Financial Performance - Revenues for the year ended December 31, 2024, were $26,350,819, a decrease of $12,440,518 or 32% compared to $38,791,337 in 2023, primarily due to delayed contract signings [105]. - Gross profit for 2024 was $19,412,515, down $8,000,558 or 29% from $27,413,073 in 2023, with a gross profit margin of 74% in 2024 compared to 71% in 2023 [107]. - Net income for 2024 was $1,363,681, representing a decrease of $7,787,154 or 85% from $9,150,835 in 2023, largely driven by the revenue decline [111]. - Adjusted EBITDA for 2024 was $2,926,169, a decrease of $9,447,710 or 76% from $12,373,879 in 2023 [112]. - Cash and cash equivalents as of December 31, 2024, were $18,040,827, down from $18,849,842 in 2023 [112]. - Net cash provided by operating activities decreased to $1,257,266 in 2024 from $6,682,616 in 2023, primarily due to lower net income [113]. Operating Expenses - Operating expenses increased by $386,676 or 2% to $17,416,184 in 2024, with R&D expenses rising by $208,988 or 7% [108]. Market Strategy - The Company plans to broaden its product offerings and enter new market segments through innovative products and services [101]. - VirTra aims to expand its total addressable market by targeting new customer types and enhancing marketing efforts [101]. - The Company is open to partnerships and acquisitions to optimize long-term growth and shareholder value [102]. Bookings and Backlog - The Company received bookings totaling $12.2 million for Q4 2024, bringing total bookings for the year to $29.6 million [117]. - The Company has a backlog of $22 million as of December 31, 2024, which includes $10.6 million in Capital, $6.6 million in Service, and $4.8 million in STEP [118]. - Management estimates that the majority of new bookings from Q4 2024 will convert to revenue in 2025, although contract terms and install dates may change [119]. - There are $5.3 million in renewable STEP contract options outstanding, with an expected 95% exercise rate based on current renewal rates [117]. - The Company has strengthened booking qualifications by ensuring STEP contracts are recorded for their full three-year value, adding $1.9 million to bookings [117]. Funding and Financial Strategy - The Company is open to raising additional funds from capital markets to expand production capacity and enhance sales and marketing efforts, but there is no assurance that financing will be available [121]. Regulatory and Economic Environment - The impact of the new federal administration on bookings for 2025 is uncertain, with discussions of budget cuts and frozen federal funding observed [120]. Accounting and Warranty - Revenue recognition is based on ASC 606, with revenue recognized when performance obligations are satisfied [129]. - The Company provides a one-year warranty on products, estimating warranty liabilities based on historical claims data [138]. - The Company employs a conservative approach to bad debt reserves, calculating a percentage of all outstanding accounts receivable [125].

Core Insights - VirTra, Inc. reported a significant decline in revenue for both the fourth quarter and full year of 2024, attributed to federal budget delays and grant disbursement pauses impacting contract execution [4][11][12] - Despite the revenue decline, the company experienced strong bookings momentum, with a backlog expanding to $22.0 million by the end of 2024, indicating potential for future revenue growth [7][8][19] Financial Performance - Total revenue for Q4 2024 was $5.4 million, down 50% from $10.9 million in Q4 2023, while full-year revenue decreased by 32% to $26.4 million from $38.8 million [4][12] - Gross profit for Q4 2024 was $3.7 million, representing a gross margin of 68.5%, compared to $9.2 million and 84.4% in Q4 2023 [4][12] - The company reported a net loss of $0.9 million in Q4 2024, compared to a net income of $3.5 million in the same quarter of the previous year [4][16] Operational Highlights - Bookings for Q4 2024 totaled $12.2 million, a 37% increase from Q3 2024, with a significant portion recorded in December, setting the stage for revenue conversion in early 2025 [8][19] - The company secured contracts with government and law enforcement agencies in Europe and Latin America, enhancing its international presence [8] - VirTra completed key milestones in the U.S. Army's Integrated Visual Augmentation System (IVAS) program, finishing the final development phase ahead of schedule [9] Management Commentary - The CEO emphasized the importance of navigating the federal funding environment and the company's efforts to advocate for clearer funding structures for law enforcement training [7] - The CFO highlighted the strong Q4 bookings and the growing backlog, which positions the company well for future revenue growth despite current challenges [19] Future Outlook - The company anticipates continued variability in federal funding cycles but remains optimistic about the long-term need for de-escalation and tactical training [11] - Management is focused on improving operational efficiency and converting backlog into revenue as market conditions evolve [19]

