Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐	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: 001-38420

VIRTRA, INC.

(Exact name of registrant as specified in its charter)

Nevada		93-1207631
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

295 E. Corporate Place, Chandler, AZ		85225
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (480) 968-1488

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
Common Stock, $0.0001 par value		VTSI		Nasdaq Capital Market

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. Yes ☒ No ☐

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). Yes ☒ No ☐

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	☐
Non-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 ☐ No ☒

As of August 7, 2024, the registrant had 11,168,273 shares of common stock outstanding.

TABLE OF CONTENTS

			PAGE NO.
PART I	FINANCIAL INFORMATION

	Item 1.	Financial Statements (Unaudited)	F-1
		Condensed Balance Sheets as of June 30, 2024 and December 31, 2023	F-1
		Condensed Statements of Operations for the Three and Six Months ended June 30, 2024 and 2023	F-2
		Condensed Statements of Changes in Stockholders’ Equity for the Three and Six Months Ended June 30, 2024 and 2023	F-3
		Condensed Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023	F-4
		Notes to the Unaudited Financial Statements	F-5

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	8

	Item 4.	Controls and Procedures	8

PART II	OTHER INFORMATION

	Item 1.	Legal Proceedings	9

	Item 1A.	Risk Factors	9

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	9

	Item 3.	Defaults Upon Senior Securities	9

	Item 4.	Mine Safety Disclosures	9

	Item 5.	Other Information	9

	Item 6.	Exhibits	9

	SIGNATURES		10

PART I: FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

VIRTRA, INC.

CONDENSED BALANCE SHEETS

(unaudited)

	June 30, 2024		December 31, 2023

ASSETS
Current assets:
Cash and cash equivalents	$	18,411,634	$	18,849,842
Accounts receivable, net		9,124,425		15,724,147
Inventory, net		13,470,715		12,404,880
Unbilled revenue		1,389,658		1,109,616
Prepaid expenses and other current assets		1,953,015		906,803
Total current assets		44,349,447		48,995,288
Long-term assets:
Property and equipment, net		16,575,177		15,487,012
Operating lease right-of-use asset, net		519,375		716,687
Intangible assets, net		563,096		567,540
Security deposits, long-term		35,691		35,691
Other assets, long-term		201,670		201,670
Deferred tax asset, net		3,780,112		3,630,154
Total long-term assets		21,675,121		20,638,754
Total assets	$	66,024,568	$	69,634,042

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,013,483	$	2,282,427
Accrued compensation and related costs		1,920,367		2,221,416
Accrued expenses and other current liabilities		573,510		3,970,559
Note payable, current		230,457		226,355
Operating lease liability, short-term		189,098		317,840
Deferred revenue, short-term		5,619,406		6,736,175
Total current liabilities		9,546,321		15,754,772
Long-term liabilities:
Deferred revenue, long-term		3,022,676		3,012,206
Note payable, long-term		7,690,940		7,813,021
Operating lease liability, long-term		353,710		432,176
Total long-term liabilities		11,067,326		11,257,403
Total liabilities		20,613,647		27,012,175
Commitments and contingencies (See Note 9)		-		-
Stockholders’ equity:
Preferred stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding		-		-
Common stock $0.0001 par value; 50,000,000 shares authorized; 11,112,230 shares and 11,107,230 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively		1,110		1,109
Class A common stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding		-		-
Class B common stock $0.0001 par value; 7,500,000 shares authorized; no shares issued or outstanding		-		-
Common stock value
Additional paid-in capital		32,329,917		31,957,765
Retained earnings		13,079,894		10,662,993
Total stockholders’ equity		45,410,921		42,621,867
Total liabilities and stockholders’ equity	$	66,024,568	$	69,634,042

See accompanying notes to unaudited condensed financial statements.

F-1

VIRTRA, INC.

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

	2024		2023			2024		2023
	Three Months Ended June 30,					Six Months Ended June 30,
	2024		2023			2024		2023
Revenues:
Net sales	$	6,075,040	$	10,336,903		$	14,169,438	$	20,363,838
Total revenue		6,075,040		10,336,903			14,169,438		20,363,838

Cost of sales		550,424		4,416,202			3,182,681		7,494,199

Gross profit		5,524,616		5,920,701			10,986,757		12,869,639

Operating expenses:
General and administrative		3,537,910		3,280,344			6,908,332		5,991,681
Research and development		855,285		711,754			1,548,665		1,478,050

Net operating expense		4,393,195		3,992,098			8,456,997		7,469,731

Income (loss) from operations		1,131,421		1,928,603			2,529,760		5,399,908

Other income (expense):
Other income		156,870		208,599			486,141		392,240
Gain on forgiveness of note payable		-		(133,078	)		-		(200,305	)
Other (expense) income

Net other income (expense)		156,870		75,521			486,141		191,935

Income (Loss) before provision for income taxes		1,288,291		2,004,124			3,015,901		5,591,843

Provision (Benefit) for income taxes		87,564		977,489			599,000		1,618,834

Net income (loss)	$	1,200,727	$	1,026,635		$	2,416,901	$	3,973,009

Net income (loss) per common share:
Basic	$	0.11	$	0.09		$	0.22	$	0.36
Diluted	$	0.11	$	0.09		$	0.22	$	0.36

Weighted average shares outstanding:
Basic		11,063,366		10,924,714			10,885,965		10,921,033
Diluted		11,065,866		10,933,130			10,885,965		10,925,702

See accompanying notes to unaudited condensed financial statements.

F-2

VIRTRA, INC.

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

	Shares		Amount		Shares		Amount		Capital		Stock		Earnings		Total
	For the Three Months Ended June 30, 2024
	Preferred Stock				Common Stock				Additional Paid-In		Treasury		Accumulated
	Shares		Amount		Shares		Amount		Capital		Stock		Earnings		Total

Balance at March 31, 2024		-	$	-		11,109,730		1,110		32,108,513		-		11,879,166		43,988,789
Stock options exercised		-		-		2,500		-		9,400		-		-		9,400
Stock reserved for future services		-		-		-		-		212,004		-		-		212,004
Net income		-		-		-		-		-		-		1,200,727		1,200,727
Balance at June 30, 2024		-	$	-		11,112,230		1,110		32,329,917		-		13,079,894		45,410,921

	For the Three Months Ended June 30, 2023
	Preferred Stock				Common Stock				Additional Paid-In			Treasury		Accumulated
	Shares		Amount		Shares		Amount		Capital			Stock		Earnings		Total

Balance at March 31, 2023		-	$	-		10,924,274		1,109		31,536,182			-		5,206,508		36,743,781
Stock options exercised		-		-		2,500		1		10,475			-		-		10,476
Stock options repurchased		-		-		-		-		(17,568	)		-		-		(17,568	)
Stock reserved for future services		-		-		-		-		175,412			-		-		175,412
Net income		-		-		-		-		-			-		1,026,635		1,026,635
Balance at June 30, 2023		-	$	-		10,926,774		1,092		31,704,501			-		6,233,144		37,938,737

For the Six Months Ended June 30, 2024
	Preferred Stock				Common Stock				Additional Paid-In		Treasury		Accumulated
	Shares		Amount		Shares		Amount		Capital		Stock		Earnings		Total

Balance at December 31, 2023		-	$	-		11,107,230		1,109		31,957,765		-		10,662,993		42,621,867
Stock options exercised		-		-		5,000		1		20,149		-		-		20,150
Stock reserved for future services		-		-		-		-		352,003		-		-		352,003
Net income		-		-		-		-		-		-		2,416,901		2,416,901
Balance at June 30, 2024		-	$	-		11,112,230		1,110		32,329,917		-		13,079,894		45,410,921

For the Six Months Ended June 30, 2023
	Preferred Stock				Common Stock				Additional Paid-In			Treasury		Accumulated
	Shares		Amount		Shares		Amount		Capital			Stock		Earnings		Total

Balance at December 31, 2022		-	$	-		10,900,759		1,089		31,420,395			-		2,260,135		33,681,619
Balance		-	$	-		10,900,759	$	1,089	$	31,420,395				$	2,260,135	$	33,681,619
Stock options exercised		-		-		10,000		2		27,200			-		-		27,202
Stock options repurchased		-		-		-		-		(17,568	)		-		-		(17,568	)
Stock reserved for future services										74,999			-		-		75,000
Stock reserved for future services		-		-		16,015		1		199,475			-		-		199,475
Net income		-	$	-		-		-		-			-		3,973,009		3,973,009
Balance at June 30, 2024		-	$	-		10,926,774		1,092		31,704,501			-		6,233,144		37,938,737
Balance		-	$	-		10,926,774	$	1,092	$	31,704,501				$	6,233,144	$	37,938,737

See accompanying notes to unaudited condensed financial statements.

F-3

VIRTRA, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	2024			2023
	Six Months Ended June 30
	2024			2023
Cash flows from operating activities:
Net income	$	2,416,901		$	3,973,009
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		525,077			479,889
Right of use amortization		197,312			244,580
Employee stock compensation		352,005			199,475
Stock issued for service		-			75,000
Changes in operating assets and liabilities:
Accounts receivable, net		6,599,722			(14,928,520	)
Inventory, net		(1,065,835	)		(375,211	)
Deferred taxes		(149,958	)		(3,122,905	)
Unbilled revenue		(280,044	)		5,063,881
Prepaid expenses and other current assets		(1,046,213	)		(15,281	)
Other assets		-			173,999
Accounts payable and other accrued expenses		(4,967,236	)		3,792,847
Operating lease right of use		(207,208	)		(257,677	)
Deferred revenue		(1,106,299	)		5,010,384
Net cash provided by operating activities		1,268,224			313,470

Cash flows from investing activities:
Purchase of property and equipment		(1,608,798	)		(345,640	)
Net cash (used in) investing activities		(1,608,798	)		(345,640	)

Cash flows from financing activities:
Principal payments of debt		(117,785	)		(118,087	)
Stock Options Exercised		20,151			9,634
Repurchase of Stock based options		-			-
Net cash (used in) financing activities		(97,634	)		(108,453	)

Net (decrease) in cash		(438,208	)		(140,623	)
Cash and restricted cash, beginning of period		18,849,842			13,483,597
Cash and restricted cash, end of period	$	18,411,634		$	13,342,974

Supplemental disclosure of cash flow information:
Interest paid	$	84,403		$	134,514
Income taxes paid (refunded)	$	5,314,387		$	-

See accompanying notes to unaudited condensed financial statements.

F-4

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 and ultimately became 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, 2023 included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on April 1, 2024. 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, 2024, and the results of our operations and cash flows for the periods presented. We derived the December 31, 2023, 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, 2024, are not necessarily indicative of the results to be expected for the full year.

