PART I - FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) The unaudited condensed consolidated financial statements for the period ended March 31, 2025, show a significant increase in cash and cash equivalents to $7.06 million, primarily due to financing activities [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to **$20.2 million** from **$15.6 million**, driven by a rise in cash and cash equivalents from **$1.8 million** to **$7.1 million**, while total liabilities decreased, leading to increased stockholders' equity Condensed Consolidated Balance Sheet Highlights (in USD) | Balance Sheet Item | March 31, 2025 (Unaudited) | June 30, 2024 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $7,058,020 | $1,848,295 | | Total current assets | $8,988,564 | $3,520,289 | | Goodwill | $10,857,600 | $10,857,600 | | **Total assets** | **$20,244,730** | **$15,558,603** | | **Liabilities & Equity** | | | | Total current liabilities | $3,497,372 | $2,427,598 | | Total liabilities | $3,516,823 | $4,020,118 | | Total stockholders' equity | $16,727,907 | $11,538,485 | | **Total liabilities and stockholders' equity** | **$20,244,730** | **$15,558,603** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, revenue decreased to **$1.42 million** with a net loss of **$1.50 million**, while the nine-month revenue remained flat at **$7.03 million** with a slight increase in net loss to **$2.49 million** Operating Results (in USD) | Metric | Q3 FY2025 (3 months ended Mar 31, 2025) | Q3 FY2024 (3 months ended Mar 31, 2024) | Nine Months FY2025 (ended Mar 31, 2025) | Nine Months FY2024 (ended Mar 31, 2024) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$1,422,235** | **$1,895,643** | **$7,029,538** | **$7,076,948** | | Software services | $1,283,287 | $1,466,397 | $6,641,652 | $6,510,740 | | Software license/SaaS | $138,948 | $429,246 | $387,886 | $566,208 | | **Gross Profit** | **$1,020,026** | **$1,326,182** | **$4,968,019** | **$4,670,469** | | **Loss from operations** | **($1,584,663)** | **($1,603,307)** | **($2,610,208)** | **($2,586,600)** | | **Net Loss** | **($1,502,202)** | **($1,542,256)** | **($2,490,522)** | **($2,400,066)** | | **Basic and Diluted EPS** | **($0.07)** | **($0.09)** | **($0.13)** | **($0.15)** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended March 31, 2025, net cash used in operating activities significantly improved to **($0.13 million)**, with net cash provided by financing activities of **$6.88 million**, resulting in a **$5.21 million** net increase in cash Cash Flow Summary (Nine Months Ended March 31, in USD) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($126,134) | ($4,282,895) | | Net cash used in investing activities | ($1,541,453) | ($19,346) | | Net cash provided by financing activities | $6,877,312 | $2,968,501 | | **Net change in cash and cash equivalents** | **$5,209,725** | **($1,333,740)** | | **Cash and cash equivalents, end of period** | **$7,058,020** | **$4,285,343** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's immersive technology business, liquidity, accounting policies, and significant events including subsidiary divestitures and a **$6.79 million** financing agreement - The company is an Immersive technology company providing Virtual Reality (VR), Augmented Reality (AR), and Spatial Computing software and services[27](index=27&type=chunk) - In December 2024 and January 2025, the company raised approximately **$6.79 million** in net cash proceeds from a Securities Purchase Agreement (SPA)[29](index=29&type=chunk)[30](index=30&type=chunk) - Effective October 1, 2024, the company divested its subsidiary QReal and Glimpse Turkey in a management buyout, retaining revenue from QReal's largest customer up to a **$1.35 million** milestone[71](index=71&type=chunk)[73](index=73&type=chunk) - As of March 31, 2025, the company had approximately **$3.34 million** in unfulfilled performance obligations on executed contracts[65](index=65&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strategic shift to 'Spatial Core' technologies, stable revenue, decreased operating expenses, and improved liquidity driven by a **$6.79 million** financing, leading to a reduced Adjusted EBITDA loss [Overview](index=28&type=section&id=Overview) The company operates as an enterprise-focused Immersive technology provider, initiating a strategic shift in fiscal year 2024 to prioritize 'Spatial Core' solutions integrating Spatial Computing, Cloud, and AI - The company is an Immersive technology company focused on enterprise VR, AR, and Spatial Computing software and services[143](index=143&type=chunk) - A strategic shift in FY2024 focuses the business on 'Spatial Core' solutions, integrating Spatial Computing, Cloud, and