VirTra Inc (VTSI)

[KauaiPI]

Greg~I am getting the feeling this board is getting a bit touchy lol All I did was read and quote from your post (#5269) in my post to you... your post read; "Cash crunch from huge amount of current liabilities due in excess of current assets. Need more cash without revenue and the only other real asset is stock catch 22 – additional dilution concerns.

The Dutchess equity line allows the company to draw down funds at a slight discount and they can choose when to draw the money. They will only draw money into strength so the stock price won’t be impacted"


KP - FWIW - Bylo said cash crunch.... Kelly was addressing the dilution concerns by stating they are very careful when they draw money so they won't impact the share price and if the share price is low like it is now IMO they won't draw down any funds. It doesn't appear that the company has drawn to much from the equity line recently based on last months share numbers. Also Virtra has control so if the stock price level is to low they can cancel the sale. Kelly never said cash crunch he did say the company was cash flow positive this month. I guess cash flow positive means no need to draw funds

...you didn't clarify in the post that I read (until now) that it was bilo's Q so FWIW I pulled that line from your post about "Virtra Meeting Report...." ...not having had the computer time to be following the board as closely as I had, I am sorry if I was confused as to who asked what and what Kelly's response was to whoever's question... in reading your "Virtra Meeting Report" I think you will agree it was confusing.

Thanks for the clarification and it is also my hope that Kelly doesn't need to draw down that line with Dutchess but I fear that could be a reality as the last read on the SEC filings clearly showed they were still cash strapped (didn't they also have an overdraft situation if my memory serves me correctly?)

And weren't they paying vendors with "cheap" shares? And if the family is selling shares, I wouldn't imagine they are going to be tapped for a loan. Did anyone ask Kelly or address where the funding will be coming from if Dutchess isn't drawn against? Did anyone ask Kelly if he has been putting more money in? Hearing they are capable of producing 100's of units a month would seem to imply that they have money to spare but has that ever been the case? I guess I just found it hard to believe that they have turned the corner and righted their financial ship so quickly. If that were the case it would be great news! The skeptic in me, however, finds that hard to believe LOL I mean, I am assuming they didn't say they were cash flow positive for December <g> ...did they project any further out than merely January?

I sure wish I could have attended that meeting or been following the board more closely to have passed along some Q's to ask although my guess is that might have broached on disclosing material info...

Anyway, as you said, time will tell and hopefully they are cash flow positive for more than just the month of January lol

Again, thanks for the clarification.

best!
kp