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 doubtful accounts, inventory reserves, accrual for warranty reserves, the carrying value of long-lived assets and intangible assets, income tax valuation allowances, and the allocation of the transaction price to the performance obligations in our contracts with customers.

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.

F-5

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

The Company’s primary sources of revenue are derived from simulator and accessories sales, training and installation, the sale of customizable software and the sale of extended service-type warranties. The Company’s policy is to typically invoice upon completion of installation and/or training until such a time the performance obligations that have been satisfied are included in unbilled. 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 expanded)

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.

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 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 noncash 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-6

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.

Schedule of Disaggregation of Revenue

	Commercial		Government		International		Total		Commercial		Government		International		Total
	Three Months Ended June 30
	2024								2023
	Commercial		Government		International		Total		Commercial		Government		International		Total
Simulators and accessories	$	136,571	$	1,927,438	$	477,837	$	2,541,846	$	73,099	$	7,365,343	$	355,630	$	7,794,072
Extended Service-type warranties		72,000		1,332,049		22,103		1,426,152		21,367		599,390		16,257		637,014
Customized software and content		-		17,127		82,500		99,627		4,800		277,555		82,855		365,210
Installation and training		4,196		157,691		6,650		168,537		19,702		154,280		208,141		382,123
Design & Prototyping		-		863,582		-		863,582		-		-		-		-
STEP		-		965,810		9,486		975,296		-		1,140,948		17,536		1,158,484
Total Revenue	$	212,767	$	5,263,697	$	598,576	$	6,075,040	$	118,968	$	9,537,516	$	680,419	$	10,336,903

	Commercial		Government		International		Total		Commercial		Government		International		Total
	Six Months Ended June 30
	2024								2023
	Commercial		Government		International		Total		Commercial		Government		International		Total
Simulators and accessories	$	212,351	$	5,738,695	$	1,756,095	$	7,707,141	$	562,908	$	12,114,712	$	3,507,795	$	16,185,415
Extended Service-type warranties		72,000		2,202,851		26,305		2,301,156		44,711		1,138,598		35,680		1,218,989
Customized software and content		-		282,533		82,500		365,033		24,300		284,751		65,994		375,045
Installation and training		4,196		394,030		11,814		410,040		40,264		403,834		261,829		705,927
Design & Prototyping		-		1,446,908		-		1,446,908		-		-		-		-
STEP		-		1,920,160		19,000		1,939,160		-		1,871,221		7,242		1,878,463
Total Revenue	$	288,547	$	11,985,177	$	1,895,714	$	14,169,438	$	672,183	$	15,813,115	$	3,878,540	$	20,363,838

Commercial customers include selling through prime contractors for military or law enforcement contracts domestically and until it becomes a larger portion of the revenue will include any healthcare sales. Government customers are defined as directly selling to government agencies. For the three months ended June 30, 2024, governmental customers comprised $5,263,697 or 87% of total net sales, commercial customers comprised $212,767 or 3% of total net sales and international customers comprised $598,576 or 10% of total net sales. By comparison, for the three months ended June 30, 2023, governmental customers comprised $9,537,516, or 92% of total net sales, commercial customers comprised $118,968 or 1% of total net sales and international customers comprised $680,419, or 7% of total net sales. For the six months ended June 30, 2024, governmental customers comprised $11,985,177 or 85% of total net sales, commercial customers comprised $288,547 or 2% of total net sales and international customers comprised $1,895,714 or 13% of total net sales. By comparison, for the six months ended June 30, 2023, governmental customers comprised $15,813,115 or 78% of total net sales, commercial customers comprised $672,183 or 3% of total net sales and international customers comprised $3,878,540, or 19% of total net sales. For the six months ended June 30, 2024, and 2023, the Company recorded $1,920,160 and $1,871,221 respectively, in STEP revenue, or 14% and 9%, respectively, of total net sales.

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 under deferred revenue on the accompanying balance sheet and totaled $1,466,632 and $4,047,269 on June 30, 2024, and December 31, 2023, respectively. Changes in deferred revenue amounts related to customer deposits will fluctuate from year to year based upon the mix of customers required to prepay deposits under the Company’s credit policy. The decrease in deferred revenue from December was due to the Company converting the deposits into revenue as we delivered on our obligations.

F-7

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

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 $2,510,297 and $2,627,763 as of June 30, 2024, and December 31, 2023, respectively. Deferred revenue for separately priced extended warranties longer than one year totaled $2,930,779 and $2,974,710 as of June 30, 2024, and December 31, 2023, respectively. The accrual for the one-year manufacturer’s warranty liability totaled $295,000 and $354,000 as of June 30, 2024, and December 31, 2023, respectively. We did not see any change in the amount of warranty repairs, due to new quality controls and equipment, so we maintained our warranty liability for another quarter. During the six months ended June 30, 2024, and 2023, the Company recognized revenue of $2,301,156 and $1,218,989, respectively, related to the extended service-type warranties that was amortized from the deferred revenue balance at the beginning of each period. Changes in deferred revenue amounts related to extended service-type warranties will fluctuate from year to year based upon the average remaining life of the warranties at the beginning of the period and new extended service-type warranties sold during the period.

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 $250,000 per depositor, per FDIC-insured bank, per ownership category. The Company had uninsured cash and cash equivalents of $17,911,634 and $18,349,842 as of June 30, 2024, and December 31, 2023, respectively.

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.

Historically, the Company primarily sells its products to U.S. federal, state and municipal agencies.

As of June 30, 2024, the Company had three customer that accounted for 24%, 11%, and 10% respectively, of total accounts receivable. As of December 31, 2023, the Company had customers that accounted for 28% and 14% of total accounts receivable.

As of June 30^th, 2024 the Company had two suppliers that each accounted for 13% of the total accounts payable

For the three months ended June 30, 2024, and 2023, the Company had 2 customer that accounted for 14% and 12% of total revenue.

F-8

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

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:

Schedule of Earnings Per Share

	2024		2023
	Three Months Ended June 30
	2024		2023
Net Income (Loss)	$	1,200,727	$	1,026,635
Weighted average common stock outstanding		11,063,366		10,924,714
Incremental shares from stock options		2,500		8,416
Weighted average common stock outstanding, diluted		11,065,866		10,933,130

Net Income (Loss) per common share and common equivalent share
Basic	$	0.11	$	0.09
Diluted	$	0.11	$	0.09

	2024		2023
	Six Months Ended June 30
	2024		2023
Net Income (Loss)	$	2,416,901	$	3,973,009
Weighted average common stock outstanding		10,885,965		10,921,033
Incremental shares from stock options				4,669
Weighted average common stock outstanding, diluted		10,885,965		10,925,702

Net Income (Loss) per common share and common equivalent share
Basic	$	0.22	$	0.36
Diluted	$	0.22	$	0.36

Note 2. Inventory

Inventory consisted of the following as of:

Schedule of Inventory

	June 30, 2024			December 31, 2023

Raw materials, WIP, finished goods and Materials being inspected	$	13,961,002		$	12,834,368
Reserve		(490,287	)		(429,488	)

Total Inventory	$	13,470,715		$	12,404,880

The Company regularly evaluates the useful life of its spare parts inventory but did not have any cause to reclassify any this quarter.

F-9

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 3. Property and Equipment

Property and equipment consisted of the following as of:

Schedule of Property and Equipment

	June 30, 2024			December 31, 2023
Land	$	1,778,987		$	1,778,987
Building & Building Improvements		9,146,555			9,146,556
Computer equipment		1,282,359			1,236,989
Furniture and office equipment		314,006			292,208
Machinery and equipment		4,366,452			2,865,014
STEP equipment		2,391,683			2,241,291
Leasehold improvements		358,584			358,584
Construction in Progress		2,346,058			2,456,259

Total property and equipment		21,984,684			20,375,888
Less: Accumulated depreciation and amortization		(5,409,507	)		(4,888,876	)

Property and equipment, net	$	16,575,177		$	15,487,012

Depreciation expenses, including STEP depreciation, were $520,633 and $463,605 for the six months ended June 30, 2024, and 2023, respectively.

Note 4. Intangible Assets

Intangible asset consisted of the following as of:

Schedule of Intangible Asset

	June 30, 2024			December 31, 2023
Patents	$	160,000		$	160,000
Capitalized media content		451,244			451,244
Acquired lease intangible assets		83,963			83,963

Total intangible assets		695,207			695,207
Less accumulated amortization		(132,111	)		(127,667	)

Intangible assets, net	$	563,096		$	567,540

Amortization expenses were $4,936 and $15,792 for the six months ended June 30, 2024, and 2023, respectively.

Note 5. Leases

The Company leases approximately 37,729 rentable square feet of office and warehouse space from an unaffiliated third party for our former corporate office, manufacturing, assembly, warehouse, and shipping facility located at 7970 South Kyrene Road, Tempe, Arizona 85284. From 2016 through March 2019, the Company leased approximately 4,529 rentable square feet of office and industrial space from an unaffiliated third party for our machine shop at 2169 East 5th Street, Tempe, Arizona 85284. In April 2019, the Company relocated the machine shop from the 5th Street location to 7910 South Kyrene Road, located within the same business complex as our main office. The Company executed a lease amendment to add an additional 5,131 rentable square feet for the machine shop and extended its existing office lease through April 2024. On June 1, 2022, we entered a new lease of approximately 9,350 square feet located at 12301 Challenger Parkway, Orlando, Florida, from an unaffiliate third party through May 2027.

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.

F-10

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

In addition to base rent, the Company’s lease 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 4.5%. Significant judgement is required when determining the Company’s incremental borrowing rate. The Company uses the implicit rate when readily determinable. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Effective June 1, 2022, the Company obtained a right-of-use asset in exchange for a new operating lease liability of $840,855. Effective January 1, 2019, the Company obtained a right-of-use asset in exchange for a new operating lease liability in the amount of $1,721,380 and derecognized $46,523 deferred rent for an adjusted operating lease right-of-use asset in the net amount of $1,674,857.

Based on the requirements to move and leave the building in compliance with the company’s lease term, VirTra chose to use the hold over option in the lease agreement for the period of one additional month. The cost of this was split with the subtenant, this extended the lease through May 31, 2024, at which time VirTra entirely vacated the property.

