Tempe, Arizona (March 31, 2015)VirTra Systems (OTC Pink: VTSI), a leading provider of firearms simulators to military, law enforcement agencies and other organizations, today announced the release of its year end 2014 audited financial statements.  Included with the corporate financial statements for the year ended December 31, 2014, VirTra has released the report of its independent registered public accounting firm, Semple Marchal & Cooper, LLP.  The audited financial statements are available on VirTra’s website and here.

Financial Summary:

  • Net sales were a record $9.9 million for the year ending December 31, 2014, compared to the previous year’s sales of $9.8 million.
  • Gross margin for 2014 was 56% of net sales, compared to 66% last year. The primary drivers for the decrease were client-paid customization projects, with some personnel expenses recorded in cost of products sold versus selling, general and administrative expenses (SG&A).
  • SG&A expenses of $4.2 million in 2014 decreased 13%, from $4.9 million in 2013. As a percent of revenue, SG&A was 43% for 2014 compared to 50% in the prior year.  The change is due to the recording of certain customization project personnel expenses in cost of products sold.
  • Income from operations was $1.3 million for the year ending December 31, 2014. Net income for the current year is 13% of net sales.
  • Stockholders’ equity increased to $2.7 million at December 31, 2014, compared to $1.4 million at December 31, 2013. The company had no debt as of December 31, 2014.
  • Throughout 2014, the company used $0.3 million in cash from operating activities. Cash and cash equivalents were $1.9 million at the end of 2014, down from $2.4 million at December 31, 2013.

Other Significant Events:

  • During the second half of 2014, the company signed two new high-profile clients: the Los Angeles County Sheriff’s Department, on October 17, 2014, and the U.S. Department of Homeland Security on September 22, 2014.
  • During third quarter 2014, VirTra received a record $10.7 million in purchase orders.

Mark Skidmore, Vice President and Chief Accounting Officer for VirTra, said, “The fourth quarter of 2014 was one of our best quarters ever, as the company generated $3.6 million in revenues and $0.8 million in income from operations.   Income from operations for the year declined compared to 2013 primarily as a result of expenditures related to increased investment in personnel, product development, and sales efforts for domestic and international projects.”

Bob Ferris, Chairman and Chief Executive Officer of VirTra, commented, “VirTra laid a strong foundation for growth during 2014 in a number of areas.  First, several of the largest and most influential law enforcement agencies selected VirTra as a vendor, propelling us to record financial results.  Second, VirTra aggressively pursued business development work in conjunction with highly respected international distributors.  Third, we increased the staff, investment dollars and intensity of pace in every area of product development at VirTra.  Finally, we negotiated a co-venture agreement with Modern Round for VirTra’s technology to power a commercial market simulator-based shooting concept with industry veterans.  Our shareholders enjoyed a 100% increase in our stock price during 2014 and we believe our strong position in multiple markets gives us potential for sustained growth.”

About VirTra Systems

VirTra is a global leading provider of the world’s most realistic and effective shooting simulators. VirTra is the higher standard in firearms training simulators, offering a variety of simulator platforms, powerful gas-powered recoil kits and the patented Threat-Fire™ simulated hostile return fire system.  VirTra’s products provide the very best simulation training available for personnel that are entrusted with lethal force and critical missions.  The Company’s common stock is not registered under the Securities Exchange Act of 1934 and the Company does not currently file periodic or other reports with the Securities and Exchange Commission.

www.VirTra.com

Forward-looking Statements 

This news release includes certain information that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are typically identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “proposed,” “planned,” “potential” and similar expressions, or are those, which, by their nature, refer to future events.  All statements, other than statements of historical fact, included herein, including statements about VirTra’s beliefs and expectations, are forward-looking statements.  Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information.  Although VirTra believes that such statements are reasonable, it can give no assurance that such forward-looking information will prove to be accurate.  VirTra cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors.  Accordingly, due to the risks, uncertainties and assumptions inherent in forward-looking information, readers and prospective investors in the Company’s securities should not place undue reliance on forward-looking information.  All forward-looking information contained in this press release is given as of the date hereof, is based upon the opinions and estimates of management and information available to management as at the date hereof and is subject to change.  The Company assumes no obligation to revise or update forward-looking information to reflect new circumstances, whether as a result of new information, future events or otherwise, except as required by law.

