Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2024 | May 09, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2024 | |
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., 12th 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 $0.001 per share | |
Trading Symbol | VRAR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,148,217 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 4,285,343 | $ 5,619,083 |
Accounts receivable | 975,172 | 1,453,770 |
Deferred costs/contract assets | 72,205 | 158,552 |
Prepaid expenses and other current assets | 813,193 | 562,163 |
Total current assets | 6,145,913 | 7,793,568 |
Equipment, net | 184,954 | 264,451 |
Right-of-use assets, net | 522,449 | 627,832 |
Intangible assets, net | 2,820,068 | 4,284,151 |
Goodwill | 10,857,600 | 11,236,638 |
Other assets | 73,273 | 71,767 |
Total assets | 20,604,257 | 24,278,407 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 241,072 | 455,777 |
Accrued liabilities | 246,971 | 635,616 |
Accrued non cash performance bonus | 1,041,596 | |
Deferred revenue/contract liabilities | 69,847 | 466,393 |
Lease liabilities, current portion | 413,237 | 405,948 |
Contingent consideration for acquisitions, current portion | 2,918,939 | 5,120,791 |
Total current liabilities | 3,890,066 | 8,126,121 |
Long term liabilities | ||
Contingent consideration for acquisitions, net of current portion | 1,414,682 | 4,505,000 |
Lease liabilities, net of current portion | 211,638 | 423,454 |
Total liabilities | 5,516,386 | 13,054,575 |
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; 18,140,217 and 14,701,929 issued and outstanding, respectively | 18,141 | 14,702 |
Additional paid-in capital | 74,114,774 | 67,854,108 |
Accumulated deficit | (59,045,044) | (56,644,978) |
Total stockholders’ equity | 15,087,871 | 11,223,832 |
Total liabilities and stockholders’ equity | $ 20,604,257 | $ 24,278,407 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Jun. 30, 2023 |
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 | 18,140,217 | 14,701,929 |
Common stock, shares outstanding | 18,140,217 | 14,701,929 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue | ||||
Total Revenue | $ 1,895,643 | $ 3,672,390 | $ 7,076,948 | $ 10,573,961 |
Cost of goods sold | 569,461 | 1,223,531 | 2,406,479 | 3,313,409 |
Gross Profit | 1,326,182 | 2,448,859 | 4,670,469 | 7,260,552 |
Operating expenses: | ||||
Research and development expenses | 1,136,848 | 2,157,307 | 4,209,518 | 6,692,332 |
General and administrative expenses | 1,233,904 | 1,137,231 | 3,375,140 | 3,773,231 |
Sales and marketing expenses | 559,681 | 1,456,883 | 2,138,539 | 4,938,213 |
Amortization of acquisition intangible assets | 291,036 | 550,786 | 950,192 | 1,536,467 |
Goodwill impairment | 250,000 | 379,038 | 250,000 | |
Intangible asset impairment | 229,182 | 522,166 | 229,182 | |
Change in fair value of acquisition contingent consideration | (291,980) | 1,947,989 | (4,317,524) | (677,113) |
Total operating expenses | 2,929,489 | 7,729,378 | 7,257,069 | 16,742,312 |
Loss from operations before other income | (1,603,307) | (5,280,519) | (2,586,600) | (9,481,760) |
Other income | ||||
Interest income | 61,051 | 57,921 | 186,534 | 184,800 |
Net Loss | $ (1,542,256) | $ (5,222,598) | $ (2,400,066) | $ (9,296,960) |
Basic net income (loss) per share | $ (0.09) | $ (0.37) | $ (0.15) | $ (0.68) |
Diluted net income (loss) per share | $ (0.09) | $ (0.37) | $ (0.15) | $ (0.68) |
Weighted-average shares used to compute basic net loss per share | 17,195,322 | 14,093,597 | 16,194,523 | 13,727,595 |
Weighted-average shares used to compute diluted net loss per share | 17,195,322 | 14,093,597 | 16,194,523 | 13,727,595 |
Software Services [Member] | ||||
Revenue | ||||
Total Revenue | $ 1,466,397 | $ 3,119,948 | $ 6,510,740 | $ 9,868,920 |
Software License [Member] | ||||
Revenue | ||||
Total Revenue | $ 429,246 | $ 552,442 | $ 566,208 | $ 705,041 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance , value at Jun. 30, 2022 | $ 12,749 | $ 56,885,815 | $ (28,081,695) | $ 28,816,869 |
Balance, shares at Jun. 30, 2022 | 12,747,624 | |||
Common stock issued to vendors for compensation | $ 2 | 5,236 | 5,238 | |
Common stock issued to vendors for compensation, shares | 1,800 | |||
Common stock issued for contingent acquisition obligation | $ 469 | 1,874,605 | 1,875,074 | |
Common stock issued for contingent acquisition obligation, shares | 469,541 | |||
Common stock and stock option based compensation expense | $ 79 | 2,270,981 | 2,271,060 | |
Stock based compensation expense, shares | 79,167 | |||
Net loss | (9,296,960) | (9,296,960) | ||
Common stock issued for exercise of options | $ 42 | 66,069 | $ 66,111 | |
Common stock issued for exercise of options, shares | 41,996 | 94,932 | ||
Stock option-based board of directors expense | 379,319 | $ 379,319 | ||
Common stock issued for acquisition | $ 714 | 2,845,430 | 2,846,144 | |
Common stock issued for acquisition, shares | 714,286 | |||
Common stock issued for satisfaction of prior year acquisition liability | $ 214 | 733,822 | 734,036 | |
Common stock issued for satisfaction of prior year acquisition liability, shares | 214,288 | |||
Common stock issued for purchase of intangible asset - technology | $ 72 | 326,364 | 326,436 | |
Common stock issued for purchase of intangible asset - technology, shares | 71,430 | |||
Balance , value at Mar. 31, 2023 | $ 14,341 | 65,387,641 | (37,378,655) | 28,023,327 |
Balance, shares at Mar. 31, 2023 | 14,340,132 | |||
Balance , value at Dec. 31, 2022 | $ 13,968 | 63,069,423 | (32,156,057) | 30,927,334 |
Balance, shares at Dec. 31, 2022 | 13,966,007 | |||
Common stock issued to vendors for compensation | $ 2 | 5,236 | 5,238 | |
Common stock issued to vendors for compensation, shares | 1,800 | |||
Common stock issued for contingent acquisition obligation | $ 326 | 1,358,678 | 1,359,004 | |
Common stock issued for contingent acquisition obligation, shares | 326,684 | |||
Common stock and stock option based compensation expense | $ 30 | 847,372 | 847,402 | |
Stock based compensation expense, shares | 30,326 | |||
Net loss | (5,222,598) | (5,222,598) | ||
Common stock issued for exercise of options | $ 15 | 21,180 | 21,195 | |
Common stock issued for exercise of options, shares | 15,315 | |||
Stock option-based board of directors expense | 85,752 | 85,752 | ||
Balance , value at Mar. 31, 2023 | $ 14,341 | 65,387,641 | (37,378,655) | 28,023,327 |
Balance, shares at Mar. 31, 2023 | 14,340,132 | |||
Balance , value at Jun. 30, 2023 | $ 14,702 | 67,854,108 | (56,644,978) | 11,223,832 |
Balance, shares at Jun. 30, 2023 | 14,701,929 | |||
Common stock issued to vendors for compensation | $ 34 | 88,438 | 88,472 | |
Common stock issued to vendors for compensation, shares | 34,197 | |||
Common stock issued for contingent acquisition obligation | $ 786 | 973,861 | 974,647 | |
Common stock issued for contingent acquisition obligation, shares | 785,714 | |||
Common stock and stock option based compensation expense | $ 391 | 1,586,870 | 1,587,261 | |
Stock based compensation expense, shares | 391,201 | |||
Common stock and stock option based board of directors expense | $ 333 | 644,891 | 645,224 | |
Net loss | (2,400,066) | (2,400,066) | ||
Common stock issued in Securities Purchase Agreement, net | $ 1,886 | 2,966,615 | 2,968,501 | |
Common stock issued in Securities Purchase Agreement, net, shares | 1,885,715 | |||
Common stock issued for exercise of options | $ 9 | (9) | ||
Common stock issued for exercise of options, shares | 8,819 | 25,000 | ||
Balance , value at Mar. 31, 2024 | $ 18,141 | 74,114,774 | (59,045,044) | $ 15,087,871 |
Balance, shares at Mar. 31, 2024 | 18,140,217 | |||
Balance , value at Dec. 31, 2023 | $ 16,723 | 72,283,210 | (57,502,788) | 14,797,145 |
Balance, shares at Dec. 31, 2023 | 16,722,146 | |||
Common stock issued to vendors for compensation | $ 5 | 15,185 | 15,190 | |
Common stock issued to vendors for compensation, shares | 5,626 | |||
Common stock issued for contingent acquisition obligation | $ 750 | 846,752 | 847,502 | |
Common stock issued for contingent acquisition obligation, shares | 750,000 | |||
Common stock and stock option based compensation expense | $ 330 | 468,011 | 468,341 | |
Stock based compensation expense, shares | 329,803 | |||
Common stock and stock option based board of directors expense | $ 333 | 501,616 | $ 501,949 | |
Common stock and stock option based board of directors expense, shares | 332,642 | |||
Net loss | (1,542,256) | $ (1,542,256) | ||
Balance , value at Mar. 31, 2024 | $ 18,141 | $ 74,114,774 | $ (59,045,044) | $ 15,087,871 |
Balance, shares at Mar. 31, 2024 | 18,140,217 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (2,400,066) | $ (9,296,960) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization and depreciation | 1,040,759 | 1,645,846 |
Common stock and stock option based compensation for employees and board of directors | 1,742,126 | 2,784,667 |
Accrued non cash performance bonus fair value adjustment | (551,236) | |
Acquisition contingent consideration fair value adjustment | (4,317,524) | (677,113) |
Impairment of goodwill and intangible assets | 901,204 | 479,182 |
Issuance of common stock to vendors as compensation | 88,472 | 5,238 |
Adjustment to operating lease right-of-use assets and liabilities | (99,144) | (15,056) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 478,598 | (48,340) |
Deferred costs/contract assets | 86,347 | 519,673 |
Prepaid expenses and other current assets | (251,030) | (120,436) |
Other assets | (1,506) | 149,962 |
Accounts payable | (214,705) | (525,832) |
Accrued liabilities | (388,644) | (149,673) |
Deferred revenue/contract liabilities | (396,546) | (2,348,561) |
Net cash used in operating activities | (4,282,895) | (7,597,403) |
Cash flow from investing activities: | ||
Purchases of equipment | (19,346) | (139,420) |
Acquisitions, net of cash acquired | (2,522,756) | |
Purchase of investments | (8,197) | |
Net cash used in investing activities | (19,346) | (2,670,373) |
Cash flows provided by financing activities: | ||
Proceeds from securities purchase agreement, net | 2,968,501 | |
Proceeds from exercise of stock options | 66,111 | |
Cash provided by financing activities | 2,968,501 | 66,111 |
Net change in cash, cash equivalents and restricted cash | (1,333,740) | (10,201,665) |
Cash, cash equivalents and restricted cash, beginning of year | 5,619,083 | 18,249,666 |
Cash, cash equivalents and restricted cash, end of period | 4,285,343 | 8,048,001 |
Non-cash Investing and Financing activities: | ||
Issuance of common stock for satisfaction of contingent liability | 974,647 | 2,093,037 |
Issuance of common stock for non cash performance bonus | 490,360 | |
Lease liabilities arising from right-of-use assets | 113,182 | 1,221,513 |
Note receivable for sale of subsidiary assets | 1,000,000 | |
Allowance against note receivable | (1,000,000) | |
