The Glimpse Group Strategic Update Letter - Calendar Year 2026

Rhea-AI Summary

The Glimpse Group (NASDAQ:VRAR) provided a strategic update for calendar year 2026 focused on unlocking shareholder value through a potential spinout/IPO of Brightline Interactive (BLI), growth in Immersive Technologies led by Foretell Ai, and selective capital and M&A flexibility.

BLI filed initial registration documents with Lucid Capital Markets and the company aims to complete an IPO in H1 CY'26 (subject to SEC review and market conditions) while also pursuing private spin-out alternatives. Glimpse reports cash sufficient for 12+ months, a debt-free capital structure, and an S-3/ATM facility in place but not planned for near-term use at current valuation.

Positive

• Filed initial registration for BLI IPO with Lucid Capital Markets
• Cash runway sufficient for the next 12+ months
• No debt, no converts, no preferred stock
• Foretell Ai new contract with a NYC higher education institution

Negative

• BLI IPO not guaranteed and subject to SEC review and market conditions
• Use of S-3/ATM not planned at current valuation

Key Figures

Shelf capacity $100,000,000 Maximum aggregate offering under S-3 shelf registration

ATM program size $3,502,910 Common stock ATM under S-3 shelf

Debt balance $0 Company statement of no debt outstanding

FY25 revenue $10.5 million Fiscal year 2025 revenue, up 20% vs FY24

Q1 FY26 revenue $1.40 million Quarter ended Sep 30, 2025, down 43% YoY

Cash & equivalents $5.56 million Balance as of Sep 30, 2025 (Q1 FY26 10-Q)

Price change 13.14% VRAR move over the last 24 hours pre‑news

52-week range $0.7705 – $3.07 Low and high before this announcement

Market Reality Check

$1.10 Last Close

Volume Volume 337,472 is about 2.35x the 20-day average of 143,332, indicating heightened interest pre‑announcement. high

Technical Shares at $1.02 are trading below the 200-day MA of $1.34 and remain 66.78% under the 52-week high.

Peers on Argus 1 Down

Peer moves are mixed, with names like MOGO and DVLT up while CSAI, INTZ and MSAI are down. Only DVLT appears in momentum scans, moving down, suggesting VRAR’s 13.14% gain is stock-specific rather than a sector-wide rotation.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 16	AI partnership deal	Positive	-4.6%	Six-figure Foretell Ai LLM infrastructure contract with NYC higher-education client.
Nov 13	Earnings release	Negative	-6.5%	Q1 FY26 revenue down 43% YoY with wider adjusted EBITDA loss despite strong margins.
Nov 07	Earnings date notice	Neutral	+0.8%	Announcement of timing and access details for upcoming Q1 FY26 results call.
Oct 27	BLI IPO initiative	Positive	+5.7%	Launch of IPO/spin-off process for Brightline Interactive with Lucid engagement.
Sep 30	Full-year earnings	Positive	-9.4%	FY25 revenue growth, near break-even cash flow, and plan to spin off BLI.

Pattern Detected

News reactions have been mixed: strategic and spin-off updates sometimes sold off despite positive framing, while clearly negative earnings generally saw aligned declines.

Recent Company History

Over the past few months, Glimpse reported FY25 revenue of $10.5M with improved cash flow and announced plans to spin off Brightline Interactive. Subsequent earnings showed Q1 FY26 revenue of $1.40M, down 43% YoY, and the IPO/spin-off process for BLI advanced with Lucid Capital Markets. A December Foretell Ai LLM contract highlighted growing immersive demand. Today’s 2026 strategic letter extends these themes around BLI separation, Foretell Ai traction, and capital flexibility.

Regulatory & Risk Context

Active S-3 Shelf Registration 2025-11-21

$100,000,000 registered capacity

An effective S-3 shelf filed on 2025-11-21 allows Glimpse to issue up to $100,000,000 in various securities, including an ATM program of up to $3,502,910 in common stock. Usage count is 0, indicating no takedowns yet, but the facility provides flexibility to raise capital for working capital and corporate purposes.

