VirTra(VTSI) - 2024 Q3 - Quarterly Results

Financial Performance - Q3 2024 bookings increased by 51% quarter-over-quarter to $8.9 million, and a 22% year-over-year increase from $7.3 million in Q3 2023[2]. - Total revenue for Q3 2024 was $7.5 million, a slight decrease of 1% from $7.6 million in Q3 2023[7]. - Net income for Q3 2024 was $0.6 million, or $0.05 per diluted share, compared to $1.6 million, or $0.15 per diluted share, in Q3 2023[10]. - Adjusted EBITDA for Q3 2024 was $1.1 million, down 62% from $2.9 million in Q3 2023[10][16]. - Total revenue for the three months ended September 30, 2024, was $7,484,269, a decrease of 1.02% from $7,561,582 in the same period of 2023[19]. - Net income for the three months ended September 30, 2024, was $583,101, down 64.3% from $1,634,790 in the same period of 2023[19]. - Net income for the nine months ended September 30, 2024, was $3,000,002, a decrease from $5,607,804 in the same period of 2023, representing a decline of approximately 46.4%[20]. Cost and Expenses - Gross margin improved to 73%, up from 71% in the prior year period, reflecting a lower cost of sales[2][8]. - Net operating expenses increased by 28% to $4.7 million, driven by investments in staff and expanded sales and marketing efforts[9]. - Operating expenses increased to $4,742,341 for the three months ended September 30, 2024, compared to $3,716,463 in the prior year, representing a rise of 27.5%[19]. - Research and development expenses for the three months ended September 30, 2024, were $724,757, up from $487,388 in the same period of 2023, indicating a growth of 48.6%[19]. Cash Flow and Assets - Cash and cash equivalents as of September 30, 2024, were $19,668,455, an increase from $18,849,842 as of December 31, 2023[18]. - Total current assets decreased to $44,942,232 as of September 30, 2024, from $48,995,288 as of December 31, 2023, a decline of 8.3%[18]. - Accounts receivable increased significantly to $8,661,418 compared to a negative $11,131,628 in the previous year, indicating improved collection efforts[20]. - Cash and restricted cash at the end of the period totaled $19,668,455, up from $17,201,178, marking an increase of approximately 14.3%[20]. - Net cash provided by operating activities decreased to $2,669,269 from $4,365,751, reflecting a decline of about 38.7% year-over-year[20]. - Net cash used in investing activities rose to $1,692,249 from $512,249, indicating increased investment in property and equipment[20]. - Net cash used in financing activities was $158,408, slightly higher than $135,921 in the previous year, reflecting ongoing financing efforts[20]. - The company experienced a net increase in cash of $818,612, a significant drop from $3,717,581 in the same period last year, indicating tighter cash flow management[20]. Liabilities and Equity - Total liabilities decreased significantly to $19,918,340 as of September 30, 2024, from $27,012,175 as of December 31, 2023, a reduction of 26.1%[18]. - The company’s total stockholders' equity increased to $46,150,037 as of September 30, 2024, from $42,621,867 as of December 31, 2023, reflecting a growth of 8.5%[18]. - The company reported an increase in accumulated income to $13,662,995 as of September 30, 2024, compared to $10,662,993 as of December 31, 2023[18]. Strategic Initiatives - The launch of the new V-XR extended reality solution is expected to broaden offerings and open avenues into adjacent markets such as healthcare and education[3]. - The company is optimistic about capitalizing on emerging opportunities as it moves through Q4 and into 2025, despite macroeconomic uncertainties[6]. - A strong backlog of long-term contracts reflects continued demand and provides a steady revenue foundation[11]. Other Financial Metrics - Interest paid during the period was $182,419, with taxes paid amounting to $5,315,442, indicating ongoing financial obligations[20]. - The company issued 20,151 RSUs during the period, down from 41,903 in the previous year, reflecting a decrease in equity compensation[20]. - Inventory net increased by $1,507,068, compared to an increase of $1,183,302 in the prior year, suggesting a potential buildup of stock[20].