Common stock issued for acquisition | 2,845,430 | |
Contingent acquisition consideration liability recorded at closing | 6,139,000 | |
Common stock issued for purchase of intangible asset - technology | 326,436 | |
Issuance of common stock for satisfaction of contingent liability, net of note extinguishment | 318,571 | |
Extinguishment of note receivable for satisfaction of contingent liability | $ 250,000 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 9 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [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 an Immersive technology company, comprised of a diversified portfolio of wholly owned Virtual (VR), Augmented (AR) Reality and Spatial Computing software and services companies. Glimpse’s subsidiary companies are located in the United States and Turkey. The Company was incorporated in the State of Nevada in June 2016. Glimpse’s unique business model builds scale and a robust ecosystem, while simultaneously providing investors an opportunity to invest directly into this emerging 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. |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 2. GOING CONCERN At each reporting period, the Company evaluates whether there are conditions or events that raise doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The Company’s evaluation entails analyzing expectations for the Company’s cash needs and comparing those needs to the current cash and cash equivalent balances. The Company is required to make certain additional disclosures if it concludes substantial doubt exists and it is not alleviated by the Company’s plans or when its plans alleviate substantial doubt about the Company’s ability to continue as a going concern. The Company has incurred recurring losses since its inception, including a net loss of approximately $ 1.5 59.0 Outside of potential revenue growth generated by the Company, in order to alleviate the going concern the Company may take actions which could include but are not limited to: further cost reductions, equity or debt financings and restructuring of potential future cash contingent acquisition liabilities. There is no assurance that these actions will be taken or be successful if pursued. The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described. Potential liquidity resources Potential liquidity resources may include the further sale of common stock pursuant to the unused portion of the $ 100 THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The unaudited condensed 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 condensed 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 March 31, 2024, the results of operations for the three and nine months ended March 31, 2024 and 2023, and cash flows for the nine months ended March 31, 2024 and 2023. 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 and nine months ended March 31, 2024 are not necessarily indicative of the results to be expected for the entire year ending June 30, 2024 or for any subsequent periods. The consolidated balance sheet at June 30, 2023 has been derived from the audited consolidated financial statements at that date. 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 condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended June 30, 2023. Principles of Consolidation The accompanying condensed 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 condensed 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 condensed 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, calculation of contingent consideration for acquisitions, fair value of intangible assets and impairment of non-current assets. THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 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 represented escrowed cash related to the Sector 5 Digital, LLC (“S5D”) acquisition and was fully disbursed during the year ended June 30, 2023 (see Note 6). The components of cash, cash equivalents and restricted cash on the condensed consolidated statements of cash flows as of March 31, 2024 and 2023 are as follows: SCHEDULE OF COMPONENTS OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH As of March 31, As of March 31, 2024 2023 Cash and cash equivalents $ 4,285,343 $ 6,048,001 Restricted cash - 2,000,000 Total $ 4,285,343 $ 8,048,001 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 March 31, 2024 and 2023 no allowance for doubtful accounts was recorded as all amounts were considered collectible. Customer Concentration and Credit Risk Two customers accounted for approximately 40 25 15 39 23 16 32 21 11 49 28 21 Two customers accounted for approximately 54 37 17 43 29 14 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. THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 Business Combinations The results of a business acquired in a business combination are included in the Company’s condensed 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 condensed 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. Intangible assets (other than Goodwill) Intangible assets represent the allocation of a portion of an acquisition’s purchase price. They include acquired customer relationships and developed technology purchased. Intangible assets are stated at allocated cost less accumulated amortization and less impairments. 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. 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. Impairment of Long-Lived Assets The Company reviews long-lived assets to be held and used, other than goodwill, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If an evaluation of recoverability is required, the estimated undiscounted future cashflows directly associated with the asset are compared with the asset’s carrying amount. If the estimated future cash flows from the use of the asset are less than the carrying value, an impairment charge would be recorded to write down the asset to its estimated fair value. 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 GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 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 condensed consolidated balance sheets as of March 31, 2024 and June 30, 2023. 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, accounts payable, accrued liabilities and other liabilities, and approximate fair value due to the short-term nature of these instruments. Revenue Recognition Nature of Revenues The Company reports its revenues in two categories: ● Software Services: Virtual, Augmented Reality and Spatial Computing projects, solutions and consulting services. ● Software License and Software-as-a-Service (“SaaS”): Virtual Reality or Augmented Reality or Spatial Computing 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 cash received for the unrecognized portion of revenue and any costs incurred for the 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 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. THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 Disaggregation of Revenue The Company generated revenue for the three and nine months ended March 31, 2024 and 2023 by delivering: (i) Software Services, consisting primarily of VR/AR/Spatial Computing software projects, solutions and consulting services, and (ii) Software Licenses & SaaS, consisting primarily of VR, AR and Spatial Computing software licenses or SaaS. The Company currently generates its revenues primarily from customers in the United States. 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 Licenses is recognized at the point of time in which the Company delivers the software and customer accepts delivery. Software Licenses often include third party components that are a fully integrated part of the Software License stack and are therefore considered as one deliverable and performance obligation. 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 and nine months ended March 31, 2024 and 2023 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION 2024 2023 2024 2023 For the Three Months Ended For the Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Products and services transferred at a point in time $ 1,783,717 $ 2,957,636 $ 5,861,004 $ 8,172,165 Products and services transferred/recognized over time 111,926 714,754 1,215,944 2,401,796 Total Revenue $ 1,895,643 $ 3,672,390 $ 7,076,948 $ 10,573,961 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. THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 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). 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 March 31, 2024, the Company had approximately $ 1.12 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 vesting 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 based upon historical volatility for a rolling previous year’s trading days of the Company’s common stock. 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. THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 Reclassifications Certain accounts in the prior period financial statements have been reclassified for comparative purposes to conform with the presentation in the current period condensed financial statements. Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies from those disclosed in its Annual Report on Form 10-K for the year ended June 30, 2023, other than those associated with the recently adopted guidance on accounting for expected credit losses and income taxes as further described below. Recently Adopted Accounting Pronouncements In September 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326) which requires measurement and recognition of expected credit losses for financial assets held. The Company adopted this guidance on July 1, 2023 and the impact of the adoption was not material to our condensed consolidated financial statements as credit losses are not expected to be significant based on historical collection trends, the financial condition of payment partners, and external market factors. In December 2019, the FASB issued ASU No. 2019-12 to simplify the accounting in Accounting Standards Codification (“ASC”) 740, Income Taxes. This standard removes certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. The Company adopted this guidance on July 1, 2023 using the prospective transition method. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. Recent Accounting Pronouncements Income Taxes In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic740): Improvements to Income Tax Disclosures |
IMPAIRMENT OF GOODWILL AND LONG
IMPAIRMENT OF GOODWILL AND LONG-LIVED ASSETS | 9 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
