VirTra Inc (VTSI) 2023 Q2 法說會逐字稿

Good afternoon, and welcome to VirTra's Second Quarter 2023 Earnings Conference Call. My name is Kyle, and I'll be your operator for today's call. Joining us for today's presentation are the company's Chairman and Co-CEO, Bob Ferris; Co-CEO, John Givens; and Chief Financial Officer, Alanna Boudreau.

下午好，歡迎參加 VirTra 2023 年第二季度收益電話會議。我叫凱爾，我將擔任您今天通話的接線員。與我們一起參加今天的演講的是公司董事長兼聯合首席執行官鮑勃·費里斯 (Bob Ferris)；聯合首席執行官約翰·吉文斯；首席財務官阿蘭娜·布德羅 (Alanna Boudreau)。

Following their remarks, we will open the call for questions from VirTra's institutional analysts and investors. Before we begin the call, I would like to provide VirTra's safe harbor statement that includes cautions regarding forward-looking statements made during this call. During this presentation, management may discuss financial projections, information or expectations about the company's products and services or markets or otherwise make statements about the future, which are forward-looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made.

在他們發表講話之後，我們將開始向 VirTra 的機構分析師和投資者提問。在我們開始電話會議之前，我想提供 VirTra 的安全港聲明，其中包括有關本次電話會議期間所做前瞻性陳述的警告。在本演示文稿中，管理層可能會討論有關公司產品和服務或市場的財務預測、信息或預期，或以其他方式做出有關未來的陳述，這些陳述是前瞻性的，並受到許多風險和不確定性的影響，可能導致實際結果有所不同實質上來自所做的陳述。

The company does not undertake any obligation to update them as required by law. Finally, I'd like to remind everyone that this call will be made available for replay via the link in the Investor Relations section of the company's website at www.virtra.com.

公司不承擔任何按照法律要求更新的義務。最後，我想提醒大家，本次電話會議將通過公司網站 www.virtra.com 投資者關係部分的鏈接進行重播。

Now I'd like to turn the call over to VirTra's Chairman and Co-CEO, Mr. Bob Ferris. Thank you. And you may proceed, sir.

現在我想將電話轉給 VirTra 董事長兼聯合首席執行官 Bob Ferris 先生。謝謝。您可以繼續了，先生。

Thank you, Kyle, and thank you, everyone, for joining us this afternoon. After the market closed today, we issued a press release that provided our financial results for the second quarter ended June 30, 2023, along with highlighted business accomplishments. We also filed our 10-Q with the SEC today, which is available for your review at your discretion.

謝謝凱爾，也謝謝大家今天下午加入我們。今天收盤後，我們發布了一份新聞稿，提供了截至 2023 年 6 月 30 日的第二季度財務業績，以及重點業務成就。我們今天還向 SEC 提交了 10-Q，供您自行審查。

As a brief overview for today's call, I'll begin by providing highlights for the second quarter 2023, and I'll summarize some of our recent business developments before passing the call to Alanna to discuss our financial results in more detail. John will then come on to discuss operations and our sales initiatives before providing an update on our military market progress.

作為今天電話會議的簡要概述，我將首先介紹 2023 年第二季度的亮點，並總結我們最近的一些業務發展，然後再將電話轉給 Alanna，更詳細地討論我們的財務業績。然後約翰將討論我們的運營和銷售計劃，然後提供有關我們軍事市場進展的最新信息。

After that, I'll come back with some concluding remarks about our progress so far in 2023 before moving to Q&A. And with that, let's begin.

之後，我將在進行問答之前對 2023 年迄今為止我們取得的進展進行一些總結性發言。那麼，讓我們開始吧。

In Q2, VirTra demonstrated exceptional performance, achieving the best financial results in our 30-year history. This success is the culmination of years of effort and a focus on operational excellence. Our internal process improvements have yielded remarkable results, propelling us to record-breaking revenue for the second consecutive quarter.

第二季度，VirTra 表現出色，取得了 30 年曆史上最好的財務業績。這一成功是多年努力和對卓越運營的關注的結晶。我們的內部流程改進取得了顯著成果，推動我們連續第二個季度創紀錄的收入。

During the period, our revenues rose to $10.3 million, a clear testament to the efficiency and effectiveness of our streamlined operations. Our focus on scaling the company and optimizing expenses has translated into our best ever profitability quarter with a remarkable 25% increase in gross profit and net income of $1 million, further reinforcing the strength of our business model and the success of our strategic transformations in recent quarters.

在此期間，我們的收入增至 1,030 萬美元，清楚地證明了我們精簡運營的效率和效果。我們對擴大公司規模和優化費用的關注已轉化為我們有史以來最好的盈利季度，毛利潤顯著增長25%，淨利潤達到100 萬美元，進一步增強了我們業務模式的優勢以及我們近期戰略轉型的成功宿舍。

The results from the first half of 2023 set a strong foundation for the remainder of the year and beyond. But we are not satisfied, and there is still much work to be done as we progress into the second half of the year. Building on our momentum, we will continue to push key areas of our business, ensuring that we extend our market-leading position.

2023 年上半年的業績為今年剩餘時間及以後奠定了堅實的基礎。但我們並不滿足，進入下半年還有很多工作要做。憑藉我們的發展勢頭，我們將繼續推動我們業務的關鍵領域，確保我們擴大市場領先地位。

One of those key areas of focus is actively pursuing product and content developments to enhance value for existing and potential customers while creating new revenue streams. On recent calls, I've talked about VirTra volumetric video or V3, and its potential to advance our customers' training content, which plays a crucial role in attracting and retaining clients.

這些重點關注領域之一是積極追求產品和內容開發，以提高現有和潛在客戶的價值，同時創造新的收入來源。在最近的電話中，我談到了 VirTra 體積視頻或 V3，以及它推進客戶培訓內容的潛力，這在吸引和留住客戶方面發揮著至關重要的作用。

Our industry-leading capabilities in this area are driving the expansion of our market presence. John will elaborate on how we're leveraging our content creation engine to strengthen customer relationships and drive future sales. But today, I'd like to spotlight other product enhancement initiatives. In Q2, we made progress towards improving the ease of use of our software interfaces, allowing customers to concentrate on their training objectives instead of navigating the system.

我們在這一領域的行業領先能力正在推動我們市場份額的擴大。約翰將詳細介紹我們如何利用內容創建引擎來加強客戶關係並推動未來的銷售。但今天，我想重點介紹其他產品增強舉措。第二季度，我們在提高軟件界面的易用性方面取得了進展，使客戶能夠專注於他們的培訓目標，而不是瀏覽系統。

By making our systems more intuitive, we aim to achieve multiple benefits. Firstly, we will reduce customer support instances, saving both us and our customers valuable time. Secondly, enhanced usability will extend our competitive advantage in technology and potentially increase win rates in competitive bids, ultimately driving revenue growth. And lastly, our commitment to creating user-friendly interfaces delivers a superior customer experience and opens us up to a larger market.

