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Bill
My guess the reason the alliance took so long to complete because it VTSI's priority was not necessarily Sanmina - SCI's.
The PR Heading : VirTra Systems Enters Manufacturing Agreement with Leading Electronics Manufacturing Services Provider
I wonder why they did not use Samina - SCI in the PR header - would catch some eyes IMO
It's certainly a very nice player should VTSI get some PO's
FYI - From the MarketByte Site
The Trustee of the MarketByte LLC Defined Benefit and Trust (“the MarketByte Pension Plan”) has invested approximately $140,0000 in Dutchess Private Equities II LP (“the Dutchess Limited Partnership”), a limited partnership in which the MarketByte Pension Plan is a limited partner. No one associated with the MarketByte Pension Plan has any knowledge, information, or control as to any past, present, or future investment activities of the Dutchess Limited Partnership. The Dutchess Limited Partnership is one of two hedge funds managed by Dutchess Advisors. Dutchess Advisors periodically refers companies to MarketByte LLC for possible coverage by one of the MarketByte LLC publications, which publications include The OTCJournal.com Newsletter. Dutchess Advisors may or may not own shares in the companies that it so refers to MarketByte. MarketByte has no information (outside of information readily accessible to the general public such as SEC filings) as to whether Dutchess Advisors owns any shares in the companies that it refers to MarketByte LLC. The above relationships should be viewed as a potential and/or actual conflict of interest by shareholders and prospective shareholders of MarketByte LLC client companies.
OTC Journal
http://www.otcjournal.com/archive/listserv/20050823-1.html
MarketByte LLC has been paid a fee of $25,000 in cash and one million newly issued restricted shares by Virtra Systems for coverage of the company. Under Rule 144, all of the aforementioned one million shares are now eligible to become free trading.
For some reason the poster always leaves this out - lol
Paul
Welcome back - where you been man?
Vitriol???? I hear that everyday...
This was my surprise: "The thing I am very surprised is when these type of arrangements are announced the link to the other company's symbol (Sanmina-SCI) is on the PR and it is on both sites. Not in this case for some reason???"
And I asked about this as well: "Does anyone know the revenue share arrangement?"
Spill the beans - yeah I do it all the time too..
Sounds like a buy opportunity and time to load up the boat!
David
The thing I am very surprised is when these type of arrangements are announced the link to the other company's symbol (Sanmina-SCI) is on the PR and it is on both sites. Not in this case for some reason???
In addition the wording in the PR was very legalease "The companies recently executed a memorandum of understanding to form an exclusive business relationship, under which Sanmina-SCI would provide manufacturability analysis, bid proposal and marketing support, and manufacturing services for the production of VirTra Systems' advanced military training simulators."
Memorandum of understanding?
Does anyone know the revenue share arrangement?
In the con call 6/30 L Kelly thought this would be announced in a few days if I recall - announced 8/23
Take care
Hound
What are you smoking?
The announcement: "a 10-year time and materials contract for weapon systems simulation support to the U.S. Air Force Research Laboratory Munitions Directorate (AFRL/MN) at Eglin Air Force Base, Florida. The contract is for a base period through July 2006, and with nine one-year options, has a potential value of $49.7 million if all options are exercised."
You said: "You guys would be very very very critical if VTSI made this announcement."
Everyone would be doing cartwheels - if the Air Force is happy with the work they will contintually renew the contract - this is great cash cow business.
Bill
The facts are the facts - slow is one thing but this is like molasses going uphill in a Maine winter...
Peace
Mirox
You said: "VTSI numbers hold up pretty well"
ARTX - revenue 2004 $50M
Shares out 80M
VTSI - revenue 2004 $1M
Shares out 62M
Huh?
I never said ARTX was a great company but they are getting the business, they have a varied product line and as a purchasing agent who would you award a contract to if the products are similar or even if VTSI's is slightly better. VTSI's financials are awful and have gotten worse since the great leaseholder conversion in 12/04. As many have said financials don't matter in OTCBB land well the market begs to differ...
