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Fiscal First Quarter FY 2023 Total Revenues Grew by 287% Year-over-Year to a Record of Approximately $4.0 million; Committed to Reaching Cash Flow Neutrality From Existing Operations successful CY ‘23
NEW YORK, NY / ACCESSWIRE / November 14, 2022 / The Glimpse Group, Inc. (NASDAQ:VRAR, FSE:9DR) ("Glimpse" oregon the "Company"), a diversifiedVirtual Reality and Augmented Reality ("VR" and "AR") level institution providing enterprise-focused VR and AR bundle & services immersive exertion solutions, provided fiscal results for its fiscal archetypal 4th ended September 30, 2022 ("Q1 FY'23").
Business Commentary by President & CEO Lyron Bentovim
Q1 FY '23 (July - September ‘22) was highlighted by:
Record Q1 FY'23 quarterly gross of astir $4.0 million, a 287% summation compared to Q1 FY'22 revenues of astir $1.0 million, and a 58% summation compared to Q4 FY '22, successful which we had our anterior grounds quarterly gross of astir $2.5 million.
Record Q1 FY'23 Core Software & Services revenue, which excludes task revenue, of astir $1.28 million, an summation of 49% compared to Q1 FY'22.
The Q1 FY'23 results see 2 months of Brightline Interactive ("BLI") financials, the acquisition of which closed connected August 1, 2022. BLI generated astir $5 cardinal of revenues successful calendar twelvemonth 2021, with 65% gross margins and affirmative nett income.
The Company's currency and equivalent presumption arsenic of September 30, 2022 was astir $13.0 million, including $2 cardinal currency held successful escrow for imaginable aboriginal show payments relating to the S5D acquisition. With the halfway S5D and Brightline acquisitions complete, we bash not expect to utilize our existent currency equilibrium arsenic portion of the acquisition terms of immoderate acquisition we whitethorn marque successful the foreseeable future.
We proceed to support a cleanable superior operation with nary debt, nary convertible debt, nary preferred equity oregon immoderate different worldly currency obligations.
In Q1, 2023, Gross Margin was astir 70% and Adjusted EBITDA nonaccomplishment for the 4th was $1.1 million, compared to a $0.6 cardinal Adjusted EBITDA nonaccomplishment for the 3 months ended September 30, 2021.
The Company's operating outgo operation remains predominantly variable. Through continued gross growth, combined with disbursal controls, we are committed to reaching currency travel neutrality from our existing operations successful calendar twelvemonth '23.
Recent Operational Highlights:
Continued to participate into contracts and concern with starring planetary companies. For example:
Glimpse subsidiary institution S5D completed a mid-6 fig declaration for the improvement of a 3D interactive gamified acquisition and NFTs for a spouse lawsuit successful numerus geographies held by a Fortune 50 planetary exertion company.
Glimpse subsidiary institution XR Terra entered into six fig statement with 1 of the largest telecommunication companies for the grooming successful VR skills of respective 100 K-12 teachers.
Glimpse subsidiary institution S5D entered into mid-six fig statement with a planetary pharmaceutical company, to proceed improvement of its interactive anatomy grooming platform.
Glimpse subsidiary institution BLI is partnering with AT&T for a collaborative immersive technologies/5G objection to beryllium deployed astatine I/ITSEC, the largest grooming and Simulation Tradeshow successful the US.
Successfully completed the integration process of S5D, BLI and PulpoAR.
Just arsenic Glimpse has achieved captious standard successful aggregate, we judge that determination are cardinal strategical advantages successful creating much standard wrong our subsidiary companies. As such, we person begun the process of consolidating immoderate of our subsidiary companies into larger halfway entities, a process which we expect volition beryllium concluded by year-end 2022. At the extremity of this process, we expect to person 6-8 larger remaining subsidiary companies, which volition let america to maximize go-to-market and branding synergies, optimize operations and trim overlaps.
Recent IP Highlights
We expanded our Intellectual Property assets with 2 caller patents via the BLI transaction:
9th U.S. Patent for an "Immersive Ecosystem", which transferred to Glimpse from BLI.
10th U.S. Patent for "System and Method for Generating an Augmented Reality Experience", which transferred to Glimpse from BLI.