Market Pulse Summary

The stock moved +7.8% in the session following this news. A strong positive reaction aligns with management’s emphasis on unlocking value via a Brightline Interactive spin-out and growing Foretell Ai traction. Shares at $1.02 still sit well below the $3.07 52-week high, and a $100,000,000 shelf with a $3,502,910 ATM provides future financing optionality. Past divergence on good news suggests investors should monitor follow-through and any eventual shelf usage.

Key Terms

digital twins technical

"enable real-time operational orchestration and training of digital twins, robotics, drones"

Digital twins are virtual replicas of physical objects, systems, or processes that simulate their real-world counterparts in real time. They allow users to monitor, analyze, and predict how the actual entity will behave under different conditions. For investors, digital twins can provide valuable insights into performance and potential risks, helping to make better-informed decisions.

Spatial Computing technical

"Immersive Technology, Spatial Computing and Artificial Intelligence ("AI") driven software"

Spatial computing is the set of technologies that lets computers understand, map and interact with the physical world so digital content can be placed and controlled in real space—think of it as a layer of digital information that sits on top of your surroundings like a smart map you can touch and walk through. Investors care because it creates new products, services and sales channels across hardware, software and services, and can transform how people work, shop and consume media, opening potential for sustained revenue growth.

Large Language Model ("LLM") technical

"for the design, deployment and integration of a local Large Language Model ("LLM") infrastructure"

A large language model ("LLM") is a type of advanced software that has learned patterns of human language by analyzing vast amounts of text, allowing it to generate, summarize, or respond to written information much like a very fast, context-aware assistant. Investors care because LLMs can lower costs, speed product development, automate customer interactions, and create new revenue streams, while also introducing risks around accuracy, compliance, and reputation that can affect a company’s performance.

ATM facility financial

"The Company recently put in place an S3 and ATM facility."

An ATM facility (short for “at‑the‑market” facility) is a way for a company to raise money by selling newly issued shares directly into the open market at prevailing prices through an intermediary. Think of it like selling slices of a pie one at a time at whatever buyers are willing to pay; it gives the company flexible, on‑demand access to cash but can increase the number of shares outstanding and put downward pressure on the stock price, which matters to investors' ownership and per‑share value.

AI-generated analysis. Not financial advice.

NEW YORK, NY / ACCESS Newswire / January 7, 2026 / The Glimpse Group, Inc. ("Glimpse") (NASDAQ:VRAR), a diversified Immersive Technology platform company providing enterprise-focused Immersive Technology, Spatial Computing and Artificial Intelligence ("AI") driven software and services, provided a strategic update as we begin calendar year 2026 ("CY '26").

Business Commentary by President & CEO Lyron Bentovim

Strategic Update:

For CY '26, we are focused on the following key strategic items, all aimed at unlocking shareholder value - which we strongly believe is not reflected in the Company's current equity valuation:

Brightline Interactive ("BLI") Spinout/IPO:

• BLI's solutions, via its SpatialCore software platform, enable real-time operational orchestration and training of digital twins, robotics, drones and autonomous systems, primarily in the Defense Tech/AI software segment.

• As previously discussed, we are actively in the process of potentially IPOing BLI as its own independent, Nasdaq listed company - a PURE PLAY, standalone, well capitalized provider of Physical AI, Spatial Computing, Cloud-based, Operational Simulation Middleware to the Department of War ("DoW") and Big Data enterprises.

• We engaged Lucid Capital Markets as our investment banking partner and have recently filed the initial registration documents with the regulatory bodies.

• Our goal is to complete the potential BLI IPO in the first half of CY '26 and we believe that we are on track to meet this goal (subject to SEC review process timing and market conditions). However, while we continue to be on track, there is no guarantee that an IPO of BLI will come to fruition.

• As such, in parallel to the BLI IPO path, we are also exploring multiple private company spin-out alternatives for BLI. These include active discussions with various strategic players and investors in the Defense Tech/AI software segment.

• We are committed to exploring all paths that could maximize the opportunity for BLI to succeed while creating value for Glimpse shareholders.

Immersive Technologies:

• Our core Immersive businesses are increasingly driven by traction in our Foretell Ai (AI roleplay Immersive simulation) software product.