The Difference
Arotech
The management team
http://www.arotech.com/compro/corpofficers.html
Company Website
http://www.arotech.com/
http://www.arotech.com/compro/2004factsheet.pdf
Just read the 4 page fact sheet - I guess this is what you envisioned VTSI to be unfortunately a lawyer with little or no financial background, vision, or no one around him with that expertise have not gotten the job done.
The $250K revenue for the quarter was pathetic - looks bleak...
The CEO is on record Q3 will be operationally profitable - time will tell...
Looks like the cheerleaders have gone into hiding.
All You Need to Know
During the six months ended June 30, 2005 and 2004, the Company has defaulted on its notes payable and obligations under product financing arrangements, has continued to accumulate payables to its vendors and has experienced negative financial results as follows:
Net loss for the six months ended June 30, 2005 $(1,085,740)
Negative cash flows from operations $(844,341 )
Negative working capital $(5,021,514 )
Accumulated deficit $(12,839,556 )
Stockholders’ deficit $(3,871,853 )
Ceres
Yesterday:
I changed my mind. This stock is f**ked. It seems that the CC (over one month ago) was just a load of B.S. I don't care who you are -- all of Kelly's optimistic statements (I don't need to list them all) and what happens???....$500k equity line draw from Dutchess b/c VirTra has been duped by competition and missed out on Supplemental Budget dollars/orders for simulators. To say that Kelly Jones is simply optimistic is ridiculous. He is either a bold faced liar or a naive moron. So are his shareowners, including me, who swallow his b.s. every time he opens his mouth. If Kelly is such a good communicator, how come he doesn't let shareholders in on why practically all projections for July have been inaccurate? The fact is, Kelly is not a good communicator. He keeps everyone in the dark about what really is going on. Has he ever admitted to losing a contract or being unrealistic in his projections? No. He passes the buck whenever anything does not come to fruition. (EXAMPLE: How long did he use the supplemental budget excuse for the delay on "promised" system sales?) Every explanation is "VirTra has not LOST any contracts" or "Delays are common for these orders". Let me say one thing, Kelly Jones and VirTra's days are numbered. Insolvency and/or the equity death spiral is soon to take hold. Good luck longs...
Today:
I want to apologise for my rant yesterday. Please understand that my views at any time are not how I feel on the aggregate --but merely thoughts which are on my mind. I simply HATE the thought of being misled or patronized in business. I have high hopes for Kelly Jones and VirTra Systems. I still hold my investment in VTSI, and plan to keep it for the long term.
What a difference a day makes...time will tell - your original thoughts are probably what most think but obviously do not want to criticize their investment. The natives are restless with bacically no news since the 6/30 con call. The interesting part to me is most would have sold their position prior to ripping the company a new ahole - lol
Al
It's all about the Bengamins ie the $$$ - Barny's assessment is the only thing which will increase shareholder value. Testimonals go on the walls and are worthless "at the end of the day...."
You had 4 or so shareholders rant and rave "best in show" and that's makes the products "the best"?
Barnabus
Agreed - the best is the company getting the PO's. Hopefully Greg agrees with your definition.
OT - Your name reminds me of Barnabus Collins the character in Dark Shadows - loved that show and I know I am dating myself - lol
Bill
L Kelly is the head on the dragon - he is the chairman and ceo if I recall. He has the right to surround himself with anyone he pleases. As a matter of fact the traits of a good ceo is who is arround him as he is only as good as those people.
The BUCK stops with L Kelly IMHO
Greg
Understand on the picks
Kelly said:
"we are utilizing the funds to bring on additional staffing to perfect items we know the military wants: our tetherless recoil weapons, our hybrid-CGI self-authoring software, our Razor-tracking weapon system, which will ensure that we have the most accurate weapons tracking system available, again something we know that the military wants, and to garner an array of training weapons for almost immediate delivery. The funds will also be built to produce a couple of smaller systems which are approaching being ready for immediate delivery. (Additional: A portion of the funds will go to) produce specifically-requested training scenarios."
You said: "True they will need working capital but their system is already superior to any training system out there. They are just increasing their technological lead with these changes."
