Sophic Capital Virtual Reality Report #3

Sean Peasgood, President & CEO

Marcel Valentin, Vice President

www.SophicCapital.com

VIRTUAL REALITY:

IT’S REAL ALL

RIGHT Immersing Ourselves at the 2015 Game

Developers Conference

March 9, 2015

We attended GDC 2014 and 2015. While virtual reality was

present last year, this year we are convinced it is here to stay and

will have wide spreading impact across several industries. The

number of head-mounted devices has increased significantly

along with numerous sensors and input systems to support the

ecosystem. Content is beyond belief; it really is real. You

experience fear, joy, anxiety; your heart can race; this stuff is

amazing. Science fiction has become real, and we believe that

wide-spread adoption could occur within a year and a half –

quicker if open source virtual reality gains traction, which we

saw evidence of already taking place.

http://www.sophiccapital.com/

Virtual Reality: It’s Real All Right

Sean Peasgood: www.SophicCapital.com March 9, 2015 - 2

Introduction

Last week, we returned to the Game Developers Conference (GDC) in San Francisco and,

once again, were blown away by another year of technological advancement in both hardware

and software. Last year, Oculus’ DK2 release was the show’s highlight. Virtual reality (VR)

enthusiasts jammed Oculus’ booth, and DK2 stole the show, especially with Facebook stepping in

and buying the Company for $2 billion a week later. Sony also introduced and demoed Project

Morpheus, and there were a few peripheral sensor technologies to enhance the experience using

motion control.

While VR was just getting going last year, now it looks like a sure bet, with several new head

mounted displays (HMDs), a bigger catalogue of content, and many new periphery products

to enhance the immersive experience. We would say that about 35%-40% of the booths at the

show had some VR content on display, and the crowds were definitely gathering around VR and

AR demos. Another key difference this year was that VR has moved from sitting down to standing

up.

Over the course of the three days, our goal was to try to demo as many new HMDs and games

as possible and talk to industry enthusiasts about where they think VR and AR are headed.

This year, we were able to get

hands-on demos (in some

cases multiple demos) with

four head-mounted displays

including Oculus’ Crescent

Bay, Samsung’s Gear VR

(Powered by Oculus), Razer’s

OSVR, and Vuzix. HTC, and

Valve entered the scene at the

beginning of the week with

the Vive, a dual screen HMD

that has been getting positive

reviews from those lucky

enough to get a demo. Not

only are the number of HMDs

increasing, but this year there

were many more peripheral

products to complement and

enhance the VR experience.

At GDC 2015, we uncovered new themes including:

1. VR is real, and the industry is expanding,

2. Oculus is no longer alone, although we believe it is still in the lead,

3. Input devices including motion detection/control are more prominent for VR gaming,

4. There is room for both tethered and wireless HMDs, but today wired enjoys much higher

quality of experience (we believe wireless solutions could one day have the same quality),

5. VR/AR will penetrate many more markets than just gaming,

6. Open-source virtual reality (OSVR) could drive hardware and content innovation.

Game enthusiasts on their way to San Francisco's Moscone Center for GDC 2015



We Have No Doubt that VR is Real

Everyone at GDC was talking about VR. Game engine developers, game producers, quality

control programmers were all talking about immersing themselves in VR demos. Any booth that

had a HMD had a lineup. Any booth that had a HMD had spectators. Any booth with a HMD had

a wait time (Oculus’ line had a 2 hour wait). Any VR system input devices had a wait. What

surprised us was how motion detectors and controllers have evolved into the VR ecosystem. VR

gaming content is here we flew an amazing spaceship (and battled enemies approaching in 360

degrees in three axes), we explored new worlds, we came face-to-face with T-Rex, and

unsuccessfully tried to hide from Smaug before he destroyed us with his fire breathing breath. We

witnessed tons of people sliding off VR goggles whose faces were frozen with awe. People in the

Moscone Center were hyped about VR, how far it has come, and how much further it will go.

