The Glimpse Group, Inc. (VRAR) 10-Q 14 Nov 22 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Sep. 30, 2022	Nov. 10, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--06-30
Entity File Number	001-40556
Entity Registrant Name	THE GLIMPSE GROUP, INC.
Entity Central Index Key	0001854445
Entity Tax Identification Number	81-2958271
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	15 West 38th St., 9th Fl
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10018
City Area Code	(917)
Local Phone Number	292-2685
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	VRAR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,595,734

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2022	Jun. 30, 2022
ASSETS
Cash and cash 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 other current assets	659,695	479,483
Total current 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 purchase payable	734,037	734,037
Lease liabilities, current portion	441,687
Contingent consideration for acquisitions, current portion	4,080,498	1,966,171
Total current liabilities	7,621,348	4,239,415
Long term liabilities
Contingent consideration for acquisition, net of current portion	11,400,300	5,340,800
Lease liabilities, net of current portion	625,085
Total liabilities	19,646,733	9,580,215
Commitments and contingencies
Stockholders’ Equity
Preferred Stock, par value $0.001 per share, 20 million shares authorized; 0 shares issued and outstanding
Common Stock, par value $0.001 per share, 300 million shares authorized; 13,593,734 and 12,747,624 issued and outstanding	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

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Jun. 30, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	13,593,734	12,747,624
Common stock, shares outstanding	13,593,734	12,747,624

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Revenue
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 development expenses	2,002,379	989,384
General and administrative expenses	1,819,292	779,729
Sales and marketing expenses	1,744,239	504,687
Change in fair value of acquisition contingent consideration	2,603,398
Total operating expenses	8,169,308	2,273,800
Loss from operations before other income (expense)	(5,432,881)	(1,396,654)
Other income (expense)
Interest income	50,154	19,623
Loss on conversion of convertible notes		(279,730)
Total other income (expense), net	50,154	(260,107)
Net Loss	$ (5,382,727)	$ (1,656,761)
Basic and diluted net loss per share	$ (0.40)	$ (0.17)
Weighted-average shares used to compute basic and diluted net loss per share	13,317,188	9,967,821
Software Services [Member]
Revenue
Total Revenue	$ 3,862,514	$ 804,718
Software License/Software as a Service [Member]
Revenue
Total Revenue	$ 88,510	$ 217,815

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Jun. 30, 2021	$ 7,580	$ 20,936,050	$ (22,115,408)	$ (1,171,778)
Beginning balance, shares at Jun. 30, 2021	7,579,285
Common stock issued for acquisition	$ 77	749,923		750,000
Common stock issued for acquisitions, shares	77,264
Common stock issued for exercise of options	$ 17	45,683		$ 45,700
Common stock issued for exercise of options, shares	17,394			392,394
Common stock issued for legacy acquisition obligation	$ 375	749,625		$ 750,000
Common stock issued for legacy acquisition obligation, shares	375,000
Stock option-based board of directors expense		87,401		87,401
Net loss			(1,656,761)	(1,656,761)
Common stock issued in Initial Public Offering, net	$ 1,913	11,819,451		11,821,364
Common stock issued in Initial Public Offering, net, shares	1,912,500
Common stock issued for convertible note conversion	$ 324	1,605,852		1,606,176
Common stock issued for convertible note conversion, shares	324,150
Common stock issued to vendors for compensation	$ 6	65,389		65,395
Common stock issued to vendors for compensation, shares	6,045
Stock option-based compensation expense		536,524		536,524
Ending balance, value at Sep. 30, 2021	$ 10,292	36,595,898	(23,772,169)	12,834,021
Ending balance, shares at Sep. 30, 2021	10,291,638
Beginning balance, value at Jun. 30, 2022	$ 12,749	56,885,815	(28,081,695)	28,816,869
Beginning balance, shares at Jun. 30, 2022	12,747,624
Common stock issued for acquisition	$ 714	2,845,430		2,846,144
Common stock issued for acquisitions, shares	714,286
Common stock issued for exercise of options	$ 24	39,891		$ 39,915
Common stock issued for exercise of options, shares	24,681			66,853
Common stock issued for legacy acquisition obligation	$ 107	318,464		$ 318,571
Common stock issued for legacy acquisition obligation, shares	107,143
Stock based compensation expense		628,594		628,594
Stock option-based board of directors expense		146,784		146,784
Net loss			(5,382,727)	(5,382,727)
Ending balance, value at Sep. 30, 2022	$ 13,594	$ 60,864,978	$ (33,464,422)	$ 27,414,150
Ending balance, shares at Sep. 30, 2022	13,593,734

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net loss	$ (5,382,727)	$ (1,656,761)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization and depreciation	477,016	27,718
Common stock and stock option based compensation for employees and board of directors	775,852	653,615
Acquisition contingent consideration fair value adjustment	2,603,398
Issuance of common stock to vendors as compensation		62,034
Loss on conversion of convertible notes		279,730
Changes in 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 other current 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 cash used in operating activities	(3,079,019)	(1,053,136)
Cash flow from investing activities:
Purchases of equipment	(83,765)	(18,225)
Acquisitions, net of cash acquired	(2,478,756)
Purchase of investments	(3,290)
Net cash used in investing activities	(2,565,811)	(18,225)
Cash flows from financing activities:
Proceeds from initial public offering, net		11,821,364
Proceeds from exercise of stock options	39,915	45,700
Net cash provided by financing activities	39,915	11,867,064
Net change in cash, cash equivalents and restricted cash	(5,604,915)	10,795,703
Cash, cash equivalents and restricted cash, beginning of period	18,249,666	1,771,929
Cash, cash equivalents and restricted cash, end of period	12,644,751	12,567,632
Non-cash Investing and Financing activities:
Common stock issued for BLI acquisition	2,846,144	750,000
Issuance of common stock for satisfaction of contingent liability, net of note receivable extinguishment	318,571
Extinguishment of note receivable for satisfaction of contingent liability	250,000
Issuance of common stock for satisfaction of contingent liability		750,000
Contingent acquisition consideration liability	6,139,000
Lease liabilities arising from right-to-use assets	1,155,769
Conversion of convertible promissory notes into common stock		1,606,176
Issuance of warrants in connection with initial public offering		$ 522,360

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	NOTE 1. DESCRIPTION OF BUSINESS The Glimpse Group, Inc. (“Glimpse” and together with its wholly owned subsidiaries, collectively, the “Company”) is a Virtual (VR) and Augmented (AR) Reality company, comprised of a diversified portfolio of wholly owned VR and AR software and services companies. Glimpse’s subsidiary companies are located in the United States, Turkey and Australia. The Company was incorporated in the State of Nevada in June 2016. Glimpse’s robust VR/AR ecosystem, collaborative environment and business model strive to simplify the many challenges faced by companies in an emerging industry. Glimpse cultivates, optimizes and manages business operations while providing a strong network of professional relationships, thereby allowing the subsidiary company to maximize their time and resources in pursuit of mission-critical endeavors, reducing time to market, optimizing costs, improving product quality and leveraging joint go-to-market strategies, while simultaneously providing investors an opportunity to invest directly into the VR/AR industry via a diversified platform. The Company completed an initial public offering (“IPO”) of its common stock on the Nasdaq Capital Market Exchange (“Nasdaq”) on July 1, 2021, under the ticker VRAR. In addition, pursuant to a Securities Purchase Agreement (“SPA”) the Company sold additional common stock to certain institutional investors in November 2021. See Note 8.

LIQUIDITY AND CAPITAL RESOURCES

LIQUIDITY AND CAPITAL RESOURCES	3 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
LIQUIDITY AND CAPITAL RESOURCES	NOTE 2. LIQUIDITY AND CAPITAL RESOURCES The Company incurred losses of $ 5.38 1.66 The Company expects to continue to generate net losses for the foreseeable future as it makes investments to grow its business. Management believes that the Company’s existing balances of cash and cash equivalents as of the issuance date of these financial statements, which are approximately $ 10.0 2 100

