VirTra, Inc Q3 FY2024 earnings call

• Sales momentum: Q3 bookings increased to $8.9 million, up 51% from Q2 2024 and 22% from Q3 2023. Expanding international reseller network in Canada, South America, and Europe, and assisting domestic customers in securing federal grants to fund training systems. • V-XR platform: Rollout ongoing, initial deliveries delayed but now accepting orders. Showcased at IACP, generating interest, and applicable to adjacent markets like healthcare and education. • Content development: Added scenarios for high-stress situations like crisis intervention and crowd control, expanding training content library. • Military progress: Steady engagement with US Army and DoD, on track with IVAS program validation. • Board additions: Welcomed retired US Army Lieutenant General Maria R. Gervais and Mike Ayers, enhancing governance with four independent Board members. • Operational improvements: Implemented manufacturing facility and ERP system, invested in automation in machine shop to increase productivity.

In the third quarter, total revenue was $7.5 million, which is up 23% from Q2 2024 and in-line with Q3 2023's $7.6 million. Government revenue decreased to $6.9 million from $7.3 million in the prior year period. International revenue was $0.4 million, an increase from $0.2 million in 2023. Gross margin improved to 73% in Q3 2024 from 71% in Q3 2023. For the first nine months of 2024, total revenue was $21.7 million compared to $27.9 million in the prior year period, with gross margin at 76% compared to 65% in the prior year period. STEP and services made up 30% of total revenue for the nine-month period, which have lower cost of goods associated.

• Confident in continued progress in 2025, focusing on improving marketing and sales functions to grow pipeline. • Expect V-XR platform to be a key growth driver with its adaptability and immersive experience. • Confident in penetrating military channels and converting opportunities as funding becomes available as budget clarity emerges.

• Macro economic factors: Could affect customers' funding. • December budget discussions: Continuing resolution funding federal programs expires on December 20, may cause delay in fund distribution.

Q: No questions were raised during the earnings call A: No questions were posed