VirTra(US:VTSI)2024-05-14 20:05Financial Performance - Total revenue for Q1 2024 was $8.1 million, a decrease of 19% from $10.0 million in Q1 2023[3]. - Gross profit was $5.5 million, down 21% from $6.9 million in the prior year, with a gross margin of 67% compared to 69%[3][9]. - Net income decreased to $1.2 million, or $0.11 per diluted share, compared to $2.9 million, or $0.27 per diluted share in Q1 2023[3][11]. - Adjusted EBITDA for Q1 2024 was $1.9 million, a decline of 52% from $4.0 million in the same period last year[3][12]. - Total revenue for the three months ended March 31, 2024, was $8,094,398, a decrease of 19.3% compared to $10,026,935 for the same period in 2023[23]. - Gross profit for the same period was $5,462,141, down from $6,948,938, reflecting a gross margin decrease[23]. - Net income for Q1 2024 was $1,216,173, a decline of 58.8% from $2,946,373 in Q1 2023[23]. - Operating expenses increased to $4,063,802 in Q1 2024, compared to $3,477,633 in Q1 2023, primarily due to higher general and administrative costs[23]. Operational Highlights - The company maintained robust working capital of $33.2 million, supporting operational agility and growth initiatives[5]. - The upcoming launch of the V-XR training platform is expected to expand market reach into healthcare and education sectors[5][6]. - Recurring revenue streams, including the STEP program, services, and warranties, accounted for 23% of total revenue in Q1 2024[14]. - The company is focused on improving bookings performance and stabilizing backlog amidst order seasonality[14]. Expense Management - Net operating expenses increased by 17% to $4.1 million, driven by higher payroll and IT spending[10]. - Research and development expenses were $693,380 for Q1 2024, slightly down from $766,296 in Q1 2023, indicating a focus on cost management[23]. Cash Flow and Liquidity - Cash and cash equivalents rose to $22,415,177 as of March 31, 2024, up from $18,849,842 at the end of 2023, indicating improved liquidity[25]. - The company reported net cash provided by operating activities of $5,136,509 for Q1 2024, significantly higher than $978,603 in Q1 2023[25]. Liabilities and Assets - Total current liabilities decreased to $14,341,699 from $15,754,772, reflecting a reduction in accounts payable and deferred revenue[23]. - The company’s total assets decreased slightly to $69,376,178 as of March 31, 2024, from $69,634,042 at the end of 2023[21]. Revenue Challenges - The decrease in revenue was attributed to delays in federal funding due to the U.S. government's continuing resolution[8].