The Glimpse (US:VRAR)2025-09-30 13:32Financial 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 expected to remain in the 65%-75% range [15][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][10] - BLI achieved significant milestones, including a $4 million+ initial contract for a unified synthetic training ecosystem for the Department of Defense [7] - Additional contracts include a $2 million SpatialCore contract and the delivery of an advanced immersive simulator to the U.S. Navy [8][9] Market Data and Key Metrics Changes - BLI's growth potential is emphasized in the U.S. Department of Defense and enterprise big data segments, including oil and gas and aviation [10] - The company has established relationships with major customers and a significant pipeline for future growth, although the contracting process with the Department of Defense is noted to be slow and complex [10][11] Company Strategy and Development Direction - The company plans to spin out Brightline Interactive to maximize shareholder value and enhance its chances of success as an independent entity [12] - The spin-out is expected to occur early in 2026, with Glimpse shareholders receiving shares in the new entity [13][33] - The company aims to maintain a clean capital structure with no debt and to continue focusing on existing businesses while pursuing growth opportunities [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future revenue growth, although they cautioned that revenue recognition may be choppy due to the nature of DOD contracts [15] - The company is focused on unlocking shareholder value and has several strategic options to achieve this [17] - Management highlighted the importance of integrating immersive technologies with AI in education and healthcare sectors, although these are less of a focus for BLI [22] Other Important Information - The company achieved cash flow neutrality for the first time in its history, with a net operating cash loss of approximately -$0.27 million for fiscal year 2025 compared to -$5.2 million in fiscal year 2024 [16] - The cash and equivalent position as of June 30, 2025, was approximately $6.85 million, with an additional $0.85 million in accounts receivable [16] Q&A Session Summary Question: What are BLI's opportunities outside of defense? - Management indicated that while BLI has made strides in defense, there are also opportunities in enterprise sectors, although education and healthcare are more focused on other entities within the company [20][22] Question: What is the expected timeframe for the spin-off? - Management expects to initiate the spin-off process in the coming weeks, aiming for completion early in 2026 [23][33] Question: Will there be a name change for Brightline Interactive? - Management confirmed that there are no plans for a name change, as Brightline has a strong brand presence [26] Question: Will the company have cash needs moving forward? - Management stated that they expect to operate fully with the current cash reserves [34] Question: Will there be joint ventures with larger companies for Brightline Interactive? - Management is actively looking for partnerships and has significant relationships with leading technology companies [43]