The Glimpse (US:VRAR)2025-09-30 13:30Financial 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]