Glimpse Group, Inc. Q4 FY2024 earnings call

• Strategic transition to focus on Spatial Core, led by Brightline Interactive. Examples of Spatial Core traction include a $4-plus million 12-month contract with a DoD entity, CRADA with US Army, extended partnership with a Fortune 500 integrator, partnerships with Cesium and NVIDIA at a symposium, and ongoing work on additional multimillion dollar contracts. Other entities had recent revenue-generating activities. Expect overall revenues to be higher in coming months/quarters, expect to be cash flow positive and increase cash balance without capital raise. Received Nasdaq notice for not meeting minimum bid price requirement, with until March 2025 to cure, and exploring strategic options to maximize shareholder value.

Fiscal year '24 revenue was approximately $8.8 million, a 35% decrease compared to fiscal year '23 revenue of approximately $13.5 million. Revenue for Q4 fiscal year '24 was approximately $1.7 million, a 41% decrease compared to Q4 fiscal '23 revenue of approximately $2.9 million. Spatial Core is the strategic focus and growth engine. Other entities like Glimpse Learning, Foretell Reality, QReal, and Sector 5 Digital also generated meaningful enterprise revenues. For example, Glimpse Learning had a mid-six figure contract, Foretell Reality a six-figure partnership, QReal saw increase in revenues with Snap, and Sector 5 Digital had a six-figure engagement.

• Expect Q1 fiscal year '25 revenue to be significantly higher than Q4 fiscal year '24. - Expect Q2 and Q3 fiscal year '25 revenues to each exceed $3 million per quarter. - Expect to be cash flow positive and increase cash balance between now and year-end 2024 and beyond without need for capital raise.

• On September 3, 2024, received Nasdaq letter stating it no longer met minimum bid price requirement for continued listing of $1. Have until March 2025 to cure deficiency, with potential 180-day extension to September 2025. - Board of Directors exploring strategic options to maximize shareholder value.

Q: Regarding pursuing DoD opportunities, are you working with multiple partners and do agencies have preferences for partners?

A: We're working with multiple partners. Many times it goes with their preferences, usually partners they've had history working with, but sometimes we come with the partner or they introduce us to the partner.

Q: On OpEx, is the run rate of cash operating expenses expected to be similar or lower moving forward?

A: Our cash expense operating base is around $3 million per quarter, with variable expenses that we have good control over, and assuming growth, $3 million per quarter is a good assumption.

Q: Details on CRADA announcement and revenue-generating opportunity?

A: CRADA itself has no financial elements, but successful execution could lead to multimillion dollar opportunities. It also serves as a sign of positioning and opens up other opportunities.

Q: Relationship with NVIDIA, Microsoft, AT&T; is it exclusive?

A: Relationship is not exclusive, but the uniqueness of what we're doing and partnerships create a moat, and more success leads to more future success.