Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $7,200,000, a 3% decrease from $7,300,000 in the prior year due to delayed deliveries [25][26] - Gross profit improved to $5,200,000, representing 73% of total revenue compared to 64% in the prior year, reflecting a 25% decrease in cost of sales [26] - Operating income increased 110% to $1,400,000 compared to $650,000 in the prior year [27] - Net income for the quarter was $1,300,000 or $0.11 per diluted share, a 170% increase from $470,000 or $0.04 per diluted share in Q1 2024 [27] - Adjusted EBITDA increased 22% to $1,700,000 compared to $1,400,000 in the prior year [27] - Cash and cash equivalents totaled $17,600,000 as of March 31, down from $18,000,000 at year-end [27] Business Line Data and Key Metrics Changes - Government revenue for Q1 was $5,200,000, down from $6,700,000 in the prior year, while international revenue increased to $1,900,000 from $550,000 [25][26] - Bookings for the quarter totaled $6,400,000, more than double the $2,900,000 reported in Q1 2024 [28] - Backlog as of March 31, 2025, stood at $21,200,000, segmented into $9,900,000 in capital, $5,800,000 in service, and $5,500,000 in STEP contracts [29] Market Data and Key Metrics Changes - The company noted that sales cycles are taking longer due to funding being held back during internal reviews and leadership transitions [6] - Interest in flexible purchasing pathways, including subscription-based models, is increasing among agencies [7] Company Strategy and Development Direction - The company is focusing on operational execution and adapting to economic uncertainties while reinforcing its role as a trusted training partner [5] - Strategic actions include early coordination with agencies during budgeting processes and aligning offerings with agency needs [9] - The company is enhancing its marketing function and digital strategy to improve lead capture and engagement [12][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macro headwinds affecting customer decisions but emphasized the importance of training mandates [5][6] - The company is confident in its ability to convert backlog into revenue and support scalable growth despite funding constraints [24][30] Other Important Information - The VXR extended reality platform is generating interest, with two units sold and more in discussions [15][16] - The company is expanding its certified training content, now offering over 120 hours of certified courses [19] Q&A Session Summary Question: Did macro dynamics contribute to any orders being pulled into Q1? - Management indicated that it was unclear if macro dynamics influenced order timing, noting that some agencies were trying to spend budgeted funds before potential shutdowns [34][35] Question: Is there demand for VXR from other market verticals? - Management confirmed that grant activity is driving demand for VXR, with interest from adjacent markets like healthcare and private security [36] Question: Are customers being forced into three-year agreements for the STEP program? - Management clarified that while customers are encouraged to move to three-year agreements, it is not strictly enforced, but it is a tactic to advance the sales cycle [38][39][41]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $7,200,000, a 3% decrease from $7,300,000 in the prior year period, primarily due to delayed deliveries on several customer orders [25] - Gross profit improved to $5,200,000, representing 73% of total revenue, compared to $4,700,000 or 64% in the prior year period, reflecting a 25% decrease in cost of sales [26] - Operating income increased 110% to $1,400,000 compared to $650,000 in the prior year period, while net income rose 170% to $1,300,000 or $0.11 per diluted share [27] - Bookings for the quarter totaled $6,400,000, more than double the $2,900,000 reported in Q1 2024, contributing to $33,400,000 in total bookings over the trailing twelve months [28] Business Line Data and Key Metrics Changes - Government revenue for Q1 was $5,200,000, down from $6,700,000 in the prior year, while international revenue increased to $1,900,000 from $550,000 [25] - Backlog as of March 31, 2025, stood at $21,200,000, including $9,900,000 in capital, $5,800,000 in service, and $5,500,000 in STEP contracts [29] Market Data and Key Metrics Changes - The company is experiencing longer sales cycles and funding delays due to economic uncertainty and shifting agency priorities, but training mandates remain urgent [6][7] - Interest in flexible purchasing pathways, including subscription-based models, is increasing among agencies [7] Company Strategy and Development Direction - The company is focusing on operational execution, sales efficiency, and operational scalability to strengthen its market position [4][5] - A transition to a