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Fourth Quarter Bookings Grow 37% Sequentially to $12.2 Million

Year-End Backlog Expands to $22.0 Million

CHANDLER, Ariz. — March 27, 2025 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement and military markets, reported results for the fourth quarter and full year ended December 31, 2024. The financial statements are available on VirTra’s website and here.

Fourth Quarter 2024 and Recent Operational Highlights:

Fourth quarter bookings totaled $12.2 million, a 37% increase from Q3 2024, with a significant portion recorded in December, positioning VirTra for revenue conversion in early 2025.
Backlog grew to $22.0 million as of December 31, 2024, reflecting continued sales momentum despite federal funding delays.
Secured contracts with government and law enforcement agencies in Europe and Latin America, reinforcing VirTra’s expansion in international government and security training programs.
Secured first sale of the V-XR® training platform in Canada, marking early adoption of the Company’s extended reality training technology.
Maintained robust working capital at $34.8 million, positioning the Company for sustained growth and operational agility.

Fourth Quarter and Full Year 2024 Financial Highlights:

*The December 31, 2023 full-year column reflects restated financials.

+The adjusted EBITDA calculation for the three months ended December 31, 2024 gives effect to a negative $750,000 revenue adjustment.

Management Commentary

VirTra CEO John Givens stated, “We closed out 2024 with strong bookings momentum and an expanding backlog despite persistent challenges in the federal funding environment. Bookings increased sequentially each quarter in 2024, demonstrating our ability to navigate the constraints of the federal government’s Continuing Resolution and the resulting delays in contract execution. While we remain encouraged by our growing backlog and international traction, the broader funding environment remains fluid, and we are actively working with policymakers to ensure law enforcement agencies can access critical training resources. Over the past several months, we have met with dozens of legislators, officials at the Department of Justice, and leadership in federal grant offices to advocate for clearer funding structures that prioritize modern training systems. As a trusted partner for Customs and Border Protection (CBP), the Secret Service, and the Federal Law Enforcement Training Center (FLETC), we remain focused on expanding our role in federal law enforcement training initiatives.

“We are also advancing our military initiatives, with key milestones in the U.S. Army’s Integrated Visual Augmentation System (IVAS) program. Our final IVAS development phase was completed 42 days ahead of schedule, leading the Army to finalize testing early and forgo previously planned soldier assessments due to our system’s outstanding performance. The transition of IVAS to Anduril, one of the most capable defense technology firms with a well-established track record in Department of Defense contracting, is a significant positive development. We are actively conducting reliability testing on recoil kits as part of the final prototyping phase and remain confident in our continued involvement, strategically positioning us to effectively support future production-stage opportunities.

“While our sales pipeline has improved, we recognize that there is still work to be done to reach full efficiency. We are laser-focused on accelerating sales growth through a disciplined, strategic approach. This includes expanding and refining our sales organization, improving conversion efficiency, and deepening engagement across our core federal and military customer base. Additionally, we are leveraging AI to drastically reduce video editing time from days to minutes, accelerating high-quality content creation. Training content remains a key differentiator for VirTra, and our ability to rapidly expand and enhance our scenario library strengthens our position as the industry leader in immersive training.

“Looking ahead, we anticipate continued variability in federal funding cycles in the near term, but the long-term need for de-escalation and tactical training continues to expand. The steps we’ve taken to improve operational efficiency, deepen engagement with key federal agencies, and expand our content and scenario development capabilities provide a solid foundation as we navigate 2025.”

Fourth Quarter and Full Year 2024 Financial Results

Total revenue for the fourth quarter was $5.4 million, compared to $10.9 million in the prior year period. This decrease reflects the impact of federal budget delays and grant disbursement pauses, which slowed contract execution and order conversion. While Q4 bookings saw strong sequential growth, many orders came late in the quarter, limiting the Company’s ability to fulfill and recognize revenue within the period.

For the full year 2024, total revenue was $26.4 million, compared to $38.8 million (as restated) in 2023. The decline reflects the impact of budget delays, resulting in softer bookings in early 2024 and delayed order conversion throughout the year.