Artificial Intelligence (AI)[146](index=146&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) For the nine months ended March 31, 2025, total revenue was flat at **$7.03 million**, gross profit increased by **6%** to **$4.97 million** with a **71%** gross margin, and operating expenses decreased by **30%** (excluding impairments and fair value changes) Revenue by Category (Nine Months Ended March 31, in millions USD) | Category | 2025 | 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Software Services | $6.64 | $6.51 | $0.13 | 2% | | Software License/SaaS | $0.39 | $0.57 | ($0.18) | -32% | | **Total Revenue** | **$7.03** | **$7.08** | **($0.05)** | **-1%** | - Gross profit margin for the nine months ended March 31, 2025, increased to **71%** from 66% in the prior year, reflecting a revenue mix with less third-party costs[159](index=159&type=chunk) - Operating expenses, excluding impairments and fair value changes, decreased by **30%** for the nine months ended March 31, 2025, compared to the prior year, reflecting the strategic shift and divestitures[160](index=160&type=chunk)[161](index=161&type=chunk) - Customer concentration remains high, with two customers accounting for **58%** of total gross revenues during the nine months ended March 31, 2025[158](index=158&type=chunk) [Non-GAAP Financial Measures](index=34&type=section&id=Non-GAAP%20Financial%20Measures) The company uses Adjusted EBITDA to evaluate core operating performance, with the loss significantly improving to **$1.22 million** for the nine months ended March 31, 2025, from **$3.50 million** in the prior year Reconciliation of Net Loss to Adjusted EBITDA (in millions USD) | Metric | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net loss | $(2.49) | $(2.40) | | Depreciation and amortization | $0.39 | $1.04 | | EBITDA loss | $(2.10) | $(1.36) | | Stock based compensation expenses | $0.71 | $1.83 | | Loss on subsidiary divestiture | $0.11 | - | | Non cash change in fair value of acquisition contingent consideration | $0.09 | $(4.32) | | Intangible asset and goodwill impairment | - | $0.90 | | **Adjusted EBITDA loss** | **$(1.22)** | **$(3.50)** | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, cash and cash equivalents increased to **$7.06 million**, driven by **$6.88 million** from financing activities, with net cash used in operating activities improving by **97%** to **($0.13 million)** - Cash and cash equivalents stood at **$7.06 million** as of March 31, 2025[179](index=179&type=chunk) - Net cash used in operating activities for the nine months ended March 31, 2025, improved by **97%** to **($0.13 million)** from ($4.28 million) in the prior-year period[175](index=175&type=chunk)[176](index=176&type=chunk) - The company raised approximately **$6.88 million** from financing activities during the nine months ended March 31, 2025[178](index=178&type=chunk) - As of March 31, 2025, the company had no outstanding debt obligations[180](index=180&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=36&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This disclosure is not required for smaller reporting companies - Not required for smaller reporting companies[183](index=183&type=chunk) [Controls and Procedures](index=36&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[185](index=185&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[187](index=187&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=37&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company reported no legal proceedings - None[189](index=189&type=chunk) [Risk Factors](index=37&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2024 - There have been no material changes to the risks described in the Annual Report on Form 10-K for the fiscal year ended June 30, 2024[190](index=190&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During the three months ended March 31, 2025, the company issued **11,750 shares** of common stock for compensation and vendor expenses, valued at **$29,023**, exempt from registration under Section 4(a)(2) of the Securities Act - During the three months ended March 31, 2025, the Company issued **11,750 shares** of common stock for compensation and vendor expenses with a value of **$29,023**[191](index=191&type=chunk) [Exhibits](index=38&type=section&id=ITEM%206.%20EXHIBITS) The report includes several exhibits, primarily certifications from the Principal Executive Officer and Principal Financial Officer as required by the Exchange Act, and Inline XBRL documents - Filed exhibits include CEO and CFO certifications (31.1, 31.2, 32.1) and Inline XBRL data files (101 series)[197](index=197&type=chunk)