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the SEC. In the opinion of management, the unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2022, the results of operations for the three months ended September 30, 2022 and 2021, and cash flows for the three months ended September 30, 2022 and 2021. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three months ended September 30, 2022 are not necessarily indicative of the results to be expected for the entire year ending June 30, 2023 or for any subsequent periods. The consolidated balance sheet at June 30, 2022 has been derived from the audited consolidated financial statements as of that date. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended June 30, 2022. Principles of Consolidation The accompanying consolidated financial statements include the balances of Glimpse and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Accounting Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the accompanying consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The principal estimates relate to the valuation of allowance for doubtful accounts, stock options, warrants, revenue recognition, cost of goods sold, allocation of the purchase price of assets relating to business combinations and calculation of contingent consideration for acquisitions. Cash and Cash Equivalents, Restricted Cash Cash and cash equivalents consist of cash and deposits in bank checking accounts with immediate access and cash equivalents that represent highly liquid investments. Restricted cash represents escrowed cash related to the S5D acquisition. The components of cash, cash equivalents and restricted cash on the consolidated statement of cash flows as of September 30, 2022 and 2021 are as follows: SCHEDULE OF COMPONENTS OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH September 30, 2022 September 30, 2021 As of As of September 30, 2022 September 30, 2021 Cash and cash equivalents $ 10,644,751 $ 12,567,632 Restricted cash 2,000,000 - Total $ 12,644,751 $ 12,567,632 Accounts Receivable Accounts receivable consists primarily of amounts due from customers under normal trade terms. Allowances for uncollectible accounts are provided for based upon a variety of factors, including historical amounts written-off, an evaluation of current economic conditions, and assessment of customer collectability. As of September 30, 2022 and June 30, 2022 no allowance for doubtful accounts was recorded as all amounts were considered collectible. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 Customer Concentration and Credit Risk Two customers accounted for approximately 55% 29% 26% 70% 56% 14% One customer accounted for approximately 34% 59% 37% 22% The Company maintains cash in accounts that, at times, may be in excess of the Federal Deposit Insurance Corporation limit. The Company has not experienced any losses on such accounts. Business Combinations The results of a business acquired in a business combination are included in the Company’s consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business generally being recorded at their estimated fair values as of the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. The Company performs valuations of assets acquired and liabilities assumed and allocates the purchase price to its respective assets and liabilities. Determining the fair value of assets acquired and liabilities assumed may require management to use significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenues, costs and cash flows. Estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is typically one year from the acquisition date, if new information is obtained about facts and circumstances that existed as of the acquisition date, changes in the estimated values of the net assets recorded may change the amount of the purchase price allocated to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statement of operations. At times, the Company engages the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities assumed in a business combination. Further, during the year ended June 30, 2022, the Company early adopted ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Revenue from Contracts with a Customer Intangible assets (other than Goodwill) Intangibles represent the allocation of a portion of the acquisition’s purchase price (see Note 5). Intangibles are stated at allocated cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of the related assets. The Company reviews intangibles, being amortized, for impairment when current events indicate that the fair value may be less than the carrying value. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the acquisition method. Goodwill is not amortized but instead is tested at least annually for impairment, or more frequently when events or changes in circumstances indicate that goodwill might be impaired. Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy, which is based on three levels of inputs, the first two of which are considered observable and the last unobservable, that may be used to measure fair value, is as follows: ● Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities; ● Level 2 — inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or ● Level 3 — unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company classifies its cash equivalents and investments within Level 1 of the fair value hierarchy on the basis of valuations based on quoted prices for the specific securities in an active market. The Company’s contingent consideration is categorized as Level 3 within the fair value hierarchy. Contingent consideration is recorded within contingent consideration, current and contingent consideration, non-current in the Company’s consolidated balance sheets as of September 30 and June 30, 2022. Contingent consideration has been recorded at its fair values using unobservable inputs and have included using the Monte Carlo simulation option pricing framework, incorporating contractual terms and assumptions regarding financial forecasts, discount rates, and volatility of forecasted revenue. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management with the assistance of a third-party valuation specialist. The Company’s other financial instruments consist primarily of accounts receivable, note receivable, accounts payable, accrued liabilities and other liabilities approximate fair value due to the short-term nature of these instruments. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 Revenue Recognition Nature of Revenues The Company reports its revenues in two categories: ● Software Services: Virtual and Augmented Reality projects, solutions and consulting services. ● Software License and Software-as-a-Service (“SaaS”): Virtual and Augmented Reality software that is sold either as a license or as a SaaS subscription. The Company applies the following steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● identify the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; ● recognize revenue as the performance obligation is satisfied; ● determine that collection is reasonably assured. Revenue is recognized when the Company satisfies its performance obligation under the contract by transferring the promised product to its customer or service is performed and collection is reasonably assured. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A portion of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. Other contracts can include various services and products which are at times capable of being distinct, and therefore may be accounted for as separate performance obligations. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales taxes and other taxes are excluded from revenues. For distinct performance obligations recognized at a point in time, any unrecognized portion of revenue and any corresponding unrecognized expenses are presented as deferred revenue/contract liability and deferred costs/contract asset, respectively, in the accompanying consolidated balance sheets. Contract assets include cash and equity based payroll costs, and may include payments to consultants and vendors. For distinct performance obligations recognized over time, the Company records a contract asset (costs in excess of billings) when revenue is recognized prior to invoicing, or a contract liability (billings in excess of costs) when revenue is recognized subsequent to invoicing. Significant Judgments The Company’s contracts with customers may include promises to transfer multiple products/services. Determining whether products/services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Further, judgment may be required to determine the standalone selling price for each distinct performance obligation. Disaggregation of Revenue The Company generated revenue for the three months ended September 30, 2022 and 2021 by delivering: (i) Software Services, consisting primarily of VR/AR software projects, solutions and consulting services, and (ii) Software Licenses & SaaS, consisting primarily of VR and AR software licenses or SaaS. The Company currently generates its revenues primarily from customers in the United States. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 Revenue for a significant portion of Software Services projects and solutions (projects whereby, the development of the project leads to an identifiable asset with an alternative use to the Company) is recognized at the point of time in which the customer obtains control of the project, customer accepts delivery and confirms completion of the project. Certain other Software Services revenues are custom project solutions (projects whereby, the development of the custom project leads to an identifiable asset with no alternative use to the Company, and, in which, the Company also has an enforceable right to payment under the contract) and are therefore recognized based on the percentage of completion using an input model with a master budget. The budget is reviewed periodically and percentage of completion adjusted accordingly. Revenue for Software Services consulting services and website maintenance is recognized when the Company performs the services, typically on a monthly retainer basis. Revenue for Software License is recognized at the point of time in which the Company delivers the software and customer accepts delivery. If there are significant contractually stated ongoing service obligations to be performed during the term of the Software License or SaaS contract, then revenues are recognized ratably over the term of the contract. Timing of Revenue The timing of revenue recognition for the three months ended September 30, 2022 and 2021 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION 2022 2021 For the Three Months Ended September 30, 2022 2021 Products and services transferred at a point in time $ 2,996,948 $ 955,751 Products and services transferred/recognized over time 954,076 66,782 Total Revenue $ 3,951,024 $ 1,022,533 Remaining Performance Obligations Timing of revenue recognition may differ from the timing of invoicing to customers. The Company generally records a receivable/contract asset when revenue is recognized prior to invoicing, or deferred revenue/contract liability when revenue is recognized subsequent to invoicing. For certain Software Services project contracts the Company invoices customers after the project has been delivered and accepted by the customer. Software Service project contracts typically consist of designing and programming software for the customer. In most cases, there is only one distinct performance obligation, and revenue is recognized upon completion, delivery and customer acceptance. Contracts may include multiple distinct projects that can each be implemented and operated independently of subsequent projects in the contract. In such cases, the Company accounts for these projects as separate distinct performance obligations and recognizes revenue upon the completion of each project or obligation, its delivery and customer acceptance. For contracts recognized over time, contract liabilities include billings invoiced for software projects for which the contract’s performance obligations are not complete. For certain other Software Services project contracts, the Company invoices customers for a substantial portion of the project upon entering into the contract due to their custom nature and revenue is recognized based upon percentage of completion. Revenue recognized subsequent to invoicing is recorded as a deferred revenue/contract liability (billings in excess of cost) and revenue recognized prior to invoicing is recorded as a deferred cost/contract asset (cost in excess of billings). THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 For Software Services consulting or retainer contracts, the Company generally invoices customers monthly at the beginning of each month in advance for services to be performed in the following month. The sole performance obligation is satisfied when the services are performed. Software Services consulting or retainer contracts typically consist of ongoing support for a customer’s software or specified business practices. For Software License contracts, the Company generally invoices customers when the software has been delivered to and accepted by the customer, which is also when the performance obligation is satisfied. For SaaS contracts, the Company generally invoices customers in advance at the beginning of the service term. For multi-period Software License contracts, the Company generally invoices customers annually at the beginning of each annual coverage period. Software License contracts consist of providing clients with software designed by the Company. For Software License contracts, there are generally no ongoing support obligations unless specified in the contract (becoming a Software Service). Unfulfilled performance obligations represent amounts expected to be earned by the Company on executed contracts. As of September 30, 2022, the Company had approximately $ 3.21 Employee Stock-Based Compensation The Company recognizes stock-based compensation expense related to grants to employees or service providers based on grant date fair values of common stock or the stock options, which are amortized over the requisite period, as well as forfeitures as they occur. The Company values the options using the Black-Scholes Merton (“Black Scholes”) method utilizing various inputs such as expected term, expected volatility and the risk-free rate. The expected term reflects the application of the simplified method, which is the weighted average of the contractual term of the grant and the vesting period for each tranche. Expected volatility is derived from a weighted average of volatility inputs for the Company. The risk-free rate is based on the implied yield of U.S. Treasury notes as of the grant date with a remaining term approximately equal to the expected life of the award. Research and Development Costs Research and development expenses are expensed as incurred, and include payroll, employee benefits and stock-based compensation expense. Research and development expenses also include third-party development and programming costs. Given the emerging industry and uncertain market environment the Company operates in, research and development costs are not capitalized. Earnings Per Share Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential shares of common stock outstanding during the period using the treasury stock method. Dilutive potential common shares include the issuance of potential shares of common stock for outstanding stock options, warrants and convertible debt. Reclassifications Certain accounts in the prior period financial statements have been reclassified for comparative purposes to conform with the presentation in the current period financial statements. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 Recently Adopted Accounting Pronouncements Leases Adoption of the New Lease Accounting Standard On July 1, 2022, the Company adopted ASU No. 2016-02, Leases (Topic 842), using the modified retrospective transition method applied at the adoption date of the standard. Results for reporting periods beginning after July 1, 2022 are presented under the new leasing standard, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting. The Company has elected to utilize the package of practical expedients at the time of adoption, which allows the Company to (1) not reassess whether any expired or existing contracts are or contain leases, (2) not reassess the lease classification of any expired or existing leases, and (3) not reassess initial direct costs for any existing leases. The Company also has elected to utilize the short-term lease recognition exemption and, for those leases that qualified, the Company did not recognize right-of-use (“ROU”) assets or lease liabilities. As a result of adoption, the Company recorded ROU assets related to office facility leases which are recognized on the consolidated balance sheet and the associated lease liabilities are recognized on the consolidated balance sheet. The present value of the Company’s remaining lease payments, which comprise the lease liabilities, was estimated using an estimated incremental borrowing rate as of the adoption date. The adoption resulted in no adjustment to July 1, 2022 accumulated deficit on the consolidated balance sheet. As of July 1, 2022, the Company recorded right-of-use assets of $ 0.75 0.32 0.43 0.41 0.12 0.29 New Lease Accounting Policies The Company determines if an arrangement is a lease at inception and determines the classification of the lease, as either operating or finance, at commencement. For short-term leases with expected terms of less than 1 year, the Company does not recognize ROU assets or lease liabilities. The Company does not have any finance leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the rate implicit in the Company’s leases is not readily determinable, the Company uses an estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company estimates the incremental borrowing rate to reflect the profile of secured borrowing over the expected term of the leases based on the information available at the later of the initial date of adoption or the lease commencement date. Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the Company’s financial statements . THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021