IMPAIRMENT OF GOODWILL AND LONG-LIVED ASSETS | NOTE 4. IMPAIRMENT OF GOODWILL AND LONG-LIVED ASSETS PulpoAR, LLC (“Pulpo”) The assets of Pulpo were acquired by the Company in May 2022. Pulpo has not and is not expected to meet any future revenue performance milestones as defined in the asset acquisition agreement. In addition, Pulpo has generated negative cash flows and is expected to continue doing so for the foreseeable future, and its business has become less strategically aligned with the Company’s current focus. As a result, a decision was made by the Company to divest the operations of its wholly owned subsidiary Pulpo. The divestiture was completed in December 2023. Accordingly, the fair value of intangible assets, including goodwill, originally recorded at the time of the purchase, were determined to be to be zero. The net assets of $ 0.90 0.52 0.38 On December 1, 2023 the Company executed an asset purchase agreement whereby the Pulpo assets, as defined, were transferred to a new independent entity, PulpoAR, Inc., majority owned by the original sellers of Pulpo, in return for a 10 1.0 The Note is due November 30, 2026 1 The Company has fully reserved against the Note and accrued interest as collectability is considered remote and accounts for this investment at cost ($ 0 THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 For the three and nine months ended March 31, 2024, Pulpo had revenue of zero 0.07 zero 0.43 For the three and nine months ended March 31, 2023, Pulpo had revenue of $ 0.23 0.35 0.14 0.73 The divestiture will not have a material impact on the Company’s operations or financial results. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 5. GOODWILL AND INTANGIBLE ASSETS The composition of goodwill at March 31, 2024 is as follows: SCHEDULE OF COMPOSITION OF GOODWILL XRT PulpoAR BLI Total Nine Months ended March 31, 2024 XRT PulpoAR BLI Total Goodwill - beginning of year $ 300,000 $ 379,038 $ 10,557,600 $ 11,236,638 Impairments - (379,038 ) - (379,038 ) Goodwill - end of period $ 300,000 $ - $ 10,557,600 $ 10,857,600 Intangible assets, their respective amortization period, and accumulated amortization at March 31, 2024 are as follows: SCHEDULE OF INTANGIBLE ASSETS, AMORTIZATION PERIOD AND ACCUMULATED AMORTIZATION XR Terra Pulpo BLI inciteVR Total As of March 31, 2024 Value ($) Amortization Period (Years) XR Terra Pulpo BLI inciteVR Total Intangible Assets Customer Relationships - beginning of year $ - $ - $ 3,310,000 $ - $ 3,310,000 5 Technology - beginning of year 300,000 925,000 880,000 326,435 2,431,435 3 Technology impairment - (925,000 ) - - (925,000 ) Customer Relationships - end of period - - 3,310,000 - 3,310,000 Technology - end of period 300,000 - 880,000 326,435 1,506,435 Less: Accumulated Amortization (249,994 ) - (1,592,221 ) (154,152 ) (1,996,367 ) Intangible Assets, net $ 50,006 $ - $ 2,597,779 $ 172,283 $ 2,820,068 Intangible asset amortization expense for the three and nine months ended March 31, 2024 was approximately $ 0.29 0.95 zero 0.08 Intangible asset amortization expense for the three and nine months ended March 31, 2023 was approximately $ 0.55 1.54 0.08 0.23 THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 Estimated intangible asset amortization expense for the remaining lives are as follows: SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE Years Ended June 30, 2024 (remaining 3 months) $ 291,000 2025 $ 1,089,000 2026 $ 723,000 2027 $ 662,000 2028 $ 55,000 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Mar. 31, 2024 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 6. FINANCIAL INSTRUMENTS Cash and Cash Equivalents The Company’s money market funds are categorized as Level 1 within the fair value hierarchy. As of March 31, 2024 and June 30, 2023, the Company’s cash and cash equivalents were as follows: SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS As of March 31, 2024 Cost Unrealized Fair Value Cash and Cash Cash $ 171,727 $ - $ 171,727 Level 1: Money market funds 4,113,616 - $ 4,113,616 4,113,616 Total cash and cash equivalents $ 4,285,343 $ - $ 4,113,616 $ 4,285,343 As of June 30, 2023 Cost Unrealized Fair Value Cash and Cash Cash $ 242,271 $ - $ 242,271 Level 1: Money market funds 5,376,812 - $ 5,376,812 5,376,812 Total cash and cash equivalents $ 5,619,083 $ - $ 5,376,812 $ 5,619,083 Contingent Consideration As of March 31, 2024 and June 30, 2023, the Company’s contingent consideration liabilities related to acquisitions are categorized as Level 3 within the fair value hierarchy. Contingent consideration was valued at March 31, 2024 using unobservable inputs, primarily internal revenue forecasts. Contingent consideration was valued at the time of acquisitions and at June 30, 2023 using unobservable inputs and have included using the Monte Carlo simulation model. This model incorporates revenue volatility, internal rate of return, and a 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. THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 As of March 31, 2024, 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 Consideration Paid Changes in Fair Value Fair Value Contingent Consideration As of March 31, 2024 Contingent Consideration Changes in Fair Value Contingent Level 3: Contingent consideration, current - S5D $ 2,060,300 $ (1,359,001 ) $ (701,299 ) $ - $ - Contingent consideration, current - BLI 1,264,200 - 1,654,739 2,918,939 2,918,939 Contingent consideration, current - XRT - (499,288 ) 499,288 - - Total contingent consideration, current portion $ 3,324,500 $ (1,858,289 ) $ 1,452,728 $ 2,918,939 $ 2,918,939 Level 3: Contingent consideration, non-current - S5D $ 7,108,900 $ (2,857,143 ) $ (4,251,757 ) $ - $ - Contingent consideration, non-current - BLI 6,060,700 - (4,646,018 ) 1,414,682 1,414,682 Total contingent consideration, net of current portion $ 13,169,600 $ (2,857,143 ) $ (8,897,775 ) $ 1,414,682 $ 1,414,682 S5D has significantly underperformed revenue expectations that were employed to determine fair value at acquisition. The possibility of achieving any remaining revenue targets to trigger additional consideration is remote and all earned consideration has been paid. Accordingly, there is no future contingent consideration recorded related to the S5D acquisition as of March 31, 2024. The range of potential additional contingent consideration related to S5D at March 31, 2024 through January 2025 (which the Company considers as remote, and no provision is made for it) is zero 9.7 7.00 Revenue projections for BLI are expected to trigger potential additional gross consideration of $ 4.5 4.5 zero 15.0 7.5 7.00 The change in fair value of contingent consideration for S5D and BLI for the three and nine months ended March 31, 2024 was a non-cash gain of approximately $ 0.29 4.23 0.81 THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 The change in fair value of contingent consideration for XR Terra, LLC (“XRT”) for the three and nine months ended March 31, 2024 reflects payouts to the sellers of XRT for consideration recorded as of June 30, 2023. These payouts were made in September 2023 and January 2024 in the form of Company common stock, fair valued at $ 0.17 zero 0.08 zero 1.0 7.00 The range of potential additional contingent consideration related to the previous divestiture of AUGGD, LLC (“AUGGD”) assets at March 31, 2024 through December 2024 is zero 0.20 As of June 30, 2023, the Company’s contingent consideration liabilities current and non-current balances were as follows: Contingent Consideration at Purchase Date Consideration Paid Changes in Fair Value Fair Value Contingent Consideration As of June 30, 2023 Contingent Consideration Changes in Fair Value Contingent Level 3: Contingent consideration, current - S5D $ 2,060,300 $ (1,359,001 ) $ 1,207,501 $ 1,908,800 $ 1,908,800 Contingent consideration, current - BLI 1,264,200 - 1,693,500 2,957,700 2,957,700 Contingent consideration, current - AUGGD - (568,571 ) 568,571 - - Contingent consideration, current - XRT - (331,786 ) 586,077 254,291 254,291 Total contingent consideration, current portion $ 3,324,500 $ (2,259,358 ) $ 4,055,649 $ 5,120,791 $ 5,120,791 Level 3: Contingent consideration, non-current - S5D $ 7,108,900 $ (2,050,000 ) $ (3,807,200 ) $ 1,251,700 $ 1,251,700 Contingent consideration, non-current - BLI 6,060,700 - (2,807,400 ) 3,253,300 3,253,300 Total contingent consideration, net of current portion $ 13,169,600 $ (2,050,000 ) $ (6,614,600 ) $ 4,505,000 $ 4,505,000 THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 The change in fair value of contingent consideration for S5D and BLI for the three and nine months ended March 31, 2023 was a non-cash expense of approximately $ 1.81 1.01 0.13 0.33 |
DEFERRED COSTS_CONTRACT ASSETS
DEFERRED COSTS/CONTRACT ASSETS and DEFERRED REVENUE/CONTRACT LIABILITIES | 9 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and June 30, 2023, deferred costs/contract assets totaling $ 72,205 158,552 38,977 158,552 33,228 0 69,847 466,393 69,847 459,510 0 6,883 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 March 31, 2024 As of June 30, 2023 Cost incurred on uncompleted contracts $ 92,287 $ 78,771 Estimated earnings 116,941 226,096 Earned revenue 209,228 304,867 Less: billings to date 176,000 311,750 Billings in excess of costs, net $ 33,228 $ (6,883 ) Balance Sheet Classification Contract assets includes, costs and estimated earnings in excess of billings on uncompleted contracts $ 33,228 $ - Contract liabilities includes, billings in excess of costs and estimated earnings on uncompleted contracts - (6,883 ) Billings in excess of costs, net $ 33,228 $ (6,883 ) THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 |
EQUITY
EQUITY | 9 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
