billpr, I sure hope you are sitting down. If you have a weak heart DO NOT read any farther.

I agree with you 100%!! Having Kitchen on the BOD is like putting the Fox in charge of the Hen House.

Do the share holders have to vote to confirm the BOD?

Doug

RonnieD, I would feel a lot better if they would sell product instead of shares.
Doug

TEEROY, thanks for the link. Doug eom

SirFelix, the way I play, golf only adds to my stress. LOL
If I ever get to Texas I would love to play around of golf.
Doug

With out knowing the details it is hard to say if VirTra lost sales. Were the systems that IES sold comparable to the IVR.
I wish I knew what was going on, what the company was bidding on and who was requesting bids, but the days of informative CEO letters to the Friends and Shareholders are over.
Doug

David, "frustrated" doesn't begin to describe the "longs" state of mind.
All that is in the past, VirTra has moved to a "new beginning".
We have all gone through a lot from the GameCom days.
I feel Kelly put together a company that developed a product with great potential. He accomplished things that others could not have done. Of course he made mistakes, and I am sure he would do some things differently if we could turn back the clock.
Like a coach that spends several years building a team but does not win the title, a new coach comes in makes a few changes and "bam", wins it all.
I think Major General Dalby will get it done. He is in the right place at the right time. Could Kelly have done it? I think so, but who knows.
I do give Kelly all the credit for getting VirTra to this point. He did a very good job with the resources he had.
I am looking forward to the next few months.
Best
Doug

Ceres, I copied the CEO letter from 6-26-06, I think the answer to your question is in it.
The bold and underline is mine.
Doug

Friends and Shareholders

Attached please find this morning’s press release:

It is with great pleasure that I correspond with you all today as the new chief executive officer of VirTra Systems. For those of you who may not be as familiar with me as others, I will give you a brief background.

In early 2005, I accepted the position as the Company’s first advisory board member. Quite simply, the reason I accepted that position was because I firmly believe in the Company’s product, the IVR® series of small arms training simulators, and the obvious potential for sustainment training for our troops fighting in Theaters around the globe.

I have been deployed in Iraq the past year with KBR, a subsidiary of Halliburton, as the Deputy Program Manager for Support. A great position, where I made significant contacts with numerous U.S. military and foreign procurement officers in the Middle East and Southwest Asia.

The majority of my time in Iraq was consumed with supporting functional areas, and due to a potential for conflict of interest, precluded me from soliciting on behalf of VirTra Systems while associated with Halliburton. Naturally, now that I will no longer have that responsibility, I can focus full-time on growing VirTra Systems’ IVR immersive small arms training simulator business. I intend to be a full-time, working chief executive officer.

The military, historically, has been slow to adopt new training methodology. However, once you have proven that your technology is relevant to the military’s immediate need, it can turn a small company into a strategic defense contractor. It is my firm belief that VirTra Systems has the right products for training our troops in mounted and dismounted urban, “fourth-generation” warfare. Actually, the Company has done a remarkable job with initial market penetration considering its limited resources, and given the military’s recent preoccupation with the Global War on Terror. I am committed to making any and all adjustments to our Company’s business plan that would bring value to the shareholders and meet our customer’s needs.

Most are likely unaware that, in addition to my tenure in the military, I also have significant background in manufacturing management. In light of the pending acquisition, the Board and I felt that my skills and experience were congruent with the current business model as well as the pending company acquisitions.

My goal is to make both VirTra Systems’ small arms training products and our acquisition target’s contract-manufacturing capabilities, indispensable to the U.S. military, as well as personal security detachments and law enforcement organizations worldwide. There is no magical methodology to what I intend to accomplish. I deal with one person at a time, one-on-one, many whom I have known for years. Moreover, and this I fervently believe, anyone who has the budget and is in the market for a training simulator, after trying our product and understanding its value, will become our customer.

As I am currently completing my last ‘tour-of-duty’ in Iraq with KBR, I am writing to you from Baghdad. Although I have enjoyed my mission here, and am proud of our accomplishments, I very much look forward to again living stateside, leading a more normal life with my family, working regular, full-time hours for VTSI, and ducking fewer incoming mortar rounds. Although I will not officially start until 01 July 2006, I have already begun making contacts and expect steady progress acquiring new business both here and globally. In addition to our present product channels, we have been formulating plans for important new profit centers for the new, larger VirTra Systems. I look forward to sharing with you these plans and others, in upcoming correspondence.

