Replies to post #23440 on 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

[SirFelix]

Nice catch bacchus17, the financials were corrected.

For the quarter ended March 31, 2009, gross revenue grew 80.6% from $522,165 to a record $942,957, due to an overall
increase in sales activity.

General and administration costs are slightly higher from $337,032 for the Q1 ended 2008 up to $357,950 for the year ended
2009. When taking into account the much higher revenue generated in Q1 2009, the general and administration costs are
actually lower as compared to 2008 on a prorated basis.

Net income from operations increased from a loss of ($291,344) for 1st quarter 2008 to a gain of $235,097 for 1st quarter 2009,
this is an increase in operating profit of $526,441.

Net gain per share for the first quarter of 2009 was $.0016 versus a loss of ($.004) per share in 2008.

Overall, VirTra has made significant improvements in financial performance as compared to first quarter 2008. For quarter
ended March 31, 2009, net income is $218,275 compared with a loss of ($518,221) during Q1 2008.

Net income improved a remarkable $736,496 in first quarter 2009 as compared with first quarter 2008.

VirTra’s cash on hand improved to $495,593 as of March 31, 2009. Also, Shareholder’s equity increased to $5.58 million
from $5.36 million as of the end of 2008.