EQUITY | NOTE 8. EQUITY Securities Purchase Agreement (“SPA”) On September 28, 2023, the Company entered into a SPA with certain institutional investors to sell 1,885,715 3.30 1.75 2.97 The SPA shares were issued on October 3, 2023. Simultaneously, the exercise price on warrants to purchase 750,000 14.63 1.75 Common Stock Issued Common stock issued to satisfy Contingent Acquisition Obligations (see Note 6) During the nine months ended March 31, 2024, the Company issued approximately 714,000 0.81 71,000 0.17 During the nine months ended March 31, 2023, the Company issued approximately 327,000 1.36 36,000 0.20 107,000 0.32 0.57 0.25 Common stock issued to Employees as Compensation During the nine months ended March 31, 2024, the Company issued approximately 391,000 0.57 During the nine months ended March 31, 2023, the Company issued approximately 80,000 0.33 Common stock issued to Board of Directors During the nine months ended March 31, 2024, the Company issued approximately 258,000 443,000 0.37 75,000 0.11 Common stock issued for Exercise of Stock Options During the nine months ended March 31, 2024 and 2023, the Company issued approximately 9,000 and 42,000 shares of common stock in cash and cashless transactions, respectively, upon exercise of the respective option grants and realized cash proceeds of approximately zero and $ 0.07 million, respectively. Common stock issued to Vendors During the nine months ended March 31, 2024 and 2023, the Company issued approximately 34,000 2,000 0.09 0.1 Common stock issued for Business Acquisition and Asset Acquisition - Technology During the nine months ended March 31, 2023, the Company issued approximately: 714,000 2.85 71,000 0.33 214,000 0.73 THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 Employee Stock-Based Compensation Stock Option issuance to Executives In February 2023, pursuant to the Equity Incentive Plan, the Company granted certain executive officers 2.32 7.00 0.22 Equity Incentive Plan The Company’s 2016 Equity Incentive Plan (the “Plan”), as amended, has approximately 12.2 5.2 2.1 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 for the specific periods below are noted in the following table: SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTION 2024 2023 2024 2023 For the Three Months Ended For the Nine Months Ended 2024 2023 2024 2023 Weighted average expected terms (in years) 4.9 6.0 4.9 6.0 Weighted average expected volatility 103.8 % 100.7 % 103.5 % 100.8 % Weighted average risk-free interest rate 4.2 % 3.8 % 4.2 % 3.7 % Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % The weighted average expected term (in years) in the table above excludes the executive Target Options. In February 2024, the Company offered current domestic employees the ability to cancel vested and non-vested stock options in return for a lesser amount of newly granted stock options at lower exercise prices and a new three-year vesting schedule. Pursuant to this offer, the Company cancelled approximately 828,000 578,000 31,000 21,000 250,000 250,000 THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 The grant date fair value for options granted during the nine months ended March 31, 2024 (including the new grants detailed above) and 2023 (excluding executive Target Options), was approximately $ 1.33 7.12 8.53 The following is a summary of the Company’s stock option activity for the nine months ended March 31, 2024 and 2023, excluding the executive Target Options: SUMMARY OF STOCK OPTION ACTIVITY Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2023 6,128,381 $ 4.84 7.0 $ 1,676,966 Options Granted 1,153,662 2.32 9.8 128,315 Options Exercised (25,000 ) 2.00 2.6 191 Options Forfeited / Cancelled (3,418,851 ) 4.91 6.8 88 Outstanding at March 31, 204 3,838,192 $ 4.05 6.9 $ - Exercisable at March 31, 2024 2,234,420 $ 4.04 5.1 $ - The above table excludes executive Target Options: 2,100,000 7.00 8.9 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 2,096,933 5.63 9.8 4,862 Options Exercised (94,932 ) 3.88 6.2 107,426 Options Forfeited / Cancelled (291,605 ) 7.87 8.7 16,208 Outstanding at March 31, 2023 6,195,012 $ 5.38 7.9 $ 2,005,800 Exercisable at March 31, 2023 3,677,049 $ 3.91 5.7 $ 2,005,800 The above table excludes executive Target Options: 2,100,000 7.00 9.9 The intrinsic value of stock options at March 31, 2024 and 2023 was computed using a fair market value of the common stock of $ 1.12 3.76 THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 The Company’s stock option-based expense for the three and nine months ended March 31, 2024 and 2023 consisted of the following: SCHEDULE OF STOCK OPTION-BASED EXPENSE 2024 2023 2024 2023 For the Three Months Ended For the Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Stock option-based expense: Research and development expenses $ 71,840 $ 433,877 $ 520,697 $ 1,204,934 General and administrative expenses 65,362 86,729 238,905 175,777 Sales and marketing expenses (32,704 ) 238,180 254,943 558,461 Cost of goods sold - - - 755 Board option expense 26,271 85,752 169,546 379,319 Total $ 130,769 $ 844,538 $ 1,184,091 $ 2,319,246 There is no expense included for the executive officers’ Target Options. At March 31, 2024 total unrecognized compensation expense to employees, board members and vendors related to stock options was approximately $ 3.19 8.53 2.02 |
LOSS PER SHARE
LOSS PER SHARE | 9 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | NOTE 9. 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 Numerator: 2024 2023 2024 2023 For the Three Months Ended For the Nine Months Ended March 31, March 31, Numerator: 2024 2023 2024 2023 Net loss $ (1,542,256 ) $ (5,222,598 ) $ (2,400,066 ) $ (9,296,960 ) Denominator: Weighted-average common shares outstanding 17,195,322 14,093,597 16,194,523 13,727,595 Basic and diluted net loss per share $ (0.09 ) $ (0.37 ) $ (0.15 ) $ (0.68 ) 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 ANTI_DILUTIVE POTENTIALLY DILUTIVE SECURITIES At March 31, 2024 At March 31, 2023 Stock Options 5,938,192 8,175,012 Warrants 837,500 837,500 Total 6,775,692 9,012,512 Stock Options include 2,100,000 1,980,000 THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10. COMMITMENTS AND CONTINGENCIES Lease Costs The Company made cash payments for all operating leases for the nine months ended March 31, 2024 and 2023, of approximately $ 0.46 0.46 1.24 8.37 The total rent expense for all operating leases for the three months ended March 31, 2024 and 2023, was approximately $ 0.21 0.13 The total rent expense for all operating leases for the nine months ended March 31, 2024 and 2023, was approximately $ 0.35 0.41 Lease Commitments The Company has various operating leases for its offices. These existing leases have remaining lease terms ranging from approximately 1 to 3 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. Future approximate undiscounted lease payments for the Company’s operating lease liabilities and a reconciliation of these payments to its operating lease liabilities at March 31, 2024 are as follows: SCHEDULE OF UNDISCOUNTED LEASE PAYMENTS Years Ended June 30, 2024 (remaining 3 months) $ 122,000 2025 388,000 2026 177,000 Total future minimum lease commitments, including short-term leases 687,000 Less: future minimum lease payments of short -term leases (23,000 ) Less: imputed interest (39,000 ) Present value of future minimum lease payments, excluding short term leases $ 625,000 Current portion of operating lease liabilities $ 413,000 Non-current portion of operating lease liabilities 212,000 Total operating lease liability $ 625,000 THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 Contingent Consideration for Acquisitions Contingent consideration for acquisitions, consists of the following as of March 31, 2024 and June 30, 2023 respectively (see Note 6): SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS As of March 31, As of June 30, 2024 2023 S5D, current portion $ - $ 1,908,800 BLI, current portion 2,918,939 2,957,700 XRT - 254,291 Subtotal current portion 2,918,939 5,120,791 S5D, net of current portion - 1,251,700 BLI, net of current portion 1,414,682 3,253,300 Total contingent consideration for acquisitions $ 4,333,621 $ 9,625,791 Employee Bonus During this fiscal year, a certain employee met the revenue threshold to earn a bonus payout and this was included in accrued non cash performance bonus in the consolidated balance sheet at June 30, 2023. This bonus was paid in February 2024 entirely in the form of Company common stock with a fair value of approximately $ 0.36 zero 0.55 Potential Future Distributions Upon Divestiture or Sale In some instances, upon a divestiture or sale of a subsidiary company or capital raise into subsidiary company, the Company is contractually obligated to distribute a portion of the net proceeds or capital raise to the senior management team of the divested subsidiary company. There are no such distributions expected currently. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11. SUBSEQUENT EVENTS None |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The unaudited condensed 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 condensed 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 March 31, 2024, the results of operations for the three and nine months ended March 31, 2024 and 2023, and cash flows for the nine months ended March 31, 2024 and 2023. 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 and nine months ended March 31, 2024 are not necessarily indicative of the results to be expected for the entire year ending June 30, 2024 or for any subsequent periods. The consolidated balance sheet at June 30, 2023 has been derived from the audited consolidated financial statements at that date. 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 condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended June 30, 2023. |
Principles of Consolidation | Principles of Consolidation The accompanying condensed 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 condensed 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 condensed 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, calculation of contingent consideration for acquisitions, fair value of intangible assets and impairment of non-current assets. THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 |
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 represented escrowed cash related to the Sector 5 Digital, LLC (“S5D”) acquisition and was fully disbursed during the year ended June 30, 2023 (see Note 6). The components of cash, cash equivalents and restricted cash on the condensed consolidated statements of cash flows as of March 31, 2024 and 2023 are as follows: SCHEDULE OF COMPONENTS OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH As of March 31, As of March 31, 2024 2023 Cash and cash equivalents $ 4,285,343 $ 6,048,001 Restricted cash - 2,000,000 Total $ 4,285,343 $ 8,048,001 |
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 March 31, 2024 and 2023 no allowance for doubtful accounts was recorded as all amounts were considered collectible. |
Customer Concentration and Credit Risk | Customer Concentration and Credit Risk Two customers accounted for approximately 40 25 15 39 23 16 32 21 11 49 28 21 Two customers accounted for approximately 54 37 17 43 29 14 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. THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 |
Business Combinations | Business Combinations The results of a business acquired in a business combination are included in the Company’s condensed 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 condensed 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. |
Intangible assets (other than Goodwill) | Intangible assets (other than Goodwill) Intangible assets represent the allocation of a portion of an acquisition’s purchase price. They include acquired customer relationships and developed technology purchased. Intangible assets are stated at allocated cost less accumulated amortization and less impairments. 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. |