regional sales model with new leadership aims to improve accountability and responsiveness across key territories [11] - The introduction of standardized product bundles and entry into the GSA procurement channel is expected to streamline quoting and speed up fulfillment [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing macro headwinds affecting customer decisions but remains confident in the company's ability to adapt and deliver solutions [5][23] - The company is well-positioned to take advantage of changes in the Department of Defense's acquisition priorities, which emphasize speed and modernization [22][23] Other Important Information - The VXR extended reality platform is generating interest, with two units sold and more in discussions, reflecting the company's long-term strategy in immersive training [15][16] - The company has expanded its certified training content to over 120 hours, enhancing its training offerings for law enforcement and military partners [19] Q&A Session Summary Question: Did macro dynamics contribute to any orders being pulled into Q1? - Management indicated that there were funds in budgets that agencies were trying to spend before potential shutdowns, but the situation varies by agency [33][34] Question: Is there demand for VXR from other market verticals? - Management confirmed that grant activity is driving demand for VXR, with interest from adjacent markets like healthcare and private security [35] Question: Are customers being forced into three-year agreements for the STEP program? - Management clarified that while customers are encouraged to move to three-year agreements, options remain available for longer terms if needed [37][40]

Financial Performance - Net income for Q1 2025 increased to $1.3 million, up from $0.5 million in Q1 2024, representing a 170% increase[11] - Total revenue for Q1 2025 was $7.2 million, a slight decrease of 3% from $7.3 million in the prior year period[8] - Bookings for Q1 2025 reached $6.4 million, a significant increase of 120% year-over-year from $2.9 million in Q1 2024[5] - Gross profit improved to $5.2 million, reflecting a gross margin of 72.6%, compared to $4.7 million and 64.2% in the prior year[9] - Adjusted EBITDA for Q1 2025 was $1.7 million, a 22% increase from $1.4 million in Q1 2024[12] - Operating income more than doubled to $1.4 million in Q1 2025, compared to $0.7 million in the prior year[11] - Total revenue for Q1 2025 was $7,160,247, a decrease of 2.5% compared to $7,346,421 in Q1 2024[24] - Gross profit increased to $5,196,880 in Q1 2025, up 10.2% from $4,714,164 in Q1 2024[24] - Net income for Q1 2025 was $1,264,060, representing a significant increase of 169.5% compared to $468,196 in Q1 2024[24] - Operating expenses decreased to $3,829,077 in Q1 2025, down 5.8% from $4,063,802 in Q1 2024[24] Cash and Assets - Cash and cash equivalents at the end of Q1 2025 were $17,612,626, a decrease from $18,040,827 at the end of Q4 2024[26] - Total assets increased to $66,797,122 as of March 31, 2025, compared to $65,453,086 as of December 31, 2024[22] - Total liabilities remained relatively stable at $19,812,659 in Q1 2025, compared to $19,762,198 in Q4 2024[22] - The company reported a net cash provided by operating activities of $65,691 in Q1 2025, a decrease from $5,136,509 in Q1 2024[26] Research and Development - Research and development expenses were $609,127 in Q1 2025, down from $693,380 in Q1 2024[24] - Development work under the U.S. Army's IVAS program advanced, including expanded recoil kit validation and reliability testing[5] Backlog and Working Capital - Backlog as of March 31, 2025, totaled $21.2 million, including $9.9 million in Capital, $5.8 million in Service, and $5.5 million in STEP contracts[5] - The company maintained robust working capital of $35.3 million, positioning it for sustained growth[5] Strategic Initiatives - The company reentered the GSA procurement program with bundled offerings to streamline purchases for federal and municipal buyers[6] Share Information - The weighted average shares outstanding for basic shares increased to 11,162,037 in Q1 2025 from 10,959,298 in Q1 2024[24]