The balance sheet classification of lease assets and liabilities as of June 30, 2024 are as follows:

Balance Sheet Classification	June 30, 2024			December 31, 2023
Assets
Operating lease right-of-use assets, December 31, 2023	$	716,687		$	1,212,814
Amortization for the six months ended June 30		(197,312	)		(496,127	)
Total operating lease right-of-use asset, June 30, 2024	$	519,375		$	716,687
Liabilities
Current
Operating lease liability, short-term	$	189,098		$	317,840
Non-current
Operating lease liability, long-term		353,710			432,176
Total lease liabilities	$	542,808		$	750,016

NON-Cancelable operating leases


2024	$	94,388
2025		191,425
2026		196,311
2027		99,381

Total Lease Payments		581,505
Less: imputed interest		(38,697	)
Operating Lease Liability	$	542,808

Rent expenses for the six months ended June 30, 2024, and 2023, were $335,316 and $284,139, respectively.

F-11

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 6. Accrued Expenses

Accrued compensation and related costs consist of the following as of:

	June 30, 2024		December 31, 2023
Salaries and wages payable	$	428,823	$	457,565
Employee benefits payable		31,706		54,811
Accrued paid time off (PTO)		428,931		361,418
Profit sharing payable		1,030,907		1,347,622

Total accrued compensation and related costs	$	1,920,367	$	2,221,416

Accrued expenses and other current liabilities consisted of the following as of:

	June 30, 2024		December 31, 2023
Manufacturer’s warranties	$	295,000	$	354,000
Taxes payable		11,192		3,411,669
Miscellaneous payable		267,318		204,890

Total accrued expenses and other current liabilities	$	573,510	$	3,970,559

Note 7. Note Payable

On August 25, 2021, the Company completed the purchase of real property located in Chandler, Arizona (the “Property”) for $10,800,000, paid with cash and proceeds from a mortgage loan from Arizona Bank & Trust in the amount of $8,600,000. The loan terms include interest to be accrued at a fixed rate of 3% per year, 119 regular monthly payments of $40,978, and one irregular payment of $5,956,538 due on the maturity date of August 23, 2031. The Company began making monthly payments on September 23, 2021. The payment and performance of the loan is secured by a security interest in the property acquired.

Schedule of Notes Payable

	June 30, 2024		December 31, 2023

Short-term liabilities
Note payable, principal	$	220,896	$	222,320
Accrued interest to date		9,562		4,035

Note Payable, short-term	$	230,458	$	226,355

Long-term liabilities
Note payable, principal	$	7,690,940	$	7,813,021

Note payable, long term	$	7,690,940	$	7,813,021

Note 8. Related Party Transactions

During the six months ended June 30, 2024, one Board member purchased 5,000 shares of common stock, $0.0001 par value per share (the “Common Stock”), pursuant to the exercise of previously awarded stock options at the exercise price of $10,750 during the three months ended March 31, 2024 and $9,400 during the three months ended June 30, 2024.

During the six months ended June 30, 2024, the Company redeemed 10,000 previously awarded stock options nearing expiration, which resulted in $59,600 in additional compensation expense.

During the six months ended June 30, 2023, one Board member and the Company’s Executive Chairman (then Co-CEO) purchased a total of 10,000 shares of common stock, $0.0001 par value per share (the “Common Stock”), pursuant to the exercise of previously awarded stock options at the exercise price of $27,200. Also, during the six months ended June 30, 2023, the Company redeemed 10,000 previously award stock options nearing expiration from the Company’s then Co-CEO, which resulted in a total of $21,150 in additional compensation expense.

F-12

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 9. Commitments and Contingencies

Litigation

From time to time, the Company is notified of litigation or that a claim is being made against it. The Company evaluates contingencies on an on-going basis and has established loss provisions for matters in which losses are probable and the amount of loss can be reasonably estimated. There is no pending litigation at this time.

Restricted Stock Unit Grants

On August 26, 2021, and April 11, 2022, the Compensation Committee of the Board of Directors granted a total of 392,223, and 288,889 Restricted Stock Units (RSUs), respectively, pursuant to Section 9 of the 2017 Equity Incentive Plan to the co-Chief Executive Officers and the Chief Operating Officer, to be awarded based on achievement of certain performance goals over the next three years. During August 2022, 168,090 RSUs were forfeited upon the departure of the Chief Operating Officer. During July 2024, 40,229 RSUs were forfeited upon the departure of the Executive Chairman (formerly one of the co-Chief Executive Officers).

On December 1, 2022, the Company granted a total of 15,000 RSUs to its Chief Financial Officer, which can be awarded based on achievement of performance goals over the next three years. On January 1, 2023, the Company issued 42,735 RSUs to a new member of the Board of Directors which can be awarded only upon a sale of the Company.

It is the Company’s policy to estimate the fair value of the RSU’s on the date of the grant and evaluate the probability of achieving the net profit (net income under GAAP) tranches quarterly. If the target is deemed probable, the expense is amortized on a straight-line basis over the remaining period. The Company determined based on the vesting terms described above that the net profit (net income under GAAP) for the twelve months ending June 30, 2023, was $4,564,459 and therefore awarded 22,988 (prior to deduction of 9,142 shares to pay the tax withholding liability) and 29,630 (prior to the deduction of 11,394 shares to pay the tax withholding liability) shares of common stock to its Executive Chairman and CEO, respectively. Based on the vesting terms described above and a net profit (net income under GAAP) for the twelve months ending June 30, 2024, of $6,500,000 being probable for the Company’s Chief Executive Officer, the Company recorded expenses of $352,003 related to the RSUs for the six months ended June 30, 2024.

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, 2024, and 2023, $313,500 and $300,000 was expensed to operations for profit sharing.

Note 10. Stockholders’ Equity

Stock Repurchase

On October 25, 2016, the Company’s Board of Directors authorized the repurchase of up to $1 million of its common stock under Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended. Purchases made pursuant to this authorization will be made in the open market, in privately negotiated transactions, or pursuant to any trading plan that may be adopted in accordance with Rule 10b-18. The timing, manner, price, and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements, and other factors. On January 9, 2019, VirTra’s Board of Directors authorized an additional $1 million be allocated for the repurchase of VirTra’s stock under the existing 10b-18 plan. The stock repurchase program was suspended due to interim rulings for public-company recipients of a PPP loan under the CARES Act. Although the Company’s PPP loan was forgiven on July 20, 2021, the suspension of the stock repurchase program continues to remain in effect.

F-13

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Non-qualified Stock Options

The Company has periodically issued non-qualified stock options to key employees, officers and directors under a stock option compensation plan approved by the Board of Directors in 2009. Terms of option grants are at the discretion of the Board of Directors and are generally seven years. Upon the exercise of these options, the Company expects to issue new authorized shares of its common stock. The following table summarizes all non-qualified stock options as of:

Schedule of Non-Qualified Stock Options

	June 30,2024					December 31, 2023
	Number of Stock Options			Weighted Exercise Price		Number of Stock Options			Weighted Exercise Price
Options outstanding, beginning of year		15,000		$	4.03		45,000		$	4.26
Granted		-			-		-			-
Redeemed		(10,000	)		3.76		(15,000	)		5.09
Exercised		(5,000	)		3.76		(15,000	)		3.66
Expired / terminated		-			-		-			-
Options outstanding, end of period		-		$	-		15,000		$	4.03
Options exercisable, end of period		-		$	-		15,000		$	4.03

The Company did not have any non-vested stock options outstanding as of June 30, 2024, and December 31, 2023. The weighted average contractual term for options outstanding and exercisable on June 30, 2024, and 2023 was 7 years. The aggregate intrinsic value of the options outstanding and exercisable on June 30, 2024, and 2023 was $0 and $9,750, respectively. For the three months ended June 30, 2024, and 2023, the Company received payments related to the exercise of options in the amount of $9,400 and $16,726, respectively. For the six months ended June 30, 2024, and 2023, the Company received payments related to the exercise of options in the amount of $20,150 and $23,724, respectively The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of the Company’s common stock for those stock options that have an exercise price lower than the fair value of the Company’s common stock. Options with an exercise price above the fair value of the Company’s common stock are considered of no intrinsic value.

2017 Equity Incentive Plan

Through June 30, 2024, 224,133 and 288,889 restricted stock units (RSUs) have been granted under the Equity Plan to the Company’s Executive Chairman and CEO, respectively, of which 17,753 and 158,976 shares were issued in settlement of such RSUs. Also, 10,543 and 14,057 restricted shares were issued to the Company’s former COO and Executive Chairman.

Common stock activity

During the three months ended June 30, 2024, one Board member purchased 2,500 shares of Common Stock pursuant to the exercise of previously awarded stock options at the exercise price of $3.76 per share, for a total of $9,400.

Note 11. Subsequent Events

Effective July 12, 2024, Robert D. Ferris resigned as the Executive Chairman and a director of the Company.

F-14

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, 2023 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, 2023, filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024.

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 simulator 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.

Business Strategy

We have two main customer groups, namely, law enforcement and military. These are quite different markets and require different sales and marketing programs as well as personnel. Our focus is to expand the market share and scope of our training simulators sales to these identified customer groups by pursuing the following key growth strategies:

	●	*Build Our Core Business*. Our goal is to profitably grow our market share by continuing to develop, produce and market the most effective simulators possible. Through disciplined growth in our business, we have achieved a solid balance sheet by increasing our working capital and limiting our bank debt. We plan to add staff to our experienced management team as needed to meet the expected increase in demand for our products and services as we increase our marketing and sales activities.

	●	Increase Total Addressable Market. We plan to increase the size of our total addressable market. This effort will focus on new marketing and new product and/or service offerings for the purpose of widening the number of types of customers who might consider our products or services uniquely compelling.

	●	Broaden Product Offerings. Since its formation in 1993, our company has had a proud tradition of innovation in the field of simulation and virtual reality. We plan to release revolutionary new products and services as well as continue incremental improvements to existing product lines. In some cases, the company may enter a new market segment via the introduction of a new type of product or service.

	●	*Partners and Acquisitions.* We try to spend our time and funds wisely and not tackle tasks that can be done more efficiently with partners. For example, international distribution is often best accomplished through a local distributor or agent. We are also open to the potential of acquiring additional businesses or of being acquired ourselves, based on what is expected to be optimal for our long-term future and our 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 immersive 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.

	○	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° three-screen with video scenarios and marksmanship capabilities

○

The V-180™ is the higher standard for immersive 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 a single-screen firearms training simulator and has a portable version. Firearms training mode supports up to 4 individual firing lanes at one time. With hundreds of scenarios and skill drills, this training solution provides fast set-up and training on the go and in almost any location.

	○	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. Military Engagement Skills mode supplies realistic scenario training taken from real world events.

	○	The V-ST PRO™ is a robust, highly realistic single-screen firearms shooting and skills training simulator that can scale by connecting up to 5 V-ST PROs. Its flexibility supports a combination of marksmanship and use of force training capable of displaying 1 to 30 lanes of marksmanship featuring real world, accurate ballistics.

