UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ______________ Commission file number: 001-38420 VIRTRA, INC. (Exact name of registrant as specified in its charter) | Nevada | 93-1207631 | | --- | -- ...

Financial Data and Key Metrics Changes - In Q2 2023, the company achieved record revenue of $10.3 million, a 29% increase from $8 million in Q2 2022 [24] - Gross profit for Q2 2023 increased by 25% to $5.9 million, representing 57% of revenue, compared to 49% in Q2 2022 [25] - Net income for Q2 2023 totaled $1 million, or $0.09 per diluted share, up from $0.8 million, or $0.07 per diluted share in Q2 2022 [28] Business Line Data and Key Metrics Changes - Government revenue surged by 285% to $9.5 million in Q2 2023 from $2.5 million in the prior year, driven by improved law enforcement market performance and federal contracts [18] - International revenue decreased by $1.2 million to $0.7 million, attributed to timing patterns of international order placements [19] Market Data and Key Metrics Changes - The company reported a backlog of $16.4 million as of June 30, 2023, which includes $7.8 million in capital, $6.3 million in service and warranties, and $2.3 million in STEP contracts [30] - Recurring revenue, including warranty revenue, accounted for 17% of total quarterly revenue, with expectations for future increases [21] Company Strategy and Development Direction - The company is focused on enhancing product and content developments to create new revenue streams and strengthen customer relationships [9][10] - A new training center is set to open in the second half of the year to foster relationships with existing and potential customers [16] - The company aims to expand its global footprint and enhance its market presence, particularly in the military sector [17][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain momentum and capitalize on growth opportunities, particularly in the military market [44] - The focus remains on improving operational efficiencies and customer relations through technological upgrades and new product development [22][41] Other Important Information - The company is in the final phase of consolidating operations under one roof, which is expected to yield operational and cost efficiencies [15][16] - The transition to a new ERP system caused a spike in receivables, which is expected to normalize in the upcoming quarters [59] Q&A Session Summary Question: Is the team and infrastructure fully built out for the military market? - The infrastructure is about 75% complete [50] Question: When should we expect to see the full benefits from the consolidation efficiencies? - Full efficiencies are expected to show in Q4, with some benefits in Q3 [51] Question: How should we think about order patterns for Q3? - Order patterns are steady, with a typical drop between Q2 and Q3, but positive movement is anticipated for Q3 [54] Question: Can you explain the spike in receivables on the balance sheet? - The spike was due to the transition to a new ERP system, which caused an increase in receivables [59] Question: What is a comfortable level of backlog to operate with? - The company aims to fill orders within 7 to 30 days on a normalized basis [60] Question: How does the company plan to grow its sales capacity? - The company plans to increase sales staff by 35% to enhance market presence and efficiency [67]

Financial Performance - Net sales for Q2 2023 were $10,336,903, a 29% increase from $7,997,383 in Q2 2022, and for the first half of 2023, net sales reached $20,363,838, up 38% from $14,750,611 in the same period last year[78]. - Gross profit for Q2 2023 was $5,920,701, a 25% increase from $4,743,732 in Q2 2022, with a gross profit margin of 57% compared to 59% in the prior year[80]. - Operating income for Q2 2023 was $1,928,603, an 85% increase from $1,041,623 in Q2 2022, and for the first half of 2023, operating income was $5,399,908, up 208% from $1,752,926 in the same period last year[83]. - Net income for Q2 2023 was $1,026,636, a 30% increase from $787,374 in Q2 2022, and for the first half of 2023, net income reached $3,973,009, a 191% increase from $1,364,448 in the same period last year[86]. - Adjusted EBITDA for the six months ended June 30, 2023, was $6,549,098, a 180% increase from $2,342,478 in the same period of 2022[87]. Costs and Expenses - Cost of sales for Q2 2023 was $4,416,202, a 36% increase from $3,253,651 in Q2 2022, attributed to increased product shipments and a one-time inventory adjustment related to a new ERP system[79]. - Operating expenses for Q2 2023 were $3,992,098, an 8% increase from $3,702,109 in Q2 2022, primarily due to higher salaries, benefits, and expenses for a new office[81]. - The provision for income tax for Q2 2023 was $977,489, a 296% increase from $246,684 in Q2 2022, reflecting higher earnings[85]. Cash Flow and Working Capital - Cash and cash equivalents as of June 30, 2023, were $13,342,974, slightly down from $13,483,597 as of December 31, 2022[88]. - Net cash provided by operating activities was $313,470 for the six months ended June 30, 2023, compared to a net cash used of $2,778,270 in the same period of 2022[89]. - Net cash used in investing activities decreased to $345,640 for the six months ended June 30, 2023, from $1,811,738 in the same period of 2022[90]. - The company had working capital of $26,571,718 as of June 30, 2023, an increase from $24,339,089 as of December 31, 2022[88]. - Net cash used in financing activities was $108,453 for the six months ended June 30, 2023, compared to $102,324 in the same period of 2022[91]. Business Strategy and Market Position - The company plans to broaden its product offerings and increase its total addressable market through new marketing strategies and innovative product development[76]. - 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[76]. - The company has installed a volumetric video capture studio to create realistic training scenarios, providing a strategic advantage in de-escalation training[82]. - The company received bookings totaling $8.4 million for the six months ended June 30, 2023, with a backlog of $16.4 million as of the same date[92]. - Management estimates that the majority of new bookings received in the first six months of 2023 will be converted to revenue within the same year[92]. - The company is open to raising additional funds from capital markets to expand its product and service offerings[93].

