Glimpse Group, Inc.
For the period ended Mar 31, 2026. Filed May 14, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 14, 2026
BTLN$3.50+6.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-12-31; filed 2026-02-17.
0001493152-26-006951
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-14.
0001493152-26-023049
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 72 previous paragraphs and 88 current paragraphs.
33 unchanged; 31 reworded; 23 added; 7 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
Significant Transactions and Recent Developments
Current report
Nasdaq Ticker Symbol Change
Current report
Effective February 19, 2026, we changed our ticker symbol on The Nasdaq Stock Market LLC (“Nasdaq”) from “VRAR” to “GGRP.” The change was implemented to better align our ticker with our going forward strategy. The change did not alter our business model or other terms of our common stock.
Current report
Nasdaq Notice
Current report
On March 13, 2026, we received a notification letter from the Listing Qualifications Department of Nasdaq notifying us that, because the closing bid price for our common stock was below $1.00 for the prior 30 consecutive business days, we no longer met the minimum bid price requirement for continued listing on the Nasdaq Capital Market under Nasdaq Marketplace Rule 5550(a)(2), requiring a minimum bid price of at least $1.00 per share (the “Minimum Bid Price Requirement”).
Current report
In accordance with Nasdaq rules, we have a period of 180 calendar days from March 13, 2026, or until September 9, 2026, to regain compliance with the Minimum Bid Price Requirement. If at any time before September 9, 2026, the bid price of our common stock closes at or above $1.00 per share for a minimum of 10 consecutive business days, Nasdaq will provide written notification that we have achieved compliance with the Minimum Bid Price Requirement. In the event we do not regain compliance with the Minimum Bid Price Requirement by September 9, 2026, we may be eligible for additional time. To qualify for additional time, we would be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the Minimum Bid Price Requirement, and would need to provide written notice of our intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. If we meet these requirements, Nasdaq will inform us that we have been granted an additional 180 calendar days to regain compliance. However, if it appears to the staff of Nasdaq (the “Staff”) that we will not be able to cure the deficiency, or if we are otherwise not eligible, the Staff would notify us that our common stock will be subject to delisting.
Current report
Our receipt of the notification letter has no immediate effect on the listing of our common stock on the Nasdaq Capital Market, which continues, and will continue, to trade uninterrupted on the Nasdaq Capital Market under the ticker “GGRP”. In addition, the notification does not affect our business, operations or reporting requirements with the SEC. In order to regain compliance with the Minimum Bid Price Requirement, we may consider various potential measures to resolve the deficiency. Our board of directors will continue to explore all options to maximize shareholder value.
Current report
Customer Termination
Current report
In March 2026, Glimpse Lenses’ largest customer terminated their revenue agreement with Glimpse (which Glimpse had retained as part of the QReal divestiture in October 2024). Glimpse will record no further revenue from this customer. Revenue recorded by Glimpse related to this customer was $0.23 million and $0.99 million, respectively, for the three and nine months ended March 31, 2026 and $0.46 million and $1.61 million, respectively, for the three and nine months ended March 31, 2025.
Current report
Total revenue for the three months ended March 31, 2026 was approximately $0.66 million compared to approximately $1.42 million for the three months ended March 31, 2025, a decrease of approximately 54%. The decrease primarily represents a revenue reversal from previous quarters this fiscal year arising from a change in estimated funding of a U.S. Department of War (“DOW”) contract due to U.S. Government FY ‘26 budget delays, and wind down of a long-standing revenue contract with a social media customer.
Current report
Operating expenses for the three months ended March 31, 2026 were approximately $13.29 million compared to approximately $2.60 million for the three months ended March 31, 2025, an approximately four fold increase. The increase primarily reflects the non-cash impairment of Brightline (“BLI”) goodwill. Operating expenses for the nine months ended March 31, 2026 were approximately $17.69 million compared to approximately $7.58 million for the nine months ended March 31, 2025, an increase of approximately 133%. The increase also primarily reflects the non-cash impairment of BLI goodwill.