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) The company shows improved cash flow and strong future guidance despite a Q3 revenue dip, supported by strategic contracts [Financial Summary](index=1&type=section&id=Financial%20Summary) Q3 FY'25 revenue decreased **25%** to **$1.4 million**, yet the company achieved positive operating cash flow and strengthened its cash position to **$7.0 million** with no debt Q3 FY'25 Financial Performance | Metric | Q3 FY'25 | Q3 FY'24 | Change | | :--- | :--- | :--- | :--- | | Revenue | ~$1.4M | ~$1.9M | -25% | | Gross Margin | ~72% | 70% | +2 p.p. | Nine-Month FY'25 Financial Performance | Metric | Nine Months FY'25 | Nine Months FY'24 | Change | | :--- | :--- | :--- | :--- | | Revenue | ~$7.0M | ~$7.0M | Flat | - The company achieved its second consecutive quarter of **positive cash flow from operations**, with a gain of approximately **$0.13 million** in Q3 FY'25, compared to a loss of **$0.92 million** in Q3 FY'24 For the nine-month period, the net operating cash loss was reduced to approximately **$0.13 million** from **$4.3 million** in the prior year[3](index=3&type=chunk) - As of March 31, 2025, the company's cash and equivalents stood at approximately **$7.0 million**, with an additional **$0.65 million** in accounts receivable The capital structure remains clean with **no debt**, convertible debt, or preferred equity[3](index=3&type=chunk) [Forward-Looking Guidance and Strategy](index=1&type=section&id=Forward-Looking%20Guidance%20and%20Strategy) The company projects strong Q4 FY'25 revenues of **$3.2-3.8 million** and full-year revenues of **$10-11 million**, aiming for profitability and considering share buybacks Revenue Guidance | Period | Revenue Guidance | | :--- | :--- | | Q4 FY'25 | $3.2 - $3.8 million | | Full Year FY'25 | $10 - $11 million (15-25% YoY growth) | - A new **seven-figure Spatial Core deal** has been officially confirmed and is expected to be signed in the coming weeks The company anticipates confirming additional similar deals in the coming months, despite delays from the U.S Government's budget process[3](index=3&type=chunk) - Management believes the company's stock is **undervalued** and may use its untapped **$2 million common share buyback plan** if warranted[3](index=3&type=chunk) [Recent Business Updates](index=2&type=section&id=Recent%20Business%20Updates) The company's subsidiaries secured significant contracts and achieved key milestones, demonstrating broad-based business momentum [Subsidiary Performance and Key Contracts](index=2&type=section&id=Subsidiary%20Performance%20and%20Key%20Contracts) Glimpse's subsidiaries secured significant contracts and achieved key milestones, including BLI's DoD contract and US Navy simulator delivery, demonstrating broad business momentum - BLI is expected to deliver its **$4 million+ Department of Defense (DoD) contract**, positioning Spatial Core as an operating system for spatial computing It also successfully delivered its **first full-motion Immersive Simulator System** to the US Navy[9](index=9&type=chunk) - Sector 5 Digital secured **follow-on agreements** with **major clients** including Halliburton, Ecolab, Galderma, Walmart, and AT&T[9](index=9&type=chunk) - Foretell Reality entered **new contracts** for its AI-driven immersive training, Glimpse Lenses' Snap revenues grew **significantly**, and Glimpse Learning signed **multiple software license contracts** in healthcare and education[9](index=9&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) The financial statements reflect a strengthened balance sheet with increased cash and equity, improved operating cash flow, and reduced net losses [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2025, shows a significant increase in cash to **$7.1 million** and total stockholders' equity to **$16.7 million**, with reduced liabilities Condensed Consolidated Balance Sheets (USD) | Balance Sheet Item | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $7,058,020 | $1,848,295 | | Total Assets | $20,244,730 | $15,558,603 | | Total Liabilities | $3,516,823 | $4,020,118 | | Total Stockholders' Equity | $16,727,907 | $11,538,485 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 FY'25 revenue was **$1.4 million** with a **$1.5 million** net loss, while nine-month revenue remained flat at **$7.0 million** with a **$2.5 million** net loss Condensed Consolidated Statements of Operations (Three Months Ended March 31, USD) | For the Three Months Ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | $1,422,235 | $1,895,643 | | Gross Profit | $1,020,026 | $1,326,182 | | Net Loss | $(1,502,202) | $(1,542,256) | | Basic and Diluted Net Loss per Share | $(0.07) | $(0.09) | Condensed Consolidated Statements of Operations (Nine Months Ended