VirTra Inc (VTSI) 2025 Q1 法說會逐字稿

Good afternoon, and welcome to VirTra's first quarter 2025 earnings conference call. My name is Maria, and I will be your operator for today's call. Joining us for today's presentation are the company's CEO, John Givens; and CFO, Alanna Boudreau. Following their remarks, we will open the call for questions.

下午好，歡迎參加 VirTra 2025 年第一季財報電話會議。我叫瑪麗亞，今天我將擔任您的電話接線生。參加今天演講的有公司執行長約翰·吉文斯 (John Givens) 和首席財務官阿蘭娜·布德羅 (Alanna Boudreau)。在他們發言之後，我們將開始提問。

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.

在我們開始通話之前，我想提供 VirTra 的安全港聲明，其中包括對本次通話期間做出的前瞻性陳述的警告。在本次簡報中，管理階層可能會討論財務預測、有關公司產品和服務或市場的資訊或期望，或以其他方式對未來做出陳述，這些陳述具有前瞻性，並受許多風險和不確定因素的影響，可能導致實際結果與所做的陳述有重大差異。

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 a link in the Investor Relations section on the company's website at www.virtra.com.

本公司不承擔根據法律要求更新它們的任何義務。最後，我想提醒大家，本次電話會議將透過公司網站 www.virtra.com 上的投資者關係部分中的連結重播。

Now I'd like to turn the call over to VirTra's CEO, Mr. John Givens. Thank you, and you may proceed, sir.

現在我想把電話轉給 VirTra 的執行長約翰·吉文斯先生。謝謝您，先生，您可以繼續。

Thank you, Maria, and thank you, everyone, for joining us this afternoon. After the markets closed today, we issued a press release that provided our financial results for the first quarter ending March 31, 2025, along with the highlighted business accomplishments. We began the year with a continued focus on operational execution and saw encouraging signs across several areas. While the quarter was not without its challenges, we posted a return to GAAP profitability, strong gross margins and continued progress in both sales efficiencies and operational scalability.

謝謝瑪麗亞，也謝謝大家今天下午加入我們。今天市場收盤後，我們發布了一份新聞稿，提供了截至 2025 年 3 月 31 日的第一季財務業績以及突出的業務成就。我們在新的一年繼續專注於營運執行，並在多個領域看到了令人鼓舞的跡象。儘管本季度並非沒有挑戰，但我們恢復了 GAAP 盈利能力、強勁的毛利率並在銷售效率和營運可擴展性方面繼續取得進展。

In today's environment where many customers are still facing delayed budget approvals and grant allocations, I view this as a positive step forward. The broader operating environment, including economic uncertainty, shifting agency priorities and tightening government budget demands proactive focus and adaptability. At VirTra, we view these challenges as opportunities to sharpen our value proposition and reinforce our role as a trusted training partner.

在當今許多客戶仍然面臨預算審批和撥款分配延遲的環境下，我認為這是一個積極的進步。更廣泛的營運環境，包括經濟不確定性、機構優先事項的轉變和政府預算的緊縮，要求積極主動的關注和適應能力。在 VirTra，我們將這些挑戰視為強化我們的價值主張和鞏固我們作為值得信賴的培訓合作夥伴的角色的機會。

By aligning our offerings and high-priority agency needs, anticipating procurement cycles and maintaining fiscal discipline, we continue to strengthen our market position while delivering mission-critical solutions that meet the evolving demands of law enforcement, military and federal agencies. While it was a productive Q1, we remain fully aware of the macro headwinds shaping our customers' decisions. The reality is that many government agencies are still navigating uncertainty around appropriations and budget cuts.

透過調整我們的產品和高優先級機構需求、預測採購週期和維持財政紀律，我們繼續加強我們的市場地位，同時提供滿足執法、軍事和聯邦機構不斷變化的需求的關鍵任務解決方案。雖然第一季成果豐碩，但我們仍然充分意識到影響客戶決策的宏觀不利因素。現實情況是，許多政府機構仍在應對撥款和預算削減方面的不確定性。

Sales cycles are taking longer. In some cases, funding is being held back entirely while internal reviews or leadership transitions play out. That said, training mandates are not going away. If anything, they're becoming more urgent. Agencies still need to demonstrate readiness, meet annual certification standards and manage escalating risk within their communities.