Current report
General and administrative expenses for the three months ended March 31, 2026 were approximately $0.63 million compared to approximately $1.16 million for the three months ended March 31, 2025, a decrease of approximately 46%. The decrease primarily reflects a reduction in executive performance bonuses and decrease in investor relation efforts. General and administrative expenses for the nine months ended March 31, 2026 were approximately $2.45 million compared to approximately $2.95 million for the nine months ended March 31, 2025, a decrease of approximately 17%. The decrease primarily reflects a reduction in executive performance bonuses, reduction in rent from reduced footprints, reduction in professional fees due to more efficient sourcing and reduced depreciation due to run off of useful lives.
Current report
Goodwill Impairment
Current report
Goodwill impairment expense for the three and nine months ended March 31, 2026 primarily represents the full impairment of goodwill attributable to BLI. The BLI product customer is principally the DOW. U.S. Government funding for new DOW projects that BLI was anticipating is on hold as a result of: 1) the U.S. Government shutdown in January 2026, 2) the Continuing Budget Resolution in February 2026 which produced no new funding, and 3) no formal passing of the U.S. Government fiscal year 2026 budget.
Current report
The budget delay above has resulted in BLI no longer being able to invoice its current primary DOW customer for work currently being done, material uncertainty regarding whether the current work will be funded in an ultimate U.S. Government budget passage and limited visibility regarding its ability to secure other future revenue contracts.
Current report
While revenues may be generated in the future, if the U.S. Government fiscal year 2026 budget or subsequent years budgets being approved or when the project is included in an approved budget in subsequent years, the current lack of sight into future revenue contracts and the Company’s inability to generate material revenues in the current fiscal year has removed the primary driver of the quantitative discounted cash flow modelling that is utilized in order to determine the enterprise value of BLI. This also makes the qualitative assessment of BLI’s technology challenging to assess. In accordance with our accounting policies, it has been determined that BLI enterprise value is negligible from a financial reporting perspective as of March 31, 2026.
Current report
This results in a total impairment of goodwill attributable to BLI of approximately $10.56 million.
Current report
Net loss for the three months ended March 31, 2026 was approximately $12.68 million compared to a loss of approximately $1.50 million for the comparable 2025 period. This was primarily driven by the 2026 non-cash goodwill impairment. Net loss for the nine months ended March 31, 2026 was approximately $14.94 million compared to a loss of approximately $2.49 million for the nine months ended March 31, 2025. This was primarily driven by the 2026 non-cash goodwill impairment and 2026 reduced revenue and related gross profit.
Current report
Going Concern
Current report
The Company evaluated whether there are conditions or events that raise doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The Company’s evaluation entails analyzing expectations for the Company’s cash needs and comparing those needs to the current cash and cash equivalent balances. This evaluation initially does not take into consideration the potential mitigating effect of management’s plans that have not been fully implemented as of the date the financial statements are issued.
Current report
The Company has incurred recurring losses since its inception, including a net loss of approximately $14.9 million for the nine months ended March 31, 2026. In addition, as of March 31, 2026, the Company had an accumulated deficit of $80.5 million. Furthermore, the circumstances around the BLI goodwill impairment and Glimpse Lenses’ customer termination have posed additional challenges to the Company. The Company’s cash and cash equivalents as of the date of this filing may not be sufficient to fund operations and other commitments for at least the next twelve months from the date of issuance of these consolidated financial statements. Accordingly, the Company has concluded that substantial doubt exists about the Company’s ability to continue as a going concern for a period of at least 12 months from the date of issuance of these consolidated financial statements.
Current report
In order to restore the going concern the Company may take actions which could include, but are not limited to: subsidiary spinoffs (via initial public offering or other manner), merger with another entity, and equity or debt financings. There is no assurance that these actions will be taken or be successful if pursued.
Current report
The condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described.
Removed paragraphs (7)
Previous report
Significant Transactions
Previous report
As previously reported, on July 11, 2025, we entered into an At-the-Market (“ATM”) Sales Agreement (the “Sales Agreement”) with WestPark Capital, Inc., as sales agent (the “Agent”), pursuant to which we could offer and sell, from time to time through the Agent, up to $3,081,340 of our common stock (the “Shares”), by any method permitted by law and deemed to be an “at the market offering” as defined in Rule 415(a)(4) under the Securities Act.