通過使我們的系統更加直觀，我們的目標是實現多重好處。首先，我們將減少客戶支持實例，從而節省我們和客戶的寶貴時間。其次，增強的可用性將擴大我們在技術方面的競爭優勢，並有可能提高競爭性投標的中標率，最終推動收入增長。最後，我們致力於創建用戶友好的界面，提供卓越的客戶體驗，並為我們打開更大的市場。

John and the team have been driving opportunities in the military market. In some cases, to support their efforts, VirTra has ended up having engineers build entirely new capabilities never before seen in the market. In fact, during the second quarter, our engineering team has been heavily focused on brand-new capabilities for several pistols for police and revolutionary recoil kit capabilities for military weapons such as the M4 and M249.

約翰和他的團隊一直在推動軍事市場的機遇。在某些情況下，為了支持他們的努力，VirTra 最終讓工程師構建了市場上從未見過的全新功能。事實上，在第二季度，我們的工程團隊一直重點關注幾種警用手槍的全新功能以及 M4 和 M249 等軍用武器的革命性反沖套件功能。

By focusing on these product enhancements and content developments, we are positioned to strengthen our market presence, attract more customers and create sustainable revenue growth. The dedication of our team and the continuous pursuit of excellence propel our success as a technology leader in the industry.

通過專注於這些產品增強和內容開發，我們能夠增強我們的市場影響力，吸引更多客戶並創造可持續的收入增長。我們團隊的奉獻精神和對卓越的不斷追求推動我們成功成為行業技術領導者。

I think it is safe to say that VirTra has invested more time and money into effective training technology, long-term infrastructure and ultra-precise world-class production capabilities than any other company in our industry, and it is not even close. Due to our incredible customer base, we were able to both invest in our business and produce a profit, often a rare combination. Although we remain highly committed to keeping and growing VirTra's strategic advantages in the competitive landscape, it appears much of our capital investments are in the rearview mirror.

我認為可以肯定地說，VirTra 在有效的培訓技術、長期基礎設施和超精密世界級生產能力方面投入的時間和資金比我們行業中的任何其他公司都多，而且還差得遠。由於我們擁有令人難以置信的客戶群，我們能夠既投資我們的業務又產生利潤，這通常是一種罕見的組合。儘管我們仍然高度致力於保持和發展 VirTra 在競爭格局中的戰略優勢，但我們的大部分資本投資似乎都已成為過去。

Along with product R&D, we continue making progress towards building reliable, scalable operations, and a big part of that effort has been the centralization of our facilities. In Q2, we entered the final phase of consolidating our operations under one roof. I know John and I are both happy that we're in the final phase, it's been a whole lot of work.

在產品研發的同時，我們在建立可靠、可擴展的運營方面不斷取得進展，其中很大一部分努力就是我們設施的集中化。第二季度，我們進入了集中運營的最後階段。我知道約翰和我都很高興我們已經進入最後階段，這需要大量的工作。

This milestone involve bringing our advanced machinery in the headquarters and winding down construction. This brings multiple operational and cost efficiencies immediately. Additionally, we are opening a dedicated training center within our headquarters in the second half of the year. The basis for opening this facility is to further develop our relationships with existing and potential customers.

這一里程碑涉及將我們的先進機械引入總部並逐步結束施工。這立即帶來了多種運營和成本效率。此外，我們將於今年下半年在總部開設一個專門的培訓中心。開設該設施的基礎是進一步發展我們與現有和潛在客戶的關係。

We believe that offering expanded training services will naturally lead to greater adoption of our products by showcasing their potential and value. As we move into the second half of the year, we remain focused on growing our global footprint and broadening our reach in the industry. Under John's leadership, we have made remarkable advancements in our operations, and they showed up in the first half results -- first half of the year results.

我們相信，提供擴展的培訓服務自然會通過展示我們的產品的潛力和價值而導致更多人採用我們的產品。進入下半年，我們仍然專注於擴大我們的全球足跡並擴大我們在行業中的影響力。在約翰的領導下，我們的運營取得了顯著的進步，這些進步體現在上半年的業績中——上半年的業績。

We're witnessing healthy demand driven by our commitment to offer the industry's best training solutions. This demand is particularly evident given the rise of international military threats and the intensifying challenges faced by local, state and federal law enforcement agencies in America concerning policing. The spotlight on policing reform in Washington underscores significance of equipping personnel with the very best training, making our solutions even more essential in these difficult times.

我們致力於提供業界最佳的培訓解決方案，因此我們看到了健康的需求。鑑於國際軍事威脅的增加以及美國地方、州和聯邦執法機構在警務方面面臨的日益嚴峻的挑戰，這一需求尤為明顯。對華盛頓警務改革的關注凸顯了為人員提供最好培訓的重要性，使我們的解決方案在這些困難時期變得更加重要。

With this in mind, let's take a finer look at how each of our end markets perform. In Q2, our government revenue increased by 285% to $9.5 million from $2.5 million in the prior year. The strong succuss is a result of improved performance in the law enforcement market, increases in federal government police contracts and some early traction in the military market.

考慮到這一點，讓我們仔細看看每個終端市場的表現。第二季度，我們的政府收入從上一年的 250 萬美元增加到 950 萬美元，增長了 285%。這種強勁的成功是執法市場績效改善、聯邦政府警察合同增加以及軍事市場早期吸引力的結果。

Internationally, our revenue decreased by $1.2 million to $0.7 million. This can be primarily attributed to the anticipated timing patterns of international order placement, which John will discuss in further detail shortly. We have reported continual growth from our subscription training equipment partnership or STEP program, which provides recurring revenue for VirTra and offers an easier on-ramp for smaller agencies interested in our solution that are perhaps budget constrained for an outright purchase.

在國際方面，我們的收入減少了 120 萬美元，降至 70 萬美元。這主要歸因於國際訂單下達的預期時間模式，約翰將很快對此進行更詳細的討論。我們報告了我們的訂閱培訓設備合作夥伴關係或STEP 計劃的持續增長，該計劃為VirTra 提供了經常性收入，並為對我們的解決方案感興趣的小型機構（可能因直接購買而預算有限）提供了更輕鬆的入門通道。

This also gives our staff another tool in closing the sale. Currently, our recurring revenue, including warranty revenue represents 17% of the total quarterly revenue, but we expect this to increase in the future. Together with our talented team and the unwavering support of our customers, we are well positioned to continue driving progress. This record-setting quarter serves as a testament to the solid foundations we have laid for profitable growth.