	●	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.

	●	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.

	●	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.

	●	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.

	●	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.

	●	VirTra has installed a volumetric video capture studio in order to create training scenarios that could work in either screen-based simulators or in 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.

	●	TASER©, OC spray and low-light training devices that interact with VirTra’s simulators for training.

	●	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.

Results of operations for the three and six months ended June 30, 2024, and June 30, 2023

Revenues. Net sales were $6,075,040 for the three months ended June 30, 2024, compared to $10,336,903 for the same period in 2023, a decrease of $4,261,863 or 41%. Net sales were $14,169,438 for the six months ended June 30, 2024, compared to $20,363,838 for the same period in 2023, a decrease of $6,194,400 or 30%. The decrease in revenue can be attributed to the smaller amount of bookings in Q1 due to the temporary funding measures taken by the federal government that delayed many of our contracts.

Cost of Sales. Cost of sales were $550,424 for the three months ended June 30, 2024, compared to $4,416,202 for the same period in 2023, a decrease of $3,865,778 or 88%. Cost of sales were $3,182,681 for the six months ended June 30, 2024, compared to $7,494,199 or a 58% decrease. The dollar decrease correlates with the lower revenues for the current quarter and a reclassification of COGS labor related to our development projects. This expense will be reflected in the income statement when we have the corresponding matching revenue. In addition, 40% of our revenue is derived from STEP and Service contracts that have limited COGS.

Gross Profit. Gross profit was $5,524,616 for the three months ended June 30, 2024, compared to $5,920,701 for the same period in 2023, a decrease of $396,085, or 7%. Gross profit was $10,986,757 for the six months ended June 30, 2024, compared to $12,869,639 for the same period in 2023, a decrease of $1,882,882, or 15%. The gross profit margin for the three months ended June 30, 2024 and 2023 was 91% and 57%, respectively. The gross profit margin for the six months ended June 30, 2024 and 2023 was 78% and 63%, respectively. This is solely driven by the decrease in Cost of Sales as stated above.

Operating Expenses. Net operating expense was $4,393,195 for the three months ended June 30, 2024, compared to $3,992,098 for the same period in 2023, an increase of $401,097, or 10%. Net operating expense was $8,456,997 for the six months ended June 30, 2024, compared to $7,469,731 for the same period in 2023, an increase of $987,266, or 13%. This increase comes from payroll and benefits as labor rates increase and as we bring on higher level staff to help build infrastructure for the future. Also, IT expenses increased to help prepare the organization for regulatory compliance and travel expenses increased as we seek to expand our footprint in our sales territories.

Operating Income. Operating income was $1,131,421 for the three months ended June 30, 2024, compared to $1,928,603 for the same period in 2023, a decrease of $797,182 or 41%. Operating income was $2,529,760 for the six months ended June 30, 2024, compared to $5,399,908 for the same period in 2023, a decrease of $2,870,148 or 53%.

Other Income. Other income net of other expense was $156,870 for the three months ended June 30, 2024, compared to net other income of $75,521 for the same period in 2023, an increase of $81,349, or 108%, primarily from an increase in interest and rental income year over year. Other income net of other expense was $486,141 for the six months ended June 30, 2024, compared to net other income of $191,935 for the same period in 2023, an increase of $294,206, or 153%, primarily from interest income and a gain on the sale of the older machine shop equipment.

Provision (Benefit) for Income Tax. Provision for income tax was $87,564 for the three months ended June 30, 2024, compared to $977,489 for the same period in 2023, a decrease of $889,925, or 91%. Provision for income tax was $599,000 for the six months ended June 30, 2024, compared to $1,618,834 for the same period in 2023, a decrease of $1,019,834, or 63%. The provision for income tax is estimated quarterly applying both federal and state tax rates.

Net Income. Net income was $1,200,727 for the three months ended June 30, 2024, compared to $1,026,635 for the same period in 2023, an increase of $174,092 or 17%. Net income was $2,416,901 for the six months ended June 30, 2024, compared to $3,973,009 for the same period in 2023, a decrease of $1,556,108 or 39%. The fluctuations in net income relate to each respective section discussed above.

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 the Three Months Ended											For the Six Months Ended
	June 30,			June 30,		Increase			%			June 30,			June 30,		Increase			%
	2024			2023		(Decrease)			Change			2024			2023		(Decrease)			Change

Net Income (Loss)	$	1,200,727		$	1,026,635	$	174,092			17	%	$	2,416,901		$	3,973,009	$	(1,556,108	)		-39	%
Adjustments:
Provision for income taxes		87,564			977,489		(889,925	)		-91	%		599,000			1,618,834		(1,019,834	)		-63	%
Depreciation and amortization		288,777			253,911		34,866			14	%		525,570			481,481		44,089			9	%
Interest (net)		(34,379	)		61,237		(95,616	)		-156	%		(88,957	)		109,420		(198,377	)		-181	%
EBITDA		1,542,689			2,319,272		(776,583	)		-33	%		3,452,514			6,182,744		(2,730,230	)		-44	%
Right of use amortization		69,418			244,581	$	(175,163	)		-72	%		199,493			366,355		(166,862	)		-46	%

Adjusted EBITDA	$	1,612,107		$	2,563,853	$	(951,746	)		-37	%	$	3,652,007		$	6,549,099	$	(2,897,092	)		-44	%

Liquidity and Capital Resources

Liquidity is an enterprise’s ability to generate enough cash to meet its needs for cash requirements. The Company had $18,411,634 and $18,849,842 of cash and cash equivalents as of June 30, 2024, and December 31, 2023, respectively. Working capital was $34,803,126 and $33,240,516 as of June 30, 2024, and December 31, 2023, respectively.

Net cash provided by operating activities was $1,268,224 and $313,470 for the six months ended June 30, 2024, and 2023, respectively. Net cash provided by operating activities resulted primarily from the net income for both periods and the decrease in AR as we have improved collection efforts.

Net cash used in investing activities was $1,608,798 for the six months ended June 30, 2024, compared to net cash used in investing activities of $345,640 for the comparable 2023 period. Investing activities in 2024 and 2023 consisted of purchases of property and equipment, specifically the new equipment in the machine shop.

Net cash used in financing activities was $97,634 for the six months ended June 30, 2024, compared to $108,453 used for the six months ended June 30, 2023. In both periods, cash was used primarily for principal payment of debt offset by the proceeds from the exercise of stock options.

Bookings and Backlog. The Company defines bookings as the total number of newly signed contracts and purchase orders received in a defined time period. The Company received bookings totaling $5.9 million for the six months ended June 30, 2024. The Company defines backlog as the accumulation of bookings that have not started or are uncompleted performance objectives and cannot be recognized as revenue until delivered in a future quarter. Backlog also includes 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, 2024, the Company’s backlog was $13.8 million. The breakout of this backlog includes $5.6 million in capital, $6 million in service and warranties, and $2.2 million in STEP contracts. Warranties/Service and STEP backlog calculated in this number is revenue that will be recognized on a straight-line basis over the next 7 years. In addition, there is $7 million in renewable STEP contracts over the next 5 years. Management estimates most of the new capital bookings received in the first six months of 2024, will be converted to revenue in 2024. Management estimates the conversion of backlog based on current contract delivery dates; however, contract terms and dates are subject to modification and are routinely changed at the request of the customer.

Cash Requirements

Our management believes that our current capital resources will be adequate to continue operating the 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 expand our product and services offered, to enhance our sales and marketing efforts and effectiveness, and to aggressively take advantage of 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, if and 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, 2023. Management believes there have been no changes in our critical accounting policies during the three months ended June 30, 2024.

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, 2024, 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 guarantee 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, 2024, 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, 2023, filed with the SEC on April 1, 2024.

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, 2024, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. However, during the quarter ended June 30, 2024, and continuing into 2024, we are implementing more formal review and documentation of workflow processes and increased 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.

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, 2023.

	(c)	None.

ITEM 6. EXHIBITS

Exhibit No.		Exhibit Description

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 Officer 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)

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 12, 2024	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)

Exhibit 31.1

CERTIFICATIONS

I, John F. Givens II, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarterly period ended June 30, 2024, of VirTra, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(b) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 12, 2024	/s/ John F. Givens II
	John F. Givens II
	Chief Executive Officer (principal executive officer)

Exhibit 31.2

CERTIFICATIONS

I, Alanna Boudreau, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarterly period ended June 30, 2024, of VirTra, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, considering the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 12, 2024	/s/ Alanna Boudreau
	Alanna Boudreau
	Chief Financial Officer (principal financial officer)

Exhibit 32.1

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report on Form 10-Q of VirTra, Inc. (the “Company”) for the quarter ended June 30, 2024 as filed with the Securities and Exchange Commission (the “Report”), we, John F. Givens II, Chief Executive Officer, and Alanna Boudreau, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of our knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: August 12, 2024	/s/ John F. Givens II
	John F. Givens II, Chief Executive Officer
	(principal executive officer)

Date: August 12, 2024	/s/ Alanna Boudreau
	Alanna Boudreau, Chief Financial Officer
	(principal financial officer)

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 07, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	001-38420
Entity Registrant Name	VIRTRA, INC.
Entity Central Index Key	0001085243
Entity Tax Identification Number	93-1207631
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	295 E. Corporate Place
Entity Address, City or Town	Chandler
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85225
City Area Code	(480)
Local Phone Number	968-1488
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	VTSI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,168,273

Condensed Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 18,411,634	$ 18,849,842
Accounts receivable, net	9,124,425	15,724,147
Inventory, net	13,470,715	12,404,880
Unbilled revenue	1,389,658	1,109,616
Prepaid expenses and other current assets	1,953,015	906,803
Total current assets	44,349,447	48,995,288
Long-term assets:
Property and equipment, net	16,575,177	15,487,012
Operating lease right-of-use asset, net	519,375	716,687
Intangible assets, net	563,096	567,540
Security deposits, long-term	35,691	35,691
Other assets, long-term	201,670	201,670
Deferred tax asset, net	3,780,112	3,630,154
Total long-term assets	21,675,121	20,638,754
Total assets	66,024,568	69,634,042
Current liabilities:
Accounts payable	1,013,483	2,282,427
Accrued compensation and related costs	1,920,367	2,221,416
Accrued expenses and other current liabilities	573,510	3,970,559
Note payable, current	230,457	226,355
Operating lease liability, short-term	189,098	317,840
Deferred revenue, short-term	5,619,406	6,736,175
Total current liabilities	9,546,321	15,754,772
Long-term liabilities:
Deferred revenue, long-term	3,022,676	3,012,206
Note payable, long-term	7,690,940	7,813,021
Operating lease liability, long-term	353,710	432,176
Total long-term liabilities	11,067,326	11,257,403
Total liabilities	20,613,647	27,012,175
Commitments and contingencies (See Note 9)
Stockholders’ equity:
Preferred stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding
Common stock value	1,110	1,109
Additional paid-in capital	32,329,917	31,957,765
Retained earnings	13,079,894	10,662,993
Total stockholders’ equity	45,410,921	42,621,867
Total liabilities and stockholders’ equity	66,024,568	69,634,042
Common Class A [Member]
Stockholders’ equity:
Common stock value
Common Class B [Member]
Stockholders’ equity:
Common stock value

