VirTra(US:VTSI)2020-11-10 21:06Revenue Performance - Revenues for Q3 2020 were $6,413,721, a decrease of 4% from $6,713,409 in Q3 2019, attributed to reduced equipment installations due to COVID-19 travel restrictions [130]. - For the nine months ended September 30, 2020, revenues were $12,521,663, a decrease of 2% from $12,819,060 in the same period in 2019 [130]. - The company received bookings totaling $6.5 million for the three months ended September 30, 2020 [143]. - The backlog as of September 30, 2020, was $14.4 million, with management estimating that the majority of the $6.5 million in bookings will convert to revenue in 2020 [144]. Cost and Profitability - Cost of sales decreased by 17% to $2,446,455 in Q3 2020 from $2,957,865 in Q3 2019, primarily due to reduced direct material and travel costs [131]. - Gross profit increased by 6% to $3,967,266 in Q3 2020, with a gross profit margin of 61.9%, compared to 55.9% in Q3 2019 [132]. - The gross profit margin for the nine months ended September 30, 2020 was 57.0%, compared to 55.2% for the same period in 2019 [132]. - Adjusted EBITDA increased by $231,592, or 17%, to $1,593,745 for the three months ended September 30, 2020, and increased by $276,528, or 82%, to $615,485 for the nine months ended September 30, 2020 [139]. Operating Performance - Operating expenses rose by 10% to $2,747,993 in Q3 2020, mainly due to a $266,000 impairment in the investment in TEC [133]. - Operating income for Q3 2020 was $1,219,273, a decrease of 2% from $1,246,468 in Q3 2019 [134]. - Operating loss for the nine months ended September 30, 2020 was $114,549, compared to an operating loss of $94,114 for the same period in 2019, an increase of 22% [134]. Net Income and Taxation - Net income decreased by $69,023, or 7%, to $868,084 for the three months ended September 30, 2020, and net loss increased by $113,060, or 1187%, to $122,586 for the nine months ended September 30, 2020 [137]. - Provision for income taxes increased by $7,154, or 2%, to $354,941 for the three months ended September 30, 2020, and increased by $16,928, or 72%, to $40,467 for the nine months ended September 30, 2020 [136]. Cash Flow and Financial Position - Cash and cash equivalents increased to $4,097,484 as of September 30, 2020, compared to $1,415,091 as of December 31, 2019 [139]. - Net cash used in operating activities was $166,900 for the nine months ended September 30, 2020, compared to net cash provided of $283,356 for the same period in 2019 [140]. - Net cash provided by investing activities was $1,530,034 for the nine months ended September 30, 2020, compared to $928,113 for the same period in 2019 [141]. - Net cash provided by financing activities was $1,319,259 for the nine months ended September 30, 2020, compared to net cash used of $334,138 for the same period in 2019 [142]. - The company believes its current capital resources will be adequate for more than 12 months but is open to raising additional funds for expansion and market opportunities [146]. Strategic Decisions - The company has suspended its stock repurchase program due to uncertainties arising from the COVID-19 pandemic [129].