Company Performance - VirTra, Inc. (VTSI) closed at $5.16, reflecting a +0.39% change from the previous day, outperforming the S&P 500's daily loss of 1.07% [1] - The company's stock has decreased by 16.42% over the past month, underperforming the Aerospace sector's gain of 2.24% and the S&P 500's loss of 7.03% [1] Earnings Expectations - The upcoming earnings report for VirTra, Inc. is anticipated to show an EPS of $0.07, which represents a 72% decline from the same quarter last year [2] - Revenue is projected to be $8.09 million, indicating a 20.06% decrease compared to the previous year’s quarter [2] Analyst Estimates - Recent adjustments to analyst estimates for VirTra, Inc. are crucial as they reflect near-term business trends, with positive revisions being a favorable sign for the company's outlook [3] - The Zacks Rank system, which assesses estimate changes, indicates that stocks with a 1 rating have historically delivered an average annual return of +25% since 1988 [4][5] Industry Context - VirTra, Inc. operates within the Electronics - Military industry, which is part of the Aerospace sector and currently holds a Zacks Industry Rank of 82, placing it in the top 33% of over 250 industries [6] - The strength of the industry is measured by the Zacks Industry Rank, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [6]

Core Viewpoint - VirTra, Inc. will hold a conference call on March 27, 2025, to discuss its financial results for Q4 and the full year ended December 31, 2024 [1] Group 1: Conference Call Details - The conference call is scheduled for March 27, 2025, at 4:30 p.m. Eastern time [2] - U.S. dial-in number is 1-877-407-9208, and international dial-in number is 1-201-493-6784 [2] - A replay of the call will be available after 7:30 p.m. Eastern time on the same day through April 10, 2025 [3] Group 2: Company Overview - VirTra is a global provider of judgmental use of force training simulators and firearms training simulators for law enforcement, military, educational, and commercial markets [3] - The company's technologies and software provide training for de-escalation, judgmental use-of-force, and marksmanship, simulating real-world situations [3] - VirTra's mission is to save and improve lives worldwide through effective virtual reality and simulator technology [3]

Company Overview - VirTra, Inc. (VTSI) closed at $6.03, reflecting a -0.82% change from the previous day's closing price, which is less than the S&P 500's daily loss of 0.47% [1] - Over the past month, shares of VirTra, Inc. have decreased by 4.55%, while the Aerospace sector and the S&P 500 have lost 5.12% and 1.78%, respectively [1] Financial Performance - The upcoming financial results for VirTra, Inc. are anticipated to show an EPS of $0.07, indicating a 72% decline compared to the same quarter last year [2] - Revenue is projected to be $8.09 million, representing a 20.06% decrease from the equivalent quarter last year [2] Analyst Insights - Recent revisions to analyst forecasts for VirTra, Inc. are important as they reflect changes in near-term business trends, with upward revisions indicating analysts' positive outlook on the company's operations and profitability [3] - The Zacks Rank system, which incorporates estimate changes, is utilized to gauge stock performance, with VirTra, Inc. currently holding a Zacks Rank of 3 (Hold) [5] Valuation Metrics - VirTra, Inc. has a Forward P/E ratio of 10.48, which aligns with the industry's average Forward P/E of 10.48 [6] - The Electronics - Military industry, part of the Aerospace sector, holds a Zacks Industry Rank of 81, placing it in the top 33% of over 250 industries [6] Industry Performance - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [7]

Company Performance - VirTra, Inc. (VTSI) closed at $6.10, reflecting a -1.93% change from the previous day's close, underperforming the S&P 500's 0.03% gain [1] - Over the past month, shares of VirTra, Inc. have decreased by 5.61%, while the Aerospace sector gained 4.66% and the S&P 500 increased by 4.19% [1] Upcoming Earnings - The upcoming earnings release is anticipated, with an expected EPS of $0.07, indicating a 72% decline compared to the same quarter last year [2] - Quarterly revenue is projected to be $8.09 million, down 20.06% from the year-ago period [2] Analyst Estimates - Recent modifications to analyst estimates for VirTra, Inc. are crucial for investors, as they reflect short-term business trends [3] - Positive estimate revisions indicate analyst optimism regarding the company's business and profitability [3] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks VirTra, Inc. as 3 (Hold) [5] - The Forward P/E ratio for VirTra, Inc. is 10.72, aligning with the industry average, indicating no significant deviation from the group [6] Industry Context - The Electronics - Military industry, part of the Aerospace sector, holds a Zacks Industry Rank of 86, placing it in the top 35% of over 250 industries [6] - The Zacks Industry Rank suggests that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were $7.5 million, up 23% from Q2 2024 and in line with $7.6 million in Q3 2023 [6] - Q3 bookings increased to $8.9 million, up 51% from $5.9 million in Q2 2024 and up 22% from $7.3 million in Q3 2023 [6] - Gross margins improved to 73% from 71% in Q3 2023, reflecting operational efficiencies [8][25] - 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 the prior year [29] Business Line Data and Key Metrics Changes - Government revenue decreased to $6.9 million from $7.3 million in the prior year, impacted by federal funding delays [23] - International revenue increased to $0.4 million from $0.2 million in 2023, with an expanding international pipeline [23] Market Data and Key Metrics Changes - The company is focusing on expanding its international reseller network, particularly in Canada, South America, and Europe [9] - The V-XR platform is being introduced to meet diverse training needs across various sectors, including healthcare and education [12][14] Company Strategy and Development Direction - The V-XR platform is expected to be a cornerstone of the company's growth strategy, enhancing training capabilities for law enforcement and other sectors [14] - The company is investing in high-quality training content to maintain a competitive advantage [14] - Strategic investments in sales and marketing are being made to support ongoing growth initiatives [27] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring macroeconomic factors that could affect customer funding, with December's budget discussions being pivotal [22] - The company is well-prepared to respond to funding opportunities as they arise, despite potential near-term fluctuations [36] Other Important Information - The company welcomed two new members to its Board of Directors, enhancing governance and expertise in military and law enforcement training [18][19] - Operational improvements have been implemented, including a new manufacturing facility and ERP system, to support increased demand [20][21] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded with management expressing gratitude for shareholder support [38][40]