這也為我們的員工提供了另一種完成銷售的工具。目前，我們的經常性收入（包括保修收入）佔季度總收入的 17%，但我們預計這一比例未來會增加。憑藉我們才華橫溢的團隊和客戶堅定不移的支持，我們有能力繼續推動進步。這個創紀錄的季度證明了我們為盈利增長奠定了堅實的基礎。

But we remain committed to seeking further opportunities for improvement. With the reputation of delivering the gold standard training solutions and exceptional client base and experienced leadership, we have advantages of our competition, but we mustn't slow down, not even for a second, and we still have much to improve at VirTra. Moving forward, our focus is on enhancing customer relations through new products, technological upgrades and operational improvements.

但我們仍然致力於尋求進一步改進的機會。憑藉提供黃金標準培訓解決方案的聲譽、卓越的客戶群和經驗豐富的領導力，我們在競爭中具有優勢，但我們絕不能放慢腳步，一秒鐘都不能，而且VirTra 仍有很多需要改進的地方。展望未來，我們的重點是通過新產品、技術升級和運營改進來加強客戶關係。

I will now turn the call over to Alanna to discuss the financial results in greater detail. Alanna?

我現在將把電話轉給阿蘭娜，更詳細地討論財務業績。阿蘭娜？

Thank you, Bob. Good afternoon, everyone. It's a pleasure to be speaking to you today to review our unaudited financial results for the second quarter ending June 30, 2023. Our total revenue for the first 6 months of 2023 increased 38% to $20.4 million from $14.8 million in the prior year period. For the second quarter of 2023, revenue increased 29% to $10.3 million from $8 million in the second quarter of 2022.

謝謝你，鮑勃。大家下午好。很高興今天與您交談，回顧我們截至2023 年6 月30 日的第二季度未經審計的財務業績。我們2023 年前6 個月的總收入從去年同期的1,480 萬美元增長了38%，達到2,040 萬美元。 2023 年第二季度的收入從 2022 年第二季度的 800 萬美元增長 29% 至 1030 萬美元。

The increase in revenue resulted from improvements in operations, which helped move through the backlog and ship orders at a record pace. Our gross profit for the first 6 months of 2023 increased 25% to $12.9 million or 63% of revenue compared to $8.4 million or 57% of revenue in the prior year period. The increase in gross profit margin was primarily due to the increased sales achieved while maintaining cost of sales in line with 2022 levels.

收入的增長得益於運營的改善，這有助於以創紀錄的速度處理積壓訂單和發貨訂單。 2023 年前 6 個月的毛利潤增長了 25%，達到 1,290 萬美元，佔收入的 63%，而去年同期為 840 萬美元，佔收入的 57%。毛利率的增加主要是由於在將銷售成本保持在 2022 年水平的同時實現了銷售額的增加。

For the second quarter, gross profit increased 25% to $5.9 million or 57% of revenue from $4.7 million or 49% of revenue in the second quarter of 2022. The decrease in the gross profit margin resulted from the onetime inventory adjustments made when we went live with our new ERP system, which had the effect of increasing cost of sales in Q2 of 2023.

第二季度的毛利潤增長了25%，達到590 萬美元，佔收入的57%，而2022 年第二季度的毛利潤為470 萬美元，佔收入的49%。毛利率的下降是由於我們去時進行的一次性庫存調整所致。使用我們的新 ERP 系統，該系統導致 2023 年第二季度的銷售成本增加。

Our net operating expense for the first 6 months increased to $7.5 million from $6.7 million in the prior year period. Net operating expense for the second quarter of 2023 was $4 million compared to $3.7 million in the second quarter of last year. The increase in net operating expense was primarily due to increases in salaries and benefits due to additional staff and expenses for the new Orlando office as well as a $100,000 increase in R&D spend.

我們前 6 個月的淨運營費用從去年同期的 670 萬美元增加到 750 萬美元。 2023 年第二季度的淨運營費用為 400 萬美元，而去年第二季度為 370 萬美元。淨運營費用的增加主要是由於奧蘭多新辦事處的人員和費用增加以及研發支出增加 100,000 美元導致工資和福利增加。

Turning to our profitability measures. For the first 6 months of 2023, our operating income jumped to $5.4 million compared to $1.8 million in the prior year period. For the second quarter of 2023, operating income increased to $1.9 million from $1 million in the second quarter of 2022. Net income for the first 6 months of 2023 increased by $2.6 million to $4 million compared to $1.4 million in the prior year period.

轉向我們的盈利能力指標。 2023 年前 6 個月，我們的營業收入躍升至 540 萬美元，而上年同期為 180 萬美元。 2023 年第二季度，營業收入從2022 年第二季度的100 萬美元增至190 萬美元。2023 年前6 個月的淨利潤從上年同期的140 萬美元增加了260 萬美元，增至400萬美元。

Net income for the second quarter of 2023 totaled $1 million or $0.09 per diluted share, which represents an increase compared to net income of $0.8 million or $0.07 per diluted share in the second quarter of 2022. For the first 6 months of 2023, adjusted EBITDA increased to $6.5 million from $2.3 million in the prior year period. Adjusted EBITDA, a non-GAAP metric, for the second quarter of 2023 increased to $2.6 million from $1.3 million in the second quarter of 2022.

2023 年第二季度的淨利潤總計100 萬美元，即每股攤薄收益0.09 美元，較2022 年第二季度的淨利潤80 萬美元，即每股攤薄收益0.07 美元有所增長。2023 年前6 個月，調整後EBITDA從去年同期的 230 萬美元增加到 650 萬美元。 2023 年第二季度的調整後 EBITDA（非 GAAP 指標）從 2022 年第二季度的 130 萬美元增至 260 萬美元。

Now turning to our bookings and backlog. We define bookings as the total of newly signed contracts and purchase orders received in a defined period. For the second quarter of 2023, we received bookings totaling $8.4 million. And we define backlog as the accumulation of bookings from signed contracts and purchase orders that are not yet started or incomplete and cannot be recognized as revenue until delivered in a future period. As of June 30, 2023, our backlog totaled $16.4 million. The breakout of this backlog includes $7.8 million in capital, $6.3 million in service and warranties and $2.3 million in STEP contracts.

現在轉向我們的預訂和積壓。我們將預訂量定義為在規定時間內新簽訂的合同和收到的採購訂單的總數。 2023 年第二季度，我們收到的預訂總額為 840 萬美元。我們將積壓訂單定義為已簽署的合同和尚未開始或不完整的採購訂單的預訂累積，只有在未來一段時間內交付才能確認為收入。截至 2023 年 6 月 30 日，我們的積壓訂單總額為 1,640 萬美元。此次積壓訂單的突破包括 780 萬美元的資本、630 萬美元的服務和保修以及 230 萬美元的 STEP 合同。

Despite being lower compared to June 30, 2022, this backlog still provides opportunity in the second half of 2023. As a reminder, service warranties and STEP backlog as revenue will be recognized on a straight-line basis over the next 7 years. In addition to the backlog, there are $7 million in potential renewable STEP contracts that would represent additional revenue for the next 5 years. Historically, we've had greater than a 95% renewal rate on our STEP contracts.