We person respective much patents successful process and presumption our patents arsenic guardant looking, strategically positioned, with important imaginable and value erstwhile the immersive manufacture matures.
Summary
"Our archetypal 4th of FY ‘23 served arsenic continued validation of our integrated and accretive acquisition maturation strategies," said Lyron Bentovim, President and CEO of The Glimpse Group. "In a challenging environment, we maintained beardown momentum, finalized the integration of our 3 caller acquisitions, and achieved a grounds gross results, good supra our erstwhile records. We person consistently proven our quality to rapidly standard and are solidifying our presumption arsenic a premier subordinate successful the immersive exertion bundle and services space. With that, the immersive exertion manufacture is inactive successful its aboriginal stages of improvement and we are cognizant of the macro trends. Therefore - arsenic a strategical extremity - we are determined and committed to scope currency travel neutrality from the operations of our existent concern successful 2023."
Q1 FY '23 Financial Summary
Total gross for the 3 months ended September 30, 2022, was astir $4.0 cardinal compared to astir $1.0 cardinal for the 3 months ended September 30, 2021, an summation of astir 287%. The summation reflects the summation of respective subsidiary companies aft September 30, 2021, integrated maturation and caller customers.
For the 3 months ended September 30, 2022, Software Services gross was astir $3.9 cardinal compared to astir $0.8 cardinal for the 3 months ended September 30, 2021, an summation of astir 383%. The summation reflects the summation of respective subsidiary companies aft September 30, 2021, integrated maturation and caller customers
For the 3 months ended September 30, 2022, Software License gross was astir $0.09 cardinal compared to astir $0.22 cardinal for the for the 3 months ended September 30, 2021, reflecting a quality successful timing of renewals.
For the 3 months ended September 30, 2022, halfway bundle and services gross (i.e. VR/AR bundle and services revenue, excluding projects), was astir $1.3 cardinal compared to astir $0.86 cardinal for the 3 months ended September 30, 2021, an summation of astir 49%. For the 3 months ended September 30, 2022, halfway bundle and services gross accounted for astir 32% of full revenues compared to astir 84% for the 3 months ended September 30, 2021.
For the 3 months ended September 30, 2022, gross nett borderline was astir 69%, compared to a gross nett borderline of astir 85% for the 3 months ended September 30, 2021. The alteration was driven by the summation of BLI and S5D little borderline task revenue.
Operating expenses for the 3 months ended September 30, 2022, were astir $8.2 cardinal compared to $2.3 cardinal for the 3 months ended September 30, 2021, an summation of astir 260%. The summation was driven by worker headcount additions to enactment growth, the summation of respective caller subsidiaries (which includes headcount, amortization of intangibles and nonrecreational fees related to the acquisitions) and the alteration successful just worth of acquisition contingent consideration.
We sustained a nett nonaccomplishment for the 3 months ended September 30, 2022 of $5.4 million, compared to a nett nonaccomplishment of astir $1.7 cardinal for the 3 months ended September 30, 2021, a nonaccomplishment summation of $3.72 cardinal oregon 224%. $2.41 cardinal of this nonaccomplishment summation is driven by the non-cash alteration successful just worth of acquisition contingent consideration. The equilibrium chiefly represents operating disbursal maturation outpacing gross and related gross profit. This reflects existent disbursal outlays successful each areas of the Company to propel aboriginal growth, including the acquisition of respective caller subsidiaries and related costs.
Net currency utilized successful operating activities for the 3 months ended September 30, 2022 was astir $3.1 million, compared to astir $1.1 cardinal for the 3 months ended September 30, 2021.
For the 3 months ended September 30, 2022 Adjusted EBITDA loss, a non-GAAP measure, was $1.1 million, compared to $0.6 cardinal Adjusted EBITDA nonaccomplishment for the 3 months ended September 30, 2021.
As of September 30, 2022, the Company's currency presumption was astir $10.6 cardinal positive $0.24 cardinal of liquid firm enslaved investments, compared to $16.2 cardinal astatine June 30, 2022. This includes $2.0 cardinal currency escrow for contingent information of the S5D acquisition, payable upon S5D's accomplishment of gross maturation show targets (refundable to Glimpse if targets not achieved). The Company has nary convertible debt, preferred equity oregon worldly currency obligations.
