Revenue Performance - Total revenue for the three months ended December 31, 2025, was approximately $1.30 million, a decrease of 59% compared to $3.17 million for the same period in 2024[114] - Total revenue for the six months ended December 31, 2025, was approximately $2.70 million, a decrease of 52% compared to $5.61 million for the same period in 2024[114] - Software Services revenue for the three months ended December 31, 2025, was approximately $1.18 million, a decrease of 62% compared to $3.13 million for the same period in 2024[116] - Software License revenue for the three months ended December 31, 2025, was approximately $0.10 million, an increase of 150% compared to $0.04 million for the same period in 2024[117] - Royalty income for the three months ended December 31, 2025, was approximately $0.02 million, reflecting a new revenue stream from prior subsidiary divestitures[118] Operating Expenses - Total operating expenses for the three months ended December 31, 2025, were approximately $2.02 million, a decrease of 1% compared to $2.05 million for the same period in 2024[113] - Operating expenses for the three months ended December 31, 2025 were approximately $2.05 million, an increase of 1% from $2.02 million in the same period of 2024[121] - Research and development expenses for the three months ended December 31, 2025 were approximately $0.90 million, reflecting a 36% increase from $0.66 million in the same period of 2024[122] - Sales and marketing expenses for the three months ended December 31, 2025 decreased by 20% to approximately $0.30 million from $0.38 million in the same period of 2024[124] Net Income and Cash Flow - Net loss for the three months ended December 31, 2025 was approximately $1.23 million, compared to net income of approximately $0.02 million for the same period in 2024[128] - Net cash used in operating activities for the six months ended December 31, 2025 was approximately $2.03 million, a significant increase from $0.25 million in the same period of 2024[135] - Net cash used in investing activities for the six months ended December 31, 2025 was approximately $1.52 million, compared to $0.03 million in the same period of 2024[136] - Total other income for the six months ended December 31, 2025 was approximately $0.34 million, a substantial increase from $0.04 million in the same period of 2024[127] - Cash and cash equivalents at the end of the period on December 31, 2025 were $3.34 million, a decrease of 60% from $8.44 million at the end of the same period in 2024[134] - Adjusted EBITDA loss for the three months ended December 31, 2025 was $0.89 million, compared to income of $0.28 million for the same period in 2024[133] Company Developments - Four customers accounted for approximately 81% of total gross revenues during the three months ended December 31, 2025[119] - The company entered into an At-the-Market Sales Agreement allowing for the sale of up to $9,478,200 of common stock as of January 2, 2026[111] - The company is exploring a potential spin-off of its subsidiary Brightline Interactive, Inc. to unlock shareholder value[112] Financial Position - As of December 31, 2025, the Company had no outstanding debt obligations[139] - As of December 31, 2025, the Company had no issued and outstanding preferred stock[140] - As of December 31, 2025, the Company had no outstanding contingent obligation[141] - As of the date of this filing, the ATM facility has not been utilized[142] Accounting and Risk Disclosures - Recent accounting pronouncements have been adopted, with potential impacts described in Note 2 of the financial statements[143] - Quantitative and qualitative disclosures about market risk are not required for smaller reporting companies[144]

Financial Performance - Q2 FY '26 revenue was approximately $1.30 million, a 59% decrease from $3.17 million in Q2 FY '25 and a 7% decrease from $1.40 million in Q1 FY '26[11] - Adjusted EBITDA loss for Q2 FY '26 was -$0.89 million, compared to a gain of $0.28 million in Q2 FY '25, reflecting the revenue decline[11] - The company reported a net loss of $1.23 million for Q2 FY '26, compared to a net income of $0.03 million in Q2 FY '25[18] - For the six months ended December 31, 2025, the net loss was $2.26 million, compared to a net loss of $0.98 million for the same period in 2024, representing a 130% increase in losses[20] - Adjusted EBITDA for the six months ended December 31, 2025, was a loss of $1.83 million, compared to a loss of $0.17 million for the same period in 2024, indicating a significant decline in performance[21] Cash and Assets - The company's cash and equivalents as of December 31, 2025, were approximately $3.34 million, with an additional $0.56 million in accounts receivable[11] - Total current assets decreased from $8.17 million as of June 30, 2025, to $4.91 million as of December 31, 2025[16] - Cash and cash equivalents at the end of the period were $3.34 million, down from $8.45 million at the end of the same period in 2024, showing a decline of 60%[20] - Cash used in operating activities for the six months ended December 31, 2025, was $2.03 million, compared to $0.25 million for the same period in 2024, reflecting an increase in cash outflow[20] - The company experienced a significant change in accounts receivable, with an increase of $0.28 million for the six months ended December 31, 2025, compared to a decrease of $0.67 million in 2024[20] Liabilities and Expenses - Total liabilities decreased from $2.34 million as of June 30, 2025, to $0.77 million as of December 31, 2025[16] - Stock-based compensation expenses for the six months ended December 31, 2025, were $0.57 million, compared to $0.41 million in 2024, representing a 39% increase[21] - The company incurred a payment of $1.5 million for contingent consideration related to acquisitions during the six months ended December 31, 2025[20] - The depreciation and amortization expense for the six months ended December 31, 2025, was $0.08 million, down from $0.27 million in 2024, indicating a reduction in asset depreciation[21] Strategic Initiatives - The company is pursuing a potential IPO for Brightline Interactive (BLI) in the first half of CY '26, having filed a confidential S1 registration statement with the SEC[6] - The strategic realignment process includes optimizing immersive businesses and leveraging assets to create shareholder value outside the immersive segment[6] - The company plans to change its ticker symbol to "GGRP" from "VRAR" by the end of February 2026[7] Other Financial Highlights - The company reported a net gain on divestiture of subsidiaries of $1.4 million in 2024, which was not repeated in 2025, impacting overall financial performance[20]