Previous report
Update on Potential Subsidiary Spin Off
Previous report
As previously reported, in September 2025, our board of directors approved the exploration of a potential spin off of our BLI subsidiary as a separate public company to potentially unlock shareholder value and provide growth resources to BLI. We filed a confidential S1 registration with the Securities and Exchange Commission (“SEC”). In parallel, we are also exploring other divestiture alternatives for BLI. The success of the potential BLI initial public offering or other divestiture is uncertain and may not occur.
Previous report
Operating expenses for the three months ended December 31, 2025 were approximately $2.05 million compared to approximately $2.02 million for the three months ended December 31, 2024, an increase of 1%. The increase primarily reflects headcount utilization changes, offset by decreases in revenue based incentive compensation and intangible asset amortization. Operating expenses for the six months ended December 31, 2025 were approximately $4.40 million compared to approximately $4.97 million for the six months ended December 31, 2024, a decrease of 11%. The decrease primarily reflects the divestiture of the QReal business, reduction in non-core businesses, decrease in revenue based incentive compensation and reduction in intangible asset amortization, offset by headcount utilization changes.
Previous report
General and administrative expenses for the three months ended December 31, 2025 were approximately $0.84 million compared to approximately $0.85 million for the three months ended December 31, 2024, flat period over period. General and administrative expenses for the six months ended December 31, 2025 were approximately $1.82 million compared to approximately $1.78 million for the six months ended December 31, 2024, an increase of 2%. The six month period increase reflects increased investor relation efforts.
Previous report
Net loss for the three months ended December 31, 2025 was approximately $1.23 million compared to net income of approximately $0.02 million for the three months ended December 31, 2024. This is primarily driven by reduced revenue and related gross profit. Net loss for the six months ended December 31, 2025 was approximately $2.26 million compared to a net loss of approximately $0.98 million for the six months ended December 31, 2024. This is primarily driven by reduced revenue and related gross profit, partially offset by expense reductions and gain on sale of business.
Reworded paragraphs (31)
Previous wording
We are an Immersive technology company, providing enterprise focused Spatial Computing, Virtual Reality (VR), and Augmented Reality (AR) software and services (Immersive technologies). Glimpse’s operating entities are located in the United States. We believe that we offer significant exposure to the rapidly growing and potentially transformative Immersive technology markets, while mitigating downside risk via our diversified model and ecosystem.
Current wording
We are an Immersive technology company, providing enterprise focused Spatial Computing, Virtual Reality (VR), and Augmented Reality (AR) software and services (Immersive technologies). Glimpse’s operating entities are located in the United States. We believe that we offer exposure to the growing and potentially transformative Immersive technology markets, while mitigating downside risk via our diversified model and ecosystem.
Previous wording
The Immersive technology industry is an early-stage technology industry with nascent markets. We believe that this industry has significant growth potential across verticals, may be transformative, and that our diversified ecosystem creates important competitive advantages. We currently target a wide array of industry verticals, including but not limited to: Government & Defense, Corporate Training, Education, Healthcare, Branding/Marketing/Advertising, Retail, Media & Entertainment, Corporate Events and Social VR support groups and therapy. We focus primarily on the business-to-business (B2B) segment and we are hardware agnostic.
Current wording
The Immersive technology industry is an early-stage technology industry with nascent markets. We believe that this industry has growth potential across verticals, and that our diversified ecosystem creates competitive advantages. We currently target several industry verticals, including but not limited to: Government & Defense, Corporate Training, Education, Healthcare, Corporate Events and Social VR support groups and therapy. We focus primarily on the business-to-business (B2B) segment and we are hardware agnostic.
Previous wording
At the time of this filing, we have approximately 40 full time employees, primarily software developers, engineers and 3D artists.
Current wording
At the time of this filing, we have approximately 35 full time employees, primarily software developers, engineers and 3D artists.
Previous wording
Business Organization Chart (as of December 31, 2025):
Current wording
Business Organization Chart (as of as of March 31, 2026):
Previous wording
On November 21, 2025, the Sales Agreement was amended to increase the maximum amount we may offer and sell, from time to time through the Agent, from $3,081,340 to $3,502,910.
Current wording
On January 2, 2026, our ATM Sales Agreement was further amended to increase the maximum amount we may offer and sell, from time to time through the Agent, from $3,502,910 to $9,478,200.
Previous wording
Financial Highlights for the three and six months ended December 31, 2025 compared to the three and six months ended December 31, 2024.
