VirTra(VTSI)2025-03-27 20:48Financial Performance - Total revenue for the fourth quarter was $5.4 million, a decrease of 50% compared to $10.9 million in the prior year period[3]. - For the full year 2024, total revenue was $26.4 million, a decline of 32% from $38.8 million in 2023[10]. - Total revenue for 2024 decreased to $26,350,819 from $38,791,337 in 2023, representing a decline of approximately 32%[30]. - Gross profit for the fourth quarter was $3.7 million, representing a gross margin of 68.5%, down from 84.4% in the prior year[3]. - Gross profit for 2024 was $19,412,515, down from $27,413,073 in 2023, indicating a decrease of about 29%[30]. - Net loss for the fourth quarter was $(0.9) million, or $(0.08) per diluted share, compared to net income of $3.5 million, or $0.32 per diluted share, in the fourth quarter of 2023[15]. - Net income for 2024 was $1,363,681, a significant drop from $9,150,835 in 2023, reflecting a decline of approximately 85%[30]. - Adjusted EBITDA for the fourth quarter was $(1.8) million, compared to $3.0 million in the fourth quarter of 2023[16]. Cash and Liquidity - Cash and cash equivalents were $18.0 million at December 31, 2024, providing a solid liquidity position[18]. - Cash and cash equivalents at the end of 2024 were $18,040,827, down from $18,849,842 at the end of 2023, a decrease of approximately 4%[32]. - The company reported a net cash provided by operating activities of $1,257,266 in 2024, down from $6,682,616 in 2023, a decline of approximately 81%[32]. Backlog and Bookings - Fourth quarter bookings increased by 37% sequentially to $12.2 million, with a significant portion recorded in December, positioning the company for revenue conversion in early 2025[6]. - Year-end backlog expanded to $22.0 million as of December 31, 2024, reflecting continued sales momentum despite federal funding delays[6]. Expenses and Liabilities - Operating expenses increased slightly to $17,416,184 in 2024 from $17,029,508 in 2023, showing an increase of about 2%[30]. - Total liabilities decreased to $19,762,198 in 2024 from $27,012,175 in 2023, representing a reduction of approximately 27%[30]. Research and Development - Research and development expenses increased to $3,003,302 in 2024 from $2,794,314 in 2023, an increase of about 7%[30]. Assets - Total assets decreased to $65,453,086 in 2024 from $70,382,019 in 2023, a decline of about 7%[30]. Federal Funding and Growth Outlook - The company is focused on expanding its role in federal law enforcement training initiatives and has secured contracts in Europe and Latin America[5]. - The company anticipates continued variability in federal funding cycles but remains optimistic about long-term growth in tactical training needs[9]. Share Information - The weighted average shares outstanding for basic shares increased to 11,162,917 in 2024 from 10,958,448 in 2023, an increase of about 2%[30].