Core Viewpoint - The Glimpse Group, Inc. is set to release its financial results for Q2 fiscal year 2026 on February 17, 2026, at 8:30am ET, highlighting its focus on enterprise-oriented immersive technology solutions [1] Company Overview - The Glimpse Group, Inc. operates as a diversified immersive technology platform company [1] - The company specializes in providing enterprise-focused immersive technology, spatial computing, and AI-driven software and services [1]

Core Insights - The Glimpse Group, Inc. is focusing on strategic initiatives for calendar year 2026 aimed at unlocking shareholder value, which is believed to be undervalued in the current equity valuation [2][4] Business Strategy - The company plans to spin out Brightline Interactive (BLI) through an IPO, positioning it as a standalone entity focused on Physical AI and Spatial Computing for the Defense Tech/AI software segment [5] - BLI's solutions utilize the SpatialCore software platform for operational orchestration and training of digital twins, robotics, and autonomous systems [5] - The IPO is targeted for completion in the first half of CY '26, with Lucid Capital Markets engaged as the investment banking partner [5] - In parallel, the company is exploring private company spin-out alternatives for BLI to maximize its success and create value for shareholders [5] Immersive Technologies - The core Immersive business is driven by the Foretell Ai software product, which provides intelligent, conversational simulations in immersive environments [5] - Foretell Ai is gaining traction in the Education and Healthcare segments, with increasing enterprise interest and new license agreements [5] - A recent contract was secured with a NYC-based higher education institution for the deployment of a local Large Language Model infrastructure to run Foretell Ai [5] Financial Position - The company maintains a healthy capital structure with no debt and sufficient cash reserves for the next 12 months [11] - An S3 and ATM facility has been established, although there is no current intent to utilize these tools [11]

Core Insights - The Glimpse Group, Inc. has entered into a six-figure contract with a New York City-based higher education institution for the design, deployment, and integration of a local Large Language Model (LLM) infrastructure [1] - This LLM infrastructure is specifically configured to run Foretell AI in immersive environments, which will be utilized across various campus and community systems and programs [1] - The partnership highlights Glimpse's capability to integrate AI with immersive platforms, facilitating natural interactions with smart AI non-human virtual characters [1] Company Developments - The contract represents a significant step for Glimpse in expanding its offerings in the immersive technology sector [1] - The collaboration with the higher education institution underscores the growing demand for AI-driven solutions in educational settings [1] - The integration of AI in immersive environments is expected to enhance user experience and engagement within the institution [1]

