Annual Meeting Summation
Hello all. Apologize for the delay in publishing this. Notes from the meeting are as follows:
The number of shares voted fell significantly short of the 50% required for a quorum to be present. I believe they were ~50m votes short, and thus it was not an official annual meeting, but more of an informal Q&A with shareholders that lasted approximately an hour. Bob encouraged the shareholders at the meeting to contact other known shareholders, and ensure that they vote in the future. Without a quorum of votes cast, it really is the status quo at Virtra. Many of your questions were asked, and the vast majority of these were received with an answer of "We cannot comment on that."
There were only three shareholders present at the meeting. They were all very knowledgable about the business in general. Virtra is up to approximately 52 FTE's, and a quick check of their website shows they have no current openings.
Questions were initially asked about the Modern Round agreement. I have it in my notes that it was a mutual agreement from both parties, but the management team declined to state how the 10% would be acquired (open market, direct issuance, price, etc.) by Modern Round, as well as declined to state what exactly the specific target requirements of Modern Round are. It seems that they are really just the software provider in this situation, and don't have much control/influence over the progression of Modern Round.
They stated they are pleased with the result of the FAAC settlement, but did not disclose the monetary amount.
A question was raised about the board's compensation in stock options, and to whether or not that would be switched to cash compensation on a quarterly basis instead. They stated they are always reviewing these situations to see if a change makes sense.
Everyone's favorite question about a reverse split or an attempt to uplist was received with a very political answer. It's unclear why they will continue to pay an IR firm if they have no intentions of uplisting, but no guidance was given there. It is my estimation that there are no plans to uplist or RS the stock at this time.
A shareholder asked about where Virtra is positioned in the marketplace. They stated that they believe they are one of the largest, if not the largest, but their major competitors are either private, or do not break out their segments into specifically military or LE.
No guidance was given on the delay of the DHS (~$6m) contract, which seemed odd as it is public information that a delay has occurred. They did not seem to indicate that the project was in jeopardy in anyway however.
They stated that they are always working on developing new products, and I believe a new product was recently brought to market. There seemed to be a corporate focus on innovation.
They recently extended their lease through 2019 I believe, and stated that they have significant capacity to grow in their current building.
Management seems to be very knowledgable about the inner workings of Virtra, but they are an uncharacteristically tight lipped corporation. Maybe it's just the culture of the company, but I feel a little transparency could go a long way for Virtra.
Bob finished the Q&A by reading off a pre-recorded statement. He said that they believe in the future of this business, and are happy with the financial position. If the past is any indicator, Q1 numbers should be released on approximately the 15th.
I have no intentions to sell my position, but I can certainly understand shareholders frustration with the company. I apologize if your question was not answered.
