VirTra Inc (VTSI)

[stk42]

Post-sales revenue stream ...

It's nice to see VTSI 'gaining traction', I just hope they get their speed up before they run out of gas (i.e. - funds)!

I have a couple questions regarding VTSI post-sales revenue stream.

(1) The focus on this board has been sales, but with many software companies, they charge a 'maintenance fee' (typically 10% of the total cost per year) that insures clients receive software upgrades as they come available. Does VTSI have a similar program?

(2) What is the install base for VTSI systems? (How many 'units' have they sold?)

(3) I get the impression that the 'scenarios' are filmed using actors and the software utilizes a decision tree, based on the actions of the person using the simulator. Does VTSI make money filming these 'scenarios'? Can clients buy more and different scenarios? (I'm thinking that VTSI could build a 'library' of scenarios, as they grow, and generate additional revenue by offering additional scenarios for sale to their installed base of clients). Obviously, some scenarios would be client-specific, but as the number of police installations grow, for example, new police scenarios could be added to a growing "police scenario" libarary. The install base of police clients could then purchase newer scenarios, to expand the number of training options they could provide their personnel.

I don't think that I've come across a discussion of post-sales revenue and believe that such a program would do a couple of things: (1) help generate a steady revenue stream for VTSI ... to help with the boom/bust cycle of unit sales and (2) establish a good after-sales relationship with clients, ensuring they have access to up-to-date scenarios and software.

Thanks for your input.