investors who fully exercised their Secondary Refusal Right within the Investor Notice Period (the “Exercising Investors”). Each Exercising Investor shall, subject to the provisions of this Section 2.1(d), have an additional option to purchase all or any part of the balance of any such remaining unsubscribed shares of Transfer Stock on the terms and conditions set forth in the Proposed Transfer Notice. To exercise such option, an Exercising Investor must deliver an Undersubscription Notice to the selling Key Holder and the Company within ten (10) days after the expiration of the Investor Notice Period. In the event there are two (2) or more such Exercising Investors that choose to exercise the last-mentioned option for a total number of remaining shares in excess of the number available, the remaining shares available for purchase under this Section 2.1(d) shall be allocated to such Exercising Investors pro rata based on the number of shares of Transfer Stock such Exercising Investors have elected to purchase pursuant to the Secondary Refusal Right (without giving effect to any shares of Transfer Stock that any such Exercising Investor has elected to purchase pursuant to the Company Undersubscription Notice). If the options to purchase the remaining shares are exercised in full by the Exercising Investors, the Company shall immediately notify all of the Exercising Investors and the selling Key Holder of that fact. (e) Consideration; Closing. If the consideration proposed to be paid for the Transfer Stock is in property, services or other non-cash consideration, the fair market value of the consideration shall be as determined in good faith by the Company’s Board of

4

Directors and as set forth in the Company Notice. If the Company or any Investor cannot for any reason pay for the Transfer Stock in the same form of non-cash consideration, the Company or such Investor may pay the cash value equivalent thereof, as determined in good faith by the Board of Directors and as set forth in the Company Notice. The closing of the purchase of Transfer Stock by the Company and the Investors shall take place, and all payments from the Company and the Investors shall have been delivered to the selling Key Holder, by the later of (i) the date specified in the Proposed Transfer Notice as the intended date of the Proposed Key Holder Transfer; and (ii) forty-five (45) days after delivery of the Proposed Transfer Notice. 2.2

[Intentionally Omitted].

2.3

Effect of Failure to Comply.

(a) Transfer Void; Equitable Relief. Any Proposed Key Holder Transfer not made in compliance with the requirements of this Agreement shall be null and void ab initio, shall not be recorded on the books of the Company or its transfer agent and shall not be recognized by the Company. Each party hereto acknowledges and agrees that any breach of this Agreement would result in substantial harm to the other parties hereto for which monetary damages alone could not adequately compensate. Therefore, the parties hereto unconditionally and irrevocably agree that any non-breaching party hereto shall be entitled to seek protective orders, injunctive relief and other remedies available at law or in equity (including, without limitation, seeking specific performance or the rescission of purchases, sales and other transfers of Transfer Stock not made in strict compliance with this Agreement). (b) Violation of Refusal Rights. If any Key Holder becomes obligated to sell any Transfer Stock to the Company or any Investor under this Agreement and fails to deliver such Transfer Stock in accordance with the terms of this Agreement, the Company and/or any such Investors may, at its option, in addition to all other remedies it may have, send to such Key Holder the purchase price for such Transfer Stock as is herein specified and transfer to the name of the Company or such Investor (or request that the Company effect such transfer in the name of an Investor) on the Company’s books any certificates, instruments, or book entry representing the Transfer Stock to be sold. 3.

Exempt Transfers.

3.1 Exempted Transfers. Notwithstanding the foregoing or anything to the contrary herein, the provisions of Section 2.1 shall not apply (a) in the case of a Key Holder that is an entity, upon a transfer by such Key Holder to its stockholders, members, partners or other equity holders; (b) to a repurchase of Transfer Stock from a Key Holder by the Company at a price no greater than that originally paid by such Key Holder for such Transfer Stock and pursuant to an agreement containing vesting and/or repurchase provisions approved by a majority of the Board of Directors; (c) to a pledge of Transfer Stock that creates a mere security interest in the pledged Transfer Stock, provided that the pledgee thereof agrees in writing in advance to be bound by and comply with all applicable provisions of this Agreement to the same extent as if it were the Key Holder making such pledge; or (d) in the case of a Key Holder that is a natural person, upon a transfer of Transfer Stock by such Key Holder made for bona fide estate planning purposes, either during his or her lifetime or on death by will or intestacy to his or her

5

spouse, child (natural or adopted), or any other direct lineal descendant of such Key Holder (or his or her spouse) (all of the foregoing collectively referred to as “Family Members”), or any other person approved by the Board of Directors of the Company, or any custodian or trustee of any trust, partnership or limited liability company for the benefit of, or the ownership interests of which are owned wholly by such Key Holder or any such family members; provided that in the case of clause(s) (a), (c), or (d), the Key Holder shall deliver prior written notice to the Company at least ten (10) days prior to effecting such pledge, gift or transfer, such shares of Transfer Stock shall at all times remain subject to the terms and restrictions set forth in this Agreement, and such transferee shall, as a condition to the receipt of such pledge, gift or transfer, deliver a counterpart signature page to this Agreement as confirmation that such transferee shall be bound by all the terms and conditions of this Agreement as a Key Holder (but only with respect to the securities so transferred to the transferee), including the obligations of a Key Holder with respect to Proposed Key Holder Transfers of such Transfer Stock pursuant to Section 2.1. 3.2 Exempted Offerings. Notwithstanding the foregoing or anything to the contrary herein, the provisions of Section 2 shall not apply to the sale of any Transfer Stock (a) to the public in an offering pursuant to an effective registration statement under the Securities Act of 1933, as amended (a “Public Offering”); or (b) pursuant to a Deemed Liquidation (as defined in the Restated Certificate). 4. Legend. Each certificate, instrument, or book entry representing shares of Transfer Stock held by the Key Holders or issued to any permitted transferee in connection with a transfer permitted by Section 3 hereof shall be notated with the following legend: THE SALE, PLEDGE, HYPOTHECATION, OR TRANSFER OF THE SECURITIES REPRESENTED HEREBY IS SUBJECT TO, AND IN CERTAIN CASES PROHIBITED BY, THE TERMS AND CONDITIONS OF A CERTAIN RIGHT OF FIRST REFUSAL AGREEMENT BY AND AMONG THE STOCKHOLDER, THE CORPORATION AND CERTAIN OTHER HOLDERS OF STOCK OF THE CORPORATION. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE CORPORATION. Each Key Holder agrees that the Company may instruct its transfer agent to impose transfer restrictions on the shares notated with the legend referred to in this Section 4 above to enforce the provisions of this Agreement, and the Company agrees to promptly do so. The legend shall be removed upon termination of this Agreement at the request of the holder. 5.

Lock-Up.