Current wording
Financial Highlights for the three and nine months ended March 31, 2026 compared to the three and nine months ended March 31, 2025.
Previous wording
The following table sets forth our results of operations for the three months and six months ended December 31, 2025 and 2024:
Current wording
The following table sets forth our results of operations for the three months and nine months ended March 31, 2026 and 2025:
Previous wording
Total revenue for the three months ended December 31, 2025 was approximately $1.30 million compared to approximately $3.17 million for the three months ended December 31, 2024, a decrease of 59%. Total revenue for the six months ended December 31, 2025 was approximately $2.70 million compared to approximately $5.61 million for the six months ended December 31, 2024, a decrease of 52%. The decrease for both periods primarily reflects timing of Department of War (“DoW”) contracts and U.S. Government budget delays, the run off of certain legacy customers reflecting our Strategic Shift and a decline in some existing customer accounts.
Current wording
Total revenue for the nine months ended March 31, 2026 was approximately $3.36 million compared to approximately $7.03 million for the nine months ended March 31, 2025, a decrease of approximately 52%. The decrease primarily reflects the timing of DOW contracts and U.S. Government FY ‘26 budget delays, wind down of a long-standing revenue contract with a social media customer, the runoff of certain legacy customers reflecting our Strategic Shift and a decline in some existing customer accounts.
Previous wording
For the three months ended December 31, 2025, Software Services revenue was approximately $1.18 million compared to approximately $3.13 million for the three months ended December 31, 2024, a decrease of 62%. For the six months ended December 31, 2025, Software Services revenue was approximately $2.42 million compared to approximately $5.36 million for the six months ended December 31, 2024, a decrease of 55%. The decrease for both periods primarily reflects timing of DoW contracts and U.S. Government budget delays, the run off of certain legacy customers reflecting our Strategic Shift and a decline in some existing customer accounts.
Current wording
For the three months ended March 31, 2026, Software Services revenue was approximately $0.44 million compared to approximately $1.28 million for the three months ended March 31, 2025, a decrease of approximately 66%. The decrease primarily reflects the aforementioned DOW contract revenue reversal and wind down of long-standing customer revenue contract. For the nine months ended March 31, 2026, Software Services revenue was approximately $2.87 million compared to approximately $6.64 million for the nine months ended March 31, 2025, a decrease of approximately 57%. The decrease primarily reflects the aforementioned DOW contract timing and U.S. Government budget delays, wind down of a long-standing revenue contract, the runoff of certain legacy customers reflecting our Strategic Shift and a decline in some existing customer accounts.
Previous wording
For the three months ended December 31, 2025, Software License revenue was approximately $0.10 million compared to approximately $0.04 million for the three months ended December 31, 2024, an increase of 150%, reflecting license timing. For the six months ended December 31, 2025, Software License revenue was approximately $0.25 million compared to approximately $0.25 million for the six months ended December 31, 2024, flat period over period.
Current wording
For the three months ended March 31, 2026, Software License revenue was approximately $0.21 million compared to approximately $0.14 million for the three months ended March 31, 2025, an increase of approximately 50%, reflecting the timing of a certain license renewal. For the nine months ended March 31, 2026, Software License revenue was approximately $0.46 million compared to approximately $0.39 million for the nine months ended March 31, 2025, an increase of approximately 18%, reflecting an increase in certain license contracts.
Previous wording
Royalty income was approximately $0.02 million and approximately $0.03 million, respectively, for the three and six months ended December 31, 2025, and zero for the prior year period, reflecting a new revenue stream driven by prior subsidiary company divestitures.
Current wording
Royalty income was approximately $0.01 million and approximately $0.03 million, respectively, for the three and nine months ended March 31, 2026, and zero for the prior year periods, reflecting a new revenue stream driven by prior subsidiary company divestitures.
Previous wording
Four customers accounted for approximately 81% (29%, 21%, 21% and 10%, respectively) of the Company’s total gross revenues during the three months ended December 31, 2025. One of the same customers and two other customers accounted for approximately 80% (56%, 14% and 10%, respectively) of the Company’s total gross revenues during the three months ended December 31, 2024. Three customers accounted for approximately 76% (28%, 28% and 19%, respectively) of the Company’s total gross revenues during the six months ended December 31, 2025. One of the same customers and another customer accounted for approximately 65% (44% and 21%, respectively) of the Company’s total gross revenues during the six months ended December 31, 2024.