ACQUISITION

ACQUISITION	3 Months Ended
	Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]
ACQUISITION	NOTE 4. ACQUISITION Purchase of BLI On May 25, 2022, Glimpse entered into an Agreement and Plan of Merger (the “Merger Agreement”), with BLI and each of the equity holders of BLI named therein (collectively, the “Members”). BLI is an immersive technology company that provides VR and AR based training scenarios and simulations for commercial and government customers. The acquisition significantly expands the Company’s operating and financial scale, introduces new tier 1 customers specifically in the communication, entertainment and government segments, and bolsters the executive management team. In August 2022, BLI became a wholly-owned subsidiary of Glimpse. The aggregate consideration to the Members per the Agreement consisted of: (a) $ 568,046 505,787 1,926,167 714,286 24,500,000 24,500,000 12,000,000 7.00 The fair value allocation for the purchase price consideration paid at Closing was recorded as follows: SCHEDULE OF BUSINESS ACQUISITION PURCHASE PRICE CONSIDERATION Purchase price consideration: Cash paid to members at Closing $ 2,494,213 Company common stock fair value at Closing 2,846,144 Fair value of contingent consideration to be achieved 6,139,000 Total purchase price $ 11,479,357 Fair value allocation of purchase price: Cash and cash equivalents $ 15,560 Accounts receivable 253,041 Deferred costs/contract assets 552,625 Other assets 90,000 Equipment, net 55,580 Accounts payable and accrued expenses (848,079 ) Deferred revenue/contract liabilities (2,037,070 ) Intangible assets - customer relationships 3,310,000 Intangible assets - technology 880,000 Goodwill 9,207,700 Total fair value allocation of purchase price $ 11,479,357 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 The Company’s fair value estimate of the contingent consideration for the BLI acquisition was determined using a Monte Carlo simulation and other methods which account for the probabilities of various outcomes. The Company’s fair value estimate related to the identified intangible asset of customer relationships was determined using the Multi-Period Excess Earnings Method. This valuation method requires management to project revenues, customer attrition and cash flows for the reporting unit over a multiyear period, as well as determine the weighted average cost of capital to be used as a discount rate. The Company’s fair value estimate related to the identified intangible asset of technology was determined using the Relief from Royalty Method. This valuation method requires management to estimate the royalty rate based on market data for royalty arrangements involving similar technology, the obsolesce rate, and the weighted average cost of capital to be used as a discount rate. The goodwill recognized in connection with the acquisition is primarily attributable to new markets access and will be deductible for tax purposes. In accordance with GAAP, the fair value of the contingent consideration was remeasured as of September 30, 2022, based on market conditions as of that date. The remeasurement resulted in a fair value amount as of September 30, 2022 of $ 6.31 0.17 Unaudited Pro Forma Results The unaudited pro forma financial information in the table below summarizes the combined results of operations for the Company and BLI, as if the companies were combined for the three months ended September 30, 2022. The unaudited pro forma financial information includes the business combination accounting effects resulting from this acquisition, including adjustments to reflect recognition of intangible asset amortization. The unaudited pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisitions had taken place at July 1, 2022. The approximate unaudited pro forma financial information if BLI was included since July 1, 2022 would be: SCHEDULE OF PROFORMA FINANCIAL INFORMATION For the Three Months Revenue $ 3,954,000 Net Loss $ (5,534,000 ) The pro forma net loss was adjusted to exclude approximately $ 0.27 0.17 Costs related to the acquisition, which include legal, accounting and valuation fees, in the amount of approximately $ 0.27 The Company recognized approximately $ 1.51 0.25 0.2 The BLI acquisition above was considered a business combination in accordance with GAAP. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 5. INTANGIBLE ASSETS Intangible assets, their respective amortization period, and accumulated amortization as of September 30, 2022 are as follows: SCHEDULE OF INTANGIBLE ASSETS, AMORTIZATION PERIOD AND ACCUMULATED AMORTIZATION As of September 30, 2022 Value ($) Amortization Period (Years) AUGGD XR Terra S5D PulpoAR BLI Total Intangible Assets Customer Relationships $ 250,000 $ - $ 2,820,000 - $ 3,310,000 $ 6,380,000 5 3 Technology 250,000 300,000 - 925,000 880,000 $ 2,355,000 3 Less: Accumulated Amortization (187,488 ) (99,996 ) (376,000 ) (102,776 ) (159,222 ) $ (925,482 ) Intangible Assets, net $ 312,512 $ 200,004 $ 2,444,000 $ 822,224 $ 4,030,778 $ 7,809,518 Intangible asset amortization expense for the three months ended September 30, 2022 was approximately $ 0.44 Estimated intangible asset amortization expense for the remaining lives are as follows: SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE Remaining Fiscal Year Ended June 30, 2023 $ 1,571,000 Fiscal Year Ended June 30, 2024 $ 2,094,000 Fiscal Year Ended June 30, 2025 $ 1,848,000 Fiscal Year Ended June 30, 2026 $ 1,250,000 Fiscal Year Ended June 30, 2027 $ 991,000 Fiscal Year Ended June 30, 2028 $ 55,000

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	3 Months Ended
	Sep. 30, 2022
Investments, All Other Investments [Abstract]
FINANCIAL INSTRUMENTS	NOTE 6. FINANCIAL INSTRUMENTS Cash and Cash Equivalents and Investments The Company’s money market funds and investments (short term, investment grade corporate bonds) are categorized as Level 1 within the fair value hierarchy. As of September 30 and June 30, 2022, the Company’s cash and cash equivalents and investments were as follows: SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS As of September 30, 2022 Cost Unrealized Gain (Loss) Fair Value Cash and Cash Equivalents Investments Cash $ 1,076,007 $ - $ 1,076,007 Level 1: Money market funds 9,568,744 - 9,568,744 9,568,744 Total cash and cash equivalents $ 10,644,751 $ - $ 9,568,744 $ 10,644,751 Level 1: Investments $ 249,497 $ (6,894 ) $ 242,603 $ 242,603 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 As of June 30, 2022 Cost Unrealized Gain (Loss) Fair Value Cash and Cash Equivalents Investments Cash $ 1,233,608 $ - $ 1,233,608 Level 1: Money market funds 15,016,058 - 15,016,058 15,016,058 Total cash and cash equivalents $ 16,249,666 $ - $ 15,016,058 $ 16,249,666 Level 1: Investments $ 245,187 $ (5,873 ) $ 239,314 $ 239,314 Contingent Consideration As of September 30 and June 30, 2022, the Company’s contingent consideration liabilities related to the acquisitions are categorized as Level 3 within the fair value hierarchy. Contingent consideration was valued at the time of acquisitions and at September 30 and June 30, 2022 using unobservable inputs and have included using the Monte Carlo simulation model. This model incorporates revenue volatility, internal rate of return, and risk-free rate. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management with the assistance of a third-party valuation specialist. A summary of the quantitative significant inputs used to value S5D’s contingent consideration as of September 30, 2022 was: revenue volatility of 61.5% 16.4% 4.2% A summary of the quantitative significant inputs used to value BLI’s contingent consideration as of September 30, 2022 was: revenue volatility of 70.2% 14.3% 4.2% As of September 30, 2022, the Company’s contingent consideration liability related to XR Terra, LLC (“XRT”) is categorized as Level 3 within the fair value hierarchy as it is based on contractual amounts pursuant to the acquisition agreement, of which certain inputs are unobservable. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 As of September 30, 2022, the Company’s contingent consideration liabilities current and non-current balances were as follows: SCHEDULE OF FAIR VALUE OF CONTINGENT CONSIDERATION Contingent Consideration at Purchase Date Changes in Fair Value Fair Value Contingent Consideration As of September 30, 2022 Contingent Consideration at Purchase Date Changes in Fair Value Fair Value Contingent Consideration Level 3: Contingent consideration, current - S5D $ 2,060,300 $ (136,300 ) $ 1,924,000 $ 1,924,000 Contingent consideration, current - BLI 1,841,100 117,900 1,959,000 1,959,000 Contingent consideration, current - XRT - 197,498 197,498 197,498 Total contingent consideration, current portion $ 3,901,400 $ 179,098 $ 4,080,498 $ 4,080,498 Level 3: Contingent consideration, non-current - S5D $ 7,108,900 $ (55,000 ) $ 7,053,900 $ 7,053,900 Contingent consideration, non-current - BLI 4,297,900 48,500 4,346,400 4,346,400 Total contingent consideration, net of current portion $ 11,406,800 $ (6,500 ) $ 11,400,300 $ 11,400,300 The change in fair value of contingent consideration for the three months ended September 30, 2022 was approximately $ 2.60 A summary of the quantitative significant inputs used to value S5D’s contingent consideration as of June 30, 2022 was: revenue volatility of 60.1% 15.1% 3.0% As of June 30, 2022, the Company’s contingent consideration liability related to MotionZone, LLC (“AUGGD”) is categorized as Level 3 within the fair value hierarchy as it is based on contractual amounts pursuant to the acquisition agreement, of which certain inputs are unobservable. As of June 30, 2022, the Company’s contingent consideration liabilities current and non-current balances were as follows: Contingent Consideration at Purchase Date Changes in Fair Value Fair Value Contingent Consideration As of June 30, 2022 Contingent Consideration at Purchase Date Changes in Fair Value Fair Value Contingent Consideration Level 3: Contingent consideration, current - S5D $ 2,060,300 $ (662,700 ) $ 1,397,600 $ 1,397,600 Contingent consideration, current - AUGGD - 568,571 568,571 568,571 Total contingent consideration, current $ 2,060,300 $ (94,129 ) $ 1,966,171 $ 1,966,171 Level 3: Contingent consideration, non-current - S5D $ 7,108,900 $ (1,768,100 ) $ 5,340,800 $ 5,340,800 Contingent consideration, non-current - S5D $ 7,108,900 $ (1,768,100 ) $ 5,340,800 $ 5,340,800 There was no THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021

DEFERRED COSTS_CONTRACT ASSETS

DEFERRED COSTS/CONTRACT ASSETS and DEFERRED REVENUE/CONTRACT LIABILITIES	3 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
DEFERRED COSTS/CONTRACT ASSETS and DEFERRED REVENUE/CONTRACT LIABILITIES	NOTE 7. DEFERRED COSTS/CONTRACT ASSETS and DEFERRED REVENUE/CONTRACT LIABILITIES At September 30 and June 30, 2022, deferred costs/contract assets totaling $ 268,552 39,484 161,557 35,469 106,995 4,015 1,224,748 841,389 1,088,589 533,214 136,159 308,175 The following table shows the reconciliation of the costs in excess of billings and billings in excess of costs for contracts recognized over time: SCHEDULE OF RECONCILIATION OF COST IN EXCESS OF BILLING FOR CONTRACT RECOGNIZED OVER TIME As of Cost incurred on uncompleted contracts $ 328,070 Estimated earnings 480,887 Earned revenue 808,957 Less: billings to date 838,121 Billings in excess of costs, net $ (29,164 ) Balance Sheet Classification Contract assets includes, costs and estimated earnings in excess of billings on uncompleted contracts $ 106,995 Contract liabilities includes, billings in excess of costs and estimated earnings on uncompleted contracts (136,159 ) Billings in excess of costs, net $ (29,164 )

