VirTra(US:VTSI)2021-11-15 21:16Financial Performance - Revenues for Q3 2021 were $6,093,263, a decrease of 5% compared to $6,413,721 in Q3 2020, while revenues for the nine months ended September 30, 2021, increased by 27% to $15,790,364 from $12,521,663 in the same period in 2020[104]. - Cost of sales for Q3 2021 increased by 32% to $3,217,911 compared to $2,446,455 in Q3 2020, and for the nine months ended September 30, 2021, it rose by 34% to $7,211,807 from $5,381,403 in the same period in 2020[105]. - Gross profit for Q3 2021 was $2,875,352, a decrease of 28% from $3,967,266 in Q3 2020, while gross profit for the nine months ended September 30, 2021, increased by 20% to $8,578,557 from $7,140,260 in the same period in 2020[106]. - Operating income for Q3 2021 was $265,580, a decrease of 78% from $1,219,273 in Q3 2020, while operating income for the nine months ended September 30, 2021, was $1,650,403 compared to an operating loss of $114,549 in the same period in 2020[108]. - Net income for the three months ended September 30, 2021, was $1,342,972, a 55% increase from $868,084 in the same period in 2020[111]. - For the nine months ended September 30, 2021, net income was $2,527,494, compared to a net loss of $122,586 in 2020, marking a 2162% increase[111]. - Adjusted EBITDA for the three months ended September 30, 2021, was $519,646, a decrease of 67% from $1,593,745 in the same period in 2020[112]. Cash Flow and Investments - The company had cash and cash equivalents of $21,545,843 as of September 30, 2021, compared to $6,841,984 as of December 31, 2020[112]. - Net cash provided by operating activities was $1,362,626 for the nine months ended September 30, 2021, compared to a net cash used of $166,900 in the same period in 2020[113]. - Net cash used in investing activities was $12,035,043 for the nine months ended September 30, 2021, compared to net cash provided of $1,530,034 in 2020[114]. - Net cash provided by financing activities was $25,376,276 for the nine months ended September 30, 2021, significantly up from $1,319,259 in 2020[115]. Market Strategy and Future Plans - The company plans to expand its market share by developing and marketing effective simulators, aiming for disciplined growth and increased working capital[100]. - The company intends to broaden its total addressable market through new marketing strategies and product offerings to attract a wider range of customers[100]. - The company is open to partnerships and acquisitions to enhance efficiency and optimize long-term growth for shareholders[100]. - The company has suspended its stock repurchase program due to uncertainties arising from the COVID-19 pandemic, which has also led to reduced customer shipments and installations[103]. Backlog and Bookings - The company received bookings totaling $11.0 million for the three months ended September 30, 2021, and $24.4 million for the nine months ended September 30, 2021[117]. - As of September 30, 2021, the company's backlog was $21.7 million, with expectations for conversion to revenue in 2021 and early 2022[117]. Capital Resources - The company believes its current capital resources will be adequate for more than 12 months, but is open to raising additional funds for expansion[118].