Glimpse Group, Inc. Debt Disclosure
NOTE 9. DEBT
Convertible Promissory Notes
At July 1, 2021 the Company had outstanding convertible promissory notes totalling approximately $1.43 million (net of original issue discount of approximately $0.16 million). The notes bore interest at 10% per annum.
All outstanding amounts on the notes at the time of the Company’s IPO were automatically converted to Company common stock at primarily $/share and no further obligations existed. See Note 10.
The Company recorded a loss, during the year ended June 30, 2022, on conversion of the notes of approximately $0.28 million at time of the IPO, representing unamortized original issue discount and prepaid interest.
Paycheck Protection Program Loan
In March 2022 the Small Business Administration forgave principal and interest on a $0.62 million Paycheck Protection Program loan to the Company. The forgiveness is recorded in other income (expense) on the consolidated statements of operations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Sep 28, 2023 | Showing above |
| 2022 | Sep 28, 2022 | |
| 2021 | Sep 28, 2021 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.