儘管與2022 年6 月30 日相比有所下降，但該積壓訂單仍為2023 年下半年提供了機會。需要提醒的是，服務保修和STEP 積壓訂單將在未來7 年以直線法確認為收入。除了積壓訂單之外，還有 700 萬美元的潛在可續簽 STEP 合同，這將代表未來 5 年的額外收入。從歷史上看，我們的 STEP 合同續約率超過 95%。

And finally, to our balance sheet. As of June 30, 2023, we had unrestricted cash and cash equivalents of $13.3 million, a decrease from the $14.3 million at March 31, 2023, and a decrease from the $13.5 million at December 31, 2022. From a working capital standpoint, at the end of the second quarter, we had $26.6 million in working capital, an increase of $24.3 million at the end of Q1.

最後，我們的資產負債表。截至2023年6月30日，我們的非限制現金和現金等價物為1,330萬美元，較2023年3月31日的1,430萬美元有所減少，較2022年12月31日的1,350萬美元有所減少。從營運資金的角度來看，截至第二季度末，我們的營運資金為 2660 萬美元，比第一季度末增加了 2430 萬美元。

For additional details of our financial results, please reference our 10-Q, which was filed earlier today. And that concludes my prepared remarks. And now I'll turn it over to John to discuss operations.

有關我們財務業績的更多詳細信息，請參閱今天早些時候提交的 10-Q 報告。我準備好的發言就到此結束。現在我將把它交給約翰討論操作。

Thanks, Alanna, and good afternoon, everyone. I'd like to provide you with an update on our overall company operations and our progress in the military market. First, it's important to note that our operational transformation and the full reimplementation of the ERP have been highly successful, resulting in the significant improvements across our operations, allowing for us to serve our customers and position ourselves for suitable growth moving forward.

謝謝阿蘭娜，大家下午好。我想向您介紹我們公司整體運營情況以及我們在軍事市場的進展情況。首先，值得注意的是，我們的運營轉型和 ERP 的全面重新實施非常成功，使我們的運營得到了顯著改善，使我們能夠為客戶提供服務，並為未來的適當增長做好準備。

This successful implementation has effectively increased our capacity to install systems in an efficient manner while also enhancing our customer service capabilities. Furthermore, we have advanced our supply chain management, minimizing potential delays or disruptions and optimizing our overall performance. With those streamlined processes and a scalable infrastructure, we have also improved inventory management, allowing for timely order fulfillment and greater financial visibility.

此次成功實施有效提高了我們高效安裝系統的能力，同時也增強了我們的客戶服務能力。此外，我們還推進了供應鏈管理，最大限度地減少了潛在的延誤或中斷，並優化了我們的整體績效。憑藉這些簡化的流程和可擴展的基礎設施，我們還改進了庫存管理，從而能夠及時履行訂單並提高財務可見性。

These developments set the stage for effective scaling, enabling us to meet future demands and capitalize on new opportunities. Applying the same focus and tenacity, we are proactively taking measures to increase our bookings and unlock our full market potential, both domestically and internationally.

這些發展為有效擴展奠定了基礎，使我們能夠滿足未來的需求並利用新的機遇。我們秉承同樣的專注和堅韌，積極採取措施增加預訂量並釋放我們的全部市場潛力，無論是國內還是國際。

Our sales enhancement initiatives are already underway and it's our top priority as we strive to surpass our year-over-year bookings performance. While lower bookings in the first half are not uncommon due to budget cycles and decision-making patterns, the significant progress we've made to clear out backlog so far this year positioned us with $16.4 million in backlog as we enter Q3. While that presents a challenge for us, it also provides clarity on our capability to sell and deliver in a timely manner. The standard federal budget cycle in Q3 provides a strategic opportunity for us to bolster those sales efforts and further prop up the backlog, helping us maintain this momentum that you're seeing.

我們的銷售提升計劃已經在進行中，這是我們的首要任務，因為我們努力超越我們的同比預訂業績。雖然由於預算週期和決策模式的原因，上半年預訂量下降並不罕見，但今年迄今為止，我們在清理積壓訂單方面取得了重大進展，進入第三季度時，我們的積壓訂單已達到1,640 萬美元。雖然這對我們來說是一個挑戰，但它也讓我們清楚地了解了我們及時銷售和交付的能力。第三季度的標準聯邦預算週期為我們提供了一個戰略機會，可以加強這些銷售工作並進一步支撐積壓，幫助我們保持您所看到的這種勢頭。

As a key part of our sales initiatives, we're focusing on establishing our presence and thought leadership showcasing our capabilities in creating top-tier scenario training. Our success hinges on the quality of our scenario building and our expert training personnel already serving law enforcement and government agencies nationwide. With our exceptional training service, including at regional training centers and our new training center at headquarters, complemented by our cutting-edge content creation using our V3 technology, we are creating pathways to customer acquisition and retention.

作為我們銷售計劃的關鍵部分，我們專注於建立我們的影響力和思想領導力，展示我們在創建頂級場景培訓方面的能力。我們的成功取決於我們場景構建的質量以及我們已經為全國執法和政府機構服務的專家培訓人員。憑藉我們卓越的培訓服務（包括區域培訓中心和總部的新培訓中心），再加上我們使用 V3 技術創建的尖端內容，我們正在創造獲取和保留客戶的途徑。

Leveraging these lower revenue training opportunities at an entry point, we highlight our expertise and build lasting relationships with customers. As we innovate and expand our offerings, these relationships become stepping stones to those higher-yielding engagements. As part of our comprehensive sales strategy, we are not only emphasizing our thought leadership and exceptional training service, but also undertaking significant restructuring and expansion efforts.

在切入點利用這些較低收入的培訓機會，我們突出我們的專業知識並與客戶建立持久的關係。隨著我們創新和擴展我們的產品，這些關係成為那些更高收益的合作的墊腳石。作為我們全面銷售戰略的一部分，我們不僅強調我們的思想領導力和卓越的培訓服務，而且還進行重大的重組和擴張工作。

We are prioritizing sales territories and actively hiring and onboarding new sales staff to strengthen our market presence and reach. The sales life cycle for law enforcement, it mirrors that of the U.S. government and military customers I've dealt with in the past, meaning a constant presence is essential given localized politics to navigate, in-person demonstrations offer valuable insight into these organizations, their funding processes and on-site training needs.

