VirTra, Inc. (VTSI) Q2 2026 10-Q shows revenue drop, net loss and strong backlog
VirTra, Inc. reported weaker results for the three and six months ended June 30, 2026. Quarterly revenue was $5.76M, down 17% from 2025, and six‑month revenue was $9.24M, down 35%, mainly due to delayed deliveries and customer funding deferrals, particularly among government accounts.
Gross margin compressed from 69% to 59% in the quarter as content and development costs did not fall in line with revenue. The company swung to a Q2 net loss of $261K and a six‑month net loss of $1.59M, versus profits a year earlier, while adjusted EBITDA turned negative year‑to‑date.
VirTra still shows a solid liquidity position with $14.3M in cash and working capital of $28.4M, and it invested in growth by purchasing an Orlando facility financed with a new $4.0M mortgage. Bookings reached $9.3M year‑to‑date and backlog remained high at $24.9M, though slightly below year‑end 2025. The company again disclosed material weaknesses in internal control over financial reporting, with remediation efforts ongoing.
Positive
- Backlog of $24.9M (Capital $13.2M, Service $3.8M, STEP $7.9M) as of June 30, 2026 provides substantial future revenue visibility despite near‑term delivery delays.
- Strong liquidity with $14.31M in cash and cash equivalents and working capital of $28.37M supports operations and recent strategic investments.
- Completion of the $5.0M Orlando property acquisition, funded partly by a new $4.0M mortgage, expands owned facilities and removes related lease liabilities from the balance sheet.
- Net other result improved from a $748K expense to $15K income in Q2 year over year, largely due to reduced FX losses and higher interest income.
Negative
- Revenue declined 17% in Q2 2026 and 35% for the first half, driven by delayed deliveries and continued dependence on government‑funded customers.
- Gross margin deteriorated from 69% to 59% in Q2 and from 71% to 60% year‑to‑date as fixed and development costs weighed on profitability.
- Results shifted from profit to loss: Q2 net loss $261K and six‑month net loss $1.59M versus positive net income in 2025.
- Adjusted EBITDA fell sharply to $383K in Q2 (down 45%) and to a loss of $400K year‑to‑date, versus strong positive levels a year earlier.
- The company continues to report material weaknesses in internal control over financial reporting, with disclosure controls and procedures deemed not effective.
- Backlog slipped from $25.6M to $24.9M since year‑end 2025, while revenue fell more steeply, highlighting execution and timing risks.
Filing Explained
The quarter adds a $4.0 million property-backed mortgage and 15,739 shares issued for RSU payments, changing debt and ownership mechanics.
The Form 10-Q records the Orlando property purchase as completed and reports
On
The purchase removed the property's operating lease asset and liabilities from the balance sheet; the filing reports no future minimum lease payments as of
During the quarter,
Issuing additional shares increases the total share count and reduces an existing holder's percentage ownership, absent offsetting changes.
The company also reports paying
The mortgage's balloon payment and variable-rate terms are the specific debt items to track through the stated maturity date.
Key Figures
Key Terms
STEP financial
deferred revenue financial
material weaknesses regulatory
Adjusted EBITDA financial
backlog financial
right-of-use asset financial
Earnings Snapshot
FAQ
How did VirTra (VTSI) perform financially in Q2 2026?
What is VirTra (VTSI)’s cash position and liquidity as of June 30, 2026?
How large is VirTra (VTSI)’s backlog and what does it include?
What major changes affected VirTra (VTSI)’s profitability in the first half of 2026?
Does VirTra (VTSI) have any material weaknesses in internal controls?
What is VirTra (VTSI)’s STEP program and how much revenue does it generate?
What new debt did VirTra (VTSI) incur for the Orlando property purchase?
AI-generated analysis. How Rhea-AI works. Not financial advice.
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from _____________ to ______________
Commission file number:
VIRTRA, INC.
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of |
| (I.R.S. Employer |
incorporation or organization) |
| Identification No.) |
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(Address of principal executive offices) |
| (Zip Code) |
Registrant’s telephone number, including area code: (
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
| Trading Symbol(s) |
| Name of each exchange on which registered |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Table of Contents
Indicate by check mark whether the registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large, accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large, accelerated filer | ☐ | Accelerated filer | ☐ |
☐ | Smaller reporting company | ||
|
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes
As of August 4th, 2026, the registrant had
Table of Contents
TABLE OF CONTENTS
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PART I |
FINANCIAL INFORMATION |
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Item 1. |
Financial Statements (Unaudited) |
F-1 |
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Condensed Balance Sheets as of June 30, 2026, and December 31, 2025 |
F-1 |
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Condensed Statements of Operations for the Three and Six Months ended June 30, 2026 and 2025 |
F-2 |
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Condensed Statements of Changes in Stockholders’ Equity for the Three and Six Months Ended June 30, 2026 and 2025 |
F-3 |
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Condensed Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025 |
F-4 |
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Notes to the Unaudited Financial Statements |
F-5 |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
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Item 4. |
Controls and Procedures |
10 |
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PART II |
OTHER INFORMATION |
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Item 1. |
Legal Proceedings |
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Item 1A. |
Risk Factors |
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Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
11 |
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Item 3. |
Defaults Upon Senior Securities |
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Item 4. |
Mine Safety Disclosures |
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Item 5. |
Other Information |
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Item 6. |
Exhibits |
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SIGNATURES |
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3
Table of Contents
PART I: FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
VIRTRA, INC.
CONDENSED BALANCE SHEETS
(Unaudited)
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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Accounts receivable, net |
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Inventory, net |
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Unbilled revenue |
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Prepaid expenses and other current assets |
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Deferred Contract Costs, short term |
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Total current assets |
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Long-term assets: |
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Property and equipment, net |
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Operating lease right-of-use asset, net |
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Intangible assets, net |
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Security deposits, long-term |
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Other assets, long-term |
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Deferred tax asset, net |
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Deferred Contract Costs, long term |
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Total long-term assets |
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Total assets |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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Accrued compensation and related costs |
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Accrued expenses and other current liabilities |
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Notes payable, current |
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Operating lease liability, short-term |
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Deferred revenue, short-term |
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Total current liabilities |
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Long-term liabilities: |
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Deferred revenue, long-term |
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Notes payable, long-term |
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Operating lease liability, long-term |
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Total long-term liabilities |
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Total liabilities |
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Commitments and contingencies (See Note 10) |
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Stockholders’ equity: |
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Preferred stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding |
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Common stock $0.0001 par value; 50,000,000 shares authorized; 11,319,624 shares issued and outstanding as of June 30, 2026 and 11,303,885 as of December 31, 2025 |
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Class A common stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding |
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Class B common stock $0.0001 par value; 7,500,000 shares authorized; no shares issued or outstanding |
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Additional paid-in capital |
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Retained Earnings |
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
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See accompanying notes to condensed unaudited financial statements.
F-1
Table of Contents
VIRTRA, INC.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenues: |
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Net sales |
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$ |
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$ |
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$ |
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Total revenue |
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Cost of sales |
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Gross profit |
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Operating expenses: |
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General and administrative |
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Research and development |
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Net operating expense |
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Income (loss) from operations |
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Other income (expense): |
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Other income |
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Other (expense) |
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Net other income |
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Income (Loss) before provision for income taxes |
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Provision (Benefit) for income taxes |
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Net Income (loss) |
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$ |
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Net Income (loss) per common share: |
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Basic |
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Diluted |
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Weighted average shares outstanding: |
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Basic |
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Diluted |
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See accompanying notes to condensed unaudited financial statements.
F-2
Table of Contents
VIRTRA, INC.