March 31, USD) | For the Nine Months Ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | $7,029,538 | $7,076,948 | | Gross Profit | $4,968,019 | $4,670,469 | | Net Loss | $(2,490,522) | $(2,400,066) | | Basic and Diluted Net Loss per Share | $(0.13) | $(0.15) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities dramatically improved to **($0.13 million)** for the nine months ended March 31, 2025, with financing activities providing **$6.88 million** Condensed Consolidated Statements of Cash Flows (Nine Months Ended March 31, USD) | For the Nine Months Ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(126,134) | $(4,282,895) | | Cash used in investing activities | $(1,541,453) | $(19,346) | | Net cash provided by financing activities | $6,877,312 | $2,968,501 | | **Net change in cash** | **$5,209,725** | **$(1,333,740)** | [Non-GAAP Reconciliation (Adjusted EBITDA)](index=7&type=section&id=Non-GAAP%20Reconciliation%20(Adjusted%20EBITDA)) Adjusted EBITDA loss significantly reduced to **($1.22 million)** for the nine months ended March 31, 2025, reflecting successful cost reduction efforts Adjusted EBITDA Reconciliation (Three Months Ended March 31) | (in millions) | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net Loss | $(1.50) | $(1.54) | | **Adjusted EBITDA loss** | **$(1.04)** | **$(0.89)** | Adjusted EBITDA Reconciliation (Nine Months Ended March 31) | (in millions) | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net Loss | $(2.49) | $(2.40) | | **Adjusted EBITDA loss** | **$(1.22)** | **$(3.50)** |

Economic Impact - President Trump's return to the White House in January 2025 has led to significant economic policy changes, resulting in historic levels of uncertainty and market volatility for investors [1] - The U.S. stock market experienced its worst performance in the first 100 days of any presidential term since 1974, with the S&P 500 losing 7.3%, equating to a market value loss of $3.66 trillion [2] - Consumer confidence has declined, inflation expectations have risen, and tourism has sharply decreased, indicating a broader economic slowdown [3] Market Performance - The S&P 500 fell into correction territory by March, with a notable decline following the announcement of new tariffs, leading to a 9.5% drop in the Dow Jones over two days [5] - Despite some recovery, the market remains volatile, with the Dow Jones and S&P 500 registering consecutive winning sessions [6] Sector Analysis - The "Magnificent Seven" tech stocks have significantly underperformed, with Apple down 15.7%, NVIDIA down 18.8%, and Tesla down 27.7% [7] - The trade tariff disputes have driven demand for gold, with the Sprott Gold Miners ETF up 36.8% as investors seek safe-haven assets [12] Policy Changes - President Trump issued approximately 140 executive orders in his first 100 days, focusing on immigration, education, and federal regulations, a pace not seen since Franklin D. Roosevelt [8] - The introduction of a 10% tariff on all imports and specific levies up to 145% on Chinese goods has sparked global trade tensions, although there are signs of potential easing [9][10] ETF Performance - Volatility ETFs like iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) have surged by 48% amid market uncertainty [11] - Conversely, ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ) has seen a decline of 42.8%, reflecting investor caution [14]

Group 1 - Trip.com (NASDAQ: TCOM) reported a 173% increase in inbound tourism orders for the upcoming Labor Day holiday compared to the previous year, indicating a positive trend for the company [1] Group 2 - Astrada Advisors specializes in investment research across technology, media, internet, and consumer sectors in North America and Asia, focusing on identifying high-potential investments and navigating complex industries [1] - The research provided by Astrada Advisors integrates fundamental analysis with data-driven insights, offering a comprehensive view of industry dynamics and key trends [1]

Core Insights - 36Kr Holdings Inc. hosted the "2025 AI Partner Conference" focusing on AI-powered super applications and scenario-based innovation, featuring prominent speakers from academia and industry [1][2] - The conference included discussions on emerging dynamics in the AI era and the potential of next-generation AI applications, with segments dedicated to identifying future super apps [2] - 36Kr introduced the "2025 AI-Native Application Innovation Cases" and "2025 AI Partner Innovation Awards" to recognize outstanding AI applications across various sectors, emphasizing AI's role in driving industry transformation [3] Company Overview - 36Kr Holdings Inc. is a leading platform serving New Economy participants in China, providing high-quality content and business services to meet the evolving needs of both new and traditional companies [5] - The company leverages a comprehensive database and strong data analytics capabilities to capture growth potential in China's New Economy [5] Future Initiatives - Following the conference, 36Kr aims to empower transformative AI companies in China through the "Disruptor Initiative," which will identify and support enterprises with disruptive potential [4] - The initiative will integrate global resources and foster collaboration between industry and academia to enhance the global presence of Chinese technology [4]