Financial Data and Key Metrics Changes - Q1 fiscal year 2026 revenue was approximately $1.4 million, reflecting a 43% decrease compared to $2.4 million in Q1 fiscal year 2025, attributed to timing of Department of Defense contracts and U.S. government budgetary delays [18] - Gross margin for Q1 fiscal year 2026 was approximately 72%, up from approximately 68% for fiscal year 2025, with expectations to remain in the 65%-75% range [19] - Adjusted EBITDA loss for Q1 fiscal year 2026 was $0.92 million compared to a loss of $0.46 million in Q1 fiscal year 2025, indicating the impact of lower revenues [19] - Cash and equivalents as of September 30, 2025, were approximately $5.56 million, with an additional $0.66 million in accounts receivable, maintaining a clean capital structure with no debt [19] Business Line Data and Key Metrics Changes - Brightline Interactive made an initial successful delivery on a multi-million dollar annual SpatialCore contract with a Department of Defense entity, indicating progress in key contracts [13] - The AI software product, Fortel AI, is gaining traction in education and healthcare segments, with increasing enterprise interest and new licenses [14] Market Data and Key Metrics Changes - The company is closely monitoring the imposition of tariffs and has seen strong quoting activity as customers evaluate near-shore manufacturing strategies for North America and China [5] - Nortech operates under a Maquiladora structure, which reduces direct exposure to tariffs on goods produced in Mexico [8] Company Strategy and Development Direction - The immediate strategic focus is on the potential IPO spinoff of Brightline as an independent publicly traded company, expected to occur in the first half of calendar year 2026 [15] - The company is exploring value creation alternatives as a clean, healthy, NASDAQ-listed technology company, with a focus on growing the Fortel AI software licenses [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by government shutdowns and budgetary delays but remains optimistic about contract materialization in 2026 [13] - The company expects continued growth in its business, particularly through the Fortel AI software licenses [21] Other Important Information - The company will not provide revenue guidance for the remainder of fiscal year 2026 due to the many moving parts currently in play [19] Q&A Session Summary Question: Are there any questions from the phone lines? - There were no questions from the phone lines [22] Question: Are there any questions submitted via the webcast? - There were no questions submitted via the webcast [24]

Revenue Performance - Total revenue for the three months ended September 30, 2025, was approximately $1.40 million, a decrease of approximately 43% compared to $2.44 million for the same period in 2024[106] - Software Services revenue was approximately $1.25 million, down approximately 44% from $2.23 million in the prior year, attributed to timing of Department of War contracts and U.S. Government budget delays[109] - Three customers accounted for approximately 79% of total gross revenues during the three months ended September 30, 2025[113] Profitability and Expenses - Gross profit margin decreased to approximately 72% for the three months ended September 30, 2025, compared to approximately 79% for the same period in 2024, primarily due to changes in the cost structure of Department of War projects[114] - Total operating expenses for the three months ended September 30, 2025, were approximately $2.34 million, a decrease of approximately 21% from $2.96 million in the prior year, reflecting the divestiture of the QReal business[115] - Research and development expenses for the three months ended September 30, 2025, were approximately $0.97 million, a decrease of approximately 13% from $1.12 million in the prior year[117] - Sales and marketing expenses decreased by approximately 57% to $0.32 million for the three months ended September 30, 2025, compared to $0.74 million in the prior year[119] - Adjusted EBITDA loss was $0.92 million for the three months ended September 30, 2025, compared to a loss of approximately $0.46 million for the same period in 2024, reflecting a decrease in revenue and gross margin[128] Net Loss and Cash Flow - Net loss for the three months ended September 30, 2025, was approximately $1.03 million, compared to a net loss of approximately $1.02 million for the same period in 2024, reflecting reduced revenue and gross margin offset by lower operating expenses[123] - Net cash used in operating activities increased to approximately $1.29 million for the three months ended September 30, 2025, from approximately $0.42 million in the same period of 2024, representing a 207% increase[130] - The net decrease in cash and cash equivalents was $1.27 million for the three months ended September 30, 2025, compared to a decrease of $0.43 million in the same period of 2024, indicating a 195% increase in cash outflow[129] Cash Position and Financing - Cash and cash equivalents at the end of the period were $5.56 million, up 294% from $1.41 million at the end of the same period in 2024[129] - The company had no outstanding debt obligations as of September 30, 2025[133] - Net cash provided by financing activities was approximately $0.03 million for the three months ended September 30, 2025, compared to zero for the prior year period[132] Strategic Initiatives - The company entered into a $2+ million SpatialCore contract to be delivered over a 12-month period starting August 13, 2025[104] - The company is exploring a potential spin-off of its BLI subsidiary to unlock shareholder value and provide growth resources, though the process is in early stages and uncertain[105] Other Financial Metrics - As of September 30, 2025, the company had $0.66 million in accounts receivable[133] - The contingent consideration for acquisition liabilities included a $1.50 million cash component, which was paid in October 2025[134] - The company experienced a flat year-over-year net cash used in investing activities, primarily related to equipment purchases[131]