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)
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Additional |
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Preferred Stock |
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Common Stock |
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Paid in |
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Accumulated |
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Shares |
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Amount |
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Shares |
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Amount |
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Capital |
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Earnings |
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Total |
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Six months ending June 30, 2026 |
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Balance, December 31, 2025 |
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- |
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$ |
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$ |
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$ |
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$ |
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$ |
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Stock reserved for future services |
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- |
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- |
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RSUs issued (stock for services) |
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- |
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- |
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Net income |
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- |
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- |
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( |
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( |
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Balance, March 31, 2026 |
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- |
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$ |
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$ |
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$ |
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$ |
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$ |
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Stock options exercised |
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- |
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- |
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Stock reserved for future services |
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- |
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- |
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RSUs issued (stock for services) |
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- |
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15,739 |
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Net income |
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- |
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( |
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Balance, June 30, 2026 |
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- |
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$ |
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$ |
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$ |
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$ |
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$ |
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Six months ending June 30, 2025 |
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Balance, December 31, 2024 |
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- |
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$ |
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$ |
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$ |
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$ |
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$ |
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Stock options exercised |
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- |
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Stock reserved for future services |
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- |
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- |
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RSUs issued (stock for services) |
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- |
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4,500 |
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Net income |
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- |
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|
|
|
|
|
|
|
|
|
|
|
Balance, March 31, 2025 |
|
|
- |
|
|
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options exercised |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stock reserved for future services |
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
RSUs issued (stock for services) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income |
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance, June 30, 2025 |
|
|
- |
|
|
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
See accompanying notes to condensed unaudited financial statements.
F-3
Table of Contents
VIRTRA, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
Six Months Ended June 30, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net (loss) |
|
$ | ( |
) |
|
$ |
|
|
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
||
Right of use amortization |
|
|
|
|
|
|
||
Employee stock compensation |
|
|
|
|
|
|
||
Bad Debt Expense |
|
|
( |
) |
|
|
|
|
Loss on disposal of lease |
|
|
|
|
|
|
||
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
|
|
|
|
||
Inventory, net |
|
|
( |
) |
|
|
|
|
Other assets-LT |
|
|
|
|
|
|
||
Deferred taxes |
|
|
|
|
|
|
||
Unbilled revenue |
|
|
( |
) |
|
|
|
|
Other assets |
|
|
|
|
|
|
||
Prepaid expenses and other current assets |
|
|
|
|
|
( |
) |
|
Accounts payable and other accrued expenses |
|
|
|
|
|
( |
) |
|
Operating lease right of use |
|
|
( |
) |
|
|
( |
) |
Deferred revenue |
|
|
( |
) |
|
|
|
|
Net cash provided (used in) by operating activities |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Internal intangible assets |
|
|
( |
) |
|
|
( |
) |
Purchase of property and equipment |
|
|
( |
) |
|
|
( |
) |
Net cash (used in) investing activities |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Principal payments of debt |
|
|
( |
) |
|
|
( |
) |
Net cash (used in) financing activities |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
Net (decrease) in cash |
|
|
( |
) |
|
|
|
|
Cash and restricted cash, beginning of period |
|
|
|
|
|
|
||
Cash and restricted cash, end of period |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
|
|
Income taxes paid (refunded) |
|
$ | ( |
) |
|
$ |
|
|
Interest paid |
|
$ |
|
|
$ |
|
||
Noncash investing & financing activities disclosure: |
|
|
|
|
|
|
|
|
Assumption of lease asset (Lessor) |
|
$ |
|
|
$ |
|
||
Mortgage to Purchase Building |
|
$ | ( |
) |
|
$ |
|
|
See accompanying notes to condensed unaudited financial statements.
F-4
Table of Contents
VIRTRA, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 1. Organization and Significant Accounting Policies
Organization and Business Operations
VirTra, Inc. (the “Company,” “VirTra,” “we,” “us” or “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, 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. The Company sells its products worldwide through a direct sales force and international distribution partners. The original business started in 1993 as Ferris Productions, Inc. In September 2001, Ferris Productions, Inc. merged with GameCom, Inc. to ultimately become VirTra, Inc., a Nevada corporation.
Basis of Presentation
The unaudited financial statements included herein have been prepared by us without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our audited financial statements for the year ended December 31, 2025 included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the SEC on March 26, 2026. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by the SEC, although we believe the disclosures that are made are adequate to make the information presented herein not misleading.
The accompanying unaudited financial statements reflect, in our opinion, all normal recurring adjustments necessary to present fairly our financial position on June 30, 2026, and the results of our operations and cash flows for the periods presented. We derived the December 31, 2025 balance sheet data from audited financial statements; however, we did not include all disclosures required by GAAP.
Interim results are subject to seasonal variations, and the results of operations for the three and six months ended June 30, 2026, are not necessarily indicative of the results to be expected for the full year.
F-5
Table of Contents
VIRTRA, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Revision of Previously Issued Financial Statements
In the prior year, the Company identified an immaterial error in the 2023 financial statements related to the functional currency designation of a Canadian sales transaction, which resulted in a $
After giving effect to this correction and other prior-year revisions, the only permanent impact to retained earnings is the $
| | For the Year Ending December 31, 2024 (Restated) | | |||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | Additional | | | | | | | | | | |
| | Preferred Stock | | | Common Stock | | | Paid in | | | Accumulated | | | | | | ||||||||||||
| | Shares | | | Amount | | | Shares | | | Amount | | | Capital | | | Earnings | | | Total | | |||||||
Balance, December 31, 2023 | | | - | | | $ | | | | | | $ | | | $ | | | $ | | | $ | | ||||||
Stock options exercised | | | - | | | | | | | | | | | | | | | | | | | | ||||||
Stock reserved for future services | | | - | | | | | | | - | | | | | | | | | | | | | | |||||
Net income | | | - | | | | | | | - | | | | | | | | | | | | | | |||||
Balance, March 31, 2024 | | | - | | | | | | | | | | | | | | | | | | | | ||||||
Stock options exercised | | | - | | | | | | | | | | | | | | | | | | | | ||||||
Stock reserved for future services | | | - | | | | | | | - | | | | | | | | | | | | | | |||||
Net income | | | - | | | | | | | - | | | | | | | | | | | | | | |||||
Balance, June 30, 2024 | | | - | | | | | | | | | | | | | | | | | | | | ||||||
RSUs issued (stock for services) | | | - | | | | | | | | | | | | | | | | | | | | ||||||
Stock reserved for future services | | | - | | | | | | | - | | | | | | | | | | | | | | |||||
Net income | | | - | | | | | | | - | | | | | | | | | | | | | | |||||
Balance, September 30, 2024 | | | - | | | | | | | | | | | | | | | | | | | | ||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RSUs issued (stock for services) | | | - | | | | | | | | | | | | | | | | | | | | ||||||
Stock reserved for future services | | | - | | | | | | | - | | | | | | | | | | | | | | |||||
Net income | | | - | | | | | | | - | | | | | | | | | | ( | ) | | | ( | ) | |||
Balance, December 31, 2024 | | | - | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | ||||||
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Significant accounting estimates in these financial statements include valuation assumptions for share-based payments, allowance for credit losses and notes receivable, inventory reserves, accrual for warranty reserves, the carrying value of long-lived assets and intangible assets, income tax valuation allowances, the carrying value of cost basis investments, and the allocation of the transaction price to the performance obligations in our contracts with customers.
F-6
Table of Contents
VIRTRA, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Revenue Recognition
The Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customer (Topic 606) (“ASC 606”) on January 1, 2018, and the Company elected to use the modified retrospective transition method which requires application of ASC 606 to uncompleted contracts at the date of adoption. The adoption of ASC 606 did not have a material impact on the financial statements.
