VirTra, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>VirTra, Inc. has filed its 2023 10-K report, providing a comprehensive overview of its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

VirTra, Inc (VTSI) filed a Annual Report (10-K) with the SEC on April 1, 2024. VirTra, Inc. reported its 2023 fiscal year results in a 10-K filing. The company is incorporated in Nevada and headquartered in Chandler, Arizona. The filing covers the fiscal year ending December 31, 2023. VirTra, Inc. was formerly known as VIRTRA SYSTEMS INC and GAMECOM INC. The filing details financial information and business operations for the period.

Why It Matters

For investors and stakeholders tracking VirTra, Inc, this filing contains several important signals. This 10-K filing provides investors with detailed financial statements, management's discussion and analysis, and risk factors, enabling a thorough assessment of VirTra's performance and future prospects. Understanding the company's historical financial data and strategic disclosures is crucial for making informed investment decisions regarding VirTra, Inc. (VTSI).

Risk Assessment

Risk Level: medium — VirTra, Inc shows moderate risk based on this filing. The company's reliance on government and commercial customers, as indicated by customer concentration risk disclosures, presents a medium-level risk due to potential fluctuations in demand or contract renewals from these key segments.

Analyst Insight

Investors should closely examine the revenue breakdown by customer type and geographic region, as well as any disclosed customer concentration risks, to assess the stability and growth potential of VirTra's business.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-04-01 — Filing Date (Date of submission)
• 0001493152-24-012364 — Accession Number (Unique identifier for the filing)
• 77 — Document Count (Number of documents in the filing)

Key Players & Entities

• VirTra, Inc. (company) — Filer name
• VTSI (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-04-01 (date) — Filing date
• NV (location) — State of incorporation
• Chandler, AZ (location) — Business address
• VIRTRA SYSTEMS INC (company) — Former company name
• GAMECOM INC (company) — Former company name

FAQ

Risk Factors

• Customer Concentration Risk [medium — market]: The company faces risks related to customer concentration, particularly with government and commercial customers, which could impact revenue if these key customer segments experience reduced demand or contract changes.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-04-01: Filing Date — Date VirTra, Inc. submitted its 10-K report to the SEC.

Key Financial Figures

• $0.0001 — nge on which registered Common Stock, $0.0001 par value VTSI Nasdaq Capital Mark
• $2,794,314 — h and product development expenses were $2,794,314 and $2,606,840, respectively. Sources
• $2,606,840 — evelopment expenses were $2,794,314 and $2,606,840, respectively. Sources and Availabili
• $1 million — r any application with a total value of $1 million or higher. Any failures to comply wit

Filing Documents

• form10-k.htm (10-K) — 1375KB
• ex21-1.htm (EX-21.1) — 2KB
• ex23-1.htm (EX-23.1) — 4KB
• ex31-1.htm (EX-31.1) — 11KB
• ex31-2.htm (EX-31.2) — 11KB
• ex32-1.htm (EX-32.1) — 7KB
• ex97-1.htm (EX-97.1) — 29KB
• form10-k_001.jpg (GRAPHIC) — 23KB
• form10-k_002.jpg (GRAPHIC) — 17KB
• form10-k_003.jpg (GRAPHIC) — 3KB
• 0001493152-24-012364.txt (&nbsp;) — 6680KB
• vtsi-20231231.xsd (EX-101.SCH) — 43KB
• vtsi-20231231_cal.xml (EX-101.CAL) — 70KB
• vtsi-20231231_def.xml (EX-101.DEF) — 211KB
• vtsi-20231231_lab.xml (EX-101.LAB) — 387KB
• vtsi-20231231_pre.xml (EX-101.PRE) — 306KB
• form10-k_htm.xml (XML) — 1006KB

Business

Business 4 Item 1A. Risk Factors 9 Item 1B. Unresolved Staff Comments 18 Item 1C. Cybersecurity 18 Item 2.

Properties

Properties 19 Item 3. Legal Proceedings 19 Item 4. Mine Safety Disclosures 19 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 20 Item 6. Reserved 20 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 27 Item 8. Financial 28 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures 29 Item 9A.

Controls and Procedures

Controls and Procedures 29 Item 9B. Other Information 30 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 30 PART III Item 10. Directors, Executive Officers and Corporate Governance 30 Item 11.

Executive Compensation

Executive Compensation 35 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 41 Item 13. Certain Relationships and Related Transactions, and Director Independence 42 Item 14. Principal Accountant Fees and Services 42 . PART IV Item 15. Exhibit and Financial Statement Schedules 43 Item 16. Form 10-K Summary 44

Signatures

Signatures 45 2 FORWARD-LOOKING 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 (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), 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 risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking information contained in the reports we file with or furnish

Business

Business Overview VirTra, Inc. (the "Company," "VirTra," "we," "us" and "our"), located in Chandler, Arizona, is a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement, military, 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 highly effective virtual reality and simulator technology. The VirTra firearms training simulator allows marksmanship and realistic scenario-based training to take place on a daily basis without the need for a shooting range, protective equipment, role players, safety officers, or a scenario-based training site. We have developed a higher standard in simulation training including capabilities such as: multi-screen, video-based scenarios, unique scenario authoring ability, superior training scenarios, the patented Threat-Fire shoot-back system, powerful gas-powered simulated recoil weapons, and more. The simulator also allows students to receive immediate feedback from the instructor without the potential for sustaining injuries by the instructor or the students. The instructor is able to teach and re-mediate critical issues, while placing realistic stress on the students due to the realism and safe training environment created by the VirTra simulator.

Business

Business Strategy We have two main customer groups, namely, law enforcement, and military. These are different markets and require different sales and marketing programs as well as personnel. Our focus is to expand the market share and scope of our training simulators sales to these identified customer groups by pursuing the following key growth strategies: Build Our Core Business . Our goal is to profitably grow our market share by continuing to develop, produce and market the most effective simulators possible. Through disciplined growth in our business, we have achieved a solid balance sheet by increasing our working capital and limiting our bank debt. We plan to add staff to our experienced management team as needed to meet the expected increase in demand for our products and services as we increase our marketing and sales activities. 4 Increase Total Addressable Market . We plan to increase the size of our total addressable market. This effort will focus on new marketing and new product and/or service offerings for the purpose of widening the number of types of customers who might consider our products or services uniquely compelling. Broaden Product Offerings . Since its formation in 1993, our company has had a proud tradition of innovation in the field of simulation and virtual reality. We plan to release revolutionary new products and services, as well as to continue incremental improvements to existing product lines. In some cases, the Company may enter a new market segment via the introduction of a new type of product or service. Partners and Acquisitions. We try to spend our time and funds wisely and not tackle tasks that can be done more efficiently with partners. For example, international distribution is often best accomplished through a local distributor or agent. We are also open to the potential of acquiring additional businesses or of being acquired ourselves, based on what is expected to be optimal for our long-term future and our sto

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View this 10-K filing on SEC EDGAR