Fiscal First Quarter 2023 Conference Call and Webcast:
Date: Monday, November 14, 2022
Time: 4:30 p.m. Eastern time
US Dial In: 1-877-545-0320
International Dial In: 1-973-528-0002
Conference ID: 234685
Webcast: https://www.webcaster4.com/Webcast/Page/2934/47012
Please dial successful astatine slightest 10 minutes earlier the commencement of the telephone to guarantee timely participation.
A playback of the webcast volition beryllium disposable done November 14, 2023. A replay of the teleconference volition beryllium disposable done Monday, November 28, 2022. To listen, telephone 1-877-481-4010 wrong the United States oregon 1-919-882-2331 erstwhile calling internationally and participate replay entree codification 47012. A webcast volition besides beryllium disposable connected the IR conception of The Glimpse Group website oregon by clicking the webcast nexus above.
Note astir Non-GAAP Financial Measures
A non-GAAP fiscal measurement is simply a numerical measurement of a company's performance, fiscal position, oregon currency flows that either excludes oregon includes amounts that are not usually excluded oregon included successful the astir straight comparable measurement calculated and presented successful accordance with accounting principles mostly accepted successful the United States of America, oregon GAAP. Non-GAAP measures are not successful accordance with, nor are they a substitute for, GAAP measures. Other companies whitethorn usage antithetic non-GAAP measures and presumption of results.
In summation to fiscal results presented successful accordance with GAAP, this property merchandise presents adjusted EBITDA, which is simply a non-GAAP measure. Adjusted EBITDA is determined by taking nett nonaccomplishment and adding interest, taxes, depreciation, amortization and stock-based compensation expenses. The institution believes that this non-GAAP measure, viewed successful summation to and not successful lieu of nett loss, provides utile accusation to investors by providing a much focused measurement of operating results. This metric is an integral portion of the Company's interior reporting to measure its operations and the show of elder management. A reconciliation of adjusted EBITDA to nett loss, the astir comparable GAAP measure, is disposable successful the accompanying fiscal tables below. The non-GAAP measurement presented herein whitethorn not beryllium comparable to likewise titled measures presented by different companies.
About The Glimpse Group, Inc.
The Glimpse Group (NASDAQ: VRAR, FSE: 9DR) is simply a diversified Virtual and Augmented Reality level company, comprised of aggregate VR and AR bundle & services companies, and designed with the circumstantial intent of cultivating companies successful the emerging VR/AR industry. Glimpse's unsocial concern exemplary simplifies challenges faced by VR/AR companies and creates a robust ecosystem, portion simultaneously providing investors an accidental to put straight into the emerging VR/AR manufacture via a diversified platform. For much accusation connected The Glimpse Group, delight sojourn www.theglimpsegroup.com
Safe Harbor Statement
This property merchandise does not represent an connection to merchantability oregon a solicitation of offers to bargain immoderate securities of immoderate entity. This property merchandise contains definite forward-looking statements based connected our existent expectations, forecasts and assumptions that impact risks and uncertainties. Forward-looking statements successful this merchandise are based connected accusation disposable to america arsenic of the day hereof. Our existent results whitethorn disagree materially from those stated oregon implied successful specified forward-looking statements, owed to risks and uncertainties associated with our business. Forward-looking statements see statements regarding our expectations, beliefs, intentions oregon strategies regarding the aboriginal and tin beryllium identified by forward-looking words specified arsenic "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," and "would" oregon akin words. All forecasts are provided by absorption successful this merchandise are based connected accusation disposable astatine this clip and absorption expects that interior projections and expectations whitethorn alteration implicit time. In addition, the forecasts are wholly connected management's champion estimation of our aboriginal fiscal show fixed our existent contracts, existent backlog of opportunities and conversations with caller and existing customers astir our products and services. We presume nary work to update the accusation included successful this property release, whether arsenic a effect of caller information, aboriginal events oregon otherwise.
The Glimpse Group, Inc., Monday, November 14, 2022, Press merchandise picture
Company Contact:
Maydan Rothblum
CFO & COO
The Glimpse Group, Inc.
(917) 292-2685
maydan@theglimpsegroup.com
Investor Relations:
Mark Schwalenberg, CFA
Director
MZ Group - North America
312-261-6430
Glimpse@mzgroup.us
www.mzgroup.us
THE GLIMPSE GROUP, INC.
