Financial Analysis

NOTE 15. COMMITMENTS AND CONTINGENCIES Lease Costs The Company made cash payments for all operating leases for the years ended June 30, 2026 and 2025, of approximately $ 0.22 million and $ 0.27 million, respectively, which were included in net cash used in operating activities within the consolidated statements of cash flows. As of June 30, 2026, the Companys operating leases have a weighted average remaining lease term of 0.58 years and weighted average discount rate of 8.44 %. The total rent expense for all operating leases for the years ended June 30, 2026 and 2025, was approximately $ 0.21 million and $ 0.29 million, respectively. Lease Commitments The Company has two operating leases for its offices. These existing leases have remaining lease terms ranging from approximately 0.34 to 0.58 years. Certain lease agreements contain options to renew, with renewal terms that generally extend the lease terms by 1 to 3 years for each option. Lease renewals have not been determined at this time. Future approximate undiscounted lease payments for the Companys operating lease liabilities and a reconciliation of these payments to its operating lease liabilities as of June 30, 2026 are as follows: SCHEDULE OF UNDISCOUNTED LEASE PAYMENTS Year Ended June 30, 2027 $ 144,708 Total future minimum lease commitments, including short-term leases 144,708 Less: future minimum lease payments of short -term leases (21,000 ) Less: imputed interest (3,816 ) Present value of future minimum lease pay …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The timing of revenue recognition for the years ended June 30, 2026 and 2025 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION 2026 2025 For the Years Ended June 30, 2026 2025 Products and services transferred at a point in time $ 75,025 $ 5,264,282 Products and services transferred/recognized over time 247,954 2,404 Total revenue $ 322,979 $ 5,266,686

DisaggregationOfRevenueTableTextBlock

NOTE 13. PROVISION FOR INCOME TAXES The components of loss before provision for income taxes for the years ended June 30, 2026 and 2025 were as follows: SCHEDULE OF COMPONENT OF PROVISION FOR INCOME TAXES 2026 2025 For the Years Ended June 30, 2026 2025 Loss subject to domestic income taxes $ (15,426,033 ) $ (1,221,400 ) Loss subject to foreign income taxes - - Total loss $ (15,426,033 ) $ (1,221,400 ) The Company recorded no provision for foreign income taxes for the years ended June 30, 2026 and 2025. There was no current or deferred income tax provision for the years ended June 30, 2026 and 2025. A reconciliation of the expected tax provision at the statutory federal income tax rate to the Companys recorded tax provision consisted of the following, subsequent to the adoption of ASU 2023-09: SCHEDULE OF STATUTORY FEDERAL INCOME TAX RATE Amount Percent For the Year Ended June 30, 2026 Amount Percent Computed expected tax benefit at U.S. federal tax statutory rate $ (3,239,467 ) -21.0 % State benefit, net of federal benefit (134,895 ) -4.2 % Nontaxable or nondeductible items: Stock based compensation expense 81,454 25.2 % Goodwill 2,530,654 25.2 % Valuation allowance 762,254 -25.2 % Provision for income tax and effective tax rate $ - 0.0 % A reconciliation of the expected tax provision at the statutory federal income tax rate to the Companys recorded tax provision consisted of the following, prior to the adoption of ASU 2023-09: For the Year Ended June 30, 2025 Computed expec …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, to enhance specified information about certain costs and expenses at each interim and annual reporting period so that investors can better understand an entitys overall performance. The guidance is effective for the Companys annual periods beginning July 1, 2027. The Company is currently evaluating the ASU to determine its impact on its financial statements and related disclosures. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU provides a comprehensive list of interim disclosures that are required by GAAP and clarifies the applicability of Topic 270, as well as a requirement to disclose events since the end of the last annual reporting period that have a material impact on the entity. The new standard will become effective for the Companys interim disclosures beginning in fiscal year 2029. Early adoption is permitted and the new guidance should be applied prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of this standard on its financial statements and disclosures. In December 2025, the FASB issued ASU 2025-12, Codification Improvements. This ASU includes amendments to …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 14. RELATED PARTY TRANSACTION In June 2026, the company sold the Learning subsidiary to an entity controlled by the former chief executive officer of the Company. See Note 5. In February 2025, the company paid to the current (effective June 1, 2026) chief executive officer of the Company and his immediate family $ 0.75 million representing contingent consideration due from the August 2022 purchase of the BLI Sub. In October 2025, the company paid to the current (effective June 1, 2026) chief executive officer of the Company and his immediate family an additional $ 0.75 million representing the final contingent consideration due from the August 2022 purchase of the BLI Sub by the Company. There are no further contingent consideration payments due on the August 2022 purchase of the BLI Sub as of June 30, 2026. See Note 8. The May 2026 SPA (Note 11) included 16,197 shares of common stock (and associated warrants) issued to current and former Company executives and Board members. Gross proceeds received from these related parties was approximately $ 71,000 .