Core Viewpoint - VirTra, Inc. reported quarterly earnings of $0.05 per share, matching the Zacks Consensus Estimate, but down from $0.15 per share a year ago [1] - The company posted revenues of $7.48 million for the quarter, exceeding the Zacks Consensus Estimate by 9.98%, but slightly down from $7.56 million year-over-year [2] Financial Performance - Earnings per share (EPS) for the latest quarter was $0.05, consistent with estimates, while the previous quarter's EPS was $0.11, which was a 10% surprise over the expected $0.10 [1] - The company has surpassed consensus EPS estimates two times in the last four quarters [1] - Revenue for the quarter was $7.48 million, which is a decrease from $7.56 million year-over-year, but has topped consensus revenue estimates two times in the last four quarters [2] Stock Performance - VirTra shares have declined approximately 26.4% since the beginning of the year, contrasting with the S&P 500's gain of 25.8% [3] - The current Zacks Rank for VirTra is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $8.09 million, and for the current fiscal year, it is $0.34 on revenues of $29.07 million [7] - The outlook for the Electronics - Military industry, where VirTra operates, is currently in the top 35% of Zacks industries, suggesting a favorable environment for stock performance [8]

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].

Financial Performance - Net sales for Q3 2024 were $7,484,269, a decrease of 1% from $7,561,582 in Q3 2023, and for the nine months ended September 30, 2024, net sales were $21,653,707, down 22% from $27,925,420 in the same period of 2023[94]. - Gross profit for Q3 2024 was $5,497,973, an increase of 2% from $5,386,074 in Q3 2023, while gross profit for the nine months ended September 30, 2024, was $16,484,729, a decrease of 10% from $18,255,712 in the same period of 2023[96]. - Operating income for Q3 2024 was $755,632, a decrease of 55% from $1,669,611 in Q3 2023, and for the nine months ended September 30, 2024, operating income was $3,285,392, down 54% from $7,069,523 in the same period of 2023[98]. - Net income for Q3 2024 was $583,101, a decrease of 64% from $1,634,790 in Q3 2023, and for the nine months ended September 30, 2024, net income was $3,000,002, down 47% from $5,607,804 in the same period of 2023[101]. - Cost of sales for Q3 2024 was $1,986,296, a decrease of 9% from $2,175,508 in Q3 2023, and for the nine months ended September 30, 2024, cost of sales was $5,168,978, a decrease of 47% from $9,669,708 in the same period of 2023[95]. - Operating expenses for Q3 2024 were $4,742,341, an increase of 28% from $3,716,463 in Q3 2023, and for the nine months ended September 30, 2024, operating expenses were $13,199,337, an increase of 18% from $11,186,189 in the same period of 2023[97]. - Adjusted EBITDA for the three months ended September 30, 2024, was $1,082,826, down 62% from $2,867,159 in the prior year[104]. Profitability Metrics - The gross profit margin for Q3 2024 was 73%, compared to 71% in Q3 2023, and for the nine months ended September 30, 2024, the gross profit margin was 76%, compared to 65% in the same period of 2023[96]. - Net income for the three months ended September 30, 2024, was $583,101, a decrease of 64% compared to $1,634,790 for the same period in 2023[104]. Cash Flow and Capital Resources - Cash and cash equivalents as of September 30, 2024, were $19,668,455, an increase from $18,849,842 as of December 31, 2023[104]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $2,669,269, compared to $4,365,751 for the same period in 2023[105]. - Net cash used in investing activities was $1,692,249 for the nine months ended September 30, 2024, compared to $512,249 for the same period in 2023[106]. - The company had working capital of $35,984,477 as of September 30, 2024, up from $33,240,516 as of December 31, 2023[104]. - Management believes current capital resources will be adequate for more than 12 months, but is open to raising additional funds for expansion[109]. Business Strategy and Market Outlook - The company plans to expand its market share by developing and marketing effective simulators, adding staff to meet expected demand, and increasing its total addressable market through new marketing and product offerings[81][82]. - The company is open to partnerships and acquisitions to optimize long-term growth and shareholder value[84]. - The introduction of new products, such as the V-XR extended reality headset-based training solution, is part of the company's strategy to innovate and broaden its product offerings[94]. - The company plans to convert the majority of new capital bookings received in the first nine months of 2024 into revenue within the same year[108]. - The company received bookings totaling $8.9 million in the three months ending September 30, 2024, and $17.7 million for the nine months ended September 30, 2024[108]. - As of September 30, 2024, the company's backlog was $15.2 million, including $7 million in capital and $6.2 million in service and warranties[108].