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]

Financial Data and Key Metrics Changes - Fiscal year 2025 revenue was approximately $10.5 million, a 20% increase from fiscal year 2024 revenue of approximately $8.8 million, primarily driven by an increase in SpatialCore revenues [14] - Q4 fiscal year 2025 revenue was approximately $3.5 million, a 105% increase compared to Q4 fiscal year 2024 revenue of approximately $1.7 million, and a 150% increase compared to Q3 fiscal year 2025 revenue of approximately $1.4 million [15] - Gross margin for fiscal year 2025 was approximately 67.5%, consistent with 67% for fiscal year 2024, and expected to remain in the 65%-75% range [15][16] Business Line Data and Key Metrics Changes - Brightline Interactive (BLI) is identified as the main growth engine, focusing on advanced spatial computing and AI-driven operational simulation middleware software [5][10] - BLI achieved significant milestones, including a $4 million+ initial contract for a unified synthetic training ecosystem for the Department of Defense [7] - Additional contracts include a $2 million SpatialCore contract and the delivery of an advanced immersive simulator to the U.S. Navy [8][9] Market Data and Key Metrics Changes - BLI's growth potential is emphasized in the U.S. Department of Defense and enterprise big data segments, including oil and gas and aviation [10] - The company has established relationships with major customers and a significant pipeline for future growth, although the contracting process with the Department of Defense is noted to be slow and complex [10][11] Company Strategy and Development Direction - The company plans to spin out Brightline Interactive to maximize shareholder value and enhance its chances of success as an independent entity [12] - The spin-out is expected to occur early in 2026, with Glimpse shareholders receiving shares in the new entity [13][33] - The company aims to maintain a clean capital structure with no debt and to continue focusing on existing businesses while pursuing growth opportunities [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future revenue growth, although they cautioned that revenue recognition may be choppy due to the nature of DOD contracts [15] - The company is focused on unlocking shareholder value and has several strategic options to achieve this [17] - Management highlighted the importance of integrating immersive technologies with AI in education and healthcare sectors, although these are less of a focus for BLI [22] Other Important Information - The company achieved cash flow neutrality for the first time in its history, with a net operating cash loss of approximately -$0.27 million for fiscal year 2025 compared to -$5.2 million in fiscal year 2024 [16] - The cash and equivalent position as of June 30, 2025, was approximately $6.85 million, with an additional $0.85 million in accounts receivable [16] Q&A Session Summary Question: What are BLI's opportunities outside of defense? - Management indicated that while BLI has made strides in defense, there are also opportunities in enterprise sectors, although education and healthcare are more focused on other entities within the company [20][22] Question: What is the expected timeframe for the spin-off? - Management expects to initiate the spin-off process in the coming weeks, aiming for completion early in 2026 [23][33] Question: Will there be a name change for Brightline Interactive? - Management confirmed that there are no plans for a name change, as Brightline has a strong brand presence [26] Question: Will the company have cash needs moving forward? - Management stated that they expect to operate fully with the current cash reserves [34] Question: Will there be joint ventures with larger companies for Brightline Interactive? - Management is actively looking for partnerships and has significant relationships with leading technology companies [43]

Financial Data and Key Metrics Changes - Fiscal year 2025 revenue was approximately $10.5 million, a 20% increase compared to fiscal year 2024 revenue of approximately $8.8 million, primarily driven by an increase in SpatialCore revenues [14] - Q4 fiscal year 2025 revenue was approximately $3.5 million, a 105% increase compared to Q4 fiscal year 2024 revenue of approximately $1.7 million, and a 150% increase compared to Q3 fiscal year 2025 revenue of approximately $1.4 million [15] - Gross margin for fiscal year 2025 was approximately 67.5%, consistent with 67% for fiscal year 2024, and is expected to remain in the 65% to 75% range [15][16] Business Line Data and Key Metrics Changes - Brightline Interactive (BLI) is identified as the main growth engine, focusing on advanced spatial computing and AI-driven operational simulation middleware software [5][10] - BLI achieved several critical milestones, including a $4+ million contract for a unified synthetic training ecosystem for a major Department of Defense entity [7] - BLI has a robust pipeline of potential customers in the U.S. Department of Defense and enterprise sectors, including oil and gas and aviation [10] Market Data and Key