Current wording
Five customers accounted for approximately 79% (22%, 19%, 17%, 12% and 10%, respectively) of the Company’s total gross revenues during the three months ended March 31, 2026. Two of the same customers accounted for approximately 51% (30% and 21%, respectively) of the Company’s total gross revenues during the nine months ended March 31, 2026.
Previous wording
Gross profit margin was approximately 61% for the three months ended December 31, 2025, compared to approximately 64% for the three months ended December 31, 2024. Gross profit margin was approximately 67% for the six months ended December 31, 2025 compared to approximately 70% for the six months ended December 31, 2024. The decrease for both periods was primarily driven by the change in cost structure of DoW projects.
Current wording
Gross profit margin was approximately 89% for the three months ended March 31, 2026 compared to approximately 72% for the three months ended March 31, 2025. The increase primarily reflects the effect of the aforementioned DOW contract revenue reversal. This effect is a one-time occurrence. Gross profit margin was approximately 71% for both the nine months ended March 31, 2026 and the nine months ended March 31, 2025. This reflects a decrease in Software Services gross profit margin driven by a change in cost structure of DOW projects offset by an increase Software License gross profit margin reflecting mature licenses requiring less support costs.
Previous wording
Research and development expenses for the three months ended December 31, 2025 were approximately $0.90 million compared to approximately $0.66 million for the three months ended December 31, 2024, an increase of 36%. The increase primarily reflects a lesser proportion of headcount expense being allocated to revenue projects cost of goods in the current period. Research and development expenses for the six months ended December 31, 2025 were approximately $1.87 million compared to $1.78 million for the six months ended December 31, 2024, an increase of 5%. The increase reflects a lesser proportion of headcount expense being allocated to revenue projects cost of goods in the current period, offset by decreased expense driven by the QReal divestiture.
Current wording
Research and development expenses for the three months ended March 31, 2026 were approximately $1.53 million compared to approximately $0.83 million for the three months ended March 31, 2025, an increase of approximately 84%. The increase primarily reflects a lesser proportion of headcount expense being allocated to revenue projects cost of goods in the current period due to revenue decrease, including DOW revenue reversal. Research and development expenses for the nine months ended March 31, 2026 were approximately $3.40 million compared to approximately $2.61 million for the nine months ended March 31, 2025, an increase of approximately 30%. The increase reflects a lesser proportion of headcount expense being allocated to revenue projects cost of goods in the current period due to revenue decrease.
Previous wording
Sales and marketing expenses for the three months ended December 31, 2025 were approximately $0.30 million compared to approximately $0.38 million for the three months ended December 31, 2024, a decrease of 20%. The decrease reflects a reduction in revenue driven incentive compensation. Sales and marketing expenses for the six months ended December 31, 2025 were approximately $0.63 million compared to approximately $1.12 million for the six months ended December 31, 2024, a decrease of 44%. The decrease represents the divestiture of the QReal business, reduction in non-core businesses and decrease in revenue driven incentive compensation.
Current wording
Sales and marketing expenses for the three months ended March 31, 2026 were approximately $0.27 million compared to approximately $0.48 million for the three months ended March 31, 2025, a decrease of approximately 44%. The decrease primarily reflects a reduction in revenue driven incentive compensation. Sales and marketing expenses for the nine months ended March 31, 2026 were approximately $0.90 million compared to approximately $1.61 million for the nine months ended March 31, 2025, a decrease of approximately 44%. The decrease primarily reflects a reduction in revenue driven incentive compensation, the divestiture of the QReal business and reduction in non-core businesses.
Previous wording
Amortization of acquisition intangible assets expense for the three months ended December 31, 2025 was approximately $0.01 million compared to approximately $0.10 million for the three months ended December, 2024, a decrease of 90%. Amortization of acquisition intangible assets expense for the six months ended December 31, 2025 was approximately $0.06 million compared to approximately $0.23 million for the six months ended December 31, 2024, a decrease of 74%. The decrease for both periods reflects the expiration of the intangible assets useful life in 2025.