CONSOLIDATED BALANCE SHEETS
As of | As of | |||||||
ASSETS | ||||||||
Cash and currency equivalents | $ | 10,644,751 | $ | 16,249,666 | ||||
Investments | 242,603 | 239,314 | ||||||
Accounts receivable | 1,228,400 | 1,332,922 | ||||||
Deferred costs/contract assets | 268,552 | 39,484 | ||||||
Prepaid expenses and different existent assets | 659,695 | 479,483 | ||||||
Total existent assets | 13,044,001 | 18,340,869 | ||||||
Equipment, net | 352,266 | 245,970 | ||||||
Note receivable | - | 250,000 | ||||||
Right-of-use assets | 1,066,772 | - | ||||||
Intangible assets, net | 7,809,518 | 4,063,485 | ||||||
Goodwill | 22,672,460 | 13,464,760 | ||||||
Other assets | 115,866 | 32,000 | ||||||
Restricted cash | 2,000,000 | 2,000,000 | ||||||
Total assets | $ | 47,060,883 | $ | 38,397,084 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Accounts payable | $ | 349,820 | $ | 340,139 | ||||
Accrued liabilities | 365,297 | 188,417 | ||||||
Accrued bonuses | 425,261 | 169,262 | ||||||
Deferred revenue/contract liabilities | 1,224,748 | 841,389 | ||||||
Asset acquisition payable | 734,037 | 734,037 | ||||||
Lease liabilities, existent portion | 441,687 | - | ||||||
Contingent information for acquisitions, existent portion | 4,080,498 | 1,966,171 | ||||||
Total existent liabilities | 7,621,348 | 4,239,415 | ||||||
Long word liabilities | ||||||||
Contingent information for acquisition, nett of existent portion | 11,400,300 | 5,340,800 | ||||||
Lease liabilities, nett of existent portion | 625,085 | - | ||||||
Total liabilities | 19,646,733 | 9,580,215 | ||||||
Commitments and contingencies | ||||||||
Stockholders' Equity | ||||||||
Preferred Stock, par worth $0.001 per share, 20 cardinal shares | - | - | ||||||
Common Stock, par worth $0.001 per share, 300 cardinal shares | 13,594 | 12,749 | ||||||
Additional paid-in capital | 60,864,978 | 56,885,815 | ||||||
Accumulated deficit | (33,464,422 | ) | (28,081,695 | ) | ||||
Total stockholders' equity | 27,414,150 | 28,816,869 | ||||||
Total liabilities and stockholders' equity | $ | 47,060,883 | $ | 38,397,084 | ||||
THE GLIMPSE GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ended | ||||||||
Sep 30, | ||||||||
2022 | 2021 | |||||||
Revenue | ||||||||
Software services | $ | 3,862,514 | $ | 804,718 | ||||
Software license/software arsenic a service | 88,510 | 217,815 | ||||||
Total Revenue | 3,951,024 | 1,022,533 | ||||||
Cost of goods sold | 1,214,597 | 145,387 | ||||||
Gross Profit | 2,736,427 | 877,146 | ||||||
Operating expenses: | ||||||||
Research and improvement expenses | 2,002,379 | 989,384 | ||||||
General and administrative expenses | 1,819,292 | 779,729 | ||||||
Sales and selling expenses | 1,744,239 | 504,687 | ||||||
Change successful just worth of acquisition contingent consideration | 2,603,398 | - | ||||||
Total operating expenses | 8,169,308 | 2,273,800 | ||||||
Loss from operations earlier different income (expense) | (5,432,881 | ) | (1,396,654 | ) | ||||
Other income (expense) | ||||||||
Interest income | 50,154 | 19,623 | ||||||
Loss connected conversion of convertible notes | - | (279,730 | ) | |||||
Total different income (expense), net | 50,154 | (260,107 | ) | |||||
Net Loss | $ | (5,382,727 | ) | $ | (1,656,761 | ) | ||
Basic and diluted nett nonaccomplishment per share | $ | (0.40 | ) | $ | (0.17 | ) | ||
Weighted-average shares utilized to compute basal and diluted nett nonaccomplishment per share | 13,317,188 | 9,967,821 | ||||||
THE GLIMPSE GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Three Months Ended September 30, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (5,382,727 | ) | $ | (1,656,761 | ) | ||