5.1 Agreement to Lock-Up. Each Key Holder hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the Company’s initial public offering (the “IPO”) and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (l80) days), or such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports; and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4),

6

or any successor provisions or amendments thereto), (a) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of Capital Stock held immediately prior to the effectiveness of the registration statement for the IPO; or (b) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Capital Stock, whether any such transaction described in clause (a) or (b) above is to be settled by delivery of Capital Stock or other securities, in cash or otherwise. The foregoing provisions of this Section 5 shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, and shall only be applicable to the Key Holders if all officers, directors and holders of more than one percent (1%) of the outstanding Common Stock (after giving effect to the conversion into Common Stock of all outstanding Preferred Stock) enter into similar agreements. The underwriters in connection with the IPO are intended third-party beneficiaries of this Section 5 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Key Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in the IPO that are consistent with this Section 5 or that are necessary to give further effect thereto. 5.2 Stop Transfer Instructions. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the shares of Capital Stock of each Key Holder (and transferees and assignees thereof) until the end of such restricted period. 6.

Drag-Along Rights.

6.1 Definitions. For purposes of this Section 6, a “Sale of the Company” shall mean either a Change of Control or (b) any other transaction that qualifies as a “Deemed Liquidation” as defined in the Restated Certificate. 6.2 Actions to be Taken. In the event that (i) the Board of Directors of the Company, (ii) the holders of at least 66.67% of the then outstanding shares of Common Stock, voting as a separate class of shares from all other issued and outstanding series and classes of Capital Stock (the “Electing Common Holders”), and (iii) the holders of a majority of the issued and outstanding shares of Preferred Stock, voting together as a single class on an as-converted-to Common Stock basis (the “Electing Preferred Holders”; and collectively with the Electing Common Holders, the “Electing Holders”), approve a Sale of the Company in writing, specifying that this Section 6 shall apply to such transaction, then each Key Holder, each Investor and the Company hereby agree to the following: (a) if such transaction requires stockholder approval, with respect to all shares of Capital Stock that such Key Holder or Investor owns or over which such Key Holder or Investor otherwise exercises voting power, to vote (in person, by proxy or by action by written consent, as applicable) all such shares of Capital Stock in favor of, and adopt, such Sale of the Company (together with any related amendment to the Restated Certificate required in order to implement such Sale of the Company) and to vote in opposition to any and all other proposals that could reasonably be expected to delay or impair the ability of the Company to consummate such Sale of the Company;

7

(b) if such transaction is to be consummated as a stock sale, to sell the same proportion of shares of Capital Stock beneficially held by such Key Holder or Investor as is being sold by the Electing Holders to the person to whom the Electing Holders propose to sell their shares of Capital Stock, and, except as permitted in Section 6.3 below, on the same terms and conditions as the Electing Holders; (c) to execute and deliver all related documentation and take such other action in support of the Sale of the Company as shall reasonably be requested by the Company or the Electing Holders in order to carry out the terms and provision of this Section 6, including, without limitation, executing and delivering instruments of conveyance and transfer, and any purchase agreement, merger agreement, indemnity agreement, escrow agreement, consent, waiver, governmental filing, share certificates duly endorsed for transfer (free and clear of impermissible liens, claims and encumbrances), and any similar or related documents; (d) not to deposit, and to cause their Affiliates not to deposit, except as provided in this Agreement, any shares of Capital Stock owned by such party or Affiliate in a voting trust or subject any shares of Capital Stock to any arrangement or agreement with respect to the voting of such shares, unless specifically requested to do so by the acquiror in connection with the Sale of the Company; (e) to refrain from exercising any dissenters’ rights or rights of appraisal under applicable law at any time with respect to such Sale of the Company; (f) if the consideration to be paid in exchange for the shares of Capital Stock pursuant to this Section 6 includes any securities and due receipt thereof by any Key Holder or Investor would require under applicable law (x) the registration or qualification of such securities or of any person as a broker or dealer or agent with respect to such securities; or (y) the provision to any Key Holder or Investor of any information other than such information as a prudent issuer would generally furnish in an offering made solely to “accredited investors” as defined in Regulation D promulgated under the Securities Act of 1933, as amended, the Company may cause to be paid to any such Key Holder or Investor in lieu thereof, against surrender of the shares of Capital Stock which would have otherwise been sold by such Key Holder or Investor, an amount in cash equal to the fair value (as determined in good faith by the Company) of the securities which such Key Holder or Investor would otherwise receive as of the date of the issuance of such securities in exchange for such shares of Capital Stock; and (g) in the event that the Electing Holders, in connection with such Sale of the Company, appoint a stockholder representative (the “Stockholder Representative”) with respect to matters affecting the Key Holders and Investors under the applicable definitive transaction agreements following consummation of such Sale of the Company, (x) to consent to (i) the appointment of such Stockholder Representative, (ii) the establishment of any applicable escrow, expense or similar fund in connection with any indemnification or similar obligations, and (iii) the payment of such Key Holder’s or Investor’s pro rata portion (from the applicable escrow or expense fund or otherwise) of any and all reasonable fees and expenses to such Stockholder Representative in connection with such Stockholder Representative’s services and duties in connection with such Sale of the Company and its related service as the representative of the Key Holders and Investor, and (y) not to assert any claim or commence any suit against the Stockholder

8

Representative or any other Key Holder or Investor with respect to any action or inaction taken or failed to be taken by the Stockholder Representative in connection with its service as the Stockholder Representative, absent fraud or willful misconduct. 6.3 Exceptions. Notwithstanding the foregoing, each Key Holder and Investor will not be required to comply with Section 6.2 above in connection with any proposed Sale of the Company (the “Proposed Sale”), unless: (a) any representations and warranties to be made by such Key Holder or Investor in connection with the Proposed Sale are limited to representations and warranties related to authority, ownership and the ability to convey title to such shares of Capital Stock, including, but not limited to, representations and warranties that (i) such Key Holder or Investor holds all right, title and interest in and to the shares of Capital Stock that such Key Holder or Investor purports to hold, free and clear of all liens and encumbrances, (ii) the obligations of such Key Holder or Investor in connection with the transaction have been duly authorized, if applicable, (iii) the documents to be entered into by such Key Holder or Investor have been duly executed by such Key Holder or Investor and delivered to the acquiror and are enforceable against such Key Holder or Investor in accordance with their respective terms; and (iv) neither the execution and delivery of documents to be entered into in connection with the transaction, nor the performance of such Key Holder’s or Investor’s obligations thereunder, will cause a breach or violation of the terms of any agreement, law or judgment, order or decree of any court or governmental agency applicable to such Key Holder or Investor; (b) such Key Holder or Investor shall not be liable for the inaccuracy of any representation or warranty made by any other party in connection with the Proposed Sale, other than the Company but solely to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company; (c) the liability for indemnification, if any, of such Key Holder or Investor in the Proposed Sale and for the inaccuracy of any representations and warranties made by the Company or its stockholders in connection with such Proposed Sale, is several and not joint with any other person or party (except to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company) and is pro rata in proportion to, and does not exceed, the amount of consideration paid to such Key Holder or Investor in connection with such Proposed Sale; (d) upon the consummation of the Proposed Sale (i) each holder of each class or series of the Company’s stock will receive the same form of consideration for their shares of such class or series as is received by other holders in respect of their shares of such same class or series of stock, (ii) each holder of each series of the Preferred Stock will receive the same amount of consideration per share with respect to such series of the Preferred Stock as is received by the other holders of the same series of the Preferred Stock, (iii) each holder of Common Stock will receive the same amount of consideration per share of Common Stock as is received by other holders in respect of their shares of Common Stock, and (iv) the aggregate consideration receivable by all holders of the Preferred Stock and Common Stock shall be allocated among the holders of Preferred Stock and Common Stock on the basis of the relative liquidation preferences to which the holders of Preferred Stock and the holders of Common Stock are entitled in a Deemed

