XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.24.1.1.u2

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 shares of common stock for approximately $3.30 million (at $1.75 per share). The Company realized net proceeds (after underwriting, professional fees and listing expenses) of $2.97 million on October 3, 2023. The SPA shares were issued on October 3, 2023. Simultaneously, the exercise price on warrants to purchase 750,000 shares of common stock originally issued pursuant to a SPA entered into in November 2021 were repriced from $14.63 per share to $1.75 per share. 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 shares of common stock, with a fair value of approximately $0.81 million, to satisfy a contingent acquisition obligation for the achievement of a certain revenue performance milestone related to the acquisition of S5D. In addition, the Company issued approximately 71,000 shares of common stock, with a fair value of approximately $0.17 million, to satisfy a contingent acquisition obligation for the achievement of revenue performance milestones by XRT. During the nine months ended March 31, 2023, the Company issued approximately 327,000 shares of common stock, valued at $1.36 million, for the achievement of a revenue performance milestone by S5D and approximately 36,000 shares of common stock, valued at $0.20 million, for the achievement of a revenue performance milestone by XRT. In addition, the Company issued approximately 107,000 shares of common stock, with a fair value of approximately $0.32 million, to satisfy a contingent acquisition obligation of approximately $0.57 million less the repayment of a secured promissory note of $0.25 million, related to the acquisition of AUGGD. Common stock issued to Employees as Compensation During the nine months ended March 31, 2024, the Company issued approximately 391,000 shares of common stock to various employees as compensation (including contractual bonus payments upon achievement of defined revenue milestones) and recorded share-based compensation of approximately $0.57 million. During the nine months ended March 31, 2023, the Company issued approximately 80,000 shares of common stock to various employees as compensation and recorded share-based compensation of approximately $0.33 million. Common stock issued to Board of Directors During the nine months ended March 31, 2024, the Company issued approximately 258,000 shares of common stock to certain board members in return for canceling 443,000 fully vested stock options, and recorded share-based board compensation of approximately $0.37 million. In addition, the Company issued 75,000 shares of common stock to certain board members as calendar year 2024 compensation and recorded share-based board compensation of approximately $0.11 million. 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 and 2,000 shares of common stock, respectively, to various vendors for services performed and recorded share-based compensation of approximately $0.09 million and $0.1 million, respectively. Common stock issued for Business Acquisition and Asset Acquisition - Technology During the nine months ended March 31, 2023, the Company issued approximately: 714,000 shares of common stock, valued at $2.85 million, as consideration for the acquisition of BLI; 71,000 shares of common stock valued at $0.33 million, per the assignment agreement with inciteVR; and 214,000 shares of common stock, valued at $0.73 million, as consideration for the acquisition of Pulpo (see Note 4). 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 million stock options as a long-term incentive. The options have an exercise price of $7.00 per share. 0.22 million of these options vest ratably over four years (“Initial Options”). The remainder (“Target Options”) vest in fixed amounts based on achieving various revenue or common stock prices within seven years of grant date. Given the Company’s current stock price and revenue, the Company views the achievement of the milestones that would trigger vesting of the Target Options as remote. Equity Incentive Plan The Company’s 2016 Equity Incentive Plan (the “Plan”), as amended, has approximately 12.2 million common shares reserved for issuance. As of March 31, 2024, there were approximately 5.2 million shares available for issuance under the Plan. The shares available are after the granting of 2.1 million shares of executive Target Options. 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 March 31, |  |  | For the Nine Months Ended March 31, |
|  | 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 employee options in February 2024 and granted approximately 578,000 new options to employees in March 2024. In addition, this offer was completed for a board member and approximately 31,000 vested options were cancelled and approximately 21,000 new options were granted. Also, in February 2024, 250,000 primarily non-vested options granted to an executive were cancelled and 250,000 new options were granted in March 2024 at a lower exercise price and a new vesting schedule of approximately four years. 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 million and $7.12 million, respectively. Fair value of the executive Target Options was approximately $8.53 million. 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 granted, $7.00 exercise price, 8.9 remaining term in years, no intrinsic value. Vesting of these is considered remote.
|  |  |  |  | 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 granted, $7.00 exercise price, 9.9 remaining term in years, no intrinsic value. Vesting of these is considered remote. 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 per share and $3.76 per share, respectively. 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 million (excluding executive Target Options of $8.53 million) and is expected to be recognized over a weighted average period of 2.02 years (which excludes the executive Target Options).

X
- References No definition available. + Details
Name: | us-gaap_EquityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481112/505-10-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481112/505-10-50-13 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481112/505-10-50-14 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 235 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477968/946-235-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 235 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477968/946-235-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478448/946-505-50-6 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-6 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480008/505-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481112/505-10-50-13 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481112/505-10-50-13 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481112/505-10-50-13 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481112/505-10-50-14 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481112/505-10-50-14 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 16 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481112/505-10-50-16 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 18 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481112/505-10-50-18 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 18 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481112/505-10-50-18 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 18 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481112/505-10-50-18 + Details
Name: | us-gaap_StockholdersEquityNoteDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration