Friends and shareholders:
Attached please find this morning's press release announcing our third purchase order from the United States Air Force for an IVR 4G-300™ military-version immersive training simulator.
We are naturally pleased that sales in both the military and law enforcement sectors have increased of late. Coming on the heels of our sale to the Army Research Laboratory announced this past Monday, Buckley AFB's sale is nearly as large, and includes many of the company's most popular accessories, such as our Threat-Fire™ belts and flashlight simulation software.
We find particularly encouraging these additional orders and upgrades from the U.S. Air Force, as well as the Army Research Laboratory's order of earlier this week. We believe the word is getting around that not only do we offer superior technology, but also that we deliver on time, our simulators are robust and perform with the highest "up-time" in the industry, and we consistently deliver exceptional after-the-sale service and upgrade opportunities. It's one thing, as last year, to be the new kid on the block offering advanced technology, and quite another being recognized as a growing industry presence with multiple simulators in the field, and happy customers running smoothly-operating, superior simulators.
As mentioned in the release, Buckley AFB also ordered an arsenal of wireless/tetherless weapon training conversion recoil kits, for weapons such as Berretta™ M9 handguns, 12-gauge shotguns, M16 light machine guns and variants, and M240 and M249 heavy machine guns. As you might infer, there will be some serious training conducted inside our simulator.
Buckley AFB has a long and interesting history, and is an integral part of the military’s war efforts. The Army's construction of Buckley field honored the legacy of 1st Lieutenant John Harold Buckley, a Longmont, Colorado native. Lieutenant Buckley lost his life while on a strafing mission behind enemy lines on September 17, 1918. German troops shot down Buckley's aircraft on the third day of the Argonne offensive in France.
Today, Buckley AFB is home to the 460th Space Wing, and will use the IVR 4G simulator to increase its combat-readiness and marksmanship training capabilities. In addition, the 460th Security Forces Squadron, under command of the 460th Space Wing, will utilize the simulator to train its security forces for convoy security operations, close-quarter-combat, and embassy envoy protection in-theater and elsewhere. The 460th Security Forces, Combat Arms Section, trains over 1500 airmen, plus personnel from 24 tenant agencies (e.g., Army, Navy, Marines, U.S. Marshals, Federal Air Marshals, local law enforcement, and many other federal agencies) annually.
In addition to Buckley’s IVR 4G-300, our sales and service departments have also been busy provisioning a simulator upgrade for a prior Air Force customer. The upgrade converted an original IVR HD to an IVR 4G military-version system, and included installation of professional audio monitors and our Hybrid-CGI™ self-authoring scenario creation software.
Our personnel are now returning from our attendance at the International Association of Chiefs of Police trade show and conference in Miami Beach, Florida. Michael Kitchen, our executive vice-president, reported that this has been a very active and successful show – our system and accessories again performed flawlessly throughout the show, we gained important exposure to thousands of the highest ranking, decision-making officials from departments all over the world, and our generation of sales leads has never been greater, with collection of 3-4 times more requests than at any previous show.
From the "FYI" department, this sale to Buckley Air Force Base was in the works for 14 months. As you can see, often events don't move quickly in this industry. However, the sales cycle has now begun to reach the amount of time we've been in the marketplace, which is why we expect sales announcements to begin to reflect the past year's sales activity.
...and from the "gee, I never would have known" department, a shareholder yesterday contacted me and advised that there's a blurb on VirTra Systems' IVR 4G simulator on page 56 of the current edition of Penthouse magazine. It mentions that VirTra Systems has "created a combat simulator that allows players to be 'shot' with an electrical current that has the strength of a stun gun." Gee, I guess the word is spreading to areas I never dreamed possible.
These are simply my personal comments, and should not be relied upon in your investment decisions. I strongly urge you to conduct your own due diligence with regard to any investment in VirTra Systems. I respectfully refer you to VirTra Systems' filings with the United States Securities and Exchange Commission.
--L. Kelly Jones, VirTra Systems CEO
AI