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	2,500,000	2,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	11,112,230	11,107,230
Common stock, shares outstanding	11,112,230	11,107,230
Common Class A [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	2,500,000	2,500,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0
Common Class B [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	7,500,000	7,500,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues:
Total revenue	$ 6,075,040	$ 10,336,903	$ 14,169,438	$ 20,363,838
Cost of sales	550,424	4,416,202	3,182,681	7,494,199
Gross profit	5,524,616	5,920,701	10,986,757	12,869,639
Operating expenses:
General and administrative	3,537,910	3,280,344	6,908,332	5,991,681
Research and development	855,285	711,754	1,548,665	1,478,050
Net operating expense	4,393,195	3,992,098	8,456,997	7,469,731
Income (loss) from operations	1,131,421	1,928,603	2,529,760	5,399,908
Other income (expense):
Other income	156,870	208,599	486,141	392,240
Gain on forgiveness of note payable		(133,078)		(200,305)
Net other income (expense)	156,870	75,521	486,141	191,935
Income (Loss) before provision for income taxes	1,288,291	2,004,124	3,015,901	5,591,843
Provision (Benefit) for income taxes	87,564	977,489	599,000	1,618,834
Net income (loss)	$ 1,200,727	$ 1,026,635	$ 2,416,901	$ 3,973,009
Net income (loss) per common share:
Basic	$ 0.11	$ 0.09	$ 0.22	$ 0.36
Diluted	$ 0.11	$ 0.09	$ 0.22	$ 0.36
Weighted average shares outstanding:
Basic	11,063,366	10,924,714	10,885,965	10,921,033
Diluted	11,065,866	10,933,130	10,885,965	10,925,702
Net Sales [Member]
Revenues:
Total revenue	$ 6,075,040	$ 10,336,903	$ 14,169,438	$ 20,363,838

Condensed Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2022	$ 1,089	$ 31,420,395	$ 2,260,135	$ 33,681,619
Balance, shares at Dec. 31, 2022	10,900,759
Stock options exercised	$ 2	27,200		27,202
Balance, shares	10,000
Stock reserved for future services	$ 1	199,475		199,475
Net income			3,973,009	3,973,009
Stock options repurchased		(17,568)		(17,568)
Stock reserved for future services		74,999		75,000
Balance at Jun. 30, 2023	$ 1,092	31,704,501	6,233,144	37,938,737
Balance, shares at Jun. 30, 2023	10,926,774
Balance at Dec. 31, 2022	$ 1,089	31,420,395	2,260,135	33,681,619
Balance, shares at Dec. 31, 2022	10,900,759
Balance at Dec. 31, 2023	$ 1,109	31,957,765	10,662,993	42,621,867
Balance, shares at Dec. 31, 2023	11,107,230
Balance at Mar. 31, 2023	$ 1,109	31,536,182	5,206,508	36,743,781
Balance, shares at Mar. 31, 2023	10,924,274
Stock options exercised	$ 1	10,475		10,476
Balance, shares	2,500
Stock reserved for future services		175,412		175,412
Net income			1,026,635	1,026,635
Stock options repurchased		(17,568)		(17,568)
Balance at Jun. 30, 2023	$ 1,092	31,704,501	6,233,144	37,938,737
Balance, shares at Jun. 30, 2023	10,926,774
Balance at Jun. 30, 2024	$ 1,110	32,329,917	13,079,894	45,410,921
Balance, shares at Jun. 30, 2024	11,112,230
Balance at Dec. 31, 2023	$ 1,109	31,957,765	10,662,993	42,621,867
Balance, shares at Dec. 31, 2023	11,107,230
Balance at Mar. 31, 2024	$ 1,110	32,108,513	11,879,166	43,988,789
Balance, shares at Mar. 31, 2024	11,109,730
Balance at Dec. 31, 2023	$ 1,109	31,957,765	10,662,993	42,621,867
Balance, shares at Dec. 31, 2023	11,107,230
Stock options exercised	$ 1	20,149		20,150
Balance, shares	5,000
Stock reserved for future services		352,003		352,003
Net income			2,416,901	2,416,901
Balance at Jun. 30, 2024	$ 1,110	32,329,917	13,079,894	45,410,921
Balance, shares at Jun. 30, 2024	11,112,230
Balance at Mar. 31, 2024	$ 1,110	32,108,513	11,879,166	43,988,789
Balance, shares at Mar. 31, 2024	11,109,730
Stock options exercised		9,400		9,400
Balance, shares	2,500
Stock reserved for future services		212,004		212,004
Net income			1,200,727	1,200,727
Balance at Jun. 30, 2024	$ 1,110	$ 32,329,917	$ 13,079,894	$ 45,410,921
Balance, shares at Jun. 30, 2024	11,112,230

Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Dec. 31, 2023
Cash flows from operating activities:
Net income	$ 1,200,727	$ 1,026,635	$ 2,416,901	$ 3,973,009
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			525,077	479,889
Right of use amortization			197,312	244,580		$ 496,127
Employee stock compensation			352,005	199,475
Stock issued for service				75,000
Changes in operating assets and liabilities:
Accounts receivable, net			6,599,722	(14,928,520)
Inventory, net			(1,065,835)	(375,211)
Deferred taxes			(149,958)	(3,122,905)
Unbilled revenue			(280,044)	5,063,881
Prepaid expenses and other current assets			(1,046,213)	(15,281)
Other assets				173,999
Accounts payable and other accrued expenses			(4,967,236)	3,792,847
Operating lease right of use			(207,208)	(257,677)
Deferred revenue			(1,106,299)	5,010,384
Net cash provided by operating activities			1,268,224	313,470
Cash flows from investing activities:
Purchase of property and equipment			(1,608,798)	(345,640)
Net cash (used in) investing activities			(1,608,798)	(345,640)
Cash flows from financing activities:
Principal payments of debt			(117,785)	(118,087)
Stock Options Exercised			20,151	9,634
Repurchase of Stock based options
Net cash (used in) financing activities			(97,634)	(108,453)
Net (decrease) in cash			(438,208)	(140,623)
Cash and restricted cash, beginning of period			18,849,842	13,483,597	$ 13,342,974	13,483,597
Cash and restricted cash, end of period	$ 18,411,634	$ 13,342,974	18,411,634	13,342,974	$ 18,411,634	$ 18,849,842
Supplemental disclosure of cash flow information:
Interest paid			84,403	134,514
Income taxes paid (refunded)			$ 5,314,387

Organization and Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Organization and Significant Accounting Policies

Note 1. Organization and Significant Accounting Policies

Organization and Business Operations

Basis of Presentation

Use of Estimates

Revenue Recognition

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

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 expanded)

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.

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Disaggregation of Revenue

Schedule of Disaggregation of Revenue

	Commercial		Government		International		Total		Commercial		Government		International		Total
	Three Months Ended June 30
	2024								2023
	Commercial		Government		International		Total		Commercial		Government		International		Total
Simulators and accessories	$	136,571	$	1,927,438	$	477,837	$	2,541,846	$	73,099	$	7,365,343	$	355,630	$	7,794,072
Extended Service-type warranties		72,000		1,332,049		22,103		1,426,152		21,367		599,390		16,257		637,014
Customized software and content		-		17,127		82,500		99,627		4,800		277,555		82,855		365,210
Installation and training		4,196		157,691		6,650		168,537		19,702		154,280		208,141		382,123
Design & Prototyping		-		863,582		-		863,582		-		-		-		-
STEP		-		965,810		9,486		975,296		-		1,140,948		17,536		1,158,484
Total Revenue	$	212,767	$	5,263,697	$	598,576	$	6,075,040	$	118,968	$	9,537,516	$	680,419	$	10,336,903

	Commercial		Government		International		Total		Commercial		Government		International		Total
	Six Months Ended June 30
	2024								2023
	Commercial		Government		International		Total		Commercial		Government		International		Total
Simulators and accessories	$	212,351	$	5,738,695	$	1,756,095	$	7,707,141	$	562,908	$	12,114,712	$	3,507,795	$	16,185,415
Extended Service-type warranties		72,000		2,202,851		26,305		2,301,156		44,711		1,138,598		35,680		1,218,989
Customized software and content		-		282,533		82,500		365,033		24,300		284,751		65,994		375,045
Installation and training		4,196		394,030		11,814		410,040		40,264		403,834		261,829		705,927
Design & Prototyping		-		1,446,908		-		1,446,908		-		-		-		-
STEP		-		1,920,160		19,000		1,939,160		-		1,871,221		7,242		1,878,463
Total Revenue	$	288,547	$	11,985,177	$	1,895,714	$	14,169,438	$	672,183	$	15,813,115	$	3,878,540	$	20,363,838

Customer Deposits

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Warranty

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.

Historically, the Company primarily sells its products to U.S. federal, state and municipal agencies.

As of June 30^th, 2024 the Company had two suppliers that each accounted for 13% of the total accounts payable

For the three months ended June 30, 2024, and 2023, the Company had 2 customer that accounted for 14% and 12% of total revenue.

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Net Income per Common Share

Schedule of Earnings Per Share

	2024		2023
	Three Months Ended June 30
	2024		2023
Net Income (Loss)	$	1,200,727	$	1,026,635
Weighted average common stock outstanding		11,063,366		10,924,714
Incremental shares from stock options		2,500		8,416
Weighted average common stock outstanding, diluted		11,065,866		10,933,130

Net Income (Loss) per common share and common equivalent share
Basic	$	0.11	$	0.09
Diluted	$	0.11	$	0.09

	2024		2023
	Six Months Ended June 30
	2024		2023
Net Income (Loss)	$	2,416,901	$	3,973,009
Weighted average common stock outstanding		10,885,965		10,921,033
Incremental shares from stock options				4,669
Weighted average common stock outstanding, diluted		10,885,965		10,925,702

Net Income (Loss) per common share and common equivalent share
Basic	$	0.22	$	0.36
Diluted	$	0.22	$	0.36

Inventory

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Inventory

Note 2. Inventory

Inventory consisted of the following as of:

Schedule of Inventory

	June 30, 2024			December 31, 2023

Raw materials, WIP, finished goods and Materials being inspected	$	13,961,002		$	12,834,368
Reserve		(490,287	)		(429,488	)

Total Inventory	$	13,470,715		$	12,404,880

The Company regularly evaluates the useful life of its spare parts inventory but did not have any cause to reclassify any this quarter.

