Reaffirm Revenues and Second Consecutive Quarter of Positive Cash Flow
NEW YORK, NY / ACCESS Newswire / May 15, 2025 / The Glimpse Group, Inc. ("Glimpse") (NASDAQ:VRAR)(FSE:9DR), a diversified Immersive Technology platform company providing enterprise-focused Virtual Reality ("VR"), Augmented Reality ("AR") and Spatial Computing software and services, provided financial results for its third quarter fiscal year 2025, ended March 31, 2025 ("Q3 FY '25").
Business Commentary by President & CEO Lyron Bentovim
Financial Summary:
- Q3 FY '25 revenue of approximately $1.4 million, a 25% decrease compared to Q3 FY '24 (ending March 31, 2024) revenue of approximately $1.9 million. This expected and previously discussed decrease was primarily driven by revenue recognition timing.
- Q4 FY '25 (ending June 30, 2025) revenue is expected to be in the $3.2-3.8 million range and profitable, as we deliver and recognize the final stage of the large Department of Defense ("DoD") entity's contract for Spatial Core.
- Last week, we received official confirmation for a new seven-figure Spatial Core deal, which we expect will be signed in the coming weeks. While the U.S. Government's Continuing Resolution and the lack of a Federal budget for 2025 has delayed the potential awarding of multiple Government and DoD opportunities, we continue to be well positioned for multiple opportunities and expect to confirm a few additional seven-figure Spatial Core opportunities in the coming months.
- Revenue for the nine months ended March 31, 2025 was approximately $7 million, essentially flat compared to the same nine month period last year, despite divesting and consolidating multiple subsidiary companies. For FY '25 (ending June 30, 2025), we expect revenues in the $10-11 million range, a 15-25% increase from FY '24.
- Gross Margin for Q3 FY '25 was approximately 72% compared to 70% for Q3 FY '24. We expect our going forward Gross Margin to be in the 65-75% range, an increase from our previous guidance due to a larger portion of revenue coming from Spatial Core and software license sales.
- Net Operating Cash provided from Operations in Q3 FY '25 was a positive cash gain of approximately $0.13 million, compared to a Net Operating Cash loss of approximately -$0.92 million for Q3 FY '24. This is our second consecutive positive quarter. Net Operating Cash loss from Operations in the nine month period FY '25 was approximately -$0.13 million, compared to approximately -$4.3 million for the same nine month period last year despite having a similar level of revenue for the period. This turnaround reflects our significant reorganization efforts, cost reductions and maintenance of high gross margins.
- The Company's cash and equivalent position as of March 31, 2025 was approximately $7.0 million, with an additional $0.65 million in accounts receivable. We continue to maintain a clean capital structure with no debt, no convertible debt and no preferred equity.
- For the full details of our financial results, please refer to our 10Q filed on 5/15/25.
- In light of the strong traction in Spatial Core's AI and Cloud driven revenues, a deep pipeline of revenues across our businesses, our position in the Immersive industry, tier 1 customer base, positive cash flow, cash balance and clean balance sheet we believe that there continues to be a sharp disconnect between our intrinsic value and our current public company valuation - both stand alone and versus our public and private comps. As such, we may seek to utilize our untapped $2 million common share buyback plan in order to protect our stock if circumstances warrant its utilization.
Recent Business Updates:
- BLI is expected to deliver its $4 million+ Department of Defense ("DoD") contract this month, which would represent a foundational achievement as well as positioning Spatial Core as an Operating System for spatial computing integrating AI into 3D environments - digital twins, drones, robotics, etc.
- During the quarter, BLI successfully delivered to the US Navy its first full motion Immersive Simulator System. This milestone marks a significant achievement in the adaptation of immersive technologies to enhance the capabilities, effectiveness, and safety of the US Military Services, setting the ground for potential follow-on contracts.
- Foretell Reality entered into several contracts for its AI driven immersive training product.
- Sector 5 Digital entered into follow-on agreements with Halliburton, Ecolab, Galderma, Walmart and AT&T.
- Glimpse Lenses' Snap revenues grew significantly from the prior quarter and is tracking well.
- Glimpse Learning entered into multiple software license contracts in the healthcare and educational segments.
Q3 Fiscal Year 2025 Conference Call and Webcast
Date: Thursday, May 15, 2025
Time: 9:00 a.m. Eastern time
USA Dial In: 888-506-0062
International: 973-528-0011
Participant Access Code: 633925
Webcast: https://www.webcaster4.com/Webcast/Page/2934/52387
Please dial in at least 10 minutes before the start of the call to ensure timely participation.