• Foretell Ai provides intelligent, conversational simulations in Immersive environments, and has been gaining traction in both the Education and Healthcare segments. While early in its commercialization, the level of Enterprise interest in Foretell Ai and the accelerating pace of new licenses and annual license renewals is encouraging. Our goal is for Foretell Ai to eventually become a foundational base for Glimpse's Immersive revenues.

• As an example, we recently entered into a contract with a NYC based higher education institution for the design, deployment and integration of a local Large Language Model ("LLM") infrastructure, specifically configured to run Foretell AI in Immersive environments that will be utilized across a variety of campus and community systems and programs.

Glimpse Add-Ons:

• Once we divest BLI and as we continue to grow our Immersive business, we will be well positioned to explore strategic, non-organic transactions that could enhance our current offerings, open up new markets and potentially create significant value for our shareholders.

• There is a significant universe of exciting private technology companies, from early stage to well established, that may be interested in joining Glimpse and benefiting from our Nasdaq listed status in order to create liquidity and value for their shareholders in an accelerated manner.

• We are reviewing such potential alternatives and may look to transact on these in CY '26 once we have successfully spun-out BLI.

Capital:

• Glimpse's current cash balance is expected to be sufficient for the next 12 months+.

• We continue to maintain a healthy and clean capital structure, with no debt, no converts, no prefs or material obligations.

• The Company recently put in place an S3 and ATM facility. There is no intent to utilize these in the foreseeable future and not at the current valuation. However, these are important and cost-effective tools for a publicly traded company to have in place in case potential opportunities arise.

Thank you for your interest and support.

I wish you all a successful and healthy 2026!

Lyron Bentovim
President and CEO
The Glimpse Group, Inc.

About The Glimpse Group, Inc.
The Glimpse Group (NASDAQ:VRAR) is a diversified Immersive technology platform company, providing enterprise-focused Immersive Technology, Spatial Computing and AI driven software & services. 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. For more information on The Glimpse Group, please visit www.theglimpsegroup.com

Safe Harbor Statement
This press release is being made pursuant to, and in accordance with, Rule 135 under the Securities Act of 1933, as amended (the "Securities Act"), and shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act and other applicable securities laws. This press release may contain certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements, if provided, are based on information available to the Company as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business. Forward-looking statements, if provided, include statements regarding our expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "view," "could," "estimate," "expect," "intend," "may," "should," and "would" or similar words. All forecasts, if provided, are based on information available at this time and management expects that internal projections and expectations may change over time. In addition, any forecasts, if provided, are entirely on management's best estimate of our future financial performance given our current contracts, current backlog of opportunities and conversations with new and existing customers about our products and services. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.

Company Contact:
Maydan Rothblum
CFO & COO
The Glimpse Group, Inc.
(917) 292-2685
maydan@theglimpsegroup.com

SOURCE: The Glimpse Group, Inc.

View the original press release on ACCESS Newswire

FAQ

What did The Glimpse Group (VRAR) announce on January 7, 2026 about Brightline Interactive?

The company said it filed initial registration documents with Lucid Capital Markets and is targeting a potential BLI IPO in H1 CY'26, while also exploring private spin-out alternatives.

How does the potential BLI IPO affect VRAR shareholders in 2026?

Glimpse expects the BLI spinout or IPO to unlock shareholder value, though it cautioned an IPO is subject to SEC review and market conditions and is not guaranteed.

What is Glimpse's cash and capital position reported in the January 7, 2026 update?

The company stated its cash balance is expected to be sufficient for the next 12+ months and it maintains a debt-free capital structure with an S-3/ATM facility in place.

What progress did VRAR report for its Foretell Ai product in the January 7, 2026 update?

Glimpse said Foretell Ai is gaining enterprise traction, with accelerating licenses and renewals and a recent contract to deploy a local LLM for Foretell Ai at a NYC higher education institution.

Will Glimpse use the S-3/ATM facility now after the January 7, 2026 update?

The company indicated there is no intent to utilize the S-3/ATM in the foreseeable future and not at the current valuation.