VirTra, Inc. (NASDAQ:VTSI) Q1 2023 Earnings Conference Call May 15, 2023 4:30 PM ET Company Participants Bob Ferris - Chairman, President, Co-Chief Executive Officer John Givens - Director & Co-Chief Executive Officer Alanna Boudreau - Chief Financial Officer Conference Call Participants Richard Baldry - ROTH MKM Jaeson Schmidt - Lake Street Operator Good afternoon, and welcome to VirTra's First Quarter 2023 Earnings Conference Call. My name is Claudia, and I will be your operator for today's call. Joining ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ______________ Commission file number: 001-38420 VIRTRA, INC. (Exact name of registrant as specified in its charter) | Nevada | 93-1207631 | | --- | --- | ...

Start Time: 16:30 January 1, 0000 5:10 PM ET VirTra, Inc. (NASDAQ:VTSI) Q4 2022 Earnings Conference Call March 31, 2023, 16:30 PM ET Company Participants Bob Ferris - Chairman, President and Co-CEO John Givens - Co-CEO Alanna Boudreau - CFO Conference Call Participants Jaeson Schmidt - Lake Street Richard Baldry - ROTH Capital Operator Good afternoon. Welcome to VirTra’s Fourth Quarter and Full Year 2022 Earnings Conference Call. My name is Doug, and I will be your operator for today’s call. Joining us for ...

Financial Performance - Revenues for the year ended December 31, 2022, were $28,302,244, an increase of $3,868,188 or 16% compared to $24,434,056 in 2021[103] - Gross profit increased to $16,254,878 for 2022, representing a 43% increase from $11,405,212 in 2021, with a gross profit margin of 57%[105] - Net operating expenses rose to $13,661,173 in 2022, a 37% increase from $9,951,175 in 2021, driven by higher marketing and facility relocation costs[106] - Income from operations was $2,593,705 for 2022, up 78% from $1,454,037 in 2021, due to increased revenue and decreased cost of goods sold[108] - Net income for 2022 was $1,955,898, a decrease of 23% from $2,540,089 in 2021, primarily due to the absence of PPP loan forgiveness[110] - Adjusted EBITDA for 2022 was $3,605,430, a 72% increase from $2,090,157 in 2021, reflecting improved operational performance[111] Cash Flow and Financial Position - Cash and cash equivalents decreased to $13,483,597 as of December 31, 2022, down from $19,708,565 in 2021[112] - Net cash used in operating activities was $2,693,351 for 2022, compared to $125,743 in 2021, primarily due to increases in inventory and accounts payable[113] - The Company believes its current capital resources are adequate for over 12 months but is open to raising additional funds for business expansion and market opportunities[118] - As of December 31, 2022, there were no off-balance sheet arrangements that could materially affect the Company's financial condition[139] Revenue Recognition and Product Offerings - Revenue recognition is based on the FASB's ASC 606, with no significant impact on financial statements upon adoption[127] - Revenues include product sales and services, with product sales consisting of simulators, upgrade components, and accessories[128] - The Company provides a one-year assurance-type warranty on products, estimating warranty costs based on historical claims[137] Market and Product Development - The company plans to broaden its product offerings and increase its total addressable market through new marketing strategies and product innovations[102] - The V-300™ simulator features a 300-degree immersive training environment, enhancing decision-making and tactical training capabilities[102] - The Company received bookings totaling $6.4 million for the three months ended December 31, 2022, with a backlog of $27.7 million as of the same date[116] - Management estimates that the majority of new bookings from Q4 2022 will convert to revenue in 2023, although contract terms and delivery dates may change[117]

VirTra, Inc. (NASDAQ:VTSI) Q3 2022 Earnings Conference Call November 14, 2022 4:30 PM ET Company Participants Bob Ferris – Chairman and Co-Chief Executive Officer John Givens – Co-Chief Executive Officer Conference Call Participants Richard Baldry – ROTH Capital Jaeson Schmidt – Lake Street Operator Good afternoon, and welcome to VirTra’s Third Quarter 2022 Earnings Conference Call. My name is Keith, and I will be your operator for today’s call. Today’s call is being recorded. Joining us for today’s present ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ______________ Commission file number: 001-38420 VIRTRA, INC. Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Tradi ...

Financial Data and Key Metrics Changes - Total revenue for the first half of 2022 increased over 50% compared to the same period in 2021, reaching $14.8 million from $9.7 million [6][22] - Adjusted EBITDA grew 33% in the first half of the year, totaling $2.3 million, up from $1.8 million in the same period last year [7][29] - Net income for the second quarter of 2022 was $787,000 or $0.07 per diluted share, an increase from $529,000 or $0.05 per diluted share in Q2 2021 [28] Business Line Data and Key Metrics Changes - Revenue in the commercial segment grew over fivefold in the first half of the year to $5.2 million, with Q2 commercial revenue of $3.6 million exceeding the total for all of 2021 [11][21] - Government sales saw a slight decline, but management noted that the high season for new government orders typically occurs in Q3 [7] - International revenue increased 125% in the first half of 2022 compared to the prior year, attributed to the lifting of COVID-related travel restrictions [8] Market Data and Key Metrics Changes - Backlog as of June 30, 2022, totaled $16.5 million, down from $21 million at the end of Q1 2022 [31] - The company noted a strong sales pipeline for government orders, with expectations for increased activity in the upcoming quarters [7][51] Company Strategy and Development Direction - The company is focusing on expanding its presence in the military market, with a new operational facility in Orlando to enhance product demonstrations and relationships [15][16] - A recent reorganization aimed at improving operational efficiency and scalability, including a 10% staff reduction, is not primarily a cost-cutting measure but rather an optimization strategy [19][66] - The company is optimistic about future growth opportunities, particularly in the military sector, and is streamlining operations to facilitate maximum scale [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing a robust sales pipeline and the potential for significant military contracts [38][71] - The company is addressing inflationary pressures and operational inefficiencies while maintaining a focus on high-quality training products [36][85] - Management emphasized the importance of educating the market on the need for high-quality training in life-and-death situations, which is seen as a key opportunity for growth [81] Other Important Information - The company is transitioning to a new headquarters in Chandler, Arizona, which is expected to enhance operational efficiencies [39] - The departure of the Chief Operating Officer was noted, with no immediate replacement planned [33][34] Q&A Session Summary Question: Can you talk about the cadence of seasonal bookings in the military market? - Management indicated that military contracts typically have a base with options for multiple years, with September 30 being a key date for contract issuance [43] Question: What is the backdrop for the regular police market? - Management noted that COVID-19 had previously impacted their ability to schedule installations, but with restrictions easing, they have been able to convert backlog into revenue [49] Question: Are the ERP systems in a steady state? - Management acknowledged that the ERP system is evolving and that they are focused on ensuring scalability and timely filings [55] Question: How do you feel about the September budget flushes from customers? - Management expressed optimism about the sales pipeline and noted that they are not currently facing major issues related to government budget cycles [74] Question: Can you comment on the increase in operating expenses? - Management clarified that the increase in operating expenses is partly due to growth initiatives and one-time costs associated with the move to new facilities [68]