Next Galaxy Near-term Focus to Unlock Long-term Value

REDONDO BEACH, CA / ACCESSWIRE / October 7, 2015 / The augmented and virtual reality industry is expected to hit $150 billion by 2020, according to Digi-Capital, who compares the industry to smartphones just before the iPhone. With substantial investments by Facebook Inc. (NASDAQ:FB) into Oculus Rift, Google Inc. (NASDAQ:GOOG) into Magic Leap, and Microsoft Corp. (NASDAQ:MSFT) into HoloLens, many of the tech giants are preparing for the tipping point of mass consumer adoption.

Digi-Capital believes that augmented reality ("AR") will account for about $120 billion of the market, while virtual reality ("VR") will take a $30 billion slice (see Figure 1 below). The AR target market may be larger in nature, but VR's opportunities may be more immediate in some areas.

1 - AR/VR Forecast - Source: Digi-Capital

Next Galaxy Corp. (PINKSHEETS: NXGA), a pioneer in developing virtual reality content, is taking an innovative approach by focusing on enterprise VR applications over the near-term, while simultaneously building a hardware-agnostic infrastructure for the long-term. Over time, the company hopes to make virtual reality as easy as turning on the television through the use of its CEEK platform, which is designed to be compatible with any hardware platform.

Enterprise Focus

Many virtual reality pioneers are focused on gaming. By contrast, Next Galaxy has targeted enterprise healthcare and education opportunities with a standardized hardware-agnostic solution that has generated tangible contracts with millions of dollars in potential revenue already in place to bring these solutions to market in the enterprise.

In early August, the company executed a partnership agreement with VR HealthNet to deploy virtual reality training solutions into the healthcare industry. The partnership could open the door to a significant opportunity in the long-term care facility industry and other healthcare markets given its partner's significant expertise in these areas. Next Galaxy's solutions will help improve patient outcomes to creating more engaging training programs.

Next Galaxy will provide partners access to a cross-platform technology that's compatible with any virtual reality headset, while providing an entire backend CMS to handle everything from analytics to payments. In return, the company generates revenue on a pay-per-use basis, which creates an attractive recurring revenue stream over time. These high margin revenues could equate to significant long-term value for shareholders as more partners are onboarded.

Redefining Entertainment

Entertainment remains the largest subset of the virtual reality market, according to Digi-Capital and a number of other analysts. With the potential to make movies, games, concerts, and other types of entertainment much more engaging, the entertainment industry is ripe for innovation and represents a key long-term target market for virtual reality. Many virtual reality providers, as a result, are targeting this market first, even though it may take longer to develop.

Next Galaxy has taken a unique approach by focusing on building a cross-platform technology that lets content creators do what they do best without worrying about hardware. Through this standardization, the company's CEEK application will be well-positioned to become a leading provider of VR concerts, VR movies, and other entertainment content using a wide variety of different hardware platforms, ranging from Facebook's Oculus Rift to Google's Cardboard goggles.

In addition to its focus on content, the company has developed the industry's first 4D headphones that bring virtual reality to life. The headset marks the second of three areas within the virtual reality industry controlled by Next Galaxy. With a number of existing partnerships in place, the company hopes to grow these over time to eventually solidify itself as a leader in the VR entertainment space.

Looking Ahead

Next Galaxy represents a unique opportunity to capitalize on the dramatic growth in virtual reality technology. By focusing on enterprise applications, the company is generating near-term revenue to finance its long-term vision and ambitions. Management's efforts to set a standard for the industry could also help position its CEEK platform as a leading player in the much-larger entertainment sector that could represent billions in value over time.

With its head start in creating entertainment videos, management is looking to focus its long-term entertainment efforts on music rather than gaming, where it sees the most potential. The goal? Consumers will soon be able to use the Samsung Gear VR or VR One from Zeiss and CEEK 4D headphones to attend concerts put on by their favorite music artists in the CEEK virtual world. Investors may well be cheering too, with content revenue, user subscriptions, and retail sales potential.

For more information, visit the company's website at www.nextgalaxycorp.com.

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SOURCE: Emerging Growth LLC

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