Under ASC 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant judgment is necessary when making these determinations.
The Company’s primary sources of revenue are derived from simulator and accessories sales, training and installation, the sale of customizable software, the sale of customized content scenarios, and the sale of extended service-type warranties. Sales discounts are presented in the financial statements as reductions in determining net revenues. Credit sales are recorded as current assets (accounts receivable and unbilled revenue). Prepaid deposits received at the time of sale and extended warranties purchased are recorded as current and long-term liabilities (deferred revenue) until earned. The following briefly summarizes the nature of our performance obligations and method of revenue recognition:
Performance Obligation |
| Method of Recognition |
|
|
|
Simulator and accessories |
| Upon transfer of control |
|
|
|
STEP Program |
| Deferred and recognized over the life of the contract |
|
|
|
Installation and training |
| Upon completion or over the period of services being rendered |
|
|
|
Extended service-type warranty |
| Deferred and recognized over the life of the extended warranty |
|
|
|
Customized software and content |
| Upon transfer of control or over the period services are performed depending on the terms of the contract |
|
|
|
Customized content scenario |
| As performance obligation is transferred over time (input method using time and materials expended) |
|
|
|
Design and prototyping |
| Recognized at the completion of each agreed upon milestone |
|
|
|
Sales-based royalty exchanged for license of intellectual property |
| Recognized as the performance obligation is satisfied over time – which is as the sales occur |
F-7
Table of Contents
VIRTRA, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
The Company recognizes revenue upon transfer of control or upon completion of the services for the simulator and accessories; for the installation and training and customized software performance obligations as the customer has the right and ability to direct the use of these products and services and the customer obtains substantially all of the remaining benefit from these products and services at that time. Revenue from certain customized content contracts may be recognized over the period the services are performed based on the terms of the contract. For the sales-based royalty exchanged for license of intellectual property, the Company recognized revenue as the sales occur over time.
The Company recognizes revenue on a straight-line basis over the period of services being rendered for the extended service-type warranties as these warranties represent a performance obligation to “stand ready to perform” over the duration of the warranties. As such, the warranty service is performed continuously over the warranty period.
Each contract states the transaction price. The contracts do not include variable consideration, significant financing components or non-cash consideration. The Company has elected to exclude sales and similar taxes from the measurement of the transaction price. The contract’s transaction price is allocated to the performance obligations based upon their stand-alone selling prices. Discounts on the stand-alone selling prices, if any, are allocated proportionately to each performance obligation.
F-8
Table of Contents
VIRTRA, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Disaggregation of Revenue
Under ASC 606, disaggregated revenue from contracts with customers depicts the nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors. The Company has evaluated revenues recognized and the following table illustrates the disaggregation disclosure by customer’s location and performance obligation.
|
| Three Months Ended June 30, |
| |||||||||||||||||||||||||||||
|
| 2026 |
|
| 2025 |
| ||||||||||||||||||||||||||
|
| Commercial |
|
| Government |
|
| International |
|
| Total |
|
| Commercial |
|
| Government |
|
| International |
|
| Total |
| ||||||||
Simulators and accessories |
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
| ||||||||
Extended Service-type warranties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Customized software and content |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Installation and training |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Design & Prototyping |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
STEP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total Revenue |
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
| ||||||||
|
| Six Months Ended June 30, |
| |||||||||||||||||||||||||||||
|
| 2026 |
|
| 2025 |
| ||||||||||||||||||||||||||
|
| Commercial |
|
| Government |
|
| International |
|
| Total |
|
| Commercial |
|
| Government |
|
| International |
|
| Total |
| ||||||||
Simulators and accessories |
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
| ||||||||
Extended Service-type warranties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Customized software and content |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Installation and training |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Design & Prototyping |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
STEP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total Revenue |
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
|
| $ |
| ||||||||
Commercial customers include selling through prime contractors for military or law enforcement contracts, domestically. Government customers are defined as directly selling to government agencies. For the three months ended June 30, 2026, governmental customers comprised $
F-9
Table of Contents
VIRTRA, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Segment Information
Information related to the Company’s reportable operating business segments is shown below. The Company’s reportable segments are reported in a manner consistent with the way management evaluates the businesses. The results of operations are regularly reviewed by the Company’s chief operating decision maker (“CODM”), the Chief Executive Officer. The Company identifies its reportable business segments based on differences in products and services. The accounting policies of the business segments are the same as those described in the summary of significant accounting policies. To evaluate each reportable segment’s performance, the CODM uses income from operations as a measure of profit and loss. The CODM compares operational performance against management expectations when making decisions regarding allocation of operating and capital resources to each segment.
The Company has identified the following business segments
| ● | Simulators and Accessories- These include all variations of the VirTra simulator, Simulated recoil kits, Return first devices, Taser©, OC Spray, low light devices and refill options. |
| ● | Extended Service-type warranties – Warranties on all products past 1 or more years |
| ● | Customized software and Custom content- Contracts with specific suppliers who have asked for content related directly to their situations that we design and film or specific software request for their system only |
| ● | Installation and Training – Installation of our simulators at the specific sites as well as extra training classes preformed onsite, virtually or at the VirTra Training Center |
| ● | Design and Prototyping – Specific contracts related to hardware development for specific customers |
| ● | Subscription Training Equipment Partnership (STEP)™ is a program that allows agencies to utilize VirTra’s simulator products, accessories, and V-VICTA interactive coursework on a subscription basis. |
F-10
Table of Contents
VIRTRA, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
|
| Three Months Ended June 30, |
| |||||
Sale of product |
| 2026 |
|
| 2025 |
| ||
Simulators and accessories |
| $ |
|
| $ |
| ||
Extended Service-type warranties |
|
|
|
|
|
| ||
Customized software and content |
|
|
|
|
|
| ||
Installation and training |
|
|
|
|
|
| ||
Design & Prototyping |
|
|
|
|
|
| ||
STEP |
|
|
|
|
|
| ||
Total consolidated |
| $ |
|
| $ |
| ||
Depreciation and amortization |
| 2026 |
|
| 2025 |
| ||
Simulators and accessories |
| $ |
|
| $ |
| ||
Customized software and content |
|
|
|
|
|
| ||
Design & Prototyping |