我們正在優先考慮銷售區域，並積極招聘和入職新的銷售人員，以加強我們的市場影響力和影響力。執法部門的銷售生命週期，它反映了我過去接觸過的美國政府和軍事客戶的銷售生命週期，這意味著考慮到本地化政治的引導，持續存在是至關重要的，現場演示可以提供對這些組織的寶貴見解，他們的融資流程和現場培訓需求。

With the sales cycle spend in 6 to 18 months, it's crucial to have boots on the ground engaging directly with the customers to cultivate these relationships and expand our footprint. This strategic approach involves increasing our sales staff by an ambitious 35% allowing us to tap into new markets and seize growth opportunities. To attract the best talent, we're putting together enticing incentives that reward success aligned with our vision for the company's future.

由於銷售週期為 6 至 18 個月，因此必須親自與客戶直接接觸，以培養這些關係並擴大我們的足跡。這一戰略方法包括雄心勃勃地將我們的銷售人員增加 35%，以便我們能夠開拓新市場並抓住增長機會。為了吸引最優秀的人才，我們制定了誘人的激勵措施，獎勵與我們對公司未來願景相符的成功。

By restructuring our sales territories and expanding our team, we are positioning ourselves to proactively understand and meet the evolving demands of our customer base and capitalize on those emerging opportunities. This forward-thinking approach, combined with our focus on content creation, scenario building, new product development that Bob mentioned and exceptional training services create a compelling and well-rounded sales initiative that propels us forward towards continued success and growth in the industry.

通過重組我們的銷售區域和擴大我們的團隊，我們將自己定位為主動了解和滿足客戶群不斷變化的需求，並利用這些新興機會。這種前瞻性的方法，加上我們對鮑勃提到的內容創建、場景構建、新產品開發的關注以及卓越的培訓服務，創造了引人注目的全面銷售計劃，推動我們在行業中不斷取得成功和增長。

To bolster our global footprint, we are adding international salespeople who will cover Central and South America, Canada, Africa, Europe and Asia to cultivate and grow our international pipeline. Speaking specifically about our military operations in Q2, a little better than expected. We have been proactively building a robust pipeline of leads and connections. Progress has been promising, and we have already recorded $4 million in military-related contracts year-to-date surpassing our internal target set for the beginning of the Department of Defense fiscal 2024 in October of 2023.

為了擴大我們的全球足跡，我們正在增加國際銷售人員，他們將覆蓋中美洲和南美洲、加拿大、非洲、歐洲和亞洲，以培育和發展我們的國際渠道。具體來說，我們第二季度的軍事行動比預期要好一些。我們一直在積極建立強大的潛在客戶和聯繫渠道。進展令人鼓舞，今年迄今為止，我們已經在軍事相關合同中記錄了 400 萬美元，超過了我們為 2023 年 10 月國防部 2024 財年伊始設定的內部目標。

Given the highly competitive nature and the security sensitive aspects of these contracts, we are exercising caution in sharing these specific detail about these contracts at this time. However, we are confident in our positioning for future growth in the military market. We remain dedicated to nurturing those existing relationships and cultivating those new leads and leveraging our strategic Orlando location to strengthen those ties within the industry and capitalize on those opportunities.

鑑於這些合同的高度競爭性質和安全敏感方面，我們目前在分享這些合同的具體細節時保持謹慎。然而，我們對軍事市場未來增長的定位充滿信心。我們仍然致力於培育現有的關係和培養新的潛在客戶，並利用我們在奧蘭多的戰略位置來加強行業內的聯繫並利用這些機會。

We consider this phase to be -- to just be underway. And as we continue to execute on these initiatives, we eagerly anticipate sharing our progress and achievement with you in the coming quarters. Our commitment to excellence and our long-standing connections with the industry provide a strong foundation for success as we forge ahead in this important market segment. With our proactive approach and the addition of new talent, we're confident in our ability to effectively capture and capitalize on that potential growth opportunity in both the domestic and international markets, delivering exceptional value to the clients, remained at the core of our strategy and our prioritization of superior technology has positioned us competitively to satisfy those customers' needs.

我們認為這個階段剛剛開始。隨著我們繼續執行這些舉措，我們熱切期望在未來幾個季度與您分享我們的進展和成就。我們對卓越的承諾以及與行業的長期聯繫為我們在這一重要市場領域的奮進提供了成功的堅實基礎。通過我們的積極主動的方法和新人才的加入，我們相信我們有能力有效地捕捉和利用國內和國際市場的潛在增長機會，為客戶提供卓越的價值，這仍然是我們戰略的核心我們對卓越技術的優先考慮使我們具有競爭力，可以滿足這些客戶的需求。

We remain dedicated to the mission of driving revenue while delivering a quality training product and through -- and though we are just getting started, I am optimistic about our prospects. While Q2 and the first half of Q3 yielded strong results, the quality of our product and exceptional staff suggest that we have just begun to realize our potential. I look forward to updating you on all the progress in our future quarters.

我們仍然致力於在提供優質培訓產品的同時增加收入的使命——儘管我們才剛剛開始，但我對我們的前景感到樂觀。雖然第二季度和第三季度上半年取得了強勁的業績，但我們的產品質量和優秀的員工表明我們才剛剛開始實現我們的潛力。我期待向您通報我們未來幾個季度的所有進展情況。

And now I'll turn the call back over to Bob. Thank you.

現在我將把電話轉回給鮑勃。謝謝。

Thanks, John. The first half of 2023 has been marked by significant milestones, including the addition of key new talent and the implementation of effective processes to support increased business volume, leading to back-to-back record-breaking quarters. We recognized there are still areas needing improvement and far more growth potential and we are proactively addressing these opportunities, as John has just mentioned.

謝謝，約翰。 2023 年上半年出現了一些重要的里程碑，包括增加關鍵新人才以及實施有效的流程來支持業務量的增長，從而實現了連續兩個季度的破紀錄記錄。我們認識到仍然存在需要改進的領域和更大的增長潛力，正如約翰剛才提到的，我們正在積極抓住這些機會。

Our focus remains on strengthening our business pipeline in key markets, embracing a culture of world-class operations, and ensuring we deliver quality to our customers. I'd like to extend my gratitude to the entire VirTra team. These record shattering results are due to their hard work and dedication. Moving forward, I'm confident in our ability to sustain this momentum under leadership of John Givens, who has proven his exceptional effectiveness, time and time again.

我們的重點仍然是加強我們在主要市場的業務渠道，擁抱世界一流的運營文化，並確保我們為客戶提供高質量的服務。我要向整個 VirTra 團隊表示感謝。這些破紀錄的成績歸功於他們的辛勤工作和奉獻精神。展望未來，我對我們在約翰·吉文斯的領導下維持這一勢頭充滿信心，他一次又一次地證明了他卓越的效率。

And with that, we'll open up the call for your questions. Operator, please provide the appropriate instructions.

至此，我們將開始電話詢問您的問題。操作員，請提供適當的說明。

(Operator Instructions) Our first question comes from Jaeson Schmidt with Lake Street.

（操作員說明）我們的第一個問題來自 Lake Street 的 Jaeson Schmidt。

Congrats on another strong quarter. Just want to focus on the military market first. Just going forward, is the team in structure fully built out at this point for that business?