Revenue Performance - Total revenue for the three months ended December 31, 2024, was approximately $3.17 million, an increase of 52% compared to $2.08 million for the same period in 2023[148]. - Software Services revenue for the three months ended December 31, 2024, was approximately $3.13 million, reflecting a 54% increase from $2.03 million in the same period of 2023[151]. - Total revenue for the six months ended December 31, 2024, was approximately $5.61 million, an increase of 8% compared to $5.18 million for the same period in 2023[148]. - Software License revenue for the six months ended December 31, 2024, increased by 79% to approximately $0.25 million compared to $0.14 million for the same period in 2023[152]. Profitability and Margins - Gross profit margin for the three months ended December 31, 2024, was approximately 64%, down from 68% in the same period of 2023[154]. - Net income for the three months ended December 31, 2024, was approximately $0.02 million, an improvement from a loss of $0.74 million in 2023; the net loss for the six months was approximately $0.98 million compared to $0.86 million in 2023[165]. - Adjusted EBITDA income was $0.28 million for the three months ended December 31, 2024, compared to a loss of $1.33 million in 2023; for the six months, the loss improved to $0.17 million from $2.61 million[171]. Expenses and Cost Management - Total operating expenses for the three months ended December 31, 2024, were approximately $2.02 million, a decrease of 9% from $2.23 million in 2023; for the six months, expenses increased by 15% to $4.97 million from $4.33 million[157]. - Internal staffing costs for the three months ended December 31, 2024, were approximately $0.86 million, representing 75% of total cost of revenue, compared to $0.44 million (67%) in 2023, indicating a strategic shift to Spatial Core[155]. - Research and development expenses decreased by 53% to approximately $0.66 million for the three months ended December 31, 2024, and by 42% to $1.78 million for the six months, reflecting a divestiture and headcount reductions[158]. - General and administrative expenses decreased by 19% to approximately $0.85 million for the three months ended December 31, 2024, and by 17% to $1.78 million for the six months, due to headcount reductions and cost savings[159]. - Sales and marketing expenses decreased by 51% to approximately $0.38 million for the three months ended December 31, 2024, and by 29% to $1.12 million for the six months, reflecting the divestiture of QReal/Turkey[160]. Strategic Changes - The company divested its wholly owned entities QReal, LLC and its related operating entity in Turkey, effective October 1, 2024, as part of a strategic realignment[143]. - The company shifted its business focus to immersive technology solutions driven by Spatial Computing, Cloud, and AI, referred to as "Spatial Core"[141]. - Customer concentration was high, with three customers accounting for approximately 80% of total gross revenues during the three months ended December 31, 2024[153]. Cash Flow and Financial Position - Net cash used in operating activities improved to approximately $0.25 million for the six months ended December 31, 2024, from $3.36 million in 2023, reflecting better profit margins and expense reductions[173]. - Net cash provided by financing activities was approximately $6.87 million for the six months ended December 31, 2024, compared to $2.97 million in 2023, primarily from securities purchase agreements with institutional investors[175]. - Cash, cash equivalents, and restricted cash at the end of the period increased by 62% to $8.44 million from $5.22 million in 2023[172]. - As of December 31, 2024, the Company had cash and cash equivalents of $8.45 million[176]. - The Company had no outstanding debt obligations as of December 31, 2024[176]. - There was no issued and outstanding preferred stock as of December 31, 2024[177]. - Contingent consideration for acquisition liabilities includes cash components up to $3.0 million, potentially payable through September 2025[177].