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BUSINESS 

“I GOTTA GET the guns,” Scott Digiralomo tells me over his shoulder as he leads me down the cinder block hallways of the Morris County Public Safety Training Academy in Morristown, New Jersey. Digiralomo, director of the county’s Department of Law and Public Safety, ducks into an empty room and, out of a large black safe, fetches an M4 rifle and a Glock.

At this point you should know that as a writer who works in Manhattan, lives in one of the yuppiest neighborhoods in Brooklyn, and gets panicky just passing by armed officers in the New York City subway, this is not how my days typically begin. And yet, no more than 30 minutes later, there I am, a Glock tucked into the holster on my right hip and a can of pepper spray in the left, cautiously approaching a woman in a white SUV who is blocking her ex-boyfriend’s driveway, refusing to let him and his new girlfriend leave.

“Get that crazy bitch out of here now!” yells the new girlfriend, standing in front of the house as I wander up the lawn. Before I can take another step, shots ring out from the SUV. I freeze, and a beat later, clumsily pull the weapon from my hip.

“Uh, put your hands up? And your weapon down? Please?” I say too politely, as if asking a waitress for another basket of bread. But it works. The shooter emerges from the car in a gray hoodie and jeans. She’s still screaming, but she drops the gun and falls to her knees, arms raised. In that instant, I’m pretty sure the situation’s under control, so I take a second to wonder what I’m supposed to do next.

And then she shoots me.

Behind me, Digiralomo is laughing, not because he’s some masochist who’s going to watch me bleed to death, but because the entire scenario, as you may have guessed, is a virtual reality simulation, and I—standing in the middle of the darkened room, surrounded by an array of screens, doing what has to be the world’s worst impersonation of a cop—look like a total tool.

But while this may have been little more than an exercise in embarrassment for me, Digiralomo assures me that this system, designed by a company called VirTra, is actually critical in helping police officers hone their skills as decision makers before they’re let out in the real world. Morris County installed the technology last November, smack dab in the middle of one of the most contentious periods in recent history between police and the public. And while Digiralomo says that wasn’t why the academy bought the roughly $300,000 system, it’s hard not to see the connection.

Not Can You Shoot But Should You

The fatal shooting of Michael Brown in Ferguson, Missouri, last summer cracked open the scab on one of our country’s oldest wounds. It fueled new conversations about centuries-old issues and exposed gaping rifts across the entire country, not only on the subject of whether Officer Darren Wilson was justified in shooting Brown, but on whether or not minorities living in the United States are safe in the hands of the police officers that are hired to protect them. No amount of technology will ever solve these deeply rooted societal issues. Systems like VirTra’s—so-called cave automatic virtual environment, or CAVE, systems—have been around for a while. But as President Obama and others call for more robust police training, training technology that can simulate a world more like the real one takes on an added urgency.

Today, in states like New Jersey where Digiralomo works, officers are required to re-qualify for the police force twice a year by testing their shooting accuracy on a gun range. While that demonstrates that officerscan use their weapons, it doesn’t necessarily help them understand whether they should.

“In a lot of cases like Ferguson, it’s not about whether or not the officer was accurate when they shot,” Digiralomo says. “The question comes down to the decision the officer made, and whether the officer should have used deadly force. A lot of that comes down to decision making.”

Systems like VirTra’s are designed with just that in mind. “We’re finding there’s a need for cities and national agencies to train at above minimum standards,” says Bob Ferris, CEO and founder of VirTra. “With this new technology, they can better prepare officers for use of force and the life and death situations that often make the headlines.”

Virtually Real Life

Ferris was early on the virtual reality bandwagon, launching VirTra in 1993 as an entertainment company that would run simulations at theme parks around the country. But after September 11, Ferris completely overhauled the business to focus on immersive police training, which required a total rethinking of the technology itself.

In the early days, VirTra started off making virtual reality goggles, not unlike the ones Oculus is now famous for, but when the company began working with law enforcement, Ferris realized this technology could do officers more harm than good.

VirTra V300
VIRTRA V-300™

“You want the officer to learn proper muscle memory, so in order to have the training apply at the highest level of effectiveness to real life encounters, you have to remove the head-mounted display, unless they’d use one in real life,” Ferris says. It’s also critical for officers to practice moving around space and interacting with one another, which would be severely inhibited if everyone were wearing goggles.