9

Liquidation (assuming for this purpose that the Proposed Sale is a Deemed Liquidation) in accordance with the Restated Certificate in effect immediately prior to the Proposed Sale; provided, however, that, notwithstanding the foregoing, if the consideration to be paid in exchange for the shares of Capital Stock held by a Key Holder or Investor, as applicable, pursuant to this Section 6.3(d) includes any securities, and the due receipt thereof by any Key Holder or Investor would require under applicable law (x) the registration or qualification of such securities or of any person as a broker or dealer or agent with respect to such securities; or (y) the provision to any Key Holder or Investor of any information other than such information as a prudent issuer would generally furnish in an offering made solely to “accredited investors” as defined in Regulation D promulgated under the Securities Act of 1933, as amended, the Company may cause to be paid to any such Key Holder or Investor in lieu thereof, against surrender of the shares of Capital Stock held by such Key Holder or Investor, as applicable, which would have otherwise been sold by such Key Holder or Investor, an amount in cash equal to the fair value (as determined in good faith by the Company) of the securities which such Key Holder or Investor would otherwise receive as of the date of the issuance of such securities in exchange for the shares of Capital Stock held by such Key Holder or Investor. 7.

Miscellaneous.

7.1 Term. This Agreement shall automatically terminate upon the earliest of (a) immediately prior to the consummation of the Company’s IPO; (b) the date that the Company first becomes subject to the periodic reporting requirements under Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended; and (c) the consummation of a Deemed Liquidation. 7.2 Stock Split. All references to numbers of shares in this Agreement shall be appropriately adjusted to reflect any stock dividend, split, combination or other recapitalization affecting the Capital Stock occurring after the date of this Agreement. 7.3 Ownership. Each Key Holder represents and warrants that such Key Holder is the sole legal and beneficial owner of the shares of Transfer Stock subject to this Agreement and that no other person or entity has any interest in such shares (other than a community property interest as to which the holder thereof has acknowledged and agreed in writing to the restrictions and obligations hereunder). 7.4 Dispute Resolution. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Delaware and to the jurisdiction of the United States District Court for the District of Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Delaware or the United States District Court for the District of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

10

WAIVER OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. 7.5 Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on Schedule A or Schedule B hereof, as the case may be, or to such email address, facsimile number or address as subsequently modified by written notice given in accordance with this Section 7.5. If notice is given to the Company, a copy shall also be sent to Michael Dunn, Esq., Phillips & Reiter, PLLC, 6805 N. Capital of Texas Highway, Suite 318, Austin, Texas 78731. 7.6 Entire Agreement. This Agreement (including, the Exhibits and Schedules hereto) constitutes the full and entire understanding and agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements relating to the subject matter hereof including, without limitation, the Prior RoFR Agreement. 7.7 Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative. 11

7.8 Amendment; Waiver and Termination. This Agreement may be amended, modified or terminated (other than pursuant to Section 7.1 above) and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument executed by (a) the Company, (b) the Key Holders holding a majority of the shares of Transfer Stock then held by all of the Key Holders who are then providing services to the Company as officers, employees or consultants, and (c) the holders of a majority of the shares of Common Stock issued or issuable upon conversion of the then outstanding shares of Preferred Stock held by the Investors (voting as a single class and on an asconverted basis). Any amendment, modification, termination or waiver so effected shall be binding upon the Company, the Investors, the Key Holders and all of their respective successors and permitted assigns whether or not such party, assignee or other shareholder entered into or approved such amendment, modification, termination or waiver. Notwithstanding the foregoing, (i) this Agreement may not be amended, modified or terminated and the observance of any term hereunder may not be waived with respect to any Investor or Key Holder without the written consent of such Investor or Key Holder unless such amendment, modification, termination or waiver applies to all Investors and Key Holders, respectively, in the same fashion, and (ii) the consent of the Key Holders shall not be required for any amendment, modification, termination or waiver if such amendment, modification, termination or waiver does not apply to the Key Holders, (iii) Schedule A hereto may be amended by the Company from time to time to add information regarding additional investors in Preferred Stock without the consent of the other parties hereto, and (iv) Schedule B hereto may be amended by the Company from time to time to add information regarding additional purchasers of Common Stock of the Company who were required, as a condition to becoming a holder of Common Stock, to be a Key Holder under this Agreement without the consent of the other parties hereto. The Company shall give prompt written notice of any amendment, modification or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, modification, termination or waiver. No waivers of or exceptions to any term, condition or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision. 7.9

Assignment of Rights.

(a) The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and permitted assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. (b) Any successor or permitted assignee of any Key Holder, including any Prospective Transferee who purchases shares of Transfer Stock in accordance with the terms hereof, shall deliver to the Company and the Investors, as a condition to any transfer or assignment, a counterpart signature page hereto pursuant to which such successor or permitted assignee shall confirm their agreement to be subject to and bound by all of the provisions set forth in this Agreement that were applicable to the predecessor or assignor of such successor or permitted assignee.