EQUITY

EQUITY	3 Months Ended
	Sep. 30, 2022
Equity [Abstract]
EQUITY	NOTE 8. EQUITY Initial Public Offering (“IPO”) On July 1, 2021, the Company completed an IPO of common stock on the Nasdaq under the symbol “VRAR”, at a price of $ 7.00 The Company sold approximately 1.91 11.82 In connection with the IPO, and for services rendered, the underwriter was issued a warrant to purchase 87,500 7.00 0.52 5 129% 0.87% 0% In conjunction with the IPO, outstanding convertible promissory notes totaling approximately $ 1.43 324,150 0.28 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 Securities Purchase Agreement (“SPA”) In November 2021, the Company sold $ 15.0 13.58 Under the terms of the SPA, the Company sold 1.50 0.75 10.00 14.63 0.56 five years 0.19 8.80 5 146 1.22 0 Common Stock Issued Common stock sold to Investors During the three months ended September 30, 2021, the Company sold approximately 1.91 7.00 11.82 Common stock issued to Investors During the three months ended September 30, 2021, in connection with the conversion of convertible promissory notes and in conjunction with the IPO, the Company issued approximately 324,000 Common stock issued for Acquisitions During the three months ended September 30, 2022, the Company issued approximately 714,000 2.85 77,000 0.75 Common stock issued for satisfaction of contingent consideration During the three months ended September 30, 2022 the Company issued approximately 107,000 0.32 0.57 0.25 375,000 0.75 Common stock issued to Vendors During the three months ended September 30, 2021, the Company issued approximately 6,000 0.07 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 Common stock issued for Exercise of Stock Options During the three months ended September 30, 2022 and 2021, the Company issued approximately 25,000 17,000 0.04 0.05 Employee Stock-Based Compensation The Company’s 2016 Equity Incentive Plan (the “Plan”), as amended, has approximately 10.6 5.0 The Company recognizes compensation expense relating to awards ratably over the requisite period, which is generally the vesting period. Stock options have been recorded at their fair value. The Black-Scholes option-pricing model assumptions used to value the issuance of stock options under the Plan, are noted in the following table: SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS 2022 2021 For the Three Months Ended September 30, 2022 2021 Weighted average expected terms (in years) 6.5 5.4 Weighted average expected volatility 101.4 % 146.1 % Weighted average risk-free interest rate 2.9 % 0.9 % Expected dividend yield 0.0 % 0.0 % The grant date fair value, for options granted during the three months ended September 30, 2022 and 2021 was approximately $ 1.25 0.61 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 The following is a summary of the Company’s stock option activity for the three months ended September 30, 2022 and 2021: SUMMARY OF STOCK OPTION ACTIVITY Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2022 4,484,616 $ 4.68 7.0 $ 2,404,249 Options Granted 321,787 7.00 9.9 - Options Exercised (66,853 ) 4.13 7.1 93,945 Options Forfeited / Cancelled (72,099 ) 8.86 9.0 13,273 Outstanding at September 30, 2022 4,667,451 $ 4.77 6.9 $ 6,429,851 Exercisable at September 30, 2022 3,509,358 $ 3.59 6.0 $ 6,382,458 Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2021 4,740,910 $ 3.40 8.5 $ 7,893,467 Options Granted 94,666 7.11 9.9 423,923 Options Exercised (392,394 ) 2.14 7.2 (3,720,795 ) Options Forfeited / Cancelled (82,838 ) 4.61 9.5 (563,393 ) Outstanding at September 30, 2021 4,360,344 $ 3.58 8.6 $ 16,283,017 Exercisable at September 30, 2021 4,143,324 $ 3.47 8.5 $ 15,852,955 The Company’s stock option-based expense for the three months ended September 30, 2022 and 2021 consisted of the following: SCHEDULE OF STOCK OPTION-BASED EXPENSE Three Months Ended Three Months Ended Stock option-based expense : Research and development expenses $ 387,440 $ 347,597 General and administrative expenses 54,274 66,643 Sales and marketing expenses 186,660 127,992 Cost of goods sold 694 22,764 Board option expense 146,784 88,619 Total $ 775,852 $ 653,615 At September 30, 2022 total unrecognized compensation expense to employees, board members and vendors related to stock options was approximately $ 6.82 2.29 The intrinsic value of stock options at September 30, 2022 and 2021 was computed using a fair market value of the common stock of $ 5.29 7.29 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 9. EARNINGS PER SHARE The following table presents the computation of basic and diluted net loss per common share: SCHEDULE OF COMPUTATION OF BASIC AND DILUTED NET LOSS PER SHARE For the Three Months Ended September 30, Numerator: 2022 2021 Net loss $ (5,382,727 ) $ (1,656,761 ) Denominator: Weighted-average common shares outstanding for basic and diluted net loss per share 13,317,188 9,967,821 Basic and diluted net loss per share $ (0.40 ) $ (0.17 ) Potentially dilutive securities that were not included in the calculation of diluted net loss per share attributable to common stockholders because their effect would be anti-dilutive are as follows (in common equivalent shares): SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES At At Stock Options 4,667,451 4,360,344 Warrants 837,500 87,500 Convertible Notes - - Total 5,504,951 4,447,844

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 10. RELATED PARTY TRANSACTIONS Augmented Reality Investments Pty Ltd (“ARI”) In March 2022, the Company lent to ARI, the entity from which the assets of AUGGD (see Note 11) were bought, $ 0.25 The note bore interest at the rate of 1 The note and any accrued interest were extinguished in July, 2022. See Note 11.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11. COMMITMENTS AND CONTINGENCIES Lease Costs The Company made cash payments for all operating leases for the three months ended September 30, 2022 and 2021, of approximately $ 0.13 0.09 1.9 7.9 The total rent expense for all operating leases for the three months ended September 30, 2022 and 2021, was approximately $ 0.13 0.09 Lease Commitments The Company has various operating leases for its offices. These existing leases have remaining lease terms ranging from 1 to 4 years. Certain lease agreements contain options to renew, with renewal terms that generally extend the lease terms by 1 to 3 years for each option. The Company determined that none of its current leases are reasonably certain to renew. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 Future approximate undiscounted lease payments for the Company’s operating lease liabilities and a reconciliation of these payments to its operating lease liabilities at September 30, 2022 are as follows: SCHEDULE OF UNDISCOUNTED LEASE PAYMENTS Years Ended June 30, 2023 (nine months) $ 364,000 2024 447,000 2025 319,000 2026 96,000 Total future minimum lease commitments, including short-term leases 1,226,000 Less: future minimum lease payments of short -term leases (10,000 ) Less: imputed interest (149,000 ) Present value of future minimum lease payments, excluding short term leases $ 1,067,000 Current portion of operating lease liabilities $ 442,000 Non-current portion of operating lease liabilities 625,000 Total operating lease liability $ 1,067,000 Contingent Consideration for Acquisitions Contingent consideration for acquisitions, consists of the following as of September and June 30, 2022 respectively: SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS September 30, 2022 June 30, 2022 As of As of September 30, 2022 June 30, 2022 S5D, current portion $ 1,924,000 $ 1,397,600 BLI, current portion (see Note 4) 1,959,000 - XRT 197,498 - AUGGD - 568,571 Subtotal current portion 4,080,498 1,966,171 S5D, net of current portion 7,053,900 5,340,800 BLI, net of current portion (see Note 4) 4,346,400 - Total contingent consideration for acquisitions $ 15,480,798 $ 7,306,971 XRT In October 2021, the Company, through its wholly owned subsidiary company, XRT, completed an acquisition of certain assets, as defined, from XR Terra, Inc. In September 2022, XRT achieved a revenue performance milestone as defined in the asset acquisition agreement, and is due approximately $ 0.2 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 AUGGD In August 2021, the Company, through its wholly owned subsidiary company, AUGGD, completed an acquisition of certain assets, as defined, from ARI. In June 2022, AUGGD achieved its initial revenue threshold as defined in the asset acquisition agreement, and was issued shares of Company stock in July 2022 reflecting the payment of additional asset acquisition consideration. The share issuance was done inclusive of netting the outstanding balance of a $ 0.25 0.57 Potential Future Distributions Upon Divestiture or Sale Upon a divestiture or sale of a subsidiary company, the Company is contractually obligated to distribute up to 10% COVID-19 The COVID-19 pandemic caused significant business and financial markets disruption worldwide and there was significant uncertainty around the duration of this disruption and its ongoing effects on our business. This has primarily manifested itself in prolonged sales cycles. We continue to monitor the situation and the effects on our business and operations. While some level of potential uncertainty remains, given the current state of the pandemic, our expected revenue growth and current cash balance, we do not expect the impact of COVID-19 to be material to our business and operations.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the SEC. In the opinion of management, the unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2022, the results of operations for the three months ended September 30, 2022 and 2021, and cash flows for the three months ended September 30, 2022 and 2021. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three months ended September 30, 2022 are not necessarily indicative of the results to be expected for the entire year ending June 30, 2023 or for any subsequent periods. The consolidated balance sheet at June 30, 2022 has been derived from the audited consolidated financial statements as of that date. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended June 30, 2022.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the balances of Glimpse and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Accounting Estimates	Use of Accounting Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the accompanying consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The principal estimates relate to the valuation of allowance for doubtful accounts, stock options, warrants, revenue recognition, cost of goods sold, allocation of the purchase price of assets relating to business combinations and calculation of contingent consideration for acquisitions.
Cash and Cash Equivalents, Restricted Cash	Cash and Cash Equivalents, Restricted Cash Cash and cash equivalents consist of cash and deposits in bank checking accounts with immediate access and cash equivalents that represent highly liquid investments. Restricted cash represents escrowed cash related to the S5D acquisition. The components of cash, cash equivalents and restricted cash on the consolidated statement of cash flows as of September 30, 2022 and 2021 are as follows: SCHEDULE OF COMPONENTS OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH September 30, 2022 September 30, 2021 As of As of September 30, 2022 September 30, 2021 Cash and cash equivalents $ 10,644,751 $ 12,567,632 Restricted cash 2,000,000 - Total $ 12,644,751 $ 12,567,632
Accounts Receivable	Accounts Receivable Accounts receivable consists primarily of amounts due from customers under normal trade terms. Allowances for uncollectible accounts are provided for based upon a variety of factors, including historical amounts written-off, an evaluation of current economic conditions, and assessment of customer collectability. As of September 30, 2022 and June 30, 2022 no allowance for doubtful accounts was recorded as all amounts were considered collectible. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021
Customer Concentration and Credit Risk	Customer Concentration and Credit Risk Two customers accounted for approximately 55% 29% 26% 70% 56% 14% One customer accounted for approximately 34% 59% 37% 22% The Company maintains cash in accounts that, at times, may be in excess of the Federal Deposit Insurance Corporation limit. The Company has not experienced any losses on such accounts.
Business Combinations	Business Combinations The results of a business acquired in a business combination are included in the Company’s consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business generally being recorded at their estimated fair values as of the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. The Company performs valuations of assets acquired and liabilities assumed and allocates the purchase price to its respective assets and liabilities. Determining the fair value of assets acquired and liabilities assumed may require management to use significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenues, costs and cash flows. Estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is typically one year from the acquisition date, if new information is obtained about facts and circumstances that existed as of the acquisition date, changes in the estimated values of the net assets recorded may change the amount of the purchase price allocated to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statement of operations. At times, the Company engages the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities assumed in a business combination. Further, during the year ended June 30, 2022, the Company early adopted ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Revenue from Contracts with a Customer
Intangible assets (other than Goodwill)	Intangible assets (other than Goodwill) Intangibles represent the allocation of a portion of the acquisition’s purchase price (see Note 5). Intangibles are stated at allocated cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of the related assets. The Company reviews intangibles, being amortized, for impairment when current events indicate that the fair value may be less than the carrying value. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021
Goodwill	Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the acquisition method. Goodwill is not amortized but instead is tested at least annually for impairment, or more frequently when events or changes in circumstances indicate that goodwill might be impaired.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy, which is based on three levels of inputs, the first two of which are considered observable and the last unobservable, that may be used to measure fair value, is as follows: ● Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities; ● Level 2 — inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or ● Level 3 — unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company classifies its cash equivalents and investments within Level 1 of the fair value hierarchy on the basis of valuations based on quoted prices for the specific securities in an active market. The Company’s contingent consideration is categorized as Level 3 within the fair value hierarchy. Contingent consideration is recorded within contingent consideration, current and contingent consideration, non-current in the Company’s consolidated balance sheets as of September 30 and June 30, 2022. Contingent consideration has been recorded at its fair values using unobservable inputs and have included using the Monte Carlo simulation option pricing framework, incorporating contractual terms and assumptions regarding financial forecasts, discount rates, and volatility of forecasted revenue. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management with the assistance of a third-party valuation specialist. The Company’s other financial instruments consist primarily of accounts receivable, note receivable, accounts payable, accrued liabilities and other liabilities approximate fair value due to the short-term nature of these instruments. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021
Revenue Recognition	Revenue Recognition Nature of Revenues The Company reports its revenues in two categories: ● Software Services: Virtual and Augmented Reality projects, solutions and consulting services. ● Software License and Software-as-a-Service (“SaaS”): Virtual and Augmented Reality software that is sold either as a license or as a SaaS subscription. The Company applies the following steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● identify the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; ● recognize revenue as the performance obligation is satisfied; ● determine that collection is reasonably assured. Revenue is recognized when the Company satisfies its performance obligation under the contract by transferring the promised product to its customer or service is performed and collection is reasonably assured. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A portion of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. Other contracts can include various services and products which are at times capable of being distinct, and therefore may be accounted for as separate performance obligations. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales taxes and other taxes are excluded from revenues. For distinct performance obligations recognized at a point in time, any unrecognized portion of revenue and any corresponding unrecognized expenses are presented as deferred revenue/contract liability and deferred costs/contract asset, respectively, in the accompanying consolidated balance sheets. Contract assets include cash and equity based payroll costs, and may include payments to consultants and vendors. For distinct performance obligations recognized over time, the Company records a contract asset (costs in excess of billings) when revenue is recognized prior to invoicing, or a contract liability (billings in excess of costs) when revenue is recognized subsequent to invoicing. Significant Judgments The Company’s contracts with customers may include promises to transfer multiple products/services. Determining whether products/services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Further, judgment may be required to determine the standalone selling price for each distinct performance obligation. Disaggregation of Revenue The Company generated revenue for the three months ended September 30, 2022 and 2021 by delivering: (i) Software Services, consisting primarily of VR/AR software projects, solutions and consulting services, and (ii) Software Licenses & SaaS, consisting primarily of VR and AR software licenses or SaaS. The Company currently generates its revenues primarily from customers in the United States. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 Revenue for a significant portion of Software Services projects and solutions (projects whereby, the development of the project leads to an identifiable asset with an alternative use to the Company) is recognized at the point of time in which the customer obtains control of the project, customer accepts delivery and confirms completion of the project. Certain other Software Services revenues are custom project solutions (projects whereby, the development of the custom project leads to an identifiable asset with no alternative use to the Company, and, in which, the Company also has an enforceable right to payment under the contract) and are therefore recognized based on the percentage of completion using an input model with a master budget. The budget is reviewed periodically and percentage of completion adjusted accordingly. Revenue for Software Services consulting services and website maintenance is recognized when the Company performs the services, typically on a monthly retainer basis. Revenue for Software License is recognized at the point of time in which the Company delivers the software and customer accepts delivery. If there are significant contractually stated ongoing service obligations to be performed during the term of the Software License or SaaS contract, then revenues are recognized ratably over the term of the contract. Timing of Revenue The timing of revenue recognition for the three months ended September 30, 2022 and 2021 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION 2022 2021 For the Three Months Ended September 30, 2022 2021 Products and services transferred at a point in time $ 2,996,948 $ 955,751 Products and services transferred/recognized over time 954,076 66,782 Total Revenue $ 3,951,024 $ 1,022,533 Remaining Performance Obligations Timing of revenue recognition may differ from the timing of invoicing to customers. The Company generally records a receivable/contract asset when revenue is recognized prior to invoicing, or deferred revenue/contract liability when revenue is recognized subsequent to invoicing. For certain Software Services project contracts the Company invoices customers after the project has been delivered and accepted by the customer. Software Service project contracts typically consist of designing and programming software for the customer. In most cases, there is only one distinct performance obligation, and revenue is recognized upon completion, delivery and customer acceptance. Contracts may include multiple distinct projects that can each be implemented and operated independently of subsequent projects in the contract. In such cases, the Company accounts for these projects as separate distinct performance obligations and recognizes revenue upon the completion of each project or obligation, its delivery and customer acceptance. For contracts recognized over time, contract liabilities include billings invoiced for software projects for which the contract’s performance obligations are not complete. For certain other Software Services project contracts, the Company invoices customers for a substantial portion of the project upon entering into the contract due to their custom nature and revenue is recognized based upon percentage of completion. Revenue recognized subsequent to invoicing is recorded as a deferred revenue/contract liability (billings in excess of cost) and revenue recognized prior to invoicing is recorded as a deferred cost/contract asset (cost in excess of billings). THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 For Software Services consulting or retainer contracts, the Company generally invoices customers monthly at the beginning of each month in advance for services to be performed in the following month. The sole performance obligation is satisfied when the services are performed. Software Services consulting or retainer contracts typically consist of ongoing support for a customer’s software or specified business practices. For Software License contracts, the Company generally invoices customers when the software has been delivered to and accepted by the customer, which is also when the performance obligation is satisfied. For SaaS contracts, the Company generally invoices customers in advance at the beginning of the service term. For multi-period Software License contracts, the Company generally invoices customers annually at the beginning of each annual coverage period. Software License contracts consist of providing clients with software designed by the Company. For Software License contracts, there are generally no ongoing support obligations unless specified in the contract (becoming a Software Service). Unfulfilled performance obligations represent amounts expected to be earned by the Company on executed contracts. As of September 30, 2022, the Company had approximately $ 3.21
Employee Stock-Based Compensation	Employee Stock-Based Compensation The Company recognizes stock-based compensation expense related to grants to employees or service providers based on grant date fair values of common stock or the stock options, which are amortized over the requisite period, as well as forfeitures as they occur. The Company values the options using the Black-Scholes Merton (“Black Scholes”) method utilizing various inputs such as expected term, expected volatility and the risk-free rate. The expected term reflects the application of the simplified method, which is the weighted average of the contractual term of the grant and the vesting period for each tranche. Expected volatility is derived from a weighted average of volatility inputs for the Company. The risk-free rate is based on the implied yield of U.S. Treasury notes as of the grant date with a remaining term approximately equal to the expected life of the award.
Research and Development Costs	Research and Development Costs Research and development expenses are expensed as incurred, and include payroll, employee benefits and stock-based compensation expense. Research and development expenses also include third-party development and programming costs. Given the emerging industry and uncertain market environment the Company operates in, research and development costs are not capitalized.
Earnings Per Share	Earnings Per Share Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential shares of common stock outstanding during the period using the treasury stock method. Dilutive potential common shares include the issuance of potential shares of common stock for outstanding stock options, warrants and convertible debt.
Reclassifications	Reclassifications Certain accounts in the prior period financial statements have been reclassified for comparative purposes to conform with the presentation in the current period financial statements. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements Leases Adoption of the New Lease Accounting Standard On July 1, 2022, the Company adopted ASU No. 2016-02, Leases (Topic 842), using the modified retrospective transition method applied at the adoption date of the standard. Results for reporting periods beginning after July 1, 2022 are presented under the new leasing standard, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting. The Company has elected to utilize the package of practical expedients at the time of adoption, which allows the Company to (1) not reassess whether any expired or existing contracts are or contain leases, (2) not reassess the lease classification of any expired or existing leases, and (3) not reassess initial direct costs for any existing leases. The Company also has elected to utilize the short-term lease recognition exemption and, for those leases that qualified, the Company did not recognize right-of-use (“ROU”) assets or lease liabilities. As a result of adoption, the Company recorded ROU assets related to office facility leases which are recognized on the consolidated balance sheet and the associated lease liabilities are recognized on the consolidated balance sheet. The present value of the Company’s remaining lease payments, which comprise the lease liabilities, was estimated using an estimated incremental borrowing rate as of the adoption date. The adoption resulted in no adjustment to July 1, 2022 accumulated deficit on the consolidated balance sheet. As of July 1, 2022, the Company recorded right-of-use assets of $ 0.75 0.32 0.43 0.41 0.12 0.29 New Lease Accounting Policies The Company determines if an arrangement is a lease at inception and determines the classification of the lease, as either operating or finance, at commencement. For short-term leases with expected terms of less than 1 year, the Company does not recognize ROU assets or lease liabilities. The Company does not have any finance leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the rate implicit in the Company’s leases is not readily determinable, the Company uses an estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company estimates the incremental borrowing rate to reflect the profile of secured borrowing over the expected term of the leases based on the information available at the later of the initial date of adoption or the lease commencement date.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the Company’s financial statements .