Metrics Changes - The company has established significant relationships with major customers across various industries, indicating a strong market presence [5] - The U.S. Department of Defense is highlighted as a primary market, with additional opportunities in education and healthcare being explored [22] Company Strategy and Development Direction - The company plans to spin out Brightline Interactive to maximize shareholder value and enhance its growth potential as an independent entity [12] - The strategy includes maintaining a clean capital structure with no debt and focusing on high-margin software sales [16] - The company aims to aggressively pursue growth opportunities while minimizing public communications during the transition period [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future revenue growth, expecting fiscal year 2026 revenue to exceed fiscal year 2025 revenue, despite potential revenue recognition timing challenges [15] - The management acknowledged the complexity and slow nature of U.S. Department of Defense contracting but remains confident in the growth potential of Brightline Interactive [10][12] Other Important Information - The company achieved annual cash flow neutrality for the first time in its history, marking a significant turnaround [4] - The company maintains a clean balance sheet with approximately $6.85 million in cash and equivalents as of June 30, 2025 [16] Q&A Session Summary Question: What are the primary opportunities for BLI? - Management indicated that BLI's opportunities are primarily in defense, with some exploration into education and healthcare through other subsidiaries [20][22] Question: What is the expected timeframe for the spin-off of BLI? - Management expects to initiate the spin-off process in the coming weeks, aiming for completion early in 2026 [23][33] Question: Will there be a name change for Brightline Interactive post-spin-off? - Management confirmed that there are no plans for a name change, as Brightline has a strong brand presence [26] Question: Will the company have sufficient cash to operate without additional needs? - Management affirmed that the current cash position is sufficient for operations [34]

Financial Data and Key Metrics Changes - Fiscal year 2025 revenue was approximately $10.5 million, a 20% increase from fiscal year 2024 revenue of approximately $8.8 million, primarily driven by an increase in SpatialCore revenues [14] - Q4 fiscal year 2025 revenue was approximately $3.5 million, a 105% increase compared to Q4 fiscal year 2024 revenue of approximately $1.7 million, and a 150% increase compared to Q3 fiscal year 2025 revenue of approximately $1.4 million [15] - Gross margin for fiscal year 2025 was approximately 67.5%, consistent with 67% for fiscal year 2024, and is expected to remain in the 65% to 75% range [15][16] - The company achieved annual cash flow neutrality for the first time in its history, with a net operating cash loss of approximately negative $0.27 million for fiscal year 2025, compared to negative $5.2 million for fiscal year 2024 [16] Business Line Data and Key Metrics Changes - Brightline Interactive (BLI) is identified as the main growth engine, focusing on advanced spatial computing and AI-driven operational simulation middleware software [5] - BLI secured a $4+ million initial contract for a unified synthetic training ecosystem for a major Department of Defense entity, along with a $2+ million SpatialCore contract with another Department of Defense entity [6][10] - BLI delivered an advanced immersive simulation to the U.S. Navy, enhancing military training capabilities [8] Market Data and Key Metrics Changes - The company has established significant relationships with major customers across various industries, including the Department of Defense and big data-driven enterprises [5] - There is a robust pipeline of new potential customers in sectors such as oil and gas, aviation, and technology [10] Company Strategy and Development Direction - The company plans to spin out Brightline Interactive to maximize shareholder value and enhance its growth potential as an independent entity [12] - The strategy aims to allow Glimpse shareholders to receive shares in the spun-out BLI public entity while maintaining their holdings in Glimpse [13] - The focus will remain on existing businesses while pursuing aggressive growth strategies in the coming months [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that while significant strides have been made, the current valuation does not reflect the true value of Brightline Interactive [11] - The company expects fiscal year 2026 revenue to exceed fiscal year 2025 revenue, although quarterly revenue may be choppy due to the nature of government contracts [15][16] - Management is optimistic about the future, emphasizing the immense opportunities ahead [17] Other Important Information - The company filed seven new patents focused on integrating AI with immersive technologies during fiscal year 2025 [4] - The company maintains a clean capital structure with no debt, convertible debt, or preferred equity [16] Q&A