銷售週期越來越長。在某些情況下，在進行內部審查或領導過渡期間，資金會被完全凍結。儘管如此，培訓任務不會消失。無論如何，它們正變得更加緊迫。各機構仍需要證明其準備情況、滿足年度認證標準並管理其社區內不斷升級的風險。

What's changing is how they plan for that training. We're seeing more interest in flexible purchasing pathways, including subscription-based models like our STEP and bundled offerings that eliminate friction during the approval process. We believe that our immersive training solution and industry-leading content library are increasingly aligned with what agencies need in their environment, systems that are effective, affordable and easy to deploy.

正在改變的是他們如何規劃培訓。我們看到人們對靈活的購買方式越來越感興趣，包括像我們的 STEP 這樣的基於訂閱的模式和消除審批過程中摩擦的捆綁產品。我們相信，我們的沉浸式培訓解決方案和業界領先的內容庫越來越符合機構在其環境中的需求，即有效、經濟且易於部署的系統。

Our ability to support both large capital projects and reoccurring lower footprint programs allows us to remain engaged across a range of buyer profiles even as broader spending softens. Despite ongoing pressures with -- on federal and state agency budgets, we successfully expanded our presence through targeted engagements, disciplined pipeline management and deep alignment with procurement schedules.

我們既能支持大型資本項目，又能支持重複的低足跡項目，這使得我們即使在整體支出疲軟的情況下也能繼續與各種買家保持聯繫。儘管聯邦和州機構預算持續面臨壓力，我們仍然透過有針對性的合作、嚴格的管道管理和與採購計劃的深度協調，成功擴大了我們的影響力。

Key actions include early coordination with agencies during their budgeting process, allowing us to shape requirements and provide tailored solutions aligned with upcoming funding allocations. For example, our government sales team collaborated closely with law enforcement agencies seeking to utilize fiscal '24 Byrne JAG and Homeland Security grant funding, positioning VirTra systems as priority. Additionally, we strategically timed proposal submissions in alignment with key procurement windows such as DHS' SAFER grant and DoD's Q1 obligation targets, resulting in increased quote activity and new contract awards.

關鍵行動包括在預算過程中與各機構進行早期協調，使我們能夠確定需求並提供與即將到來的資金分配一致的客製化解決方案。例如，我們的政府銷售團隊與執法機構密切合作，尋求利用財政 24 Byrne JAG 和國土安全部的撥款，將 VirTra 系統列為優先事項。此外，我們還根據國土安全部的 SAFER 撥款和國防部第一季的義務目標等關鍵採購窗口，策略性地安排了提案提交的時間，從而增加了報價活動和新合約授予。

By maintaining active communications with procurement officers and leveraging our GSA schedule and sole-source pathways where applicable, we minimize delays and maximize contract efficiencies. Alanna will walk you through in detail our financials. We ended Q1 with $6.4 million in bookings and a $21.2 million backlog. From a strategic standpoint, these numbers are encouraging as they show the trust our customers continue to place in VirTra even amidst a slower contracting environment.

透過與採購人員保持積極溝通，並在適用的情況下利用我們的 GSA 計劃和單一來源途徑，我們最大限度地減少延誤並最大限度地提高合約效率。Alanna 將向您詳細介紹我們的財務狀況。我們第一季的訂單量為 640 萬美元，積壓訂單量為 2,120 萬美元。從策略角度來看，這些數字令人鼓舞，因為它們表明即使在合約放緩的環境下，我們的客戶仍然對 VirTra 抱持信任。

So while the top line revenue can still fluctuate quarter-to-quarter based on delivery, timing and funding schedules, the underlying engine bookings, backlog and pipeline momentum, they continue to reinforce our forward trajectory. We've made notable progress restructuring our sales organization. Entering the year, our key sales initiatives were to expand our high-performing sales force, optimize sales efficiency and increase our market presence through a revamped marketing strategy.

因此，儘管營業收入仍可能根據交付、時間和資金計劃、基礎發動機預訂、積壓訂單和管道勢頭而逐季度波動，但它們仍將繼續加強我們的前進軌跡。我們在重組銷售組織方面取得了顯著進展。進入新的一年，我們的主要銷售措施是擴大高績效銷售隊伍，優化銷售效率，並透過改進的行銷策略提高我們的市場佔有率。

In respect to our -- expanding our high-performance sales force, we transitioned to a regional sales model with new leadership, improving both accountability and responsiveness across key territories. This structure ensures that our top performers are empowered to lead within their zones and that customers benefit from closer, more consistent engagement. In regards to optimizing sales efficiency, our team is now operating with more focus, supported by improved leadership management systems, refined outreach strategies and clearer follow-up processes.