Although we anticipate HMDs to hit the market this year, we don’t know when developers

will release commercial VR games and applications en masse. Studios continue to develop

content, and input systems keep appearing to support the ecosystem. What’s holding back the mass

adoption in gaming and commercial VR applications is the lack of consumer VR HMDs. We’ve

seen the HMDs; we’ve tried them; there’s no doubt that they are real and that they work. But only

Samsung’s Gear VR and Google Cardboard are available for purchase today. Most of the other

manufacturers remain tight-lipped about when commercial versions will be available. It was

encouraging last week when HTC announced that they will release a developer edition of its Vive

HMD in the spring with a full consumer release slated before the end of the yeari.

We also believe OSVR could hasten a commercial HMD release. More on OSVR later, but in

summary, our conversations with industry professionals suggested that many HMD and input

system manufacturers are about to adopt OSVR. One of our sources, who claimed to know C-level

Oculus executives, stated that Oculus is also looking at OSVR. Obviously HTC’s news could light

a fire under some of the other manufacturers to come to market sooner. It seems like by the end of

the year we’ll see at least one HMD launch and possibly more. So 2016 will be interesting.

Long Live the King, Maybe

Oculus had the most popular booth. And Oculus’ HMDs were the HMDs used for

demonstrations at most VR booths. Our theory is that Oculus provided the industry’s first software

developer kit, which included the Oculus Rift HMD. So eager developers naturally selected Oculus

to begin programming VR applications and games. Given the number of HMD developers that we

saw and OSVR enthusiasts whom we met, we anticipate that Oculus won’t be as dominant at GDC

2016.

VR enthusiasts couldn’t get

enough of Oculus. Oculus

anticipated their demand to try

the Rift Crescent Bay (Oculus’

newest prototype). The

Company required pre-

registration via an application

to book a demo appointment.

We downloaded the app and Two hour wait to try Oculus



found a two day wait, which meant that we had to line up to wait for a turn. Even though we weren’t

in Vegas, Lady Luck shined on us as we were amongst the first to try Crescent Bay in the opening

ten minutes of the expo (strategically our first stop). Thank goodness we were lucky because a

lineup that wrapped around three sides of the Oculus compound greeted us as we exited the booth.

Our experience with Oculus. In a large open concept area there were about 20 swivel chairs set

up with Samsung’s Gear VR surrounded by private rooms for the Crescent Bay demo. Following

a satisfying Gear VR demo (more on that in the next section), we were escorted into one of the

private rooms to experience Crescent Bay. Crescent Bay was brilliant. Absolutely spectacular.

Don’t get us wrong; both experiences were impressive, and if either was your first with a VR HMD

you would have been impressed. But between the two, Crescent Bay was far more stupefying.

We have to say that the Crescent Bay demo was so sensational that we went back the second

day to do it all over again. Unlike the Gear VR demo, where we were seated, we stood for the

Crescent Bay demo. We immediately found ourselves standing on the edge of a building, then

dodging laser beams zipping past our heads as we were caught in the middle of two robots having

a shootout. Once our hearts stopped pounding, we stared at a gentle, ET-like alien, and as its face

approached ours, it suddenly soured and blasted a terrifying roar. A ferocious tyrannosaurus rex

stomped toward me, stopped and flashed its slobbering jaws. Before we could turtle, the rex

continued onward, and we watched with awe as it walked over us and left. We were jaw struck at

how real virtual reality could be.

Exhibit 1: Some Companies that Used Oculus for Their Demonstrations at GDC 201

Source: Sophic Capital

http://www.kzero.co.uk/blog/the-consumer-virtual-reality-face-race-q1-2015-update/



VR is not only about visuals

- 3D sound is equally

important. The new

Crescent Bay has integrated

headphones. “My ears

tingled when bullets whizzed

past my head,” I said as we

compared our experiences.