祝賀又一個強勁的季度。只是想先關注軍事市場。展望未來，目前該業務的團隊結構是否已完全建立？

Yes. Thanks for that question. It's getting close. We're targeting specific individuals for that space. And to answer your question, we're probably about 75%.

是的。謝謝你提出這個問題。越來越近了。我們針對該空間的特定個人。回答你的問題，我們大概是 75%。

Okay. That's helpful. And then the consolidation, I know you said you're entering the final phase here. So should we expect to see sort of the full benefit from the efficiencies in Q4? Or will we start to see a big chunk of that in Q3 here as well?

好的。這很有幫助。然後是整合，我知道你說過你正在進入最後階段。那麼我們是否應該期望看到第四季度效率的全部好處？或者我們也會在第三季度開始看到其中的很大一部分嗎？

Bob, do you want to take that one?

鮑勃，你想買那個嗎？

Sure. So I think the total efficiencies with the final phase would be more showing up in fourth -- some of fourth quarter and certainly by Q1 of next year. So we're expecting to have all the final phases done in by fourth quarter, hopefully, and a lot of that done in third quarter. We have had challenges with construction, deadlines, no matter how much hair I lose over it or John, we've struggled with getting the time lines where we want. But we shifted -- John recommended we shift contractors. And so far, that's working out a lot better. So we're now getting more confident that it would be third quarter or fourth quarter based on the latest contractor we're using.

當然。因此，我認為最後階段的總效率將更多地體現在第四季度——第四季度的一些時間，當然到明年第一季度。因此，我們希望在第四季度完成所有最後階段，並希望在第三季度完成大部分工作。我們在施工和最後期限方面遇到了挑戰，無論我或約翰為此失去了多少頭髮，我們都在努力爭取我們想要的時間線。但我們換了——約翰建議我們換承包商。到目前為止，效果好多了。因此，我們現在更有信心，根據我們使用的最新承包商，這將是第三季度或第四季度。

I'll give you another example as well. So timing is everything. You can't shut down a machine shop in your production lines for very long. And some of the contracts that we've talked about have specific deadlines. So we've shifted the shutdown of our machine shop for the move until we finish that. So we have no hiccups. So that's why there'll be a little bit of a delay of seeing the efficiencies just so that we perform above expectations on the current contracts that we have.

我還將給你另一個例子。所以時機就是一切。您無法長時間關閉生產線上的機加工車間。我們討論過的一些合同有具體的截止日期。因此，我們已將機械車間的關閉時間推遲到搬遷完成為止。所以我們沒有任何問題。因此，這就是為什麼我們會稍微延遲一下看到效率的原因，以便我們在現有合同上的表現超出預期。

Yes. The focus of making that a seamless -- as seamless as possible transition since we have a lot of pressure on us to maintain our productivity each day.

是的。重點是實現無縫過渡——盡可能無縫過渡，因為我們每天都面臨著維持生產力的巨大壓力。

Okay. That makes sense. And then just the last 1 for me, and I'll jump back in the queue. Obviously, you guys gave your bookings and backlog. But how should we think about for Q3? Or any additional color you could provide on order patterns here in the first 6 weeks of the quarter.

好的。這就說得通了。然後我就跳回隊列中的最後 1 個。顯然，你們已經提供了預訂和積壓訂單。但我們應該如何思考第三季度呢？或者您可以在本季度的前 6 週內根據訂單圖案提供任何其他顏色。

John, do you want to take that one?

約翰，你想拿那個嗎？

Yes. Order patterns right now, when -- I'll speak specifically about military. Budget cycles end September 30. So unfortunately, everybody waits until the final hour trying to move that money. So we won't see anything from the military until we've gotten some early -- we've been pushing and gotten some early revenue from military. On our regular orders, we are seeing a steady, but there -- like we had talked about on previous calls, there is a drop between second and third quarter, and we've seen that same trend but we are starting to see the orders and we're starting to see, I guess, you'd say, positive movement for third quarter. I hope that answered the question.

是的。現在的訂單模式，當——我將專門談論軍事方面。預算週期於 9 月 30 日結束。不幸的是，每個人都等到最後一刻才試圖轉移這筆錢。因此，在我們提前獲得一些收入之前，我們不會從軍隊中看到任何東西——我們一直在推動並從軍隊中獲得了一些早期收入。在我們的常規訂單中，我們看到了穩定的情況，但是就像我們在之前的電話會議上談到的那樣，第二季度和第三季度之間出現了下降，我們已經看到了相同的趨勢，但我們開始看到訂單我想，你會說，我們開始看到第三季度的積極進展。我希望這回答了問題。

No, that's really helpful.

不，這真的很有幫助。

I would add to that, that John has really been focused on the international market as well. And so the international market can also assist with having larger sales come in on kind of the times that are not as cyclical. And so a lot of times, that's -- their timing on international is based on the country and their budget -- their internal budget cycle or award process, and those are not normally in sync with the U.S. federal government cycle. So -- so the part of John's push for international sales is also along the lines of bolstering our sales throughout the year, if that makes sense.

我想補充一點，約翰也確實專注於國際市場。因此，國際市場也可以幫助在非週期性時期實現更大的銷售額。所以很多時候，他們在國際上的時間安排是基於國家和預算的——他們的內部預算週期或獎勵流程，而這些通常與美國聯邦政府的周期不同步。因此，約翰推動國際銷售的一部分也是為了促進我們全年的銷售，如果這有意義的話。

Our next question comes from Richard Baldry with ROTH MKM.

我們的下一個問題來自 ROTH MKM 的 Richard Baldry。

Just looking on the balance sheet, there's a pretty unusual spike to receivables. It looks like if you had had what do we call normalized levels of DSOs, you'd have almost 2x the cash on the balance sheet that you have right now. So wonder if you can talk through why that very large step up. I mean, it's disproportionately into revenues, you put up the bookings, et cetera. So how should we think about that? And when should that normalize to generate the cash.

只要看看資產負債表，應收賬款就出現了相當不尋常的飆升。看起來，如果你的 DSO 處於我們所說的標準化水平，你的資產負債表上的現金幾乎是現在的兩倍。因此，想知道您是否可以談談為什麼要採取如此大的進步。我的意思是，它與收入不成比例，你進行預訂等等。那麼我們應該如何思考呢？何時應該正常化以產生現金。

Yes, I can take that, guys. So one of the things we had to do when we transitioned software from one DRP to rebooting was we had to invoice and move everything to a receivable section in order to be able to move it over. That caused a spike in the receivables, you'll see a decrease in the unbilled revenue. So a lot of those were, in some cases, invoices for partial deliveries where we -- before we're in the habit of only sending invoices when everything was fully completed.