Gross profit for the fourth quarter was $3.7 million (69% of total revenue), compared to $9.2 million (84% of total revenue) in the prior year period. The decline primarily reflects lower revenue.

For the full year 2024, gross profit totaled $19.4 million (74% of total revenue), compared to $27.4 million (as restated) (71% of total revenue) in 2023. This improvement in gross margin reflects a shift in product mix and operational efficiencies.

Net operating expense for the fourth quarter was $4.2 million, a 13% increase from $3.7 million in the prior year period. The increase was driven by investments in higher-level staff to support long-term growth, expanded sales and marketing efforts, and enhancements to IT infrastructure and compliance for current and future contracts.

For the full year 2024, net operating expense was $17.4 million, compared to $17.0 million in 2023.

Operating (loss) income for the fourth quarter was $(0.5) million, compared to $1.7 million in the fourth quarter of 2023.

For the full year 2024, operating income was $2.0 million, compared to $10.4 million in 2023.

Net (loss) income for the fourth quarter was $(0.9) million, or $(0.08) per diluted share (based on 11.2 million weighted average diluted shares outstanding), compared to $3.5 million, or $0.32 per diluted share (based on 11.0 million weighted average diluted shares outstanding), in the fourth quarter of 2023.

For the full year 2024, net income was $1.4 million, or $0.12 per diluted share (based on 11.2 million weighted average diluted shares outstanding), compared to net income of $9.2 million (as restated), or $0.85 per diluted share (based on 11.0 million weighted average diluted shares outstanding), in 2023.

Adjusted EBITDA, a non-GAAP metric, was ($1.8) million (which included the $750,000 negative revenue adjustment), compared to $3.0 million in the fourth quarter of 2023.

For the full year 2024, adjusted EBITDA, a non-GAAP metric, was $2.9 million, compared to $12.4 million in 2023.

Cash and cash equivalents were $18.0 million at December 31, 2024.

Financial Commentary

CFO Alanna Boudreau stated, “We saw strong momentum in Q4 bookings, with many orders coming late in the quarter. While the timing limited revenue recognition in the period, it contributed to a growing $22.0 million backlog that positions us well for future revenue growth. Full-year 2024 results included a one-time revenue adjustment related to a 2021 international sale, which reduced reported 2024 revenue and increased 2023 results. Additionally, net operating expense included a $275,000 lease settlement tied to a legacy facility contract. Both adjustments were necessary to properly align financial reporting and have now been addressed. Looking ahead, we remain focused on managing costs effectively, increasing operational efficiency even further, and converting backlog into revenue as market conditions evolve. With a $22.0 million backlog, scalable operational infrastructure, and an expanding international pipeline and footprint, we are well-positioned to benefit as opportunities emerge.”

Conference Call

VirTra’s management will hold a conference call today (March 27, 2025) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. VirTra’s Chief Executive Officer John Givens and Chief Financial Officer Alanna Boudreau will host the call, followed by a question-and-answer period.

U.S. dial-in number: 1-877-407-9208

International number: 1-201-493-6784

Conference ID: 13751824

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through April 10, 2025.

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 13751824

About VirTra, Inc.

VirTra (Nasdaq: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.

About the Presentation of Adjusted EBITDA

Adjusted earnings before interest, income taxes, depreciation, and amortization and before other non-operating costs and income (“Adjusted EBITDA”) is a non-GAAP financial measure. Adjusted EBITDA also includes non-cash stock option expense and other than temporary impairment loss on investments. Other companies may calculate Adjusted EBITDA differently. VirTra calculates its Adjusted EBITDA to eliminate the impact of certain items it does not consider to be indicative of its performance and its ongoing operations. Adjusted EBITDA is presented herein because management believes the presentation of Adjusted EBITDA provides useful information to VirTra’s investors regarding VirTra’s financial condition and results of operations and because Adjusted EBITDA is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in VirTra’s industry, several of which present a form of Adjusted EBITDA when reporting their results. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of VirTra’s results as reported under accounting principles generally accepted in the United States of America (“GAAP”). Adjusted EBITDA should not be considered as an alternative for net income, cash flows from operating activities and other consolidated income or cash flows statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. A reconciliation of net income to Adjusted EBITDA is provided in the following tables:

Forward-Looking Statements

The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risks and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.