12

(c) The rights of the Investors hereunder are not assignable without the Company’s written consent (which shall not be unreasonably withheld, delayed or conditioned), except (i) by an Investor to any Affiliate, or (ii) to an assignee or transferee who acquires at least 100,000 shares of Capital Stock (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction), it being acknowledged and agreed that any such assignment, including an assignment contemplated by the preceding clauses (i) or (ii) shall be subject to and conditioned upon any such assignee’s delivery to the Company and the other Investors of a counterpart signature page hereto pursuant to which such assignee shall confirm their agreement to be subject to and bound by all of the provisions set forth in this Agreement that were applicable to the assignor of such assignee. (d) Except in connection with an assignment by the Company by operation of law to the acquirer of the Company, the rights and obligations of the Company hereunder may not be assigned under any circumstances. 7.10 Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision. 7.11 Additional Investors. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of Series A Preferred Stock, or Warrants to purchase shares of Series A Preferred Stock, after the date hereof, any purchaser of such shares of Series A Preferred Stock or recipient of such Warrants, as the case may be, may become a party to this Agreement by executing and delivering an additional counterpart signature page to this Agreement or an Adoption Agreement agreeing to be bound by this Agreement, and thereafter shall be deemed an “Investor” for all purposes hereunder. 7.12 Governing Law. This Agreement shall be governed by the internal law of the State of Delaware, without regard to conflicts of law principles. 7.13 Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 7.14 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. 7.15 Specific Performance. In addition to any and all other remedies that may be available at law in the event of any breach of this Agreement, each party hereto shall be entitled to specific performance of the agreements and obligations of the other parties hereunder and to such other injunction or other equitable relief as may be granted by a court of competent jurisdiction. 7.16 Consent of Spouse. If any Key Holder is married on the date of this Agreement, such Key Holder’s spouse shall execute and deliver to the Company a Consent of 13

Spouse in the form of Exhibit A hereto (“Consent of Spouse”), effective on the date hereof. Notwithstanding the execution and delivery thereof, such consent shall not be deemed to confer or convey to the spouse any rights in shares of Transfer Stock that do not otherwise exist by operation of law or the agreement of the parties. If any Key Holder should marry or remarry subsequent to the date of this Agreement, such Key Holder shall within thirty (30) days thereafter obtain his/her new spouse’s acknowledgement of and consent to the existence and binding effect of all restrictions contained in this Agreement by causing such spouse to execute and deliver a Consent of Spouse acknowledging the restrictions and obligations contained in this Agreement and agreeing and consenting to the same. [Remainder of Page Intentionally Left Blank]

14

IN WITNESS WHEREOF, the parties have executed this Amended and Restated Right of First Refusal Agreement as of the date first written above. VIRTUIX HOLDINGS INC. By: Jan Goetgeluk, Chief Executive Officer

KEY HOLDERS:

JAN GOETGELUK

INVESTORS: Signatures Incorporated by Reference from the Adoption Agreement Signed by the Holders of a Majority of the Series Seed Preferred Stock and Series 2 Seed Preferred Stock that are Parties to the Prior RoFR Agreement. Signatures of Holders of Series A Preferred Stock Are Incorporated by Reference from the Subscription Agreements Relating to Their Purchase of Series A Preferred Stock (Per Section 2 Thereof).

SIGNATURE PAGE TO AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AGREEMENT

SCHEDULE A INVESTORS

Name and Address RADICAL INVESTMENTS LP c/o Radical Investments Management LLC 5424 Deloache Avenue Dallas, Texas 75220 Attention: President Fax: (214) 696-6310 with a copy to (which shall not constitute notice): Robert S. Hart 5424 Deloache Avenue Dallas, Texas 75220 Fax: (214) 696-3380 MAVERON EQUITY PARTNERS V, LP 411 1st Avenue South, Suite 600 Seattle, Washington 98104 MAVERON V ENTREPRENEUR’S FUND, LP 411 1st Avenue South, Suite 600 Seattle, Washington 98104 MEP ASSOCIATES V, LP 411 1st Avenue South, Suite 600 Seattle, Washington 98104 SKM PARTNERSHIP, LTD. 5621 Tuppor Lake Drive Houston, Texas 77050 KEITH A. KREUER 18701 East Cool Breeze Lane Montgomery, Texas 77356 DOUGLAS J. ERWIN 4 Briarwood Court Houston, Texas 77019 NORIAKI OKUBO 122 Serangoon Avenue 3, 07-01 Singapore, Singapore 554775

TEKTON VENTURES LLC 50 California Street, Suite 3200 San Francisco, California 94111 STARTCAPS SL Calle General Arrando 9 BIS Madrid, Spain 28010 MICHAEL MCGOVERN 18 Berkley Highway The Woodlands, Texas 77385 ANTONIE WOBBE PLOEGSMA One Waterway Court, 6E The Woodlands, Texas 77380 BERNARD GOETGELUK Bergstraat 42 Merelbeke 9820 Belgium BHV ENTREPRENEURSHIP FUND II, LP 275 Greenwich Street, #5A New York, New York 10007 QUEENSBRIDGE VENTURE PARTNERS, LLC 1801 Century Park East, Suite 1132 Los Angeles, California 90067 UGO DE CHARETTE South Ridge 1, unit 2101 Downtown Burj Khalifa Dubai Dubai, 214967 United Arab Emirates VESTCESS, LLC Attention: Federico Gonzalez, President 9400 Bamboo Road Houston, Texas 77041 DAVID ROWE 42 arkwright road London, England, nw36bh United Kingdom

SWAD 1608 LTD. Attention: Arthur Sharplin, Trustee of SWAD Management Trust 3205 Aztec Fall Cove Austin, Texas 78746 GREGORY NOVAK 1000 Louisiana Street, Fifty Third Floor Houston, Texas 77002 Fax: (210) 860-9252 STEPHEN COOK 1503 Sheltons Bend Court Houston, Texas 77077 MICHAEL JONES 313 Lakeside Lane Houston, Texas 77058 FOUR WINDS CAPITAL LP Attention: Samuel Goodner, Manager 3400 Woodcutters Way Austin, Texas 78746 COLTON BAKER JACOBS REVOCABLE LIVING TRUST Attention: Colton Jacobs, Trustee 5931 Darwin Court Carlsbad, California 92008 S&H CAPITAL INVESTMENT HOLDINGS, LP Attention: Hayden Hill, Manager P.O. Box 40792 Houston, Texas 77240 SEEDINVEST HOLDINGS I, LLC, VIRTUIX SERIES ONLY P.O. Box 171305 Salt Lake City, Utah 84117

SCENTAN VENTURE PARTNERS LIMITED 1903 World Wide House 19 Des Voeux Road Central HK YOSHIAKI MURAKAMI 6 Cuscaden Walk #94-02 The Boulevard Residences Singapore

SSSS INVESTMENT LLC 9036 Marlive Lane Houston, Texas 77025 JOHN BESS LLC 3 Wyndmere Lane Mendham, New Jersey 07945 ROBERT W. MARK 1100 Louisiana, Suite 4800 Houston, Texas 77002 2020 VENTURES, LP 121 Deer Hollow Road San Anselmo, California 94960 STEPHEN CARPENTER 6067 Post Oak Green Lane Houston, Texas 77055 JONATHAN R. HARMS 1837 Dart Street Houston, Texas 77007 GERALD FALLS P.O. Box 2202 Cypress, Texas 77410 VIKA GUPTA 5035 Yarwell Drive Houston, Texas 77096 DANIEL JONES 716 S. Overlook Drive Alexandria, Virginia 22305 H. ALBERT NAPIER 193 W. Ledge Stone Drive Fredericksburg, Texas 78624 VENTURE LENDING & LEASING VII, LLC 104 La Mesa Drive Portola Valley, California 94028