|
|
|
|
|
| ||
STEP |
|
|
|
|
|
| ||
Corporate |
|
|
|
|
|
| ||
Total consolidated |
| $ |
|
| $ |
| ||
Segment income (loss) | | 2026 | | | 2025 | | ||
Simulators and accessories | | $ | | | $ | | ||
Extended Service-type warranties | | | | | | | ||
Customized software and content | | | | | | | ||
Installation and training | | | ( | ) | | | | |
Design & Prototyping | | | | | | | ||
STEP | | | | | | | ||
Corporate | | | ( | ) | | | ( | ) |
Total | | $ | ( | ) | | $ | | |
Expenditures for segment assets |
| 2026 |
|
| 2025 |
| ||
Simulators and accessories |
| $ |
|
| $ |
| ||
Extended Service-type warranties |
|
|
|
|
|
| ||
Customized software and content |
|
|
|
|
|
| ||
Installation and training |
|
|
|
|
|
| ||
Design & Prototyping |
|
|
|
|
|
| ||
STEP |
|
|
|
|
|
| ||
Corporate purchases |
|
|
|
|
|
| ||
|
| $ |
|
| $ |
| ||
Segment assets |
| 2026 |
|
| 2025 |
| ||
Simulators and accessories |
| $ |
|
| $ |
| ||
Customized software and content |
|
|
|
|
|
| ||
Design & Prototyping |
|
|
|
|
|
| ||
STEP |
|
|
|
|
|
| ||
Corporate Assets |
|
|
|
|
|
| ||
|
| $ |
|
| $ |
| ||
F-11
Table of Contents
VIRTRA, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
|
| Six Months Ended June 30, |
| |||||
Sale of product |
| 2026 |
|
| 2025 |
| ||
Simulators and accessories |
| $ |
|
| $ |
| ||
Extended Service-type warranties |
|
|
|
|
|
| ||
Customized software and content |
|
|
|
|
|
| ||
Installation and training |
|
|
|
|
|
| ||
Design & Prototyping |
|
|
|
|
|
| ||
STEP |
|
|
|
|
|
| ||
Total consolidated |
| $ |
|
| $ |
| ||
Depreciation and amortization |
| 2026 |
|
| 2025 |
| ||
Simulators and accessories |
| $ |
|
| $ |
| ||
Customized software and content |
|
|
|
|
|
| ||
Design & Prototyping |
|
|
|
|
|
| ||
STEP |
|
|
|
|
|
| ||
Corporate |
|
|
|
|
|
| ||
Total consolidated |
| $ |
|
| $ |
| ||
Segment income (loss) |
| 2026 |
|
| 2025 |
| ||
Simulators and accessories |
| $ |
|
| $ |
| ||
Extended Service-type warranties |
|
|
|
|
|
| ||
Customized software and content |
|
|
|
|
|
| ||
Installation and training |
|
|
|
|
|
| ||
Design & Prototyping |
|
|
|
|
|
| ||
STEP |
|
|
|
|
|
| ||
Corporate |
|
| ( | ) |
|
| ( | ) |
Total |
| $ | ( | ) |
| $ |
| |
Expenditures for segment assets |
| 2026 |
|
| 2025 |
| ||
Simulators and accessories |
| $ |
|
| $ |
| ||
Customized software and content |
|
|
|
|
|
| ||
STEP |
|
|
|
|
|
| ||
Corporate purchases |
|
|
|
|
|
| ||
|
| $ |
|
| $ |
| ||
Segment assets |
| 2026 |
|
| 2025 |
| ||
Simulators and accessories |
| $ |
|
| $ |
| ||
Customized software and content |
|
|
|
|
|
| ||
Design & Prototyping |
|
|
|
|
|
| ||
STEP |
|
|
|
|
|
| ||
Corporate Assets |
|
|
|
|
|
| ||
| ||||||||
| $ |
|
| $ |
|
F-12
Table of Contents
VIRTRA, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Customer Deposits
Customer deposits consist of prepaid deposits received for equipment purchase orders and for Subscription Training Equipment Partnership (“STEP”) operating agreements that expire annually. Customer deposits are considered a deferred liability until the completion of the customer’s contract performance obligation. When revenue is recognized, the deposit is applied to the customer’s receivable balance. Customer deposits are recorded as a current liability, and for the items that will be delivered or converted into revenue later than one year, deposits are recorded to a long-term liability under deferred revenue on the balance sheet. As of June 30, 2026, there was $
Warranty
The Company warranties its products from manufacturing defects on a limited basis for a period of one year after purchase but also sells separately priced extended service-type warranties for periods of up to four years after the expiration of the standard one-year warranty. During the term of the initial one-year warranty, if the device fails to operate properly from defects in materials and workmanship, the Company will fix or replace the defective product. Deferred revenue for separately priced extended warranties one year or less totaled $
STEP Revenue
The Company’s STEP operations consist principally of leasing its simulator products under operating agreements expiring in one year. At the commencement of a STEP agreement, any lease payments received are deferred and no income is recognized. Subsequently, payments are amortized and recognized as revenue on a straight-line basis over the term of the agreement. The agreements are generally for a period of 12 months and can be renewed for an additional 12-month period up to two additional 12-month periods maximum of 36 months for the entire agreement. This is a change from prior years which allowed for renewals up to 48 months for a total of 60 months. Agreements may be terminated by either party upon written notice of termination at least sixty days prior to the end of the 12-month period. The payments are generally fixed for the first year of the agreement, with increases in payments in subsequent years to be mutually agreed upon. The agreements do not include variable lease payments or free rent periods. In addition, the agreements do not provide for the underlying assets to be purchased at their fair market values at interim periods or at maturity, the assets are owned by VirTra and are required to be returned upon lease termination. Each STEP agreement comes with full customer support and stand-ready advance replacement parts to maintain each system for the duration of the lease. The amount that the Company expects to derive from the STEP equipment following the end of the agreement term is dependent upon the number of agreement terms renewed. The agreements do not include a residual value guarantee.
Concentration of Credit Risk and Major Customers and Suppliers
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, certificates of deposit, and accounts receivable.
The Company’s cash, cash equivalents and certificates of deposit are maintained with financial institutions with high credit standings and are FDIC insured deposits. The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. The standard deposit insurance coverage limit is $
F-13
Table of Contents
VIRTRA, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Sales are typically made on credit, and the Company generally does not require collateral. Management performs ongoing credit evaluations of its customers’ financial condition and maintains an allowance for estimated losses. Historically, the Company has experienced minimal charges relative to doubtful accounts.
As of June 30, 2026, the Company had two customers that accounted for
For the three months ended June 30, 2026, the Company had one customer accounting for
Net Income per Common Share
The net income per common share is computed by dividing net income by the weighted average of common shares outstanding. Diluted net income per share reflects the potential dilution, using the treasury stock method, that would occur if outstanding stock options and warrants were exercised. Earnings per share computations are as follows:
| | Three Months Ended June 30, | | |||||
| | 2026 | | | 2025 | | ||
Net Income (Loss) | | $ | ( | ) | | $ | | |
Weighted average common stock outstanding | | | | | | | ||
Incremental shares from stock options | | | | | | | ||
Weighted average common stock outstanding, diluted | | | | | | | ||
| | | | | | | | |
Net Income (Loss) per common share and common equivalent share | | | | | | | | |
Basic | | $ | ( | ) | | $ | | |
Diluted | | $ | ( | ) | | $ | | |
|
| Six Months Ended June 30, |
| |||||
|
| 2026 |
|
| 2025 |
| ||
Net Income (Loss) |
| $ | ( | ) |
| $ |
| |
Weighted average common stock outstanding |
|
|
|
|
|
| ||
Incremental shares from stock options |
|
|
|
|
|
| ||
Weighted average common stock outstanding, diluted |
|
|
|
|
|
| ||
|
|
|
| |
|
|
| |
Net Income (Loss) per common share and common equivalent share |
|
|
| |
|
|
| |
Basic |
| $ | ( | ) |
| $ |
| |
Diluted |
| $ | ( | ) |
| $ |
| |
Note 2. Inventory
Inventory consisted of the following as of:
| | June 30, 2026 | | | December 31, 2025 | | ||
| | | | | | | | |
Raw materials, WIP, finished goods and Materials being inspected | | $ | | | $ | | ||
Reserve | | | ( | ) | | | ( | ) |
| | | | | | | | |
Total Inventory | | $ | | | $ | | ||
The Company regularly evaluates the useful life of its spare parts inventory but did not have any cause to reclassify any this quarter.