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. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets to be held and used, other than goodwill, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If an evaluation of recoverability is required, the estimated undiscounted future cashflows directly associated with the asset are compared with the asset’s carrying amount. If the estimated future cash flows from the use of the asset are less than the carrying value, an impairment charge would be recorded to write down the asset to its estimated fair value. |
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 GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 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 condensed consolidated balance sheets as of March 31, 2024 and June 30, 2023. 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, accounts payable, accrued liabilities and other liabilities, and approximate fair value due to the short-term nature of these instruments. |
Revenue Recognition | Revenue Recognition Nature of Revenues The Company reports its revenues in two categories: ● Software Services: Virtual, Augmented Reality and Spatial Computing projects, solutions and consulting services. ● Software License and Software-as-a-Service (“SaaS”): Virtual Reality or Augmented Reality or Spatial Computing 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 cash received for the unrecognized portion of revenue and any costs incurred for the 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 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. THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 Disaggregation of Revenue The Company generated revenue for the three and nine months ended March 31, 2024 and 2023 by delivering: (i) Software Services, consisting primarily of VR/AR/Spatial Computing software projects, solutions and consulting services, and (ii) Software Licenses & SaaS, consisting primarily of VR, AR and Spatial Computing software licenses or SaaS. The Company currently generates its revenues primarily from customers in the United States. 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 Licenses is recognized at the point of time in which the Company delivers the software and customer accepts delivery. Software Licenses often include third party components that are a fully integrated part of the Software License stack and are therefore considered as one deliverable and performance obligation. 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 and nine months ended March 31, 2024 and 2023 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION 2024 2023 2024 2023 For the Three Months Ended For the Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Products and services transferred at a point in time $ 1,783,717 $ 2,957,636 $ 5,861,004 $ 8,172,165 Products and services transferred/recognized over time 111,926 714,754 1,215,944 2,401,796 Total Revenue $ 1,895,643 $ 3,672,390 $ 7,076,948 $ 10,573,961 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. THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 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). 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 March 31, 2024, the Company had approximately $ 1.12 |
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 vesting 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 based upon historical volatility for a rolling previous year’s trading days of the Company’s common stock. 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. THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 |
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 condensed financial statements. |
Significant Accounting Policies | Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies from those disclosed in its Annual Report on Form 10-K for the year ended June 30, 2023, other than those associated with the recently adopted guidance on accounting for expected credit losses and income taxes as further described below. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In September 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326) which requires measurement and recognition of expected credit losses for financial assets held. The Company adopted this guidance on July 1, 2023 and the impact of the adoption was not material to our condensed consolidated financial statements as credit losses are not expected to be significant based on historical collection trends, the financial condition of payment partners, and external market factors. In December 2019, the FASB issued ASU No. 2019-12 to simplify the accounting in Accounting Standards Codification (“ASC”) 740, Income Taxes. This standard removes certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. The Company adopted this guidance on July 1, 2023 using the prospective transition method. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Income Taxes In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic740): Improvements to Income Tax Disclosures |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SCHEDULE OF COMPONENTS OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | The components of cash, cash equivalents and restricted cash on the condensed consolidated statements of cash flows as of March 31, 2024 and 2023 are as follows: SCHEDULE OF COMPONENTS OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH As of March 31, As of March 31, 2024 2023 Cash and cash equivalents $ 4,285,343 $ 6,048,001 Restricted cash - 2,000,000 Total $ 4,285,343 $ 8,048,001 |
SCHEDULE OF TIMING REVENUE RECOGNITION | The timing of revenue recognition for the three and nine months ended March 31, 2024 and 2023 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION 2024 2023 2024 2023 For the Three Months Ended For the Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Products and services transferred at a point in time $ 1,783,717 $ 2,957,636 $ 5,861,004 $ 8,172,165 Products and services transferred/recognized over time 111,926 714,754 1,215,944 2,401,796 Total Revenue $ 1,895,643 $ 3,672,390 $ 7,076,948 $ 10,573,961 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF COMPOSITION OF GOODWILL | The composition of goodwill at March 31, 2024 is as follows: SCHEDULE OF COMPOSITION OF GOODWILL XRT PulpoAR BLI Total Nine Months ended March 31, 2024 XRT PulpoAR BLI Total Goodwill - beginning of year $ 300,000 $ 379,038 $ 10,557,600 $ 11,236,638 Impairments - (379,038 ) - (379,038 ) Goodwill - end of period $ 300,000 $ - $ 10,557,600 $ 10,857,600 |
SCHEDULE OF INTANGIBLE ASSETS, AMORTIZATION PERIOD AND ACCUMULATED AMORTIZATION | Intangible assets, their respective amortization period, and accumulated amortization at March 31, 2024 are as follows: SCHEDULE OF INTANGIBLE ASSETS, AMORTIZATION PERIOD AND ACCUMULATED AMORTIZATION XR Terra Pulpo BLI inciteVR Total As of March 31, 2024 Value ($) Amortization Period (Years) XR Terra Pulpo BLI inciteVR Total Intangible Assets Customer Relationships - beginning of year $ - $ - $ 3,310,000 $ - $ 3,310,000 5 Technology - beginning of year 300,000 925,000 880,000 326,435 2,431,435 3 Technology impairment - (925,000 ) - - (925,000 ) Customer Relationships - end of period - - 3,310,000 - 3,310,000 Technology - end of period 300,000 - 880,000 326,435 1,506,435 Less: Accumulated Amortization (249,994 ) - (1,592,221 ) (154,152 ) (1,996,367 ) Intangible Assets, net $ 50,006 $ - $ 2,597,779 $ 172,283 $ 2,820,068 |
SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE | Estimated intangible asset amortization expense for the remaining lives are as follows: SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE Years Ended June 30, 2024 (remaining 3 months) $ 291,000 2025 $ 1,089,000 2026 $ 723,000 2027 $ 662,000 2028 $ 55,000 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Investments, All Other Investments [Abstract] | |
SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS | SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS As of March 31, 2024 Cost Unrealized Fair Value Cash and Cash Cash $ 171,727 $ - $ 171,727 Level 1: Money market funds 4,113,616 - $ 4,113,616 4,113,616 Total cash and cash equivalents $ 4,285,343 $ - $ 4,113,616 $ 4,285,343 As of June 30, 2023 Cost Unrealized Fair Value Cash and Cash Cash $ 242,271 $ - $ 242,271 Level 1: Money market funds 5,376,812 - $ 5,376,812 5,376,812 Total cash and cash equivalents $ 5,619,083 $ - $ 5,376,812 $ 5,619,083 |
SCHEDULE OF FAIR VALUE OF CONTINGENT CONSIDERATION | As of March 31, 2024, 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 Consideration Paid Changes in Fair Value Fair Value Contingent Consideration As of March 31, 2024 Contingent Consideration Changes in Fair Value Contingent Level 3: Contingent consideration, current - S5D $ 2,060,300 $ (1,359,001 ) $ (701,299 ) $ - $ - Contingent consideration, current - BLI 1,264,200 - 1,654,739 2,918,939 2,918,939 Contingent consideration, current - XRT - (499,288 ) 499,288 - - Total contingent consideration, current portion $ 3,324,500 $ (1,858,289 ) $ 1,452,728 $ 2,918,939 $ 2,918,939 Level 3: Contingent consideration, non-current - S5D $ 7,108,900 $ (2,857,143 ) $ (4,251,757 ) $ - $ - Contingent consideration, non-current - BLI 6,060,700 - (4,646,018 ) 1,414,682 1,414,682 Total contingent consideration, net of current portion $ 13,169,600 $ (2,857,143 ) $ (8,897,775 ) $ 1,414,682 $ 1,414,682 As of June 30, 2023, the Company’s contingent consideration liabilities current and non-current balances were as follows: Contingent Consideration at Purchase Date Consideration Paid Changes in Fair Value Fair Value Contingent Consideration As of June 30, 2023 Contingent Consideration Changes in Fair Value Contingent Level 3: Contingent consideration, current - S5D $ 2,060,300 $ (1,359,001 ) $ 1,207,501 $ 1,908,800 $ 1,908,800 Contingent consideration, current - BLI 1,264,200 - 1,693,500 2,957,700 2,957,700 Contingent consideration, current - AUGGD - (568,571 ) 568,571 - - Contingent consideration, current - XRT - (331,786 ) 586,077 254,291 254,291 Total contingent consideration, current portion $ 3,324,500 $ (2,259,358 ) $ 4,055,649 $ 5,120,791 $ 5,120,791 Level 3: Contingent consideration, non-current - S5D $ 7,108,900 $ (2,050,000 ) $ (3,807,200 ) $ 1,251,700 $ 1,251,700 Contingent consideration, non-current - BLI 6,060,700 - (2,807,400 ) 3,253,300 3,253,300 Total contingent consideration, net of current portion $ 13,169,600 $ (2,050,000 ) $ (6,614,600 ) $ 4,505,000 $ 4,505,000 |
DEFERRED COSTS_CONTRACT ASSET_2