We raved about how deeply

immersive the experience

was – we felt isolated in these

virtual worlds even though

Oculus attendants were

present1. In some demos we

turned the audio down so that

the Oculus attendant could

direct us to look at the demo’s finer details, including a cutesy village that exploded with detail the

closer we inched our faces toward it. Hearing the faint slaps of a fish jumping out of a stream to

the left felt natural; as did the rustling bushes behind us (we spun around to find the noisy culprits

staring at us). Small, audio details like these completed the VR experience and highlight the

importance of audio to an immersive, VR experience.

We asked gaming professionals what they thought about Oculus – one word…AWESOME!

We spoke with close to twenty gaming enthusiasts who had tried Crescent Bay, including a few

VR company executives. “Mind blowing!” said a lead programmer. Another lead designer said,

“The ‘immersiveness’ is awesome.” “Vivid!” noted a game developer from China. “It’s improved

over last year,” stated a game software quality control engineer. “Worth the wait,” said a game

developer Vice President who didn’t look old enough to have a drivers’ license. “Everyone has to

try it!” exclaimed a game software CEO.

Although the majority of people were impressed, some were muted. “I saw the screen pixels,”

said a programmer describing the Gear VR. We noted this as well at times. “They didn’t know how

to treat certain particles,” said a game producer. Googling “game particles” returned a matrix of

unrelated images that confused us more. So if any of you know what he was talking about, please

let us know.

Although most of the excitement at GDC 2015 centered on Crescent Bay, the Oculus’ HMDs

have an Achilles’ heel – the screen. As revealed in an iFixitii teardown, Oculus uses a Samsung

Galaxy screen as the display. Putting on our engineering caps, swapping a screen wouldn’t be easy.

There’s form factors to consider, possibly different resolutions and refresh rates. It occurred to us

during GDC that this is perhaps why Oculus and Samsung co-developed the Gear VR: Samsung

provides its display expertise while Oculus offers its VR secrets. We believe that this exchange

gave Samsung first mover advantage into the consumer market with Gear VR.

1 On one occasion when our demo was over, we removed our headset and were startled by camera flashes.

Oculus had a crew of people who had snuck in to photograph us during the demo. They asked if we had heard

the camera or seen the flashes; we had no idea that they were there.

Oculus Crescent Bay. Note the integrated headphones Source: TechMagnifier.com

http://www.techmagnifier.com/news/facebooks-oculus-introduces-new-prototype-crescent-bay-virtual-reality-headsets/



HMDs in the Kingdom

This year there were several new HMDs on the scene. Samsung Gear VR was used in several

booths including Oculus’ (Samsung developed Gear VR in conjunction with Oculus). This wireless

HMD is essentially a shell that slips over a Samsung Galaxy 4 mobile phone. Gear VR is the second

major HMD available for consumers (Google2 Cardboard was the first), and is available on

Samsung’s website for $199.99 (not including the phone). Enthusiasts also queued for their turn

with Gear VR, and although the wait was not as long as that for Crescent Bay, their enthusiasm

was as intense. Whenever we strolled by Oculus’ booth, all Gear VR seats were filled. Our take is

that Gear VR is one of the slickest-looking HMDs around. It was light, comfy, and had a pleasing

“iLook” to it. But…

…we had some issues with Gear VR.

While the Gear VR still gave you a sense

of movement and rendered seamlessly

when you moved your head, the lenses

fogged up after five minutes, which

limited the experience3. I actually took

the Gear VR off before demoing all of

the games and content because my left

eye blurred. On other occasions our Gear

VR experience was not nearly as

problematic, but we agreed that the

games and content didn’t have the

“WOW!” factor when compared to the

Crescent Bay demo.

Perhaps the issues we had with Gear VR were due to the fact that it isn’t tethered to an

external video card via a cable like Oculus, HTC, OSVR, and Sony’s Morpheus. Gear VR uses

a processor resident on the HMD to drive content to a Galaxy screen, and the resolution of the

content was visibly less than that provided by Crescent Bay. For now, “cableless” HMD processors

are slower than a computer video card, but we believe that several years down the road they will

likely provide an equal experience.