Instead, the system I tested out in Morris County, which is now being used at more than 200 training facilities around the world, consists of five large screens that surround a stage and five overhead projectors that cast lifesize videos onto the screens, giving the users the feeling that they’re standing in the center of a scene. The Glock on my hip was a real gun, but rather than being loaded with bullets, it’s loaded with carbon dioxide, causing the gun to recoil each time I pulled the trigger. At the end of the gun is a laser, which interacts with the cameras overhead to detect whether or not a shot is accurate. The system also comes with a wearable device that gives officers a small electrical shock to simulate they’ve been shot. “Oh yeah,” Digiralomo says. “It hurts.”

Exposing Bias

But the most important part of the system is the content. The video of the woman in her ex-boyfriend’s driveway was just one of dozens of different scenarios that VirTra creates, ranging from routine traffic stops to school shootings. And like a good choose-your-own-adventure novel, trainers can manipulate what happens next, escalating the tension or diffuse the situation on screen as it’s happening based on what the officer in training says and does. In my case, for instance, Digiralomo could have made the shooter calm down, ending the scene right there. But since, of course, I was being a bit of a self-conscious baby about it, he let her shoot me.

Trainers can make a dog bark or a gate close in the distance. They can change the weapon at the last second, so instead of pulling a gun out, the suspect might pull out a bottle or a bat or nothing at all. This, Digiralomo says is essential. “One of the concerns we had was we don’t want to run every officer through here so that every single scenario they got, it was justified to use deadly force,” he says. “So we’ll run a few with deadly force, a few where they use pepper spray, a few where the person just complies and gives up.”

 Trainers can also create scenarios that challenge officers’ unconscious biases. For instance, in one video, a shooter is on the loose in a movie theater. As the officer surveys the scene, a black off-duty cop rushes through a door on the officer’s left with a gun in his hand. The trainer can run a scenario in which the officer’s badge is visible in his other hand or a scenario in which his badge is on his hip and not immediately apparent to the officer in training. According to Digiralomo, when the off-duty officer has the badge on his hip, the trainee kills him 80 percent of the time.

That’s why both Ferris and Digiralomo say having competent trainers operating this system and catching trainees’ mistakes is so important. “The instructor needs to go through what they did right and wrong, and it’s amazing how quickly officers are able to adapt and go from making decisions they regret to decisions they know are they best they’re able to make,” Ferris says.

A Better Place to Start

Of course, virtual reality can never be a true proxy for the real thing. For starters, officers know they’re not going to get shot and that the person on the other end of their trigger is just a projection. Another issue is that, because it’s all shot on video, the camera angle dictates how the officer moves through space, much like a video game does. And while the 300 degree view makes that experience immersive, it’s not completely realistic. As Eugene Fluri, a SWAT team commander, noted after running through one traffic stop scenario for me, “The angle of the video shows the officer right in front of the window, and I wouldn’t have done that. If he moved his hands, I would have moved, but where am I gonna go?”

You can’t call for backup, open doors, or handcuff someone. All that action is trapped on a screen. Still, watching Fluri navigate the movie theater scenario, knees bent, gun drawn, and basically putting me to shame, it’s easy to see the advantages to this method of training. As he moves through the space, Fluri interacts with the video, telling scared moviegoers, “Out this way, out this way!” and asking victims, “Where’s the person who shot you?” He’s rotating left to right and back again, rehearsing for the real thing. And when he stumbles upon the shooter in the parking lot outside, he repeatedly insists that he drop the gun, until finally, the shooter fires, and Fluri fires back, eventually killing him.

Afterward, if the demonstration hadn’t just been for my benefit, a trainer would have reviewed Fluri’s every move to decide whether he’d made the right call. “At what point do you shoot? How many times do you say put the gun down? Because he just killed a bunch of people and is refusing to go, are you justified?” Digiralomo says. “Those are all the questions we review afterward.”

Compare that to the gun range on the lower level of the Academy. It’s an expansive concrete void with little numbered corrals, at the end of which are faceless metal targets that have been pummeled with bullets over the years. There’s no space to run around, no judgement calls to be made, no nuance. Officers’ only job when they’re down here is to shoot and shoot and shoot, until they’ve proven they’re a good enough shot to keep their jobs. Given the complex web of historical and societal ills that have contributed to the current lack of faith between police and the public, it’d be unfair to say that this type of training alone is the problem. But it sure doesn’t seem like the solution.

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VirTra will hold its 2015 Annual Shareholders’ Meeting on Friday, May 1 in Tempe, Arizona at 1:00 p.m MST. VirTra has determined the close of business on March 25, 2015 as the record date for determining the shareholders entitled to vote at the Annual Shareholders’ Meeting. Notice of the meeting, full details and related materials will be mailed the first week of April.