Financial Performance - Q2 FY '25 revenue was approximately $3.17 million, a 52% increase compared to Q2 FY '24 revenue of approximately $2.08 million[2] - Positive adjusted EBITDA of approximately $0.28 million in Q2 FY '25, compared to an adjusted EBITDA loss of approximately -$1.33 million for Q2 FY '24[2] - The company expects Q3 FY '25 revenue to decline to between $1.5 million and $2 million, but anticipates a strong Q4 FY '25 with revenue between $3.3 million and $4 million[2] - For FY '25, the company expects aggregate revenue to exceed $11 million, representing a 25%+ increase compared to $8.8 million for FY '24[2] - The company reported a net loss of $988,320 for the six months ended December 31, 2024, compared to a net loss of $857,810 for the same period in 2023[17] - Adjusted EBITDA for the six months ended December 31, 2024, was a loss of $0.17 million, improving from a loss of $2.61 million in the same period of 2023[18] Cash and Liquidity - The company's cash and equivalents as of December 31, 2024, were approximately $8.5 million, with an additional $1.4 million in accounts receivable[2] - Cash and cash equivalents at the end of the period increased to $8,445,288, up from $5,220,653 at the beginning of the year[17] - The company experienced a net cash used in operating activities of $253,153 for the six months ended December 31, 2024, significantly lower than $3,358,180 for the same period in 2023[17] - The company generated $6,785,552 from securities purchase agreements in financing activities, compared to $2,968,501 in the prior year[17] - The company’s accounts receivable decreased by $668,847 for the six months ended December 31, 2024[17] Contracts and Business Development - Brightline Interactive delivered a significant milestone on its $4 million+ Department of Defense contract during the quarter[9] - Brightline Interactive entered into an initial contract with the US Navy for an Immersive, AI-Driven Simulator System, setting the stage for potential follow-on contracts[9] - The company has made strong progress in commercializing its AI-driven immersive training product, experiencing encouraging initial traction with customers and partners[9] Capital Structure and Compliance - The company maintains a clean capital structure with no debt, no convertible debt, and no preferred equity[2] - The company regained compliance with Nasdaq Listing Rule 5550(a)(2), which requires a minimum bid price of $1.00 per share[2] Expenses and Divestitures - Stock-based compensation expenses for the six months ended December 31, 2024, were $407,231, down from $1,135,048 in the same period of 2023[17] - The company reported a depreciation and amortization expense of $272,615 for the six months ended December 31, 2024, compared to $720,458 in the same period of 2023[17] - The company recorded a net gain on divestiture of subsidiaries amounting to $1,397,066 for the six months ended December 31, 2024[17] - The company had a loss on subsidiary divestiture of $0.10 million for the three months ended December 31, 2024[18]

Core Insights - The Glimpse Group, Inc. is a diversified Immersive Technology platform company focused on enterprise Virtual Reality, Augmented Reality, and Spatial Computing software and services [1][2] - The President & CEO, Lyron Bentovim, will be interviewed on Schwab Network's "Trading 360" on January 22, 2025, at 11:30 am ET [1][2] Company Overview - The Glimpse Group operates a unique business model that builds scale and a robust ecosystem, providing investors an opportunity to invest in the emerging Immersive Technology industry [2] - The company is listed on NASDAQ under the ticker VRAR and also trades on the Frankfurt Stock Exchange under the ticker 9DR [1][2] Event Details - The interview will cover topics related to The Glimpse Group, Immersive Technology, Spatial Computing, AI, and key partnerships [2] - The event can be accessed live via the Schwab Network website and will also be available for replay [2]

