VirTra Inc (VTSI)

[imawswami]

bacchus17 good catch...+80% over prior!

Yeah 80% reads a heck of a lot better than 55.4% any
day of the week.

Quick question with important ramifications:

In your perusal of the 10Q, did you find any evidence Virtra loaned Threat Dynamics it's equipment in exchange for partnership consideration?

Personally, with the high "New Equipment" revenues recorded in the Income Statement, and lacking any significant rise in Plant & Equipment in the Balance Sheet it would appear Virtra sold 3 units (at full mark-up....check increase in margins over last quarter as validation) of equipment, while obviously compensating Threat Dynamics in other ways for it's partnership stake.

LoL, and judging by the cash flow statement, Virtra didn't cut T.D. a check, either....

So, that brings us to "other equipment", which would represent warranty and upgrades, peripherals and software.

60k does seem a little light for all those new system sales (and a record 1st quarter btw), and from what is found on the Brazil white paper, software scenarios are sold separately with some systems, that am guessing is for the 1vr-300 and ups. Those programs are sold at over $14K a pop (again off the Brazilian paper).

We also know from the Australian contract Sir Felix found that, the Aussie gov't is going to spend $100k USD a year 2009-2014 to upgrade content, service, and maintain a single IVR-300 system. Guess it ain't cheap to own these suckers!

Anyway, personal belief is that Virtra felt itself in a strong enough position to leverage Threat Dyanmics' absolute need for an exclusivity agreement, that they simply siphoned-off future "other equipment" revenues in exchange for a slice o'pie.

Just a guess.

Your thoughts.......

thanks,
pete