NOTE 9. DEFERRED COSTS AND DEFERRED REVENUE

 

As of June 30, 2025 and 2024, deferred costs totaling $48,971 and $170,781, respectively, consists of costs deferred under contracts not completed and recognized at a point in time ($48,971 and $135,057, respectively), and costs in excess of billings under contracts not completed and recognized over time ($0 and $35,724, respectively). As of June 30, 2025 and 2024, deferred revenue, totaling $52,576 and $72,788, respectively, consists of revenue deferred under contracts not completed and recognized at a point in time.

 

The following table shows the net activity of deferred cost and deferred revenue for the years ended June 30, 2025 and 2024:

   

   2025   2024 
   As of and for the Years ended June 30, 
   2025   2024 
         
Deferred costs - beginning of year  $170,781   $158,552 
Deferred cost recognized as cost of goods sold during year  $(170,781)   (158,552)
Costs incurred and not yet recognized as cost of goods sold  $48,971    170,781 
Deferred cost - end of year  $48,971   $170,781 
           
Deferred revenue - beginning of year  $72,788   $466,393 
Deferred revenue recognized as revenue during year  $(72,788)   (466,393)
Payments received and not yet recognized as revenue  $52,576    72,788 
Deferred revenue - end of year  $52,576   $72,788 

 

 

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

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.