Investor Relations Contact:

Matt Glover and Alec Wilson

Gateway Group, Inc.

VTSI@gateway-grp.com

949-574-3860

– Financial Tables to Follow –

VIRTRA, INC.

CONDENSED BALANCE SHEETS

VIRTRA, INC.

CONDENSED STATEMENTS OF OPERATIONS

VIRTRA, INC.

CONDENSED STATEMENTS OF CASH FLOWS

CHANDLER, Ariz. — March 18, 2025 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement and military markets, will hold a conference call on Thursday, March 27, 2025 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss its financial results for the fourth quarter and full year ended December 31, 2024. Financial results will be issued in a press release prior to the call.

VirTra management will host the presentation, followed by a question-and-answer period.

Date: Thursday, March 27, 2025
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
U.S. dial-in: 1-877-407-9208
International dial-in: 1-201-493-6784

Conference ID: 13751824

The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through April 10, 2025.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13751824

About VirTra, Inc.

VirTra (Nasdaq: VTSI) is a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.

Investor Relations Contact:

Matt Glover and Alec Wilson

Gateway Group, Inc.

VTSI@gateway-grp.com

949-574-3860

VirTra Reports Third Quarter and Nine Month 2024 Financial Results

Q3 Bookings Grow 51% Quarter-Over-Quarter to $8.9 Million, Bringing YTD Total to $17.7 Million

Gross Margin Expands to 73%

CHANDLER, Ariz. — November 12, 2024 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement and military markets, reported results for the third quarter ended September 30, 2024. The financial statements are available on VirTra’s website and here.

Third Quarter 2024 and Recent Operational Highlights:

Bookings totaled $8.9 million in Q3 2024, a 51% increase from $5.9 million in Q2 2024, and a 22% year-over-year increase from $7.3 million in Q3 2023. This growth reflects the effectiveness of our enhanced sales approach and improved market conditions.
Gross margins improved to 73%, up from 71% in the prior year period.
Maintained robust working capital at $36.0 million, positioning the Company for sustained growth and operational agility.
Advanced V-XR launch, with initial orders now being accepted and preparation underway for customer deliveries. This new extended reality solution is set to broaden VirTra’s offerings to meet varying budget requirements, providing agencies with greater flexibility and essential tools for de-escalation training. Additionally, V-XR is expected to open avenues into adjacent markets such as healthcare and education, where immersive training is increasingly in demand.
Appointed retired U.S. Army Lieutenant General Maria R. Gervais and Georgia POST Executive Director Mike Ayers to the Board of Directors, strengthening VirTra’s expertise in virtual military training and high-impact law enforcement certification.

Third Quarter and Nine Month 2024 Financial Highlights:

Management Commentary

CEO John Givens stated, “The third quarter marked a positive step toward accelerating sales momentum, with bookings improving to $8.9 million. This increase signals that the sales improvements we initiated in the second half of 2023 are beginning to make their way into our financial results, setting a strong foundation for future growth. Given the longer timelines associated with selling to government customers, this progress is an encouraging start to what we believe will be a steady ramp-up in demand as our strategies continue to take hold.

“We’re tracking macroeconomic factors closely, including December’s budget decisions, as the continuing resolution currently in place only extends funding for federal programs through December 20th. While funds have been allocated, final distribution to our customers may take additional time, especially as priorities may shift following the presidential election. Nonetheless, with a strong pipeline and strategic positioning, we’re optimistic about capitalizing on emerging opportunities as we move through Q4 and into 2025.”

Third Quarter 2024 Financial Results

Total revenue was $7.5 million, compared to $7.6 million in the prior year period. The slight decrease can primarily be attributed to the smaller number of bookings in the previous three quarters due to the temporary funding measures taken by the federal government that delayed many of VirTra’s contracts.

Gross profit totaled $5.5 million (73% of total revenue), compared to $5.4 million (71% of total revenue) in the prior year period. This 2% improvement in gross margin reflects the lower cost of sales. Additionally, a significant portion of total revenue came from the Company’s service and STEP contracts, which have minimal associated costs, further supporting gross margin performance.

