The Glimpse (VRAR) - 2025 Q1 - Quarterly Report

Revenue Performance - Total revenue for the three months ended September 30, 2024, was approximately $2.44 million, a decrease of approximately 21$3.10 million for the same period in 2023[125] - Software Services revenue decreased by approximately 26%, from $3.01 million in 2023 to approximately$2.23 million in 2024[127] - Software License revenue increased by approximately 133%, from $0.09 million in 2023 to approximately$0.21 million in 2024, attributed to the addition of a significant customer[128] Profitability and Expenses - Gross profit margin improved to approximately 79% for the three months ended September 30, 2024, compared to approximately 62% for the same period in 2023[129] - Total operating expenses increased by approximately 42%, from $2.09 million in 2023 to approximately$2.96 million in 2024[131] - Research and development expenses decreased by approximately 33%, from $1.68 million in 2023 to approximately$1.12 million in 2024[133] - General and administrative expenses decreased by approximately 15%, from $1.10 million in 2023 to approximately$0.94 million in 2024[134] - Sales and marketing expenses decreased by approximately 9%, from $0.81 million in 2023 to approximately$0.74 million in 2024[135] - Amortization of acquisition intangible assets expense decreased by approximately 65% to $0.13 million for the three months ended September 30, 2024, compared to$0.37 million in the same period of 2023[136] - Intangible asset impairment was zero for the three months ended September 30, 2024, compared to approximately $0.89 million in the same period of 2023[137] Net Loss and Cash Flow - Net loss increased to approximately$1.02 million for the three months ended September 30, 2024, from $0.12 million in the same period of 2023, reflecting a loss increase of approximately$0.90 million[139] - Adjusted EBITDA loss improved to $0.46 million for the three months ended September 30, 2024, compared to a loss of$1.29 million in the same period of 2023, indicating a reduction in expenses[145] - Net cash used in operating activities was approximately $0.42 million for the three months ended September 30, 2024, an improvement of approximately$1.26 million from $1.68 million in the same period of 2023[152] - Cash and cash equivalents decreased to$1.41 million as of September 30, 2024, down from $3.93 million at the end of the same period in 2023, representing a decline of approximately 64$64.05 million as of September 30, 2024, and expects to continue generating negative cash flow for the foreseeable future[147] Going Concern and Future Outlook - The company expects that its cash and cash equivalents may not be sufficient to fund operations for at least the next twelve months, indicating substantial doubt about its ability to continue as a going concern[147] - The company may consider actions such as further cost reductions and equity or debt financings to alleviate going concern issues, although there is no assurance these actions will be successful[148] - The company anticipates recording a loss of approximately $0.10 million from a divestiture transaction when finalized in the quarter ended December 31, 2024[113] - The company retains contract revenues from QReal's largest customer until it collects and retains$1.35 million net cash, after which it will receive a monthly cash revenue share for 18 months[122] - Contingent consideration for acquisition liabilities includes cash components up to $3.0 million, potentially payable through September 2025, contingent on achieving certain revenue milestones[155]