Bob Ferris Transitions from Executive Chairman of the Board to the Advisory Board

CHANDLER, Ariz. — July 9, 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 that Bob Ferris will step down from his position as Executive Chairman and will depart as a director. The Board is pleased to appoint CEO John Givens as the new Chairman of the Board. Both changes are effective July 12, 2024. Bob Ferris will continue to support VirTra as a member of its Advisory Board.

Additionally, the Company is actively identifying new independent directors to further strengthen the Board and support VirTra’s continued success.

“We are deeply grateful to Bob for his visionary leadership and the foundational role he played in establishing VirTra as a leader in virtual training,” said Givens. “Bob is widely acknowledged as a pioneer in the simulation industry, with his innovative approach dating back to the 1990s. His technological expertise has resulted in highly effective, differentiated training systems that elevate law enforcement and military training worldwide, earning him a revered spot in The National Center for Simulation Hall of Fame. Under his guidance, VirTra developed groundbreaking technologies such as the world’s first 5-screen, 300-degree training simulator, Threat-Fire® return fire, patented recoil kits, V-Author®, V3™ volumetric capture studio, and a host of other ‘world’s firsts’. These innovations have made VirTra a leader in training solutions, supporting agencies across more than 40 countries. We look forward to building on Bob’s legacy and his continued support on VirTra’s Advisory Board.”

Ferris commented, “Building VirTra from the ground up has been a deeply humbling journey. The success of VirTra is owed to overflowing blessings from God, our exceptional and dedicated team, an unmatched focus on delivering uniquely effective products to our customers, and support from our loyal shareholders. I will always cherish the memories of all that we accomplished together—the lives saved and tragedies avoided—because we were bold enough to believe we could push the world’s simulation training standards to far greater levels than ever achieved before. With the highest confidence, I pass on VirTra’s future to John and the leadership team to continue saving lives through better training for military and law enforcement personnel, while generating exceptional rewards for our shareholders.

I want to express my heartfelt thanks to every member of our team, past and present, whose hard work has been the cornerstone of our success. I look forward to seeing VirTra achieve even greater heights under John’s capable leadership.”

Givens has served as sole CEO of VirTra since August 2023, after serving as co-CEO alongside Ferris starting in May 2022. Givens has been a member of VirTra’s Board of Directors since November 2020. Previously, Givens helped to start, grow and sell a company in the military simulation market for $200 million. Under his leadership, VirTra has achieved significant milestones, including the consolidation of production into a state-of-the-art facility to streamline operations and boost production efficiency; progress in capturing military end-market opportunities; and the introduction of the V-XR™ headset-based training platform. His appointment as Chairman marks a natural progression in the Company’s evolution, aligning leadership roles with the strategic objectives aimed at driving long-term growth.

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.

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

CHANDLER, Ariz. — June 13, 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 that its simulators have been approved for Department of Defense (“DoD”) funding for research projects. This approval is supported by the results of a recent independent research study conducted by Ohio State University.

The study, published by a third party, assessed VirTra’s V-100 Simulator and confirmed that VirTra simulators can record shooting performance accurately and track individual progress over time reliably, thereby qualifying them as verified and consistent research tools.

Researchers at Ohio State University studied 30 participants with varying degrees of rifle-handling experience to evaluate the V-100 Ballistic Simulator’s capabilities as a training device and research tool. They found that the system accurately captured shooting data, decision-making, and reaction time down to millimeters and milliseconds. These significant findings support the use of VirTra’s simulators as research tools and could lead to their use in a first-ever standardized performance score system for virtual reality ballistics training.

“Our research group used the V-100 Ballistic Simulator as an outcome variable for our study and found that it has excellent day-to-day reproducibility of performance, which is crucial for research,” said Jeff Volek, professor of human sciences at Ohio State. “A sensitive and reproducible outcome is essential in tests where equipment variation must be minimized. Alex Buga from my research team created several programs that enabled us to calculate shooting data and produce objective training measures. VirTra’s equipment closely simulates what the military and police use daily, indicating its potential as a screening tool across the country.”

VirTra simulators, now qualified as research tools, assist in the collection, processing, analysis, and interpretation of data across various disciplines, including natural sciences, social sciences, and military sciences. The key characteristics that make VirTra simulators invaluable for research include their accuracy and precision, efficient data management, advanced analytical capabilities, reproducibility, user-friendly interface, integration with other systems, robust security features, and comprehensive support and documentation.

