Tempe, Arizona (November 14, 2014)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 2014 third quarter financial statements.  The financial statements are available on VirTra’s website and here.

Mark Skidmore, VirTra’s Vice President & Chief Accounting Officer, said, “The profitable third quarter demonstrates the variability in recognized revenue from quarter to quarter and is the historical nature of VirTra Systems’ business to date.  However, the Company’s nearly $11 million in record sales/purchase orders booked in the third quarter positions the Company’s revenue to be strong over the next two to three quarters.”

Third Quarter 2014 Financial Summary:

  • Net Sales for the quarter decreased 20% to $2.2 million compared to $2.7 million in the third quarter of 2013. The main reason for this difference is large multi-year projects with milestones in the first three quarters of 2013, but fewer milestones for 2014.  These variations are reduced when reviewing a one year period versus a quarterly period.
  • Gross margin for the quarter was 49% of Net Sales, compared to 68% last year. The drivers for the decrease, similar to second quarter 2014, are primarily due to client paid customization projects which means some salaries were recorded in Cost of Products Sold, instead of in Sales, General and Administrative (SG&A). In addition, the lower Net Sales for the quarter contributed to this difference.
  • SG&A expenses of $1.0 million are level with third quarter 2013. As a percent of revenue, SG&A was 47% compared to 37% in third quarter 2013.  The percentage increase is mainly the result of comparing SG&A to lower Net Sales.  In addition, a portion of SG&A resources were assigned to client paid customization projects.
  • Income from operations decreased $0.8 million to $0.1 million, compared to income of $0.8 million in third quarter 2013. This decrease was largely due to higher Net Sales in 2013 as compared to 2014.
  • Through September 30, 2014, the Company used $0.8 million in cash from operating activities to fulfill orders secured by deposits. Cash and cash equivalents were $1.5 million, down from $1.8 million at third quarter 2013.
  • The Company has no outstanding balance due on its line of credit as of September 30, 2014.

Bob Ferris, Chief Executive Officer of VirTra, commented, “One of VirTra’s key objectives for 2014 was to increase market penetration by expansion of our national footprint with military and law enforcement agencies in the United States, in addition to investing in development of the Company’s international presence.  I am incredibly proud of our talented employees’ work and steadfast dedication to our stakeholders that enabled us to meet those goals through the first nine months of operations.  The Company’s recent one quarter performance of nearly $11 million of purchase orders is validation of VirTra’s ability to expand our position in the marketplace and we look forward to delivering on those orders in the coming quarters.”

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.

– – – -FINANCIALS FOLLOWING- – – –

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IMMERSIVE. INNOVATIVE. INTENSE.

Split-second decision-making. Accurate marksmanship. Appropriate use of force. For law enforcement personnel, these are the details that make the difference between safely resolving use of force encounters or making costly, tragic headlines. Protect the public….Prepare your officers…Limit your Risks!

Experience the best firearms simulation training in the industry – VirTra V-300™!

VirTra is presenting training demos at IACP 2014 to showcase the world’s only five screen, 300-degree fully immersive training simulator – the V-300™

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Tempe, Arizona (October 17, 2014) — VirTra Systems (OTC Pink: VTSI), a leading provider of use of force training and shooting simulators to military, law enforcement agencies and other organizations, today announced the Los Angeles County Sheriff’s Department Training Bureau proudly unveiled VirTra V-300™ technology, which was recently added to enhance the officer safety training curriculum. This innovative and unique system is a 300-degree police firearms training simulator which immerses a single deputy or multiple deputies in real life scenarios a peace officer could face in the field. Members of the media were invited to the Biscailuz Center Training Academy in East Los Angeles to experience this training firsthand.

The media experience was put on by Tactics and Survival Training (TAS) Unit personnel regularly assigned to operate the VirTra V-300™ training simulator. Media representatives had the opportunity to be immersed in one of over 100 possible scenarios and make split-second decisions in their own traffic stop, observation, call to a location, or incident.

Scenarios possible in the V-300™ system include, but are not limited to: person with a gun, active shooter with multiple victims, officer ambush, domestic violence situations, and many other incidents a peace officer may face in day-to-day police work. What makes the V-300™ system unique is the realism of each scenario, including the critical simulation of return fire provided by the Threat-Fire™ device. In addition, each scenario can be selectively changed by the computer or may be modified by Tactics and Survival Training Unit staff. It is not a video game and the characters are real actors, not computer-generated. Read more…

TEMPE, AZ–(Marketwired – Oct 15, 2014) – VirTra Systems (PINKSHEETS: VTSI), a leading provider of use of force training and shooting simulators to military, law enforcement agencies and other organizations, today announced a record quarter of sales/purchase orders for both domestic and international customers, including two countries that will receive their first VirTra simulator product. VirTra Systems’ sales/purchase orders in the third quarter of 2014 were $10.68 million, the highest in any quarter of the Company’s history.