If they are already superior to anything out there then where are the orders. In addition, Kelly's message says the products are being enhanced with additional features the army wants - sounds like they are not there yet. Superior based on what standard? Has an outside study been conducted or is this purely from the company literature? Do the companies getting the contract awards have the features required?
Take care
David OT
If you have many of your eggs in this basket it is obviously your decision but a person should not be invested in just GE never mind a OTCBB stock which is undercapitalized and struggling to survive. My $.02 not sure what your cost point is but it may be in your best interest to take of the $$$ off this table and put in more conservative items - ie mutual funds. Trust me we all want to hit the home run but they are playing with the big boys here. It's still possible but not as likely as it was a few years ago as others have posted. IMHO
Take care
David OT
NSTC nice gap up today - hope you grabbed some - earnings annouce tommorrow...
Good luck and take care
David/All
So much for this quote from the CEO letter: "I want to reiterate my firm belief that VirTra Systems has successfully designed and manufactured THE best and most cost-effective products to conduct firearms training currently available. We have expanded our technological lead and technical progress since the IVR 4G's unveiling only seven months ago."
Translation from the statement below: $$$ to be used for working capital and to bring their product line up to the standards needed by the marketplace to attempt to become competitive IMHO
"the additional $500,000 debenture will be utilized for both production costs and general operating expenses. Among other things, we are utilizing the funds to bring on additional staffing to perfect items we know the military wants: our tetherless recoil weapons, our hybrid-CGI self-authoring software, our Razor-tracking weapon system, which will ensure that we have the most accurate weapons tracking system available, again something we know that the military wants, and to garner an array of training weapons for almost immediate delivery. The funds will also be built to produce a couple of smaller systems which are approaching being ready for immediate delivery. (Additional: A portion of the funds will go to) produce specifically-requested training scenarios."
David OT
NSTC running today - earnings announce scheduled for 8/10. Do your DD - 34M shares outstanding - highly profitable.
Revenue
$166M 2002
$225M 2003
$304M 2004
Company Guidance
The Company is reiterating its 2005 annual revenue guidance of $370 million to $375 million and full year 2005 diluted net earnings per share guidance in the range of $0.70 to $0.75.
For the second quarter 2005 Ness expects to generate revenues in the range of $88 million to $90 million.
Ness forecasts second quarter 2005 diluted net earnings per share to be within a range of $0.13 to $0.14.
Good luck and take care
Charlie
The natives are getting restless. "Progress"? In business for all these years and 12/31/04 revenue $1.3M??? They did get some good salary raises in 2004 and financed by - equity
You said: "I'm growing less and less enamored with his skills as CEO" - Gee does that sound familiar - good lawyer - CEO????
The greatest excuse IMO was "the govt quiet period"...
Good luck and take care
These are my personal comments and as always read the SEC filings for the facts of the company
The OTCBB
Interesting - sure gives you a warm feeling to invest hard earned $$$'s in the OTCBB....
"As Chairman & CEO of the Pink Sheets, I know perhaps better than anyone the importance of improving the Pink Sheets and OTCBB trading. And I know the devastating impact that small companies face when their market is tarnished by the threat of manipulation. There is a crisis facing the OTC market today in the lack of short sale position reporting and disclosure for OTC issues. This lack of transparency regarding short selling in the OTC market allows fraudulent acts to go undiscovered and manipulative short sellers to hide."
Doug
"The Corporation" is from inception - ok no problem when do you want to start?
As of 12/31/01 the outstanding share count was 32,931,842 shares.
Let's see what the # is in the 8/15 filing - will be over 60M mostly all used to pay debt and working capital and the printing press will continue IMHO
These are my personal comments and as always read the company's SEC filings!
Doug
Define fair? When you get a large position in one company's hands in a thinly traded stock they will make sure they hedge their position.
How do you think they make $$$? They sell VTSI stock...IMHO
These are my personal comments as always read the company SEC filings
David
The board does not go back too far as they have deleted posts. I had a number of posts when Dutchess came on board. I have said many times the deal with Dutchess is a deal with the devil. They are not in a position to lose $$$. ALL IMHO
Dilution Dilution Dilution - this is not the same company when there were 20M shares outstanding
I found a post from 2003 where I discussed it...
http://www.investorshub.com/boards/read_msg.asp?message_id=1002979
These are my personal comments and as always read the SEC filings!
