| VirTra Reports Fourth Quarter and Full Year 2023 Financial ResultsGlobeNewswireApril 01, 2024 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 01, 2024 (GLOBE NEWSWIRE) -- 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 millionGross profit increased 58% year-over-year to $8.4 million, or 83% of total revenueNet income increased by $1.4 million year-over-year to $2.8 millionAdjusted EBITDA totaled $1.7 millionCash and cash equivalents of $18.9 million at December 31, 2023Full Year 2023 Financial Summary: Total revenue increased 34% to $38.0 millionGross profit increased 64% to $26.7 million, or 70% of total revenueNet income increased by $6.4 million to $8.4 millionAdjusted EBITDA totaled $11.6 millionFourth Quarter and Full Year 2023 Financial Highlights: For the Three Months EndedFor the Twelve Months EndedAll figures in millions, except per share dataDecember 31, 2023December 31, 2022% DDecember 31, 2023December 31, 2022% DTotal Revenue$10.1$8.617%$38.0$28.334%Gross Profit$8.4$5.358%$26.7$16.364%Gross Margin83%61%N/A70%57%N/ANet Income (Loss)$2.8$1.4N/A$8.4$2.0N/ADiluted EPS$0.25$0.13N/A$0.77$0.18N/AAdjusted EBITDA$1.7$1.9N/A$11.6$4.0N/AManagement Commentary "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(R), 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 $1.7 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 $11.1 million from $3.6 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 CallVirTra'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: 1-877-407-9208International number: 1-201-493-6784Conference 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 November 28, 2023. Toll-free replay number: 1-844-512-2921International replay number: 1-412-317-6671Replay 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 EBITDAAdjusted 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: For the Years EndedDecember 31,December 31,Increase%20232022(Decrease)ChangeNet Income$8,402,858$1,955,898$6,446,960330%Adjustments:Provision for income taxes1,818,812571,6421,247,170218%Depreciation and amortization928,545887,11841,4275%Interest (net)(20,440)190,772(211,212)(111)%EBITDA$11,129,775$3,605,430$7,524,345209%Right of use amortization496,127412,33583,79220%Adjusted EBITDA$11,625,902$4,017,765$7,608,137189%Forward-Looking StatementsThe 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 WilsonGateway Group, Inc. VTSI@gateway-grp.com949-574-3860 - Financial Tables to Follow -VIRTRA, INC.CONDENSED BALANCE SHEETSDecember 31,December 31,20232022ASSETSCurrent assets:Cash and cash equivalents$18,849,842$13,483,597Accounts receivable, net15,724,1473,002,887Inventory, net12,404,8809,592,328Unbilled revenue1,109,6167,485,990Prepaid expenses and other current assets906,803531,051Total current assets48,995,28834,095,853Long-term assets:Property and equipment, net15,487,01215,267,133Operating lease right-of-use asset, net716,6871,212,814Intangible assets, net567,540587,777Security deposits, long-term35,69135,691Other assets, long-term201,670376,461Deferred tax asset, net3,630,1542,238,762Total long-term assets20,638,75419,718,638Total assets $69,634,042$53,814,491LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable$2,282,427$1,251,240Accrued compensation and related costs2,221,4161,494,890Accrued expenses and other current liabilities3,970,5591,917,922Note payable, current226,355232,537Operating lease liability, short-term317,840557,683Deferred revenue, short-term6,736,1754,302,492Total current liabilities15,754,7729,756,764Long-term liabilities:Deferred revenue, long-term3,012,2061,605,969Note payable, long-term7,813,0218,050,116Operating lease liability, long-term432,176720,023Total long-term liabilities11,257,40310,376,108Total liabilities27,012,17520,132,872Commitments and contingencies (See Note 11)Stockholders' equity:Preferred stock $0.0001 par value; 2,500,000 authorized; no shares issued or outstandingCommon stock $0.0001 par value; 50,000,000 shares authorized; 11,107,230 shares and 10,900,759 shares issued and outstanding as of December 31, 2023 and 2022, respectively1,1091,089Class A common stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstandingClass B common stock $0.0001 par value; 7,500,000 shares authorized; no shares issued or outstandingAdditional paid-in capital31,957,76531,420,395Retained earnings10,662,9932,260,135Total stockholders' equity42,621,86733,681,619Total liabilities and stockholders' equity$69,634,042$53,814,491VIRTRA, INC.CONDENSED STATEMENTS OF OPERATIONS(UNAUDITED)For the years endedDecember 31, 2023December 31, 2022Revenues:Net sales$38,043,360$28,302,244Total revenue38,043,36028,302,244Cost of sales11,378,26412,047,366Gross profit26,665,09616,254,878Operating expenses:General and administrative14,235,19411,054,333Research and development2,794,3142,606,840Net