Financial Performance - Net sales for the three months ended March 31, 2025, were $7,160,247, a decrease of $186,174 or 3% compared to $7,346,421 for the same period in 2024[79] - Cost of sales decreased by $668,890 or 25% to $1,963,367 for the three months ended March 31, 2025, compared to $2,632,257 for the same period in 2024[80] - Gross profit increased by $482,716 or 10% to $5,196,880 for the three months ended March 31, 2025, with a gross profit margin of 73% compared to 64% in 2024[81] - Operating income for the three months ended March 31, 2025, was $1,367,803, an increase of $717,441 or 110% compared to $650,362 for the same period in 2024[84] - Net income for the three months ended March 31, 2025, was $1,264,060, an increase of $795,864 or 170% compared to a restated net income of $468,196 for the same period in 2024[87] - Adjusted EBITDA for the three months ended March 31, 2025, was $1,703,313, an increase of $304,665 or 22% compared to $1,398,648 for the same period in 2024[87] Cash Flow and Working Capital - The company had cash and cash equivalents of $17,612,626 as of March 31, 2025, compared to $18,040,827 as of December 31, 2024[88] - Working capital increased to $35,257,860 as of March 31, 2025, from $34,826,680 as of December 31, 2024[88] - Net cash provided by operating activities was $65,691 for Q1 2025, a significant decrease from $5,136,509 in Q1 2024[89] - Net cash used in investing activities decreased to $428,371 in Q1 2025 from $1,546,772 in Q1 2024[90] Market and Product Development - The company plans to expand its product offerings and market share by entering complementary markets such as hospitals and private security[77] - The V-300™ simulator features a 300-degree immersive training environment and supports 15 individual firing lanes, enhancing decision-making simulation and tactical firearms training[77] Bookings and Backlog - Bookings totaled $6.4 million for Q1 2025, with an estimated $5 million in renewable STEP contract options still outstanding[91] - The backlog as of March 31, 2025, was $21.2 million, including $9.9 million in Capital, $5.8 million in Service, and $5.5 million in STEP[92] - Management estimates that most new capital bookings in Q1 2025 will convert to revenue within the same year[93] Future Outlook and Funding - The company is open to raising additional funds from capital markets to expand production capacity and enhance marketing efforts[95] - There is uncertainty regarding the impact of the new federal administration on bookings for the remainder of 2025, with budget cuts and frozen grants discussed[94] - The company has no off-balance sheet arrangements that could materially affect its financial condition as of March 31, 2025[98]

Core Insights - VirTra, Inc. reported a net income of $1.3 million for Q1 2025, a significant increase from $0.5 million in Q1 2024, reflecting improved operational execution and cost management [4][13][15] - Bookings for the first quarter rose 120% year-over-year to $6.4 million, contributing to a total of $33.4 million in bookings over the last twelve months, despite challenges in federal funding [8][10] Financial Performance - Total revenue for Q1 2025 was $7.2 million, a slight decrease of 3% from $7.3 million in Q1 2024, primarily due to delayed deliveries [10] - Gross profit increased to $5.2 million, representing a 10% rise from $4.7 million in the prior year, with gross margin improving to 72.6% from 64.2% [11][12] - Adjusted EBITDA for Q1 2025 was $1.7 million, up 22% from $1.4 million in Q1 2024, indicating strong operational efficiency [13][20] Operational Highlights - The company maintained a backlog of $21.2 million as of March 31, 2025, with $9.9 million in Capital, $5.8 million in Service, and $5.5 million in STEP contracts [8] - Development efforts related to the U.S. Army's IVAS program advanced, including recoil kit validation and reliability testing, preparing for a potential production phase [7][8] - The company reentered the General Services Administration procurement program, enhancing sales and marketing functions to engage priority agencies more effectively [8][9] Cash Position - Cash and cash equivalents stood at $17.6 million as of March 31, 2025, with working capital growing to $35.3 million, positioning the company for sustained growth [14][16]

Core Viewpoint - VirTra, Inc. will hold a conference call on May 12, 2025, to discuss its financial results for Q1 2024, indicating a focus on transparency and communication with investors [1]. Company Overview - VirTra, Inc. is a global provider of judgmental use of force training simulators and firearms training simulators for law enforcement, military, educational, and commercial markets [3]. - The company utilizes patented technologies and software to deliver training that simulates real-world situations, focusing on de-escalation, judgmental use-of-force, and marksmanship [3]. - VirTra's mission is to enhance lives globally through effective virtual reality and simulator technology [3]. Conference Call Details - The conference call is scheduled for May 12, 2025, at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) [2]. - Participants can join via U.S. dial-in at 1-877-407-9208 or international dial-in at 1-201-493-6784, with a Conference ID of 13753538 [2]. - A live broadcast of the call will be available, and a replay will be accessible after 7:30 p.m. Eastern time on the same day until May 26, 2025 [3].