在擴大我們的高績效銷售團隊方面，我們過渡到區域銷售模式，並採用新的領導層，提高了關鍵地區的責任感和回應能力。這種結構確保我們的頂尖人才能夠在各自的領域內發揮領導作用，並確保客戶受益於更緊密、更一致的合作。在優化銷售效率方面，我們的團隊現在更加專注地開展工作，並得到改進的領導管理系統、完善的外展策略和更清晰的後續流程的支持。

These changes are already driving higher quality engagements and shortening the average time between first contact and signed contract. To further reduce friction, we've entered the GSA, General Services Administration, procurement channel in Q1. This enabled agencies at all levels of government to purchase directly from a preapproved federal catalog, eliminating the need for lengthy negotiations. In tandem, we introduced standardized product bundles that streamline quoting and speed up fulfillment, improvements that enhance predictability and scalability across our pipeline.

這些變化已經推動了更高品質的合作，並縮短了從第一次接觸到簽訂合約之間的平均時間。為了進一步減少摩擦，我們在第一季進入了GSA（美國總務管理局）採購管道。這使得各級政府機構能夠直接從預先批准的聯邦目錄中購買，從而無需漫長的談判。同時，我們推出了標準化產品包，以簡化報價並加快履行速度，這些改進增強了整個流程的可預測性和可擴展性。

To increase our market presence, we've taken steps to improve our marketing function. We've started by overhauling our digital strategy, rebuilding our corporate website to improve usability and lead capture, enhancing how we track engagements from campaigns and increasing return on investment from partner platforms. Early signs are encouraging. Our team captured more than double the expected number of qualified leads at recent events like Border Expo and SHOT Show, and we're seeing increased traction from previously underperforming channels.

為了提高我們的市場佔有率，我們已採取措施改善我們的行銷功能。我們首先徹底改革了我們的數位策略，重建了我們的公司網站以提高可用性和潛在客戶獲取能力，增強了我們追蹤活動參與度的方式，並提高了合作夥伴平台的投資回報率。早期跡象令人鼓舞。我們的團隊在最近的活動（例如 Border Expo 和 SHOT Show）中捕獲了超出預期兩倍的合格潛在客戶，我們看到之前表現不佳的管道的吸引力正在增強。

VirTra continues to build a disciplined, data-driven approach to lead generation and customer acquisition with a sharp focus on maximizing return on investment. We have implemented structured lead capture methods supported by detailed systematic follow-up to ensure each opportunity is matured with purpose and clarity. This deliberate approach allows us to improve conversion rates while maintaining a strong pipeline of qualified prospects.

VirTra 繼續建立一種規範的、數據驅動的方法來產生潛在客戶和獲取客戶，並專注於最大化投資回報。我們實施了結構化的潛在客戶獲取方法，並輔以詳細的系統性跟進，以確保每個機會都具有目的性和清晰度。這種深思熟慮的方法使我們能夠提高轉換率，同時保持強大的合格潛在客戶管道。

Our marketing efforts are guided by commonsense, targeted campaigns that speak directly to the needs of law enforcement and military agencies. These campaigns are closely aligned with our sales strategies, ensuring we are not only attracting the right leads, but doing so efficiently, fully aware of the cost required to capture and sustain each customer relationship. To this end, we've invested in specialized personnel with the expertise to design and execute these critical initiatives.

我們的行銷工作以常識性、有針對性的活動為指導，直接針對執法和軍事機構的需求。這些活動與我們的銷售策略緊密結合，確保我們不僅吸引正確的潛在客戶，而且有效率地吸引潛在客戶，充分了解獲取和維持每個客戶關係所需的成本。為此，我們投資了具有專業知識的專業人員來設計和執行這些關鍵措施。

We are also fostering a more collaborative relationship between sales, marketing and our customers. This integrated approach has led to increased internal alignment, improved messaging consistency and more meaningful engagement throughout the customer journey. Through the use of our enhanced CRM reporting, we've added greater accountability and visibility, allowing us to track touch points, monitor performance and continuously improve the customer experience.