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
SCHEDULE OF COMPONENTS OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH	The components of cash, cash equivalents and restricted cash on the consolidated statement of cash flows as of September 30, 2022 and 2021 are as follows: SCHEDULE OF COMPONENTS OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH September 30, 2022 September 30, 2021 As of As of September 30, 2022 September 30, 2021 Cash and cash equivalents $ 10,644,751 $ 12,567,632 Restricted cash 2,000,000 - Total $ 12,644,751 $ 12,567,632
SCHEDULE OF TIMING REVENUE RECOGNITION	The timing of revenue recognition for the three months ended September 30, 2022 and 2021 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION 2022 2021 For the Three Months Ended September 30, 2022 2021 Products and services transferred at a point in time $ 2,996,948 $ 955,751 Products and services transferred/recognized over time 954,076 66,782 Total Revenue $ 3,951,024 $ 1,022,533

ACQUISITION (Tables)

ACQUISITION (Tables) - Sector Five Digital LLC [Member]	3 Months Ended
	Sep. 30, 2022
Business Acquisition [Line Items]
SCHEDULE OF BUSINESS ACQUISITION PURCHASE PRICE CONSIDERATION	The fair value allocation for the purchase price consideration paid at Closing was recorded as follows: SCHEDULE OF BUSINESS ACQUISITION PURCHASE PRICE CONSIDERATION Purchase price consideration: Cash paid to members at Closing $ 2,494,213 Company common stock fair value at Closing 2,846,144 Fair value of contingent consideration to be achieved 6,139,000 Total purchase price $ 11,479,357 Fair value allocation of purchase price: Cash and cash equivalents $ 15,560 Accounts receivable 253,041 Deferred costs/contract assets 552,625 Other assets 90,000 Equipment, net 55,580 Accounts payable and accrued expenses (848,079 ) Deferred revenue/contract liabilities (2,037,070 ) Intangible assets - customer relationships 3,310,000 Intangible assets - technology 880,000 Goodwill 9,207,700 Total fair value allocation of purchase price $ 11,479,357
SCHEDULE OF PROFORMA FINANCIAL INFORMATION	The approximate unaudited pro forma financial information if BLI was included since July 1, 2022 would be: SCHEDULE OF PROFORMA FINANCIAL INFORMATION For the Three Months Revenue $ 3,954,000 Net Loss $ (5,534,000 )

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF INTANGIBLE ASSETS, AMORTIZATION PERIOD AND ACCUMULATED AMORTIZATION	Intangible assets, their respective amortization period, and accumulated amortization as of September 30, 2022 are as follows: SCHEDULE OF INTANGIBLE ASSETS, AMORTIZATION PERIOD AND ACCUMULATED AMORTIZATION As of September 30, 2022 Value ($) Amortization Period (Years) AUGGD XR Terra S5D PulpoAR BLI Total Intangible Assets Customer Relationships $ 250,000 $ - $ 2,820,000 - $ 3,310,000 $ 6,380,000 5 3 Technology 250,000 300,000 - 925,000 880,000 $ 2,355,000 3 Less: Accumulated Amortization (187,488 ) (99,996 ) (376,000 ) (102,776 ) (159,222 ) $ (925,482 ) Intangible Assets, net $ 312,512 $ 200,004 $ 2,444,000 $ 822,224 $ 4,030,778 $ 7,809,518
SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE	Estimated intangible asset amortization expense for the remaining lives are as follows: SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE Remaining Fiscal Year Ended June 30, 2023 $ 1,571,000 Fiscal Year Ended June 30, 2024 $ 2,094,000 Fiscal Year Ended June 30, 2025 $ 1,848,000 Fiscal Year Ended June 30, 2026 $ 1,250,000 Fiscal Year Ended June 30, 2027 $ 991,000 Fiscal Year Ended June 30, 2028 $ 55,000