VirTra, Inc. (NASDAQ: VTSI ) , a micro-cap U.S.-based company by market standards, makes immersive simulation training systems. These are used by law enforcement, military, and security personnel in various parts of the world. The company is known, at least withinThe mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for companies; focusing on small- to mid-cap c ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $5.4 million, down from $10.9 million in the prior year period, reflecting federal budget delays and grant distribution pauses [21][22] - Full year 2024 revenue totaled $26.4 million, compared to $38.8 million in 2023, indicating a significant decline due to a constrained booking environment [24][25] - Bookings for Q4 2024 grew to $12.2 million, a 37% sequential increase from Q3 2024, although many orders came late in the quarter [22] - Full year 2024 bookings totaled $29.6 million, down $4.2 million year-over-year, but excluding 2023 design and prototype contracts, bookings for federal services and STEP contracts increased by 24% [23] Business Line Data and Key Metrics Changes - Government revenue for 2024 was $22.9 million, down from $31 million in the prior year, impacted by the funding environment [25] - International revenue for 2024 was $3.1 million, compared to $6.5 million in the prior year, although bookings in the international market increased by 68% [25][26] - Gross profit for Q4 was $3.7 million (69% of total revenue), down from $9.2 million (84% in the prior year), primarily due to lower revenue [26] Market Data and Key Metrics Changes - The company secured contracts with government and law enforcement agencies in Europe and Latin America, expanding its training solutions to 44 countries [11] - The backlog as of December 31, 2024, totaled $22 million, including $10.6 million in capital, $6.6 million in service and warranties, and $4.8 million in STEP contracts [31] Company Strategy and Development Direction - The rollout of the V-XR platform is a strategic priority, with early customer reception being strong [12] - The company is focused on enhancing its sales pipeline and securing funding for law enforcement agencies [8][19] - Investments in manufacturing capabilities and operational infrastructure are aimed at handling large-scale contracts effectively [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the funding environment remains unpredictable but believes that the long-term need for advanced training solutions continues to grow [34] - The company is optimistic about converting backlog into revenue as market conditions stabilize [34] - Management is closely monitoring macroeconomic factors impacting government funding cycles [17] Other Important Information - The company recorded a $750,000 revenue adjustment related to a prior international sale from 2021, affecting reported revenues for 2024 and 2023 [24] - Cash and cash equivalents as of December 31, 2024, were $18 million, down from $18.8 million in December 2023 [31] Q&A Session Summary Question: How long will the current funding softness last? - Management indicated that the funding environment may stabilize in a couple of quarters after the current assessments are completed [40][41] Question: What initiatives are being undertaken to weather the uncertainty? - The company has created a grant program to assist customers in navigating the funding process and has engaged with policymakers to advocate for clearer funding processes [44][45] Question: What is the outlook for the IVAS opportunity following the handoff to Anduril? - Management believes the transition to Anduril is a net positive, as Anduril has a strong history with government contracts and understands the requirements better than Microsoft [48][51] Question: How much of the $22 million in bookings should be recognized in 2025? - Management confirmed that if a booking is recorded, it means funding is secured, and the majority is expected to convert to revenue in 2025 [58] Question: Can you discuss the V-XR pricing and market opportunity? - The price point for V-XR ranges from $35,000 to $100,000, and the company sees significant opportunities in smaller, budget-constrained agencies [71][75]