WAUTER HELLEBUYCK & JASMIEN DECLERCQ Gansetek Straat 9686 Etikhove, Belgium

THIRD COAST VR, LLC __________________________ __________________________ __________________________

VIRTUIX SERIES 2 SEED INVESTMENT LLC P.O. Box 171305 Salt Lake City, Utah 84117

RANDY B. CRATH 15 Courtlandt Place Houston, Texas 77006

451 WE VIRTUIX LLC _________________________ _________________________ _________________________

WALDEN WOODS HOLDINGS LLC 889 Tanglewood Drive Concord, Massachusetts 01742

WEFUNDS LLC, WEFUNDS VIRTUIX I __________________________ __________________________ __________________________

SCHEDULE B KEY HOLDERS

Name and Address Jan Goetgeluk __________________ __________________ __________________

Number of Shares Held 5,500,000

EXHIBIT A CONSENT OF SPOUSE] I, [____________________], spouse of [______________], acknowledge that I have read the Amended and Restated Right of First Refusal Agreement, dated as of March 10, 2016, to which this Consent is attached as Exhibit A (the “Agreement”), and that I know the contents of the Agreement. I am aware that the Agreement contains provisions regarding certain rights to certain other holders of Capital Stock of the Company upon a proposed transfer of shares of Transfer Stock of the Company which my spouse may own including any interest I might have therein. I hereby agree that my interest, if any, in any shares of Transfer Stock of the Company subject to the Agreement shall be irrevocably bound by the Agreement and further understand and agree that any community property interest I may have in such shares of Transfer Stock of the Company shall be similarly bound by the Agreement. I am aware that the legal, financial and related matters contained in the Agreement are complex and that I am free to seek independent professional guidance or counsel with respect to this Consent. I have either sought such guidance or counsel or determined after reviewing the Agreement carefully that I will waive such right. Dated as of the [__] day of [__________, 2016.

Signature

Print Name

VOTING AGREEMENT THIS VOTING AGREEMENT (this “Agreement”), is made and entered into as of this 10th day of March, 2016, by and among Virtuix Holdings Inc., a Delaware corporation (the “Company”), the holders of the Company’s Series Seed Preferred Stock, par value $0.001 per share (“Series Seed Preferred”), Series 2 Seed Preferred Stock, $0.001 par value per share (“Series 2 Seed Preferred”), and Series A Preferred Stock, $0.001 par value per share (“Series A Preferred”; and referred to herein collectively with the Series Seed Preferred and Series 2 Seed Preferred, as the “Preferred Stock”), listed and to be listed on Schedule A (together with any subsequent investors, or transferees who become parties hereto as “Investors” pursuant to Sections 6.1(a) or 6.2 below, the “Investors”), and those certain stockholders of the Company and holders of options to acquire shares of the capital stock of the Company listed on Schedule B (together with any subsequent stockholders or option holders, or any transferees, who become parties hereto as “Key Holders” pursuant to Sections 6.1(b) or 6.2 below, the “Key Holders”; and referred to herein collectively with the Investors as the “Stockholders”). R E C I T A L S: A. Concurrently with the execution of this Agreement, the Company will commence the sale of shares of the Series A Preferred pursuant to Subscription Agreements to be entered into by the Company with the Investors in the Series A Preferred. B. In connection with the Series A Preferred financing, the Company and the Stockholders desire to establish the rights of certain of the Stockholders to designate the directors who will serve on the Board of Directors of the Company (the “Board”) during the term of this Agreement. NOW, THEREFORE, the parties hereby agree as follows: 1.

Voting Provisions Regarding Board of Directors.

1.1 Size of the Board. Each Stockholder agrees to vote, or cause to be voted, all Shares (as defined below) owned by such Stockholder, or over which such Stockholder has voting control, from time to time and at all times, in whatever manner as shall be necessary to ensure that the size of the Board shall be set and remain at three (3) directors. For purposes of this Agreement, the term “Shares” shall mean and include any securities of the Company the holders of which are entitled to vote for members of the Board, including without limitation, all shares of Common Stock, Series Seed Preferred, Series 2 Seed Preferred, and Series A Preferred, by whatever name called, now owned or subsequently acquired by a Stockholder, however acquired, whether through stock splits, stock dividends, reclassifications, recapitalizations, similar events or otherwise. 1.2 Board Composition. Each Stockholder agrees to vote, or cause to be voted, all Shares owned by such Stockholder, or over which such Stockholder has voting control, from time to time and at all times, in whatever manner as shall be necessary to ensure that at each annual or special meeting of stockholders at which an election of directors is held or pursuant to any written consent of the stockholders, the following persons shall be elected to the Board:

(a) The Company’s Chief Executive Officer, who initially shall be Jan Goetgeluk (the “CEO Director”), provided that if for any reason the CEO Director shall cease to serve as the Chief Executive Officer of the Company, each of the Stockholders shall promptly vote their respective Shares (i) to remove the former Chief Executive Officer from the Board if such person has not resigned as a member of the Board; and (ii) to elect such person’s replacement as Chief Executive Officer of the Company as the new CEO Director; (b) One individual designated by the Key Holders (initially vacant) (the “Key Holder Director”); and (c) One individual (the “Preferred Director”) who is designated by the holders of a majority of the outstanding shares of the Preferred Stock (initially vacant), voting or acting on an as-if-converted-to-Common Stock basis (the “Majority Preferred Holders”); provided, that until such time as the Board receives a written directive from the Majority Preferred Holders designating the director to serve as the Preferred Director under this Section 1.2(c), the Preferred Director shall be an Investor who is designated by the unanimous consent of the directors that have been elected or appointed to serve on the Board pursuant to Sections 1.2(a) and 1.2(b) hereof. 1.3 Failure to Designate a Board Member. In the absence of any designation from the Stockholders who have the right to designate a director as specified above, the director previously designated by them and then serving shall be re-elected if still eligible to serve as provided herein. 1.4 Removal of Board Members. Each Stockholder also agrees to vote, or cause to be voted, all Shares owned by such Stockholder, or over which such Stockholder has voting control, from time to time and at all times, in whatever manner as shall be necessary to ensure that: (a) no director elected pursuant to Section 1.2(b) may be removed from office unless such removal is directed or approved by the affirmative vote of the holders of a majority of the Shares held by the Key Holders; and no director elected pursuant to Section 1.2(c) may be removed from office unless such removal is directed or approved by the Majority Preferred Holders; and (b) any vacancies created by the resignation, removal or death of a director elected pursuant to Sections 1.2 shall be filled pursuant to the provisions of this Section 1. All Stockholders agree to execute any written consents required to perform the obligations of this Agreement, and the Company agrees, at the request of any Key Holder or the Majority Preferred Holders, to call a special meeting of stockholders for the purpose of electing directors. 1.5 No Liability for Election of Recommended Directors. No Stockholder shall have any liability as a result of designating a person for election as a director for any act or omission by such designated person in his or her capacity as a director of the Company, nor shall any Stockholder have any liability as a result of voting for any such designee in accordance with the provisions of this Agreement. 2

2. Vote to Increase Authorized Common Stock. Each Stockholder agrees to vote or cause to be voted all Shares owned by such Stockholder, or over which such Stockholder has voting control, from time to time and at all times, in whatever manner as shall be necessary to increase the number of authorized shares of Common Stock from time to time to ensure that there will be sufficient shares of Common Stock available for conversion of all of the shares of Preferred Stock outstanding at any given time. 3.