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Sep. 30, 2022
Investments, All Other Investments [Abstract]
SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS	SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS As of September 30, 2022 Cost Unrealized Gain (Loss) Fair Value Cash and Cash Equivalents Investments Cash $ 1,076,007 $ - $ 1,076,007 Level 1: Money market funds 9,568,744 - 9,568,744 9,568,744 Total cash and cash equivalents $ 10,644,751 $ - $ 9,568,744 $ 10,644,751 Level 1: Investments $ 249,497 $ (6,894 ) $ 242,603 $ 242,603 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2022 AND 2021 As of June 30, 2022 Cost Unrealized Gain (Loss) Fair Value Cash and Cash Equivalents Investments Cash $ 1,233,608 $ - $ 1,233,608 Level 1: Money market funds 15,016,058 - 15,016,058 15,016,058 Total cash and cash equivalents $ 16,249,666 $ - $ 15,016,058 $ 16,249,666 Level 1: Investments $ 245,187 $ (5,873 ) $ 239,314 $ 239,314
SCHEDULE OF FAIR VALUE OF CONTINGENT CONSIDERATION	As of September 30, 2022, the Company’s contingent consideration liabilities current and non-current balances were as follows: SCHEDULE OF FAIR VALUE OF CONTINGENT CONSIDERATION Contingent Consideration at Purchase Date Changes in Fair Value Fair Value Contingent Consideration As of September 30, 2022 Contingent Consideration at Purchase Date Changes in Fair Value Fair Value Contingent Consideration Level 3: Contingent consideration, current - S5D $ 2,060,300 $ (136,300 ) $ 1,924,000 $ 1,924,000 Contingent consideration, current - BLI 1,841,100 117,900 1,959,000 1,959,000 Contingent consideration, current - XRT - 197,498 197,498 197,498 Total contingent consideration, current portion $ 3,901,400 $ 179,098 $ 4,080,498 $ 4,080,498 Level 3: Contingent consideration, non-current - S5D $ 7,108,900 $ (55,000 ) $ 7,053,900 $ 7,053,900 Contingent consideration, non-current - BLI 4,297,900 48,500 4,346,400 4,346,400 Total contingent consideration, net of current portion $ 11,406,800 $ (6,500 ) $ 11,400,300 $ 11,400,300 As of June 30, 2022, the Company’s contingent consideration liabilities current and non-current balances were as follows: Contingent Consideration at Purchase Date Changes in Fair Value Fair Value Contingent Consideration As of June 30, 2022 Contingent Consideration at Purchase Date Changes in Fair Value Fair Value Contingent Consideration Level 3: Contingent consideration, current - S5D $ 2,060,300 $ (662,700 ) $ 1,397,600 $ 1,397,600 Contingent consideration, current - AUGGD - 568,571 568,571 568,571 Total contingent consideration, current $ 2,060,300 $ (94,129 ) $ 1,966,171 $ 1,966,171 Level 3: Contingent consideration, non-current - S5D $ 7,108,900 $ (1,768,100 ) $ 5,340,800 $ 5,340,800 Contingent consideration, non-current - S5D $ 7,108,900 $ (1,768,100 ) $ 5,340,800 $ 5,340,800

DEFERRED COSTS_CONTRACT ASSET_2

DEFERRED COSTS/CONTRACT ASSETS and DEFERRED REVENUE/CONTRACT LIABILITIES (Tables)	3 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
SCHEDULE OF RECONCILIATION OF COST IN EXCESS OF BILLING FOR CONTRACT RECOGNIZED OVER TIME	The following table shows the reconciliation of the costs in excess of billings and billings in excess of costs for contracts recognized over time: SCHEDULE OF RECONCILIATION OF COST IN EXCESS OF BILLING FOR CONTRACT RECOGNIZED OVER TIME As of Cost incurred on uncompleted contracts $ 328,070 Estimated earnings 480,887 Earned revenue 808,957 Less: billings to date 838,121 Billings in excess of costs, net $ (29,164 ) Balance Sheet Classification Contract assets includes, costs and estimated earnings in excess of billings on uncompleted contracts $ 106,995 Contract liabilities includes, billings in excess of costs and estimated earnings on uncompleted contracts (136,159 ) Billings in excess of costs, net $ (29,164 )

EQUITY (Tables)

EQUITY (Tables)	3 Months Ended
	Sep. 30, 2022
Equity [Abstract]
SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS	Stock options have been recorded at their fair value. The Black-Scholes option-pricing model assumptions used to value the issuance of stock options under the Plan, are noted in the following table: SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS 2022 2021 For the Three Months Ended September 30, 2022 2021 Weighted average expected terms (in years) 6.5 5.4 Weighted average expected volatility 101.4 % 146.1 % Weighted average risk-free interest rate 2.9 % 0.9 % Expected dividend yield 0.0 % 0.0 %
SUMMARY OF STOCK OPTION ACTIVITY	The following is a summary of the Company’s stock option activity for the three months ended September 30, 2022 and 2021: SUMMARY OF STOCK OPTION ACTIVITY Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2022 4,484,616 $ 4.68 7.0 $ 2,404,249 Options Granted 321,787 7.00 9.9 - Options Exercised (66,853 ) 4.13 7.1 93,945 Options Forfeited / Cancelled (72,099 ) 8.86 9.0 13,273 Outstanding at September 30, 2022 4,667,451 $ 4.77 6.9 $ 6,429,851 Exercisable at September 30, 2022 3,509,358 $ 3.59 6.0 $ 6,382,458 Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2021 4,740,910 $ 3.40 8.5 $ 7,893,467 Options Granted 94,666 7.11 9.9 423,923 Options Exercised (392,394 ) 2.14 7.2 (3,720,795 ) Options Forfeited / Cancelled (82,838 ) 4.61 9.5 (563,393 ) Outstanding at September 30, 2021 4,360,344 $ 3.58 8.6 $ 16,283,017 Exercisable at September 30, 2021 4,143,324 $ 3.47 8.5 $ 15,852,955
SCHEDULE OF STOCK OPTION-BASED EXPENSE	The Company’s stock option-based expense for the three months ended September 30, 2022 and 2021 consisted of the following: SCHEDULE OF STOCK OPTION-BASED EXPENSE Three Months Ended Three Months Ended Stock option-based expense : Research and development expenses $ 387,440 $ 347,597 General and administrative expenses 54,274 66,643 Sales and marketing expenses 186,660 127,992 Cost of goods sold 694 22,764 Board option expense 146,784 88,619 Total $ 775,852 $ 653,615

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
SCHEDULE OF COMPUTATION OF BASIC AND DILUTED NET LOSS PER SHARE	The following table presents the computation of basic and diluted net loss per common share: SCHEDULE OF COMPUTATION OF BASIC AND DILUTED NET LOSS PER SHARE For the Three Months Ended September 30, Numerator: 2022 2021 Net loss $ (5,382,727 ) $ (1,656,761 ) Denominator: Weighted-average common shares outstanding for basic and diluted net loss per share 13,317,188 9,967,821 Basic and diluted net loss per share $ (0.40 ) $ (0.17 )
SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES	Potentially dilutive securities that were not included in the calculation of diluted net loss per share attributable to common stockholders because their effect would be anti-dilutive are as follows (in common equivalent shares): SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES At At Stock Options 4,667,451 4,360,344 Warrants 837,500 87,500 Convertible Notes - - Total 5,504,951 4,447,844

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
SCHEDULE OF UNDISCOUNTED LEASE PAYMENTS	Future approximate undiscounted lease payments for the Company’s operating lease liabilities and a reconciliation of these payments to its operating lease liabilities at September 30, 2022 are as follows: SCHEDULE OF UNDISCOUNTED LEASE PAYMENTS Years Ended June 30, 2023 (nine months) $ 364,000 2024 447,000 2025 319,000 2026 96,000 Total future minimum lease commitments, including short-term leases 1,226,000 Less: future minimum lease payments of short -term leases (10,000 ) Less: imputed interest (149,000 ) Present value of future minimum lease payments, excluding short term leases $ 1,067,000 Current portion of operating lease liabilities $ 442,000 Non-current portion of operating lease liabilities 625,000 Total operating lease liability $ 1,067,000
SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS	Contingent consideration for acquisitions, consists of the following as of September and June 30, 2022 respectively: SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS September 30, 2022 June 30, 2022 As of As of September 30, 2022 June 30, 2022 S5D, current portion $ 1,924,000 $ 1,397,600 BLI, current portion (see Note 4) 1,959,000 - XRT 197,498 - AUGGD - 568,571 Subtotal current portion 4,080,498 1,966,171 S5D, net of current portion 7,053,900 5,340,800 BLI, net of current portion (see Note 4) 4,346,400 - Total contingent consideration for acquisitions $ 15,480,798 $ 7,306,971

LIQUIDITY AND CAPITAL RESOURC_2

LIQUIDITY AND CAPITAL RESOURCES (Details Narrative) - USD ($)	2 Months Ended	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ (250,000)	$ 5,382,727	$ 1,656,761
Cash equivalents	10,000,000	10,000,000
Escrow deposit	$ 2,000,000	2,000,000
Proceeds from issuance or sale of equity		$ 100,000,000

SCHEDULE OF COMPONENTS OF CASH,

SCHEDULE OF COMPONENTS OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($)	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2021
Accounting Policies [Abstract]
Cash and cash equivalents	$ 10,644,751	$ 16,249,666	$ 12,567,632
Restricted cash	2,000,000	$ 2,000,000
Total	$ 12,644,751		$ 12,567,632

SCHEDULE OF TIMING REVENUE RECO

SCHEDULE OF TIMING REVENUE RECOGNITION (Details) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Total Revenue	$ 3,951,024	$ 1,022,533
Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	2,996,948	955,751
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	$ 954,076	$ 66,782

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2021	Aug. 01, 2022	Jul. 31, 2022	Jun. 30, 2022
Product Information [Line Items]
Revenue remaining performance obligation	$ 3,210,000
Operating lease, right-of-use asset	1,066,772			$ 410,000	$ 750,000
Operating lease liability current	441,687			120,000	320,000
Operating lease, liability, noncurrent	$ 625,085			$ 290,000	$ 430,000
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Customers [Member]
Product Information [Line Items]
Concentration risk percentage	55%	70%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member]
Product Information [Line Items]
Concentration risk percentage	29%	56%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Two [Member]
Product Information [Line Items]
Concentration risk percentage	26%	14%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member]
Product Information [Line Items]
Concentration risk percentage			37%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member]
Product Information [Line Items]
Concentration risk percentage			22%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customers [Member]
Product Information [Line Items]
Concentration risk percentage	34%		59%

SCHEDULE OF BUSINESS ACQUISITIO

SCHEDULE OF BUSINESS ACQUISITION PURCHASE PRICE CONSIDERATION (Details) - USD ($)	Aug. 01, 2022	Sep. 30, 2022	Jun. 30, 2022
Business Acquisition [Line Items]
Goodwill		$ 22,672,460	$ 13,464,760
Membership Interest Sale Agreement [Member] | Brightline Interactive, LLC [Member]
Business Acquisition [Line Items]
Cash paid	$ 2,494,213
Company common stock fair value when released from escrow at closing	2,846,144
Fair value of contingent consideration to be achieved	6,139,000
Total Purchase price	11,479,357
Cash and cash equivalents	15,560
Accounts receivables	253,041
DeferredCosts ContractAssets	552,625
Other assets	90,000
Equipment, net	55,580
Accounts payable and accrued expenses	(848,079)
Contract liability	(2,037,070)
Intangible assets - customer relationships	3,310,000
Intangible assets - customer relationships	880,000
Goodwill	9,207,700
Total purchase price consideration	$ 11,479,357