Ceres
I have mentioned their broader product line and their relationship with Lockheed Martin - it continues to pay dividends...and their stock price is up 13%
FATS, Inc. Receives Second U.S. Marine Corps Virtual Combat Convoy Training Systems Contract from Lockheed Martin
ATLANTA, Aug 05, 2005 (BUSINESS WIRE) -- FATS, Inc., a leader of high quality
simulation systems and training solutions for military organizations around the
world, announced today that it has received a contract from Lockheed Martin to
provide virtual training solutions in the Virtual Combat Convoy Training (VCCT)
systems for the U.S. Marine Corps.
The contract will provide two VCCT systems to be delivered to the U.S. Marine
Corps in September 2005. FATS portion of the contract is valued at $800,000,
bringing FATS total value of the VCCT program to approximately $7 million.
FATS and Lockheed Martin joined forces in 2004 to create one of the first suites
of VCCT for the U.S. Army. Together, FATS small arms trainers, indirect fire
trainers, close air support simulation and Lockheed Martin's Close Combat
Tactical Trainer create the simulated convoy training system.
"Roadside attacks on U.S. military convoys overseas continue," said Ron Mohling,
FATS, Inc. chief executive officer. "VCCT provides a virtual battlefield in this
type of environment and allows valuable after action reviews. The deployment of
VCCT will allow soldiers to train more effectively, better preparing them for
the dangerous convoy operations they will encounter in combat."
FATS virtual training systems utilize realistic computer imaging to imitate
terrain and targets. A combined arms environment will be created with simulated
field artillery, mortars, the ability to call naval gunfire and close air
support. FATS virtual training systems provide accurate, real-time diagnostics
and include the ability to review missions after each training session.
Headquartered in Bethesda, Md., Lockheed Martin (NYSE: LMT) employs about
130,000 people worldwide and is principally engaged in the research, design,
development, manufacture and integration of advanced technology systems,
products and services. The company Web site is www.lockheedmartin.com.
FATS, Inc., a subsidiary of Firearms Training Systems, Inc. (OTC:FATS), designs
and sells virtual training systems that improve the skills of the world's
military, law enforcement and security forces. FATS training provides
judgmental, tactical and combined arms experiences, utilizing quality engineered
weapon simulators. The company serves U.S. and international customers from
headquarters in Suwanee, Georgia, with branch offices in Australia, Canada,
Netherlands and United Kingdom. FATS, an ISO 9001:2000 certified company,
celebrated its 20th anniversary in 2004. The company Web site is
www.fatsinc.com.
Dubi
We are in agreement - I have added more during this the recent walk down on low volume. Looking forward to the next few weeks.
Thank you for your insight
Bylo
Tax Status
From the filing:
s. Tax Status . The Company’s consolidated 2003 federal income tax return, the Company and each of its Subsidiaries has made or filed all United States federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. Except for $512,265 in unpaid federal withholding from the Ferris Production era, there are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim.
From the Filing
7.5M shares to be registered?
2. REGISTRATION.
a. Mandatory Registration. Within forty-five (45) days of the Closing Date , the Company shall prepare and file with the SEC a Registration Statement or Registration Statements (as is necessary) on Form SB-2 (or, if such form is unavailable for such a registration, on such other form as is available for such a registration), covering the resale of all of the Registrable Securities, which Registration Statement(s) shall state that, in accordance with Rule 416 promulgated under the 1933 Act, such Registration Statement also covers such indeterminate number of additional shares of Common Stock as may become issuable upon stock splits, stock dividends or similar transactions. The Company shall initially register for resale 7,500,000 shares of Common Stock which would be issuable on the date preceding the filing of the Registration Statement based on the closing bid price of the Company’s Common Stock on such date and the amount reasonably calculated that represents the number of shares issuable pursuant to the terms of the Offering. In the event the Company cannot register sufficient shares of
Common Stock, due to the remaining number of authorized shares of Common Stock being insufficient, the Company will use its best efforts to register the maximum number of shares it can based on the remaining balance of authorized shares and will use its best efforts to increase the number of its authorized shares as soon as reasonably practicable.