Net operating expense was $4.7 million, a 28% increase from $3.7 million in the prior year period. This increase was driven by investments in higher-level staff and expanded sales and marketing efforts to support growth initiatives. Also contributing to the increased operating expenses were enhancements to the Company’s IT infrastructure and compliance measures required for current and future contracts.

Operating income was $0.8 million, compared to $1.7 million in the third quarter of 2023.

Net income was $0.6 million, or $0.05 per diluted share (based on 11.2 million weighted average diluted shares outstanding), compared to net income of $1.6 million, or $0.15 per diluted share (based on 10.9 million weighted average diluted shares outstanding), in the third quarter of 2023.

Adjusted EBITDA, a non-GAAP metric, was $1.1 million, compared to $2.9 million in the third quarter of 2023.

Cash and cash equivalents were $19.7 million at September 30, 2024.

Financial Commentary

CFO Alanna Boudreau stated, “With a solid cash position and strong gross margin profile, we have the financial flexibility to continue supporting growth initiatives, including expanding our product offerings, enhancing sales and marketing capabilities, and investing in technology to improve training outcomes. Ongoing adjustments to our contract terms have strengthened our cash flow and working capital, allowing us to respond quickly to new opportunities and invest in strategic areas that will drive long-term growth.

“Our strong backlog, which includes long-term contracts, reflects continued demand and provides us with a steady revenue foundation. Additionally, targeted investments in talent, IT infrastructure, and sales and marketing have positioned us for growth as we look toward 2025.”

Conference Call

VirTra’s management will hold a conference call today (November 12, 2024) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. VirTra’s Chief Executive Officer John Givens and Chief Financial Officer Alanna Boudreau will host the call, followed by a question-and-answer period.

U.S. dial-in number: 1-877-407-9208

International number: 1-201-493-6784

Conference ID: 13749298

The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through August 26, 2024.

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 13749298

About VirTra, Inc.

About the Presentation of Adjusted EBITDA

Forward-Looking Statements

Investor Relations Contact:

Matt Glover and Alec Wilson

Gateway Group, Inc.

VTSI@gateway-grp.com

949-574-3860

– Financial Tables to Follow –

VIRTRA, INC.

CONDENSED BALANCE SHEETS

(Unaudited)

VIRTRA, INC.

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

VIRTRA, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

CHANDLER, Ariz. — October 29, 2024 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement and military markets, will hold a conference call on Tuesday, November 12, 2024 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss its financial results for the third quarter ended September 30, 2024. Financial results will be issued in a press release prior to the call.

VirTra management will host the presentation, followed by a question-and-answer period.

Date: Tuesday, November 12, 2024
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
U.S. dial-in: 1-877-407-9208
International dial-in: 1-201-493-6784

Conference ID: 13749298

The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through November 26, 2024.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13749298

About VirTra, Inc.

Investor Relations Contact:

Matt Glover and Alec Wilson

Gateway Group, Inc.

VTSI@gateway-grp.com

949-574-3860

CHANDLER, AZ – October 22, 2024 – VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use-of-force and firearms training simulators for law enforcement and military markets, has announced the appointment of two high-ranking and distinguished leaders in military operations and police training to its board of directors: retired U.S. Army Lieutenant General Maria R. Gervais and Executive Director Mike Ayers of the Georgia Peace Officer Standards and Training (POST) Council. The appointments became effective on October 21, 2024.

With the addition of Gervais and Ayers, four of VirTra’s five board members are now independent, reinforcing the Company’s focus on effective governance and strategic leadership. Their leadership backgrounds in military operations and police training will support VirTra’s efforts to innovate and deliver life-saving training solutions for public safety and military professionals.

Both appointees have led transformative programs in their respective fields, restructuring training programs that resulted in lasting and profound performance improvements. Their expertise will help guide VirTra during an important phase of growth as the Company expands its product and scenario offerings into new industries, further solidifying its leadership in immersive training technology.

VirTra’s Newest Board Members

Lieutenant General Maria R. Gervais, USA (Ret.)

