The Glimpse (VRAR) - 2025 Q3 - Quarterly Results

Financial & Operational Highlights The company shows improved cash flow and strong future guidance despite a Q3 revenue dip, supported by strategic contracts Financial Summary 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] - 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] Forward-Looking Guidance and Strategy 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] - Management believes the company's stock is undervalued and may use its untapped $2 million common share buyback plan if warranted[3] Recent Business Updates The company's subsidiaries secured significant contracts and achieved key milestones, demonstrating broad-based business momentum Subsidiary Performance and Key Contracts 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] - Sector 5 Digital secured follow-on agreements with major clients including Halliburton, Ecolab, Galderma, Walmart, and AT&T[9] - 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] Financial Statements 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 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 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 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) 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) |