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The Debt Issues Remain
From the SEC filing:
We are in default on certain equipment leases and shareholder promissory notes. If these leaseholders and note holders are successful in suing us we may have to curtail our operations, making it difficult to reach a profitable level of operations.
We previously operated virtual reality entertainment centers in a number of theme parks. We leased some of the equipment needed to operate these entertainment centers from approximately 140 leaseholders. In October of 2001 we told all of the leaseholders that we were suspending payments on their leases. Further, we previously had entered into promissory notes with approximately 14 shareholders. We were successful with a debt-to-equity conversion plan in December of 2004 with the holders of approximately 90% of the combined leaseholders/noteholders converting lease obligation to common stock. However, we remain in default with the remainder -- 19 unconverted leaseholder investments in default as of December 31 2006, representing $257,000 in principal, and $187,065 in accrued interest, and we have a judgment against us from a noteholder, representing an additional $121,386 in principal amount and interest.
We owe the IRS $759,971 in payroll tax liabilities, which could lead to a seizure of our assets by the IRS.
As of September 30, 2006, we had $893,903 accrued for various payroll tax liabilities. In May 2006, we received notices from the IRS of tax liens that have been filed related to these accrued amounts, and of their intent to levy. A seizure of some of our assets by the IRS could make it difficult or impossible for us to complete some of our existing contracts, resulting in substantial losses. On November 5, 2006, the IRS appropriated $142,750 in receipts due us from a customer, resulting in delays in delivery to other customers.
GLTA
Teeroy
The link is below - the SEC filings the true facts about a company
By the way nice call on FRPT - big runup to the NASD looks like much of the news is priced in - but a great hit if you got in the single digits.
Common Stock Outstanding Before This Offering 96,732,599 - Common Stock Offered Up to 34,083,741 shares that's 130M
http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?FilingID=4892817&Type=HTML
We cannot predict our future capital needs and we may not be able to secure additional financing.
We estimate our current "burn rate" -- the amount necessary to sustain our operations -- at approximately $120,000 per month, or $1,440,000 per year. To fully implement our current business plan, we will likely need to raise additional funds within the next 12 months in order to fund the operations of the company. We expect that the majority of these funds will come from institutional financing calling for advances against the proceeds of purchase order contracts we receive. However, if we are unable to obtain contract financing, we will need to seek financing from other sources. If we raise funds through other sources, such as convertible preferred stock or debentures you may experience significant dilution of your ownership interest, and these securities may have rights senior to the rights of common shareholders. If additional financing is not available when required or is not available on acceptable terms, we may be unable to fund continuing operations, develop our products, or take advantage of business opportunities or respond to competitive pressures, any of which could harm our business.
Our past inability to pay our debts as they come due may make it difficult or impossible to obtain a bank loan in the absence of security arrangements and/or personal guarantees from management.
Our history of non-payment may make it difficult for us to get future bank financing for our operations on an unsecured basis or without personal guarantees from our officers. While we believe that financing of our expected purchase orders will be available on a secured basis, we cannot give any assurance that this is the case. We may not be able to borrow enough to carry out our business plan if institutional financing is not available.
Cyber
All posts will be deleted by the moderator unless posted by Sir Felix.
He is the best moderator - the board has never been better and so active with "discussion".
David you are the best!!!
Cyber
Felix is very much in charge!!!!! He now owns the board and seems like he can post and even reply to himself. That's what happens when everyone moves on. It's never been the same since Greg left he was awesome.
HIS POWER IS ABSOLUTE!!!!!
Doug
You ever wonder why there's no talk - no sales and no price movement - $.04 steady as she goes. Doug aka the Titanic Captain
Good luck and take care
Ghost town
Well David's here posting useless links every day or so. The others are licking their wounds and wished they had sold for the tax loss prior to Dec 31. Or they made a wise decision and bought some xrtx...
I asked a question to the board a short time ago but got no answer. I'll ask again....
What is the current # of shares outstanding for VTSI?
Cyber it is just sad how this board had gone down hill. Just not the same since Greg left for his next OTCBB 10 bagger
Take care
David
You are the best. The stock is up 25% because it is up $.01 - yes one red cent or a cent and a fraction - OMG! Up to $.05 - that's awesome baby.
I think gloating would be due on a 25% move from $10 to 12.50 but that's just me...
In your example you referred back to 2003 - well in Nov 2003 there were only 47M shares oustanding versus what there is now.
Question to you or anyone what is the total shares outstanding right now?