Core Insights - The Glimpse Group, Inc. is a diversified Immersive Technology platform company focused on enterprise Virtual Reality, Augmented Reality, and Spatial Computing software and services [1][2] - The President & CEO, Lyron Bentovim, will be interviewed on Schwab Network's "Trading 360" on January 22, 2025, at 11:30 am ET [1][2] Company Overview - The Glimpse Group operates a unique business model that builds scale and a robust ecosystem, providing investors an opportunity to invest in the emerging Immersive Technology industry through a diversified platform [2] - The company is listed on NASDAQ under the ticker VRAR and also trades on FSE under 9DR [1][2] Event Details - The interview will cover topics related to The Glimpse Group, Immersive Technology, Spatial Computing, AI, and key partnerships [2] - The event can be accessed live via the Schwab Network website and will also be available for replay [2]

Financial Data and Key Metrics Changes - Q1 fiscal year 2025 revenue was approximately $2.44 million, reflecting a 44% increase compared to Q4 fiscal year 2024 revenue of approximately $1.7 million, but a 21% decrease compared to Q1 fiscal year 2024 revenue of approximately $3.1 million [16] - Gross margin for Q1 fiscal year 2025 was approximately 79%, compared to 62% for Q1 fiscal year 2024, driven by increased Spatial Core revenues and higher software license revenues [18] - Adjusted EBITDA loss for Q1 fiscal year 2025 was approximately $0.46 million, an improvement from an adjusted EBITDA loss of approximately $1.29 million for Q1 fiscal year 2024 [19] - The company expects revenue in the next three quarters to exceed $3 million on average per quarter, with aggregate revenue for fiscal year 2025 projected to be in the $11 million to $12 million range, representing a 25% to 35% increase compared to fiscal year 2024 [17] Business Line Data and Key Metrics Changes - The company delivered the first phase of a large DoD contract and made significant progress towards securing multimillion-dollar contracts in spatial computing and AI-driven immersive software solutions, with short-term aggregate value expected between $5 million to $10 million [5] - Other immersive businesses continued positive momentum, including contracts with a global water and hygiene infrastructure company and a global energy company, both in the mid-six figure range [6] - QReal, a subsidiary, saw a significant increase in revenue driven by demand for AR lenses and 3D models [6] Market Data and Key Metrics Changes - The company has faced challenging headwinds in the immersive industry over the past two years but is now experiencing concrete positive growth indicators [7] - The divestiture of QReal is expected to create approximately $4 million of net cash value over the next two years, simplifying operations and eliminating Turkey country risk [12][13] Company Strategy and Development Direction - The company is exploring aggressive strategic options to unlock value inherent in its business and assets, while focusing on profitable growth [10][23] - The divestiture of QReal is part of a strategic realignment to streamline operations and focus on core business areas [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about revenue growth and cash flow positivity in the upcoming quarters, despite the current disconnect between intrinsic value and market valuation [8][9] - The company expects to maintain a clean capital structure with no debt and does not intend to raise capital in the foreseeable future [21][22] Other Important Information - The company’s cash and equivalent position as of September 30, 2024, was approximately $1.4 million, with an additional $0.9 million in accounts receivable [21] - The company anticipates that the transformation and positive developments achieved recently will not yet be reflected in its stock price [9] Q&A Session Summary Question: Discussion on operating expense level - Management confirmed that the current operating expense is under $1 million per month, which includes cost savings related to QReal [26][27] Question: Customer opportunities and industry diversity - Management noted that many customers are approaching the company with needs, indicating a strong network of relationships and potential for future growth [28][29] Question: Software license revenue segment - Management indicated that the recent doubling of software license revenue is expected to be a more durable figure moving forward, with potential for growth as contracts expand [32][34] Question: Government contracts and budgetary processes - Management clarified that government contracts are tied to the upcoming budgetary process, with expectations for approvals early in 2025 [36]