VirTra Inc (VTSI)

[sharpchicity]

What's it for and how confident are you that they will continue to earn revenue from whatever this was going forward? The last thing the company said about the military was their prior contract with the military was over.

Looking ahead, we expect gross margins in 2022 to improve relative to our 2021 levels, as the strategic military contract was largely completed in 2021...

Are they in IVAS/SiVT? Last we heard was in June and SiVT still had a lot of kinks to work through and Brigadier General Glaser went so far as to talk about cancelling the program if they couldn't work out the bugs. Army also used an image of InVeris's SRCE product in a slide deck at TSIS which, for indoor use, is a direct competition to SiVT. This isn't to say that VirTra couldn't be involved, but we don't have good news here.

Are they in SVT? So far we know InVeris is but nothing about VirTra or the CAE team. Even so, revenue in the next 12 months is likely to be only a portion of the $4m that team received. I suppose VirTra could win a separate award for recoil kits at any point in the future, but we're probably months away from anything like that as STE-Core software gets built out.

STE-LTS could be, but that program is a giant ball of mystery with 5 different vendors all providing competing solutions to what VirTra could do.

Marines aren't implementing anything any time soon.

Airforce ADMIRE contract is up in June '22 and while IST and Ball Aerospace won follow on work (https://potomacofficersclub.com/news/infoscitex-awarded-afrl-support-contracts-totaling-243m/) and VirTra has received payments from Ball in 2022 (https://www.usaspending.gov/search/?hash=c96bebeffa11001b1dd269c2aaa85eee), no commentary has been made by the company so i'm hesitant to think they are involved in the follow-on work. The fact that $1.6m revenue was recognized in the quarter prior to the $1.9m ADMIRE contract completing is somewhat interesting, but i don't know if this is where it's from; why did they get $300k earlier and the rest now?

There's a difference between hoping for the company to break in to the military and being excited about the company when its already priced in to the value of the stock.


For reference, below is commercial/military revenue for past few years.

Quarter Year Commercial Rev
Q1 2022 $ 1.62
Q4 2021 $ 0.80
Q3 2021 $ 1.45
Q2 2021 $ 0.59
Q1 2021 $ 0.33
Q4 2020 $ 0.68
Q3 2020 $ 0.25
------------------------ ADMIRE AWARD
Q2 2020 $ 0.29
Q1 2020 $ 0.07
Q4 2019 $ 0.26