VirTra Inc (VTSI)

[ByloCellhi]

Paper Profit not Operational

The company as Kelly stated in the recent con call will announce a paper profit this week (he stated a few weeks ago the SEC filing would be filed by 2/28).

The paper profit IMO is purely from the debt reduction and the converstion of the leaseholder debt to stock. The company has been accruing interest from the debt each quarter on the income statement. So with that debt now converted that interest will not be paid and a one time non-cash reversal from previous expenses can be taken.

Here are some details:

Revenue:
12/01 Full Year $2.5M or $2,463K
12/02 Full Year $2.3M or $2,280K
12/03 Full Year $1M or $984K
9 Mos as of 9/04 $974K

Interest Expense:
12/01 $1,457K
12/02 $1,549K
12/03 $857K
9 Mos 9/04 $765K
Total $4,628K plus prior years not paid.

This interest expense from prior qtrs/years will be a one time assist to the income statement and will make the company "profitable" but not operationally. In addition, the interest expense line should be reduced with the leaseholder conversion going forward.

This is my interpretation of what will happen. The key is to become cash flow positive from operations. The other issue is what will the outstanding # of shares grow to as of 12/31 as dilution continues.

This is the week Kelly stated we will see the audited filing. Time will tell...