The Glimpse Group, Inc. reported its financial results for the three months ended September 30, 2024, revealing a total revenue of approximately $2.44 million, a decline of 21% from $3.10 million in the same period of 2023. This decrease was primarily driven by a 26% drop in Software Services revenue, which fell to approximately $2.23 million from $3.01 million. However, revenue from Software Licenses increased to approximately $0.21 million, up from $0.09 million, attributed to the addition of a significant customer.

Total operating expenses surged by 42% to approximately $2.96 million, compared to $2.09 million in the prior year. This increase was reflected in various expense categories, including research and development, general and administrative, and sales and marketing, which saw reductions in spending but still contributed to higher overall costs. The company reported a net loss of approximately $1.02 million for the quarter, a significant increase from a net loss of $0.12 million in the same period last year.

The company's 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. The net cash used in operating activities improved to $0.42 million from $1.68 million, indicating better cash management despite the overall loss. The accumulated deficit as of September 30, 2024, stood at $64.05 million.

Strategically, Glimpse Group divested its subsidiary PulpoAR, LLC, due to poor revenue performance and misalignment with its core business. The divestiture resulted in a write-off of net assets totaling $0.89 million. Additionally, the company announced the divestiture of QReal, LLC, effective October 1, 2024, in a management buyout, retaining revenue from QReal’s largest customer until $1.35 million net cash is collected.

The company also faced challenges with Nasdaq compliance, receiving notification of non-compliance with the minimum bid price requirement, which necessitates closing at or above $1.00 per share for a minimum of 10 consecutive business days to regain compliance.

As of September 30, 2024, Glimpse Group had approximately $5.56 million in unfulfilled performance obligations, a significant increase from $1.07 million a year earlier, indicating potential future revenue. The company continues to explore cost reductions and financing options to address its liquidity concerns and ensure operational sustainability over the next twelve months.