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Property and Equipment

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 3. Property and Equipment

Property and equipment consisted of the following as of:

Schedule of Property and Equipment

	June 30, 2024			December 31, 2023
Land	$	1,778,987		$	1,778,987
Building & Building Improvements		9,146,555			9,146,556
Computer equipment		1,282,359			1,236,989
Furniture and office equipment		314,006			292,208
Machinery and equipment		4,366,452			2,865,014
STEP equipment		2,391,683			2,241,291
Leasehold improvements		358,584			358,584
Construction in Progress		2,346,058			2,456,259

Total property and equipment		21,984,684			20,375,888
Less: Accumulated depreciation and amortization		(5,409,507	)		(4,888,876	)

Property and equipment, net	$	16,575,177		$	15,487,012

Depreciation expenses, including STEP depreciation, were $520,633 and $463,605 for the six months ended June 30, 2024, and 2023, respectively.

Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 4. Intangible Assets

Intangible asset consisted of the following as of:

Schedule of Intangible Asset

	June 30, 2024			December 31, 2023
Patents	$	160,000		$	160,000
Capitalized media content		451,244			451,244
Acquired lease intangible assets		83,963			83,963

Total intangible assets		695,207			695,207
Less accumulated amortization		(132,111	)		(127,667	)

Intangible assets, net	$	563,096		$	567,540

Amortization expenses were $4,936 and $15,792 for the six months ended June 30, 2024, and 2023, respectively.

Leases

6 Months Ended

Jun. 30, 2024

Leases

Leases

Note 5. Leases

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.

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

The balance sheet classification of lease assets and liabilities as of June 30, 2024 are as follows:

Balance Sheet Classification	June 30, 2024			December 31, 2023
Assets
Operating lease right-of-use assets, December 31, 2023	$	716,687		$	1,212,814
Amortization for the six months ended June 30		(197,312	)		(496,127	)
Total operating lease right-of-use asset, June 30, 2024	$	519,375		$	716,687
Liabilities
Current
Operating lease liability, short-term	$	189,098		$	317,840
Non-current
Operating lease liability, long-term		353,710			432,176
Total lease liabilities	$	542,808		$	750,016

NON-Cancelable operating leases


2024	$	94,388
2025		191,425
2026		196,311
2027		99,381

Total Lease Payments		581,505
Less: imputed interest		(38,697	)
Operating Lease Liability	$	542,808

Rent expenses for the six months ended June 30, 2024, and 2023, were $335,316 and $284,139, respectively.

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Accrued Expenses

6 Months Ended

Jun. 30, 2024

Payables and Accruals [Abstract]

Accrued Expenses

Note 6. Accrued Expenses

Accrued compensation and related costs consist of the following as of:

	June 30, 2024		December 31, 2023
Salaries and wages payable	$	428,823	$	457,565
Employee benefits payable		31,706		54,811
Accrued paid time off (PTO)		428,931		361,418
Profit sharing payable		1,030,907		1,347,622

Total accrued compensation and related costs	$	1,920,367	$	2,221,416

Accrued expenses and other current liabilities consisted of the following as of:

	June 30, 2024		December 31, 2023
Manufacturer’s warranties	$	295,000	$	354,000
Taxes payable		11,192		3,411,669
Miscellaneous payable		267,318		204,890

Total accrued expenses and other current liabilities	$	573,510	$	3,970,559

Note Payable

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Note Payable

Note 7. Note Payable

Schedule of Notes Payable

	June 30, 2024		December 31, 2023

Short-term liabilities
Note payable, principal	$	220,896	$	222,320
Accrued interest to date		9,562		4,035

Note Payable, short-term	$	230,458	$	226,355

Long-term liabilities
Note payable, principal	$	7,690,940	$	7,813,021

Note payable, long term	$	7,690,940	$	7,813,021

Related Party Transactions

6 Months Ended

Jun. 30, 2024

Related Party Transactions

Note 8. Related Party Transactions

During the six months ended June 30, 2024, the Company redeemed 10,000 previously awarded stock options nearing expiration, which resulted in $59,600 in additional compensation expense.

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 9. Commitments and Contingencies

Litigation

Restricted Stock Unit Grants

Profit Sharing

Stockholders’ Equity

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Stockholders’ Equity

Note 10. Stockholders’ Equity

Stock Repurchase

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Non-qualified Stock Options

Schedule of Non-Qualified Stock Options

	June 30,2024					December 31, 2023
	Number of Stock Options			Weighted Exercise Price		Number of Stock Options			Weighted Exercise Price
Options outstanding, beginning of year		15,000		$	4.03		45,000		$	4.26
Granted		-			-		-			-
Redeemed		(10,000	)		3.76		(15,000	)		5.09
Exercised		(5,000	)		3.76		(15,000	)		3.66
Expired / terminated		-			-		-			-
Options outstanding, end of period		-		$	-		15,000		$	4.03
Options exercisable, end of period		-		$	-		15,000		$	4.03

2017 Equity Incentive Plan

Common stock activity

Subsequent Events

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

Note 11. Subsequent Events

Effective July 12, 2024, Robert D. Ferris resigned as the Executive Chairman and a director of the Company.

Organization and Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Organization and Business Operations

Organization and Business Operations

Basis of Presentation

Basis of Presentation

Use of Estimates

Use of Estimates

Revenue Recognition

Revenue Recognition

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

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 expanded)

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.

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Disaggregation of Revenue

Disaggregation of Revenue

Schedule of Disaggregation of Revenue

	Commercial		Government		International		Total		Commercial		Government		International		Total
	Three Months Ended June 30
	2024								2023
	Commercial		Government		International		Total		Commercial		Government		International		Total
Simulators and accessories	$	136,571	$	1,927,438	$	477,837	$	2,541,846	$	73,099	$	7,365,343	$	355,630	$	7,794,072
Extended Service-type warranties		72,000		1,332,049		22,103		1,426,152		21,367		599,390		16,257		637,014
Customized software and content		-		17,127		82,500		99,627		4,800		277,555		82,855		365,210
Installation and training		4,196		157,691		6,650		168,537		19,702		154,280		208,141		382,123
Design & Prototyping		-		863,582		-		863,582		-		-		-		-
STEP		-		965,810		9,486		975,296		-		1,140,948		17,536		1,158,484
Total Revenue	$	212,767	$	5,263,697	$	598,576	$	6,075,040	$	118,968	$	9,537,516	$	680,419	$	10,336,903

	Commercial		Government		International		Total		Commercial		Government		International		Total
	Six Months Ended June 30
	2024								2023
	Commercial		Government		International		Total		Commercial		Government		International		Total
Simulators and accessories	$	212,351	$	5,738,695	$	1,756,095	$	7,707,141	$	562,908	$	12,114,712	$	3,507,795	$	16,185,415
Extended Service-type warranties		72,000		2,202,851		26,305		2,301,156		44,711		1,138,598		35,680		1,218,989
Customized software and content		-		282,533		82,500		365,033		24,300		284,751		65,994		375,045
Installation and training		4,196		394,030		11,814		410,040		40,264		403,834		261,829		705,927
Design & Prototyping		-		1,446,908		-		1,446,908		-		-		-		-
STEP		-		1,920,160		19,000		1,939,160		-		1,871,221		7,242		1,878,463
Total Revenue	$	288,547	$	11,985,177	$	1,895,714	$	14,169,438	$	672,183	$	15,813,115	$	3,878,540	$	20,363,838

Customer Deposits

Customer Deposits

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Warranty

Warranty

Concentration of Credit Risk and Major Customers and Suppliers

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.

Historically, the Company primarily sells its products to U.S. federal, state and municipal agencies.

As of June 30^th, 2024 the Company had two suppliers that each accounted for 13% of the total accounts payable

For the three months ended June 30, 2024, and 2023, the Company had 2 customer that accounted for 14% and 12% of total revenue.

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Net Income per Common Share

Net Income per Common Share

Schedule of Earnings Per Share

	2024		2023
	Three Months Ended June 30
	2024		2023
Net Income (Loss)	$	1,200,727	$	1,026,635
Weighted average common stock outstanding		11,063,366		10,924,714
Incremental shares from stock options		2,500		8,416
Weighted average common stock outstanding, diluted		11,065,866		10,933,130

Net Income (Loss) per common share and common equivalent share
Basic	$	0.11	$	0.09
Diluted	$	0.11	$	0.09

	2024		2023
	Six Months Ended June 30
	2024		2023
Net Income (Loss)	$	2,416,901	$	3,973,009
Weighted average common stock outstanding		10,885,965		10,921,033
Incremental shares from stock options				4,669
Weighted average common stock outstanding, diluted		10,885,965		10,925,702

Net Income (Loss) per common share and common equivalent share
Basic	$	0.22	$	0.36
Diluted	$	0.22	$	0.36

Organization and Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Schedule of Disaggregation of Revenue

	Commercial		Government		International		Total		Commercial		Government		International		Total
	Three Months Ended June 30
	2024								2023
	Commercial		Government		International		Total		Commercial		Government		International		Total
Simulators and accessories	$	136,571	$	1,927,438	$	477,837	$	2,541,846	$	73,099	$	7,365,343	$	355,630	$	7,794,072
Extended Service-type warranties		72,000		1,332,049		22,103		1,426,152		21,367		599,390		16,257		637,014
Customized software and content		-		17,127		82,500		99,627		4,800		277,555		82,855		365,210
Installation and training		4,196		157,691		6,650		168,537		19,702		154,280		208,141		382,123
Design & Prototyping		-		863,582		-		863,582		-		-		-		-
STEP		-		965,810		9,486		975,296		-		1,140,948		17,536		1,158,484
Total Revenue	$	212,767	$	5,263,697	$	598,576	$	6,075,040	$	118,968	$	9,537,516	$	680,419	$	10,336,903

