VirTra Inc (VTSI)

[bacchus17]

Swami,

I did leave the Threat Dynamics out on purpose. I'm not confident that those are actual sales. The word 'partner' is used too often. I don't think that is a bad thing though. My secret hope is that Virtra's part of the partnership is providing, yet still owning, the actual simulators.

If Virtra owns the simulators, they could potentially be listed as assets on the balance sheet. Further, through some 'voodoo' bookeeping, they could potentially list those assets at the street value not at the cost. An IVR 360 may cost Virtra $100k in actual hardware, disregarding the cost of software and intellectual property. The street value could be approximated at $500k. Thus, for $300k in hard costs for 3 IVR 360's Virtra could effectively claim $1.5 million in assets.

Further, Virtra would have a recurring revenue from the use of their assets. It's a win-win situation if that's how it is set up. Even further, if TD opens 10 of these under this arrangement, Virtra could list a huge amount of assets at a fraction of the cost.

Details of the arrangement would be interesting to see.

b-17