F-14
Table of Contents
VIRTRA, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 3. Deferred Contract Costs
Deferred contract costs consisted of the following as of:
|
| June 30, 2026 |
|
| December 31, 2025 |
| ||
Deferred Contract Costs - Short-Term |
| $ |
|
| $ |
| ||
Deferred Contract Costs - Long-Term Adjustment |
|
|
|
|
|
| ||
Expense as of June 30, 2026 |
|
| ( | ) |
|
| ( | ) |
Total Short-Term Contract |
| $ |
|
| $ |
| ||
|
|
|
| |
|
|
| |
Deferred Contract Costs - Long-Term |
| $ |
|
| $ |
| ||
Deferred Contract Costs - Short-Term Adjustment |
|
| ( | ) |
|
| ( | ) |
Expense as of June 30, 2026 |
|
|
|
|
| ( | ) | |
Total Long-Term Contract |
| $ |
|
| $ |
| ||
|
|
|
| |
|
|
| |
Total Deferred Contract Costs |
| $ |
|
| $ |
| ||
During the year ended December 31, 2025, the Company entered into a customer agreement that includes development services and a three-year step-priced arrangement. The consideration under the agreement is structured to recover development and other fulfillment costs over the full contract term. In accordance with ASC 340-40, the Company capitalized costs incurred that (i) relate directly to the contract, (ii) generate or enhance resources that will be used in satisfying performance obligations in future periods, and (iii) are expected to be recovered through the transaction price. Capitalized costs primarily include internal and third-party development labor and materials.
Deferred contract costs are amortized on a systematic basis consistent with the pattern of transfer of the related services, which the Company currently estimates to be over the three-year contractual term. The Company evaluates deferred contract costs for impairment each reporting period.
At June 30, 2026 and 2025, deferred contract costs totaled $
Note 4. Property and Equipment
Property and equipment consisted of the following as of:
| | June 30, 2026 | | | December 31, 2025 | | ||
Land | | $ | | | $ | | ||
Building & Building Improvements | | | | | | | ||
Computer equipment | | | | | | | ||
Furniture and office equipment | | | | | | | ||
Machinery and equipment | | | | | | | ||
STEP equipment | | | | | | | ||
Leasehold improvements | | | | | | | ||
Construction in Progress | | | | | | | ||
Total property and equipment | | | | | | | ||
Less: Accumulated depreciation | | | ( | ) | | | ( | ) |
Property and equipment, net | | $ | | | $ | | ||
F-15
Table of Contents
VIRTRA, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Depreciation expenses, including STEP depreciation, were $
Note 5. Intangible Assets
Intangible asset consisted of the following as of:
| | June 30, 2026 | | | December 31, 2025 | | ||
Patents | | $ | | | $ | | ||
Capitalized media content | | | | | | | ||
Capitalized software | | | | | | | ||
Acquired lease intangible assets | | | | | | | ||
| | | | | | | | |
Total intangible assets | | | | | | | ||
Less accumulated amortization | | | ( | ) | | | ( | ) |
| | | | | | | | |
Intangible assets, net | | $ | | | $ | | ||
In connection with the acquisition of the Orlando property, VirTra assumed two existing long-term lease agreements for the second building. The acquisition resulted in the recognition of lease-related intangible assets totaling $
Note 6. Leases
On June 1, 2022, we entered into a new lease of approximately
The Company’s lease agreements do not contain any residual value guarantees, restrictive covenants, or variable lease payments. The Company has not entered into any financing leases.
In addition to base rent, the Company’s lease generally provides for additional payments for other charges, such as rental tax. The lease includes fixed rent escalations. The Company’s lease does not include an option to renew.
The Company determines if an arrangement is a lease at inception. Operating leases are recorded in operating lease right of use assets, net, operating lease liability – short-term, and operating lease liability – long-term on its balance sheets.
Operating lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s lease does not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate used at adoption was
F-16
Table of Contents
VIRTRA, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Effective June 1, 2022, the Company obtained a right-of-use asset in exchange for a new operating lease liability in the amount of $
VirTra completed the purchase of the Orlando property on May 22, 2026. As a result, the related right-of-use (ROU) asset and lease liability associated with the property were derecognized and removed from the balance sheet. Accordingly, these lease-related balances have been fully written off and no longer appear in the Company's financial position as of the purchase date. As on June 30, 2026 the company wrote off the
The balance sheet classification of lease assets and liabilities as of June 30, 2026 are as follows:
Balance Sheet Classification |
| June 30, 2026 |
|
| December 31, 2025 |
| ||
Assets |
|
|
| |
|
|
| |
Operating lease right-of-use assets, December 31, 2025 |
| $ |
|
| $ |
| ||
Amortization for the six months ended June 30, 2026 |
|
| ( | ) |
|
| ( | ) |
Write off of right-of-use asset |
|
| ( | ) |
|
|
| |
|
|
|
| |
|
|
| |
Total operating lease right-of-use asset, June 30, 2026 |
| $ |
|
| $ |
| ||
Liabilities |
|
|
| |
|
|
| |
Current |
|
|
| |
|
|
| |
Operating lease liability, short-term |
| $ |
|
| $ |
| ||
Non-current |
|
|
| |
|
|
| |
Operating lease liability, long-term |
|
|
|
|
|
| ||
|
|
|
| |
|
|
| |
Total lease liabilities |
| $ |
|
| $ |
| ||
There are no future minimum lease payments as of June 30, 2026
Rent expenses for the six months ended June 30, 2026 and 2025 were $
Note 7. Accrued Expenses
Accrued compensation and related costs consist of the following as of:
|
| June 30, 2026 |
|
| December 31, 2025 |
| ||
Salaries and wages payable |
| $ |
|
| $ |
| ||
Employee benefits payable |
|
|
|
|
|
| ||
Accrued paid time off (PTO) |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
Total accrued compensation and related costs |
| $ |
|
| $ |
| ||
Salaries and Wages payable is up significantly from December due to the timing of payroll dates and the number of days accrued at the end of the second quarter versus the days accrued at the end of the year.
Accrued expenses and other current liabilities consisted of the following as of:
|
| June 30, 2026 |
|
| December 31, 2025 |
| ||
Manufacturer’s warranties |
| $ |
|
| $ |
| ||
Taxes payable |
|
|
|
|
|
| ||
Miscellaneous payable |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
Total accrued expenses and other current liabilities |
| $ |
|
| $ |
| ||
F-17
Table of Contents
VIRTRA, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 8. Notes Payable
On May 22, 2026, the Company completed the purchase of real property located in Orlando, Florida (the “Orlando Property”) for $
On August 25, 2021, the Company completed the purchase of real property located in Chandler, Arizona (the “Chandler Property”) for $
Notes payable amounts consist of the following:
|
| June 30, 2026 |
|
| December 31, 2025 |
| ||
|
|
|
|
|
|
|
|
|
Short-term liabilities |
|
|
|
|
|
|
|
|
Notes payable, principal |
| $ |
|
| $ |
| ||
Accrued interest to date |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
Notes Payable, short-term |
| $ |
|
| $ |
| ||
|
|
|
|
|
|
|
|
|
Long-term liabilities |
|
|
|
|
|
|
|
|
Notes payable, principal |
| $ |
|
| $ |
| ||
|
|
|
|
|
|
|
|
|
Notes payable, long term |
| $ |
|
| $ |
| ||
Note 9. Related Party Transactions
In the first two quarters of 2026, the Company paid Vialytix, LLC, a company owned by the CEO (John Givens) and his wife, $
In the fourth quarter of 2025, the Company paid Vialytix, LLC $
F-18
Table of Contents
VIRTRA, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 10. Commitments and Contingencies
Litigation
There is no pending litigation at this time.
Restricted Stock Unit Grants
There were awards of
Profit Sharing
VirTra provides a discretionary profit-sharing program that pays out a percentage of Company profits each year as a cash bonus to eligible employees. The cash payment is typically split into two equal payments and distributed pro-rata in April and October of the following year to only active employees. For the six months ended June 30, 2026 and 2025, $
Note 11. Stockholders’ Equity
Common stock activity
There were
Note 12. Subsequent Events
None
F-19
Table of Contents
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and related notes included in this Quarterly Report on Form 10-Q and the audited financial statements and notes thereto as of and for the year ended December 31, 2025 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on March 26, 2026.