There has been much discussion between myself and the Board concerning our current status and how to best move ahead following our five-point strategy. As I build my team to accomplish our goals, it has been decided that Andrew Wells, whom I have been working closely with and is responsible for my initial and current involvement in VTSI, will soon step down as Director of VirTra Systems. He can better serve the Company in his investment banking capacity fostering increased institutional investment for the Company. Mr. Wells has served VirTra Systems with distinct honor. Therefore, it is with great reluctance that we accept his resignation. However, I am equally excited to have him working on our behalf, gaining new investment into our organization – one of the many areas I intend to aggressively address.

David Rogers will also step down as chief financial officer. He has done an outstanding job since taking the position, and we would have liked to see him stay on also. David will graciously continue to help during the transition and ensure timely filings and transfer of information.

Additionally, I have plans to help strengthen our Board, and look forward to soon discussing creation of our own experienced leadership team for VirTra Systems.

I have been apprised by the current Board that several impediments have recently been overcome with regard to our pending acquisition. I am pleased to report that we expect significant progress, if not completion of the initial phase, within the next sixty (60) days. We have much work to do, but this Company will successfully grow and grow well, because we have the right products at the right time. I look forward to helping with the growth of the Company and making a viable business for our faithful employees and loyal shareholders.

These are simply my personal comments and should not be relief upon in your investment decisions. I strongly urge you to conduct your own due diligence with regard to any investment in VirTra Systems. I respectfully refer you to VirTra Systems’ filings with the United States Securities and Exchange Commission.

--Major General Perry V. Dalby (AUS-Retired), VirTra Systems’ CEO

RonnieD, reread the CEO letter from January 05, when Major General Dalby joined VirTra. I expect him to hit the ground running, and as CEO he will get things done. You do not become a 2 star General by sitting around waiting for the phone to ring..
Doug

VirTra Systems Names Army Major General Perry Dalby to Advisory Board
January 12, 2005
Friends and Shareholders:

Attached please find this morning's press release announcing Major General Perry V. Dalby (retired) as the initial member of the company's newly-formed advisory board.

We are absolutely delighted that General Dalby has agreed to serve on the company's advisory board. We are, sincerely, humbled and honored that someone of General Dalby's caliber decided to publicly align his incredible reputation and good name with us. Moreover, General Dalby plans to be much more active than you might otherwise think in assisting in VirTra Systems' evolution into the premier military simulation company.

Make no mistake, the addition of General Dalby to VirTra Systems is a major accomplishment (no pun intended) for our emerging company. Upon his May, 2004, retirement from the United States Army, we can only imagine how many companies have approached General Dalby for the same purpose.

So, why did General Dalby choose VirTra Systems? I don't presume to speak for the General, but I know what he told us as we continued our discussions. He is very familiar with our competitors in this arena, and, quite simply, he believes in our brand-new IVR 4G's capabilities -- its ability to better train our military personnel, making them better prepared for their missions, thus saving American lives -- and he approves of our deliberate efforts and business plan to aggressively gain market share in the military training/simulation industry.

What does General Dalby bring to us? It's obvious: 1) he has been an exemplary, highly-decorated, very high-level military officer throughout his impressive 37-year career, 2) he has invaluable experience in combat training command, including simulation, and 3) he remains uniformly very well-regarded within the military decision-making community.

General Dalby was hand-selected to supervise national battle training for troops headed to Iraq and Afghanistan by General Peter J. Schoomaker. As you may know, General Schoomaker now serves as United States Army Chief of Staff, and has vowed to exponentially increase the speed by which short-shelf-life electronic training and simulation equipment gets to the Army's personnel.

Please note, among other significant awards, that General Dalby received the Global War on Terrorism Service Medal, and retired as the Commander, 75th Division (Training Support). Even I can connect those dots, and I simply cannot find adequate words to describe the benefits to VirTra Systems emanating from our association with General Dalby.

I trust you concur that 2005 is shaping up to be a banner year for the company, and we felt the time was right for the formation of our advisory board. General Dalby certainly brings our company credibility and visibility within the U.S military, helping position our company to build on our 2004 "rising star" status in the military simulation industry.

By the way, we don't intend for the General to remain lonely on our advisory board for long.

You probably can determine that the holidays is a notoriously slow time within this market, but now our customers are back at work in earnest.

These are simply my personal comments, and should not be relied upon in your investment decisions. I strongly urge you to conduct your own due diligence with regard to any investment in VirTra Systems. I respectfully refer you to VirTra Systems' filings with the United States Securities and Exchange Commission.