DEFERRED COSTS/CONTRACT ASSETS and DEFERRED REVENUE/CONTRACT LIABILITIES (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 As of June 30, 2023 Cost incurred on uncompleted contracts $ 92,287 $ 78,771 Estimated earnings 116,941 226,096 Earned revenue 209,228 304,867 Less: billings to date 176,000 311,750 Billings in excess of costs, net $ 33,228 $ (6,883 ) Balance Sheet Classification Contract assets includes, costs and estimated earnings in excess of billings on uncompleted contracts $ 33,228 $ - Contract liabilities includes, billings in excess of costs and estimated earnings on uncompleted contracts - (6,883 ) Billings in excess of costs, net $ 33,228 $ (6,883 ) |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTION | 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 for the specific periods below are noted in the following table: SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTION 2024 2023 2024 2023 For the Three Months Ended For the Nine Months Ended 2024 2023 2024 2023 Weighted average expected terms (in years) 4.9 6.0 4.9 6.0 Weighted average expected volatility 103.8 % 100.7 % 103.5 % 100.8 % Weighted average risk-free interest rate 4.2 % 3.8 % 4.2 % 3.7 % Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % |
SUMMARY OF STOCK OPTION ACTIVITY | The following is a summary of the Company’s stock option activity for the nine months ended March 31, 2024 and 2023, excluding the executive Target Options: SUMMARY OF STOCK OPTION ACTIVITY Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2023 6,128,381 $ 4.84 7.0 $ 1,676,966 Options Granted 1,153,662 2.32 9.8 128,315 Options Exercised (25,000 ) 2.00 2.6 191 Options Forfeited / Cancelled (3,418,851 ) 4.91 6.8 88 Outstanding at March 31, 204 3,838,192 $ 4.05 6.9 $ - Exercisable at March 31, 2024 2,234,420 $ 4.04 5.1 $ - 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 2,096,933 5.63 9.8 4,862 Options Exercised (94,932 ) 3.88 6.2 107,426 Options Forfeited / Cancelled (291,605 ) 7.87 8.7 16,208 Outstanding at March 31, 2023 6,195,012 $ 5.38 7.9 $ 2,005,800 Exercisable at March 31, 2023 3,677,049 $ 3.91 5.7 $ 2,005,800 |
SCHEDULE OF STOCK OPTION-BASED EXPENSE | The Company’s stock option-based expense for the three and nine months ended March 31, 2024 and 2023 consisted of the following: SCHEDULE OF STOCK OPTION-BASED EXPENSE 2024 2023 2024 2023 For the Three Months Ended For the Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Stock option-based expense: Research and development expenses $ 71,840 $ 433,877 $ 520,697 $ 1,204,934 General and administrative expenses 65,362 86,729 238,905 175,777 Sales and marketing expenses (32,704 ) 238,180 254,943 558,461 Cost of goods sold - - - 755 Board option expense 26,271 85,752 169,546 379,319 Total $ 130,769 $ 844,538 $ 1,184,091 $ 2,319,246 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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 Numerator: 2024 2023 2024 2023 For the Three Months Ended For the Nine Months Ended March 31, March 31, Numerator: 2024 2023 2024 2023 Net loss $ (1,542,256 ) $ (5,222,598 ) $ (2,400,066 ) $ (9,296,960 ) Denominator: Weighted-average common shares outstanding 17,195,322 14,093,597 16,194,523 13,727,595 Basic and diluted net loss per share $ (0.09 ) $ (0.37 ) $ (0.15 ) $ (0.68 ) |
SCHEDULE OF ANTI_DILUTIVE 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 ANTI_DILUTIVE POTENTIALLY DILUTIVE SECURITIES At March 31, 2024 At March 31, 2023 Stock Options 5,938,192 8,175,012 Warrants 837,500 837,500 Total 6,775,692 9,012,512 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 are as follows: SCHEDULE OF UNDISCOUNTED LEASE PAYMENTS Years Ended June 30, 2024 (remaining 3 months) $ 122,000 2025 388,000 2026 177,000 Total future minimum lease commitments, including short-term leases 687,000 Less: future minimum lease payments of short -term leases (23,000 ) Less: imputed interest (39,000 ) Present value of future minimum lease payments, excluding short term leases $ 625,000 Current portion of operating lease liabilities $ 413,000 Non-current portion of operating lease liabilities 212,000 Total operating lease liability $ 625,000 |
SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS | Contingent consideration for acquisitions, consists of the following as of March 31, 2024 and June 30, 2023 respectively (see Note 6): SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS As of March 31, As of June 30, 2024 2023 S5D, current portion $ - $ 1,908,800 BLI, current portion 2,918,939 2,957,700 XRT - 254,291 Subtotal current portion 2,918,939 5,120,791 S5D, net of current portion - 1,251,700 BLI, net of current portion 1,414,682 3,253,300 Total contingent consideration for acquisitions $ 4,333,621 $ 9,625,791 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Oct. 28, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Net loss | $ 1,542,256 | $ 5,222,598 | $ 2,400,066 | $ 9,296,960 | ||
Accumulated deficit | $ 59,045,044 | $ 59,045,044 | $ 56,644,978 | |||
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 ($) | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 |
Accounting Policies [Abstract] | |||
Cash and cash equivalents | $ 4,285,343 | $ 5,619,083 | $ 6,048,001 |
Restricted cash | 2,000,000 | ||
Total | $ 4,285,343 | $ 8,048,001 |
SCHEDULE OF TIMING REVENUE RECO
SCHEDULE OF TIMING REVENUE RECOGNITION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 1,895,643 | $ 3,672,390 | $ 7,076,948 | $ 10,573,961 |
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 1,783,717 | 2,957,636 | 5,861,004 | 8,172,165 |
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 111,926 | $ 714,754 | $ 1,215,944 | $ 2,401,796 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Product Information [Line Items] | |||||
Revenue remaining performance obligation | $ 1,120 | $ 1,120 | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Customers [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 40% | 32% | 39% | 49% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 25% | 21% | 23% | 28% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 15% | 11% | 16% | 21% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customers [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 54% | 43% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 37% | 29% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 17% | 14% |
SCHEDULE OF COMPOSITION OF GOOD
SCHEDULE OF COMPOSITION OF GOODWILL (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Goodwill - beginning of year | $ 11,236,638 | |||
Impairments | $ (250,000) | (379,038) | $ (250,000) | |
Goodwill - end of period | 10,857,600 | 10,857,600 | ||
XR Terra, LLC. [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Goodwill - beginning of year | 300,000 | |||
Impairments | ||||
Goodwill - end of period | 300,000 | 300,000 | ||
PulpoAR, LLC [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Goodwill - beginning of year | 379,038 | |||
Impairments | (379,038) | |||
Goodwill - end of period | ||||
Brightline Interactive, LLC [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Goodwill - beginning of year | 10,557,600 | |||
Impairments | ||||
Goodwill - end of period | $ 10,557,600 | $ 10,557,600 |
SCHEDULE OF INTANGIBLE ASSETS,
SCHEDULE OF INTANGIBLE ASSETS, AMORTIZATION PERIOD AND ACCUMULATED AMORTIZATION (Details) | 9 Months Ended |
Mar. 31, 2024 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Less: Accumulated Amortization | $ (1,996,367) |
Intangible Assets, net | 2,820,068 |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology - beginning of year | $ 3,310,000 |
Intangible assets amortization period | 5 years |
Technology - end of period | $ 3,310,000 |
Technology-Based Intangible Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology - beginning of year | $ 2,431,435 |
Intangible assets amortization period | 3 years |
Technolgy Impairment [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology impairment | $ (925,000) |
Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology - end of period | 1,506,435 |
XR Terra, LLC. [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Less: Accumulated Amortization | (249,994) |
Intangible Assets, net | 50,006 |
XR Terra, LLC. [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology - beginning of year | |
Technology - end of period | |
XR Terra, LLC. [Member] | Technology-Based Intangible Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology - beginning of year | 300,000 |
XR Terra, LLC. [Member] | Technolgy Impairment [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology impairment | |
XR Terra, LLC. [Member] | Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology - end of period | 300,000 |
PulpoAR, LLC [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Less: Accumulated Amortization | |
Intangible Assets, net | |
PulpoAR, LLC [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology - beginning of year | |
Technology - end of period | |
PulpoAR, LLC [Member] | Technology-Based Intangible Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology - beginning of year | 925,000 |
PulpoAR, LLC [Member] | Technolgy Impairment [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology impairment | (925,000) |
PulpoAR, LLC [Member] | Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology - end of period | |
Brightline Interactive, LLC [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Less: Accumulated Amortization | (1,592,221) |
Intangible Assets, net | 2,597,779 |
Brightline Interactive, LLC [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology - beginning of year | 3,310,000 |
Technology - end of period | 3,310,000 |
Brightline Interactive, LLC [Member] | Technology-Based Intangible Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology - beginning of year | 880,000 |
Brightline Interactive, LLC [Member] | Technolgy Impairment [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology impairment | |
Brightline Interactive, LLC [Member] | Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology - end of period | 880,000 |
InciteVR [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Less: Accumulated Amortization | (154,152) |
Intangible Assets, net | 172,283 |
InciteVR [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology - beginning of year | |
Technology - end of period | |
InciteVR [Member] | Technology-Based Intangible Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology - beginning of year | 326,435 |
InciteVR [Member] | Technolgy Impairment [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology impairment | |
InciteVR [Member] | Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Technology - end of period | $ 326,435 |
IMPAIRMENT OF GOODWILL AND LO_2
IMPAIRMENT OF GOODWILL AND LONG-LIVED ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Dec. 01, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible asset impairment | $ 10,857,600 | $ 10,857,600 | $ 11,236,638 | |||
Net loss | (1,542,256) | $ (5,222,598) | (2,400,066) | $ (9,296,960) | ||
PulpoAR, LLC [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets written off | 900,000 | 900,000 | ||||
Intangible asset impairment | $ 379,038 | |||||
Ownership percentage | 10% | |||||
Secured debt | $ 1,000,000 | |||||
Maturity date | Nov. 30, 2026 | |||||
Interest rate | 1% | |||||
Investment at cost | $ 0 | |||||