我們也在銷售、行銷和客戶之間建立更具協作性的關係。這種綜合方法提高了內部協調性、改善了訊息傳遞的一致性，並在整個客戶旅程中實現了更有意義的參與。透過使用我們增強的 CRM 報告，我們增加了更大的責任感和可見性，使我們能夠追蹤接觸點、監控效能並不斷改善客戶體驗。

As we move forward, this strategic focus on high-quality lead generation, campaign precision and customer alignment will be key to sustaining momentum and driving long-term growth. Our V-XR extended reality platform continues to generate growing interest. Two units have been sold to date with the first customer deliveries expected in Q2. Several more are in active quote discussions with customers responding positively to the system's flexibility, accessibility and immersive fidelity.

隨著我們不斷前進，對高品質潛在客戶開發、活動精準度和客戶一致性的策略重點將成為保持發展勢頭和推動長期成長的關鍵。我們的 V-XR 擴充現實平台持續引起越來越多的關注。迄今已售出兩台，預計首批客戶將於第二季交付。還有幾家公司正在與客戶進行積極的報價討論，客戶對該系統的靈活性、可訪問性和沈浸式保真度做出了積極的回應。

We're also working to expand headset compatibility and streamline deployment, ensuring the system scales efficiently across varied training environments. As we discussed in recent quarters, V-XR reflects our long-term strategy to lead the industry in next-generation headset-based immersive training. These early sales are encouraging, and we're actively gathering customer feedback to help refine the V-XR platform and support broader adoption.

我們也致力於擴大耳機相容性並簡化部署，確保系統能夠在不同的訓練環境中有效擴展。正如我們最近幾季所討論的那樣，V-XR 反映了我們引領下一代基於耳機的沉浸式訓練行業的長期策略。這些早期的銷售令人鼓舞，我們正在積極收集客戶回饋，以幫助完善 V-XR 平台並支援更廣泛的採用。

For many agencies, incorporating XR-based training into their long-term plans requires budget alignment, grant application updates and internal approvals. VirTra will continue to play a key role in that process by helping agencies understand how V-XR meets evolving training mandates and equipping them with the data and documentation needed to pursue grant funding and approvals.

對於許多機構來說，將基於 XR 的培訓納入其長期計劃需要預算調整、撥款申請更新和內部批准。VirTra 將繼續在這一過程中發揮關鍵作用，幫助各機構了解 V-XR 如何滿足不斷變化的培訓要求，並為他們提供尋求撥款和批准所需的數據和文件。

We continue to focus on the V-XR content library, converting our massive scenario-based training for the use of our headset. We are receiving continued interest in the approach, and we'll see more sales conversion as funding lines start to flow. Beyond the XR, we continue to strengthen our core technology platform. In Q1, we expanded scenario packaging efforts to better match customer needs with relevant real-world training modules.

我們繼續專注於 V-XR 內容庫，將我們大量的基於場景的培訓轉換為使用我們的耳機。我們對這種方法的關注度持續上升，隨著資金流開始流入，我們將看到更多的銷售轉換。除了 XR，我們也將繼續加強我們的核心技術平台。在第一季度，我們擴大了場景打包工作，以便更好地將客戶需求與相關的真實培訓模組相匹配。

We also continue to increase the use of our AI tools to accelerate content development, cutting production time significantly and allowing our team to generate higher volumes of certified training faster than ever before. VirTra is proud to report significant progress in the expansion of our certified training content with over 120 hours of certified courses now available. This milestone reflects our ongoing commitment to delivering high-impact standards aligned training that directly addresses the needs of our law enforcement and military partners.

我們也將繼續增加使用人工智慧工具來加速內容開發，大幅縮短生產時間，並使我們的團隊能夠比以往更快地產生大量認證培訓。VirTra 很自豪地報告，我們在擴展認證培訓內容方面取得了重大進展，目前已提供超過 120 小時的認證課程。這一里程碑反映了我們持續致力於提供符合高影響力標準的培訓，直接滿足我們的執法和軍事合作夥伴的需求。

We remain focused on building scenarios that are not only realistic, but shaped by the evolving challenges faced in the field from emerging threat dynamics to community interactions and de-escalation. Our scenarios development is informed by current events and direct customer feedback, ensuring maximum relevance and training effectiveness. Our content library continues to grow at an accelerated pace both in size and in quality, driven by the integration of advanced video production, motion capture and AI-enhanced animation tools. This unexpected acceleration in scenario creation is allowing us to respond more quickly to shifting training demands, offering a broader range of immersive experience with a higher level of realism than previously possible.