Remedies.

3.1 Covenants of the Company. The Company agrees to use its best efforts, within the requirements of applicable law, to ensure that the rights granted under this Agreement are effective and that the parties enjoy the benefits of this Agreement. Such actions include, without limitation, the use of the Company’s best efforts to cause the nomination and election of the directors as provided in this Agreement. 3.2 Irrevocable Proxy and Power of Attorney. Each party to this Agreement hereby constitutes and appoints as the proxies of the party and hereby grants a power of attorney to the Chief Executive Officer of the Company, and a designee of the Investors, and each of them, with full power of substitution, with respect to the matters set forth herein, including, without limitation, election of persons as members of the Board in accordance with Section 1 hereto and votes to increase authorized shares pursuant to Section 2 hereof, and hereby authorizes each of them to represent and vote, if and only if the party (i) fails to vote, or (ii) attempts to vote (whether by proxy, in person or by written consent), in a manner which is inconsistent with the terms of this Agreement, all of such party’s Shares in favor of the election of persons as members of the Board determined pursuant to and in accordance with the terms and provisions of this Agreement or the increase of authorized shares pursuant to and in accordance with the terms and provisions of Section 2 of this Agreement. Each of the proxy and power of attorney granted pursuant to the immediately preceding sentence is given in consideration of the agreements and covenants of the Company and the parties in connection with the transactions contemplated by this Agreement and, as such, each is coupled with an interest and shall be irrevocable unless and until this Agreement terminates or expires pursuant to Section 5 hereof. Each party hereto hereby revokes any and all previous proxies or powers of attorney with respect to the Shares and shall not hereafter, unless and until this Agreement terminates or expires pursuant to Section 5 hereof, purport to grant any other proxy or power of attorney with respect to any of the Shares, deposit any of the Shares into a voting trust or enter into any agreement (other than this Agreement), arrangement or understanding with any person, directly or indirectly, to vote, grant any proxy or give instructions with respect to the voting of any of the Shares, in each case, with respect to any of the matters set forth herein. 3.3 Specific Enforcement. Each party acknowledges and agrees that each party hereto will be irreparably damaged in the event any of the provisions of this Agreement are not performed by the parties in accordance with their specific terms or are otherwise breached. Accordingly, it is agreed that each of the Company and the Stockholders shall be entitled to an injunction to prevent breaches of this Agreement, and to specific enforcement of this Agreement and its terms and provisions in any action instituted in any court of the United States or any state having subject matter jurisdiction.

3

3.4 Remedies Cumulative. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative. 4.

“Bad Actor” Matters.

4.1 Representation. Each person with the right to designate or participate in the designation of a director pursuant to this Agreement hereby represents that none of the “bad actor” disqualifying events described in Rule 506(d)(1)(i)-(viii) promulgated under the Securities Act (a “Disqualification Event”) is applicable to such Person or any of its Rule 506(d) Related Parties, except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable. For purposes of this Agreement, “Rule 506(d) Related Party” shall mean with respect to any person any other person that is a beneficial owner of such first person’s securities for purposes of Rule 506(d) of the Securities Act. 4.2 Covenant. Each Person with the right to designate or participate in the designation of a director pursuant to this Agreement hereby agrees that it shall notify the Company promptly in writing in the event a Disqualification Event becomes applicable to such Person or any of its Rule 506(d) Related Parties, except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable. 5. Term. This Agreement shall be effective as of the date hereof and shall continue in effect until and shall terminate upon the earliest to occur of (a) the consummation of the Company’s first underwritten public offering of its Common Stock (other than a registration statement relating either to the sale of securities to employees of the Company pursuant to its stock option, stock purchase or similar plan or an SEC Rule 145 transaction); (b) the consummation of a Deemed Liquidation (as defined in the Company’s Third Amended and Restated Certificate of Incorporation); and (c) termination of this Agreement in accordance with Section 6.8 below. 6.

Miscellaneous. 6.1

Additional Parties.

(a) Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of Preferred Stock after the date hereof, as a condition to the issuance of such shares the Company shall require that any purchaser of Preferred Stock become a party to this Agreement by executing and delivering (i) the Adoption Agreement attached to this Agreement as Exhibit A, or (ii) a counterpart signature page hereto agreeing to be bound by and subject to the terms of this Agreement as an Investor and Stockholder hereunder. In either event, each such person thereafter shall be deemed an Investor and Stockholder for all purposes under this Agreement. (b) In the event that after the date of this Agreement, the Company enters into an agreement with any Person to issue shares of capital stock to such Person (other than to a purchaser of Preferred Stock described in Section 6.1(a) above), following which such person shall hold Shares constituting one percent (1%) or more of the Company’s then outstanding capital stock (treating for this purpose all shares of Common Stock issuable upon exercise of or conversion of outstanding options, warrants or convertible securities, as if exercised and/or converted or exchanged), then the Company shall cause such person, as a 4

condition precedent to entering into such agreement, to become a party to this Agreement by executing an Adoption Agreement in the form attached hereto as Exhibit A, agreeing to be bound by and subject to the terms of this Agreement as a Key Holder and Stockholder and thereafter such person shall be deemed a Key Holder and Stockholder for all purposes under this Agreement. 6.2 Transfers. Each transferee or assignee of any Shares subject to this Agreement shall continue to be subject to the terms hereof, and, as a condition precedent to the Company’s recognizing such transfer, each transferee or assignee shall agree in writing to be subject to each of the terms of this Agreement by executing and delivering an Adoption Agreement substantially in the form attached hereto as Exhibit A. Upon the execution and delivery of an Adoption Agreement by any transferee, such transferee shall be deemed to be a party hereto as if such transferee were the transferor and such transferee’s signature appeared on the signature pages of this Agreement and shall be deemed to be an Investor and Stockholder, or Key Holder and Stockholder, as applicable. The Company shall not permit the transfer of the Shares subject to this Agreement on its books or issue a new certificate representing any such Shares unless and until such transferee shall have complied with the terms of this Section 6.2. Each certificate instrument, or book entry representing the Shares subject to this Agreement if issued on or after the date of this Agreement shall be notated by the Company with the legend set forth in Section 6.12. 6.3 Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 6.4 Governing Law. This Agreement shall be governed by the internal law of the State of Delaware. 6.5 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. 6.6 Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 6.7 Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) 5

