VRAR

• Brightline made initial successful delivery on a multimillion-dollar annual spatial core contract with the Department of War entity and is in advanced discussions regarding multiple significant DoW opportunities, expecting these to materialize into contracts during 2026 despite government shutdown impact.
• Foretell AI, an AI software license product, is gaining traction in education and healthcare, with encouraging enterprise interest in licenses and accelerating pace of new licenses and annual license renewal.
• Initiated the IPO spin-out process of Brightline in October 2025, engaged Lucid Capital Markets, LLC as investment banking partner and experienced securities counsel, with potential Brightline IPO in the first half of 2026.
• Signed several contracts with one of the world's largest oil service companies for development of 3D brand environments and animation and corporate presentations, with aggregate contract value in the mid-6 figures.

• Revenues were down as guided.
• No revenue guidance provided for the remaining fiscal year ending June 30, 2026.
• Expect the Brightline IPO spin-off process to play out over the coming months with a potential Brightline IPO in the first half of 2026.

In Q1 Fiscal Year 2026, revenues were approximately $1.4 million, a 43% decrease compared to Q1 Fiscal Year 2025 which was around $2.4 million. Gross margin for Q1 FY2026 was approximately 72% compared to approximately 68% for FY2025. Adjusted EBITDA loss for Q1 FY2026 was $0.92 million versus $0.46 million loss for Q1 FY2025. Brightline made an initial successful delivery on a multimillion-dollar annual spatial core contract with the Department of War entity. Foretell AI, the AI software license product, is gaining traction in education and healthcare. Other businesses signed several contracts with a world's largest oil service company for development of 3D brand environments and animation, etc., with aggregate contract value in the mid-6 figures.

• Impact of government shutdown and continuing resolution on Brightline's DoW opportunities.
• Uncertainty regarding the success of the Brightline IPO spin-off process.

Q: Are there any questions?

A: No, there are no questions on the phone lines or via the webcast