The Glimpse (VRAR) - 2026 Q1 - Quarterly Results

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]