The Glimpse (VRAR) - 2026 Q1 - Quarterly Report

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]