Current wording
Amortization of acquisition intangible assets expense for the three months ended March 31, 2026 was zero compared to approximately $0.10 million for the three months ended March 31, 2025, and amortization of acquisition intangible assets expense for the nine months ended March 31, 2026 was approximately $0.06 million compared to approximately $0.33 million for the nine months ended March 31, 2025. These decreases represent the expiration of the intangible assets useful lives.
Previous wording
Change in fair value of acquisition contingent consideration for the three months ended December 31, 2025 was zero compared to approximately $0.03 million for the three months ended December 31, 2024. Change in fair value of acquisition contingent consideration for the six months ended December 31, 2025 was approximately $0.02 million compared to approximately $0.06 million for the six months ended December 31, 2024. The decrease for both periods reflects the final consideration payment related to the BLI acquisition in October 2025.
Current wording
Change in fair value of acquisition contingent consideration for the three months ended March 31, 2026 was zero compared to approximately $0.03 million for the three months ended March 31, 2025. Change in fair value of acquisition contingent consideration for the nine months ended March 31, 2026 was approximately $0.02 million compared to an expense of approximately $0.08 million for the nine months ended March 31, 2025. The decrease for all periods reflects the final consideration payment related to the BLI acquisition in October 2025.
Previous wording
Other income for the three months ended December 31, 2025 was approximately $0.03 million compared to approximately $0.01 million for the three months ended December 31, 2025. The increase reflects increased investable cash balances and associated interest income as a result of the equity raise in December 2024. Other income for the six months ended December 31, 2025 was approximately $0.34 million compared to approximately $0.04 million for the six months ended December 31, 2025. The increase reflects the 2025 gain on sale of the Pose With the Pros business and also reflects increased investable cash balances and associated interest income as a result of the equity raise in December 2024.
Current wording
Other income for the three months ended March 31, 2026 was approximately $0.02 million compared to approximately $0.08 million for the three months ended March 31, 2025. The reduction represents the decrease in interest income due to the lower investable cash balances in 2026. Other income for the nine months ended March 31, 2026 was approximately $0.36 million compared to approximately $0.12 million for the nine months ended March 31, 2025. The increase represents the gain on sale of the Pose With the Pros business in fiscal year 2026.
Previous wording
The following discussion and analysis includes both financial measures in accordance with Generally Accepted Accounting Principles (“GAAP”), as well as non-GAAP financial measures. Generally, 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 included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives to, net income (loss), operating income (loss), and cash flow from operating activities, liquidity or any other financial measures. They may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP. Our management uses and relies on EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. We believe that both management and stockholders benefit from referring to the aforementioned non-GAAP financial measures in planning, forecasting and analyzing future periods.
Current wording
The following discussion and analysis includes both financial measures in accordance with Generally Accepted Accounting Principles (“GAAP”), as well as non-GAAP financial measures. Generally, 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 included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives to, net income (loss), operating income (loss), and cash flow from operating activities, liquidity or any other financial measures. They may not be indicative of our historical operating results nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP. Our management uses and relies on EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. We believe that both management and stockholders benefit from referring to the aforementioned non-GAAP financial measures in planning, forecasting and analyzing future periods.
Previous wording
The Company defines Adjusted EBITDA as income (or loss) from continuing operations before the items in the table below. Adjusted EBITDA is an important measure of our operating performance because it allows management, investors and analysts to evaluate and assess our core operating results from period-to-period after removing the impact of items of a non-operational nature that affect comparability.
Current wording
We define Adjusted EBITDA as income (or loss) from continuing operations before the items in the table below. Adjusted EBITDA is an important measure of our operating performance because it allows management, investors and analysts to evaluate and assess our core operating results from period-to-period after removing the impact of items of a non-operational nature that affect comparability.
Previous wording
We have included a reconciliation of our financial measures calculated in accordance with GAAP to the most comparable non-GAAP financial measures. We believe that providing the non-GAAP financial measures, together with the reconciliation to GAAP, helps investors make comparisons between the Company and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measures and the corresponding GAAP measures provided by each company under applicable SEC rules.
Current wording
We have included a reconciliation of our financial measures calculated in accordance with GAAP to the most comparable non-GAAP financial measures. We believe that providing the non-GAAP financial measures, together with the reconciliation to GAAP, helps investors make comparisons between us and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measures and the corresponding GAAP measures provided by each company under applicable SEC rules.
