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]

Financial Performance - Revenues for Q2 2022 were $7,997,383, a 52% increase from $5,255,192 in Q2 2021[82] - Cost of sales for Q2 2022 increased to $3,253,651, up 53% from $2,120,492 in Q2 2021[83] - Gross profit for Q2 2022 was $4,743,732, reflecting a 51% increase from $3,134,700 in Q2 2021[84] - Operating income for Q2 2022 was $1,041,623, a 27% increase compared to $820,768 in Q2 2021[86] - Net income for Q2 2022 was $787,374, up 49% from $529,359 in Q2 2021[89] - Operating expenses for Q2 2022 were $3,702,109, a 60% increase from $2,313,932 in Q2 2021[85] - The gross profit margin for Q2 2022 was 59%, slightly down from 60% in Q2 2021[84] - Net income for the three months ended June 30, 2022, was $787,374, a 49% increase from $529,359 in the same period of 2021[90] - Adjusted EBITDA for the six months ended June 30, 2022, was $2,342,478, reflecting a 33% increase from $1,754,993 in the same period of 2021[90] Cash Flow and Investments - The company had cash and cash equivalents of $15,016,233 as of June 30, 2022, down from $19,708,565 as of December 31, 2021[90] - Net cash used in operating activities was $2,778,270 for the six months ended June 30, 2022, compared to net cash provided of $937,906 for the same period in 2021[91] - Net cash used in investing activities was $1,811,738 for the six months ended June 30, 2022, compared to $694,895 for the same period in 2021[92] - Net cash used in financing activities was $102,234 for the six months ended June 30, 2022, a significant decrease from net cash provided of $16,801,070 in the same period of 2021[93] Business Strategy and Outlook - The company plans to broaden product offerings and enter new market segments through innovative products and services[79] - The company aims to increase its total addressable market by targeting new customer types[79] - The company is open to partnerships and acquisitions to enhance its market position and operational efficiency[79] - The company estimates that the majority of new bookings received in the first six months of 2022 will be converted to revenue within the same year[94] - Management believes current capital resources will be adequate for more than 12 months, but is open to raising additional funds for expansion[96] - As of June 30, 2022, there were no off-balance sheet arrangements that could materially affect the company's financial condition[100] Bookings and Backlog - The company received bookings totaling $9.9 million for the six months ended June 30, 2022, with a backlog of $16.5 million as of the same date[94]

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, 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. (Exact name of registrant as specified in its charter) | Nevada | 93-1207631 | | --- | --- | ...

VirTra, Inc. (NASDAQ:VTSI) Q4 2021 Earnings Conference Call August 2, 2022 4:30 PM ET Company Participants Bob Ferris - Chairman & Co-CEO John Givens - Co-CEO Marsha Foxx - Chief Accounting Officer Conference Call Participants Richard Baldry - ROTH Capital Jaeson Schmidt - Lake Street. Allen Klee - Maxim Group Operator Good afternoon. Welcome to VirTra's Fourth Quarter and Full Year 2021 Earnings Conference Call. My name is Vikram and I will be your operator for today's call. Joining us for today's presenta ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ 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 | | --- | --- | | (St ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $6.1 million, a 5% decrease from $6.4 million in Q3 2020 [11] - For the first nine months of 2021, total revenue increased 21% to $15.8 million from $12.5 million in the same period of 2020 [12] - Gross profit for Q3 2021 decreased 28% to $2.9 million from $4.0 million in Q3 2020, with a gross profit margin of 47.2% compared to 61.9% in Q3 2020 [12][13] - Net income for Q3 2021 was $1.3 million or $0.12 per diluted share, an improvement from $868,000 or $0.11 per diluted share in Q3 2020 [17] - Adjusted EBITDA for Q3 2021 totaled $520,000, down from $1.6 million in Q3 2020 [18] Business Line Data and Key Metrics Changes - Record bookings of $11 million in Q3 2021, leading to a record backlog of $21.7 million, up 28% from the previous quarter and 51% from Q3 2020 [6][20] - International revenue for Q3 2021 was $860,000, nearly double the total international revenue for all of 2020 [28] Market Data and Key Metrics Changes - The company experienced challenges in closing international deals due to COVID-19 restrictions, but recent wins indicate a recovery in international markets [7][25] - The military segment shows potential for growth as the company partners with established firms to access military contracts [29] Company Strategy and Development Direction - The company plans to expand its international business and has made significant contract wins in the Middle East and Europe [25][26] - An acquisition of a new headquarters in Chandler, Arizona, is expected to enhance operational efficiencies and increase production capacity [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery from COVID-19 and the potential for increased international sales as travel restrictions ease [42] - The company aims to maintain healthy margins despite fluctuations due to product mix and inventory reserves [33][44] Other Important Information - The company reported a nonrecurring $1.3 million gain from the forgiveness of PPP loans, which positively impacted net income [17][18] - The backlog includes multi-year warranties, contributing to a recurring revenue stream [70] Q&A Session Summary Question: Supply chain challenges and component shortages - Management acknowledged occasional supply chain challenges but expressed confidence in meeting customer demand [40] Question: Competitors in the international market - Management noted that existing competitors are similar to those in the domestic market, with no significant new entrants [41] Question: Expectations for gross margin recovery in Q4 - Management indicated that gross margins may fluctuate based on product mix but aims to maintain healthy margins [43][44] Question: Benefits of the new headquarters - The new facility is expected to increase production capacity and operational efficiencies [48][49] Question: Catalysts for military market expansion - Management highlighted ongoing partnerships with established companies and the potential for growth in military contracts [51][54] Question: R&D expenses and future run rates - R&D expenses increased due to government contracts, and management is investing in next-generation technologies [58] Question: Inventory build and safety stocks - Inventory increases are partly due to safety stock measures in response to supply chain issues [60] Question: Sales capacity and bookings growth - Management is monitoring sales capacity closely and is open to increasing sales staff if justified [62][64] Question: Bookings breadth between existing clients and new customers - Management indicated that bookings are driven by both existing clients and new customer wins as COVID-19 restrictions ease [66][68] Question: Recognition of backlog and revenue acceleration - Management explained that some backlog is time-locked due to warranties, but they have a good track record of converting backlog to recognized revenue [70][74]