--L. Kelly Jones, VirTra Systems CEO

Markets are open today, but I think it will be a quiet day,
So I'm going to play golf.
I think things will begin to heat up next week.
Doug

I find some very interesting items in the F&S letter.
The bold is mine.
Doug


Friends and Shareholders:

Attached please find this morning's press release announcing our most recent sale to the United States Air Force.

We are quite pleased that the Air Force continues to upgrade and expand its use of our IVR® immersive small arms training simulators.



The very first domestic IVR HD-300™ simulator we sold back in 2004, is now receiving an upgrade to transform it into a full IVR 4G-300™. The main difference between the IVR 4G version simulator and its counterpart, the IVR HD, is the ‘4G's ability to simultaneously track six trainees, independently and uniquely, while using fully automatic weapons firing at rates of more than 700-rounds a minute. That amount of firepower is typical of today's infantry squads, and elite tactical teams can carry even more. So, it is natural that military customers prefer the ‘4G's more robust functionality.

The sale also included a healthy order of more wireless/tetherless training-conversion recoil weapon kits. Also included in the order, is our new line of tetherless handgun conversion kits. Added to our wireless/tetherless long-rifle offerings, our new line of handgun conversion kits gives our IVR systems maximum versatility for our customers, and are a vital new product addition. Currently, we are expanding our weapon offerings to include most every small arm used by our customers, including heavy machine guns and grenade launchers. This ensures the utility of our systems, now, and into the future, for small arms training applications.

If you can't meet customer expectations, you fail. Our development team in Phoenix has done a remarkable job anticipating customer needs and developing innovative products; thus, keeping our product offerings congruent with the market's expectations and needs. In addition, we continue our efforts at product development and enhancement. I look forward to discussing a new feature that we intend to launch in the near future, which I believe will become standard in all our virtual reality and simulation market channels.

By now, you may have seen our product name, IVR, sporting its new ® registered trademark symbol. VirTra Systems was recently granted this trademark protection by the United States Patent and Trademark Office, and you can expect to see this used exclusively in upcoming company correspondence and sales collateral.

I have just returned to the Middle East to wrap things up here, and will soon head back home to assume my duties with VirTra Systems as chief executive officer. I believe foremost on everyone's mind, is the state of the merger and its timetable. As these details are currently being determined, upon completion, I intend to quickly up-date everyone on the merger, including its timetables and impact on our future. These are quite exciting times for the company, and I look forward to a full dialogue with you all.

These are simply my personal comments and should not be relief upon in your investment decisions. I strongly urge you to conduct your own due diligence with regard to any investment in VirTra Systems. I respectfully refer you to VirTra Systems' filings with the United States Securities and Exchange Commission.

--Major General Perry V. Dalby (AUS-Retired), VirTra Systems' CEO

Glossy Photo, you joined the IHub today, just to bash VTSI.
You must be afraid or VirTra.
Doug

Cee-It,I am hoping that they can follow very quickly with a SALES PR, we know that there were several things in the pipeline. IMO a sales PR will give strong support to todays increase.
Doug

slow_feet, welcome to the VirTra board, best of luck to you.
Doug

I think Gen. Dalby is a good choice to head the company. I reread his resume from the VirTra site, it was posted when he joined the company advisory board.

VirTra Systems' advisory board, formed in January 2005, assists management by providing expert direction in a wide array of disciplines, including corporate finance, sales and marketing strategies, training curricula, and product development.


Major General Perry V. Dalby (U.S. Army, retired)
Retiring from the Army as Commander of the 75th Division (Training Support), Major General Perry V. Dalby currently assists in the development of competitive military training/simulation products congruent with current missions and military situational awareness/firearms training objectives.

General Dalby obtained his bachelor of science degree from Oklahoma Christian University in 1966, and his masters of science degree from the University of Southern California in 1978. General Dalby entered military service in November 1966, attended Officer Candidate School, and was commissioned on October 5, 1967. After his initial assignment with the 52nd Infantry in the 1st Armored Division, General Dalby attended flight school and was assigned to duty with the First Cavalry Division in the Republic of Vietnam, where he was a gunship pilot and combat platoon commander. In 1975, General Dalby was assigned to the 17th Aviation Group in Korea where he served as the executive officer for the 55th Aviation Detachment. Upon his return, he was assigned as an infantry company commander with the 2nd Armored Division. General Dalby left active military duty in July 1977, and remained in the Individual Ready Reserve force until June 1983, when he was assigned to the 75th Maneuver Area Command. He subsequently served as the commander of the Battle Simulation Center, combat arms branch chief, and as the assistant deputy commander for the 75th Division (exercise). In December of 2000, General Dalby assumed command of the 75th Division (Training Support) and subsequently mobilized the division in support of the global war on terrorism in January, 2003. Major General Dalby remained on active duty until his retirement in May of 2004.