PR Newswire

TEMPE, Ariz., Feb. 11, 2015 /PRNewswire/ — VirTra (OTC: VTSI), a leading provider of use of force training and shooting simulators to military, law enforcement agencies and other organizations, is exhibiting at IDEX 2015, an international exhibition and conference showcasing the latest technology from leading international companies.

Held biannually at the Abu Dhabi National Exhibition Centre in the capital of United Arab Emirates, IDEX will be held Feb. 22-26 featuring more than 590,000 square feet of technological innovation and is billed as the largest defense exhibition in the Middle East. More than 1,100 international and regional companies from 59 countries will exhibit at the show which attracts global decision-makers, government officials and military personnel.

At IDEX, VirTra will be showcasing its leading training simulators including the V-300™, a 300-degree virtual training system for use of force preparedness for police and military officials and V-Range™, one of VirTra’s virtual shooting range products. The V-300™ is currently being used in various applications with an extensive clientele base that includes police and military agencies in several countries around the world. In the U.S. alone, nearly 200 police agencies use VirTra technology.

In addition, VirTra is partnering with the International Golden Group (IGG), a leading supplier of integrated defense systems in the Middle East furthering VirTra’s international clientele reach. At IDEX, VirTra will be exhibiting at the IGG booth.

“It’s a great honor for VirTra to be selected by International Golden Group as a partner,” said VirTra General Manager Jason Mulcahy. “IGG provides VirTra instant recognition in both the civil and military markets.”

In the United States alone, more than 200 police and military agencies use VirTra technology for use of force preparation. Recent additions to VirTra’s client base include the Los Angeles Sheriff’s Department, one of the largest police agencies in the U.S., and the U.S. Department of Homeland Security which employs virtual training with U.S. Custom and Border Protection with multiple simulators. VirTra also counts many international clients who utilize its technology.

Bob Ferris, VirTra’s Chief Executive Officer, added, “While VirTra continues to enjoy much success is the U.S., we see great opportunities in our expansion efforts internationally. We look forward to showcasing our expertise at IDEX.”

About VirTra
VirTra is a global leading provider of the world’s most realistic and effective use of force and firearms shooting simulators. VirTra is the higher standard in firearms training simulators, offering a variety of simulator platforms, powerful gas-powered recoil kits and the patented Threat-Fire™ simulated hostile return fire system.  VirTra’s products provide the very best simulation training available for personnel that are entrusted with lethal force and critical missions.  The Company’s common stock is not registered under the Securities Exchange Act of 1934 and the Company does not currently file periodic or other reports with the Securities and Exchange Commission. www.VirTra.com

Forward-looking Statements
This news release includes certain information that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are typically identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “proposed,” “planned,” “potential” and similar expressions, or are those, which, by their nature, refer to future events.  All statements, other than statements of historical fact, included herein, including statements about VirTra’s beliefs and expectations, are forward-looking statements.  Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information.  Although VirTra believes that such statements are reasonable, it can give no assurance that such forward-looking information will prove to be accurate.  VirTra cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors.  Accordingly, due to the risks, uncertainties and assumptions inherent in forward-looking information, readers and prospective investors in the Company’s securities should not place undue reliance on forward-looking information.  All forward-looking information contained in this press release is given as of the date hereof, is based upon the opinions and estimates of management and information available to management as at the date hereof and is subject to change.  The Company assumes no obligation to revise or update forward-looking information to reflect new circumstances, whether as a result of new information, future events or otherwise, except as required by law.

Contacts:

VirTra Media Contacts:

VirTra Investor Contacts:

Greg Sexton, (480) 648-7555

David J. Bigelow, (310) 622-8236

Diego Romero, (480) 648-7562

Lisa Mueller, (310) 622-8231

LAVIDGE

Financial Profiles, Inc.

virtra@lavidge.com

vtsi@finprofiles.com

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/virtra-to-exhibit-at-idex-2015-300034777.html

SOURCE VirTra

Copyright © 2015 PR Newswire. All Rights Reserved

TEMPE, Ariz., Jan. 21, 2015 (GLOBE NEWSWIRE)VirTra Systems (OTC:VTSI), a leading provider of use of force training and shooting simulators to military, law enforcement agencies and other organizations, today announced the Company has signed a Co-Venture Agreement with Modern Round, a privately-held company, to develop the world’s first simulator-based shooting lounge, where customers will enjoy a fun, safe and highly-engaging experience along with world-class amenities. The facility will not permit live firearm shooting.