But we thought we’d give Gear VR another shot. We had tried Oculus twice, so in the interest

of fairness, we decided to extend the same courtesy to Gear VR. For some reason, we enjoyed the

Gear VR substantially more. Perhaps it was because we had time to anticipate what we needed to

do before immersing ourselves: get a tight fit, focus the lenses, and stop thinking about the

technology. We relaxed and both had a great Gear VR experience, but the graphics were still not

close to as impressive as what we saw with Crescent Bay.

Look Out Oculus, Others Have Come to the Party

The OSVR platform seeks to unify input devices, games, and output in order to take VR to

the next frontier. With contribution from VR leaders, including Unity, Unreal, Intel, Bosch, Razer,

2 Speculation in The Wall Street Journal suggests that Google may be getting serious about VR. Sources

say that Google has tens of engineers working on an Android operating system to run VR applications. 3 Last week at Mobile World Congress, Samsung did announce a new, smaller Gear VR for the Galaxy S6

and S6 Edge that has incorporated mechanical vents to eliminate this issue

Gear VR demonstrations at Oculus' booth

http://www.samsung.com/us/mobile/wearable-tech/SM-R320NPWSXAR

http://www.wsj.com/articles/googles-android-to-take-on-facebook-in-virtual-reality-1425684553



Sixense, and Leap Motion, this open-source platform provides hardware schematics, software

APIs, and software plugins to drive game development. One prominent game developer told us that

OSVR is VR’s future, and that close to 25 HDM manufactures are set to adopt it. Our source

claimed to know senior Oculus executives and said even they may switch to OSVR.

Razer’s OSRV HMD was a hit.

Last year, Razer announced its

development kit, which you can pre-

order for $199.99 here. This year,

developers seemed eager to try

OSVR, and so were we. The demo

was okay (a futuristic racing track),

and the look was pretty cool. The

hardware fit our heads nicely, but

our concern was much like Gear

VR, the lenses were tuned with a

couple of knobs, and neither of us

could quite get them into focus. But

since we had given Crescent Bay

and Gear VR two chances, we

returned the second day to give

OSVR second try. That’s when we

saw the Leap Motion booth.

Leap Motion has controllers that

sense hand movement and can be

used with any HMD. For their

demo (inside the OSVR booth), they

had attached their controller sensor

to the front of a Razer OSVR HMD

(one team member agreed with our

theory that the sensor could

eventually be integrated into

HMDs). We played a game where

we extinguished fire demons by

throwing balls of water at them and

evaporated water demons with balls

of fire. Two things surprised us.

First, the HMD required little to no

tuning for a great visual experience,

and second, the game was fun and

completely immersive since the

demons attacked from every

possible direction4.

4 As a side note, if you’re ever near a VR demo, pay attention because the person wearing the HMD can’t

see you. A Leap Motion attendant and a curious gamer engaged in a technical discussion stood a little too

close to Sean. They barely dodged Peasgood’s mitts when he whipped around to deliver a one-two punch

that killed a couple of attacking demons.

Leap Motion sensor on the front of a Razer OSVR HMD. You can see demon fighter Sean Peasgood’s virtual fingers wiggling at the bottom of the screen.

http://www.razerzone.com/osvr-hacker-dev-kit



Perhaps the biggest contender to Oculus’

crown (many reviews indicate that it may

already have taken it) is Valve, creators of

the classic Half Life action game. Valve

brought its SteamVR headset to the show, but

only those with appointments were allowed to

see it - unfortunately, we weren’t one of the

lucky few. Using the Vive HMD developed by

HTC, a Taiwanese manufacturer of

smartphones, SteamVR evolved without the

benefit of development kits (although one

should come this spring). HTC also announced

that a consumer version will be available

sometime this year.