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, (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 statements in this Quarterly Report on Form 10-Q 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 numerous 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 this Quarterly Report on Form 10-Q. You should carefully consider these risk 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 people acting on our behalf are expressly qualified in their entirety by this cautionary statement.
Business Overview
VirTra, Inc. (the “Company,” “VirTra,” “we,” “us” and “our”) 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.
The VirTra firearms training simulator allows marksmanship and realistic scenario-based training to take place daily 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 can 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.
4
Table of Contents
Business Strategy
We have two main customer groups, namely, law enforcement and military. These are very 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 highly effective simulators and critical in-house integration components. We focus on delivering integrated solutions that enhance performance, reliability, and scalability for our customers. Through disciplined execution, we have strengthened our financial position by increasing working capital and limiting bank debt. We plan to selectively expand our management and technical teams as needed to support anticipated demand and increased marketing and sales activities |
|
|
|
|
● |
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. |
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|
● |
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 continue incremental improvements to existing product lines. In certain cases, the Company may enter new market segments through the introduction of new types of products or services. We also intend to leverage advancements in artificial intelligence and large language models to enhance realism, improve user interaction and client relatability, and reduce development time and costs across our product portfolio. |
|
|
|
|
● |
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 stockholders. |
Product Offerings
Our simulator products include the following:
|
● |
V-300™ Simulator – a 300° wrap-around screen with video capability is the higher standard for simulation training |
|
○ |
The V-300™ is the higher standard for decision-making simulation and tactical firearms training. Five screens and a 300-degree immersive training environment ensures that time in the simulator translates into real world survival skills. The system reconfigures to support 15 individual firing lanes. |
|
|
|
|
○ |
A key feature of the V-300™ shows how quickly judgment decisions must be made, and, sometimes, if they are not made immediately and accurately, it can lead to the possible loss of lives. This feature, among others, supports our value proposition to our customers is that best practices is being prepared enough for the surprises that could be around every corner and the ability to safely neutralize any life-threatening encounters. |
|
● |
V-180™ Simulator – a 180° screen with video capability is for smaller spaces or smaller budgets |
|
○ |
The V-180™ is the higher standard for decision-making simulation and tactical firearms training. Three screens and a 180-degree immersive training environment ensure that time in the simulator translates into real world survival skills. |
|
● |
V-100™ Simulator & V-100™ MIL – a single-screen based simulator systems |
|
○ |
The V-100™ is the higher standard among single-screen firearms training simulators. Firearms training mode supports up to 4 individual firing lanes at one time. The optional Threat-Fire™ device safely simulates enemy return fire with an electric impulse (or vibration version), reinforcing performance under pressure. We offer an upgrade path, so a V-100™ firearms training and force options simulator can affordably grow into an advanced multi-screen trainer in upgraded products that we offer customers for future purchase. |
5
Table of Contents
|
○ |
The V-100™ MIL is sold to various military commands throughout the world and can support any local language. The system is extremely compact and can even share space with a standard classroom or fits into almost any existing facility. If a portable firearms simulator is needed, this model offers the most compact single-screen simulator on the market today – everything organized into one standard case. The V-100™ MIL is the higher standard among single-screen small arms training simulators. Military Engagement Skills mode supplies realistic scenario training taken from real world events. |
|
○ |
The V-ST PRO™ a highly realistic single screen firearms shooting and skills training simulator with the ability to scale to multiple screens creating superior training environments. The system’s flexibility supports a combination of marksmanship and use of force training on up to 5 screens from a single operator station. The V-ST PRO™ is also capable of displaying 1 to 30 lanes of marksmanship featuring real world, accurate ballistics. |
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|
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|
○ |
The V-100 NG-Next generation is a portable high fidelity simulation system that combines advanced simulation capabilities in a compact, self contained system designed for rapid setup, flexible deployment and instructor-led training across a wide range of operational scenarios for verbal use of force training and marksmanship skill development |
|
● |
Virtual Interactive Coursework Training Academy (V-VICTA)™ enables law enforcement agencies, to effectively teach, train, test and sustain departmental training requirements through nationally accredited coursework and training scenarios using our simulators. |
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|
● |
VirTra’s Red Dot Optic Training, a 4-hour nationally-certified course developed with Victory First and Aimpoint, equips law enforcement officers with the skills to transition from iron sights to pistol-mounted red dot sights through 21 practical drills. Part of the V-VICTA program, it enhances accuracy and target acquisition while addressing optic failures, offered free to VirTra customers with an annual service agreement |
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|
● |
Subscription Training Equipment Partnership (STEP)™ is a program that allows agencies to utilize VirTra’s simulator products, accessories, and V-VICTA interactive coursework on a subscription basis. |
|
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|
● |
V-Author® proprietary software allows users to create, edit, and train with content specific to the agency’s objectives and environments. V-Author is an easy-to-use application capable of almost unlimited custom scenarios, skill drills, targeting exercises, and firearms courses of fire. It also allows panoramic photos of any local location so users can train in their actual reality. |
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|
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|
● |
Simulated Recoil Kits - a wide range of highly realistic and reliable simulated recoil kits/weapons made in the USA. VirTra’s True-Fire® recoil kits do not allow for faulty extra shots. Recoil kits use either CO2 or HPA greatly reducing the need for costly ammunition. |
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|
● |
Return Fire Device – the patented Threat-Fire® device applies real-world stress on the trainees during simulation training. Stress inoculation is a key component of training exercises. VirTra holds a patent for electronic simulation in simulation making the pairing of the device and the simulators a sourced item. |
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|
● |
VirTra has installed a volumetric video capture studio in order to create training scenarios that are used in either screen-based simulators or headset-based simulators. Volumetric video realism far exceeds that of computer-generated avatars which likely gives VirTra a strategic advantage for highly desired de-escalation training, especially when simulating human interaction is required. By using this studio, along with outside filming, we are able to offer customers the ability to purchase custom scenarios to meet their specific needs. |
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|
● |
TASER©, OC spray and low-light training devices that interact with VirTra’s simulators for training. |
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|
● |
V-XR is an extended reality headset-based training solution. It comes ready to use out of the box with two headsets, a trainer tablet, charging stations, a router, a casting device, and cables in a portable hard case, with a 3-year manufacturer’s warranty. |
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|
● |
APEX is a revolutionary, web-based platform that helps organizations collect, evaluate, analyze and report their training data through secure and consistent processes, these processes operate in real -time, ensuing workflow and training sessions are maximized for effectiveness. This platform through a partnership with Vialytics comes with the base subscription on every VirTra system with an Apex pro-option available as an upgrade |
6
Table of Contents
Results of operations for the three and six months ended June 30, 2026, and June 30, 2025
Revenues. Net sales for the three months ended June 30, 2026 were $5,763,358, compared to $6,978,938 for the same period in 2025, representing a decrease of $1,215,580, or 17%. Net sales for the six months ended June 30, 2026 were $9,237,504 compared to $14,139,185 for the same period in 2025, representing a decrease of $4,901,681, or 35%. The decrease was primarily the result of delayed revenue recognition related to temporary customer delivery deferrals. Importantly, backlog remains strong, supporting future revenue conversion as deliveries resume. Additionally, a larger portion of bookings came in at the end of the quarter, which resulted in revenue conversion of these bookings in the third quarter at the earliest. Revenue continues to be affected by our concentration in government-funded customers, including international customers whose purchases are funded through U.S. federal programs. The end of the second quarter was the first time the Company began to see funding start to open up, with a few large orders coming in from our long-term customers that finally had funds released.