Doug

Jbull, Thanks for the info, I read through the stories but could not find any mention of VirTra, but that header is deffinatly VTSI's IVR.
If VirTra is going to put out any news in June they will have to do it early in the week otherwise it will get lost in the long 4th of July weekend coming up. I would think to have any effect any news should come out Monday, Tuesday at the latest.
If we don't see any news this week then I predict news by August of '09.
Doug

Barnabus2, that is good news for the IES people. Yesterday they put out this news.

June 19 (Reuters) - Arotech Corp. (ARTX.O: Quote, Profile, Research) on Monday said its stockholders have approved a one-for-fourteen reverse split of the company's common stock.

The stock split will take effect on June 21, the company said in a statement.


Doug

What the **** makes you think my post was positive?
Or don't you understand sarcasm?
Doug

8-K filed today.
"On June 2, 2006 our auditors, Ham, Langston & Brezina, LLP, resigned."

Maybe VirTra will now move forward with the merger. Ya think?

Doug

Friends and Shareholders:

I have attached VirTra Systems' 2006 first quarter 10-Q report as filed Thursday afternoon with the Securities and Exchange Commission, as well as our press release addressing the filing. I respectfully suggest your careful examination and review of all our public filings.



It is gratifying that our operations showed much improved revenues for the first quarter compared to last year. Of course, the real key is increasing revenues across-the-board into the future, and that will take considerable effort and focus.



Although we have much work ahead to produce sustained growth within VirTra Systems, I am encouraged by this progress, and firmly believe that we are headed on the right path to success. I look forward to further communications with you all as various initiatives of our five-point strategy progress.

The first quarter of 2006 was extremely busy. We executed the definitive merger agreement to acquire Altatron EMS and Dynalyst through Virtra Merger Corporation, multiple IVR(TM) firearms training simulator installations were completed from the U.S. to Mexico, we named our new chief financial officer and director of training, expanded our training simulator product's reach into Asia, and began development of a speech therapy simulator in conjunction with Case Western Reserve University.



We continue to grow.



As we recently announced, we will continue with our plan to acquire Altatron EMS and Dynalyst. Although the process has been slower than expected, we believe the diversification in revenue streams afforded by these businesses is just the complementary mix needed to help grow our VR/simulation business and help attract larger contracts. The plan to create a larger and more resilient VirTra Systems is moving forward.



Several firearms training simulator installations occurred during the first quarter. We installed systems for Mexico, Buckley Air Force Base in Colorado, Duluth Police department in Georgia, and delivered an IVR(TM) system to the Army Research Laboratory at Aberdeen Proving Grounds in Maryland, which has been subsequently installed as well. As our installation base grows, exposure of our simulation technology is occurring to a greater number of end-users within military and international circles, and word-of-mouth advertising is growing.



The addition of David Rogers, our chief financial officer, and Jack Nickel, our director of training, were key hires that added much needed skill and "horsepower" to our operations. David Rogers' hire has provided us with a highly experienced finance officer, in-house, and after nearly 30-years of experience, is a well-seasoned professional adding a remarkable depth of know-how to our financial management.



In the Phoenix office, Jack Nickel, our director of training, has come to us right out of the Air Force with more than 24-years of military experience as a video production specialist. Having been attached to the 1st Combat Camera Squadron, filming actual live combat as it unfolds, Jack's expertise, and breath and depth of experience, adds significant credibility to our firearms training scenario production. He is currently on-site here in Phoenix and developing our next-generation scenarios.



Our announced sales to Malaysia, and our marketing activities, initiated by Michael Kitchen, our executive vice-president, has begun to "bear fruit" as other customers are requesting further demonstration in advance of purchase. Part of our plan is providing Michael Kitchen with increased resources needed to more aggressively grow sales. I expect Michael to soon revisit Southeast Asia, and secure further business in that part of the world. One thing is certain, when customers try our system, and have the funding, they virtually always become our customer. I look forward to sharing with you key initiatives for our product marketing refocus in the near future.