A playback of the webcast will be available through Friday, May 15, 2026. A replay of the teleconference will be available through Thursday, May 29, 2025. To listen, please call USA: 877-481-4010 or International: 919-882-2331; Replay Passcode: 52387. A webcast will also be available on the IR section of The Glimpse Group website (ir.theglimpsegroup.com) or by clicking the webcast link above.
Note about Non-GAAP Financial Measures
A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States of America, or GAAP. Non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results.
In addition to financial results presented in accordance with GAAP, this press release presents adjusted EBITDA, which is a non-GAAP measure. Adjusted EBITDA is determined by taking net loss and adding interest, taxes, depreciation, amortization and stock-based compensation expenses. The company believes that this non-GAAP measure, viewed in addition to and not in lieu of net loss, provides useful information to investors by providing a more focused measure of operating results. This metric is an integral part of the Company's internal reporting to evaluate its operations and the performance of senior management. A reconciliation of adjusted EBITDA to net loss, the most comparable GAAP measure, is available in the accompanying financial tables below. The non-GAAP measure presented herein may not be comparable to similarly titled measures presented by other companies.
About The Glimpse Group, Inc.
The Glimpse Group (NASDAQ:VRAR) is a diversified Immersive technology platform company, providing enterprise-focused Virtual Reality, Augmented Reality and Spatial Computing software & services. Glimpse's unique business model builds scale and a robust ecosystem, while simultaneously providing investors an opportunity to invest directly into this emerging industry via a diversified platform. For more information on The Glimpse Group, please visit www.theglimpsegroup.com
Safe Harbor Statement
This press release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. This press release may contain certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements, if provided, are based on information available to the Company as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business. Forward-looking statements, if provided, include statements regarding our expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "view," "could," "estimate," "expect," "intend," "may," "should," and "would" or similar words. All forecasts, if provided, are based on information available at this time and management expects that internal projections and expectations may change over time. In addition, any forecasts, if provided, are entirely on management's best estimate of our future financial performance given our current contracts, current backlog of opportunities and conversations with new and existing customers about our products and services. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.
Company Contact:
Maydan Rothblum
CFO & COO
The Glimpse Group, Inc.
(917) 292-2685
maydan@theglimpsegroup.com
THE GLIMPSE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of
March 31, 2025
As of
June 30, 2024
(Unaudited)
(Audited)
ASSETS
Cash and cash equivalents
$
7,058,020
$
1,848,295
Accounts receivable
652,118
723,032
Deferred costs/contract assets
605,562
170,781
Notes receivable
93,600
-
Prepaid expenses and other current assets
579,264
778,181
Total current assets
8,988,564
3,520,289
Equipment and leasehold improvements, net
70,975
167,325
Right-of-use assets, net
155,238
452,808
Intangible assets, net
161,253
487,867
Goodwill
10,857,600
10,857,600
Other assets
11,100
72,714
Total assets
$
20,244,730
$
15,558,603
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable
$
52,806
$
181,668
Accrued liabilities
780,330
340,979
Deferred revenue/contract liabilities
1,047,673
72,788
Lease liabilities, current portion
147,900
364,688
Contingent consideration for acquisitions, current portion
1,468,663
1,467,475
Total current liabilities
3,497,372
2,427,598
Long term liabilities
Contingent consideration for acquisitions, net of current portion
-
1,413,696
Lease liabilities, net of current portion
19,451
178,824
Total liabilities
3,516,823
4,020,118
Commitments and contingencies
-
-
Stockholders' Equity
Preferred Stock, par value $0.001 per share, 20 million shares
authorized; 0 shares issued and outstanding
-
-
Common Stock, par value $0.001 per share, 300 million shares
authorized; 21,043,756 and 18,158,217 issued and outstanding,
respectively
21,044
18,158
Additional paid-in capital
82,236,658
74,559,600
Accumulated deficit
(65,529,795
)
(63,039,273
)
Total stockholders' equity
16,727,907
11,538,485
