VirTra Inc (VTSI)

[sharpchicity]

> I do not believe it is legal to have a signed contract not disclosed in the backlog

We asked CEO this question. He gave off the impression (my interpretation) that he had given this thought before. His response was that there was no legal requirement to disclose a contract unless it was material to the sustainment of the company. Meaning if VirTra can survive on LE alone, any military contract would not _need_ to be disclosed. I could have misheard or CEO could be making up excuses. Ask the CEO/IR this yourself and let me know!

But you're right, any military work would show up in the backlog assuming an order was placed and was not fulfilled. With that in mind, here's how CEO ended his prepared commentary on the previous call,

“Today, much of this transitional work is now behind us, which means our attention is now focused on growth.
During our last call, I discussed some of the details of our sales strategy as it pertains to the military market. As a reminder, we often find success by leveraging our industry-leading patented products, by partnering with larger players who are already ingrained with decision-makers. Due to the competitiveness of our industry and the sense of nature of many of our client relationships, we are often prohibited from disclosing details related to current contracts, as well as prospective growth areas.
We understand that the lack of large numbers of press releases can be frustrating for some investors who are eager to learn more details about where VirTra is growing and how. However, our mentality at VirTra is to put the business and the customer first, especially when releasing too much information too early can endanger material opportunities. We also believe actions speak louder than words.
We say as much as we can when we can, but there are instances in which we are prohibited from disclosing details. Unfortunately, this is one of those instances. But I can confirm that we've made very real progress in the military market. In fact, the fruits of that labor have started to show up in our backlog in a material way. As long as the need for quality training exists, and as long as we're able to execute on our strategy, we believe that our success could well continue. It might even accelerate.”

As far as timing of a contract goes, I suggest folks go back and reread the q3 2020 call and the q4 2020 call (Mar 29). IMO there is a noticeable change in tone and usage of past/present tense between the two. Everything prior to Q4'20 call was "we're trying to work our way into the military" while the Q4'20 and Q1'21 seems to be more present/past tense and about execution. So i think something was done between Nov 2020 and Mar 2021. And there's nothing I can see within that date range that would lead to material backlog order besides a deal with Microsoft. One could try to argue a small, 20-40 unit order in Q1 was placed for the STE-LTS demo which wasn't to be done until Q2, but i have a hard time believing both that a demo would require that many units and that CEO woudl call a < $200k order "material".