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FINANCIAL INSTRUMENTS | 6 Months Ended
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Dec. 31, 2022
Investments, All Other Investments [Abstract] |
FINANCIAL INSTRUMENTS | NOTE 6. FINANCIAL INSTRUMENTS Cash and Cash Equivalents and Investments The Company’s money market funds and investments (short term, investment grade corporate bonds) are categorized as Level 1 within the fair value hierarchy. As of December 31 and June 30, 2022, the Company’s cash and cash equivalents and investments were as follows: SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS
|  | As of December 31, 2022 |
|  | Cost |  |  | Unrealized Gain (Loss) |  |  | Fair Value |  |  | Cash and Cash Equivalents |  |  | Investments |
Cash |  | $ | 611,626 |  |  | $ | - |  |  |  |  |  |  | $ | 611,626 |  |  |  |  |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  |  | 6,593,096 |  |  |  | - |  |  |  | 6,593,096 |  |  |  | 6,593,096 |  |  |  |  |
Total cash and cash equivalents |  | $ | 7,204,722 |  |  | $ | - |  |  | $ | 6,593,096 |  |  | $ | 7,204,722 |  |  |  |  |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  | $ | 241,595 |  |  | $ | (5,019 | ) |  | $ | 236,576 |  |  |  |  |  |  | $ | 236,576 |
|  | As of June 30, 2022 |
|  | Cost |  |  | Unrealized Gain (Loss) |  |  | Fair Value |  |  | Cash and Cash Equivalents |  |  | Investments |
Cash |  | $ | 1,233,608 |  |  | $ | - |  |  |  |  |  |  | $ | 1,233,608 |  |  |  |  |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  |  | 15,016,058 |  |  |  | - |  |  |  | 15,016,058 |  |  |  | 15,016,058 |  |  |  |  |
Total cash and cash equivalents |  | $ | 16,249,666 |  |  | $ | - |  |  | $ | 15,016,058 |  |  | $ | 16,249,666 |  |  |  |  |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  | $ | 245,187 |  |  | $ | (5,873 | ) |  | $ | 239,314 |  |  |  |  |  |  | $ | 239,314 |
Contingent Consideration As of December 31 and June 30, 2022, the Company’s contingent consideration liabilities related to acquisitions are categorized as Level 3 within the fair value hierarchy. Contingent consideration was valued at the time of acquisitions and at December 31 and June 30, 2022 using unobservable inputs and have included using the Monte Carlo simulation model. This model incorporates revenue volatility, internal rate of return, and risk-free rate. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management with the assistance of a third-party valuation specialist. As of December 31, 2022, the Company’s contingent consideration liabilities current and non-current balances were as follows: SCHEDULE OF FAIR VALUE OF CONTINGENT CONSIDERATION
|  | As of December 31, 2022 |
|  | Contingent Consideration at Purchase Date |  |  | Changes in Fair Value |  |  | Fair Value |  |  | Contingent Consideration |
Level 3: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration, current - S5D |  | $ | 2,060,300 |  |  | $ | (1,437,000 | ) |  | $ | 623,300 |  |  | $ | 623,300 |
Contingent consideration, current - BLI |  |  | 1,841,100 |  |  |  | (870,700 | ) |  |  | 970,400 |  |  |  | 970,400 |
Total contingent consideration, current portion |  | $ | 3,901,400 |  |  | $ | (2,307,700 | ) |  | $ | 1,593,700 |  |  | $ | 1,593,700 |
Level 3: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration, non-current - S5D |  | $ | 7,108,900 |  |  | $ | (2,238,400 | ) |  | $ | 4,870,500 |  |  | $ | 4,870,500 |
Contingent consideration, non-current - BLI |  |  | 4,297,900 |  |  |  | (707,300 | ) |  |  | 3,590,600 |  |  |  | 3,590,600 |
Total contingent consideration, net of current portion |  | $ | 11,406,800 |  |  | $ | (2,945,700 | ) |  | $ | 8,461,100 |  |  | $ | 8,461,100 |
THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2022 AND 2021 A summary of the quantitative significant inputs used to value S5D’s contingent consideration as of December 31, 2022 was: revenue volatility of 61.4%, weighted average cost of capital discount rate of 15.8% and risk-free rate of 4.4%. The market price of the Company’s common stock as of December 31, 2022 and revenue projections were also used. A summary of the quantitative significant inputs used to value BLI’s contingent consideration as of December 31, 2022 was: revenue volatility of 70.8%, weighted average cost of capital discount rate of 15.5% and risk-free rate of 4.3%. The market price of the Company’s common stock as of December 31, 2022 and revenue projections were also used. The change in fair value of contingent consideration for the three and six months ended December 31, 2022 was a gain of approximately $5.43 and $2.82 million, respectively, included as change in fair value of acquisition contingent consideration in the consolidated statements of operations. This was driven by a decrease in the Company’s common stock price between the measurement dates and revisions to revenue projections. As of June 30, 2022, the Company’s contingent consideration liabilities current and non-current balances were as follows:
|  | As of June 30, 2022 |
|  | Contingent Consideration at Purchase Date |  |  | Changes in Fair Value |  |  | Fair Value |  |  | Contingent Consideration |
Level 3: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration, current - S5D |  | $ | 2,060,300 |  |  | $ | (662,700 | ) |  | $ | 1,397,600 |  |  | $ | 1,397,600 |
Contingent consideration, current - AUGGD |  |  | - |  |  |  | 568,571 |  |  |  | 568,571 |  |  |  | 568,571 |
Total contingent consideration, current |  | $ | 2,060,300 |  |  | $ | (94,129 | ) |  | $ | 1,966,171 |  |  | $ | 1,966,171 |
Level 3: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration, non-current - S5D |  | $ | 7,108,900 |  |  | $ | (1,768,100 | ) |  | $ | 5,340,800 |  |  | $ | 5,340,800 |
THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2022 AND 2021 A summary of the quantitative significant inputs used to value S5D’s contingent consideration as of June 30, 2022 was: revenue volatility of 60.1%, weighted average cost of capital discount rate of 15.1% and risk-free rate of 3.0%. The market price of the Company’s common stock as of June 30, 2022 was also used. As of June 30, 2022, the Company’s contingent consideration liability related to MotionZone, LLC (“AUGGD”) is categorized as Level 3 within the fair value hierarchy as it is based on contractual amounts pursuant to the acquisition agreement, of which certain inputs are unobservable. The was no change in fair value of contingent consideration for the three and six months ended December 31, 2021.

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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