VirTra, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in revenue and profitability compared to the same periods in 2023.

For the three months ended September 30, 2024, total revenue was $7,484,269, a slight decrease from $7,561,582 in the prior year. The revenue breakdown showed that government sales accounted for $6,855,424 (91%), commercial sales were $204,800 (3%), and international sales reached $424,045 (6%). In contrast, for the same period in 2023, government sales were $7,338,205 (97%), commercial sales were $44,853 (1%), and international sales were $178,524 (2%).

For the nine months ended September 30, 2024, total revenue was $21,653,707, down from $27,925,420 in 2023. Government revenue constituted $18,840,601 (87%), commercial revenue was $493,348 (2%), and international revenue totaled $2,319,758 (11%). The STEP program revenue increased to $2,867,023, representing 13% of total net sales, compared to $2,532,223 (9%) in the previous year.

Gross profit for the three months ended September 30, 2024, was $5,497,973, up from $5,386,074 in 2023. However, income from operations fell to $755,632 from $1,669,611, and net income dropped significantly to $583,101 from $1,634,790. For the nine-month period, gross profit decreased to $16,484,729 from $18,255,712, with income from operations declining to $3,285,392 from $7,069,523, and net income falling to $3,000,002 from $5,607,804.

The company’s cash and cash equivalents increased to $19,668,455 as of September 30, 2024, from $18,849,842 at the end of 2023. Total current assets decreased to $44,942,232 from $48,995,288, while total assets also declined to $66,068,377 from $69,634,042. Total liabilities significantly decreased to $19,918,340 from $27,012,175, contributing to an increase in total stockholders’ equity to $46,150,037 from $42,621,867.

Customer deposits fell to $3,017,347 from $4,047,269, indicating a conversion of deposits into revenue. Deferred revenue for extended warranties also decreased, reflecting changes in warranty liabilities and revenue recognition practices. The company continues to focus on its primary revenue sources, including simulator and accessories sales, training, and customizable software sales.