An interesting component of SteamVR’s

product that is getting a lot of attention was

its motion tracking base stations and

innovative controllers. The base stations

allow for full motion control of the hands and

body. We heard that roaming around a large

open space felt great, but we wonder how

problematic it may be in the home (do users

have to have an empty space to prevent

themselves from tripping over furniture?) That

said, all the reviews we read were ones of users

being blown away.

Those lucky enough to try SteamVR noted that one major advantage it has over Oculus is its

controllers. Reviewers appear to like the tethered hand controllers, but it appears as though Valve

may eventually make these wirelessiii. Not only are the controllers equipped with index triggers and

clickable thumb pads, but like the HMD, they also have tracking sensors for the base stations to

follow. It was interesting that similar to Oculus, Valve and HTC will likely keep the HMD tethered

to a computer to minimize latency issuesiv.

Vuzix unveiled its IWear 720 video

headphones at the conference. The platform

leverages OSVR, and its 57 degree field of

vision makes the VR experience amazingly

immersive for not being a full 90+. Vuzix, is

making gains by focusing on the optics rather

than the processing of video. In a nutshell,

Vuzix starts with a tiny compressed display that

it then projects into the HMD’s “pupil” optics –

the easy part. The projector then shines light

onto nano structures built into the HMD’s pupil

lenses, which then disperses the light without

distortion across the very large field of view –

the hard part. Vuzix has also made significant

HTC Vive used for SteamVR Source: Steampowered.com

SteamVR virtual reality hardware. Note the controllers at the bottom, right.

Source: UploadVR.com

Vuzix's Smart Glasses - Left is the model used for the DHL pilot; right is the future model with integrated display

http://uploadvr.com/valve-and-htc-have-fully-revived-virtual-reality-hands-on-with-the-vive/



inroads with its commercial Smart Glasses solutions - DHL completed a pilot that resulted in a 25%

efficiency increasev. We were told that the next Smart Glass iteration will have integrated cameras,

and the prototype looked like a regular pair of sunglasses. Cool!

As an OSVR side note, Vuzix’s VR content was eerily similar to that we experienced at the

Razer booth. When we probed an OSVR executive about this, he stated that this was the power of

OSVR. He claimed that Vuzix took their OSVR content, spent two days tweaking it, and were able

to stream the same demo on IWear 720.

Some HMDs Were Missing

Sony’s latest version of Project Morpheus appeared at GDC 2014 but was not available for a

demonstration this year. No reason was given, and we won’t speculate, but we would have liked

to see how Sony’s development and content are coming along.

Magic Leap, the company bequeathed with a $542 million investment last October (led by

Google and including KPCB, Andreessen Horowitz, Obvious Ventures, Qualcomm and

Legendary Entertainment), was an augmented reality HMD that people were talking about.

We were not expecting to see anything as the Company remains in “stealth mode”. Magic Leap

had a recruiting booth but remained tight lipped about any commercial or technical aspects of the

product. Perusing Magic Leap’s careers website, we noticed optical metrology, optical diffraction,

laser and fiber engineering, and processing positions. Putting on our engineering caps, this suggests

that Magic Leap may not implement a Gear VR-style, smartphone solution, but rather an optical

lens system that directs light onto the user’s eyes.

Plenty of New Input Devices to Enhance the Virtual Experience

An input device is an accessory used to enhance VR beyond just video and audio. Last year,

we found several companies showcasing their offerings. This year, they were everywhere. Guns

with haptics (feedback through the sense of touch), controllers that slide over a finger, sensory

rings, light sabers – all were there to support VR games. A few input devices stole the show.