Jason Mulcahy, General Manager of VirTra, said, “VirTra’s continuous pursuit of excellence in every product we make is why more customers are choosing our products over the competition. We are very pleased to have penetrated two new countries with our international sales efforts. Our Company strives to provide the finest training simulators in the world while maintaining nothing less than 100% customer satisfaction.”

Mark Skidmore, CPA, the Company’s Vice President-Chief Accounting Officer, stated, “The record breaking quarter of sales/purchase orders is a major milestone for the Company. However, I want to remind our shareholders that sales/purchase orders in one quarter are not a guarantee of all the revenue in the following quarter. Each customer’s requirements, fulfillment and set up are unique. VirTra is often subject to customers’ delivery schedules, cancelations, third party protests, milestones, and extensions. Please note the Company’s accounting revenue recognition policy posted after the Company’s Forward-looking Statements section of this press release.”

Bob Ferris, CEO and President of VirTra, said, “While I am extremely proud of the sales/purchase order activities for the quarter VirTra just concluded, I am even more excited about the future I envision for the growth of the Company. Our focus on exceptional products and superior support at affordable prices is gaining solid traction. VirTra will continue to add more enhancements and products to our already industry leading portfolio of simulation systems.”

About VirTra Systems

VirTra is a global leading provider of the world’s most realistic and effective use of force and firearm 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.

Accounting Revenue Recognition Policy

The Company recognizes revenue for products and services when it is realized or realizable and earned. Revenue is considered realized and earned when: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred and/or services have been rendered; (iii) the price is fixed and determinable; and (iv) collection of the resulting receivable is reasonably assured. Shipping fees are charged to customers and recorded as a component of net revenues. All sales and sales contracts, including international sales, have been denominated in US dollars.

Investor Relations Counsel
Rudy R. Miller
Chairman, President & CEO
The Miller Group
www.themillergroup.net
tel: 602.225.0505
email: virtra@themillergroup.net

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Published: Monday, Oct. 13 2014 1:14 p.m. MDT

SALT LAKE CITY — Bursts of gunfire regularly erupt from Parleys Canyon at the sheriff’s shooting range. Police have trained there for years.

But for the past 11 months, officers have been able to elevate their training with an indoor, state-of-the-art simulator.

“It raises my heart rate. It amps the stress up a little bit,” said officer Brad Smith, a firearms instructor with the Unified Police Department.

Smith went through several scenarios in the 300-degree VirTra simulator. Unlike single-screen simulators he has trained on in the past, this wrap-around simulator forces the trainee to assess the threat and make a judgment about what amount of force is necessary, Smith said. The trainee must assess not only what is right in front of him, but also who may attack from any side.

Unified police officer Brad Smith goes through a scenario in the 300-degree VirTra simulator. The scenarios are intricate and variable. If the officer makes a good decision, the treat de-escalates. If they make a bad decision, the threat intensifies.

Unified police officer Brad Smith goes through a scenario in the 300-degree VirTra simulator. The scenarios are intricate and variable. If the officer makes a good decision, the treat de-escalates. If they make a bad decision, the threat intensifies.

“On this one, the scenario surrounds you,” he said. “You have to keep your head moving. You have to turn around and look to see what could be coming up behind you.”

Smith has worked in law enforcement 24 years and said this simulator is a game-changer for police training when it comes to use of deadly force. With police training in the spotlight in Utah and across the country, Smith believes this advanced training is more valuable than ever.

For new officers, Smith is confident this kind of training will have a lasting impact on the way they do their job on the streets. In turn, that training saves lives in the community.

“I believe it does,” he said. “It helps officers make the correct decision.”

The intensity and reality of the scenarios has a physiological effect on the trainee.

“I’ve seen officers, brand new officers, step in here and go through some of the same scenarios and walk out in a sweat,” Smith said.

The scenarios are intricate and variable. If the officer made good decisions, the threat de-escalates. If they make bad decisions, the threat intensifies.

In one domestic dispute scenario, a man is pointing a gun at the head of his wife or girlfriend and shouts at the officer as he enters the house. The trainee tries to convince him to drop the weapon and step away from the woman. In the end, the man in the scenario kills the woman and the officer after the trainee made decisions that escalated the danger.

The trainee later learns that there was a baby in the room of the scenario who had gone unnoticed because of the focus on the shouting and the gun.

“You don’t hear the baby if you’re not open to the movement, if you are not open to watching the whole scenario,” said range master Nick Roberts. “You don’t have training in that.”

But law enforcement officers in Salt Lake County are getting that training.

Any officer in the county can train there. The Unified Police Department makes sure each of its officers gets one day of training in the simulator, along with three days of live-fire training on other ranges.

A year ago, the Salt Lake County District Attorney’s Office used $500,000 in asset forfeiture money, along with $250,000 from the county’s general fund, to buy the simulator.

 

Summary

Police have trained at gun ranges for years, but for the past 11 months they’ve been able to get additional training on an indoor, state-of-the-art simulator.

Email: jboal@deseretnews.com

http://www.deseretnews.com/article/865613019/Virtual-training-facility-helps-officers-make-split-second-decisions.html

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