operating expense17,029,50813,661,173Income from operations9,635,5882,593,705Other income (expense):Other income888,464194,523Other (expense) income(302,382)(260,688)Net other income (expense)586,082(66,165)Income before provision for income taxes10,221,6702,527,540Provision (Benefit) for income taxes1,818,812571,642Net income$8,402,858$1,955,898Net income per common share:Basic$0.77$0.18Diluted$0.77$0.18Weighted average shares outstanding:Basic10,958,44810,863,680Diluted10,963,47710,873,606VIRTRA, INC.CONDENSED STATEMENTS OF CASH FLOWS(Unaudited)For the Years Ended December 31,20232022Cash flows from operating activities:Net income$8,402,858$1,955,898Adjustments to reconcile net income to net cash (used in) provided by operating activities:Depreciation and amortization928,545887,118Right of use amortization496,127412,335Bad debt expense308,657-Employee stock compensation482,490456,167Changes in operating assets and liabilities:Accounts receivable, net(13,029,917 )893,852Inventory, net(2,812,552)(4,577,404)Deferred taxes(1,391,392)(564,528)Unbilled revenue6,376,374(3,539,544)Prepaid expenses and other current assets(375,752)409,836Other assets174,791(186,727)Operating lease right of use liability(527,690)(416,292)Security deposits, long-term-(15,979)Accounts payable and other accrued expenses3,810,1571,811,646Payments on operating lease liability--Deferred revenue3,839,920(219,729)Net cash provided by (used in) operating activities6,682,616(2,693,351)Cash flows from investing activities:Purchase of intangible assets-(120,016)Purchase of property and equipment(1,128,187)(3,221,182)Net cash (used in) investing activities(1,128,187)(3,341,198)Cash flows from financing activities:Principal payments of debt(243,084)(231,264)Stock issued for options exercised54,90040,845Net cash (used in) financing activities(188,184)(190,419)Net increase (decrease) in cash and restricted cash5,366,245(6,224,968)Cash and restricted cash, beginning of period13,483,59719,708,565Cash and restricted cash, end of period$18,849,842$13,483,597Supplemental disclosure of cash flow information:Cash (refunded) paid:Income taxes paid (refunded)$-$108,777Interest paid$248,653128,507Supplemental disclosure of non-cash investing and financing activities:Addition of new lease and corresponding ROU asset and lease liability$-$294,016Conversion of inventory to property and equipment$-$840,843COMTEX_450189235/2010/2024-04-01T16:05:30 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 01, 2024 (GLOBE NEWSWIRE) -- 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 millionGross profit increased 58% year-over-year to $8.4 million, or 83% of total revenueNet income increased by $1.4 million year-over-year to $2.8 millionAdjusted EBITDA totaled $1.7 millionCash and cash equivalents of $18.9 million at December 31, 2023Full Year 2023 Financial Summary: Total revenue increased 34% to $38.0 millionGross profit increased 64% to $26.7 million, or 70% of total revenueNet income increased by $6.4 million to $8.4 millionAdjusted EBITDA totaled $11.6 millionFourth Quarter and Full Year 2023 Financial Highlights: For the Three Months EndedFor the Twelve Months EndedAll figures in millions, except per share dataDecember 31, 2023December 31, 2022% DDecember 31, 2023December 31, 2022% DTotal Revenue$10.1$8.617%$38.0$28.334%Gross Profit$8.4$5.358%$26.7$16.364%Gross Margin83%61%N/A70%57%N/ANet Income (Loss)$2.8$1.4N/A$8.4$2.0N/ADiluted EPS$0.25$0.13N/A$0.77$0.18N/AAdjusted EBITDA$1.7$1.9N/A$11.6$4.0N/AManagement Commentary "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(R), 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 $1.7 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 $11.1 million from $3.6 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 CallVirTra'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: 1-877-407-9208International number: 1-201-493-6784Conference 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 November 28, 2023. Toll-free replay number: 1-844-512-2921International replay number: 1-412-317-6671Replay 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 EBITDAAdjusted 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: For the Years EndedDecember 31,December 31,Increase%20232022(Decrease)ChangeNet Income$8,402,858$1,955,898$6,446,960330%Adjustments:Provision for income taxes1,818,812571,6421,247,170218%Depreciation and amortization928,545887,11841,4275%Interest (net)(20,440)190,772(211,212)(111)%EBITDA$11,129,775$3,605,430$7,524,345209%Right of use amortization496,127412,33583,79220%Adjusted EBITDA$11,625,902$4,017,765$7,608,137189%Forward-Looking StatementsThe 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 WilsonGateway Group, Inc. VTSI@gateway-grp.com949-574-3860 - Financial Tables to Follow -VIRTRA, INC.CONDENSED BALANCE SHEETSDecember 31,December 31,20232022ASSETSCurrent assets:Cash and cash equivalents$18,849,842$13,483,597Accounts receivable, net15,724,1473,002,887Inventory, net12,404,8809,592,328Unbilled revenue1,109,6167,485,990Prepaid expenses and other current assets906,803531,051Total current assets48,995,28834,095,853Long-term assets:Property and equipment, net15,487,01215,267,133Operating lease right-of-use asset, net716,6871,212,814Intangible assets, net567,540587,777Security deposits, long-term35,69135,691Other assets, long-term201,670376,461Deferred tax asset, net3,630,1542,238,762Total long-term assets20,638,75419,718,638Total assets $69,634,042$53,814,491LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable$2,282,427$1,251,240Accrued compensation and related costs2,221,4161,494,890Accrued expenses and other current liabilities3,970,5591,917,922Note payable, current226,355232,537Operating lease liability, short-term317,840557,683Deferred revenue, short-term6,736,1754,302,492Total current liabilities15,754,7729,756,764Long-term liabilities:Deferred revenue, long-term3,012,2061,605,969Note payable, long-term7,813,0218,050,116Operating lease liability, long-term432,176720,023Total long-term liabilities11,257,40310,376,108Total liabilities27,012,17520,132,872Commitments and contingencies (See Note 11)Stockholders' equity:Preferred stock $0.0001 par value; 2,500,000 authorized; no shares issued or outstandingCommon stock $0.0001 par value; 50,000,000 shares authorized; 11,107,230 shares and 10,900,759 shares issued and outstanding as of December 31, 2023 and 2022, respectively1,1091,089Class A common stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstandingClass B common stock $0.0001 par value; 7,500,000 shares authorized; no shares issued or outstandingAdditional paid-in capital31,957,76531,420,395Retained earnings10,662,9932,260,135Total stockholders' equity42,621,86733,681,619Total liabilities and stockholders' equity$69,634,042$53,814,491VIRTRA, INC.CONDENSED STATEMENTS OF OPERATIONS(UNAUDITED)For the years endedDecember 31, 2023December 31, 2022Revenues:Net sales$38,043,360$28,302,244Total revenue38,043,36028,302,244Cost of sales11,378,26412,047,366Gross profit26,665,09616,254,878Operating expenses:General and administrative14,235,19411,054,333Research and development2,794,3142,606,840Net operating expense17,029,50813,661,173Income from operations9,635,5882,593,705Other income (expense):Other income888,464194,523Other (expense) income(302,382)(260,688)Net other income (expense)586,082(66,165)Income before provision for income taxes10,221,6702,527,540Provision (Benefit) for income taxes1,818,812571,642Net income$8,402,858$1,955,898Net income per common share:Basic$0.77$0.18Diluted$0.77$0.18Weighted average shares outstanding:Basic10,958,44810,863,680Diluted10,963,47710,873,606VIRTRA, INC.CONDENSED STATEMENTS OF CASH FLOWS(Unaudited)For the Years Ended December 31,20232022Cash flows from operating activities:Net income$8,402,858$1,955,898Adjustments to reconcile net income to net cash (used in) provided by operating activities:Depreciation and amortization928,545887,118Right of use amortization496,127412,335Bad debt expense308,657-Employee stock compensation482,490456,167Changes in operating assets and liabilities:Accounts receivable, net(13,029,917 )893,852Inventory, net(2,812,552)(4,577,404)Deferred taxes(1,391,392)(564,528)Unbilled revenue6,376,374(3,539,544)Prepaid expenses and other current assets(375,752)409,836Other assets174,791(186,727)Operating lease right of use liability(527,690)(416,292)Security deposits, long-term-(15,979)Accounts payable and other accrued expenses3,810,1571,811,646Payments on operating lease liability--Deferred revenue3,839,920(219,729)Net cash provided by (used in) operating activities6,682,616(2,693,351)Cash flows from investing activities:Purchase of intangible assets-(120,016)Purchase of property and equipment(1,128,187)(3,221,182)Net cash (used in) investing activities(1,128,187)(3,341,198)Cash flows from financing activities:Principal payments of debt(243,084)(231,264)Stock issued for options exercised54,90040,845Net cash (used in) financing activities(188,184)(190,419)Net increase (decrease) in cash and restricted cash5,366,245(6,224,968)Cash and restricted cash, beginning of period13,483,59719,708,565Cash and restricted cash, end of period$18,849,842$13,483,597Supplemental disclosure of cash flow information:Cash (refunded) paid:Income taxes paid (refunded)$-$108,777Interest paid$248,653128,507Supplemental disclosure of non-cash investing and financing activities:Addition of new lease and corresponding ROU asset and lease liability$-$294,016Conversion of inventory to property and equipment$-$840,843COMTEX_450189235/2010/2024-04-01T16:05:30 |
1.41% $0.23
