zSpace, Inc. reported a challenging first quarter with losses exceeding prior periods and continued negative cash flows, highlighting ongoing liquidity constraints despite recent preferred stock financings. The company’s business model centers on augmented and virtual reality blended hardware-software educational products primarily sold into U.S. K-12 schools and Career and Technical Education (CTE) programs, supplemented by professional services. Its proprietary technology delivers immersive 3D learning experiences without VR goggles, supported by partnerships with major PC OEMs. However, the business faces structural headwinds from prolonged education budget cycles, dependence on OEM supply chains, competitive pressure in EdTech, and legal disputes that complicate its path to sustainable growth.