是的，我可以接受，伙計們。因此，當我們將軟件從一個 DRP 過渡到重新啟動時，我們必須做的一件事是，我們必須開具發票並將所有內容移至應收部分，以便能夠將其轉移。這導致應收賬款激增，您會看到未開票收入減少。因此，在某些情況下，其中很多是部分交付的發票，在此之前我們習慣於僅在一切完全完成後才發送發票。

So we should start to see some of that convert in the next -- this quarter and the beginning of fourth quarter into cash. I hope that helps.

因此，我們應該開始看到其中一些在下一個季度和第四季度初轉化為現金。我希望這有幫助。

Okay. Great. Yes, it does. And can you talk about -- is there a way to think about what a comfortable level of backlog to operate with would be now? You've demonstrated an ability to ship for or do a throughput against orders now that's much faster. So do we think about it in dollar terms, months of revenues? Or is there some other way to try to think about what a good level for that should be?

好的。偉大的。是的，它確實。您能否談談——有沒有一種方法可以考慮現在的待辦事項的舒適水平是多少？您已經展示了運送訂單或處理訂單吞吐量的能力，現在速度要快得多。那麼我們是否以美元、月收入來考慮？或者是否有其他方法來嘗試思考一個好的水平應該是多少？

So there's -- as we've started to break out the backlog to help give some transparency because some of those we -- those are healthy, right? The warranty and backlog step, things that are going to take time. The capital systems are the ones in which we normally have either been held up by our own internal processes to where things don't get produced quick enough or the client has requested a certain delay.

因此，當我們開始清理積壓的訂單以幫助提供一些透明度時，因為我們中的一些訂單是健康的，對嗎？保修和積壓步驟需要時間。在資本系統中，我們通常要么受到我們自己的內部流程的阻礙，導致生產速度不夠快，要么客戶要求一定的延遲。

But technically speaking, VirTra would be wise to have the capacity to fill orders within 7 to 30 days on a normalized basis, no matter how large the simulator contract is. Now in the military circles where John Givens has cut his teeth, there have been contracts that were 900 simulators, actually a little over 900 simulators and those don't filled in a 30-day process per contract.

但從技術上講，無論模擬器合同有多大，VirTra 明智的做法是在正常情況下有能力在 7 至 30 天內完成訂單。現在，在約翰·吉文斯 (John Givens) 涉足的軍事領域，合同中有 900 個模擬器，實際上略多於 900 個模擬器，而且每份合同都沒有填寫 30 天的流程。

So -- so those would be a different -- a bit of an exception if we were fortunate enough to land things like that. But on an ongoing basis, when it comes to selling a product via capital, just somebody buying the product, not a subscription service, then that should be done quite rapidly outside of the fact, we sometimes have a customer say, you know what, I know you have it ready, but please hold on to it for a couple of months for me and then ship it.

所以——所以那些會是不同的——如果我們足夠幸運能夠得到這樣的東西，那就有點例外了。但在持續的基礎上，當談到通過資本銷售產品時，只要有人購買產品，而不是訂閱服務，那麼這應該在事實之外很快完成，我們有時會有客戶說，你知道嗎，我知道您已經準備好了，但請幫我保留幾個月，然後再發貨。

Okay. And I'm not sure if I heard this exactly right, but it sounded like military orders here to date are actually above your 2024 goal for a year, again, I may have heard that somewhat wrong, but the question would be, if you're at about 75% of the infrastructure facility staffing kind of needs you have in that military world, with orders there strong, do you think that you need to accelerate sort of finishing up that remaining 25% to get that fully staffed up and ramped?

好的。我不確定我聽到的是否完全正確，但聽起來迄今為止這裡的軍事訂單實際上比你的 2024 年目標高出一年，再次，我可能聽說有些錯誤，但問題是，如果你軍事世界中大約有75% 的基礎設施人員配備需求，而且訂單強勁，您認為您是否需要加快完成剩餘25% 的工作，以實現人員配備充足並擴大規模？

Yes. It was kind of a twisted sentence there. So what that sentence meant was is that we're already $4 million ahead of what our expectation was when we start the October '24 fiscal year. We didn't expect to collect any revenue until that starts. So we've already collected $4 million in military contracts at that point.

是的。這句話有點扭曲。這句話的意思是，當我們開始 24 年 10 月的財政年度時，我們已經比我們的預期提前了 400 萬美元。在此之前，我們預計不會收到任何收入。所以那時我們已經獲得了 400 萬美元的軍事合同。

We'll continually staff up because other contracts, subcontracts, there's one prime contract and we'll continue to ramp up. But yes, our expectation -- those aren't the expectation. That was just our internal expectations. We already brought money in that we didn't expect to bring any in until after September 30. That's what that sentence was about (inaudible).

我們將不斷增加人員，因為還有其他合同、分包合同，還有一份主合同，我們將繼續增加人員。但是，是的，我們的期望——那些不是期望。這只是我們內心的期望。我們已經存了錢，但我們預計要到 9 月 30 日之後才會存錢。這就是那句話的意思（聽不清）。

Got it. Okay. And so does that -- I guess, the question is, does that give you any more confidence, I guess, in finishing up building that team out? Or do you feel like what is good to get you ramped into the order side and maybe you start fishing it up as the orders start coming in after the October '24 start timing?

知道了。好的。我想，問題是，這是否會讓你更有信心完成團隊建設？或者您是否覺得有什麼好處可以讓您進入訂單方面，也許您會在 10 月 24 日開始時間之後開始收到訂單時開始釣魚？

Yes. The way I think about that is we have just a core group in there now, and we expect to grow that group as we grow the orders that we bring in. So that will be directly proportional with the amount of business that we bring in. We'll expand program management. We'll expand those things that currently aren't there as well as customer support staff and technical staff to support those locally because they're pulled out of the Orlando market or the Orlando (inaudible) Army, Air Force and Marine Corp all right there, their acquisition. So those will grow. I don't expect that it's fully built out yet. Just the initial core staff, we're about 75% there.

是的。我的想法是，我們現在只有一個核心團隊，我們希望隨著我們帶來的訂單的增加，該團隊的規模也會擴大。因此，這將與我們帶來的業務量成正比。我們將擴大項目管理。我們將擴展那些目前不存在的東西，以及客戶支持人員和技術人員來支持當地的那些東西，因為他們已經退出奧蘭多市場或奧蘭多（聽不清）陸軍、空軍和海軍陸戰隊了。在那裡，他們的收購。所以這些將會增長。我不認為它已經完全建成。僅是最初的核心員工，我們就佔了75%左右。

Okay. And then you gave a lot of backlog bookings information a lot of companies don't give. Sort of curious if we extend that one more level. You're talking about adding 35% to your sales capacity, that's a pretty good step up. Do you think -- is there a way to think about the sales pipeline growth that you're seeing or opportunities per rep or capacity efficiency, utilization of the existing group that's giving you that confidence to make another big push on the sales capacity side.

