Replies to post #10198 on VirTra Inc (VTSI)

[ByloCellhi]

Paul

For what it is worth and many do not like to hear it but as you said "A part of me just can't understand why this company isn't in Chapter 11" - I agree with your assessment.

My background is in finance and credit mgmt - I will never profess to be an expert but you will note I always look at a company's financials and their tangible net worth.

Tangible Net Worth is what banks and companies use to give loans and assign open credit. It is what is left after all the assets and liabilities are liquidated. In this case:

Current Assets $302K and Current Liabilities $9,846K - which is why they are in default of the debts referenced in their SEC filings. Negative cash flow so the debts continue to increase.

Negative Net Worth ($9.3M)
Retained Earnings (14.4M)- the amount of losses since business inception

How are these things usually resolved? Three options: Settlement which they are attempting to accomplish,
Chapter 11/business reorg, or liquidation.

This is why resolution/settlement of the debt is so important.

Significant Profitable Sales is the cure as well!