NOTE 7. GOODWILL AND INTANGIBLE ASSETS

 

The composition of goodwill as of June 30, 2025 and 2024 is as follows:

 

   As of June 30, 2025 
   XRT   BLI   Total 
Goodwill  $300,000   $10,557,600   $10,857,600 

 

   XRT   PulpoAR   BLI   Total 
   As of and for the Year ended June 30, 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 year  $300,000   $-   $10,557,600   $10,857,600 

 

The composition of Intangible assets, their respective amortization period, and accumulated amortization as of June 30, 2025 and 2024 are as follows:

   

   XR Terra   BLI   Glimpse Learning   Total     
   As of June 30, 2025 
   Value ($)   Amortization Period (Years) 
   XR Terra   BLI   Glimpse Learning   Total     
Intangible Assets                         
Technology   300,000    880,000    326,435    1,506,435    3 
Less: Accumulated Amortization   (300,000)   (855,542)   (290,176)   (1,445,718)     
Intangible Assets, net  $-   $24,458   $36,259   $60,717      

 

   XR Terra   Pulpo   BLI   Glimpse Learning   Total     
   As of and for the Year ended June 30, 2024 
   Value ($)   Amortization Period (Years) 
   XR Terra   Pulpo   BLI   Glimpse Learning   Total     
Intangible Assets                              
Customer Relationships - beginning of year  $-   $-   $3,310,000   $-   $3,310,000    5 
Customer Relationships - impairment   -     -     (3,310,000)   -     (3,310,000)     
Customer Relationships - end of year   -    -    -    -    -      
Technology - beginning of year   300,000    925,000    880,000    326,435    2,431,435    3 
Technology impairment   -    (925,000)   -    -    (925,000)     
Technology - end of year   300,000    -    880,000    326,435    1,506,435      
Less: Accumulated Amortization   (274,995)   -    (562,214)   (181,359)   (1,018,568)     
Intangible Assets, net  $25,005   $-   $317,786   $145,076   $487,867      

 

Intangible asset amortization expense for the years ended June 30, 2025 and 2024 was approximately $0.43 million and $1.24 million, respectively.

 

Estimated intangible asset amortization expense as of June 30, 2025 for the remaining lives are as follows:

 

Years Ended June 30,    
2026  $60,717 

 

 

THE GLIMPSE GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

Historical Timeline

Fiscal YearFiled
2025Sep 29, 2025Showing above
2024Sep 30, 2024
2023Sep 28, 2023
2022Sep 28, 2022
2021Sep 28, 2021

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.