SCHEDULE OF PROFORMA FINANCIAL

SCHEDULE OF PROFORMA FINANCIAL INFORMATION (Details)	3 Months Ended
	Sep. 30, 2022 USD ($)
Business Combination and Asset Acquisition [Abstract]
Revenue	$ 3,954,000
Net Loss	$ (5,534,000)

ACQUISITION (Details Narrative)

ACQUISITION (Details Narrative) - USD ($)		2 Months Ended	3 Months Ended
	Aug. 01, 2022	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Business Acquisition [Line Items]
Working capital	$ 505,787
Change in fair value of acquisition contingent consideration			$ (2,603,398)
Revenues		$ 1,510,000
Net income loss		250,000	(5,382,727)	$ (1,656,761)
Inclusive of contingent consideration fair value adjustment expense		$ 200,000
Membership Interest Sale Agreement [Member] | Brightline Interactive, LLC [Member]
Business Acquisition [Line Items]
Payment to acquire business	$ 568,046
Shares issued for acquisition, shares	714,286
Share price	$ 7
Membership Interest Sale Agreement [Member] | Brightline Interactive, LLC [Member] | Maximum [Member]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration, Liability	$ 24,500,000
Payment for contingent liability	12,000,000
Membership Interest Sale Agreement [Member] | Brightline Interactive, LLC [Member] | Debt [Member]
Business Acquisition [Line Items]
Payment to acquire business	$ 1,926,167
Membership Interest Sale Agreement [Member] | Sector 5 Digital, LLC [Member]
Business Acquisition [Line Items]
Fair value of asset acquired			6,310,000
Reduction of asset acquired			170,000
Business combination, acquisition related costs			270,000
Change in fair value of acquisition contingent consideration			170,000
Membership Interest Sale Agreement [Member] | Sector 5 Digital, LLC [Member] | General and Administrative Expense [Member]
Business Acquisition [Line Items]
Business combination, acquisition related costs			$ 270,000

SCHEDULE OF INTANGIBLE ASSETS,

SCHEDULE OF INTANGIBLE ASSETS, AMORTIZATION PERIOD AND ACCUMULATED AMORTIZATION (Details) - USD ($)	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Less: Accumulated Amortization	$ (925,482)
Intangible Assets, net	7,809,518	$ 4,063,485
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, gross	6,380,000
Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, gross	$ 2,355,000
Intangible assets amortization period	3 years
AUGGD [Member]
Finite-Lived Intangible Assets [Line Items]
Less: Accumulated Amortization	$ (187,488)
Intangible Assets, net	312,512
AUGGD [Member] | Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, gross	$ 250,000
Intangible assets amortization period	3 years
AUGGD [Member] | Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, gross	$ 250,000
XR Terra, LLC. [Member]
Finite-Lived Intangible Assets [Line Items]
Less: Accumulated Amortization	(99,996)
Intangible Assets, net	200,004
XR Terra, LLC. [Member] | Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, gross
XR Terra, LLC. [Member] | Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, gross	300,000
Sector 5 Digital [Member]
Finite-Lived Intangible Assets [Line Items]
Less: Accumulated Amortization	(376,000)
Intangible Assets, net	2,444,000
Sector 5 Digital [Member] | Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, gross	2,820,000
Sector 5 Digital [Member] | Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, gross
PulpoAR, LLC [Member]
Finite-Lived Intangible Assets [Line Items]
Less: Accumulated Amortization	(102,776)
Intangible Assets, net	822,224
PulpoAR, LLC [Member] | Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, gross
PulpoAR, LLC [Member] | Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, gross	925,000
Brightline Interactive, LLC [Member]
Finite-Lived Intangible Assets [Line Items]
Less: Accumulated Amortization	(159,222)
Intangible Assets, net	4,030,778
Brightline Interactive, LLC [Member] | Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, gross	3,310,000
Brightline Interactive, LLC [Member] | Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, gross	$ 880,000
Sector 5 Digital and Brightline Interactive, LLC [Member] | Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets amortization period	5 years

SCHEDULE OF INTANGIBLE ASSET AM

SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE (Details)	Sep. 30, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remaining Fiscal Year Ended June 30, 2023	$ 1,571,000
Fiscal Year Ended June 30, 2024	2,094,000
Fiscal Year Ended June 30, 2025	1,848,000
Fiscal Year Ended June 30, 2026	1,250,000
Fiscal Year Ended June 30, 2027	991,000
Fiscal Year Ended June 30, 2028	$ 55,000

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) $ in Thousands	3 Months Ended
	Sep. 30, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible asset amortization expense	$ 440

SCHEDULE OF CASH AND CASH EQUIV

SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2021
Impairment Effects on Earnings Per Share [Line Items]
Cash and Cash Equivalents	$ 10,644,751	$ 16,249,666	$ 12,567,632
Cash [Member]
Impairment Effects on Earnings Per Share [Line Items]
Cost	1,076,007	1,233,608
Cash and Cash Equivalents	1,076,007	1,233,608
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Impairment Effects on Earnings Per Share [Line Items]
Cost	9,568,744	15,016,058
Cash and Cash Equivalents	9,568,744	15,016,058
Fair Value	9,568,744	15,016,058
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member]
Impairment Effects on Earnings Per Share [Line Items]
Cost	10,644,751	16,249,666
Cash and Cash Equivalents	10,644,751	16,249,666
Fair Value	9,568,744	15,016,058
Investments [Member] | Fair Value, Inputs, Level 1 [Member]
Impairment Effects on Earnings Per Share [Line Items]
Cost	249,497	245,187
Fair Value	242,603	239,314
Unrealized Gain (Loss)	(6,894)	(5,873)
Investments	$ 242,603	$ 239,314

SCHEDULE OF FAIR VALUE OF CONTI

SCHEDULE OF FAIR VALUE OF CONTINGENT CONSIDERATION (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($)	Sep. 30, 2022	Jun. 30, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current	$ 4,080,498	$ 1,966,171
Contingent consideration, non-current - S5D	11,400,300
Sector 5 Digital, LLC [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current	1,924,000	1,397,600
Contingent consideration, non-current - S5D	7,053,900	5,340,800
Brightline Interactive, LLC [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current	1,959,000
Contingent consideration, non-current - S5D	4,346,400
XR Terra, LLC [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current	197,498
AUGGD [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current		568,571
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current	3,901,400	2,060,300
Contingent consideration, non-current - S5D	11,406,800
Estimate of Fair Value Measurement [Member] | Sector 5 Digital, LLC [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current	2,060,300	2,060,300
Contingent consideration, non-current - S5D	7,108,900	7,108,900
Estimate of Fair Value Measurement [Member] | Brightline Interactive, LLC [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current	1,841,100
Contingent consideration, non-current - S5D	4,297,900
Estimate of Fair Value Measurement [Member] | XR Terra, LLC [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current
Estimate of Fair Value Measurement [Member] | AUGGD [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current
Changes Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current	179,098	(94,129)
Contingent consideration, non-current - S5D	(6,500)
Changes Measurement [Member] | Sector 5 Digital, LLC [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current	(136,300)	(662,700)
Contingent consideration, non-current - S5D	(55,000)	(1,768,100)
Changes Measurement [Member] | Brightline Interactive, LLC [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current	117,900
Contingent consideration, non-current - S5D	48,500
Changes Measurement [Member] | XR Terra, LLC [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current	197,498
Changes Measurement [Member] | AUGGD [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current		568,571
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current	4,080,498	1,966,171
Contingent consideration, non-current - S5D	11,400,300
Reported Value Measurement [Member] | Sector 5 Digital, LLC [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current	1,924,000	1,397,600
Contingent consideration, non-current - S5D	7,053,900	5,340,800
Reported Value Measurement [Member] | Brightline Interactive, LLC [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current	1,959,000
Contingent consideration, non-current - S5D	4,346,400
Reported Value Measurement [Member] | XR Terra, LLC [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current	$ 197,498
Reported Value Measurement [Member] | AUGGD [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total contingent consideration, current		$ 568,571

FINANCIAL INSTRUMENTS (Details

FINANCIAL INSTRUMENTS (Details Narrative)	3 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Jun. 30, 2022
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Change in fair value of contingent consideration	$ 2,600,000
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset	$ (2,603,398)
Measurement Input, Price Volatility [Member] | Sector 5 Digital, LLC [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Business combination, contingent consideration, measurement input	61.05		60.01
Measurement Input, Price Volatility [Member] | Brightline Interactive, LLC [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Business combination, contingent consideration, measurement input	70.02
Measurement Input, Discount Rate [Member] | Sector 5 Digital, LLC [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Business combination, contingent consideration, measurement input	16.04		15.01
Measurement Input, Discount Rate [Member] | Brightline Interactive, LLC [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Business combination, contingent consideration, measurement input	14.03
Measurement Input, Risk Free Interest Rate [Member] | Sector 5 Digital, LLC [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Business combination, contingent consideration, measurement input	4.02		3
Measurement Input, Risk Free Interest Rate [Member] | Brightline Interactive, LLC [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Business combination, contingent consideration, measurement input	4.02

SCHEDULE OF RECONCILIATION OF C

SCHEDULE OF RECONCILIATION OF COST IN EXCESS OF BILLING FOR CONTRACT RECOGNIZED OVER TIME (Details) - USD ($)	Sep. 30, 2022	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Contract assets includes, costs and estimated earnings in excess of billings on uncompleted contracts	$ 268,552	$ 39,484
Contract liabilities includes, billings in excess of costs and estimated earnings on uncompleted contracts	(1,224,748)	(841,389)
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Cost incurred on uncompleted contracts	328,070
Estimated earnings	480,887
Earned revenue	808,957
Less: billings to date	838,121
Billings in excess of costs, net	(29,164)
Contract assets includes, costs and estimated earnings in excess of billings on uncompleted contracts	106,995	4,015
Contract liabilities includes, billings in excess of costs and estimated earnings on uncompleted contracts	(136,159)	$ (308,175)
Billings in excess of costs, net	$ (29,164)

DEFERRED COSTS_CONTRACT ASSET_3

DEFERRED COSTS/CONTRACT ASSETS and DEFERRED REVENUE/CONTRACT LIABILITIES (Details Narrative) - USD ($)	Sep. 30, 2022	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Contract assets	$ 268,552	$ 39,484
Contract with customer liabilities	1,224,748	841,389
Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Contract assets	161,557	35,469
Contract with customer liabilities	1,088,589	533,214
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Contract assets	106,995	4,015
Contract with customer liabilities	$ 136,159	$ 308,175

SCHEDULE OF STOCK OPTION FAIR V

SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS (Details)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Equity [Abstract]
Weighted average expected terms (in years)	6 years 6 months	5 years 4 months 24 days
Weighted average expected volatility	101.40%	146.10%
Weighted average risk-free interest rate	2.90%	0.90%
Expected dividend yield	0%	0%