Omni VR treadmill could

be the ultimate immersive

experience. One of the

most popular booths at the

show, Omni showcased an

input system that allows for

complete freedom of

movement within a small

space. While public demos

were not available and we

were unable to try the

product, the booth was

mobbed by onlookers all

day long. They watched

one of the Company’s

gamers work up a sweat as One of the most popular booths at GDC 2015



he walked, ran, and sprinted his way through a shoot ‘em up game. His motion (all 360º of it) was

streamed to a display that allowed spectators to see what each of his eyes saw through his Oculus.

Omni’s treadmill first gained widespread attention when it appeared on Shark Tank (ABC’s

investment reality show). The Sharks turned down the Company’s proposal, but weeks later, Mark

Cuban joined venture capitalists in raising $3 million for Omni.

Speaking with Omni’s management onsite, they mentioned that they already had preorders

for units on their website. And although Omni plans to tweak the model slightly for the consumer

launch, the treadmill is close to completion. The consumer version is expected to be released this

summer with a price tag of $699 for a package that includes:

1. Virtuix Omni gaming platform,

2. one pair of Omni Shoes for comfortable, extended gameplay (you have to use these shoes),

3. one pair of Omni Tracking Pods and tracking software,

4. one Omni Harness for support, safety, and rapid, untethered action,

5. one year limited warranty (voided if purchasing from an un-authorized re-seller), and

6. TRAVR and other demo games demonstrating novel VR game dynamics with analog, de-

coupled player direction and speed.

While we do not see everyone gaming on a treadmill, it may make

more sense to be in a secure treadmill environment when immersed

in VR rather than stumbling around a room with furniture and

obstacles. Omni is clearly a peripheral to watch, and with one killer

game/application we think it could be a major consumer product to

complement VR in the future. A few people we chatted with

commented that this was the future of gaming. We agree and also see

the future of home exercise and injury rehabilitation to include the

Omni.

Privately-held Nod is a new company developing wearable gesture

rings; rings that allow people to engage objects via movement.

Based in Mountain View, California, many on the design team are

alumni of Apple, Google, Facebook, Amazon, HP Labs, Samsung, and

NASA. The ring on display at GDC 2015, which is also called the Nod,

is a universal controller that allows for communications with all smart

devices within a 30 foot range. No commercial Nod is available,

although it is slated for release sometime this yearvi. No word at the

booth on when Nod will unleash its game controller unto the public.

Are you ready for some Star Wars? Sixense demonstrated their

virtual lightsaber with their STEM (Sixense Tracking Embedded

Module). The system comes with two hand controllers with built-in

sensors, another sensor that’s installed on the HMD, and a base station

that transmits an electromagnetic field to read the sensors. Although the

system cannot detect finger motion, it can detect where the controllers

are even if they aren’t in the line of sight. This allows future Jedi

masters to twirl, parry, dodge, and thrust to their hearts’ content without

the letdown of being removed from an immersive experience.

Nod gesture ring

May the force be with you, courtesy of Sixense



Our last day at GDC 2015 revealed an unbelievable surprise. At the end of one isle was a

Japanese haptics company named Miraisens. We had walked by their booth several times on our

way to see the “big VR names”. Few people milled around Miraisens booth but had we been more

observant, we would have caught on that something special was happening there.

“3D Haptics Technology” was what Miraisens banner read. Haptics involves bringing the sense

of touch to VR and has been around for a while. But “3D haptics?” We never heard of it before.

BIG mistake. What Miraisens does is recreate

the sense of touch in several dimensions by

means of vibration. Some way, somehow, they

had a tiny, mouse-shaped black box that could

simulate water running down our fingers,

electricity shocks, the bumpiness of running

your fingers over bumpy rocks and smooth

pebbles. It was magical. Even better, it felt real.

We were then treated to a driving simulation (not

VR) where we held a secret sensor in each hand.

While driving, we could feel the bumps in the

road, the slippery grass when we drove off the

shoulder, acceleration – we felt the car

accelerate. We’re positive Miraisens technology

will also have a major role in the future of

gaming – 3D touch.

