I always had this little theory that things like this are just a cover for an embezzling operation.
Step 1: Nefarious software developer comes up with flashy, yet totally useless concept (thus, almost zero running costs)
Step 2: Developer scores venture capital investment from clueless investors who like what they see, but don't really think too much about it
Step 3.1: Developer embezzles the money into a side account or buying up lots of "necessary" hardware
Step 3.2: Developer spends a pittance of time actually developing the concept into real software
Step 3.3: Project fails and the investors get out, but leaving behind the company's existing assets
Step 3.4: Profit!
Note: No "???" step.
I think that must have been the case with ExitReality. Either that or it was thought up by a computer-illiterate businessperson who outsourced the development.