Financial Performance - VirTra, Inc. reported a quarterly loss of $0.08 per share, missing the Zacks Consensus Estimate of $0.07, and a significant decline from earnings of $0.25 per share a year ago, representing an earnings surprise of -214.29% [1] - The company posted revenues of $5.4 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 33.25%, and down from $10.12 million in the same quarter last year [2] - Over the last four quarters, VirTra has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - VirTra shares have declined approximately 21.5% since the beginning of the year, contrasting with the S&P 500's decline of -2.9% [3] - The current Zacks Rank for VirTra is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $8.5 million, and for the current fiscal year, it is $0.58 on revenues of $39.16 million [7] - The trend of estimate revisions for VirTra is mixed, and changes in these estimates may occur following the recent earnings report [6] Industry Context - The Electronics - Military industry, to which VirTra belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Total revenue for the fourth quarter was $5.4 million, a decrease of 50% compared to $10.9 million in the prior year period[3]. - For the full year 2024, total revenue was $26.4 million, a decline of 32% from $38.8 million in 2023[10]. - Total revenue for 2024 decreased to $26,350,819 from $38,791,337 in 2023, representing a decline of approximately 32%[30]. - Gross profit for the fourth quarter was $3.7 million, representing a gross margin of 68.5%, down from 84.4% in the prior year[3]. - Gross profit for 2024 was $19,412,515, down from $27,413,073 in 2023, indicating a decrease of about 29%[30]. - Net loss for the fourth quarter was $(0.9) million, or $(0.08) per diluted share, compared to net income of $3.5 million, or $0.32 per diluted share, in the fourth quarter of 2023[15]. - Net income for 2024 was $1,363,681, a significant drop from $9,150,835 in 2023, reflecting a decline of approximately 85%[30]. - Adjusted EBITDA for the fourth quarter was $(1.8) million, compared to $3.0 million in the fourth quarter of 2023[16]. Cash and Liquidity - Cash and cash equivalents were $18.0 million at December 31, 2024, providing a solid liquidity position[18]. - Cash and cash equivalents at the end of 2024 were $18,040,827, down from $18,849,842 at the end of 2023, a decrease of approximately 4%[32]. - The company reported a net cash provided by operating activities of $1,257,266 in 2024, down from $6,682,616 in 2023, a decline of approximately 81%[32]. Backlog and Bookings - Fourth quarter bookings increased by 37% sequentially to $12.2 million, with a significant portion recorded in December, positioning the company for revenue conversion in early 2025[6]. - Year-end backlog expanded to $22.0 million as of December 31, 2024, reflecting continued sales momentum despite federal funding delays[6]. Expenses and Liabilities - Operating expenses increased slightly to $17,416,184 in 2024 from $17,029,508 in 2023, showing an increase of about 2%[30]. - Total liabilities decreased to $19,762,198 in 2024 from $27,012,175 in 2023, representing a reduction of approximately 27%[30]. Research and Development - Research and development expenses increased to $3,003,302 in 2024 from $2,794,314 in 2023, an increase of about 7%[30]. Assets - Total assets decreased to $65,453,086 in 2024 from $70,382,019 in 2023, a decline of about 7%[30]. Federal Funding and Growth Outlook - The company is focused on expanding its role in federal law enforcement training initiatives and has secured contracts in Europe and Latin America[5]. - The company anticipates continued variability in federal funding cycles but remains optimistic about long-term growth in tactical training needs[9]. Share Information - The weighted average shares outstanding for basic shares increased to 11,162,917 in 2024 from 10,958,448 in 2023, an increase of about 2%[30].