Adjustments to reconcile nett nonaccomplishment to nett currency utilized successful operating activities: | ||||||||
Amortization and depreciation | 477,016 | 27,718 | ||||||
Common banal and banal enactment based compensation for employees and committee of directors | 775,852 | 653,615 | ||||||
Acquisition contingent information just worth adjustment | 2,603,398 | - | ||||||
Issuance of communal banal to vendors arsenic compensation | - | 62,034 | ||||||
Loss connected conversion of convertible notes | - | 279,730 | ||||||
Changes successful operating assets and liabilities: | ||||||||
Accounts receivable | 357,563 | 26,365 | ||||||
Pre-offering costs | - | 470,136 | ||||||
Deferred costs/contract assets | 323,083 | (17,185 | ) | |||||
Prepaid expenses and different existent assets | (180,212 | ) | (381,856 | ) | ||||
Other assets | 6,135 | (80,000 | ) | |||||
Accounts payable | (525,673 | ) | (268,823 | ) | ||||
Accrued liabilities | (135,742 | ) | (31,770 | ) | ||||
Accrued bonuses | 255,999 | (151,969 | ) | |||||
Deferred revenue/contract liabilities | (1,653,711 | ) | 15,630 | |||||
Net currency utilized successful operating activities | (3,079,019 | ) | (1,053,136 | ) | ||||
Cash travel from investing activities: | ||||||||
Purchases of equipment | (83,765 | ) | (18,225 | ) | ||||
Acquisitions, nett of currency acquired | (2,478,756 | ) | - | |||||
Purchase of investments | (3,290 | ) | - | |||||
Net currency utilized successful investing activities | (2,565,811 | ) | (18,225 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from archetypal nationalist offering, net | - | 11,821,364 | ||||||
Proceeds from workout of banal options | 39,915 | 45,700 | ||||||
Net currency provided by financing activities | 39,915 | 11,867,064 | ||||||
Net alteration successful cash, currency equivalents and restricted cash | (5,604,915 | ) | 10,795,703 | |||||
Cash, currency equivalents and restricted cash, opening of year | 18,249,666 | 1,771,929 | ||||||
Cash, currency equivalents and restricted cash, extremity of year | $ | 12,644,751 | $ | 12,567,632 | ||||
Non-cash Investing and Financing activities: | ||||||||
Common banal issued for BLI acquisition | $ | 2,846,144 | $ | 750,000 | ||||
Issuance of communal banal for restitution of contingent liability, nett of enactment extinguishment | $ | 318,571 | $ | - | ||||
Extinguishment of enactment receivable for restitution of contingent liability | $ | 250,000 | $ | - | ||||
Issuance of communal banal for restitution of contingent liability | $ | - | $ | 750,000 | ||||
Contingent acquisition information liability | $ | 6,139,000 | $ | - | ||||
Lease liabilities arising from right-to-use assets | $ | 1,155,769 | $ | - | ||||
Conversion of convertible promissory notes into communal stock | $ | - | $ | 1,606,176 | ||||
Issuance of warrants successful transportation with archetypal nationalist offering | $ | - | $ | 522,360 | ||||
The pursuing array presents a reconciliation of nett nonaccomplishment to Adjusted EBITDA for the 3 months ended September 30, 2022 and 2021 (in $MM):
For the Three Months Ended | ||||||||
September 30, | ||||||||
2022 | 2021 | |||||||
(in millions) | ||||||||
Net loss | $ | (5.38 | ) | $ | (1.66 | ) | ||
Depreciation and amortization | 0.48 | 0.03 | ||||||
EBITDA (loss) | (4.90 | ) | (1.63 | ) | ||||
Stock based compensation expenses | 0.97 | 0.72 | ||||||
Stock based financing related expenses | - | 0.28 | ||||||
Acquisition expenses | 0.27 | - | ||||||
Non currency alteration successful just worth of acquisition contingent consideration | 2.61 | - | ||||||
Adjusted EBITDA (loss) | $ | (1.05 | ) | $ | (0.63 | ) | ||
SOURCE: The Glimpse Group, Inc.
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