Revenue | 0 | 230,000 | 70,000 | 350,000 | ||
Net loss | 0 | $ 140,000 | 430,000 | $ 730,000 | ||
PulpoAR, LLC [Member] | Technology-Based Intangible Assets [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets written off | 520,000 | 520,000 | ||||
Intangible asset impairment | $ 380,000 | $ 380,000 |
SCHEDULE OF INTANGIBLE ASSET AM
SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE (Details) | Mar. 31, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 (remaining 3 months) | $ 291,000 |
2025 | 1,089,000 |
2026 | 723,000 |
2027 | 662,000 |
2028 | $ 55,000 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Intangible asset amortization expense | $ 291,036 | $ 550,786 | $ 950,192 | $ 1,536,467 |
PulpoAR, LLC [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Intangible asset amortization expense | $ 0 | $ 80,000 | $ 80,000 | $ 230,000 |
SCHEDULE OF CASH AND CASH EQUIV
SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Impairment Effects on Earnings Per Share [Line Items] | |||
Cash and Cash Equivalents | $ 4,285,343 | $ 5,619,083 | $ 6,048,001 |
Cash [Member] | |||
Impairment Effects on Earnings Per Share [Line Items] | |||
Cost | 171,727 | 242,271 | |
Unrealized Gain (Loss) | |||
Cash and Cash Equivalents | 171,727 | 242,271 | |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Impairment Effects on Earnings Per Share [Line Items] | |||
Cost | 4,113,616 | 5,376,812 | |
Unrealized Gain (Loss) | |||
Cash and Cash Equivalents | 4,113,616 | 5,376,812 | |
Fair Value | 4,113,616 | 5,376,812 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Impairment Effects on Earnings Per Share [Line Items] | |||
Cost | 4,285,343 | 5,619,083 | |
Unrealized Gain (Loss) | |||
Cash and Cash Equivalents | 4,285,343 | 5,619,083 | |
Fair Value | $ 4,113,616 | $ 5,376,812 |
SCHEDULE OF FAIR VALUE OF CONTI
SCHEDULE OF FAIR VALUE OF CONTINGENT CONSIDERATION (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Contingent Consideration Liability Current [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Contingent Consideration at Purchase Date | $ 3,324,500 | $ 3,324,500 |
Consideration Paid | (1,858,289) | (2,259,358) |
Changes in Fair Value | 1,452,728 | 4,055,649 |
Fair Value | 2,918,939 | 5,120,791 |
Contingent Consideration | 2,918,939 | 5,120,791 |
Contingent Consideration Liability Noncurrent [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Contingent Consideration at Purchase Date | 13,169,600 | 13,169,600 |
Consideration Paid | (2,857,143) | (2,050,000) |
Changes in Fair Value | (8,897,775) | (6,614,600) |
Fair Value | 1,414,682 | 4,505,000 |
Contingent Consideration | 1,414,682 | 4,505,000 |
Sector 5 Digital, LLC [Member] | Contingent Consideration Liability Current [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Contingent Consideration at Purchase Date | 2,060,300 | 2,060,300 |
Consideration Paid | (1,359,001) | (1,359,001) |
Changes in Fair Value | (701,299) | 1,207,501 |
Fair Value | 1,908,800 | |
Contingent Consideration | 1,908,800 | |
Sector 5 Digital, LLC [Member] | Contingent Consideration Liability Noncurrent [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Contingent Consideration at Purchase Date | 7,108,900 | 7,108,900 |
Consideration Paid | (2,857,143) | (2,050,000) |
Changes in Fair Value | (4,251,757) | (3,807,200) |
Fair Value | 1,251,700 | |
Contingent Consideration | 1,251,700 | |
Brightline Interactive, LLC [Member] | Contingent Consideration Liability Current [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Contingent Consideration at Purchase Date | 1,264,200 | 1,264,200 |
Consideration Paid | ||
Changes in Fair Value | 1,654,739 | 1,693,500 |
Fair Value | 2,918,939 | 2,957,700 |
Contingent Consideration | 2,918,939 | 2,957,700 |
Brightline Interactive, LLC [Member] | Contingent Consideration Liability Noncurrent [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Contingent Consideration at Purchase Date | 6,060,700 | 6,060,700 |
Consideration Paid | ||
Changes in Fair Value | (4,646,018) | (2,807,400) |
Fair Value | 1,414,682 | 3,253,300 |
Contingent Consideration | 1,414,682 | 3,253,300 |
XR Terra, LLC. [Member] | Contingent Consideration Liability Current [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Contingent Consideration at Purchase Date | ||
Consideration Paid | (499,288) | (331,786) |
Changes in Fair Value | 499,288 | 586,077 |
Fair Value | 254,291 | |
Contingent Consideration | 254,291 | |
AUGGD [Member] | Contingent Consideration Liability Current [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Contingent Consideration at Purchase Date | ||
Consideration Paid | (568,571) | |
Changes in Fair Value | 568,571 | |
Fair Value | ||
Contingent Consideration |
FINANCIAL INSTRUMENTS (Details
FINANCIAL INSTRUMENTS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 10 Months Ended | ||||||
Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2024 | Dec. 31, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Jan. 31, 2025 | Jan. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | |
Contingent consideration payable in cash | $ 4,500,000 | |||||||||
Cash discounted at risk-free interest rate | $ 4,500,000 | 4,500,000 | ||||||||
Fair value of common stock | 18,141 | 18,141 | $ 14,702 | |||||||
Sector 5 Digital, LLC [Member] | ||||||||||
Fair value of contingent consideration | 290,000 | $ 1,810,000 | 290,000 | $ 1,810,000 | ||||||
Brightline Interactive, LLC [Member] | ||||||||||
Fair value of contingent consideration | 4,230,000 | 1,010,000 | 4,230,000 | 1,010,000 | ||||||
Fair value of common stock | $ 810,000 | $ 810,000 | ||||||||
XR Terra, LLC. [Member] | ||||||||||
Share price | $ 7 | $ 7 | ||||||||
Fair value of common stock | $ 170,000 | $ 170,000 | ||||||||
Noncash gain | $ 0 | $ 80,000 | ||||||||
XR Terra, LLC. [Member] | Changes Measurement [Member] | ||||||||||
Contingent consideration | $ 130,000 | $ 330,000 | ||||||||
XR Terra, LLC. [Member] | Minimum [Member] | Forecast [Member] | ||||||||||
Company common stock | $ 0 | |||||||||
XR Terra, LLC. [Member] | Maximum [Member] | Forecast [Member] | ||||||||||
Company common stock | $ 1,000,000 | |||||||||
AUGGD, LLC [Member] | Minimum [Member] | Forecast [Member] | ||||||||||
Company common stock | $ 0 | |||||||||
AUGGD, LLC [Member] | Maximum [Member] | Forecast [Member] | ||||||||||
Company common stock | $ 200,000 | |||||||||
Measurement Input, Commodity Market Price [Member] | Sector 5 Digital, LLC [Member] | ||||||||||
Share price | $ 7 | $ 7 | ||||||||
Measurement Input, Commodity Market Price [Member] | Sector 5 Digital, LLC [Member] | Common Stock [Member] | Minimum [Member] | ||||||||||
Company common stock | $ 0 | |||||||||
Measurement Input, Commodity Market Price [Member] | Sector 5 Digital, LLC [Member] | Common Stock [Member] | Minimum [Member] | Forecast [Member] | ||||||||||
Company common stock | $ 0 | |||||||||
Measurement Input, Commodity Market Price [Member] | Sector 5 Digital, LLC [Member] | Common Stock [Member] | Maximum [Member] | Forecast [Member] | ||||||||||
Company common stock | $ 9,700,000 | |||||||||
Measurement Input, Commodity Market Price [Member] | Brightline Interactive, LLC [Member] | ||||||||||
Share price | $ 7 | $ 7 | ||||||||
Measurement Input, Commodity Market Price [Member] | Brightline Interactive, LLC [Member] | Common Stock [Member] | Maximum [Member] | ||||||||||
Company common stock | $ 15,000,000 | |||||||||
Cash reminder | $ 7,500,000 | $ 7,500,000 |
SCHEDULE OF RECONCILIATION OF C
SCHEDULE OF RECONCILIATION OF COST IN EXCESS OF BILLING FOR CONTRACT RECOGNIZED OVER TIME (Details) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Disaggregation of Revenue [Line Items] | ||
Contract assets includes, costs and estimated earnings in excess of billings on uncompleted contracts | $ 72,205 | $ 158,552 |
Contract liabilities includes, billings in excess of costs and estimated earnings on uncompleted contracts | (69,847) | (466,393) |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Cost incurred on uncompleted contracts | 92,287 | 78,771 |
Estimated earnings | 116,941 | 226,096 |
Earned revenue | 209,228 | 304,867 |
Less: billings to date | 176,000 | 311,750 |
Billings in excess of costs, net | 33,228 | (6,883) |
Contract assets includes, costs and estimated earnings in excess of billings on uncompleted contracts | 33,228 | |
Contract liabilities includes, billings in excess of costs and estimated earnings on uncompleted contracts | (6,883) | |
Billings in excess of costs, net | $ 33,228 | $ (6,883) |
DEFERRED COSTS_CONTRACT ASSET_3
DEFERRED COSTS/CONTRACT ASSETS and DEFERRED REVENUE/CONTRACT LIABILITIES (Details Narrative) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 72,205 | $ 158,552 |
Contract with customer liabilities | 69,847 | 466,393 |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 38,977 | 158,552 |
Contract with customer liabilities | 69,847 | 459,510 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 33,228 | |
Contract with customer liabilities | $ 6,883 |
SCHEDULE OF STOCK OPTION FAIR V
SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTION (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | ||||
Weighted average expected terms (in years) | 4 years 10 months 24 days | 6 years | 4 years 10 months 24 days | 6 years |
Weighted average expected volatility | 103.80% | 100.70% | 103.50% | 100.80% |
Weighted average risk-free interest rate | 4.20% | 3.80% | 4.20% | 3.70% |
Expected dividend yield | 0% | 0% | 0% | 0% |
SUMMARY OF STOCK OPTION ACTIVIT
SUMMARY OF STOCK OPTION ACTIVITY (Details) | 1 Months Ended | 9 Months Ended | |
Feb. 29, 2024 shares | Mar. 31, 2024 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | |
Equity [Abstract] | |||
Options outstanding, beginning balance | shares | 6,128,381 | 4,484,616 | |
Weighted average exercise price, outstanding, beginning balance | $ / shares | $ 4.84 | $ 4.68 | |
Weighted average remaining contractual term (Yrs), Outstanding Beginning | 7 years | 7 years | |
Intrinsic value, outstanding Beginning balance | $ | $ 1,676,966 | $ 2,404,249 | |
Options, granted | shares | 21,000 | 1,153,662 | 2,096,933 |
Weighted average exercise price, options granted | $ / shares | $ 2.32 | $ 5.63 | |
Weighted average remaining contractual term (Yrs), options granted | 9 years 9 months 18 days | 9 years 9 months 18 days | |
Intrinsic value, options granted | $ | $ 128,315 | $ 4,862 | |
Options, exercised | shares | (25,000) | (94,932) | |
Weighted average exercise price, options exercised | $ / shares | $ 2 | $ 3.88 | |
Weighted average remaining contractual term (Yrs), options exercised | 2 years 7 months 6 days | 6 years 2 months 12 days | |
Intrinsic value, options exercised | $ | $ 191 | $ 107,426 | |
Options, Forfeited / Cancelled | shares | (828,000) | (3,418,851) | (291,605) |
Weighted average exercise price, options forfeited/Cancelled | $ / shares | $ 4.91 | $ 7.87 | |