Lt. Gen. Gervais spearheaded a $2 billion modernization initiative that reduced Army training time by three years while enhancing readiness. She introduced 3D terrain technology to accelerate virtual training, an approach later adopted by other agencies. Her experience with virtual environments will be instrumental in supporting VirTra’s integration of Virtual Battle Space (VBS) military training into its simulator systems.

“VirTra’s reputation for providing innovative simulation technology, combined with its marksmanship and law enforcement expertise, is unmatched,” said Gervais. “VirTra consistently delivers quality training to customers. I am excited to be joining the VirTra team—they have an excellent track record, believe in what they are doing, and have the potential to achieve even more. I want to be part of VirTra’s mission to build and deliver simulation training capabilities that enable organizations to achieve excellence and improve workforce performance.”

Executive Director Mike Ayers, Georgia Peace Officer Standards and Training Council
Ayers has over 37 years of experience in law enforcement training, certification, and development. As Executive Director of Georgia POST, he led a comprehensive overhaul of the state’s police credentialing program, increasing required training from 408 hours to over 800 hours and introducing innovative psychological and physical training methods that improved officer performance and community safety. As a board member and former president of the International Association of Directors of Law Enforcement Standards and Training (IADLEST), Ayers is uniquely positioned to help guide VirTra’s training curriculum development. His partnership with VirTra has its roots in the Company’s IADLEST-certified V-VICTA curriculum.

“VirTra represents the future of military and public safety training,” said Ayers. “Its products equip soldiers and officers to succeed in dynamic and dangerous situations while also protecting officers, communities, and the individuals who call these communities home. Today’s law enforcement and military deployments require split-second evaluation and decision-making in high-pressure environments. I have long supported high-quality scenario-based training, and VirTra consistently delivers that standard to our law enforcement officers and military personnel. It is an incredible honor to contribute to providing the best training products for the men and women in uniform. It is a sacred obligation that will lead to better outcomes and safer streets.”

John Givens, CEO of VirTra, emphasized the significance of these new appointments, saying: “It is a testament to the importance of VirTra’s mission that internationally recognized leaders like Lt. Gen. Gervais and Director Ayers are joining our team. Lt. Gen. Gervais will play a pivotal role in advancing our military training initiatives and VBS integration, while Ayers’ extensive experience in overseeing the training and certification of approximately 59,000 officers in Georgia will directly enhance the effectiveness and implementation of our law enforcement training programs. I am confident that their leadership will enable VirTra to continue expanding the boundaries of innovation, delivering the exceptional performance our partners have come to rely on.”

About VirTra

Forward-Looking Statements

The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “will,” “should,” “could,” “predict,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risks and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.

Investor Relations Contact:

Alec Wilson and Matt Glover

Gateway Group, Inc.

VTSI@gateway-grp.com

949-574-3860

For VirTra, there is no event quite like the International Association of Chiefs of Police (IACP). It’s where we debuted the now ubiquitous V-300 4K simulator in 2019, and where VirTra continues to announce its newest public safety technology. This year, we have another wealth of exciting training announcements that attendees won’t want to miss. So, join our team in Boston to learn about the following developments.

VirTra launched over 40 new scenarios and plenty of new content since last year’s conference. And this year, we are excited to show off new content plus some intended for audiences beyond our core law enforcement community, such as corrections and healthcare. This includes several inmate models, guards, a mess hall, doctors, nurses, and medical equipment models.

Turning Awareness into Understanding – Adults with Autism Training Scenarios and 2-hours of certified curriculum

To kick things off, we teamed up with Southwest Autism Research & Research Center (SARRC) to build new scenarios that fill the gap in law enforcement autism education. The new material builds on 2022’s Autism Awareness course but expands the scope to include adults on the spectrum. These new special populations have trainees put their skills to the test, safely navigating encounters with autistic individuals in a range of situations. “Rock Chucker” has officers de-escalating a man throwing pebbles at a neighbor’s house, and in “Too Friendly,” officers must navigate a difficult situation where an adult suspect is seen playing with strangers’ children at a local park.

Over 40 New Scenarios Since Last Year’s IACP!

