Waterford VR firm, Engage XR, goes broke after triple customer losses

The virtual reality gave its users a chance to virtually explore what it was like to walk on the moon and to look around the wreck of the Titanic

The court appointed a provisional liquidator in a bid to protect what value may be left in recoverable assets.

The High Court has been told that Engage XR, the Co Waterford virtual reality company that allowed people to experience what it was like to walk on the moon, is broke.

Mr Justice Micheal O’Connell appointed Resolute Advisory expert Colin Gaynor as provisional liquidator in a company bid to protect what value may be left in recoverable assets.

Engage XR also gave its headset users a chance to virtually explore the wreck of the Titanic at the bottom of the North Atlantic — one of its intellectual properties which, with the science behind its virtual simulations, may yet have significant resale value, the court heard.

Barrister Ross Gorman told judge O’Connell that the company had been unable to survive triple customer losses, which included the decision of the Saudi Arabian government to pull out of its deal with Engage XR to virtually assist in the development of a new city.

Mr Gorman, who appeared with Wallace Corporate Counsel, said that in August the company’s biggest education customer had, without any previous notice, decided not to renew its €1m contract.

This had followed the decision of another customer, potentially worth an annual income turnover of €500,000, to pull out of the company’s platform.

Counsel said these developments had been so significant that the company, while not currently balance sheet insolvent, had found it impossible to continue trading, as to do so would have resulted in using up its available cash within weeks.

Provisional liquidator Gaynor was empowered to take all steps as might be necessary to preserve the assets of the company.

Founded in 2015, Engage XR is headquartered in Waterford and developed metaverse technology for multinationals including HSBC, Pfizer, Meta, and Lenovo. 

In a trading update in December 2023, the firm said it expected total group revenue for that year to be between €3.6m and €3.8m, and posted a net cash position at the year end of approximately €7.3m.

At the time, the firm said its sales pipeline grew steadily during the second half of 2023, with the company saying it continues to see “encouraging demand” for its technology, especially within education, training and development verticals.