好的。然後你提供了大量積壓的預訂信息，而很多公司都沒有提供。有點好奇我們是否能再擴展一層。您正在談論將銷售能力增加 35%，這是一個相當不錯的進步。您是否認為——有沒有一種方法可以考慮您所看到的銷售渠道增長或每個代表的機會或產能效率、現有團隊的利用率，這讓您有信心在銷售產能方面再次大力推動。

Actually, that's a great question. So -- what we're looking at is making each of the sales territories efficient. What does that mean? I need police departments that are over 5,000 police officers and a budget greater than $50 million or greater than $1 billion, whatever it is, breaking up each of those territories. So each one of those specific -- each one of those specific sales territories have an equal amount of opportunity.

事實上，這是一個很好的問題。因此，我們正在考慮提高每個銷售區域的效率。這意味著什麼？我需要擁有超過 5,000 名警察的警察部門，以及超過 5,000 萬美元或超過 10 億美元的預算，無論是什麼，來劃分這些領土。因此，每一個特定的銷售區域都擁有同等數量的機會。

What ends up happening is because these sales require a lot of focus, a lot of attention, a lot of handholding to bring them through that cycle because they're cops. They're not in the market to buy and do all of these sorts of things. They just want to train, and that's what we're experts in. And so by doing that, I think what VirTra has done and been very successful at is they've chased the low-hanging fruit.

最終發生的事情是因為這些銷售需要大量的關注、大量的關注、大量的幫助才能讓他們度過這個週期，因為他們是警察。他們進入市場並不是為了購買和做所有這些事情。他們只是想訓練，而這正是我們所擅長的。通過這樣做，我認為 VirTra 所做的並且非常成功的事情是他們已經實現了唾手可得的目標。

So they just grabbed the things they could just because they were understaffed. This way, we act more like farmers than salesman. We go out there and we plow the fields, we plant, we fertilize, we nurture each one of those territories and those accounts. And by doing that, we're going to drive more sales, more relationships and more revenue to VirTra in that regard.

所以他們只是因為人手不足而搶了他們能搶到的東西。這樣，我們的行為就更像農民而不是推銷員。我們出去耕田、播種、施肥、培育每一塊土地和每一個賬戶。通過這樣做，我們將在這方面為 VirTra 帶來更多的銷售、更多的關係和更多的收入。

Got it. Great. Congrats on the great first half of the year.

知道了。偉大的。祝賀今年上半年取得的輝煌成就。

At this time, this concludes our question-and-answer session. I'd now like to turn the call back over to Mr. Ferris for his closing remarks. Please, sir, go ahead.

至此，我們的問答環節就結束了。現在我想將電話轉回給費里斯先生，讓他作結束語。先生，請繼續。

Thank you, Kyle. Before we close, I'd like to take a moment to announce the transition in the leadership team. Today, I'm honored to announce John Givens as the new sole Chief Executive Officer of VirTra. His visionary, practical and world-class leadership helped to generate our rapid progress and he continues to show us much more is possible for VirTra.

謝謝你，凱爾。在結束之前，我想花點時間宣布領導團隊的過渡。今天，我很榮幸地宣布 John Gives 成為 VirTra 新任唯一首席執行官。他富有遠見、務實和世界一流的領導力幫助我們取得了快速進步，他繼續向我們展示 VirTra 的無限可能。

Throughout our 30-year journey, VirTra has been driven by a powerful mission, to equip the brave men and women of arm forces and law enforcement agencies around the world with the tools they need to serve their country, complete their missions and return home safely. This mission is at the very core of why we exist and remains our firm commitment.

在我們 30 年的歷程中，VirTra 一直被一項強大的使命所驅動，為世界各地武裝部隊和執法機構的勇敢男女提供他們為國家服務、完成任務並安全回家所需的工具。這一使命是我們存在的核心，也是我們堅定的承諾。

As I take on the role of Executive Chairman of the Board, I will continue to support this vital mission, knowing it is a worthy and noble calling that it resonates deeply with each member of the VirTra family, from employee to investor to customer. Our dedication to innovation and excellence is fueled by the knowledge that the work we do directly impacts the lives of those who protect our communities and uphold the safety of free nations.

當我擔任董事會執行主席時，我將繼續支持這一重要使命，因為我知道這是一項有價值且崇高的使命，它與VirTra 家族的每一位成員（從員工到投資者再到客戶）產生了深刻的共鳴。我們致力於創新和卓越，因為我們知道我們所做的工作直接影響那些保護我們社區和維護自由國家安全的人們的生活。

Having worked closely with John, I have seen firsthand his expertise in the simulation military markets, which has been instrumental in our recent achievements. Under his leadership, I've seen VirTra accomplish things that we thought were simply impossible. I am confident that John's continued leadership as the CEO will lead VirTra to even greater heights in fulfilling our mission.

通過與約翰密切合作，我親眼目睹了他在模擬軍事市場方面的專業知識，這對我們最近取得的成就發揮了重要作用。在他的領導下，我看到 VirTra 完成了我們認為根本不可能的事情。我相信 John 作為首席執行官的持續領導將帶領 VirTra 在履行我們的使命方面達到更高的高度。

We stand firm in our service to our customers and their life-saving missions. With John at the helm, I have no doubt that our future is incredibly bright. The passion and dedication of our team is the driving force behind our success. And I have every confidence that we will continue to push the boundaries of what is possible and change the world for the better.

我們堅定不移地為客戶提供服務並履行拯救生命的使命。在約翰的掌舵下，我毫不懷疑我們的未來將無比光明。我們團隊的熱情和奉獻精神是我們成功的動力。我堅信，我們將繼續突破可能的界限，讓世界變得更美好。

As we look forward to this new chapter, I want to express my deepest gratitude to each and every member of the VirTra family, our staff, our shareholders and especially our customers. Your unwavering support has been the foundation of our success and I'm excited to continue working with you all in my new role. Together, we will work to bring about an even brighter future for VirTra.

在我們期待新篇章的同時，我要向 VirTra 家族的每一位成員、我們的員工、我們的股東，尤其是我們的客戶表示最深切的感謝。您堅定不移的支持是我們成功的基礎，我很高興能在新職位上繼續與大家合作。我們將共同努力，為 VirTra 帶來更加光明的未來。

Our journey is just getting started, and I'm honored to be part of this incredible team what we've done and especially what we are about to do. Thank you. Be safe, take care and God bless.

我們的旅程才剛剛開始，我很榮幸成為這個令人難以置信的團隊的一員，我們已經完成了這些工作，尤其是我們即將要做的事情。謝謝。注意安全，保重，願上帝保佑。

Thank you for joining us for VirTra's Second Quarter 2023 Conference Call. You may now disconnect.

感謝您參加 VirTra 2023 年第二季度電話會議。您現在可以斷開連接。