Best Friends Forever

“What’s Pong?” a young coder asked after I joked that Pong was my favorite game. The

young man was serious. He shook his head, and my smile collapsed. Dejected that the young fellow

would never know the fear of burning a tennis court into his dad’s black and white TV, we

wandered over to the North Hall of the Moscone Center to check out the software companies.

And that’s when we saw it – a museum of arcade games. We froze, bit our bottom lips, and

stared. Glancing at each other and cracking smiles was all it took to read each others’ minds. We

dove onto the machines taking turns playing Asteroids, Galaxia, Frogger, and Star Wars. The games

were fun, interactive, and just as intense as any VR experience that we had. These games were

immersive but without headsets, 4K video screens, or 3D audio. They drew us into their world

using only knobs, joysticks, and crappy television monitors. Yet, in spite of the ancient technology,

these boxy dinosaurs opened trunks of childhood memories from the days of hanging out in noisy

arcades, watching girls play Ms. Pac Man while we self-debated whether to spend that last quarter

on another game of Qbert or bus fare to get home. Arcades were places to escape the real world,

which is exactly what virtual reality aims to achieve. But in spite of the complex interlacing

requirements of current HDMs, it doesn’t take much to get away; it really doesn’t.

Baby you can drive my virtual car. Powered by Miraisens



After 20 minutes, it was time to go. And as we

rounded the last machine, there it was: Pong,

standing proudly albeit with neglect. We were

drawn to the ol’ boy, and stood silently in its

glory. No longer functioning, we gave Pong’s

simulated wood-grained finish a stroke and its

dials a gentle spin.

After paying our respects, we left. But as we

turned to give it a last glance, Pong’s huge

screen looked like it was watching us. A couple

of teens took our places before the machine. We

watched them inspect the weathered carcass

and engage in a discussion with full smiles.

Maybe they knew they had just had an ancient

VR experience; maybe they didn’t. All we

know is that Pong didn’t care; it wanted their

quarters.

Acronyms Used in this Report

AR augmented reality

GDS Game Developers Conference

HDMI high-definition multimedia interface

HMD head-mounted display

OSVR open-source virtual reality

STEM Sixense Tracking Embedded Module

VR virtual reality

References

i Brad Chacos, Move over, Oculus: HTC announces SteamVR-powered Vive VR headset, PCWorld, March

1, 2015 ii iFixit, Oculus Rift Development Kit 2 Teardown, March 19, 2014 iii Nicole Lee, HTC's Vive made me believe in VR, engadget, March 4, 2015 iv Nicole Lee, HTC's Vive made me believe in VR, engadget, March 4, 2015 v Vuzix Delivers Working Enterprise Smart Glasses Solution to DHL for Warehouse Picking, Vuzix,

January 28, 2015 vi FAQs, Nod, Inc., 2015

http://www.pcworld.com/article/2890341/move-over-oculus-htc-announces-steamvr-powered-vive-vr-headset.html

http://www.engadget.com/2015/03/04/htc-vive-hands-on/

http://www.engadget.com/2015/03/04/htc-vive-hands-on/

http://www.vuzix.com/wp-content/uploads/2015/01/13069646_2015-01-28%20Vuzix%20DHL%20Ubimax%20PR.pdf

https://hellonod.com/faq.html



Disclaimers

The particulars contained herein were obtained from sources that we believe to be reliable, but are

not guaranteed by us and may be incomplete or inaccurate. The opinions expressed are based upon

our analysis and interpretation of these particulars and are not to be construed as a solicitation of

offer to buy or sell the securities mentioned herein. Sophic Capital Inc. (“Sophic Capital”) may act

as financial advisor, for certain of the companies mentioned herein, and may receive remuneration

for its services. Sophic Capital and/or its principals, officers, directors, representatives, and

associates may have a position in the securities mentioned herein and may make purchases and/or

sales of these securities from time to time in the open market or otherwise.

Documents

Sophic Capital Virtual Reality Report #3