The Beach Boys, inexplicably wanted to catch a glimpse of Port au Prince. Or perhaps they wanted to catch a glimpse in Port au Prince? Either way, it’s probably the only pop song to name check the Haitian capital. The Glimpse Group(VRAR), a nanocap with a market cap of just $32 million, wants more investors to “catch a glimpse”. It hopes to do so by spinning off its most promising division, Brightline Interactive.No, not the first privately funded and owned passenger rail in the United States, but, rather, “a PURE PLAY, standalone, well capitalized, Spatial Computing, AI Driven, Cloud Operational Simulation Middleware provider to the DoW and Big Data driven enterprises”. Wow, that’s a lot of words, and I even understand some of them. The Glimpse Group hopes to complete the Brightline spinoff in Q1 2026.
Last month, in Glimpse’s Fiscal Year 2025 earnings report, the company laid out the rationale and goals for the Brightline spinoff.
- Our Immersive tech companies achieved major milestones during the FY, including Department of War (“DoW”) contracts, NIH grant with partnership with leading universities, large follow-on contracts with existing and new customers across industries and AI-driven Immersive software licenses.
- Underlying all of these and primarily driving our growth going forward, is our entity Brightline Interactive (“BLI”):
- As a quick reminder, BLI, through its product SpatialCore, provides advanced Spatial Computing, AI-driven, operational simulation middleware software and solutions to the DoW and Big Data driven enterprises.
- Spatial Core sits at the intersection of: Spatial Computing, Immersive technologies, AI, Cloud and Geospatial Data. We view it as an operating system for computing, processing and visualizing information in three-dimensional space on the cloud.
- BLI specializes in creating AI supported workflows on top of dynamic, synthetic environments (digital twins, robotics, drones, autonomous) that integrate multimodal and real time data to accelerate decision-making, enhance mission readiness, and expand human and machine training capabilities.
- SpatialCore is at the cutting-edge of technology, but it is not “science fiction”. It is based on BLI’s established 15-years of technological development, deep knowledge base and rooted inproven, paid for contracts with major entities with high operational and executional requirements.
- In FY ’25 alone, BLI achieved several critical milestones, including:
- Successfully executed and delivered the development of a unified synthetic training ecosystem for a major DoW entity ($4+ million initial contract). The system enables soldiers to train, plan, and execute missions in a fully virtualized environment, providing interfaces for collaboration, and digital twin integration and functionality.
- Entered into a $2+ million SpatialCore contract with another DoW entity as the direct prime to be delivered over the next 12 months. While we can’t go into any additional details just yet, it has similar AI and Deep Tech characteristics as other SpatialCore contracts.
- Successfully delivered first full-motion Immersive Simulator to the U.S. Navy (mid six figure dollar initial contract), providing the U.S. Navy with advanced simulation capabilities that bridge the gap between the real and virtual worlds. This state-of-the-art system incorporates spatial computing elements to enable high-level, cost-effective simulations, ensuring that military personnel can train in realistic and immersive environments.
- Delivered an advanced immersive simulation to a large government services integrator (“GSI”). BLI was able to create a sophisticated spatial simulation in record time, setting what we believe has the potential to become a new industry standard. This initial simulation project was developed with the goal of allowing the GSI to gather simulation needs from others to then add to this build, or for further deployment, in a cost effective and scalable manner.
- Entered into a Cooperative Research And Development Agreement (CRADA) with the U.S. Army Combat Capabilities Development Command (DEVCOM), Command, Control, Communication, Computers, Cyber, Intelligence, Surveillance and Reconnaissance (C5ISR) Center. Brightline to develop, assess and improve workflows to create and augment synthetic imagery for use in training and assessing artificial intelligence (AI) and machine learning (ML) algorithms.
- These, in addition to prior recent years’ achievements (Navy CRADA, Airforce contract for Industrial robot training, other), represent initial contracts and validation of BLI’s technology and delivery capabilities. All of these have the potential to expand into multi-million and multi-year follow-on contracts, leading to – eventually – possible inclusion in Programs of Record, which are exceptionally large, long-term DoW contracts.
- In addition, BLI has a robust pipeline of new potential customers – both in the DoW space and in the enterprise Big Data segment (Oil & Gas, Aviation, Tech and many others). We believe that BLI’s growth potential is immense, even if it does not immediately materialize to its fullest extent and takes time to fully develop (DoW contracting, for example, is notoriously slow and quite complex).
- Despite all this, BLI’s intrinsic value is not reflected in Glimpse’s current valuation – not even remotely in our view. Indeed, based on our internal analysis, we believe that BLI’s public company comps in the Defense Tech/AI segment trade at VAST multiples of trailing annual revenue. Even if a significantly discounted revenue multiple was to be applied to BLI, its valuation would FAR exceed Glimpse’s current valuation.
- BLI’s true value and potential is hidden within the Glimpse umbrella and is potentially encumbered by it. This being the case, and in light of Glimpse’s current position as a largely abandoned, illiquid Micro-cap, we have reached the conclusion that the best way to potentially maximize shareholder value for Glimpse shareholders and to increase BLI’s chances of success, is to spin-out BLI.
- IF successful, BLI will become an independent publicly traded company – a PURE PLAY, standalone, well capitalized, Spatial Computing, AI Driven, Cloud Operational Simulation Middleware provider to the DoW and Big Data driven enterprises.
- While the final methodology has not been determined yet and success is not guaranteed, our Board of Directors has approved the strategy and general process, which we expect to play out in the coming months.
- As part of the process, the plan is for Glimpse shareholders to be issued shares in the spun-out BLI public entity as a distribution.
- In parallel, current Glimpse shareholders will maintain their holdings in Glimpse, which we believe could have considerable and attractive going-forward alternatives to pursue as a clean, healthy, Nasdaq listed technology company.
- We have many options to try and unlock shareholder value, which we are determined to do. We intend to aggressively pursue these options in the coming months, all the while keeping a sharp focus on our existing businesses and continuing to drive their growth. During this period, we may need to minimize public communications.
As with all proposed spinoffs, especially from tiny companies, there is no guarantee that the spinoff will occur. In this case, the spinoff is not driven by operational issues, but by valuation issues, which it may not fix. We are skeptical that this spinoff is truly the best path to unlock value.
Disclosure: The author holds no position in any stock mentioned