RelatedPartyTransactionsDisclosureTextBlock

NOTE 10. DEFERRED COSTS AND DEFERRED REVENUE As of June 30, 2026 and, 2025, deferred costs totaling $ 0 and $ 42,153 , respectively, consist of costs deferred under contracts not completed and recognized at a point in time. As of June 30, 2026 and 2025, deferred revenue, totaling $ 6,961 and $ 0 , 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, 2026 and 2025: SCHEDULE OF NET ACTIVITY OF DEFERRED COST AND DEFERRED REVENUE 2026 2025 As of and for the Years ended June 30, 2026 2025 Deferred costs - beginning of period $ 42,153 $ 104,704 Deferred cost recognized as cost of goods sold / expense during period (42,153 ) (88,568 ) Costs incurred and not yet recognized as cost of goods sold - 26,017 Deferred cost - end of period $ - $ 42,153 Deferred revenue - beginning of period $ - $ - Payments received and not yet recognized as revenue 6,961 - Deferred revenue - end of period $ 6,961 $ -

RevenueFromContractWithCustomerTextBlock

NOTE 7. SEGMENT AND RELATED INFORMATION The Company has one reportable segment managed on a consolidated basis: immersive technology software development and commercialization. The Company derives revenue primarily in the United States and manages all business activities on a consolidated basis. The services are deployed to customers in a similar manner. The Companys chief operating decision maker (CODM) is the chief executive officer who reviews financial information presented on a consolidated basis to allocate resources, evaluate performance and make overall operating decisions. The measure of segment profit or loss that is most consistent with the consolidated financial statements is net cash used in operating activities. The accounting policies of our single reportable segment are the same as those for the consolidated financial statements. The level of disaggregation and amounts of significant revenue and cash expenses that are regularly provided to the CODM are the same as presented in the consolidated statement of operations. Likewise, the measure of segment assets is reported on the consolidated balance sheets as total assets. The table below is a summary of segment operating expenses from continuing operations. SCHEDULE OF SEGMENT OPERATING EXPENSES FROM CONTINUING OPERATIONS 2026 2025 For the Years ended June 30, 2026 2025 Personnel related $ 3,044,580 $ 2,589,768 Stock based compensation 740,709 622,063 Professional fees 536,067 244,503 Software/IT services 347,88 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Principles of Consolidation The accompanying consolidated financial statements include the balances of Brightline and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates In preparation of the consolidated financial statements in accordance with GAAP, the Company makes certain estimates and assumptions in determining the amounts reflected in the financial statements and the related notes. Actual results could differ from those estimates. Discontinued Operations and Reclassifications In June 2026, the decision was made by the Company to transform from a portfolio of businesses into a focused technology company centered on its BLI Sub and its product SpatialCore, an interoperability infrastructure platform for Physical AI. Since the Companys new leadership and Board of Directors assumed responsibility on June 1, 2026, the Company has focused on a series of initiatives intended to simplify the business, accelerate growth and strengthen its position in the emerging Physical AI market. These efforts have included the divestiture of all non-core and underperforming subsidiaries. As further detailed in Note 5, the Company determined that the divestiture/win …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

NOTE 11. EQUITY Common Stock Issued Securities Purchase Agreements (SPA) SPA 2026 In May 2026, the Company completed a SPA with certain existing institutional and individual investors selling 77,788 shares of common stock at $ 4.40 per share and prefunded warrants to purchase up to 341,530 shares of common stock at $ 4.39 per warrant (which is convertible to one share of common stock on a one for one basis). Included with this SPA, the Company issued common stock warrants to purchase up to 524,148 shares of common stock at $ 4.39 per warrant, convertible to common stock on a one for one basis. The relative fair value of the warrants issued in connection with this SPA is $ 1,609,692 , which is included in additional paid-in capital. The Company realized total net proceeds (after professional fees) of $ 1.77 million from the May 2026 SPA. Also see Notes 14 and 16. SPA 2024 In December 2024, the Company completed a SPA with an institutional investor selling 248,750 shares of common stock at $ 21.20 per share and prefunded warrants to purchase up to 95,000 shares of common stock at $ 21.19 per warrant (which is convertible to one share of common stock on a one for one basis). The prefunded warrants had an exercise price of $ 0.001 per share of common stock, and were exercised in full in January 2025 for a de minimis amount ( 95,000 shares at $ 0.001 per share). The Company realized total net proceeds (after underwriting and professional fees) of $ 6.79 million from the December 2 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 16. SUBSEQUENT EVENTS In August 2026, as part of the transformation from a portfolio of businesses into a focused technology company centered on SpatialCore, the Company:1) merged all of its subsidiary companies into the parent, The Glimpse Group, Inc., and 2) changed the name of the Company to Brightline Interactive, Inc. In conjunction therewith, the Companys Nasdaq ticker changed to BTLN (previously GGRP). As detailed in Note 3, the Company declared an 1:8 reverse stock split effective with the opening of public equity markets on September 28, 2026. This is in an effort to remediate the delisting notification from the Nasdaq received on September 11, 2026, which listing suspension is currently stayed pursuant to a hearing request with the Nasdaq pending the issuance of a written decision by the hearings panel. On September 23, 2026 the Company entered into a $ 1.25 million SPA, which provides for the issuance of a reverse split adjusted amount of 223,214 common shares and a like amount of warrants convertible on a one for one basis into Company common stock . The warrants are immediately exercisable at a reverse split adjusted price of $ 16.00 per share. The Company anticipates the full gross proceeds to be received by September 30, 2026. This transaction does not change the Companys status described in Note 2. Going Concern. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing