VirTra, Inc. Files 10-Q for Q1 2024

TL;DR

<b>VirTra, Inc. experienced a revenue decline and increased operating expenses in Q1 2024, resulting in a net loss.</b>

AI Summary

VirTra, Inc (VTSI) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. VirTra, Inc. reported net sales of $10.1 million for the three months ended March 31, 2024. Net sales decreased by 10% from $11.2 million for the same period in 2023. Gross profit for Q1 2024 was $5.6 million, a decrease from $6.7 million in Q1 2023. Operating expenses increased to $5.9 million in Q1 2024 from $5.1 million in Q1 2023. The company reported a net loss of $0.3 million for Q1 2024, compared to a net income of $1.3 million in Q1 2023.

Why It Matters

For investors and stakeholders tracking VirTra, Inc, this filing contains several important signals. The decrease in net sales and gross profit suggests potential challenges in revenue generation or cost management during the quarter. The rise in operating expenses, despite lower sales, indicates increased investment in operations or other areas, impacting profitability.

Risk Assessment

Risk Level: high — VirTra, Inc shows elevated risk based on this filing. The company reported a net loss of $0.3 million in Q1 2024, a significant downturn from a net income of $1.3 million in Q1 2023, indicating a weakening financial performance.

Analyst Insight

Investors should monitor future filings for signs of revenue recovery and improved cost control to assess the company's path back to profitability.

Revenue Breakdown

Key Numbers

• 10.1 million — Net Sales (Three months ended March 31, 2024)
• 11.2 million — Net Sales (Three months ended March 31, 2023)
• 5.6 million — Gross Profit (Three months ended March 31, 2024)
• 6.7 million — Gross Profit (Three months ended March 31, 2023)
• 5.9 million — Operating Expenses (Three months ended March 31, 2024)
• 5.1 million — Operating Expenses (Three months ended March 31, 2023)
• 0.3 million — Net Loss (Three months ended March 31, 2024)
• 1.3 million — Net Income (Three months ended March 31, 2023)

Key Players & Entities

• VirTra, Inc. (company) — Filer
• NV (company) — State of Incorporation
• CHANDLER (company) — City
• AZ (company) — State
• 85225 (company) — ZIP Code

FAQ

Risk Factors

• Revenue Decline and Net Loss [high — financial]: The company experienced a 10% decrease in net sales and a shift from net income to a net loss in Q1 2024 compared to Q1 2023.
• Increased Operating Expenses [medium — operational]: Operating expenses rose to $5.9 million in Q1 2024 from $5.1 million in Q1 2023, despite lower sales.

Key Financial Figures

• $0.0001 — nge on which registered Common Stock, $0.0001 par value VTSI Nasdaq Capital Mark

Filing Documents

• form10-q.htm (10-Q) — 669KB
• ex31-1.htm (EX-31.1) — 11KB
• ex31-2.htm (EX-31.2) — 11KB
• ex32-1.htm (EX-32.1) — 7KB
• 0001493152-24-019234.txt (&nbsp;) — 4278KB
• vtsi-20240331.xsd (EX-101.SCH) — 33KB
• vtsi-20240331_cal.xml (EX-101.CAL) — 55KB
• vtsi-20240331_def.xml (EX-101.DEF) — 164KB
• vtsi-20240331_lab.xml (EX-101.LAB) — 290KB
• vtsi-20240331_pre.xml (EX-101.PRE) — 229KB
• form10-q_htm.xml (XML) — 596KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) F-1 Condensed Balance Sheets as of March 31, 2024 and December 31, 2023 F-1 Condensed Statements of Operations for the Three Months ended March 31, 2024 and 2023 F-2 Condensed Statements of Changes in Stockholders' Equity for the Three Months Ended March 31, 2024 and 2023 F-3 Condensed F-4 Notes to the Unaudited Financial Statements F-5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 3 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 9 Item 4.

Controls and Procedures

Controls and Procedures 9 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 9 Item 1A.

Risk Factors

Risk Factors 9 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 9 Item 3. Defaults Upon Senior Securities 9 Item 4. Mine Safety Disclosures 9 Item 5. Other Information 10 Item 6. Exhibits 10

SIGNATURES

SIGNATURES 11 2 PART I: FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS VIRTRA, INC. CONDENSED BALANCE SHEETS (unaudited) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 22,415,177 $ 18,849,842 Accounts receivable, net 10,300,165 15,724,147 Inventory, net 12,292,460 12,404,880 Unbilled revenue 1,681,375 1,109,616 Prepaid expenses and other current assets 832,712 906,803 Total current assets 47,521,889 48,995,288 Long-term assets: Property and equipment, net 16,799,459 15,487,012 Operating lease right-of-use asset, net 588,794 716,687 Intangible assets, net 565,318 567,540 Security deposits, long-term 35,691 35,691 Other assets, long-term 201,670 201,670 Deferred tax asset, net 3,663,357 3,630,154 Total long-term assets 21,854,289 20,638,754 Total assets $ 69,376,178 $ 69,634,042 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,695,042 $ 2,282,427 Accrued compensation and related costs 2,176,078 2,221,416 Accrued expenses and other current liabilities 4,382,361 3,970,559 Note payable, current 226,655 226,355 Operating lease liability, short-term 323,038 317,840 Deferred revenue, short-term 5,538,525 6,736,175 Total current liabilities 14,341,699 15,754,772 Long-term liabilities: Deferred revenue, long-term 3,004,418 3,012,206 Note payable, long-term 7,751,585 7,813,021 Operating lease liability, long-term 289,687 432,176 Total long-term liabilities 11,045,690 11,257,403 Total liabilities 25,387,389 27,012,175 Commitments and contingencies (See Note 11) - - Stockholders' equity: Preferred stock $ 0.0001 par value; 2,500,000 authorized; no shares issued or outstanding - - Common stock $ 0.0001 par value; 50,000,000 shares authorized; 11,109,730 shares issued and outstanding as of March 31, 2024 and 11,107,230 shares issued and outstanding as of December 31, 2

View Full Filing

View this 10-Q filing on SEC EDGAR