Session Summary Question: What are the primary opportunities for BLI? - Management indicated that BLI's opportunities are primarily in defense, but there are also potential overlaps with education and healthcare [19][20] Question: What is the expected timeframe for the spin-off of BLI? - Management expects to initiate the spin-off process in the coming weeks, with completion anticipated early in 2026 [23][30] Question: Will there be a name change for Brightline Interactive post-spin-off? - Management does not expect any name changes, as Brightline Interactive has a strong brand presence [25] Question: How does the company plan to integrate AI solutions into healthcare and education? - Management plans to partner with industry specialists to integrate their know-how with the company's AI solutions for broader market offerings [28][29] Question: What are the cash needs for the company moving forward? - Management expects to operate fully with the current cash reserves without additional cash needs [32]

[Fiscal Year 2025 Financial Results Overview](index=1&type=section&id=FY25%20Financial%20Results%20Overview) [FY25 Financial and Operational Highlights](index=1&type=section&id=Financial%20Summary) The Glimpse Group reported significant revenue growth in FY25 and Q4 FY25, achieved near cash breakeven, and maintained strong gross margins, driven by SpatialCore revenues and strategic reorganization efforts Revenue Growth | Metric | FY25 | FY24 | Change (YoY) | | :------------------- | :----------- | :----------- | :------------- | | Total Revenue | $10.5 million | $8.8 million | +20% | | Q4 FY25 Revenue | $3.5 million | $1.7 million | +105% | | Q4 FY25 vs Q3 FY25 | $3.5 million | $1.4 million | +150% | - Gross Margin for FY25 was approximately **67.5%**, on par with **67%** for FY24, and is expected to remain in the **65-75%** range due to increased SpatialCore and software license sales[5](index=5&type=chunk) Cash Flow & Position (as of June 30, 2025) | Metric | Amount | | :-------------------------- | :----------- | | Net Operating Cash loss (FY25) | ~-$0.27 million | | Net Operating Cash loss (FY24) | ~-$5.2 million | | Cash and equivalents | ~$6.85 million | | Accounts receivable | ~$0.85 million | - The company achieved essentially **cash breakeven** for FY25, marking an extraordinary turnaround, and maintains a clean capital structure with **no debt, convertible debt, or preferred equity**[5](index=5&type=chunk) - FY26 revenue is expected to exceed FY25, but quarterly revenue will be 'choppy' with Q1 FY26 significantly lower than Q4 FY25, followed by sequential growth, due to the nature of Brightline's DoW contracts and potential U.S. Government budget delays[5](index=5&type=chunk) - Key FY25 achievements include a return to revenue growth, first-time annual cash flow neutrality, significant Tier-1 customer wins, divestiture of non-core assets, key technology developments integrating AI into Immersive products, and filing of **7 new patents** focused on AI with immersive technologies[5](index=5&type=chunk) [Strategic Business Developments and Outlook](index=1&type=section&id=Strategic%20Review%20and%20Update) The Glimpse Group's growth is primarily driven by Brightline Interactive (BLI) and its SpatialCore product, which secured significant Department of War (DoW) contracts and achieved key technological milestones in AI-driven spatial computing, leading to a strategic decision to spin out BLI - Brightline Interactive (BLI), through its SpatialCore product, provides advanced Spatial Computing, AI-driven, operational simulation middleware software and solutions to the Department of War (DoW) and Big Data driven enterprises[6](index=6&type=chunk) - SpatialCore is positioned at the intersection of Spatial Computing, Immersive technologies, AI, Cloud, and Geospatial Data, functioning as an operating system for 3D information processing on the cloud[6](index=6&type=chunk) - BLI achieved several critical milestones in FY25, including a **$4+ million** initial contract for a unified synthetic training ecosystem for a major DoW entity, a **$2+ million** SpatialCore contract with another DoW entity, delivery of an immersive simulator to the U.S. Navy, and a Cooperative Research And Development Agreement (CRADA) with the U.S. Army DEVCOM C5ISR Center for AI/ML algorithm training[6](index=6&type=chunk) - These initial contracts have the potential to expand into multi-million and multi-year follow-on contracts, potentially leading to inclusion in exceptionally large, long-term DoW Programs of Record, with a robust pipeline of new potential customers in both DoW and enterprise Big Data segments[6](index=6&type=chunk) [BLI Spin-out Strategy](index=3&type=section&id=BLI%20Spin-out%20Strategy) Glimpse Group's Board of Directors has approved a strategy to spin out Brightline Interactive (BLI) into an independent, publicly traded company to unlock its intrinsic value, which is currently not reflected in Glimpse's valuation - BLI's intrinsic value is believed to be significantly undervalued within Glimpse's current valuation, with public company comparables in the Defense