Total liabilities and stockholders' equity
$
20,244,730
$
15,558,603
THE GLIMPSE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ended
For the Nine Months Ended
March 31
March 31
2025
2024
2025
2024
Revenue
Software services
$
1,283,287
$
1,466,397
$
6,641,652
$
6,510,740
Software license/software as a service
138,948
429,246
387,886
566,208
Total Revenue
1,422,235
1,895,643
7,029,538
7,076,948
Cost of goods sold
402,209
569,461
2,061,519
2,406,479
Gross Profit
1,020,026
1,326,182
4,968,019
4,670,469
Operating expenses:
Research and development expenses
829,815
1,136,848
2,610,038
4,209,518
General and administrative expenses
1,165,187
1,233,904
2,947,847
3,375,140
Sales and marketing expenses
483,138
559,681
1,606,236
2,138,539
Amortization of acquisition intangible assets
100,537
291,036
326,614
950,192
Goodwill impairment
-
-
-
379,038
Intangible asset impairment
-
-
-
522,166
Change in fair value of acquisition contingent consideration
26,012
(291,980
)
87,492
(4,317,524
)
Total operating expenses
2,604,689
2,929,489
7,578,227
7,257,069
Loss from operations before other income
(1,584,663
)
(1,603,307
)
(2,610,208
)
(2,586,600
)
Other income
Interest income
82,461
61,051
119,686
186,534
Net loss
$
(1,502,202
)
$
(1,542,256
)
$
(2,490,522
)
$
(2,400,066
)
Basic and diluted net loss per share
$
(0.07
)
$
(0.09
)
$
(0.13
)
$
(0.15
)
Weighted-average common shares outstanding for basic and diluted net loss per share
20,999,445
17,195,322
19,161,661
16,194,523
THE GLIMPSE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended March 31,
2025
2024
Cash flows from operating activities:
Net loss
$
(2,490,522
)
$
(2,400,066
)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization and depreciation
390,467
1,040,759
Common stock and stock option based compensation for employees and board of directors
715,545
1,742,126
Net gain on divestiture of subsidiaries
(1,392,434
)
(1,000,000
)
Reserve on note received in connection with divestiture of subsidiaries
1,500,000
1,000,000
Gain on office lease termination
(34,660
)
-
Accrued non cash performance bonus fair value adjustment
-
(551,236
)
Acquisition contingent consideration fair value adjustment
87,492
(4,317,524
)
Impairment of intangible assets
-
901,204
Issuance of common stock to vendors
3,087
88,472
Adjustment to operating lease right-of-use assets and liabilities
(43,605
)
(99,144
)
Changes in operating assets and liabilities:
Accounts receivable
70,914
478,598
Deferred costs/contract assets
(434,781
)
86,347
Loans receivable
(9,600
)
-
Prepaid expenses and other current assets
198,917
(251,030
)
Other assets
5,349
(1,506
)
Accounts payable
(128,862
)
(214,705
)
Accrued liabilities
442,496
(388,644
)
Deferred revenue/contract liabilities
994,063
(396,546
)
Net cash used in operating activities
(126,134
)
(4,282,895
)
Cash flow used in investing activities:
Purchase of leasehold improvements and equipment
(41,453
)
(19,346
)
Payment of contingent consideration for acquisition
(1,500,000
)
-
Cash used in investing activities
(1,541,453
)
(19,346
)
Cash flows provided by financing activities:
Proceeds from securities purchase agreement, net
6,785,552
2,968,501
Proceeds from exercise of warrants
175,760
-
Issuance of note receivable
(84,000
)
-
Net cash provided by financing activities
6,877,312
2,968,501
Net change in cash and cash equivalents
5,209,725
(1,333,740
)
Cash and cash equivalents, beginning of year
1,848,295
5,619,083
Cash and cash equivalents, end of period
$
7,058,020
$
4,285,343
Non-cash Investing and Financing activities:
Issuance of common stock for satisfaction of contingent liability
$
-
$
974,647
Issuance of common stock for non cash performance bonus
$
-
$
490,360
Lease liabilities arising from right-of-use assets
$
20,344
$
113,182
The following table presents a reconciliation of net loss to Adjusted EBITDA for the three and nine months ended March 31, 2025 and 2024:
For the Three Months Ended
For the Nine Months Ended
March 31,
March 31,
2025
2024
2025
2024
(in millions)
(in millions)
Net loss
$
(1.50
)
$
(1.54
)
$
(2.49
)
$
(2.40
)
Depreciation and amortization
0.12
0.32
0.39
1.04
EBITDA loss
(1.38
)
(1.22
)
(2.10
)
(1.36
)
Stock based compensation expenses
0.31
0.62
0.71
1.83
Loss on subsidiary divestiture
-
-
0.11
-
Gain on office lease termination
-
-
(0.03
)
-
Non cash change in fair value of acquisition contingent consideration
0.03
(0.29
)
0.09
(4.32
)
Intangible asset and goodwill impairment
-
-
-
0.90
Non cash change in fair value of accrued performance bonus
-
-
-
(0.55
)
Adjusted EBITDA loss
$
(1.04
)
$
(0.89
)
$
(1.22
)
$
(3.50
)
SOURCE: The Glimpse Group, Inc.
View the original press release on ACCESS Newswire
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