	Commercial		Government		International		Total		Commercial		Government		International		Total
	Six Months Ended June 30
	2024								2023
	Commercial		Government		International		Total		Commercial		Government		International		Total
Simulators and accessories	$	212,351	$	5,738,695	$	1,756,095	$	7,707,141	$	562,908	$	12,114,712	$	3,507,795	$	16,185,415
Extended Service-type warranties		72,000		2,202,851		26,305		2,301,156		44,711		1,138,598		35,680		1,218,989
Customized software and content		-		282,533		82,500		365,033		24,300		284,751		65,994		375,045
Installation and training		4,196		394,030		11,814		410,040		40,264		403,834		261,829		705,927
Design & Prototyping		-		1,446,908		-		1,446,908		-		-		-		-
STEP		-		1,920,160		19,000		1,939,160		-		1,871,221		7,242		1,878,463
Total Revenue	$	288,547	$	11,985,177	$	1,895,714	$	14,169,438	$	672,183	$	15,813,115	$	3,878,540	$	20,363,838

Schedule of Earnings Per Share

	2024		2023
	Three Months Ended June 30
	2024		2023
Net Income (Loss)	$	1,200,727	$	1,026,635
Weighted average common stock outstanding		11,063,366		10,924,714
Incremental shares from stock options		2,500		8,416
Weighted average common stock outstanding, diluted		11,065,866		10,933,130

Net Income (Loss) per common share and common equivalent share
Basic	$	0.11	$	0.09
Diluted	$	0.11	$	0.09

	2024		2023
	Six Months Ended June 30
	2024		2023
Net Income (Loss)	$	2,416,901	$	3,973,009
Weighted average common stock outstanding		10,885,965		10,921,033
Incremental shares from stock options				4,669
Weighted average common stock outstanding, diluted		10,885,965		10,925,702

Net Income (Loss) per common share and common equivalent share
Basic	$	0.22	$	0.36
Diluted	$	0.22	$	0.36

Inventory (Tables)

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory consisted of the following as of:

Schedule of Inventory

	June 30, 2024			December 31, 2023

Raw materials, WIP, finished goods and Materials being inspected	$	13,961,002		$	12,834,368
Reserve		(490,287	)		(429,488	)

Total Inventory	$	13,470,715		$	12,404,880

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consisted of the following as of:

Schedule of Property and Equipment

	June 30, 2024			December 31, 2023
Land	$	1,778,987		$	1,778,987
Building & Building Improvements		9,146,555			9,146,556
Computer equipment		1,282,359			1,236,989
Furniture and office equipment		314,006			292,208
Machinery and equipment		4,366,452			2,865,014
STEP equipment		2,391,683			2,241,291
Leasehold improvements		358,584			358,584
Construction in Progress		2,346,058			2,456,259

Total property and equipment		21,984,684			20,375,888
Less: Accumulated depreciation and amortization		(5,409,507	)		(4,888,876	)

Property and equipment, net	$	16,575,177		$	15,487,012

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Asset

Intangible asset consisted of the following as of:

Schedule of Intangible Asset

	June 30, 2024			December 31, 2023
Patents	$	160,000		$	160,000
Capitalized media content		451,244			451,244
Acquired lease intangible assets		83,963			83,963

Total intangible assets		695,207			695,207
Less accumulated amortization		(132,111	)		(127,667	)

Intangible assets, net	$	563,096		$	567,540

Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases

Schedule of Balance Sheet Classification of Lease Assets and Liabilities

The balance sheet classification of lease assets and liabilities as of June 30, 2024 are as follows:

Balance Sheet Classification	June 30, 2024			December 31, 2023
Assets
Operating lease right-of-use assets, December 31, 2023	$	716,687		$	1,212,814
Amortization for the six months ended June 30		(197,312	)		(496,127	)
Total operating lease right-of-use asset, June 30, 2024	$	519,375		$	716,687
Liabilities
Current
Operating lease liability, short-term	$	189,098		$	317,840
Non-current
Operating lease liability, long-term		353,710			432,176
Total lease liabilities	$	542,808		$	750,016

Schedule of Future Minimum Lease Payments

NON-Cancelable operating leases


2024	$	94,388
2025		191,425
2026		196,311
2027		99,381

Total Lease Payments		581,505
Less: imputed interest		(38,697	)
Operating Lease Liability	$	542,808

Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2024

Payables and Accruals [Abstract]

Schedule of Accrued Compensation and Related Costs

Accrued compensation and related costs consist of the following as of:

	June 30, 2024		December 31, 2023
Salaries and wages payable	$	428,823	$	457,565
Employee benefits payable		31,706		54,811
Accrued paid time off (PTO)		428,931		361,418
Profit sharing payable		1,030,907		1,347,622

Total accrued compensation and related costs	$	1,920,367	$	2,221,416

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following as of:

	June 30, 2024		December 31, 2023
Manufacturer’s warranties	$	295,000	$	354,000
Taxes payable		11,192		3,411,669
Miscellaneous payable		267,318		204,890

Total accrued expenses and other current liabilities	$	573,510	$	3,970,559

Note Payable (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Schedule of Notes Payable

	June 30, 2024		December 31, 2023

Short-term liabilities
Note payable, principal	$	220,896	$	222,320
Accrued interest to date		9,562		4,035

Note Payable, short-term	$	230,458	$	226,355

Long-term liabilities
Note payable, principal	$	7,690,940	$	7,813,021

Note payable, long term	$	7,690,940	$	7,813,021

Stockholders’ Equity (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Schedule of Non-Qualified Stock Options

	June 30,2024					December 31, 2023
	Number of Stock Options			Weighted Exercise Price		Number of Stock Options			Weighted Exercise Price
Options outstanding, beginning of year		15,000		$	4.03		45,000		$	4.26
Granted		-			-		-			-
Redeemed		(10,000	)		3.76		(15,000	)		5.09
Exercised		(5,000	)		3.76		(15,000	)		3.66
Expired / terminated		-			-		-			-
Options outstanding, end of period		-		$	-		15,000		$	4.03
Options exercisable, end of period		-		$	-		15,000		$	4.03

Schedule of Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Simulators and accessories	$ 2,541,846	$ 7,794,072	$ 7,707,141	$ 16,185,415
Extended Service-type warranties	1,426,152	637,014	2,301,156	1,218,989
Customized software and content	99,627	365,210	365,033	375,045
Installation and training	168,537	382,123	410,040	705,927
Design & Prototyping	863,582		1,446,908
STEP	975,296	1,158,484	1,939,160	1,878,463
Total Revenue	6,075,040	10,336,903	14,169,438	20,363,838
Commercial [Member]
Simulators and accessories	136,571	73,099	212,351	562,908
Extended Service-type warranties	72,000	21,367	72,000	44,711
Customized software and content		4,800		24,300
Installation and training	4,196	19,702	4,196	40,264
Design & Prototyping
STEP
Total Revenue	212,767	118,968	288,547	672,183
Government [Member]
Simulators and accessories	1,927,438	7,365,343	5,738,695	12,114,712
Extended Service-type warranties	1,332,049	599,390	2,202,851	1,138,598
Customized software and content	17,127	277,555	282,533	284,751
Installation and training	157,691	154,280	394,030	403,834
Design & Prototyping	863,582		1,446,908
STEP	965,810	1,140,948	1,920,160	1,871,221
Total Revenue	5,263,697	9,537,516	11,985,177	15,813,115
Geographic Distribution, Foreign [Member]
Simulators and accessories	477,837	355,630	1,756,095	3,507,795
Extended Service-type warranties	22,103	16,257	26,305	35,680
Customized software and content	82,500	82,855	82,500	65,994
Installation and training	6,650	208,141	11,814	261,829
Design & Prototyping
STEP	9,486	17,536	19,000	7,242
Total Revenue	$ 598,576	$ 680,419	$ 1,895,714	$ 3,878,540

Schedule of Earnings Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
Schedule of Earnings Per Share (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Net Income (Loss)	$ 1,200,727	$ 1,026,635	$ 2,416,901	$ 3,973,009
Weighted average common stock outstanding	11,063,366	10,924,714	10,885,965	10,921,033
Incremental shares from stock options	2,500	8,416		4,669
Weighted average common stock outstanding, diluted	11,065,866	10,933,130	10,885,965	10,925,702
Basic	$ 0.11	$ 0.09	$ 0.22	$ 0.36
Diluted	$ 0.11	$ 0.09	$ 0.22	$ 0.36

Organization and Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Product Information [Line Items]
Revenue	$ 6,075,040	$ 10,336,903	$ 14,169,438	$ 20,363,838
Customer deposits, current	5,619,406		5,619,406		$ 6,736,175
Revenue recognized			2,301,156	1,218,989
FDIC insured amount	250,000		250,000
Uninsured cash and cash equivalents	17,911,634		17,911,634		18,349,842
Warranty [Member] \| One Year or Less [Member]
Product Information [Line Items]
Extended warranties	2,510,297		2,510,297		2,627,763
Warranty [Member] \| Longer Than One Year [Member]
Product Information [Line Items]
Extended warranties	2,930,779		2,930,779		2,974,710
Warranty [Member] \| One Year [Member]
Product Information [Line Items]
Extended warranties	295,000		295,000		354,000
Deferred Revenue [Member]
Product Information [Line Items]
Customer deposits, current	1,466,632		1,466,632		$ 4,047,269
Revenue from Contract with Customer Benchmark [Member] \| Customer Concentration Risk [Member] \| Government Customers [Member]
Product Information [Line Items]
Revenue	$ 5,263,697	$ 9,537,516	$ 11,985,177	$ 15,813,115
Concentration of credit risk percentage	87.00%	92.00%	85.00%	78.00%
Revenue from Contract with Customer Benchmark [Member] \| Customer Concentration Risk [Member] \| Commercial Customers [Member]
Product Information [Line Items]
Revenue	$ 212,767	$ 118,968	$ 288,547	$ 672,183
Concentration of credit risk percentage	3.00%	1.00%	2.00%	3.00%
Revenue from Contract with Customer Benchmark [Member] \| Customer Concentration Risk [Member] \| International Customers [Member]
Product Information [Line Items]
Revenue	$ 598,576	$ 680,419	$ 1,895,714	$ 3,878,540
Concentration of credit risk percentage	10.00%	7.00%	13.00%	19.00%
Revenue from Contract with Customer Benchmark [Member] \| Customer Concentration Risk [Member] \| STEP Revenue [Member]
Product Information [Line Items]
Revenue			$ 1,920,160	$ 1,871,221
Concentration of credit risk percentage			14.00%	9.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| One Customer [Member]
Product Information [Line Items]
Concentration of credit risk percentage			24.00%		28.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Two Customer [Member]
Product Information [Line Items]
Concentration of credit risk percentage			11.00%		14.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Three Customer [Member]
Product Information [Line Items]
Concentration of credit risk percentage			10.00%
Accounts Payable [Member] \| Supplier Concentration Risk [Member] \| Supplier One [Member]
Product Information [Line Items]
Concentration of credit risk percentage			13.00%
Accounts Payable [Member] \| Supplier Concentration Risk [Member] \| Supplier Two [Member]
Product Information [Line Items]
Concentration of credit risk percentage			13.00%
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| One Customer [Member]
Product Information [Line Items]
Concentration of credit risk percentage	14.00%	14.00%
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| Two Customer [Member]
Product Information [Line Items]
Concentration of credit risk percentage	12.00%	12.00%