Patrons will be treated to exceptional food and drinks brought right to their personal shooting bay. Each welcoming location will be climate-controlled, have no loud gunshot noise, and through the use of 100 percent simulated weapons, ensure maximum safety. The facility and amenities are thoughtfully designed to cater to women, men, families and for corporate events. In many ways, this first of its kind experience will be similar to the growing number of simulated golf ranges, with one key difference being that Modern Round does not require as large of a facility or as much land.

“We are dedicated to creating the most enjoyable, non-threatening, and safe shooting and entertainment experience available anywhere in the world,” said Barry Monheit, Chief Executive Officer and Co-Founder of Modern Round, who has been Chairman of Smith & Wesson (Nasdaq:SWHC) since 2005.

“One exciting element is the potential to train both women and men in learning to shoot and the safe handling of simulated firearms, prior to using a real firearm. Also, we think the combination of a welcoming, friendly, safe and uniquely fun shooting lounge with exceptional food and drink in an entertainment environment will be a winning combination throughout the U.S. We have aggressive goals and high expectations for this concept and VirTra’s expertise is invaluable in this endeavor. We are pleased to have them as a partner. We have concluded Modern Round is the right business concept, at the right time and for the right reasons. We anticipate strong customer demand, and if our assumptions are correct, we have the capability and interest in establishing Modern Round locations throughout the United States and beyond in the years to come,” Monheit added.

The Co-Venture Agreement includes the development of a series of new shooting experiences exclusively for Modern Round facilities. VirTra’s role is focused on the shooting simulator portion both at store opening and with ongoing, regular updates and maintenance. VirTra received today a 5 percent ownership stake in Modern Round and VirTra will have the right to purchase up to an additional 5 percent of Modern Round stock, if certain conditions are met in 2016 or later, for a potential total ownership of 10 percent. Modern Round affiliates will have the right to purchase up to a 10 percent ownership interest in VirTra if certain conditions are met in 2016 or later. As part of the agreement, VirTra will receive ongoing royalty payments from each Modern Round location. The exact location and date of the first facility opening is still being finalized.

Bob Ferris, VirTra’s Chief Executive Officer, commented, “We are excited to be a key part of this promising enterprise that can both safely educate and highly entertain through a very innovative model. Barry and his partners have deep commercial experience and a remarkable track record of launching financially successful ventures. We are honored to be selected as the shooting simulator provider. This venture represents an opportunity for us to leverage our proprietary training technology and develop new technology for the commercial market.”

About VirTra Systems

VirTra is a global leading provider of the world’s most realistic and effective use of force and firearms shooting simulators. VirTra is the higher standard in firearms training simulators, offering a variety of simulator platforms, powerful gas-powered recoil kits and the patented Threat-Fire™ simulated hostile return fire system. VirTra’s products provide the very best simulation training available for personnel that are entrusted with lethal force and critical missions. The Company’s common stock is not registered under the Securities Exchange Act of 1934 and the Company does not currently file periodic or other reports with the Securities and Exchange Commission.

www.VirTra.com

Forward-looking Statements

This news release includes certain information that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “proposed,” “planned,” “potential” and similar expressions, or are those, which, by their nature, refer to future events. All statements, other than statements of historical fact, included herein, including statements about VirTra’s beliefs and expectations, are forward-looking statements. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Although VirTra believes that such statements are reasonable, it can give no assurance that such forward-looking information will prove to be accurate. VirTra cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors. Accordingly, due to the risks, uncertainties and assumptions inherent in forward-looking information, readers and prospective investors in the Company’s securities should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof, is based upon the opinions and estimates of management and information available to management as at the date hereof and is subject to change. The Company assumes no obligation to revise or update forward-looking information to reflect new circumstances, whether as a result of new information, future events or otherwise, except as required by law.

CONTACT:

VirTra Media Contact:
Greg Sexton, (480) 648-7555
Lavidge
gsexton@lavidge.com

VirTra Investor Contacts:
David J. Bigelow, (310) 622-8236
Lisa Mueller, (310) 622-8231
Financial Profiles, Inc.
vtsi@finprofiles.com

Modern Round Contact:
Barry Monheit
Chief Executive Officer
bmonheit@aol.com

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