我們仍然專注於構建不僅切合實際，而且能夠適應該領域面臨的不斷變化的挑戰（從新興威脅動態到社區互動和降級）的場景。我們的場景開發以當前事件和直接客戶回饋為依據，確保最大程度的相關性和培訓效果。在先進影片製作、動作捕捉和人工智慧動畫工具的整合推動下，我們的內容庫在規模和品質上繼續加速成長。場景創建的意外加速使我們能夠更快地響應不斷變化的培訓需求，提供比以前更廣泛的沉浸式體驗和更高的真實感。

VirTra's commitment to content excellence supported by innovation and direct agency collaboration positions us as a clear leader in scenario-based training solutions. As part of our broader operational upgrades, we're reconfiguring our facility to support future scalability, adding dedicated space for reliability testing and expanding our assembly line and integrating lean manufacturing processes speed throughput. These changes were informed by lessons learned during last year's testing cycles related to IVAS, and they will help ensure consistent quality as volumes grow.

VirTra 致力於透過創新和直接機構合作來提供卓越的內容，這使我們成為基於場景的培訓解決方案領域的領導者。作為我們更廣泛的營運升級的一部分，我們正在重新配置我們的設施以支援未來的可擴展性，增加可靠性測試的專用空間，擴大我們的裝配線並整合精益製造流程以加快吞吐量。這些變化是根據去年與 IVAS 相關的測試週期中學到的經驗教訓得出的，它們將有助於確保在數量增長的情況下質量始終如一。

Speaking of IVAS, we continue to advance our partnership with the US Army during Q1. We completed advanced recall kit validation and began implementing reliability testing protocols as we prepare for potential production. The Army has now officially novated the IVAS contract from Microsoft to Anduril, a key milestone that clarifies next steps for the program's future. As we shared last quarter, our technology performed exceptionally well during the final R&D phases with the Army conducting soldier assessments -- concluding soldier assessments early due to our systems exceeding expectation.

說到 IVAS，我們在第一季繼續推進與美國陸軍的合作。我們完成了進階召回套件驗證，並開始實施可靠性測試協議，為潛在的生產做準備。美國陸軍現已正式將 IVAS 合約從微軟轉讓給 Anduril，這是一個重要的里程碑，明確了該計劃未來的下一步。正如我們上個季度所分享的，我們的技術在陸軍進行士兵評估的最後研發階段表現非常出色——由於我們的系統超出預期，士兵評估提前結束。

With the DoD now evaluating overlapping programs for consolidation, our track record and strong technical performance leaves us well positioned to support expanded work under IVAS or similar initiatives. The Department of Defense is undergoing a strategic shift in acquisition priorities, emphasizing speed, modernization and mission readiness. Key initiatives such as DoD's Adaptive Acquisition Framework and the increased use of other transaction authority agreements and the push for modular open-system architecture are accelerating procurement time lines and enabling faster adoption of innovative technologies like those developed by VirTra.

目前，國防部正在評估重疊項目的整合，我們的業績記錄和強大的技術性能使我們有能力支持 IVAS 或類似計劃下的擴展工作。國防部正在進行採購重點的戰略轉變，強調速度、現代化和任務準備。國防部的自適應採購框架、其他交易授權協議的增加使用以及模組化開放系統架構的推動等關鍵舉措正在加快採購時間表，並使 VirTra 開發的創新技術能夠更快地得到採用。

This alignment directly benefits VirTra by reducing traditional barriers to entry and allowing for more agile contracting mechanisms. As a technology-forward company delivering mission-critical training solutions, VirTra is well positioned to take advantage of these changes. Our emphasis on modular scalable systems, combined with growing partnerships and sole-source opportunities enables us to more efficiently meet evolving training requirements across the services. Additionally, DoD's focus on readiness and immersive training to address modern threats environments increases demand for realistic high-fidelity simulation, VirTra's core competency.

這種協調直接使 VirTra 受益，因為它降低了傳統的進入壁壘，並允許更靈活的合約機制。作為一家提供關鍵任務培訓解決方案的技術型公司，VirTra 完全有能力利用這些變化。我們重視模組化可擴展系統，結合不斷發展的合作夥伴關係和單一來源機會，使我們能夠更有效地滿足各個服務不斷變化的培訓需求。此外，國防部專注於應對現代威脅環境的準備和沈浸式訓練，這增加了對逼真的高保真模擬（VirTra 的核心競爭力）的需求。

As acquisitions reform continues to prioritize capability over bureaucracy, VirTra expects to see stronger engagement, faster procurement cycles and expanded market access within the defense sector. Overall, Q1 reflected continuing progress in our operational execution. While funding constraints remain a headwind for the industry at large, we're building a more agile and effective organization. We're able -- we are better equipped to convert backlog, support scalable growth and meet the evolving training needs of our customers. We are executing these actions decisively, confident they will deliver measurable results and enhance returns for our shareholders as the macro environment shift.