Schedule of Inventory (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials, WIP, finished goods and Materials being inspected	$ 13,961,002	$ 12,834,368
Reserve	(490,287)	(429,488)
Total Inventory	$ 13,470,715	$ 12,404,880

Schedule of Property and Equipment (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 21,984,684	$ 20,375,888
Less: Accumulated depreciation and amortization	(5,409,507)	(4,888,876)
Property and equipment, net	16,575,177	15,487,012
Land [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,778,987	1,778,987
Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	9,146,555	9,146,556
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,282,359	1,236,989
Furniture And Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	314,006	292,208
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	4,366,452	2,865,014
STEP Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	2,391,683	2,241,291
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	358,584	358,584
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 2,346,058	$ 2,456,259

Property and Equipment (Details Narrative) - USD ($)	6 Months Ended
Property and Equipment (Details Narrative) - USD ($)	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation	$ 520,633	$ 463,605

Schedule of Intangible Asset (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 695,207	$ 695,207
Less accumulated amortization	(132,111)	(127,667)
Intangible assets, net	563,096	567,540
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	160,000	160,000
Capitalized Media Content [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	451,244	451,244
Acquired Lease Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 83,963	$ 83,963

Intangible Assets (Details Narrative) - USD ($)	6 Months Ended
Intangible Assets (Details Narrative) - USD ($)	Jun. 30, 2024	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible asset	$ 4,936	$ 15,792

Schedule of Balance Sheet Classification of Lease Assets and Liabilities (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Leases
Operating lease right-of-use assets, December 31, 2023	$ 716,687	$ 1,212,814	$ 1,212,814
Amortization for the six months ended June 30	(197,312)	$ (244,580)	(496,127)
Total operating lease right-of-use asset, June 30, 2024	519,375		716,687
Operating lease liability, short-term	189,098		317,840
Operating lease liability, long-term	353,710		432,176
Total lease liabilities	$ 542,808		$ 750,016

Schedule of Future Minimum Lease Payments (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Leases
2024	$ 94,388
2025	191,425
2026	196,311
2027	99,381
Total Lease Payments	581,505
Less: imputed interest	(38,697)
Operating Lease Liability	$ 542,808	$ 750,016

Leases (Details Narrative)			6 Months Ended
Leases (Details Narrative)	Jun. 01, 2022 USD ($) ft²	Jan. 01, 2019 USD ($)	Jun. 30, 2024 USD ($) ft²	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Apr. 30, 2019 ft²	Mar. 31, 2019 ft²
Real Estate Properties [Line Items]
Incremental in borrowing rate			4.50%
Right-of-use asset in exchange a operating lease liability	$ 840,855	$ 1,721,380
Deferred rent		46,523
Operating lease right of use asset		$ 1,674,857	$ 519,375		$ 716,687	$ 1,212,814
Rent expenses			$ 335,316	$ 284,139
Office and Warehouse Space [Member] \| Unaffiliated Third Party [Member]
Real Estate Properties [Line Items]
Rentable square feet \| ft²			37,729
Office and Industrial Space [Member] \| Unaffiliated Third Party [Member]
Real Estate Properties [Line Items]
Rentable square feet \| ft²	9,350						5,131	4,529

Schedule of Accrued Compensation and Related Costs (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Salaries and wages payable	$ 428,823	$ 457,565
Employee benefits payable	31,706	54,811
Accrued paid time off (PTO)	428,931	361,418
Profit sharing payable	1,030,907	1,347,622
Total accrued compensation and related costs	$ 1,920,367	$ 2,221,416

Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Manufacturer’s warranties	$ 295,000	$ 354,000
Taxes payable	11,192	3,411,669
Miscellaneous payable	267,318	204,890
Total accrued expenses and other current liabilities	$ 573,510	$ 3,970,559

Schedule of Notes Payable (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Short-Term Debt [Line Items]
Note Payable, short-term	$ 230,458	$ 226,355
Note payable, long term	7,690,940	7,813,021
Notes Payable [Member]
Short-Term Debt [Line Items]
Note payable, principal	7,690,940	7,813,021
Notes Payable [Member]
Short-Term Debt [Line Items]
Note payable, principal	220,896	222,320
Accrued interest to date	$ 9,562	$ 4,035

Note Payable (Details Narrative) - USD ($)		6 Months Ended
Note Payable (Details Narrative) - USD ($)	Aug. 25, 2021	Jun. 30, 2024	Jun. 30, 2023
Short-Term Debt [Line Items]
Payment to acquire assets		$ 1,608,798	$ 345,640
Arizona Bank & Trust [Member]
Short-Term Debt [Line Items]
Proceeds from bank loan	$ 8,600,000
Debt instrument interest rate	3.00%
Arizona Bank & Trust [Member] \| 199 Regular Monthly Payments [Member]
Short-Term Debt [Line Items]
Debt instrument periodic payment	$ 40,978
Arizona Bank & Trust [Member] \| One Irregular Payment [Member]
Short-Term Debt [Line Items]
Debt instrument periodic payment	$ 5,956,538
Debt instrument maturity date	Aug. 23, 2031
Property [Member]
Short-Term Debt [Line Items]
Payment to acquire assets	$ 10,800,000

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Shares par value	$ 0.0001			$ 0.0001		$ 0.0001
Exercise price of stock option	$ 9,400		$ 10,476	$ 20,150	$ 27,202
Shares redeemed				10,000
Shares redeemed, value				$ 59,600
Director [Member] \| Common Stock [Member]
Shares purchased award				5,000
Shares par value	$ 0.0001			$ 0.0001
Exercise price of stock option	$ 9,400	$ 10,750
Board Member and Executive Chairman [Member] \| Common Stock [Member]
Shares purchased award					10,000
Exercise price of stock option					$ 27,200
Shares redeemed					10,000
Shares redeemed, value					$ 21,150
Share price per share			$ 0.0001		$ 0.0001

Commitments and Contingencies (Details Narrative) - USD ($)					1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 01, 2023	Dec. 01, 2022	Apr. 11, 2022	Aug. 26, 2021	Jul. 31, 2024	Aug. 31, 2022	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Net income loss							$ 1,200,727	$ 1,026,635	$ 2,416,901	$ 3,973,009
Share based compensation									352,005	199,475
Operating expenses							$ 4,393,195	$ 3,992,098	8,456,997	7,469,731
Deferred Profit Sharing [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Operating expenses									313,500	$ 300,000
Chief Executive Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares awarded												29,630
Shares to pay the tax withholding liability												11,394
Executive Chairman [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares awarded												22,988
Shares to pay the tax withholding liability												9,142
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Net income loss												$ 4,564,459
Share based compensation									$ 352,003
Restricted Stock Units (RSUs) [Member] \| Chief Executive Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Net income loss											$ 6,500,000
Restricted Stock Units (RSUs) [Member] \| Chief Financial Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares granted		15,000
Restricted Stock Units (RSUs) [Member] \| Board of Directors Chairman [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares Forfeited	42,735
2017 Equity Incentive Plan [Member] \| Chief Operating Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock of restricted stock units forfeited						168,090
Number of shares Forfeited									10,543
2017 Equity Incentive Plan [Member] \| Chief Executive Officer [Member] \| Subsequent Event [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock of restricted stock units forfeited					40,229
2017 Equity Incentive Plan [Member] \| Executive Chairman [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares Forfeited									14,057
2017 Equity Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member] \| Co-Chief Executive Officer and Chief Operating Officer[Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares granted			288,889	392,223

Schedule of Non-Qualified Stock Options (Details) - Non Qualified Stock Option [Member] - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Offsetting Assets [Line Items]
Number of Stock Options, Options outstanding, beginning of year	15,000	45,000
Weighted Exercise Price, Option outstanding, beginning of year	$ 4.03	$ 4.26
Number of Stock Options, Granted
Weighted Exercise Price, Granted
Number of Stock Options, Redeemed	(10,000)	(15,000)
Weighted Exercise Price, Redeemed	$ 3.76	$ 5.09
Number of Stock Options, Exercised	(5,000)	(15,000)
Weighted Exercise Price, Exercised	$ 3.76	$ 3.66
Number of Stock Options, Expired / terminated
Weighted Exercise Price, Expired / terminated
Number of Stock Options, Options outstanding, End of the year		15,000
Weighted Exercise Price, Option outstanding end of quarter		$ 4.03
Number of Stock Options, Options exercisable, end of year		15,000
Weighted Exercise Price, Options exercisable, end of quarter		$ 4.03

Stockholders’ Equity (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
Stockholders’ Equity (Details Narrative) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jan. 09, 2019	Oct. 25, 2016
Class of Stock [Line Items]
Weighted average contractual term for options outstanding and exercisable			7 years	7 years
Options outstanding and exercisable	$ 0	$ 9,750	$ 0	$ 9,750
Proceeds from exercise options	9,400	16,726	20,150	23,724
Stock options exercise price	9,400	10,476	20,150	27,202
Common Stock [Member]
Class of Stock [Line Items]
Stock options exercise price		$ 1	$ 1	$ 2
Board Member [Member] \| Common Stock [Member]
Class of Stock [Line Items]
Number of shares issued	2,500
Stock options exercise, price	$ 3.76
Stock options exercise price	$ 9,400
2017 Equity Incentive Plan [Member] \| Executive Chairman [Member]
Class of Stock [Line Items]
Number of shares issued			14,057
2017 Equity Incentive Plan [Member] \| Executive Chairman [Member] \| Restricted Stock Units (RSUs) [Member]
Class of Stock [Line Items]
Number of restricted shares granted			224,133
Number of shares issued			17,753
2017 Equity Incentive Plan [Member] \| Chief Executive Officer [Member] \| Restricted Stock Units (RSUs) [Member]
Class of Stock [Line Items]
Number of restricted shares granted			288,889
Number of shares issued			158,976
2017 Equity Incentive Plan [Member] \| Chief Operating Officer [Member]
Class of Stock [Line Items]
Number of shares issued			10,543
Common Stock [Member] \| Maximum [Member]
Class of Stock [Line Items]
Stock repurchase value authorized					$ 1,000,000	$ 1,000,000