Here's an excerpt from the 2nd Quarter financials that has not been discussed.
Market Penetration
Since 2004, the installation base of our IVR HD and IVR 4G models continues to grow both internationally and domestically,
as we continually gain new military and law enforcement customers.
While VirTra has reported multiple millions of dollars of sales for several years, it believes that it has only captured about 1%
to 3% of the overall market potential for its current products.
Here is a run down of other companies in the simulation industry and what they provide:
Competition
There are currently no direct competitors to VirTra Systems’ multi-screen high-resolution video simulators, Threat-Fire™
shoot-back devices, or VirTra’s unique immersive training methodologies.
However, competition within the single-screen market is intense. Companies have made essentially the same single-screen
style simulator for the past 15 years or longer.
Some general competitors that promote substitute or similar products are as follows:
Advanced Interactive Systems, Inc. (“AIS”) has been a provider of interactive simulation systems designed to provide
training for law enforcement, military, and security agencies since 1993. Its line of products uses primarily video production in
judgmental training scenarios. AIS also markets to anti-terrorist and other special application training facilities for military and
special operations groups. Its systems have historically used only single screen technology and projectile-based shoot-back
systems. Projectile shoot-back systems require eye-protection, must be aimed, requires picking up the used projectiles,
requires compressed air, and can miss the trainee or even accidently injure the trainee (such as hitting a damaged knee).
VirTra’s Threat-Fire™ device has none of these disadvantages.
Cubic Defense Applications (“Cubic”) performs in a wide range of industries, including military simulation, Cubic currently
produces a product (EST-2000) which was developed many years ago as mainly a marksmanship training system, with limited
immersive combat training capabilities. Cubic focuses on large contracts with the US Army and does not provide a viable law
enforcement product. Due to its pre-existing contract, its size and corporate strength, Cubic is a strong competitor within the
military market for the US Army. Most all of Cubic’s revenue is from military sales.
Meggitt (previously “FATS”) claims to have thousands of training systems installed worldwide by military, law enforcement,
and commercial customers. FATS is a full service training/simulation company that also uses video scenarios with singlescreen
technology for law enforcement. For military use, FATS produces multi-screen computer generated systems that appear
to be several generations behind current technology. FATS also produces other types of simulators and recoil weapons. Cubic
and FATS products are similar in many respects, although FATS has been in the market longer. The majority of FATS
revenue is from military sales.
Laser Shot is a supplier of basic video game simulation equipment to home enthusiasts, all the way up to law enforcement and
military simulators. It is trying to attack many markets simultaneously such as: home use, hunter training, live-fire ranges,
virtual law enforcement and virtual military marketplaces. Laser Shot provides multi-screen systems with computer-generated
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images, but is unable to produce VirTra’s patent-pending Threat-Fire belt or high-resolution video training on multiple screens
(Hybrid-CGI). This company competes with VirTra Systems mainly with military projects.
MPRI (an L-3 Company) is a supplier of single-screen, low-cost simulation equipment to law enforcement or military. MPRI
is believed to have a large install base of simulators. MPRI often competes with Laser Shot and IES, and rarely competes with
VirTra. MPRI is owned by L-3, which is a very large defense company.
IES Interactive Training, Inc. (“IES”) is a supplier of single-screen simulation equipment to law enforcement. IES has
fielded several hundred single screen systems in the law enforcement marketplace.
The above summary of competition is by no means exhaustive but does contain the most active competitors known at this
