VirTra(US:VTSI)2025-11-10 21:06Financial Performance - Net sales for Q3 2025 were $5,349,993, a decrease of 29% from $7,484,269 in Q3 2024[89] - Gross profit for Q3 2025 was $3,518,024, down 36% from $5,497,973 in Q3 2024, with a gross profit margin of 66% compared to 73% in the prior year[92] - Operating loss for Q3 2025 was $450,160, a decrease of 160% from an operating income of $755,632 in Q3 2024[94] - Net loss for Q3 2025 was $388,567, compared to a net income of $583,101 in Q3 2024, reflecting a decrease of 167%[97] - Adjusted EBITDA for the three months ended September 30, 2025, was $91,438, a decrease of 92% compared to $1,082,826 for the same period in 2024[99] - The company reported a decrease in total revenues for the nine months ended September 30, 2025, totaling $19,489,178, down 7% from $20,905,730 in the same period of 2024[89] Operating Expenses - Cost of sales for Q3 2025 was $1,831,969, an 8% decrease from $1,986,296 in Q3 2024[90] - Operating expenses for Q3 2025 were $3,968,184, down 16% from $4,742,341 in Q3 2024, due to efforts to lower overhead costs[93] - The provision for income tax for Q3 2025 was $28,090, an 86% decrease from $208,000 in Q3 2024[96] Cash Flow and Liquidity - Net cash provided by operating activities increased to $6,083,776 for the nine months ended September 30, 2025, up from $2,165,918 in 2024[101] - Cash and cash equivalents as of September 30, 2025, were $20,767,105, an increase from $18,040,827 as of December 31, 2024[100] - Net cash used in investing activities was $3,164,442 for the nine months ended September 30, 2025, compared to $1,692,249 for the same period in 2024[102] - Liquidity is adequate for more than 12 months, but the Company is open to raising additional funds for expansion[108] Bookings and Backlog - The Company received bookings totaling $8.4 million for the three months ended September 30, 2025, and $19.4 million for the nine months ended September 30, 2025[104] - As of September 30, 2025, the Company's backlog was $21.9 million, including $10.2 million in Capital, $5.3 million in Service, and $6.4 million in STEP[105] - The Company estimates that approximately $3.2 million in renewable STEP contract options are still outstanding, with a 95% expected exercise rate[104] Future Outlook - The Company plans to expand its product offerings and market share by entering complementary markets such as hospitals and private security[88] - The Company anticipates potential impacts on bookings due to the government shutdown and changes in federal administration[107] - The V-300™ simulator features a 300-degree immersive training environment, supporting 15 individual firing lanes, enhancing decision-making training[88]