Take care
David
You said on 12/2: "We will see some news in early to mid December, possibly driving the stock up to 9c. Their will be a news lull during the holidays, maybe a 1-2c retrace year-end. Then the Jan-effect hits with more news and we should see 13c again by late Jan." GOOD CALL
The market makers continue to hold VTSI down and add cheap shares to their inventory as this stock is about to EXPLODE!
Here comes the January effect - stocks up big this month - 2006 Mutual Funds and 401Ks up over 15%.
VTSI expected to hit $.13 by end of January - 4 bagger - buy buy buy...
Keith
At least I tried - lol. Only need another 300M shares or so to add to the outstanding to make a dent in the debt owed and the price will look like this - $.015.
You know you are in trouble when the price of a stock is in 3 places after the decimal...
Lasershot
Interesting.............
http://www.lasershot-lawenforcement.com/index.php?pgid=6&sid=14
Mission Statement
Our mission is to be the leader in firearms training products specializing in ?use of force? and ?judgmental training? to save lives emphasizing our military and law enforcement products. We will continue to grow rapidly by supplying our customers with the solutions they need. We will deliver technologically advanced products, both hardware and software, at competitive prices and in a timely manner. We will reward creativity, require unflawed execution and work relentlessly to pursue our objectives. We will commit ourselves to building a first rate organization.
Executive Summary
Laser Shot, an American-owned and operated company, is committed to excellence. Based out of Houston, Texas, with satellite offices in Washington, D.C., and London, England, Laser Shot employs over sixty dedicated professionals that are specialized in providing unsurpassed service and support to the military and law enforcement worldwide. Laser Shot?s capabilities include hardware and software design and development, as well as the commitment to investing in new technologies for the future. In today?s rapidly evolving military and law enforcement combat and tactical situations, it is vital to institute sound judgment and decision-making in those situations, which also require highly conditioned reflexes. Combat situations where targets must be identified, instantaneous decisions made, and the use of force applied, require judgment of the highest caliber. In an effort to meet the requirements of said standards, Laser Shot has become the cornerstone in designing some of the most highly advanced military and law enforcement training simulation packages in the world. Some of those packages include the Future Soldier Trainer (FST), the Military Skills Engagement Trainer (MSET), and the Live-fire Simulation Trainer (LST). These systems are self-contained, mobile, and highly deployable anywhere in the world combat and tactical training is required.
Combined with the experience and expertise of employed Laser Shot professionals, these systems can be set up on the fly and utilized by military and law enforcement personnel in a matter of minutes, making them the best tools in the trade for combat and tactical decision-making, judgment, and most of all, saving lives.
Lasershot
http://www.lasershot-military.com/index.php
Their website is very cool - click on home and raise the volume on your computer - sure catches the eye!
Merry Christmas to all - Last trade $.038 - Ouch - check out Xrtx earnings announce 1/4 - Last Trade $21.34
GLTA
Clarevoyant
Sounds like Kelly is willing to drop the lawsuit and settle. Like the leaseholders did....
Kelly - 20% of amount billed in shares sounds fair. Agreed?
KP
Just nice to see someone posting facts and not waiving POM POMS.
You said: "my posts are meant for the thinking reader" - my posts have been and are always thought provoking and loaded with facts from the company's SEC filings.
You said: "First I am a shareholder" - how's that working out for ya?
Take care and aloha
David
THE ETERNAL OPTIMIST - the Nero of Investors Hub...
Take care
All
Wow - playing the part of ByloCellhi - KP.
Nice post KP and I guess there isn't even anyone there to proofread. Amazing - Mexico is going to save the company!
From the letter: "As I had been traveling with Tom Milks two weeks ago visiting with a prominent client in Ohio who expressed interest in our virtual reality systems, I WAS UNABLE TO VISIT WITH YOU? regarding our Mexican sale we announced then, and would like to bring you up to date now. I also expect that we will get that business in Ohio, and I look forward to sharing the exciting details of this project when I am able." This is quite an interesting statement as well...
Maybe they can go in the rodeo business from the info highlighted in KP's post?
Good luck to all and Merry Christmas!
Keith
I have been the voice of reason! But no one would listen and they have Held and Held and Held from $.40 to $.05 from 15M shares outstanding to over 100M.
Sir Felix is going to retire with his 1,000,000 shares - when the reverse comes 10 to 1 - 15 to 1???? He will get screwed even more...
SAD SAD just SAD - the ostriches continue to keep their heads in the sand...
Xrtx nice move today!