SUMMARY OF STOCK OPTION ACTIVIT

SUMMARY OF STOCK OPTION ACTIVITY (Details) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Equity [Abstract]
Options outstanding, beginning balance	4,484,616	4,740,910
Weighted average exercise price, outstanding, beginning balance	$ 4.68	$ 3.40
Weighted average remaining contractual term (Yrs), Outstanding Beginning	7 years	8 years 6 months
Intrinsic value, outstanding Beginning balance	$ 2,404,249	$ 7,893,467
Options, granted	321,787	94,666
Weighted average exercise price, options granted	$ 7	$ 7.11
Weighted average remaining contractual term (Yrs), options granted	9 years 10 months 24 days	9 years 10 months 24 days
Intrinsic value, options granted		$ 423,923
Options, exercised	(66,853)	(392,394)
Weighted average exercise price, options exercised	$ 4.13	$ 2.14
Weighted average remaining contractual term (Yrs), options exercised	7 years 1 month 6 days	7 years 2 months 12 days
Intrinsic value, options exercised	$ 93,945	$ (3,720,795)
Options, dorfeited/Cancelled	(72,099)	(82,838)
Weighted average exercise price, options forfeited/Cancelled	$ 8.86	$ 4.61
Weighted average remaining contractual term (Yrs), options forfeited/Cancelled	9 years	9 years 6 months
Intrinsic value, options forfeited/Cancelled	$ 13,273	$ (563,393)
Options outstanding, ending balance	4,667,451	4,360,344
Weighted average exercise price, outstanding, Ending balance	$ 4.77	$ 3.58
Weighted average remaining contractual term (Yrs), Outstanding Ending	6 years 10 months 24 days	8 years 7 months 6 days
Intrinsic value, outstanding Ending balance	$ 6,429,851	$ 16,283,017
Options exercisable, ending balance	3,509,358	4,143,324
Weighted average exercise price, exercisable, Ending balance	$ 3.59	$ 3.47
Weighted average remaining contractual term (Yrs), exercisable, Ending	6 years	8 years 6 months
Intrinsic value, exercisable Ending balance	$ 6,382,458	$ 15,852,955

SCHEDULE OF STOCK OPTION-BASED

SCHEDULE OF STOCK OPTION-BASED EXPENSE (Details) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Total	$ 775,852	$ 653,615
Research and Development Expense [Member]
Total	387,440	347,597
General and Administrative Expense [Member]
Total	54,274	66,643
Selling and Marketing Expense [Member]
Total	186,660	127,992
Cost of Sales [Member]
Total	694	22,764
Board Option Expense [Member]
Total	$ 146,784	$ 88,619

EQUITY (Details Narrative)

EQUITY (Details Narrative)		1 Months Ended	3 Months Ended
	Jul. 02, 2021 USD ($) $ / shares shares	Nov. 30, 2021 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) $ / shares shares
Subsidiary, Sale of Stock [Line Items]
Number of common stock for acquisition, value | $			$ 2,846,144	$ 750,000
Equity, Fair Value Adjustment | $			320,000
Legacy acquisition obligation | $			570,000
Repayments of Notes Payable | $			$ 250,000
Common stock issued for exercise of stock options			66,853	392,394
Proceeds from stock option exercised | $			$ 39,915	$ 45,700
Options granted, fair value | $			$ 1,250,000	$ 610,000
2016 Equity Incentive Plan [Member]
Subsidiary, Sale of Stock [Line Items]
Stock issued during period shares			10,600,000
Unrecognized compensation expense to employees and vendors | $			$ 6,820,000
Weighted average period			2 years 3 months 14 days
Stock options intrinsic value per share | $ / shares			$ 5.29	$ 7.29
Twenty Sixteen Equity Incentive Plan [Member]
Subsidiary, Sale of Stock [Line Items]
Shares available for issuance			5,000,000
Equity Option [Member]
Subsidiary, Sale of Stock [Line Items]
Common stock issued for exercise of stock options			25,000	17,000
Proceeds from stock option exercised | $			$ 40,000	$ 50,000
Common Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Stock issued during period, shares, new issues				1,912,500
Number of common stock for acquisition, shares			714,286	77,264
Number of common stock for acquisition, value | $			$ 714	$ 77
Common stock issued for exercise of stock options			24,681	17,394
Common Stock [Member] | Brightline Interactive, LLC [Member]
Subsidiary, Sale of Stock [Line Items]
Number of common stock for acquisition, shares			714,000
Number of common stock for acquisition, value | $			$ 2,850,000
Common Stock [Member] | AUGGD [Member]
Subsidiary, Sale of Stock [Line Items]
Number of common stock for acquisition, shares			77,000
Number of common stock for acquisition, value | $			$ 750,000
Common Stock [Member] | Legacy Acquisition Obligation [Member]
Subsidiary, Sale of Stock [Line Items]
Stock issued during period, shares, new issues			107,000
Number of common stock for acquisition, shares				375,000
Investor [Member]
Subsidiary, Sale of Stock [Line Items]
Stock issued during period, shares, new issues				1,910,000
Vendors [Member]
Subsidiary, Sale of Stock [Line Items]
Number of common stock for services, shares				6,000
Number of common stock for services, value | $				$ 70,000
Securities Purchase Agreement [Member]
Subsidiary, Sale of Stock [Line Items]
Share price | $ / shares		$ 10
Sale of stock		1,500,000
Fairvalue of adjustment of warants | $		$ 8,800,000
Stock issued during period, shares, new issues		15,000,000
Warrants price per share		750,000
Warrants price per share | $ / shares		$ 14.63
Warrants to purchase shares exercised		560,000
Warrants and rights outstanding term description		five years
Share based compensation arrangement byShare based payment award non option equity instruments not exercised		190,000
Securities Purchase Agreement [Member] | Investor [Member]
Subsidiary, Sale of Stock [Line Items]
Proceeds from issuance of common stock | $		$ 13,580,000
Valuation Technique, Option Pricing Model [Member] | Securities Purchase Agreement [Member]
Subsidiary, Sale of Stock [Line Items]
Warrants and rights outstanding term		5 years
Fairvalue of measurement input		146
Valuation Technique, Option Pricing Model [Member] | Measurement Input, Risk Free Interest Rate [Member] | Securities Purchase Agreement [Member]
Subsidiary, Sale of Stock [Line Items]
Fairvalue of measurement input		1.22
Valuation Technique, Option Pricing Model [Member] | Measurement Input, Expected Dividend Rate [Member] | Securities Purchase Agreement [Member]
Subsidiary, Sale of Stock [Line Items]
Fairvalue of measurement input		0
IPO [Member]
Subsidiary, Sale of Stock [Line Items]
Share price | $ / shares	$ 7
Sale of stock	1,910,000
Proceeds from issuance of equity | $	$ 11,820,000
Number of common stock for services, shares	87,500
Fairvalue of adjustment of warants | $	$ 520,000
Shares issued for satisfaction of convertable promisary note, value | $	$ 1,430,000
Shares issued for satisfaction of convertable promisary note	324,150
Loss on conversion of convertible notes | $	$ 280,000
IPO [Member] | Common Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Stock issued during period, shares, new issues				324,000
IPO [Member] | Investor [Member]
Subsidiary, Sale of Stock [Line Items]
Share price | $ / shares				$ 7
Proceeds from issuance of common stock | $				$ 11,820,000
IPO [Member] | Valuation Technique, Option Pricing Model [Member]
Subsidiary, Sale of Stock [Line Items]
Warrants and rights outstanding term	5 years
Fairvalue of measurement input	1.29
IPO [Member] | Valuation Technique, Option Pricing Model [Member] | Measurement Input, Risk Free Interest Rate [Member]
Subsidiary, Sale of Stock [Line Items]
Fairvalue of measurement input	0.0087
IPO [Member] | Valuation Technique, Option Pricing Model [Member] | Measurement Input, Expected Dividend Rate [Member]
Subsidiary, Sale of Stock [Line Items]
Fairvalue of measurement input	0

SCHEDULE OF COMPUTATION OF BASI

SCHEDULE OF COMPUTATION OF BASIC AND DILUTED NET LOSS PER SHARE (Details) - USD ($)	2 Months Ended	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Net loss	$ 250,000	$ (5,382,727)	$ (1,656,761)
Weighted-average common shares outstanding for basic and diluted net loss per share		13,317,188	9,967,821
Basic and diluted net loss per share		$ (0.40)	$ (0.17)

SCHEDULE OF POTENTIALLY DILUTIV

SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES (Details) - shares	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	5,504,951	4,447,844
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	4,667,451	4,360,344
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	837,500	87,500
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022
Augmented Reality Investments Pty Ltd [Member]
Restructuring Cost and Reserve [Line Items]
Equity method investment ownership percentage		1%
Augmented Reality Investments Pty Ltd [Member]
Restructuring Cost and Reserve [Line Items]
Due to related parties	$ 250	$ 250

SCHEDULE OF UNDISCOUNTED LEASE

SCHEDULE OF UNDISCOUNTED LEASE PAYMENTS (Details) - USD ($)	Sep. 30, 2022	Aug. 01, 2022	Jul. 31, 2022	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
2023 (nine months)	$ 364,000
2024	447,000
2025	319,000
2026	96,000
Total future minimum lease commitments, including short-term leases	1,226,000
Less: future minimum lease payments of short -term leases	(10,000)
Less: imputed interest	(149,000)
Total operating lease liability	1,067,000
Current portion of operating lease liabilities	441,687	$ 120,000	$ 320,000
Non-current portion of operating lease liabilities	$ 625,085	$ 290,000	$ 430,000

SCHEDULE OF CONTINGENT CONSIDER

SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS (Details) - USD ($)	Sep. 30, 2022	Jun. 30, 2022
Asset Acquisition [Line Items]
Subtotal current portion	$ 4,080,498	$ 1,966,171
BLI, net of current portion (see Note 4)	11,400,300	5,340,800
Total contingent consideration for acquisitions	15,480,798	7,306,971
Sector 5 Digital [Member]
Asset Acquisition [Line Items]
Subtotal current portion	1,924,000	1,397,600
BLI, net of current portion (see Note 4)	7,053,900	5,340,800
Brightline Interactive, LLC [Member]
Asset Acquisition [Line Items]
Subtotal current portion	1,959,000
BLI, net of current portion (see Note 4)	4,346,400
XR Terra, LLC [Member]
Asset Acquisition [Line Items]
Subtotal current portion	197,498
AUGGD [Member]
Asset Acquisition [Line Items]
Subtotal current portion		$ 568,571

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Mar. 31, 2022
Loss Contingencies [Line Items]
Payments for Rent			$ 130	$ 90
Operating Lease, Weighted Average Remaining Lease Term	1 year 10 months 24 days		1 year 10 months 24 days
Operating Lease, Weighted Average Discount Rate, Percent	7.90%		7.90%
Operating Leases, Rent Expense, Net			$ 130	$ 90
Lease commitments, description			These existing leases have remaining lease terms ranging from 1 to 4 years. Certain lease agreements contain options to renew, with renewal terms that generally extend the lease terms by 1 to 3 years for each option. The Company determined that none of its current leases are reasonably certain to renew.
Maximum distribution percentage of net proceeds from divestiture			10%
Augmented Reality Investments Pty Ltd [Member]
Loss Contingencies [Line Items]
Due to related parties		$ 250			$ 250
Operating Expense [Member]
Loss Contingencies [Line Items]
Assets acquisition, consideration payment	$ 200
Operating Expense [Member] | Augmented Reality Investments Pty Ltd [Member]
Loss Contingencies [Line Items]
Assets acquisition, consideration payment		$ 570