Weighted average remaining contractual term (Yrs), options forfeited/Cancelled | 6 years 9 months 18 days | 8 years 8 months 12 days | |
Intrinsic value, options forfeited/Cancelled | $ | $ 88 | $ 16,208 | |
Options outstanding, ending balance | shares | 3,838,192 | 6,195,012 | |
Weighted average exercise price, outstanding, ending balance | $ / shares | $ 4.05 | $ 5.38 | |
Weighted average remaining contractual term (Yrs), Outstanding Ending | 6 years 10 months 24 days | 7 years 10 months 24 days | |
Intrinsic value, outstanding Ending balance | $ | $ 2,005,800 | ||
Options exercisable, ending balance | shares | 2,234,420 | 3,677,049 | |
Weighted average exercise price, exercisable, Ending balance | $ / shares | $ 4.04 | $ 3.91 | |
Weighted average remaining contractual term (Yrs), exercisable, Ending | 5 years 1 month 6 days | 5 years 8 months 12 days | |
Intrinsic value, exercisable Ending balance | $ | $ 2,005,800 |
SCHEDULE OF STOCK OPTION-BASED
SCHEDULE OF STOCK OPTION-BASED EXPENSE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Total | $ 130,769 | $ 844,538 | $ 1,184,091 | $ 2,319,246 |
Research and Development Expense [Member] | ||||
Total | 71,840 | 433,877 | 520,697 | 1,204,934 |
General and Administrative Expense [Member] | ||||
Total | 65,362 | 86,729 | 238,905 | 175,777 |
Selling and Marketing Expense [Member] | ||||
Total | (32,704) | 238,180 | 254,943 | 558,461 |
Cost of Sales [Member] | ||||
Total | 755 | |||
Board Option Expense [Member] | ||||
Total | $ 26,271 | $ 85,752 | $ 169,546 | $ 379,319 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Oct. 03, 2023 | Sep. 28, 2023 | Mar. 31, 2024 | Feb. 29, 2024 | Feb. 28, 2023 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Nov. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Stock issued during period, value, new issues | $ 2,846,144 | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 25,000 | 94,932 | |||||||||
Stock options exercised | $ 66,111 | ||||||||||
Options granted | 21,000 | 1,153,662 | 2,096,933 | ||||||||
Exercise price | $ 2.32 | $ 5.63 | |||||||||
Options vested | 220,000 | ||||||||||
Number of shares cancelled | 828,000 | 3,418,851 | 291,605 | ||||||||
Number of shares vested | 31,000 | ||||||||||
Number of shares non-vested granted | 250,000 | ||||||||||
Options granted, fair value | $ 1,330,000 | $ 7,120,000 | |||||||||
Exercise price | $ 4.05 | $ 5.38 | $ 4.05 | $ 5.38 | $ 4.84 | $ 4.68 | |||||
Remaining term | 7 years | 7 years | |||||||||
Executive Target Options [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Options granted, fair value | $ 8,530,000 | $ 8,530,000 | |||||||||
Employees [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Options granted | 578,000 | ||||||||||
New Options [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Options granted | 250,000 | ||||||||||
2016 Equity Incentive Plan [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Stock issued during period shares | 12,200,000 | 12,200,000 | |||||||||
Shares available for issuance | 5,200,000 | 5,200,000 | |||||||||
Stock options intrinsic value per share | $ 1.12 | $ 3.76 | |||||||||
Unrecognized compensation expense to employees and vendors | $ 3,190,000 | $ 3,190,000 | |||||||||
Share-Based Payment Arrangement, Option [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 9,000 | 42,000 | |||||||||
Stock options exercised | $ 70,000 | ||||||||||
Target Options [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Options granted | 2,100,000 | 2,100,000 | |||||||||
Exercise price | $ 7 | $ 7 | $ 7 | $ 7 | |||||||
Remaining term | 8 years 10 months 24 days | 9 years 10 months 24 days | |||||||||
Target Options [Member] | 2016 Equity Incentive Plan [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Shares available for issuance | 2,100,000 | 2,100,000 | |||||||||
Unrecognized compensation expense to employees and vendors | $ 8,530,000 | $ 8,530,000 | |||||||||
Weighted average period | 2 years 7 days | ||||||||||
Employees [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Number of common stock for services, shares | 391,000 | 80,000 | |||||||||
Share-based compensation | $ 570,000 | $ 330,000 | |||||||||
Board of Directors [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Share-based compensation | $ 110,000 | ||||||||||
Stock issued during period, shares, new issues | 75,000 | ||||||||||
Vendors [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Number of common stock for services, shares | 34,000 | 2,000 | |||||||||
Share-based compensation | $ 90,000 | $ 100,000 | |||||||||
Executive Officer [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Options granted | 2,320,000 | ||||||||||
Exercise price | $ 7 | ||||||||||
Common Stock [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Stock issued during period, shares, new issues | 714,286 | ||||||||||
Stock issued during period, value, new issues | $ 714 | ||||||||||
Number of common stock for services, shares | 1,885,715 | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 15,315 | 8,819 | 41,996 | ||||||||
Common Stock [Member] | Board of Directors [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Number of common stock for services, shares | 258,000 | ||||||||||
Share-based compensation | $ 370,000 | ||||||||||
Number of shares vested | 443,000 | ||||||||||
Common Stock [Member] | Sector 5 Digital, LLC [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Stock issued during period, shares, new issues | 714,000 | 327,000 | |||||||||
Stock issued during period, value, new issues | $ 810,000 | $ 1,360,000 | |||||||||
Common Stock [Member] | XR Terra, LLC. [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Stock issued during period, shares, new issues | 71,000 | 36,000 | |||||||||
Stock issued during period, value, new issues | $ 170,000 | $ 200,000 | |||||||||
Common Stock [Member] | AUGGD [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Stock issued during period, shares, new issues | 107,000 | ||||||||||
Stock issued during period, value, new issues | $ 320,000 | ||||||||||
Contingent acquisition obligation | 570,000 | ||||||||||
Repayment of secured debt | $ 250,000 | ||||||||||
Common Stock [Member] | Brightline Interactive, LLC [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Stock issued during period, shares, new issues | 714,000 | ||||||||||
Stock issued during period, value, new issues | $ 2,850,000 | ||||||||||
Common Stock [Member] | InciteVR [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Stock issued during period, shares, new issues | 71,000 | ||||||||||
Stock issued during period, value, new issues | $ 330,000 | ||||||||||
Common Stock [Member] | PulpoAR, LLC [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Stock issued during period, shares, new issues | 214,000 | ||||||||||
Stock issued during period, value, new issues | $ 730,000 | ||||||||||
Securities Purchase Agreement [Member] | Common Stock [Member] | Minimum [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Reprice per share | $ 14.63 | ||||||||||
Securities Purchase Agreement [Member] | Common Stock [Member] | Maximum [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Reprice per share | $ 1.75 | ||||||||||
Securities Purchase Agreement [Member] | Warrant [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Warrants tp purchase common stock, shares | 750,000 | ||||||||||
Investor [Member] | Securities Purchase Agreement [Member] | Common Stock [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Sale of stock, shares | 1,885,715 | ||||||||||
Sale of stock | $ 3,300,000 | ||||||||||
Sale of stock, per share | $ 1.75 | ||||||||||
Net proceeds | $ 2,970,000 |
SCHEDULE OF COMPUTATION OF BASI
SCHEDULE OF COMPUTATION OF BASIC AND DILUTED NET LOSS PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (1,542,256) | $ (5,222,598) | $ (2,400,066) | $ (9,296,960) |
Weighted-average common shares outstanding for basic net loss per share | 17,195,322 | 14,093,597 | 16,194,523 | 13,727,595 |
Weighted-average common shares outstanding for diluted net loss per share | 17,195,322 | 14,093,597 | 16,194,523 | 13,727,595 |
Basic net loss per share | $ (0.09) | $ (0.37) | $ (0.15) | $ (0.68) |
Diluted net loss per share | $ (0.09) | $ (0.37) | $ (0.15) | $ (0.68) |
SCHEDULE OF ANTI_DILUTIVE POTEN
SCHEDULE OF ANTI_DILUTIVE POTENTIALLY DILUTIVE SECURITIES (Details) - shares | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 6,775,692 | 9,012,512 |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 5,938,192 | 8,175,012 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 837,500 | 837,500 |
LOSS PER SHARE (Details Narrati
LOSS PER SHARE (Details Narrative) - shares | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options | 6,775,692 | 9,012,512 |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options | 5,938,192 | 8,175,012 |
Share-Based Payment Arrangement, Option [Member] | Target Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options | 2,100,000 | 1,980,000 |
SCHEDULE OF UNDISCOUNTED LEASE
SCHEDULE OF UNDISCOUNTED LEASE PAYMENTS (Details) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
2024 (remaining 3 months) | $ 122,000 | |
2025 | 388,000 | |
2026 | 177,000 | |
Total future minimum lease commitments, including short-term leases | 687,000 | |
Less: future minimum lease payments of short -term leases | (23,000) | |
Less: imputed interest | (39,000) | |
Present value of future minimum lease payments, excluding short term leases | 625,000 | |
Current portion of operating lease liabilities | 413,237 | $ 405,948 |
Non-current portion of operating lease liabilities | 211,638 | $ 423,454 |
Total operating lease liability | $ 625,000 |
SCHEDULE OF CONTINGENT CONSIDER
SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS (Details) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Asset Acquisition [Line Items] | ||
Subtotal current portion | $ 2,918,939 | $ 5,120,791 |
BLI, net of current portion | 1,414,682 | 4,505,000 |
Total contingent consideration for acquisitions | 4,333,621 | 9,625,791 |
Sector 5 Digital, LLC [Member] | ||
Asset Acquisition [Line Items] | ||
Subtotal current portion | 1,908,800 | |
BLI, net of current portion | 1,251,700 | |
Brightline Interactive, LLC [Member] | ||
Asset Acquisition [Line Items] | ||
Subtotal current portion | 2,918,939 | 2,957,700 |
BLI, net of current portion | 1,414,682 | 3,253,300 |
XR Terra, LLC. [Member] | ||
Asset Acquisition [Line Items] | ||
Subtotal current portion | $ 254,291 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Payments for rent | $ 460,000 | $ 460,000 | |||
Weighted average remaining lease term | 1 year 2 months 26 days | 1 year 2 months 26 days | |||
Weighted average discount rate | 8.37% | 8.37% | |||
Operating lease rent expense | $ 210,000 | $ 130,000 | $ 350,000 | $ 410,000 | |
Fair value of bonus | $ 0 | $ 550,000 | |||
Common Stock [Member] | |||||
Fair value of bonus | $ 360,000 |