GLTA
Cee it
They will not show up in the public shares traded but it will show up in the public shares in 1 year when the restriction runs out. And the strike price will be at a discount to the market price. It will show up in the SEC filings when issued...
Take care
Catfight!
Cross this line - no cross this line. Pick a place and meet there!!! Sounds like a great YouTube video...
Heavy trading volume today 6500 shares $.06...talk about dead $$$
David
Oh yeah Mexico is passing us by...the US Govt buys and sprends trillions of dollars for defense...
"its disheartening...again... to see the rest of the world leave the US behind by aquiring more advanced technology"
VTSI's more advanced technology????? My god you are absolutely amazing. I think John Kerry is your post writer!
The US Govt spends trillions on training and defense - beneficiary companies - Lockheed Martin, L3, Boeing, Northrup Grumman etc.
I guess based on your post the US is vulnerable for an attack...
At $.05 VTSI is a sreaming buy - no place to go but UP!!!
Bill
No choice as stated before - raise the # of shares or fold up shop per the General - L Kelly is no dummy - keep the ship afloat and then the reverse...
Ever feel like a Pawn?
The jury is out to see where we go from here...once the shares are issued and the massive debt resolved then the reverse will happen. So much for all the proxy vote talk...82% to 17% ...not even close!!!
-----------------------------------------------
VirTra Systems' Shareholders Approve Authorized Share Increase
Tuesday November 28, 8:19 am ET
HOUSTON, Nov. 28 /PRNewswire-FirstCall/ -- VirTra Systems, Inc. (OTC Bulletin Board: VTSI - News) today announced that its shareholders have approved a proposal to increase the Corporation's authorized shares of common stock by 400,000,000 shares.
VirTra Systems' shareholders voted to increase the number of authorized shares of its common stock at a special meeting held at the company's headquarters yesterday in Houston, Texas. Shareholders passed the proposal with 82.5% voting for the proposal, and 17.5% voting against it.
Major General Perry V. Dalby (USA-Retired), VirTra Systems' chief executive officer, commented, "I am pleased to have received the overwhelming support of our shareholders for this proposal, and am grateful for their participation in this important process.
"A small portion of the newly authorized capital will allow us to satisfy previous financing commitments, and secure needed capital to assist in the manufacture of over $2.5 million of new small arms training simulator orders received this fall.
"In addition, projections for 2007 are extremely encouraging as our sales efforts continue to secure new and repeat business, and we introduce new initiatives designed to improve our overall corporate efficiency," Dalby concluded.
David
Making more friends I see...
Hey so what do you think the price will be at the end of the year 12/31?
David
What are you referee? Did really say terrorist attacks occur every day in England, France, and Spain?????
Over the top as usual..........
Tarheel
I guess the PO Financing wasn't a viable option after all...
He didn't list ALL the attacks??? He said they get attacked all the time - not true...
David
What's your point? You said those countries are attacked all the time...England is being vigilant so they are not again for the second time...
I am well read and informed thank you - I hope are not drinking early again....
SBC
Well said...after L Kelly stepped away there was no damage control.
SBC
In almost ALL public companies the CEO and senior mgmt spends his/her time RUNNING the company. There is normally an IR person to handle investor shareholder questions.
The PR's and results should speak for themselves - a shareholder letter for every PR? Responding to shareholder emails all day?
Is that what CEO's get paid 6 figure salaries for? I think not...
I would rather the CEO establishing customer relationships, sales, sales, sales....cost containment, etc - you know the drill right.
SALES is what drives a company period...I think mgmt being quiet is a good thing. Send all your questions to Steve Haig???? and leave the senior mgmt alone.
SBC
The hell with Mgmt especially on the OTCBB - of course they will spin it positive - they usually have the most to lose or the highest # of shares. They have no other choice...always take it with a grain of salt.
L Kelly with all due respect - for 5 years positive positive positive - to paraphrase "I have never felt better about this company"
The SEC filings especially the annual one which is audited is the real truth. Many posters kept saying the financials don't matter - they ALWAYS matter and are the company and management report card.
Good luck
RoseBowl
Kelly hope you are well. IMHO - the company needs a strong financial person to get the company out of this financial situation.
Kimberly Biggs I am sure is a nice young lady but my guess a bookkeeper and was over her head. Dave Rogers ex CFO no longer there right?
Who is there to do cost analysis, budgets, what if analysis to keep the costs under control and determine break even, etc etc? You know the blocking and tackling needed to run a profitable company or get one there...