The study’s findings corroborate the research industry’s steady adoption of VirTra simulators for investigative purposes. Top-level investigators, such as Force Science, already use VirTra simulators to conduct human performance under stress research.

“At Force Science, we are involved in many of the United States’ most high-profile use-of-force investigations, where we are required to research, analyze, and demonstrate the reality of human performance under stress,” said Von Kliem, Chief Consulting and Communications Officer at Force Science. “With VirTra simulators, we can swiftly and securely recreate dynamic force encounters. Their precision technology allows us to measure movement times, shot times, and response intervals with the consistency and accuracy necessary for valid and reliable research. The validity of research conducted with VirTra systems enables us to study diverse populations and establish realistic expectations for human performance during threat assessments, decision-making, and critical de-escalation efforts.”

The research study conducted by Ohio State University was published on June 6, 2024, in The Journal of Strength and Conditioning Research.

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.

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

CHANDLER, Ariz. — June 4, 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, is set to join the broad-market Russell 3000® Index at the conclusion of the 2024 Russell indexes annual reconstitution, effective after the US market opens on July 1, according to a preliminary list of additions posted last month.

Annual Russell indexes reconstitution captures the 4,000 largest US stocks as of April 30, ranking them by total market capitalization. Membership in the US all-cap Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000® Index or small-cap Russell 2000® Index as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings, and style attributes.

“VirTra’s inclusion in the Russell 3000® validates our strategic progress and highlights our forward trajectory as a leader in effective training solutions for law enforcement and military applications,” said CEO John Givens. “Over the past year, we’ve significantly enhanced our operational capabilities and continued to innovate to meet the growing demand in these markets. We expect our inclusion in this respected index to bring increased exposure to the broader investment community as we work to deliver long-term value to our shareholders.”

Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. Russell’s US indexes serve as the benchmark for about $10.5 trillion in assets as of the close of December 2023. Russell indexes are part of FTSE Russell, a leading global index provider.

For more information on the Russell 3000® Index and the Russell indexes reconstitution, please visit the “Russell Reconstitution” section on the FTSE Russell website.

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 FTSE Russell
FTSE Russell is a leading global provider of benchmarking, analytics, and data solutions for investors, giving them a precise view of the market relevant to their investment process. A comprehensive range of reliable and accurate indexes provides investors worldwide with the tools they require to measure and benchmark markets across asset classes, styles, or strategies.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products, and index-based derivatives.

FTSE Russell is focused on applying the highest industry standards in index design and governance, employing transparent rules-based methodology informed by independent committees of leading market participants. FTSE Russell fully embraces the IOSCO Principles, and its Statement of Compliance has received independent assurance. Index innovation is driven by client needs and customer partnerships, allowing FTSE Russell to continually enhance the breadth, depth and reach of its offering.

FTSE Russell is wholly owned by London Stock Exchange Group.

For more information, visit https://www.lseg.com/en/ftse-russell.

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 Contact:
Matt Glover and Alec Wilson
Gateway Group, Inc.
949-574-3860
VTSI@gateway-grp.com

VirTra Case Study – Frank Tonkovich & Naperville PD

On June 3, 2022, Naperville Police Officer Frank Tonkovich pulled over a black Honda Civic after watching it disobey a stop sign. But the ordinary traffic stop soon took a horrific turn when another vehicle stopped in the middle of the road while Tonkovich spoke with the Civic driver. A man, Edward Samaan, exited his car and charged at the officer with a hatchet in hand. Tonkovich drew and fired his service weapon, killing Samaan. Both Tonkovich and the Civic driver were unharmed.

An investigation found that Tonkovich acted in accordance with the law and that his use of force was justified. Under Illinois state law, “the decision to use force by an officer shall be evaluated from the perspective of a reasonable officer in the same situation” without the benefit of hindsight. The County of Dupage found that it was reasonable for Tonkovich to believe that the Samaan intended to inflict harm to him and/or the motorist he had stopped and that Tonkovich’s use of force was not only justified but necessary. Furthermore, the OIS event has served as a training example of acceptable use of force, saving his life and that of the stopped driver.

The body camera doesn’t show it very well, but the driver had that kind of crazy look in his eyes. There’s something’s going on here, right? The next thing I saw when he charged me was that he was holding a hatchet and I knew this was really bad. My next instinct was get the firearm out. And obviously, I decided to use my weapon, and shoot until I thought there wasn’t a threat anymore.

In the months before the officer involved shooting, Naperville PD began seeking new ways to improve its officer training. By July, it acquired a VirTra V-180 simulator via VirTra’s STEP lease plan. Tonkovich trained multiple use-of-force scenarios using the virtual reality simulator, including scenarios designed to test student officers’ situational awareness and response to unexpected threats. Frank said that the training scenarios prepared him for the incident on June 3, 2022.

It was a very quick situation. It felt like time slowed down, and I fell back on my training when it happened. We had been running scenarios on our new VirTra. Many scenarios had people getting out of cars with something in their hands, so I got to be very keen on looking at people’s hands and watching people to make the best and the right decision.

VirTra collaborated with training experts and law enforcement organizations to ship the V-180 simulator with a certified curriculum. Several featured scenarios where the student officer must react quickly to threats, often without warning, in order to foster situational awareness and officer safety, such as a drive-by shooter interrupting an exchange with an unruly citizen.

Right after the shooting happened, I actually told my chief that this was exactly like the training we had in VirTra. You can go to the shooting gallery and practice with paper targets which is great. But when you have to put that skill to use and be aware of your surroundings in a senario. I mean, there’s a lot of things to process at once – I think it helps you and it helped me that day.

Improving Police Training with VirTra

VirTra partners with agencies like Naperville PD to create intense, realistic, and lifesaving training. Allocating training resources poses a major challenge to law enforcement officers, which VirTra aims to solve with training solutions that require less staff, pre-made certified curricula, lessons perfect for interleaved training during roll calls, and less space than competing options.

 

Of the $334M federal grants offered to law enforcement agencies nationwide, the Department of Justice reserved almost 15% for de-escalation training. This translates to over $43.6M in funding to overhaul or at least reform training efforts that resolve disputes without use of force. Clearly, it pays to improve de-escalation.

Driven by public outcry, policy, and genuine efforts from within the law enforcement community,  de-escalation reform promises to reduce harm on both sides of police encounters: officers and citizens.

However, as departments claim these opportunities and begin implementing new training, one question remains. Which training methods actually protect officers and the people they serve, and which just check the boxes?

 

Which De-Escalation Trainings Work, According to the Data?

Recent studies show that some forms of training significantly reduce use-of-force incidents without putting first responders at risk. The Integrating Communications, Assessment, and Tactics (ICAT) program showed promise in a study, leading to a 25% decrease in civilian injuries and a 36% reduction in officer injuries.[1] This training method emphasizes using time and distance to reduce tensions, slowing high-pressure interactions like how SWAT teams navigate prolonged disputes. ICAT faced limitations, however. Agency leaders noted that the program was expensive and without regular reinforcement, the benefits of the training wore off, putting officers at risk. Future implementations must prioritize regularity to see desirable results.

 

VR training may be the shot in the arm that de-escalation training needs. Since virtual scenarios require less staff and space, VR and XR allows agencies to practice with the frequency required to be effective in the field. A study of 63 participants showed that virtual and live-action de-escalation training led to similar improvements in conflict resolution across multiple categories.[2]

 

X-XR Extended Reality Training Solution

While virtual training has made headway in law enforcement, several drawbacks hold it back from reaching its potential. Motion sickness, implementation costs, and outdated graphics reduce training time and retention.

VirTra has stepped in to bridge this gap, with a new extended reality headset. The device effectively eliminates VR sickness by allowing trainees to see their surroundings. V-XR’s characters are created using volumetric video capture instead of traditional CGI, leading to much more realistic interactions. To learn more about V-XR, click here.

 

[1] Louisville Metro Police Department, “ICAT Evaluation Initial Findings Report,” September 21, 2020, https://www.theiacp.org/sites/default/files/Research%20Center/LMPD_ICAT%20Evaluation%20Initial%20Findings%20Report_FINAL%2009212020.pdf

[2] Jennifer Lavoie, Natalie Álvarez, Victoria Baker, Jacqueline Kohl, “Training police to de-escalate mental health crisis situations: Comparing virtual reality and live-action scenario-based approaches,” Policing: A Journal of Policy and Practice 17 (2023): paad069, https://doi.org/10.1093/police/paad069.

CHANDLER, Ariz. — May 14, 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 first quarter ended March 31, 2024. The financial statements are available on VirTra’s website and here.

First Quarter 2024 and Recent Operational Highlights:

  • Progressed V-XR launch preparations. VirTra readied its extended reality training platform focused on soft skills development, for market introduction in the coming months. This strategic launch is expected to broaden VirTra’s reach within core law enforcement markets and expand the company’s presence in new sectors such as healthcare and education.
  • Continued enhancing content delivery capabilities. VirTra expanded its content library across its multiple training platforms, integrating more comprehensive and diverse scenarios that address a wider range of real-world situations, thus improving training effectiveness across various use cases.
  • Continued improving operational efficiencies through production optimization processes and ERP enhancements, supporting faster order fulfillment and scalable growth.
  • Maintained robust working capital at $33.2 million, positioning the Company for sustained growth and operational agility.

First Quarter 2024 Financial Highlights:

 

 

Management Commentary

CEO John Givens stated, “The first quarter of 2024, while showing a dip in revenue, marked another period of strategic execution as we continue to build on the transformative groundwork laid over the past two years. The anticipated revenue fluctuation was primarily due to the cyclical nature of budget allocations, often skewed towards year-end, coupled with the impact of the U.S. government’s continuing resolution, and the completion of a large portion of our capital backlog in 2023. We remain optimistic that the integration of new sales strategies and team members will begin to influence our financial results as the year progresses, especially as these initiatives mature and the U.S. government budget resolutions advance, catalyzing purchasing decisions.

“The forthcoming launch of V-XR is set to broaden the scope of our training solutions, tailored to all agency sizes and budgets. This new platform will also expand our market reach into sectors such as healthcare and education. With V-XR, we are cultivating a frontier for continued growth and reinforcing our position as a leader in producing effective training outcomes.”

“Our operational enhancements, including our consolidation into a single state-of-the-art production facility and the implementation of an upgraded ERP system, have been pivotal in elevating our operational excellence. These improvements have enabled more efficient production, higher quality outputs, and quicker delivery times, thereby enhancing customer satisfaction. Additionally, the Microsoft IVAS contract has propelled our research and development efforts in the military market, advancing our technology and providing insights that aid in deeper market penetration both domestically and abroad. As our strategic initiatives continue to take root throughout 2024, we are well-positioned to capitalize on the opportunities presented by our upcoming technology introductions and growing content library.”

First Quarter 2024 Financial Results

Total revenue was $8.1 million, compared to $10.0 million in the prior year period. The 19% decrease was primarily due to delays in federal funding, attributed to the U.S. government’s continuing resolution, which caused numerous contracts to be placed on hold. This temporary challenge impacted bookings in both the fourth quarter of 2023 and the first quarter of 2024.

Gross profit totaled $5.5 million (67% of total revenue), compared to $6.9 million (69% of total revenue) in the prior year period. The 21% decrease in gross profit was primarily due to the change in sales. Gross margin decreased mainly due to cost increases from the Microsoft contract. Specifically, a milestone payment in December 2023, which incurred minimal costs, previously boosted margins. However, costs associated with a subsequent milestone payment in the first quarter of 2024 adversely affected the gross margin. Effective cost management in other system sales partially offset this effect.

Net operating expense was $4.1 million, marking a 17% increase from $3.5 million in the prior year period. This rise was driven by higher payroll and benefits associated with recruiting senior-level staff for strategic growth, increased IT spending to enhance compliance for potential government contracts, and expanded travel to broaden sales territory coverage.

Operating income was $1.4 million, compared to $3.5 million in the first quarter of 2023.

Net income was $1.2 million, or $0.11 per diluted share (based on 11.0 million weighted average diluted shares outstanding), compared to net income of $2.9 million, or $0.27 per diluted share (based on 10.9 million weighted average diluted shares outstanding), in the first quarter of 2023.

Adjusted EBITDA, a non-GAAP metric, was $1.9 million, compared to $4.0 million in the first quarter of 2023.

Cash and cash equivalents were $22.4 million at March 31, 2024.

Financial Commentary

CFO Alanna Boudreau remarked, “The first quarter demonstrated the effectiveness of our operational enhancements in maintaining a strong gross margin. Despite a challenging revenue environment, we implemented rigorous cost management strategies, focusing on optimizing our production processes and strategic procurement to mitigate the impacts of increased costs from key contracts and operational expansions. Our recurring revenue streams, including the STEP program, services, and warranties, continued to grow in Q1, reaching 23% of total revenue and representing an increasingly predictable revenue base. Looking ahead, we remain focused on improving bookings performance and stabilizing backlog amidst order seasonality. With strategic initiatives underway, particularly the launch of V-XR, we are positioning ourselves to improve our revenue growth for the remainder of 2024 compared to Q1. Our robust working capital shows our financial strength and supports strategic initiatives, including scaled production of the V-XR.”

Conference Call

VirTra’s management will hold a conference call today (May 14, 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: 13746016

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 May 28, 2024.

 

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

International replay number: 1-412-317-6671

Replay ID: 13746016

 

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

(Unaudited)

 

 

VIRTRA, INC.

CONDENSED STATEMENTS OF OPERATIONS

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VIRTRA, INC.

CONDENSED STATEMENTS OF CASH FLOWS

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CHANDLER, Ariz. — April 30, 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, May 14, 2024 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss its financial results for the first quarter ended March 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: Tuesday, May 14, 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: 13746016

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 Group 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 May 28, 2024.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13746016

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

CHANDLER, Ariz. — April 29, 2024 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra”), a global provider of judgmental use-of-force training simulators and firearms training simulators for the law enforcement and military markets, announced its participation at the International Association for Healthcare Security & Safety (IAHSS) Conference and Exhibition in Orlando from April 29 to May 1, 2024. As a first-time vendor, VirTra will introduce its new V-XR headset training solution at the event, highlighting its advanced functionality and ability to meet diverse training demands, particularly in healthcare settings.

The IAHSS Annual Conference and Exhibition is a key event for healthcare’s top security, safety, and emergency management leaders to network, meet with vendors, and find solutions for their challenges. This year, VirTra joins the expo to demonstrate the effectiveness of its new V-XR training solution, a compact, lightweight headset training simulator with a focus on de-escalation scenarios. The headset features hyper-realistic characters created using volumetric video capture and pass-through to reduce motion sickness for the user.

VirTra’s recent entry into the healthcare market began last month when it partnered with Ascension St. John Hospital (“Ascension”) to equip its team with advanced training simulators. VirTra’s V-180 was a practical application of Ascension’s grant funds.

Darrel Long, Director of Security for Ascension Oklahoma, noted the impact, stating, “We can implement frequent training in scenarios representing our environment. The V-180 is a tremendous asset and allows all security officers within the Ascension St. John Health System to ensure patient and associate safety.”

Ascension also reported the system’s success in a recent case study, available to download on VirTra’s website. The study highlights the simulator’s wide range of training scenarios and how it allows the entire staff, not just the security team, to practice skills that keep them safe.

As VirTra’s role in healthcare security expands, multiple other healthcare organizations have already adopted its technologies. Ohio Healthcare PD, TriHealth Cincinnati, Marion Hospital in Indiana, Indiana University Hospital, Health First Security in Florida, and several VA locations have begun training their teams using VirTra simulators.

John Givens, CEO of VirTra, stated, “Every day, medical providers around the country go beyond the call of duty for their patients. VirTra supports every initiative within our capabilities to ensure the security of hospital staff while on the job. With our V-XR training solution, we are not only enhancing safety in healthcare environments but also demonstrating its cross-market functionality, allowing us to begin expansion beyond our core law enforcement and military markets. I’m confident that the training provided by our simulators will instill a renewed sense of safety among hospital staff, patients, and their visitors.”

VirTra’s entry into healthcare security coincides with an increase in unruly and sometimes violent behavior directed at healthcare providers. A 2022 report from the American College of Emergency Physicians revealed a significant increase in healthcare violence, with 55% of physicians surveyed saying they had been physically assaulted while at work. With the increased demand for hospital security, VirTra is stepping up to provide advanced use-of-force, de-escalation, and other forms of simulator-based training to its healthcare partners.

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.

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

 

CHANDLER, Ariz. — April 18, 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, today announced a $5.9 million order for prototypes to support the U.S. Army’s Integrated Visual Augmentation System (“IVAS”) program. This order represents an important continuation in VirTra’s engagement with the IVAS program. VirTra will recognize revenue in three phases with reliability testing, soldier assessment, and final hardware deliveries, all scheduled in 2024.

The order includes bolt kits and magazines and high-pressure air fill stations for the IVAS program specifications with Microsoft as the prime contractor. In its role as the prime contractor, Microsoft ensures cohesive project delivery, integrating VirTra’s training hardware with the objectives of the IVAS program. The recoil hardware has been engineered with a focus on intense environmental conditions, performance and reliability. To achieve uninterrupted and realistic recoil feedback, the fill stations utilize high-pressure air (HPA) technology reaching 3,000 psi. The hardware has been engineered for a realistic training experience for our military personnel.

John Givens, CEO of VirTra, stated, “This additional prototype contract award, in support of the IVAS program, is a testament to the reliability and performance of our technology. This series of awards has implemented new features and tuned our design to meet the rigorous requirements of the program. Our enhanced production capabilities and investment in new technologies have solidified our contract execution by improving quality and capacity.”

Over the past two years, VirTra has significantly expanded its production capacity and improved operating efficiencies, while refining its hardware designs. These advancements highlight the Company’s readiness for mass production and commitment to fulfilling the U.S. Army’s expanding needs. In support of this effort, Microsoft has scheduled on-location Soldier Assessments at Fort Belvoir, Virginia, in 2024.

The U.S. Army’s requirements highlight the industry’s shift towards more advanced and immersive training experiences for servicemembers. VirTra’s recoil hardware will provide enhanced training capabilities and readiness to support improved standards for military training and set the stage for future advancements in defense technology.

For more information about VirTra’s advanced recoil kits and other innovative training solutions, please visit VirTra’s website: https://www.virtra.com/tool/military-recoil-kits/

About Integrated Visual Augmentation System (“IVAS”) Program

The Integrated Visual Augmentation System (IVAS) provides a single platform that allows the Soldier to Fight, Rehearse, and Train. It leverages tactical Mixed Reality to increase the Warfighter’s battlefield awareness and ability to rapidly identify potential threats and take decisive action. The IVAS enables tactical planning, networked information sharing, and an augmented reality Synthetic Training Environment (STE) that will enable Warfighters to fight 25 “bloodless battles” before engaging the enemy.

The Army is developing IVAS to respond to an erosion in close combat capability relative to pacing threats identified in the 2018 National Defense Strategy via a Middle Tier Acquisition (MTA) Rapid Prototype pathway. IVAS integrates next generation 24/7 situational awareness tools and high-resolution simulations to deliver a single platform that improves Soldier sensing, decision making, target acquisition, and target engagement. These capabilities will provide the increased lethality, mobility, and situational awareness necessary to achieve overmatch against our current and future adversaries.

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.

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

Annual Revenue Grows to a Record $38.0 Million, Marking a 34% Increase

Net Income Increases to $8.4 Million in 2023

 

CHANDLER, Ariz. — April 1, 2024 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra”), a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement and military markets, reported results for the fourth quarter and full year ended December 31, 2023. The financial statements are available on VirTra’s website and here.

Fourth Quarter 2023 Financial Summary:

  • Total revenue increased 17% year-over-year to $10.1 million
  • Gross profit increased 58% year-over-year to $8.4 million, or 83% of total revenue
  • Net income increased by $1.4 million year-over-year to $2.8 million
  • Adjusted EBITDA totaled $2.2 million
  • Cash and cash equivalents of $18.9 million at December 31, 2023

 

Full Year 2023 Financial Summary:

  • Total revenue increased 34% to $38.0 million
  • Gross profit increased 64% to $26.7 million, or 70% of total revenue
  • Net income increased by $6.4 million to $8.4 million
  • Adjusted EBITDA totaled $11.6 million

Fourth Quarter and Full Year 2023 Financial Highlights:

“2023 was a year of substantial transformation, which culminated in a strong fourth quarter with revenue of $10.1 million – our third double-digit million revenue quarter in 2023. This performance led to record-breaking annual revenue of $38.0 million, representing a 34% increase from 2022,” said VirTra CEO John Givens. “Our success has been the result of strategic changes we’ve implemented across our business, particularly in enhancing our internal operations. Last year, we successfully upgraded our machine shop and consolidated production into a single facility, implemented a new ERP system, and revised our processes for scalability, just to name a few of the operational strides we took. These actions have increased our throughput significantly and improved our book-to-ship ratio, all while reducing production costs and maintaining excellent product quality. We are now shipping orders that we receive within days instead of years, and we have set a solid foundation for future success as demand for our solutions continues to rise.”

“This strategic overhaul was instrumental in effectively working through the substantial backlog we faced entering 2023. With that backlog down to $19.4 million entering 2024, growing bookings and our pipeline will be critical to our growth trajectory going forward. To align more closely with future growth opportunities, we also restructured our sales team, introducing new methodologies, adopting a territory-based approach, and revising our compensation structure. We expect these adjustments to enhance our sales productivity and bolster our customer success functions.

“As our newly implemented sales strategies begin to take root, we expect that the technological innovations we made in 2023 will drive further interest from the core law enforcement market and the military sector. The introduction of V-XR®, our extended reality training platform, has been met with great interest, with a very positive market reception setting us up for strong delivery volume starting in the next few months. V-XR’s emphasis on training soft skills, such as managing mental health crises, is set to broaden our reach within our core target markets but also in wider settings, such as in hospitals and educational institutions. Additionally, to better serve military customers, we integrated VBS, a premier military software that facilitates the creation of real-time, geo-specific training into our simulators. Despite the typically longer sales cycles in the military market, our foothold is expanding ahead of schedule.

“Building on our operating momentum, we are moving into the second quarter with high confidence in our trajectory for continued growth for 2024.”

Fourth Quarter 2023 Financial Results

Total revenue increased 16% to $10.1 million from $8.7 million in the fourth quarter of 2022. The increase in revenue was driven by continued demand for training solutions with government customers, both domestically and internationally.

Gross profit increased 58% to $8.4 million from $5.3 million in the fourth quarter of 2022. Gross profit margin was 83%, an increase compared to 61% in the fourth quarter of 2022.

Net operating expense was $5.8 million, compared to $3.4 million in the fourth quarter of 2022. The increase in net operating expense was associated with additional staffing and the opening of the Company’s Orlando facility.

Operating income increased by $0.7 million to $2.6 million from $1.9 million in the fourth quarter of 2022.

Net income was $2.8 million, or $0.25 per diluted share (based on 11.0 million weighted average diluted shares outstanding), an improvement compared to net income of $1.4 million, or $0.13 per diluted share (based on 10.9 million weighted average diluted shares outstanding), in the fourth quarter of 2022.

Adjusted EBITDA, a non-GAAP metric, was $2.2 million, compared to $1.9 million in the fourth quarter of 2022.

Full Year 2023 Financial Results

Total revenue increased 34% to $38.0 million from $28.3 million in 2022. The increase in revenue was primarily the result of increases in simulator and accessory sales, STEP sales, and design and prototyping revenue.

Gross profit increased 64% to $26.7 million from $16.3 million in 2022. Gross profit margin was 70%, an increase compared to 57% in 2022. The increase in gross profit margin was primarily due to the aforementioned increase in revenue while maintaining cost of sales in line with 2022 levels. Also contributing to this increase was an unusual event of the Company’s receiving a $3 million kickoff milestone payment in connection with a contract for custom work, for which no significant costs were associated.

Net operating expense was $17.0 million in 2023, compared to $13.7 million in 2022. The increase in net operating expense was primarily driven by an increase in salaries and benefits resulting from the addition of new staff, expenses for the new Orlando office, as well as an increase in R&D spend, and the implementation expense related to the launch of the Company’s new ERP system.

Operating income jumped to $9.6 million in 2023, a $7.0 million increase from $2.6 million in the prior year period.

Net income was $8.4 million, or $0.77 per diluted share (based on 11.0 million weighted average diluted shares outstanding), an improvement compared to net income of $2.0 million, or $0.18 per diluted share (based on 10.9 million weighted average diluted shares outstanding), in 2022.

Adjusted EBITDA, a non-GAAP metric, increased to $11.6 million from $4.06 million in 2022.

Financial Commentary

“In the fourth quarter we continued to grow our revenue while making improvements to our profitability metrics,” said VirTra CFO Alanna Boudreau. “The changes we’ve made internally to our operations have also had a significant effect on the margin growth we had in the fourth quarter and throughout the year. Based on our recent performance, we are expecting that our backlog will remain lower than past levels historically as we focus on continuing to improve our book-to-ship ratio moving forward. We anticipate continued revenue and profitability expansion as we move into additional markets outside of law enforcement in 2024.”

Conference Call

VirTra’s management will hold a conference call today (April 1, 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: 13743893

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 14, 2024.

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

International replay number: 1-412-317-6671

Replay ID: 13743893

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

(UNAUDITED)

VIRTRA, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)