Tech/AI segment trading at substantially higher multiples of trailing annual revenue[10](index=10&type=chunk) - The Board of Directors concluded that spinning out BLI is the best way to maximize shareholder value for Glimpse shareholders and increase BLI's chances of success, as its true value and potential are currently 'hidden' and 'encumbered' within the Glimpse umbrella[10](index=10&type=chunk) - If successful, BLI will become an independent, publicly traded 'PURE PLAY' company focused on Spatial Computing, AI-Driven, Cloud Operational Simulation Middleware for DoW and Big Data enterprises[10](index=10&type=chunk) - As part of the process, Glimpse shareholders are planned to be issued shares in the spun-out BLI public entity as a distribution, while retaining their holdings in Glimpse, which is expected to pursue attractive alternatives as a clean, healthy, Nasdaq-listed technology company[10](index=10&type=chunk) [Company Information and Investor Resources](index=3&type=section&id=Company%20Information%20%26%20Investor%20Resources) [Conference Call and Webcast Information](index=3&type=section&id=Fiscal%20Year%202025%20Conference%20Call%20and%20Webcast) The Glimpse Group held a conference call and webcast on September 30, 2025, to discuss its fiscal year 2025 financial results, with replay options available for a limited time - A conference call and webcast for Fiscal Year 2025 results was held on September 30, 2025, at 8:30 a.m. Eastern time[7](index=7&type=chunk) - Replay of the webcast will be available through Wednesday, September 2026, and a teleconference replay through Tuesday, October 15, 2025[8](index=8&type=chunk) [About The Glimpse Group, Inc.](index=4&type=section&id=About%20The%20Glimpse%20Group%2C%20Inc.) The Glimpse Group is a diversified Immersive Technology platform company providing enterprise-focused Immersive Technology, Spatial Computing, and AI-driven software and services, aiming to offer investors a diversified entry into this emerging industry - The Glimpse Group (NASDAQ: VRAR) is a diversified Immersive Technology platform company[12](index=12&type=chunk) - It provides enterprise-focused Immersive Technology, Spatial Computing, and AI-driven software & services[12](index=12&type=chunk) - The company's business model aims to build scale and a robust ecosystem, while offering investors an opportunity to invest directly into the emerging industry via a diversified platform[12](index=12&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) This press release contains forward-looking statements based on current expectations, which are subject to risks and uncertainties, and the company assumes no obligation to update this information - The press release may contain forward-looking statements based on current expectations, forecasts, and assumptions that involve risks and uncertainties[13](index=13&type=chunk) - Actual results may differ materially from those stated or implied due to business risks and uncertainties[13](index=13&type=chunk) - The company assumes no obligation to update the information included in the press release, whether as a result of new information, future events, or otherwise[13](index=13&type=chunk) [Company Contact Information](index=4&type=section&id=Company%20Contact) Contact information for The Glimpse Group's CFO & COO, Maydan Rothblum, is provided for inquiries - Company Contact: Maydan Rothblum, CFO & COO[14](index=14&type=chunk) - Contact details: (917) 292-2685, maydan@theglimpsegroup.com[14](index=14&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=5&type=section&id=THE%20GLIMPSE%20GROUP%2C%20INC.%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, The Glimpse Group significantly increased its cash and cash equivalents, leading to a substantial rise in total assets, while total liabilities decreased, strengthening its stockholders' equity Assets (as of June 30) | Asset Category | 2025 | 2024 | Change | | :-------------------------------- | :------------ | :------------ | :------- | | Cash and cash equivalents | $6,832,725 | $1,848,295 | +270% | | Accounts receivable | $840,551 | $723,032 | +16.26% | | Total current assets | $8,172,657 | $3,520,289 | +132.16% | | Total assets | $19,279,066 | $15,558,603 | +23.91% | Liabilities & Stockholders' Equity (as of June 30) | Liability/Equity Category | 2025 | 2024 | Change | | :-------------------------------- | :------------ | :------------ | :------- | | Total current liabilities | $2,338,472 | $2,427,598 | -3.67% | | Total liabilities | $2,343,176 | $4,020,118 | -41.73% | | Total stockholders' equity | $16,935,890 | $11,538,485 | +46.79% | [Consolidated Statements of Operations](index=6&type=section&id=THE%20GLIMPSE%20GROUP%2C%20INC.