b. The Company shall use its best efforts to have the Registration Statement filed with the SEC within forty-five (45) calendar days after the Closing Date. If the Registration Statement covering the Registrable Securities required to be filed by the Company pursuant to Section 2(a) hereof is not filed within forty-five (45) calendar days following the Closing Date, then the Company shall pay the Holder the sum of two percent (2%) of the Face Amount of the Debentures, outstanding as liquidated damages, and not as a penalty, for each thirty (30) calendar day period, pro rata, following the thirty (30) calendar day period until the Registration Statement is filed, compounded daily. In addition, for each sixty (60) calendar period the Registration Statement goes without filing, the Conversion Price of the Debentures will decrease by two percent (2%).
Notwithstanding the foregoing, the amounts payable by the Company pursuant to this Section shall not be payable to the extent any delay in the filing of the Registration Statement occurs because of an act of, or a failure to act or to act timely by the Holder. The damages set forth in this Section shall continue until the obligation is fulfilled and shall be paid within three (3) business days after each thirty (30) day period, or portion thereof, until the Registration Statement is filed. Failure of the Company to make payment within said three (3) business days shall be considered a default.
Heel
You said: "Pretty bright move, then, going to a business with higher profit margins and fewer (although better financed and with better name recognition) competitors." They went to a different business because the first idea failed. As you said "Any idiot wants to or thinks about opening a bar."
You said: "How about the viability of their hardware and software? You've seen some positive user reviews (unless you keep you head buried in the sand at the mere whiff of positive news). Are the end users lying about their preference for VirTra technology? How long does it take for their reviews to make it to the purchasing agents desk? How long for them to demand VirTra over the competition?
Response: Their customer base IMO is made up of a very small # of clients. It appears to me like their product line is limited and based on the response of the recent FATS PR theirs is much more broad.
Purchase agents demand Virtra? A purchase agent needs to qualify a company's viability prior to getting it approved. VTSI is having a hard time passing the test at this point. VIABILITY is a big issue for them overcome to receive real orders IMO
Heel
The mention about a beer referred to the company's original business "brewpub/microbrewery". See portion of their SEC filing below - 15 minutes vs 18 mos. LOL
You said: "No US government purchasing agent lost their job by maintaining status quo. Only when the end user points out the need for new, better technology will the purchasing agents begin to fill out paperwork for VirTra. Changing customer behavior (especially US government behavior) will take time.
I AGREE AND HAVING BEEN SAYING THAT FOR QUITE SOME TIME - MY LOCKHEED MARTIN ANALOGY
BEER REFERENCE:
From the company SEC fuling:
"Overview. The Company was capitalized in 1996 to develop, own, and operate theme brewpub/microbrewery restaurants. Until March of 1997 when the Company acquired, and July 1, 1997 when the Company began operating, the former Hubcap
Brewery & Kitchen in Dallas, Texas, the Company had no operations or revenues and its activities were devoted solely to development. However, since the acquisition was accounted for as a pooling of interests, the results of
operations of Hubcap Brewery & Kitchen were carried forward into the Company's financial statements and accordingly the 1997 financial statements reflect a full year of operations of that business. In January, 1999, the Company terminated its brewpub/microbrewery restaurant operations. It is anticipated that the Company will in the near future place First Brewery into voluntary liquidation under Chapter 7 on the Bankruptcy Act."
Lewis
The con call was a month ago - you don't think this equity financing was in works at the time of the call?
And I thought the cash receipts for the second quarter was more than 20 times what they were for the first quarter?
I have a clue...
Dubi
It looks like the stock is being walked down on low volume. In looking at the chart it appears to happen just before every earnings announce and then a rebound assuming good results. Any luck talking to the company?
