VirTra(US:VTSI)2025-05-12 20:05Financial Performance - Net sales for the three months ended March 31, 2025, were $7,160,247, a decrease of $186,174 or 3% compared to $7,346,421 for the same period in 2024[79] - Cost of sales decreased by $668,890 or 25% to $1,963,367 for the three months ended March 31, 2025, compared to $2,632,257 for the same period in 2024[80] - Gross profit increased by $482,716 or 10% to $5,196,880 for the three months ended March 31, 2025, with a gross profit margin of 73% compared to 64% in 2024[81] - Operating income for the three months ended March 31, 2025, was $1,367,803, an increase of $717,441 or 110% compared to $650,362 for the same period in 2024[84] - Net income for the three months ended March 31, 2025, was $1,264,060, an increase of $795,864 or 170% compared to a restated net income of $468,196 for the same period in 2024[87] - Adjusted EBITDA for the three months ended March 31, 2025, was $1,703,313, an increase of $304,665 or 22% compared to $1,398,648 for the same period in 2024[87] Cash Flow and Working Capital - The company had cash and cash equivalents of $17,612,626 as of March 31, 2025, compared to $18,040,827 as of December 31, 2024[88] - Working capital increased to $35,257,860 as of March 31, 2025, from $34,826,680 as of December 31, 2024[88] - Net cash provided by operating activities was $65,691 for Q1 2025, a significant decrease from $5,136,509 in Q1 2024[89] - Net cash used in investing activities decreased to $428,371 in Q1 2025 from $1,546,772 in Q1 2024[90] Market and Product Development - The company plans to expand its product offerings and market share by entering complementary markets such as hospitals and private security[77] - The V-300™ simulator features a 300-degree immersive training environment and supports 15 individual firing lanes, enhancing decision-making simulation and tactical firearms training[77] Bookings and Backlog - Bookings totaled $6.4 million for Q1 2025, with an estimated $5 million in renewable STEP contract options still outstanding[91] - The backlog as of March 31, 2025, was $21.2 million, including $9.9 million in Capital, $5.8 million in Service, and $5.5 million in STEP[92] - Management estimates that most new capital bookings in Q1 2025 will convert to revenue within the same year[93] Future Outlook and Funding - The company is open to raising additional funds from capital markets to expand production capacity and enhance marketing efforts[95] - There is uncertainty regarding the impact of the new federal administration on bookings for the remainder of 2025, with budget cuts and frozen grants discussed[94] - The company has no off-balance sheet arrangements that could materially affect its financial condition as of March 31, 2025[98]