Our team has been hard at work on a selection of new content, including an expansion of VirTra’s elite training to corrections and healthcare industries. We have new, harrowing scenarios for church, school and public event shooting preparedness. VirTra’s healthcare and correctional content includes new prison scenarios, inmate models, guards, a mess hall, doctors, nurses, and medical equipment models.

2024 also brings new emotionally disturbed persons training focused on a conspiratorial-minded man, and a suicidal office worker. Overall, 2024’s content is an overhaul for new and existing VirTra customers, with mental health/mental illness scenarios, stress inoculation scenarios, duty to intervene training, and over 50 new V-Author assets. Existing content benefits from a quality-of-life update, receiving 4K support.

True-Fire™

In addition to these training scenarios, we’re thrilled to introduce True Fire, the next evolution in realistic force simulation. This upgraded recoil kit technology allows trainees to simulate deadly force options with unmatched authenticity. It is the only recoil kit that does not produce false fires, providing officers with more reliable and immersive training experiences. Moreover, this technology is now available as an upgrade for current users, ensuring that both new and existing partners can benefit from the most realistic recoil kits available.

V-XR™

You may have seen a sneak peek at the V-XR last year, but now the product is ready to be showcased. It has come a long way in a year and has new features and scenarios! Learn more about VirTra’s much-anticipated foray into extended reality by stopping by our booth or read more in advance, here.

Be sure to visit us at BOOTH #701 while at IACP 2024 in Boston to experience firsthand how VirTra is shaping the future of law enforcement training. Or, if you would like an exclusive demo, contact us here and a VirTra specialist will be in touch to schedule.

CHANDLER, Ariz. — September 19, 2024 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement and military markets, will hold its 2024 Annual Meeting of Shareholders on Monday, October 21, 2024 at 4:30 p.m. Eastern Time (1:30 p.m. Arizona Time) at VirTra’s headquarters located at 295 E. Corporate Place, Chandler, AZ 85225. The meeting will also be accessible via webcast here.

VirTra will host an investor event following the Annual Meeting from 2:15 p.m. to 4:00 p.m. Arizona Time. The presentation will include an in-depth discussion of the Company’s growth strategies, product innovations, and market outlook. Presenters will include CEO and Chairman John Givens, CFO Alanna Boudreau, and CTO Brandon Cox.

Attendees will have the unique opportunity to experience a live demonstration of VirTra’s training simulators, including the V-XR®, its new low-profile and lightweight headset system that can be instructor-led or almost entirely self-driven. Following the presentation, attendees will be given a guided tour of the Company’s headquarters and production facilities.

To reserve a spot for the investor meeting and facility tour, RSVP by emailing VTSI@gateway-grp.com. When requesting an invite, please provide your full first and last name for shareholder verification. The Company will confirm your attendance.

Shareholders of record at the close of business on August 26, 2024, will be entitled to vote and attend both the Annual Meeting and investor presentation and tour to follow. Proxy materials and voting instructions can be found on the investor relations section of the company’s website and here.

About VirTra

Forward-Looking Statements

The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risk and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.

Investor Relations Contact:

Alec Wilson and Matt Glover

Gateway Group, Inc.

VTSI@gateway-grp.com

949-574-3860

Quarterly Bookings Improve as VirTra Advances Product Launches and Expands Focus on Federal and Defense Markets

CHANDLER, Ariz. — August 12, 2024 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement and military markets, reported results for the second quarter ended June 30, 2024. The financial statements are available on VirTra’s website and here.

Second Quarter 2024 and Recent Operational Highlights:

Bookings increased by $3 million quarter-over-quarter, doubling since Q1, highlighting improved market conditions and a strengthened sales approach.
Gross margins improved to 91%, marking a significant increase from 83% in Q1.
Maintained robust working capital at $34.8 million, positioning the Company for sustained growth and operational agility.
Advanced V-XR launch preparations, with the new extended reality solution set to begin shipping by the end of Q3 2024.
Appointed Brandon Cox as Chief Technology Officer to accelerate innovation and lead new product development efforts.
Launched new online and in-person masterclass training programs to maximize simulator utilization and enhance customer success outcomes through improved engagement and skill development.
VirTra simulators approved for DoD-funded research projects, reinforcing the Company’s standing in defense and research sectors.

