IMMRSIV Begins U.S. IPO Effort (IMSV) - Seeking Alpha

Khanchit Khirisutchalual

A Quick Take On IMMRSIV

IMMRSIV Inc. (IMSV) has filed to rise concern backing successful an IPO of its Class A mean shares, according to an F-1 registration statement.

The steadfast produces immersive bundle for a assortment of user applications.

IMSV has produced a terrible gross simplification connected tiny sales.

I'll supply an update erstwhile we larn much accusation astir the IPO.

IMMRSIV Overview

Singapore-based IMMRSIV was founded to make bundle for augmented/virtual world applications specified as:

• Education

• Training

• Tourism

Management is headed by Founder, Chairman and CEO, Mr. Png Bee Hin, who has been with the steadfast since its inception successful 2008 and was antecedently Vice President of Info-Soft systems, ST Electronics.

The company's superior offerings include:

• PublishAR

• LocoMole

As of June 30, 2022, IMMRSIV has booked just marketplace worth concern of $2.5 cardinal from investors including Png Bee Hin, Siddharth Jain, and Lim Yau Boon.

IMMRSIV - Customer Acquisition

The institution seeks to make concern relationships via a subscription-based concern model.

Management says the steadfast has developed eLearning courseware for much than 120 schools and grooming institutions successful Singapore.

Advertisement & Promotion expenses arsenic a percent of full gross person risen arsenic revenues person varied, arsenic the figures beneath indicate:

(Source - SEC)

The Advertisement & Promotion ratio multiple, defined arsenic however galore dollars of further caller gross are generated by each dollar of Advertisement & Promotion spend, fell sharply to antagonistic (42.9x) successful the astir caller reporting period, arsenic shown successful the array below:

(Source - SEC)

IMMRSIV's Market & Competition

The word "metaverse" was archetypal coined by Neal Stephenson successful his subject fabrication caller Snow Crash.

Strictly speaking, the metaverse is simply a integer beingness that is powered by blockchain exertion and is location to decentralized applications.

It is simply a decentralized, persistent, and unafraid online abstraction wherever users tin make avatars, bargain virtual assets, and enactment successful a integer space.

According to a 2022 marketplace research report by Grand View Research, the planetary metaverse marketplace was an estimated $38.9 cardinal marketplace successful 2021 and is forecast to scope $772 cardinal by 2030.

This represents a stunning expected CAGR of 39.4% from 2022 to 2030.

The main drivers for this expected maturation are an expanding absorption connected the usage of the net to integrate integer and carnal worlds, the maturation of mixed world hardware and software, and the outbreak of the planetary pandemic.

As the COVID-19 pandemic has disrupted accepted methods of doing business, working, and socializing, determination is an expanding request for integer platforms that tin supply realistic and immersive experiences.

The pandemic has besides created a request for societal distancing, which has led to the popularity of online games and virtual world [VR] arsenic alternatives to real-life societal interactions.

This has each contributed to the metaverse lately becoming 1 of the hottest trends successful tech and business.

Also, beneath is the planetary metaverse marketplace breakdown by extremity usage successful 2021:

Global Metaverse Market (Grand View Research)

Major competitory oregon different manufacture participants include:

• BaseFX

• SVHQ Media

• International media developers & providers.

IMMRSIV's Financial Performance

The company's caller fiscal results tin beryllium summarized arsenic follows:

• Sharply contracting topline revenue

• Reduced gross nett but higher gross margin

• A plaything to operating loss

• Positive currency travel from operations.

Below are applicable fiscal results derived from the firm's registration statement:

(Source - SEC)

As of June 30, 2022, IMMRSIV had $1.3 cardinal successful currency and $2.3 cardinal successful full liabilities.

Free currency travel during the 12 months ended June 30, 2022 was $866,106.

IMMRSIV's IPO Details

IMMRSIV intends to rise concern backing from an IPO of its Class A mean shares.

Class A mean shareholders volition beryllium entitled to 1 ballot per stock and Class B shareholders volition person 20 votes per share.

The S&P 500 Index nary longer admits firms with aggregate classes of banal into its index.

No existing shareholders person indicated an involvement successful purchasing shares astatine the IPO price.

Management says it volition usage the nett proceeds from the IPO arsenic follows:

for improvement of exertion and acquisition;

for endowment acquisition;

for marketing;

for firm indebtedness repayment, including:

a government-assisted COVID-19 indebtedness of US$427,193 remaining main arsenic of the day of the prospectus, with an involvement complaint of 2.5% and a word of 5 years for our moving superior purposes, and

an unlimited-term shareholder indebtedness of US$327,735 with an involvement complaint of 5.0% for our moving superior purposes;

the remainder for moving superior and different wide firm purposes.

(Source - SEC)

Management's presumption of the institution roadshow is not available.

Regarding outstanding ineligible proceedings, absorption says the steadfast is not progressive successful immoderate ineligible proceedings that would person a worldly adverse effect connected its fiscal information oregon operations.

The sole listed bookrunner of the IPO is Prime Number Capital.

Commentary About IMMRSIV's IPO

IMSV is seeking U.S. nationalist superior marketplace concern for its maturation plans and to wage down debt.

The company's financials person generated contracting topline revenue, lowered gross nett but higher gross margin, a plaything to operating nonaccomplishment and expanding currency travel from operations.

Free currency travel for the 12 months ended June 30, 2022 was $866,106.

Advertisement & Promotion expenses arsenic a percent of full gross person risen arsenic gross has fluctuated; its Advertisement & Promotion ratio aggregate fell sharply to antagonistic (42.9x) successful the astir caller reporting period.

The steadfast presently plans to wage nary dividends and to reinvest immoderate aboriginal net backmost into the business.

The marketplace accidental for providing metaverse and virtual reality-based grooming and acquisition technologies is ample and expected to turn substantially successful the coming years, truthful the steadfast enjoys affirmative manufacture maturation dynamics successful its favor.

Prime Number Capital is the sole underwriter and IPOs led by the steadfast implicit the past 12-month play person generated an mean instrumentality of antagonistic (59.4%) since their IPO. This is simply a bottom-tier show for each large underwriters during the period.

Risks to the company's outlook arsenic a nationalist institution see its tiny size and bladed capitalization.

Given the firm's caller and terrible gross contraction, it is hard to spot a affirmative lawsuit for the IMMRSIV Inc. IPO astatine this point.

When we larn much IMMRSIV Inc. IPO details from management, I'll supply a last opinion.

Expected IPO Pricing Date: To beryllium announced.

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