Of particular significance, is our IVR technology's movement beyond firearms training, and into speech therapy and student training, with our Case Western Reserve University speech therapy simulator project. Case is pioneering research using immersive scenarios to help recreate the stressful day-to-day activities for those with speech pathology, things you and I take for granted, such as ordering food at a drive-through window. Therapists will facilitate treatment by exposing patients to these immersive situations and use the experiences as vital elements during treatment. Case also intends to use this technology to train student clinicians in diagnosis and treatment.



The larger picture for the IVR technology we created for Case, is more than just a simulator for speech therapy; rather, we developed a new "open-source" platform that can be used for a multitude of training and experiential applications. This is quite significant as we can quickly develop immersive virtual reality(TM) solutions for new applications and markets, when such products appear to possess the potential for sustainable and profitable revenue streams.



Although we will continue to communicate with our shareholders as we have in the past, we believe creating shareholder value is the best way to express our commitment to shareholders. Currently, we are working on several initiatives designed to "jumpstart" our strategic plan. We expect to move forward at an aggressive pace on improving VirTra, and, of course, will announce specific items as they come to fruition.



These are simply my personal comments, and should not be relied upon in your investment decisions. I strongly urge you to conduct your own due diligence with regard to any investment in VirTra Systems. I respectfully refer you to VirTra Systems' filings with the United States Securities and Exchange Commission.

--Bob Ferris, VirTra Systems' Interim CEO

ByloCellhi, You said "The questions are difficult to answer without more information from the company..." DUH!!!!
Doug

ByloCellhi, as usual, you did not answer the questions that I asked you.
Your MO is to avoid direct questions and turn everything into a negative.
For some reason you seem unable to let anyone have an opinion that is not in line with your downer attitude.
Your outlook leads me to believe you were born breach!
Doug

ByloCellhi, do you then find this silence from the company refreshing? Are you encouraged by the lack of company dialog?
Doug

KP, I agree that all efforts should be focused on the business.
However I, for one, sure do miss the "Friends and Shareholder"
letters. Kelly was always able to add a few "nuggets" of information.
Doug

billpr, some people, not you of course, like to see the "official" notice, so I posted the link.
Sorry if this bothers you.
Doug

symbol will change back on Tues. Doug
http://www.otcbb.com/asp/dailylist_search.asp?DirectSymbol=VTSIE&OTCBB=True

It could take a few days for it to get back to VTSI, the Holiday weekend won't help speed thing up.
Doug

The 10Q is filied. Doug EOM

If I said what I was thinking
I would have to delete the post.
Doug

All Security Symbols appended with an "E" will be ineligible for quotation and subject to removal from the OTCBB in 30 calendar days (60 days if denoted with a plus sign "+") if the NASD does not receive information indicating that the company is current in its public reporting obligations pursuant to Rule 6530.
** indicates NSCC Eligible Security (National Securities Clearing Corporation)

clarathevoyant, welcome to the board. Hope to hear more from you.
Interesting first post.
Doug

This is going to be fun.
Doug

Welcome to the I-Hub RoseBowl.
Doug

Not so! My displeasure is long standing. I used to go to Kelly with my thoughts. I don't like to use a public forum to air complaints. However,when the BOD has a new business plan that the CEO is so strongly against he resigns, and then they
put out a PR that, for the most part, is same old stuff, well I do have a breaking point.
Doug

I wonder when the new management's plan to build shareholder value will begin?
Doug

The CEO changed BUT the CFO is the same. I wonder what the record is for longest delay in audits.
Doug

Unless the SEC has changed the rules, the filing deadline is next Monday, the 15th. BUT you already knew that.
Doug

O T, Dennis what are you doing posting during a Pistons game. LOL.
Doug

RnDman, please don't go back to being a lurker. We have enjoyed your insights. Disgruntled or not you have some valid points.
Doug

ByloCellhi, Kelly is no longer with the company so what does it matter?
The better question would be what is (was) the rank and files opinion of Bob and his brother-in-law Andy?
Doug

I think Kelly did a great job while guiding VirTra. Most will never know how close to overwhelming success he came. I can only hope the new CEO can benefit from all the ground work that has been done.
I wish nothing but the best for Kelly in his future endeavors.
A special Thanks to Kimberly for all her support over the years.
Doug

I haven't gone anywhere, I just have a life other than this board. I can't believe anybody thought the 10-K would be any different than it is.
However, that is past history. What does the future hold for VirTra, I don't know, nor does anyone, Kelly included.
I still feel there is great potential but the military budgets for training have to let loose. The merger will help with cash flow, but at what cost we don't as yet know. When we shareholders receive our proxy statements then we can talk about that.
Until then we wait, and maybe buy a little more. LOL
Doug