VirTra Inc (VTSI)

[Schneidku40]

I'm wondering the same thing (about the accumulation of cash). It seems like they did really well last year with the trade shows/regional demos they did in terms of cash/advertising expense. They lowered the expenses while still increasing revenue. So maybe they've learned that there are more efficient ways of marketing to get their sales.

Who knows what they have planned with the cash. Maybe they aren't even sure what to do with it. It's not enough to really make a meaningful purchase of another company (even with line of credit they only have about $2-3m to play with). Purchasing shares would help us as shareholders, but it doesn't really help the company grow. That doesn't get them any additional revenue, which a company with $10m in sales needs (to get to $20m, 50m, etc).

Personally I think they should spend it on additional revenue streams or on expanding sales. Taking a big bite out of Cubic's $250m simulation revenue would be nice.

However, they may also need it should a very large order come in. They're going to need to purchase the equipment to create their simulators. If they get even a $10m contract, they may need $2m of working capital just for that.