Cost of Sales. Cost of sales increased to $2,347,656 for the three months ended June 30, 2026, from $2,166,461 for the same period in 2025, an increased of $181,195, or 8%, primarily due to a few content projects closing out which is charged to cost of goods as they finish and are sent to all customers. Cost of sales decreased to $3,687,998 for the six months ended June 30, 2026, from $4,129,828 for the same period in 2025, a decrease of $441,830, or 11%, primarily due to lower sales volumes. Cost of sales decreased on a year-over-year basis; however, the corresponding reduction was less significant than the decline in revenue, resulting in an increase in cost of sales as a percentage of revenue. This was driven primarily by development and content creation costs that are not directly variable with revenue levels.
Gross Profit. Gross profit was $3,415,702 for the three months ended June 30, 2026, compared to $4,812,477 for the same period in 2025, a decrease of $1,396,775, or 29%. Gross profit was $5,549,506 for the six months ended June 30, 2026, compared to $10,009,357 for the same period in 2025, a decrease of $4,459,851, or 45%. The gross profit margin for the three months ended June 30, 2026 and 2025 was 59% and 69%, respectively. The gross profit margin for the six months ended June 30, 2026 and 2025 was 60% and 71%, respectively. This decrease in margin is driven by the Company continuing to work on new scenarios for all our customers and improve our integrations with other software, including VBS and Vialytics, which will help drive revenue.
Operating Expenses. Net operating expense was $3,603,166 for the three months ended June 30, 2026, compared to $3,898,111 for the same period in 2025, a decrease of $294,945, or 8%. Net operating expense was $7,065,011 for the six months ended June 30, 2026, compared to $7,727,189 for the same period in 2025, a decrease of $662,178, or 9%. Operating expenses decreased during the period as a result of management's continued focus on cost-control measures and overhead optimization in anticipation of lower revenue levels.
Operating Income. Operating loss was ($187,464) for the three months ended June 30, 2026, compared to operating income of $914,366 for the same period in 2025, a decrease of $1,101,830 or 121%. Operating loss was ($1,515,505) for the six months ended June 30, 2026, compared to operating income of $2,282,168 for the same period in 2025, a decrease of $3,797,673 or 166%. The year-over-year decline was driven principally by lower revenues and higher cost of sales, while operating expenses decreased only marginally during the period.
Net Other Income. Other income net of other expense was $14,645 for the three months ended June 30, 2026, compared to net other expense of $748,052 for the same period in 2025, an improvement of $762,697, or 102%. Other income net of other expense was $68,053 for the six months ended June 30, 2026, compared to net other expense of $749,794 for the same period in 2025, an improvement of $817,847 or 109%. The change from expense to income is primarily attributable to a significant foreign exchange (FX) loss recognized in the second quarter of 2025, compared with minimal FX expense and higher interest income in 2026.
Provision (Benefit) for Income Tax. Provision for income tax was $88,439 for the three months ended June 30, 2026, compared to ($9,000) benefit for the same period in 2025, a decrease of $97,439, or 1083%. Provision for income tax was $142,438 for the six months ended June 30, 2026, compared to $93,000 for the same period in 2025, an increase of $49,438, or 53%. Provision for income tax is estimated quarterly applying both federal and state tax rates.
Net Income. Net loss was ($261,258) for the three months ended June 30, 2026, compared to net income of $175,314 for the same period in 2025, a decrease of $436,572 or 249%. Net loss was ($1,589,890) for the six months ended June 30, 2026, compared to net income of $1,439,374 for the same period in 2025, a decrease of $3,029,264 or 210%. The fluctuation in net income relates to each respective revenue section discussed above.
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Table of Contents
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization. Explanation and Use of Non-GAAP Financial Measures:
Earnings before interest, income taxes, depreciation, and amortization and before other non-operating costs and income (“EBITDA”) and adjusted EBITDA are non-GAAP measures. Adjusted EBITDA also includes non-cash stock option expense. Other companies may calculate adjusted EBITDA differently. The Company 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 the Company’s investors regarding the Company’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 the Company’s industry, several of which present EBITDA and 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 the Company’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 (loss), cash flows from operating activities and other income or cash flow statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. A reconciliation of net loss to adjusted EBITDA is provided in the following table:
|
|
For Three Months Ended |
|
|
For Six Months Ended |
|
||||||||||||||||||||||||||
|
|
June 30, |
|
|
June 30, |
|
|
Increase |
|
|
|
% |
|
June 30, |
|
|
June 30, |
|
|
Increase |
|
|
|
% |
||||||||
|
|
2026 |
|
|
2025 |
|
|
(Decrease) |
|
|
Change |
|
|
2026 |
|
|
2025 |
|
|
(Decrease) |
|
|
Change |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ | (261,258 |
) |
|
$ | 175,314 |
|
|
$ | (436,572 |
) |
|
|
-249 |
% |
|
$ | (1,589,890 |
) |
|
$ | 1,439,374 |
|
|
$ | (3,029,264 |
) |
|
|
-210 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
88,439 |
|
|
|
(9,000 |
) |
|
|
97,439 |
|
|
|
-1083 |
% |
|
|
142,438 |
|
|
|
93,000 |
|
|
|
49,438 |
|
|
|
53 |
% |
Depreciation and amortization |
|
|
520,368 |
|
|
|
513,693 |
|
|
|
6,675 |
|
|
|
1 |
% |
|
|
990,394 |
|
|
|
829,841 |
|
|
|
160,553 |
|
|
|
19 |
% |
Interest (net) |
|
|
6,426 |
|
|
|
(26,876 |
) |
|
|
33,302 |
|
|
|
-124 |
% |
|
|
(15,346 |
) |
|
|
(48,127 |
) |
|
|
32,781 |
|
|
|
-68 |
% |
EBITDA |
|
|
353,975 |
|
|
|
653,131 |
|
|
|
(299,156 |
) |
|
|
-46 |
% |
|
|
(472,404 |
) |
|
|
2,314,088 |
|
|
|
(2,786,492 |
) |
|
|
-120 |
% |
Right of use amortization |
|
|
29,280 |
|
|
|
42,501 |
|
|
|
(13,221 |
) |
|
|
-31 |
% |
|
|
72,773 |
|
|
|
84,365 |
|
|
|
(11,592 |
) |
|
|
-14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ | 383,255 |
|
|
$ | 695,632 |
|
|
$ | (312,377 |
) |
|
|
-45 |
% |
|
$ | (399,631 |
) |
|
$ | 2,398,453 |
|
|
$ | (2,798,084 |
) |
|
|
-117 |
% |
Liquidity and Capital Resources. Liquidity is the ability of an enterprise to generate adequate amounts of cash to meet its needs for cash requirements. The Company had $14,312,743 and $ 18,594,598 of cash and cash equivalents as of June 30, 2026, and December 31, 2025, respectively. Working capital was $28,373,949 and $30,793,890 as of June 30, 2026, and December 31, 2025 respectively.
Net cash used in operating activities was $2,720,870 and net cash provided by operating activities was $6,047,430 for the six months ended June 30, 2026 and 2025, respectively. Net cash used in operating activities resulted primarily from the net loss for the period and increases in inventory to support future growth and $1,000,000 used for the Orlando building purchase deposit.
Net cash used in investing activities was $1,442,859 for the six months ended June 30, 2026, compared to net cash used in investing activities of 3,261,941 for the six months ended June 30, 2025. Investing activities in 2026 and 2025 consisted of purchases of property and equipment.
