Glimpse Group, Inc. SEC 10-K Report

The Glimpse Group, Inc., an immersive technology company specializing in Virtual Reality (VR), Augmented Reality (AR), and Spatial Computing software and services, has released its annual Form 10-K report. The report provides a comprehensive overview of the company's financial performance, strategic initiatives, and the challenges it faces in the rapidly evolving immersive technology industry.

Financial Highlights

• Total Revenue: $10.53 million, an increase of approximately 20% from the previous year, primarily due to the addition of new Spatial Core customers.
• Gross Profit: $7.12 million, reflecting a gross profit margin of approximately 68%, up from 67% in the previous year, driven by increased margin on Spatial Core revenue.
• Loss from Operations before Other Income: $(2.74) million, an improvement of 59% compared to the previous year, reflecting increased revenue and reduced operating expenses.
• Net Loss: $(2.55) million, an improvement of approximately $3.84 million or 60% from the previous year, due to increased revenue and cost reductions.
• Adjusted EBITDA loss: $(0.87) million, a significant improvement from the previous year's $(4.63) million, driven by increased revenue and expense reductions.

Business Highlights

• Company Overview: The Glimpse Group, Inc. is an immersive technology company focused on Virtual Reality (VR), Augmented Reality (AR), and Spatial Computing software and services. The company operates primarily in the United States and targets a wide array of industry verticals including corporate training, education, healthcare, government, and more.
• Strategic Shift: In fiscal year 2024, Glimpse Group shifted its business focus to prioritize immersive technology solutions driven by Spatial Computing, Cloud, and Artificial Intelligence, with a key product being 'Spatial Core' led by Brightline Interactive, LLC.
• Glimpse Ecosystem: The company operates a collaborative ecosystem of immersive technology entities, each targeting different industry segments in a non-competitive manner. This structure aims to reduce time-to-market, enhance product quality, and create go-to-market synergies.
• Divestiture: As part of a strategic realignment, Glimpse Group divested its subsidiary QReal, LLC in a management buyout, retaining certain revenue streams and securing a senior secured convertible note and minority equity stake in the new entity.
• Revenue Segments: The company reports revenue in three categories: Software Services, Software License/Software-as-a-Service (SaaS), and Royalty Income. Software Services saw a 23% increase, driven by new Spatial Core customers.
• Competitive Environment: Glimpse Group does not develop hardware but focuses on software solutions compatible with various hardware. The software segment is less competitive than traditional markets, with no dominant player, positioning Glimpse to potentially lead in this space.
• Intellectual Property: The company holds 10 issued patents and has 13 patent applications in process, emphasizing the importance of IP in its business strategy.
• Future Outlook: Glimpse Group plans to continue expanding its ecosystem through potential acquisitions and strategic divestitures, focusing on enhancing its competitive position in the immersive technology space.

Strategic Initiatives

• Strategic Shift: The Glimpse Group, Inc. executed a strategic shift to focus on immersive technology solutions driven by Spatial Computing, Cloud, and Artificial Intelligence, particularly through its product 'Spatial Core'. This shift included divesting non-core businesses such as QReal and PulpoAR to streamline operations and focus on core competencies.
• Capital Management: The company significantly improved its liquidity position, ending the fiscal year with $6.83 million in cash and cash equivalents, up from $1.84 million the previous year. This was achieved through a combination of increased revenue, reduced operating expenses, and a successful securities purchase agreement in December 2024, which provided net proceeds of $6.80 million. The company has no outstanding debt obligations and no issued and outstanding preferred stock as of June 30, 2025.
• Future Outlook: The company intends to continue leveraging its strategic shift towards Spatial Computing and AI-driven solutions to drive growth. It plans to maintain its focus on capital efficiency and liquidity management, with no immediate plans for issuing dividends, as it prioritizes reinvestment into business development and potential acquisitions. The company remains an 'emerging growth company' and a 'smaller reporting company', which allows it to benefit from certain regulatory exemptions.

Challenges and Risks

• Early Stage and Financial Risks: As an early-stage technology company, Glimpse has incurred significant net losses since inception and may continue to do so. The company may require additional capital to sustain operations and growth, which may not be available on favorable terms.
• Market and Competitive Risks: The Immersive technology market is highly competitive and dynamic, with new products and services frequently introduced. Larger competitors with greater resources may impact Glimpse's market share and pricing.
• Customer Concentration: A limited number of customers account for a significant portion of revenues, posing risks if these customers reduce or terminate their business with Glimpse.
• Technological and Development Risks: The company must continuously innovate and adapt to rapidly changing technology and industry standards. Delays or failures in product development could adversely affect the business.
• Operational Risks: The company's growth plans place significant demands on resources, and failure to manage growth effectively could harm the business.
• Intellectual Property Risks: Protecting intellectual property is critical, and any failure to do so could increase competition and impact financial performance.
• Cybersecurity Risks: Security breaches or cyberattacks could harm the company's reputation and financial condition.
• Future Outlook: Management highlights the strategic shift towards Spatial Computing and AI as a growth driver. The company aims to leverage its diversified ecosystem to mitigate risks and capitalize on market opportunities. However, the need for ongoing R&D and potential technical challenges remain concerns.

SEC Filing: Glimpse Group, Inc. [ VRAR ] - 10-K - Sep. 29, 2025