business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on Schedule A or Schedule B hereto, or to such email address, facsimile number or address as subsequently modified by written notice given in accordance with this Section 6.7. If notice is given to the Company, it shall be sent to Virtuix Holdings Inc., 1826 Kramer Lane, Suite H, Austin, Texas 78758, Attention: Jan Goetgeluk, Chief Executive Officer, Email: [email protected]. 6.8 Consent Required to Amend, Terminate or Waive. This Agreement may be amended or terminated and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument executed by (a) the Company; (b) the Key Holders holding a majority of the Shares then held by the Key Holders; and (c) the Majority Preferred Holders. Notwithstanding the foregoing: (a) this Agreement may not be amended or terminated and the observance of any term of this Agreement may not be waived with respect to any Investor or Key Holder without the written consent of such Investor or Key Holder unless such amendment, termination or waiver applies to all Investors or Key Holders, as the case may be, in the same fashion; (b) the consent of the Key Holders shall not be required for any amendment or waiver if such amendment or waiver either (A) is not directly applicable to the rights of the Key Holders hereunder; or (B) does not adversely affect the rights of the Key Holders in a manner that is different than the effect on the rights of the other parties hereto; (c) Schedule A hereto may be amended by the Company from time to time to add information regarding additional Investors in the Series A Preferred, or to facilitate the provisions of Section 6.1(a) hereof, without the consent of the other parties hereto; (d) Schedule B hereto may be amended by the Company from time to time to facilitate the provisions of Section 6.1(b) hereof without the consent of the other parties hereto; (e) any provision hereof may be waived by the waiving party on such party’s own behalf, without the consent of any other party; and (f) Sections 1.2(a) and 1.2(b) of this Agreement shall not be amended or waived without the written consent of the CEO Director and the Key Holder Director; and Section 1.2(c) of this Agreement shall not be amended or waived without the written consent of the Majority Preferred Holders. The Company shall give prompt written notice of any amendment, termination, or waiver hereunder to any party that did not consent in writing thereto. Any amendment, termination, or waiver effected in accordance with this Section 6.8 shall be binding on each party and all of such party’s successors and permitted assigns, whether or not any such party, successor or assignee entered into or approved such amendment, termination or waiver. For purposes of this Section 6.8, the requirement of a written instrument may be satisfied in the form of an action by written 6

consent of the Stockholders circulated by the Company and executed by the Stockholder parties specified, whether or not such action by written consent makes explicit reference to the terms of this Agreement. 6.9 Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default previously or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative. 6.10 Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision. 6.11 Entire Agreement. This Agreement (including the Exhibit hereto) constitutes the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled. 6.12 Share Certificate Legend. Each certificate, instrument, or book entry representing any Shares issued after the date hereof shall be notated by the Company with a legend reading substantially as follows: THE SHARES REPRESENTED HEREBY ARE SUBJECT TO A VOTING AGREEMENT, AS MAY BE AMENDED FROM TIME TO TIME, (A COPY OF WHICH MAY BE OBTAINED UPON WRITTEN REQUEST FROM THE COMPANY), AND BY ACCEPTING ANY INTEREST IN SUCH SHARES THE PERSON ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF THAT VOTING AGREEMENT. The Company, by its execution of this Agreement, agrees that it will cause the certificates instruments, or book entry evidencing the Shares issued after the date hereof to be notated with the legend required by this Section 6.12 of this Agreement, and it shall supply, free of charge, a copy of this Agreement to any holder of such Shares upon written request from such holder to the Company at its principal office. The parties to this Agreement do hereby agree that the failure to cause the certificates, instruments, or book entry evidencing the Shares to be notated with the legend required by this Section 6.12 herein and/or the failure of the Company to supply, free of charge, a copy of this Agreement as provided hereunder shall not affect the validity or enforcement of this Agreement.

7

6.13 Stock Splits, Stock Dividends, etc. In the event of any issuance of Shares of the Company’s voting securities hereafter to any of the Stockholders (including, without limitation, in connection with any stock split, stock dividend, recapitalization, reorganization, or the like), such Shares shall become subject to this Agreement and shall be notated with the legend set forth in Section 6.12. 6.14 Manner of Voting. The voting of Shares pursuant to this Agreement may be effected in person, by proxy, by written consent or in any other manner permitted by applicable law. For the avoidance of doubt, voting of the Shares pursuant to the Agreement need not make explicit reference to the terms of this Agreement. 6.15 Further Assurances. At any time or from time to time after the date hereof, the parties agree to cooperate with each other, and at the request of any other party, to execute and deliver any further instruments or documents and to take all such further action as the other party may reasonably request in order to evidence or effectuate the consummation of the transactions contemplated hereby and to otherwise carry out the intent of the parties hereunder. 6.16 Dispute Resolution. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Delaware and to the jurisdiction of the United States District Courts in Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Delaware or the United States District Courts in Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court. Each party will bear its own costs in respect of any disputes arising under this Agreement. Each of the parties to this Agreement consents to personal jurisdiction for any equitable action sought in the U.S. District Courts in Delaware or any court of the State of Delaware having subject matter jurisdiction. 6.17 Costs of Enforcement. If any party to this Agreement seeks to enforce its rights under this Agreement by legal proceedings, the non-prevailing party shall pay all costs and expenses incurred by the prevailing party, including, without limitation, all reasonable attorneys’ fees. [Signature Page Follows]

8

IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above. The Company: VIRTUIX HOLDINGS INC.

By: Jan Goetgeluk, Chief Executive Officer

Key Holders:

_______________________________________ JAN GOETGELUK Investors: Signatures of Holders of Series Seed Preferred Stock and Series 2 Seed Preferred Stock Are Incorporated by Reference from the Adoption Agreements Signed by Them. Signatures of Holders of Series A Preferred Stock Are Incorporated by Reference from the Subscription Agreements Relating to Their Purchase of Series A Preferred Stock (Per Section 2 Thereof).

SIGNATURE PAGE TO VOTING AGREEMENT OF VIRTUIX HOLDINGS INC.