Net cash used in financing activities was $122,116 for the six months ended June 30, 2026, compared to $128,962 used in the six months ended June 30, 2025. In both periods, cash was used primarily for principal payment of debt and in 2026 the creation of the new mortgage note for the purchase of the Orlando building.
8
Table of Contents
Bookings and Backlog
The Company defines bookings as the total of newly signed contracts, awarded RFP’s and purchase orders received in a defined time period. The Company received bookings totaling $5.5 million for the three months ended June 30, 2026 and bookings totaling $9.3 million for the six months ended June 30, 2026. The Company has made one change to the booking qualifications. As previously disclosed, in 2024 we strengthened the language in the STEP contract Terms and Conditions to better ensure the agreement remains in effect for the full three-year term. This change was done to secure future revenue and lower our risk of unsigned or cancelled contracts. Therefore, with this change, we believe there are $1.7 million in renewable STEP contract options still outstanding, and based on current renewal rates, the Company believes 95% of those options will be exercised.
The Company defines backlog as the accumulation of bookings from signed contracts and purchase orders that are not started, or have uncompleted performance objectives, and cannot be recognized as revenue until delivered in a future quarter. The Company splits the backlog into three categories. The first is capital, which includes sales of all the simulators, corresponding accessories, installs, training custom content and custom design work. The second and third are extended warranty agreements and STEP agreements that are deferred revenue recognized on a straight-line basis over the life of each respective agreement. As of June 30, 2026, the Company’s backlog was $13.2 million in Capital, $3.8 million in Service and $7.9 million in STEP, for a total of $24.9 million. This is a decrease in backlog from December 31, 2025 which sat at $13.8 million in Capital, $5.1 million in Service and $6.7 million in STEP, for a total of $25.6 million
Management estimates that most new capital bookings received in the second quarter of 2026 will be converted to revenue in 2026. Management recognizes that there are a percentage of capital contracts that will extend into 2027 by request of the customers. Management’s estimate for the conversion of backlog is based on current contract delivery dates; however, contract terms and install dates are subject to modification and are routinely changed at the request of the customer or due to factors outside the Company’s control.
Cash Requirements
Our management believes that our current capital resources will be adequate to continue operating our Company and maintaining our current business strategy for more than 12 months from the filing of this Quarterly Report. We are, however, open to raising additional funds from the capital markets, at a fair valuation, to purchase a business or assets, expand our production capacity, expand our product and services, to enhance our sales and marketing efforts and effectiveness, and to aggressively take advantage of emerging market opportunities. There can be no assurance, however, that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, when it is needed, we will be forced to scale down our plans for expanded marketing and sales efforts.
Critical Accounting Policies and Estimates
Our discussion and analysis of our financial condition and results of operations are based on our unaudited financial statements, which have been prepared in accordance with GAAP. The preparation of our unaudited financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to areas that require a significant level of judgment or are otherwise subject to an inherent degree of uncertainty. Significant accounting estimates in these financial statements include valuation assumptions for share-based payments, allowance for doubtful accounts and notes receivable, inventory reserves, accrual for warranty reserves, the carrying value of long-lived assets, income tax valuation allowances, the carrying value of cost basis investments, and the allocation of the transaction price to the performance obligations in our contracts with customers. We base our estimates on historical experience, our observance of trends in particular areas, and information or valuations and various other assumptions that we believe to be reasonable under the circumstances and which form the basis for making judgments about the carrying value of assets and liabilities that may not be readily apparent from other sources. Actual amounts could differ significantly from amounts previously estimated. For a discussion of our critical accounting policies, refer to Part I, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025. Management believes that there have been no changes in our critical accounting policies during the three months ended June 30, 2026.
9
Table of Contents
Recent Accounting Pronouncements
See Note 1 to our financial statements, included in Part I, Item 1., Financial Information of this Quarterly Report on Form 10-Q.
Off-Balance Sheet Arrangements
As of June 30, 2026, we did not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. The term “off-balance sheet arrangement” generally means any transaction, agreement or other contractual arrangement to which an entity unconsolidated with us is a party, under which we have any obligation arising under a guaranteed contract, derivative instrument or variable interest or a retained or contingent interest in assets transferred to such entity or similar arrangement that serves as credit, liquidity or market risk support for such assets.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not required for smaller reporting companies.
ITEM 4. CONTROLS AND PROCEDURES.
Evaluation of disclosure controls and procedures
We maintain “disclosure controls and procedures,” as that term is defined in Rule 13a-15(e), promulgated by the SEC pursuant to the Exchange Act. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our company’s reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officers and principal financial officer, to allow timely decisions regarding required disclosure. Our management, with the participation of our principal executive officers and principal financial officer, evaluated our company’s disclosure controls and procedures as of the end of the period covered by this quarterly report on Form 10-Q. Based on this evaluation, our principal executive officers and principal financial officer concluded that as of June 30, 2026, our disclosure controls and procedures were not effective. The ineffectiveness of our disclosure controls and procedures was due to material weaknesses, which we identified in our report on internal control over financial reporting contained in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 26, 2026. These weaknesses were (i) lack of multiple levels of management review on complex business, accounting, and financial reporting issues and (ii) failure to implement adequate system and manual controls. As noted in 10-K, until such time as we expand our staff to include additional accounting and executive personnel and accounting systems and procedures, it is likely the first material weakness will continue. With respect to the second material weakness, our Board of Directors has directed management to implement more effective system and manual controls.
Change in internal control over financial reporting
There has been no change in our internal control over financial reporting that occurred during the quarterly period ended June 30, 2026, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. However, during the quarter ended June 30, 2026, and continuing through 2026, we are implementing more formal review and documentation of workflow processes and increasing our ERP training for our staff. We believe that a control system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the control system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within any company have been detected.
10
Table of Contents
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There is no material pending legal proceedings, other than ordinary routine litigation incidental to the business, to which we are a party or of which any of our property is the subject.
ITEM 1A. RISK FACTORS
Not required for smaller reporting companies.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
| (a) | None |
|
|
|
| (b) | There have been no material changes to the procedures by which security holders may recommend nominees to the Company’s Board of Directors since the filing with the SEC of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. |
| (c) | None |
11
Table of Contents
ITEM 6. EXHIBITS
Exhibit No. |
|
Exhibit Description |
10.1 |
|
Promissory Note to UMB date May 15th, 2026 |
|
|
|
10.2 |
|
Mortgage on Orlando property date May 15th, 2026 |
|
|
|
10.3 |
|
Assignment of Leases and Rents |
|
|
|
31.1 |
|
Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|
|
|
31.2 |
|
Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|
|
|
32.1 |
|
Certification of the Principal Executive Officers and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|
|
|
101.INS |
|
Inline XBRL Instance Document |
|
|
|
101.SCH |
|
Inline XBRL Taxonomy Extension Schema Document |
|
|
|
101.CAL |
|
Inline XBRL Taxonomy Extension Calculation Document |
|
|
|
101.DEF |
|
Inline XBRL Taxonomy Extension Definition Linkbase Document |
|
|
|
101.LAB |
|
Inline XBRL Taxonomy Extension Label Linkbase Document |
|
|
|
101.PRE |
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document |
|
|
|
104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
12
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
VIRTRA, INC. |
|
|
|
|
Date: August 13, 2026 |
By: |
/s/ John F. Givens II |
|
|
John F. Givens II |
|
|
Chief Executive Officer |
|
|
(principal executive officer) |
|
|
|
|
By: |
/s/ Alanna Boudreau |
|
|
Chief Financial Officer |
|
|
(principal financial officer) |
13