Second Quarter and Six Month 2024 Financial Highlights:

Management Commentary

CEO John Givens stated, “Our recent developments have positioned us strongly for future growth. Although our second quarter revenue was impacted by earlier challenges with federal budget resolutions, we have successfully doubled our bookings sequentially from the first quarter. This increase in bookings reflects the positive momentum we are building as we move through the second half of the year. VirTra’s sales pipeline is stronger than ever, and the sales team is starting to gain traction, reflecting our efforts to align sales operations with the operational excellence we’ve established in other departments. We have also enhanced our ability to capture law enforcement dollars through a greatly improved pipeline of federal grants, supported by a new program that identifies and matches potential grants with customer needs.

“The upcoming launch of our V-XR platform represents a significant opportunity to redefine training methodologies across our core law enforcement and military markets, and also in areas such as healthcare and education, where we are already experiencing strong interest. We are also focused on expanding our reach further into U.S. Federal and Department of Defense channels by actively pursuing these opportunities through targeted marketing campaigns and strategic initiatives. We are deploying a dedicated sales team tasked with securing larger contracts in U.S. Federal and Department of Defense channels. This specialized unit is strategically equipped to navigate complex opportunities and drive significant growth in these key areas.

“We are aiming to extend our leadership in simulation training by enhancing our systems and developing state-of-the-art products that align with the demands of larger market opportunities. With the appointment of Brandon Cox as Chief Technology Officer, we are set to advance our capabilities in areas such as data analytics and systems integration. As we pursue these advancements, our newly launched master class training programs, offering both online and in-person options, are designed to ensure customer success by providing comprehensive training solutions that enable clients to fully utilize our platforms and achieve effective training outcomes. These initiatives strengthen our position as a leader in simulation training and equip us with the technical expertise needed to pursue and secure larger contracts in key markets.”

Second Quarter 2024 Financial Results

Total revenue was $6.1 million, compared to $10.3 million in the prior year period. The decrease was primarily due to delays in purchasing decisions caused by the continuing resolution impacting bookings in recent quarters.

Gross profit totaled $5.5 million (91% of total revenue), compared to $5.9 million (57% of total revenue) in the prior year period. The 7% decrease in gross profit was primarily due to the change in sales. Gross margin increased mainly due to the lower cost of sales driven by operational enhancements, offsetting labor costs related to development projects, and 40% of the total revenue driven from the Company’s service and STEP contracts, which have limited cost of sales associated with the revenue.

Net operating expense was $4.4 million, a 10% increase from $4.0 million in the prior year period. This increase was driven by investments in sales and marketing, as well as strategic hiring to support growth initiatives. Also contributing to the increased operating expenses were enhancements to the Company’s IT infrastructure and compliance measures required for current and future contracts.

Operating income was $1.1 million, compared to $1.9 million in the second quarter of 2023.

Net income was $1.2 million, or $0.11 per diluted share (based on 11.1 million weighted average diluted shares outstanding), compared to net income of $1.0 million, or $0.09 per diluted share (based on 10.9 million weighted average diluted shares outstanding), in the second quarter of 2023.

Adjusted EBITDA, a non-GAAP metric, was $1.6 million, compared to $2.6 million in the second quarter of 2023.

Cash and cash equivalents were $18.4 million at June 30, 2024.

Financial Commentary

CFO Alanna Boudreau stated, “The second quarter presented notable challenges as our revenue declined year-over-year. Despite these headwinds, we achieved a remarkable 91% gross margin, driven by strategic cost management and a favorable product mix. Gross margin was further enhanced by capitalizing on development costs for key projects which are not yet generating revenue but are expected to provide significant future returns.

“Our bookings improvement underscores the effectiveness of our sales initiatives and the continued demand for our solutions. However, we recognize that maintaining this momentum will require sustained focus and execution. We have strengthened our working capital position to support strategic initiatives, ensuring we can invest in areas that promise long-term growth. Additionally, our ability to achieve a 93% rate of either renewing STEP contracts or transitioning to capital purchases among customers completing their initial agreements highlights our success in building a loyal customer base as we focus on new pipeline development. As we navigate the second half of the year, balancing our backlog and bookings will be crucial to optimizing revenue and capturing emerging market opportunities.”