Bylo
SBC
You said: "If we get this 400MM approved, they really owe us big time"
The one thing everyone needs to understand IMHO, expecially the people married to this stock (Sir Felix) is the company - mgmt owes you nothing. This is an investment - period.
It should not be personal. You wonder people have held this security for over 5 yrs. What is the opportunity cost???
For example I have Fidelity Equity Income Fund in my 401K - 20% the past yr and 13% life of fund. The OTCBB is real tough...
Bottom line IT IS AN INVESTMENT - Black and White - the company has a very long road to hoe to recover.
http://personal.fidelity.com/products/funds/content/browse.shtml.cvsr?refpr=ipmf1
I have a sizable position in Xrtx. And as an example its financial structure - 30M shares outstanding and $2 EPS and will be a billion $$$ in sales for 2007.
I know the OTCBB is not the NASD but they are so many plays out there it seems...
The overhang with Dutchess will continue to hinder this company. Question: Will the 40M shares pay Dutchess of in full? I think many more shares will be needed to get the company to ZERO DEBT
Just a thought
Good luck
SBC
Outstanding Post!
Optimistic scenario: "In a couple of years, with ZERO debt and the new 40MM shares being placed in PIPES with shares restricted for two to three years, we will be working with basically a free-trading float of about 90MM to 100MM shares over the next two years - ASSUMING the company keeps its word to NOT USE THE SHARES to dilute us. So all the revenues from sales can go to operations of the company and the profits will be left over as net income. This will not be eaten up by paying off all the cumbersome debts and other financial obligations from long ago. So, in optimistic anticipation that the sales can continue on a pace to get at least $10 to 15MM in sales over the next two years with a profit margin of about 40%, that would be a profit of about $4 to 6MM. Give it another year of continued growth, and we should be able to get up to about $12 to 16MM in net income"
You are right there is no need to get to 300M to 400M shares. Unfortunately it is going to take more than 40M shares to to get this company to zero debt. Your scenario the company will get to positive cash flow which is need to stop the printing of shares.
300M shares IMO is way to many for a $10 to $20M revenue company - they will still need $$$ for working capital to fund growth. Positive cahs flow can fund it. In order to reduce the # of shares the company can buyback shares in the market and a reverse. IF the company can achieve + cash flow there are MANY options.
Obviously we are getting ahead of ourselves but the financial structure needs to improve substantially.
I say trust mgmt approve the shares - 500M outstanding means nothing it is THE ISSUED # of shares which is key....
Time will tell - good luck
Sounds familiar....
This is my post from 11/3 - A reverse will happen...
http://www.investorshub.com/boards/read_msg.asp?message_id=14516236
I outlined how I thought it would play out. You are so busy alienating and pissing off people you do not read the posts. You got into a pissing and name calling contest with Kelly - you did the same with Cee-It.
As I stated before BUT I will again for your benefit:
http://www.investorshub.com/boards/read_msg.asp?message_id=14505935
The shareholders will agree to raising the # of shares - the outstanding shares will go to 300 to 400M shares - the company will reverse 10 to 1 your shares will be reduced accordingly. How many shares you have here 500K - a million??? Divide it by 10... After the .com bubble burst 5 or so years ago no one should have all theirs eggs in the OTCBB basket.
Bookmark this one and let's see how it plays out. You'll still be bitching 2 years from now.
RB
So it's a definite maybe....all those words and no decision.
Major General Dalby
You said:"The IRS debt I am currently required to resolve was generated both before and after the merger with Ferris VR (various times during 1999-2002), it has grown another 30% in penalties since last year’s “attempt” to resolve it failed by offering the IRS 10 cents on the dollar – the IRS did not accept that “offer.”"
Based on this my guess L Kelly Jones will accept $.10 on the $500K lawsuit which is how the mgmt under his watch tried to settle with the IRS. He gave stock to the leaseholders when he settled with them.
So $50,000 is 10% - at the recent price of $.05 - that's 1,000,000 shares as payment in full
I guess we now get the "rest of the story"......
David
You said: "Nations like England, France, Spain, etc are attacked all the time." ?????? They got attacked once -Spain - the train, England - the subway, France - I don't recall - France is too busy negotiating or helping them. By the way you never did reply with your background - Finance??? My guess Marketing....do you ever preview your posts???
Most are pretty funny - thanks for the laughs....
Ellington
I would not read a No into RB's message. Kelly is a man of many words and he probably wants to comment on his decision along with the why.