%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For FY25, The Glimpse Group reported a 19.58% increase in total revenue, primarily from software services, and significantly reduced its net loss by 60.08% compared to FY24, driven by lower operating expenses Revenue (For the Years Ended June 30) | Revenue Category | 2025 | 2024 | Change (YoY) | | :-------------------------- | :----------- | :----------- | :------------- | | Software services | $9,996,491 | $8,130,515 | +23% | | Software license/software as a service | $503,734 | $673,684 | -25.23% | | Royalty income | $27,700 | - | N/A | | **Total Revenue** | **$10,527,925** | **$8,804,199** | **+19.58%** | Profitability (For the Years Ended June 30) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------------- | :----------- | :----------- | :------------- | | Gross profit | $7,119,979 | $5,862,739 | +21.45% | | Total operating expenses | $9,862,313 | $12,478,798 | -20.97% | | Loss from operations before other income | $(2,742,334) | $(6,616,059) | -58.55% | | **Net loss** | **$(2,552,651)** | **$(6,394,295)** | **-60.08%** | Per Share Data (For the Years Ended June 30) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------------- | :----- | :----- | :------------- | | Basic and diluted net loss per share | $(0.13) | $(0.38) | -65.79% | | Weighted-average common shares outstanding | 19,633,374 | 16,681,234 | +17.69% | [Consolidated Statements of Cash Flows](index=7&type=section&id=THE%20GLIMPSE%20GROUP%2C%20INC.%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The Glimpse Group significantly improved its cash flow from operating activities in FY25, moving from a substantial net cash outflow to near breakeven, primarily due to reduced net loss and various non-cash adjustments, while financing activities provided substantial cash Cash Flows from Operating Activities (For the Year Ended June 30) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------------- | :------------ | :------------ | :------------- | | Net loss | $(2,552,651) | $(6,394,295) | -60.08% | | Net cash used in operating activities | $(273,774) | $(5,209,847) | -94.74% | Cash Flows from Investing Activities (For the Year Ended June 30) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------------- | :------------ | :------------ | :------------- | | Cash used in investing activities | $(1,542,508) | $(1,529,442) | +0.85% | Cash Flows from Financing Activities (For the Year Ended June 30) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------------- | :------------ | :------------ | :------------- | | Net cash provided by financing activities | $6,800,712 | $2,968,501 | +129.03% | Cash and Cash Equivalents (For the Year Ended June 30) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------------- | :------------ | :------------ | :------------- | | Net change in cash and cash equivalents | $4,984,430 | $(3,770,788) | N/A (turnaround) | | Cash and cash equivalents, end of year | $6,832,725 | $1,848,295 | +270% | [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) [Note on Non-GAAP Financial Measures](index=4&type=section&id=Note%20about%20Non-GAAP%20Financial%20Measures) Non-GAAP financial measures are presented to provide additional insights into performance but are not a substitute for GAAP measures and may not be comparable to those of other companies - Non-GAAP financial measures are numerical measures of performance, financial position, or cash flows that either exclude or include amounts not normally excluded or included in GAAP[9](index=9&type=chunk) - These measures are not in accordance with, nor a substitute for, GAAP measures and may not be comparable to similarly titled measures presented by other companies[9](index=9&type=chunk)[11](index=11&type=chunk) - The company believes adjusted EBITDA provides useful information to investors by offering a more focused measure of operating results and is an integral part of internal reporting to evaluate operations and management performance[11](index=11&type=chunk) [Adjusted EBITDA Reconciliation](index=8&type=section&id=Adjusted%20EBITDA%20Reconciliation) The Glimpse Group reported a significant reduction in Adjusted EBITDA loss for FY25, improving from $(4.63) million in FY24 to $(0.87) million, reflecting operational improvements and reduced non-cash expenses Adjusted EBITDA Loss (For the Years Ended June 30, in millions) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------- | :----- | :----- | :------------- | | Net loss | $(2.55) | $(6.39) | -60.09% | | EBITDA loss | $(2.04) | $(5.03) | -59.44% | | **Adjusted EBITDA loss** | **$(0.87)** | **$(4.63)** | **-81.21%** | - Key adjustments to reconcile net loss to Adjusted EBITDA loss include depreciation and amortization, stock-based compensation expenses, loss on subsidiary divestiture, gain on lease termination, change in fair value of acquisition contingent consideration, and intangible asset impairment[21](index=21&type=chunk)

Core Insights - The Glimpse Group, Inc. reported a revenue of approximately $10.5 million for fiscal year 2025, marking a 20% increase from the previous fiscal year’s revenue of approximately $8.8 million [1] Financial Summary - Fiscal year 2025 revenue reached approximately $10.5 million, reflecting a growth of about 20% compared to fiscal year 2024 [1] - The company achieved essentially breakeven cash flow during the fiscal year [1] Strategic Focus - The company is emphasizing AI-centric contracts and has outlined a strategic plan aimed at unlocking significant value [1]