SCHEDULE A INVESTORS RADICAL INVESTMENTS LP c/o Radical Investments Management LLC 5424 Deloache Avenue Dallas, Texas 75220 Attention: President Fax: (214) 696-6310 with a copy to (which shall not constitute notice): Robert S. Hart 5424 Deloache Avenue Dallas, Texas 75220 Fax: (214) 696-3380 MAVERON EQUITY PARTNERS V, LP 411 1st Avenue South, Suite 600 Seattle, Washington 98104 MAVERON V ENTREPRENEUR’S FUND, LP 411 1st Avenue South, Suite 600 Seattle, Washington 98104 MEP ASSOCIATES V, LP 411 1st Avenue South, Suite 600 Seattle, Washington 98104 SKM PARTNERSHIP, LTD. 5621 Tuppor Lake Drive Houston, Texas 77050 KEITH A. KREUER 18701 East Cool Breeze Lane Montgomery, Texas 77356 DOUGLAS J. ERWIN 4 Briarwood Court Houston, Texas 77019 TEKTON VENTURES LLC 50 California Street, Suite 3200 San Francisco, California 94111

SCHEDULE A Investors (continued) STARTCAPS SL Calle General Arrando 9 BIS Madrid, Spain 28010 MICHAEL MCGOVERN 18 Berkley Highway The Woodlands, Texas 77385 ANTONIE WOBBE PLOEGSMA One Waterway Court, 6E The Woodlands, Texas 77380 BERNARD GOETGELUK Bergstraat 42 Merelbeke 9820 Belgium BHV ENTREPRENEURSHIP FUND II, LP 275 Greenwich Street, #5A New York, New York 10007 QUEENSBRIDGE FUND I, L.P. 1801 Century Park East, Suite 1132 Los Angeles, California 90067 UGO DE CHARETTE South Ridge 1, unit 2101 Downtown Burj Khalifa Dubai Dubai, 214967 United Arab Emirates VESTCESS, LLC Attention: Federico Gonzalez, President 9400 Bamboo Road Houston, Texas 77041 DAVID ROWE 42 arkwright road London, England, nw36bh United Kingdom SWAD 1608 LTD. Attention: Arthur Sharplin, Trustee of SWAD Management Trust 3205 Aztec Fall Cove Austin, Texas 78746

SCHEDULE A Investors (continued) GREGORY NOVAK 1000 Louisiana Street, Fifty Third Floor Houston, Texas 77002 Fax: (210) 860-9252 STEPHEN COOK 1503 Sheltons Bend Court Houston, Texas 77077 MICHAEL JONES 313 Lakeside Lane Houston, Texas 77058 FOUR WINDS CAPITAL LP Attention: Samuel Goodner, Manager 3400 Woodcutters Way Austin, Texas 78746 COLTON BAKER JACOBS REVOCABLE LIVING TRUST Attention: Colton Jacobs, Trustee 5931 Darwin Court Carlsbad, California 92008 S&H CAPITAL INVESTMENT HOLDINGS, LP Attention: Hayden Hill, Manager P.O. Box 40792 Houston, Texas 77240 SEEDINVEST HOLDINGS I, LLC, VIRTUIX SERIES ONLY P.O. Box 171305 Salt Lake City, Utah 84117 SCENTAN VENTURE PARTNERS LIMITED 1903 World Wide House 19 Des Voeux Road Central HK YOSHIAKI MURAKAMI 6 Cuscaden Walk #94-02 The Boulevard Residences Singapore SSSS INVESTMENT LLC 9036 Marlive Lane Houston, Texas 77025

SCHEDULE A Investors (continued) JOHN BESS LLC 3 Wyndmere Lane Mendham, New Jersey 07945 ROBERT W. MARK 1100 Louisiana, Suite 4800 Houston, Texas 77002 2020 VENTURES, LP 121 Deer Hollow Road San Anselmo, California 94960 STEPHEN CARPENTER 6067 Post Oak Green Lane Houston, Texas 77055 JONATHAN R. HARMS 1837 Dart Street Houston, Texas 77007 GERALD FALLS P.O. Box 2202 Cypress, Texas 77410 VIKA GUPTA 5035 Yarwell Drive Houston, Texas 77096 DANIEL JONES 716 S. Overlook Drive Alexandria, Virginia 22305 H. ALBERT NAPIER 193 W. Ledge Stone Drive Fredericksburg, Texas 78624 VENTURE LENDING & LEASING VII, LLC 104 La Mesa Drive Portola Valley, California 94028

SCHEDULE A Investors (continued) WAUTER HELLEBUYCK & JASMIEN DECLERCQ Gansetek Straat 9686 Etikhove, Belgium THIRD COAST VR, LLC _________________________ _________________________ _________________________ VIRTUIX SERIES 2 SEED INVESTMENT LLC P.O. Box 171305 Salt Lake City, Utah 84117 RANDY B. CRATH 15 Courtlandt Place Houston, Texas 77006 451 WE VIRTUIX LLC _________________________ _________________________ _________________________ WALDEN WOODS HOLDINGS LLC 889 Tanglewood Drive Concord, Massachusetts 01742 WEFUNDS LLC, WEFUNDS VIRTUIX I __________________________ __________________________ __________________________

SCHEDULE B KEY HOLDERS

JAN GOETGELUK ___________________ ___________________ ___________________

EXHIBIT A ADOPTION AGREEMENT This Adoption Agreement (“Adoption Agreement”) is executed on ___________________, 20__, by the undersigned (the “Holder”) pursuant to the terms of that certain Voting Agreement dated as of March 10, 2016 (the “Agreement”), by and among Virtuix Holdings, Inc., a Delaware corporation (the “Company”), and certain of its Stockholders, as such Agreement may be amended or amended and restated hereafter. Capitalized terms used but not defined in this Adoption Agreement shall have the respective meanings ascribed to such terms in the Agreement. By the execution of this Adoption Agreement, the Holder agrees as follows. 1.1 Acknowledgement. Holder acknowledges that Holder is acquiring certain shares of the capital stock of the Company (the “Stock”) or options, warrants, or other rights to purchase such Stock (the “Options”), for one of the following reasons (Check the correct box): As a transferee of Shares from a party in such party’s capacity as an “Investor” bound by the Agreement, and after such transfer, Holder shall be considered an “Investor” and a “Stockholder” for all purposes of the Agreement. As a transferee of Shares from a party in such party’s capacity as a “Key Holder” bound by the Agreement, and after such transfer, Holder shall be considered a “Key Holder” and a “Stockholder” for all purposes of the Agreement. As a new Investor in accordance with Section 6.1(a) of the Agreement, in which case Holder will be an “Investor” and a “Stockholder” for all purposes of the Agreement. In accordance with Section 6.1(b) of the Agreement, as a new party who is not a new Investor, in which case Holder will be a “Stockholder” for all purposes of the Agreement. 1.2 Agreement. Holder hereby (a) agrees that the Stock [Options], and any other shares of capital stock or securities required by the Agreement to be bound thereby, shall be bound by and subject to the terms of the Agreement and (b) adopts the Agreement with the same force and effect as if Holder were originally a party thereto. 1.3 Notice. Any notice required or permitted by the Agreement shall be given to Holder at the address or facsimile number listed below Holder’s signature hereto. HOLDER:

ACCEPTED AND AGREED:

By: Name and Title of Signatory

VIRTUIX HOLDINGS INC.

Address:

By:

Facsimile Number:

Jan Goetgeluk, Chief Executive Officer