Previous wording
The following table presents a reconciliation of Net income (loss) to Adjusted EBITDA income (loss) for the three and six months ended December 31, 2025 and 2024:
Current wording
The following table presents a reconciliation of net loss to Adjusted EBITDA loss for the three and nine months ended March 31, 2026 and 2025:
Previous wording
Adjusted EBITDA loss was $0.89 million for the three months ended December 31, 2025 compared to $0.28 million income for the three months ended December 31, 2024. Adjusted EBITDA loss was $1.83 million for the six months ended December 31, 2025 compared to a $0.17 million loss for the six months ended December 31, 2024. The reduction in both periods is primarily driven by reduced revenue and related gross profit in the 2025 periods.
Current wording
Adjusted EBITDA loss was approximately $1.67 million for the three months ended March 31, 2026 compared to an approximately $1.01 million loss for the three months ended March 31, 2025. Adjusted EBITDA loss was approximately $3.50 million for the nine months ended March 31, 2026 compared to an approximately $1.22 million loss for the nine months ended March 31, 2025. For both periods this was primarily driven by reduced revenue and related gross profit.
Previous wording
Net cash used in operating activities was approximately $2.03 million for the six months ended December 31, 2025, compared to approximately $0.25 million during the six months ended December 31, 2024. This was primarily driven by reduced revenue and related gross profit in the 2025 period.
Current wording
Net cash used in operating activities was approximately $3.47 million for the nine months ended March 31, 2026, compared to net cash used in operating activities of approximately $0.12 million during the nine months ended March 31, 2025. This was primarily driven by reduced revenue and related gross profit.
Previous wording
Net cash used in investing activities for the six months ended December 31, 2025 was approximately $1.52 million compared to approximately $0.03 million during the comparable 2024 period. The 2025 period primarily represents the final $1.50 million contingent consideration payment in October 2025 related to the BLI acquisition.
Current wording
Net cash used in investing activities for the nine months ended March 31, 2026 was approximately $1.32 million compared to net cash used in investing activities of approximately $1.54 during the comparable 2025 period. Both periods primarily represent contingent consideration payments related to the BLI acquisition and the 2026 period also reflects net cash received from sale of business. The $1.50 million contingent consideration payment in October 2025 was the final payment related to the BLI acquisition.
Previous wording
Net cash provided by financing activities during the six months ended December 31, 2025 was approximately $0.06 million compared to approximately $6.87 million during the six months ended December 31, 2024. The 2024 amount represents the proceeds of securities purchase agreements entered into with institutional investors.
Current wording
Net cash provided by financing activities during the nine months ended March 31, 2026 was approximately $0.11 million compared to net cash provided by investing activities of approximately $6.88 million during the nine months ended March 31, 2025. The 2026 amount represents the repayment of notes receivable related to the QReal divestiture and the 2025 amount represents the proceeds of securities purchase agreements entered into with institutional investors.
Previous wording
As of December 31, 2025, the Company had cash and cash equivalents of $3.34 million, plus $0.56 million of accounts receivable.
Current wording
As of March 31, 2026, we had cash and cash equivalents of $2.15 million, plus $0.66 million of accounts receivable.
Previous wording
As of December 31, 2025, the Company had no outstanding debt obligations.
Current wording
As of March 31, 2026, we had no outstanding debt obligations.
Previous wording
As of December 31, 2025, the Company had no issued and outstanding preferred stock.
Current wording
As of March 31, 2026, we had no issued and outstanding preferred stock.
Previous wording
As of December 31, 2025, the Company had no outstanding contingent obligation.
Current wording
As of March 31, 2026, we had no outstanding contingent obligations.
Previous wording
As of the date of this filing, the ATM facility has not been utilized.
Current wording
As of the date of the filing of this Quarterly Report on Form 10-Q, the ATM facility has not been utilized.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Three customers accounted for approximately 52% (32%, 10% and 10%, respectively) of the Company’s total gross revenues during the three months ended March 31, 2025. One of the same customers and another customer accounted for approximately 58% (35% and 23%, respectively) of the Company’s total gross revenues during the nine months ended March 31, 2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Subsequent to the end of the period, on January 2, 2026, the Sales Agreement was further amended to increase the maximum amount we may offer and sell, from time to time through the Agent, from $3,502,910 to $9,478,200.