Maybe as a concession he should/will dismiss the frivolous lawsuit or settle for $.20 on the $ for stock to assist with cleaning up the balance sheet???? Kelly???
By the way Xrtx making a nice move today - GLTA
Keith
Just curious what is your avg cost?
Good luck
David
No flip here...
You said: "If you have a good paying job, but want to buy some land, build a house and pay off that 28% credit card balance, you could just save up the money for 30 years first or look into maybe borrowing the money at a good rate. Which way do you prefer to do it? Virtra is in the same position any of us would be in if we wanted to get our lives moving in a positive direction financially."
Your analogy is not reality - the days of down payments like the past are gone. You can buy a new car with no down payment and roll the sales taxes into the loan same with buying a house used to be you needed 10 to 20% down payment now you can do it with 5% or less.
One thing you do need to credit or a FICO over 700...to get the best rate
The company had said they could not do the savior financing - PO Financing (Tar Heel touted and knew so much about) as it was "usury"....
Dutchess is tapped out and they are cashing in every day it seems...
Let's see how it plays out ok
By the way is your expertise in corporate - credit finance or banking??? I think you are over your head in this analysis.
Looks like you chased ole Rose Bowl away - Kelly your $.02 on the company's current status??? Are you selling to try to get something from all the blood and sweat over the many years of hard work?
David
You said: "Its silly to even think about the "B" word. The company has enough revenue coming in to keep the paychecks coming and lights on."
Revenue??? they need an infusion of $$$ by selling stock in order to build the product from the conference call - you don't call that dire?
You are as WRONG as you ever have been with your statement. Credit is granted to companies with positive cash flow and Tangible Net Worth. VTSI has neither and as I have said many times there only real asset is stock and possibly the technology in the their product. The stock is getting less and less valuable - I mean we are talking a nickel for each share...
The employees are probably working for less than market salary and hoping to cash in on stock growth. The IRS could put the company under any time they wanted to but I agree they need to be appeased in some way. The old adage you want time you need to buy time - ie $$$$ of some portion to the creditors.
Dutchess will bleed them dry and continue to sell - short and sell...
Unfortunately these situations feed on themselves...
Eggman - Dutchess
You said: "no one decided Duchess was a high enough priority to deal with" - well some of us did...
Here's my first warning in 2003 on Dutchess in 2003 - they have a long storied history of albeit negative
http://www.investorshub.com/boards/read_msg.asp?message_id=1002979
Others....
http://www.investorshub.com/boards/read_msg.asp?message_id=5610480
http://www.investorshub.com/boards/read_msg.asp?message_id=5605821
http://www.investorshub.com/boards/read_msg.asp?message_id=5605699
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On February 25, 2005, we entered into an investment agreement (the Agreement) with Dutchess Private Equities Fund II, LP (the Investor). This Agreement provides that from time to time, following notice to the Investor, we may put to the Investor up to $6,000,000 of our common stock for a purchase price equal to 94% of the lowest closing bid price of our common stock on the Over-the-Counter Bulletin Board during the five day period following that notice. The number of shares that we are permitted to put under the Agreement is either: (A) 200% of the average daily volume of the common stock for the ten trading days prior to the applicable put notice date, multiplied by the average of the three daily closing bid prices immediately preceding the put date; or (B) $50,000; provided however, that the put amount can never exceed $1,000,000 with respect to any single put.
We also entered into a debenture subscription agreement with Dutchess Private Equities Fund, L.P. and Dutchess Private Equities Fund II, LP, under which those entities agreed to purchase $750,000 in principal amount of our three year convertible debentures bearing interest at 8% per annum (payable in cash or stock at our option) and convertible at the lesser of (i) 80% of the lowest closing bid price during the 15 days of full trading prior to the conversion date; or (ii) $0.33. The initial $500,000 in principal amount was purchased when we signed the Agreement referred to above. The remaining $250,000 in principal amount is to be purchased only when we have filed a registration statement covering sale of the shares issuable upon conversion of the debentures.
Upon issuance of the initial $500,000 in principal amount of debentures, we issued the purchasers five year warrants to purchase 500,000 shares of our common stock at $0.33 per share. Upon purchase of the remaining $250,000 in principal amount, we are obligated to issue the purchasers warrants to purchase an additional 250,000 shares at the lesser of $0.33 per share or the lowest closing bid price of our common stock during the five trading days prior to the funding the additional $250,000.
In connection with the Agreement and the debenture subscription agreement, we agreed to register the shares issuable under the Agreement, upon conversion of the debentures and upon exercise of the warrants.