Conference Call

VirTra’s management will hold a conference call today (August 12, 2024) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. VirTra’s Chief Executive Officer John Givens and Chief Financial Officer Alanna Boudreau will host the call, followed by a question-and-answer period.

U.S. dial-in number: 1-877-407-9208

International number: 1-201-493-6784

Conference ID: 13747540

The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through August 26, 2024.

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 13747540

About VirTra, Inc.

About the Presentation of Adjusted EBITDA

Forward-Looking Statements

Investor Relations Contact:

Matt Glover and Alec Wilson

Gateway Group, Inc.

VTSI@gateway-grp.com

949-574-3860

– Financial Tables to Follow –

VIRTRA, INC.

CONDENSED BALANCE SHEETS

(Unaudited)

CHANDLER, Ariz. — August 6, 2024 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement and military markets, today announced the appointment of Brandon Cox as Chief Technology Officer, effective August 12, 2024, reporting to VirTra Chairman and CEO John Givens. In this role, Cox will lead the acceleration of VirTra’s expansion into data analytics, drive key systems integrations, and lead the development of new products and enhancements to existing ones.

Cox brings over 20 years of expertise in creating and delivering immersive 3D virtual training environments, large-scale cloud consumer products, big data analytics platforms, systems integrations, and video games and entertainment products. He has a proven track record of innovation and leadership across various industries.

He previously worked with John Givens at Bohemia Interactive Simulations as the Senior Director of Software Development and DevOps. During his tenure, Cox led global teams in product development and operations, focusing on advanced simulation technologies. He was instrumental in developing VBS IG, an image generator that leverages game-based technology to provide cost-effective training solutions. He also directed the development of VBS Tactics, a web-based interface for real-time tactical exercises, and BISIM SDKs, which allow customers to integrate game-based technology into their solutions.

Cox has vast experience helping military and commercial customers adopt emerging technologies to solve mission-critical challenges. Most recently, he served for seven years as a technical leader at Amazon and Amazon Web Services (AWS), where he led teams in delivering large-scale consumer products, developer tools, and solutions to accelerate the adoption of cloud technologies.

Cox holds a Master of Business Administration (MBA) and a Bachelor of Science in Computer Science from the University of Central Florida.

“Brandon brings extensive engineering experience and an innovative mindset to VirTra, which will be instrumental as we continue to push the boundaries of simulation training technology during this important growth phase,” said Givens. “His leadership in innovation and systems integration will advance our products’ effectiveness and expand our impact in key growth areas like military. This appointment also allows our team to focus on expanding our market presence and delivering exceptional value to clients.”

Cox added, “It’s an honor to return to the simulation industry and apply my passion for innovation and technology to make VirTra’s solutions more user-friendly and effective for our law enforcement and military customers. I look forward to working with John and the exceptional team at VirTra to drive sustained growth and innovation, ensuring our products meet the evolving needs of our customers.”

About VirTra, Inc.

Forward-Looking Statements

The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “will,” “should,” “could,” “predict,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risks and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.

Investor Relations Contact:

Matt Glover and Alec Wilson

Gateway Group, Inc.

VTSI@gateway-grp.com

949-574-3860

CHANDLER, Ariz. — July 29, 2024 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators, and firearms training simulators for the law enforcement and military markets, will hold a conference call on Monday, August 12, 2024 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss its financial results for the second quarter ended June 30, 2024. Financial results will be issued in a press release prior to the call.

VirTra management will host the presentation, followed by a question-and-answer period.

Date: Monday, August 12, 2024
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
U.S. dial-in: 1-877-407-9208
International dial-in: 1-201-493-6784

Conference ID: 13747540

The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through August 26, 2024.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13747540

About VirTra, Inc.

Investor Relations Contact:

Matt Glover and Alec Wilson

Gateway Group, Inc.

VTSI@gateway-grp.com

949-574-3860