Financial Performance - Q1 FY '26 revenue was approximately $1.40 million, a 43% decrease from Q1 FY '25 revenue of approximately $2.44 million, attributed to timing of contracts and U.S. Government budget delays [3] - Adjusted EBITDA loss for Q1 FY '26 was -$0.92 million, compared to -$0.46 million for Q1 FY '25, indicating a decline in revenue [3] - The net loss for Q1 FY '26 was $1.03 million, with a basic and diluted net loss per share of $0.05 [16] - For the three months ended September 30, 2025, the net loss was $1.03 million, compared to a net loss of $1.02 million in 2024, indicating a slight increase in losses year-over-year [19] - Adjusted EBITDA loss for Q3 2025 was $0.92 million, compared to a loss of $0.46 million in Q3 2024, reflecting a deterioration in operational performance [19] - Cash flows used in operating activities for Q3 2025 totaled $1.29 million, significantly higher than $0.43 million in Q3 2024, indicating increased cash outflows [18] Assets and Liabilities - The company's cash and equivalents as of September 30, 2025, were approximately $5.56 million, with an additional $0.66 million in accounts receivable [3] - Total current assets as of September 30, 2025, were approximately $7.33 million, down from $8.17 million as of June 30, 2025 [14] - Total liabilities as of September 30, 2025, were approximately $2.20 million, compared to $2.34 million as of June 30, 2025 [14] - The company reported a cash and cash equivalents balance of $5.56 million at the end of Q3 2025, down from $6.83 million at the beginning of the period [18] Revenue Recognition and Contracts - Brightline Interactive made an initial delivery on a multi-million annual SpatialCore contract with a Department of War entity, with further significant opportunities anticipated [3] - The company signed several contracts with a major oil service company, with an aggregate contract value in the mid 6-figure dollars for 3D brand environments and corporate presentations [3] - Deferred revenue increased by $0.02 million in Q3 2025, contrasting with a substantial decrease of $0.38 million in Q3 2024, indicating a shift in revenue recognition [18] Expenses and Compensation - Gross Margin for Q1 FY '26 was approximately 72%, compared to approximately 68% for FY '25, with expectations to remain in the 65-75% range [3] - Stock-based compensation expenses for Q3 2025 were $0.25 million, down from $0.37 million in Q3 2024, showing a reduction in employee compensation costs [19] - Depreciation and amortization expenses decreased to $0.06 million in Q3 2025 from $0.16 million in Q3 2024, indicating lower asset depreciation [19] IPO and Future Prospects - The company initiated the IPO/Spin-out process for Brightline Interactive in October 2025, with a potential IPO expected in the first half of calendar year 2026 [9] Changes in Accounts Receivable - The company experienced a significant change in accounts receivable, with an increase of $0.18 million in Q3 2025 compared to a decrease of $0.15 million in Q3 2024 [18]

Core Insights - The Glimpse Group, Inc. has initiated the IPO/spin-off process for its subsidiary Brightline Interactive, marking a significant strategic move [1] - Brightline Interactive has made its first delivery on a multi-million dollar SpatialCore contract with a Department of War entity, indicating strong business development [1] Financial Summary - For Q1 FY '26, which ended on September 30, 2025, the company reported financial results that reflect growth and strategic advancements [1] - The revenue generated from the initial delivery of the SpatialCore contract is expected to contribute positively to the company's financial performance [1]

Group 1: Virtual Reality Stocks Overview - Seven Virtual Reality stocks to watch include Meta Platforms, zSpace, DIH Holding US, and The Glimpse Group, identified by MarketBeat's stock screener tool [2] - Virtual reality stocks are shares of companies involved in developing, manufacturing, or supporting VR hardware, software, and content, with performance driven by adoption rates and technological advances [2] Group 2: Meta Platforms (META) - Meta Platforms, Inc. develops products for connecting people through mobile devices, PCs, VR headsets, and wearables, operating in two segments: Family of Apps and Reality Labs [3] - The Family of Apps segment includes Facebook, Instagram, Messenger, and WhatsApp, facilitating sharing, messaging, and community engagement [3] Group 3: zSpace (ZSPC) - zSpace Technologies, Inc. provides augmented and virtual reality technology primarily for the education market, offering hardware and software for K-12 STEM applications and career education [4] Group 4: DIH Holding US (DHAI) - DIH Holding US, Inc. operates as a robotics and VR technology provider in the rehabilitation industry across multiple regions, offering products like ArmeoPower and ArmeoSpring for arm and hand therapy [5][8] Group 5: The Glimpse Group (VRAR) - The Glimpse Group, Inc. is a VR and AR platform company providing enterprise-focused software and solutions, including QReal for 3D interactive models and Immersive Health Group for healthcare solutions [6]