INTANGIBLE ASSETS

9 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 5. INTANGIBLE ASSETS

Intangible assets, their respective amortization period, and accumulated amortization at March 31, 2023 are as follows:

	As of March 31, 2023
	Value ($)																		Amortization Period (Years)
	XR Terra			S5D			PulpoAR			BLI			inciteVR			Total
Intangible Assets
Customer Relationships	$	-		$	2,820,000		$	-		$	3,310,000		$	-		$	6,130,000		3 -5
Technology		300,000			-			925,000			880,000			326,435			2,431,435		3
Less: Accumulated Amortization		(149,994	)		(658,000	)		(256,940	)		(636,890	)		(45,340	)		(1,747,164	)
Intangible Assets, net	$	150,006		$	2,162,000		$	668,060		$	3,553,110		$	281,095		$	6,814,271

Intangible asset amortization expense for the three and nine months ended March 31, 2023 was approximately $0.55 and $ 1.54 million, respectively.

Intangible asset amortization expense for the three and nine months ended March 31, 2022 was approximately $0.16 and $ 0.25 million, respectively.

Estimated intangible asset amortization expense for the remaining lives are as follows:

Remaining Fiscal Year Ended June 30, 2023	$	509,000
Fiscal Year Ended June 30, 2024	$	2,036,000
Fiscal Year Ended June 30, 2025	$	1,936,000
Fiscal Year Ended June 30, 2026	$	1,287,000
Fiscal Year Ended June 30, 2027	$	991,000
Fiscal Year Ended June 30, 2028	$	55,000

AUGGD

During the three months ended March 31, 2023, primarily due to a lack of market traction, a decision was made by the Company to cease the operations of its wholly owned subsidiary MotionZone, LLC (dba “AUGGD”) and divest any related assets and potential liabilities. The assets of AUGGD were originally acquired by the Company in August 2021. The assets of AUGGD were deemed worthless with no future benefit at March 31, 2023. The assets were transferred to a new independent entity, majority owned by the original sellers of AUGGD, in return for a 19.99% interest in said new entity (see Note 12). The Company will account for this investment at cost ($0) because the Company does not control or have significant influence over the investment. If the new entity achieves certain revenue goals through December 31, 2024, as defined, the majority owners will receive payments in the form of Company common stock. The Company considers this occurrence as remote, and no provision is made for it.

Accordingly, the net book value of intangible assets, including goodwill, originally recorded at the time of purchase of AUGGD, were written off as of March 31, 2023. The $0.48 million write-off (consisting of customer relationships and technology with net book values of $0.11 million and $0.12 million, respectively, and goodwill of $0.25 million) is recorded as intangible asset impairment on the consolidated statement of operations for the three and nine months ended March 31, 2023.

For the three and nine months ended March 31, 2023, AUGGD had less than $0.01 million of revenue and expenses of approximately $0.09 million and $0.40 million, respectively (exclusive of the intangible asset write off).

THE GLIMPSE GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

MARCH 31, 2023 AND 2022