Thank you
Lewis/Con Call
The inference in the con call - see page 8 - was PO Financing was the priority to be used and "issuing equity was least of our preferences" - here's the rest of the story"
"As far as how we are going to finance these, we are not too worried about that. We have had a number of dialogues - a number of discussions with people in the purchase order financing business - and once we obtain some contracts of a larger size, we can finance those through purchase order financing at a discount which we think is much more attractive than issuing equity. We can always issue equity to gain capital if necessary. However, that is probably the least of our preferences, and the least of our alternatives as far as avoiding shareholder dilution."
http://www.virtra.com/downloads/CCtranscript_6_30_2005.pdf
Smith
From the CEO Letter:
"As a newcomer to the market, even as an industry-described "rising star," when you realize that average sales cycles run at least 18 months, coupled with the military's tendency toward the status quo"
Average sales cycle 18 mos - wow now that's really long - now that's a far cry from the sales cycle in the brewery business -every 15 minutes...sorry couldn't resist.
"coupled with the military's tendency toward the status quo" - means you never got fired for sending PO's to Lockheed Martin and tough to crack into the old boy entrenched network.
Take care
Lewis
You're saying this deal does not mean shares are issued? Read the filing....and be informed. Did you read the whole filing or just the CEO letter?
From the filing:
On August 1, 2005, we sold $500,000 in principal amount of our three year convertible debentures to Dutchess Private Equities Fund II, LP (the "Investor" ). These debentures bear interest at 8% per annum (payable in cash or stock at our option), and are convertible at the lesser of (i) 80% of the lowest closing bid price of our common stock during the 15 days of full trading prior to the conversion date; or (ii) $0.19.
Upon issuance of the $500,000 in principal amount of debentures, we issued the purchasers five year warrants to purchase 500,000 shares of our common stock at $0.19 per share.
We agreed to register the shares issuable upon conversion of the debentures and upon exercise of the warrants.
Dilutive Effect . The Company understands and acknowledges that the number of shares of Common Stock issuable upon purchases pursuant to this Subscription Agreement will increase in certain circumstances including, but not necessarily limited to, the circumstance wherein the trading price of the Common Stock declines following the effective date of the registration statement covering the Common Stock underlying the Debentures (the “Effective Date”). The Company’s executive officers and directors have studied and fully understand the nature of the transactions contemplated by this Subscription Agreement and recognize that they have a potential dilutive effect. The board of directors of the Company has concluded, in its good faith business judgment that such issuance is in the best interests of the Company. The Company specifically acknowledges that, subject to such limitations as are expressly set forth in the Transaction Documents, its obligation to issue shares of Common Stock upon purchases pursuant to this Subscription Agreement is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.
The full filling
So much for PO financing....more dilution.
http://yahoo.brand.edgar-online.com/doctrans/finSys_main.asp?formfilename=0001332489-05-000005&x....
5Cap
"I suppose they used financial projections, the same projections more or less that were shared with the various debt holders to make a good case that it would be smart to take shares for debt. Do you know if those projections were ever shared publicly?"
Has anyone seen a business plan or proforma statements? As I have said before this company appears to lack financial management.
The only financial person I can see on the employee list is Kimberly who is described as secretary and treasurer and appears to be a joint employee for the both Jones and Cannon and VTSI.
From the SEC filing:
"Kimberly Biggs has for the last 15 years been legal administrator of the Arlington law firm of Jones & Cannon (which provides legal services for us) as legal administrator, a position which she holds to this date."
Rusty
I agree the shares will be well spent if they turn into "a ton of business." He's been on board since 1/05 and I am sure he is responsible for a number of the deals in the pipline but they need to turn into PO's.
Time will tell
General Dalby/WC Needs
I have the ultimate respect for a career military man who has served our country!!! We thank him for his service! I am sure the 189,286 shares are well spent and he brings much to the table.
So at this rate 100,000 in July, October and say December for 500,000 shares for the year???? Just a guess on my part.
I am sure all worthwhile but based on the lack of positive cash flow it brings more dilution to the capital structure. And my guess the company is issuing more shares for their working capital needs as well...
All IMHO
Lewis
The funny part is the con call abreviation for conference call and your inference was never my intent but I guess you are pretty astute - your words not mine. lmao