隨著收購改革繼續優先考慮能力而不是官僚主義，VirTra 預計國防領域將出現更強的參與度、更快的採購週期和擴大的市場准入。總體而言，第一季反映了我們的營運執行不斷取得進展。儘管資金限制仍然是整個產業面臨的阻力，但我們正在建立一個更靈活、更有效率的組織。我們有能力——我們更有能力轉換積壓訂單、支援可擴展的成長並滿足客戶不斷變化的培訓需求。我們正在果斷地執行這些行動，並相信隨著宏觀環境的變化，它們將帶來可衡量的成果並為我們的股東提高回報。

With that, I'll turn it over to Alanna for a detailed financial review. Alanna?

說完這些，我將把它交給 Alanna 進行詳細的財務審查。阿蘭娜？

Thank you, John, and good afternoon, everyone. Now let's review our unaudited financial results for the first quarter ended March 31, 2025. Our total revenue for the first quarter was $7.2 million compared to $7.3 million in the prior year period. This 3% decrease was primarily due to delayed deliveries on several customer orders booked in late Q4 2024, which pushed revenue recognition into future quarters.

謝謝你，約翰，大家下午好。現在讓我們回顧一下截至 2025 年 3 月 31 日第一季的未經審計財務結果。我們第一季的總收入為 720 萬美元，而去年同期為 730 萬美元。下降 3% 的主要原因是 2024 年第四季末的幾份客戶訂單交貨延遲，導致收入確認推遲到未來幾季。

If we break this down by market, we've got government revenue for the first quarter was $5.2 million compared to $6.7 million in the prior year period, and international revenue for the quarter was $1.9 million compared to $550,000 in the prior year period. Our gross profit for the first quarter improved to $5.2 million or 73% of total revenue compared to $4.7 million or 64% in the prior year period. The increase in gross margin reflects a 25% decrease in cost of sales driven by greater operational efficiencies.

如果我們按市場細分，我們會發現第一季的政府收入為 520 萬美元，而去年同期為 670 萬美元，本季的國際收入為 190 萬美元，而去年同期為 55 萬美元。我們第一季的毛利從去年同期的 470 萬美元（佔總營收的 64%）增至 520 萬美元（佔總營收的 73%）。毛利率的提高反映了營運效率的提高導致銷售成本下降了 25%。

Our net operating expense for the quarter was $3.8 million, a 6% decrease from $4.1 million in the first quarter of 2024. This decrease reflects our drive to maintain or lower overhead costs as we mitigate challenges associated with potential government pauses on contracts. We are optimizing internal resources while preserving investment in key growth initiatives. Our operating income for the quarter increased 110% to $1.4 million compared to $650,000 in the prior year period. Net income for the quarter was $1.3 million or $0.11 per diluted share based on 11.3 million weighted average diluted shares outstanding. This represents a 170% increase from $470,000 or $0.04 per diluted share based on 11 million diluted shares outstanding in Q1 of 2024.

本季我們的淨營運費用為 380 萬美元，較 2024 年第一季的 410 萬美元下降 6%。這一下降反映了我們努力維持或降低管理費用，以減輕與政府暫停合約可能帶來的挑戰。我們正在優化內部資源，同時保留對關鍵成長計畫的投資。本季我們的營業收入為 140 萬美元，較去年同期的 65 萬美元成長 110%。根據 1,130 萬股加權平均稀釋流通股計算，本季淨收入為 130 萬美元，即每股攤薄收益 0.11 美元。根據 2024 年第一季 1,100 萬股稀釋流通股計算，這比 47 萬美元或每股 0.04 美元增加了 170%。

Our adjusted EBITDA increased 22% to $1.7 million compared to $1.4 million in the prior year period, reflecting improved operating leverage and gross margin strength. As of March 31, cash and cash equivalents totaled $17.6 million compared to $18 million at December 31. Working capital increased to $35.3 million, and we maintain a debt-light capital structure, giving us both stability and flexibility as we execute against our growth strategies.

我們的調整後 EBITDA 成長 22%，達到 170 萬美元，而去年同期為 140 萬美元，這反映出經營槓桿和毛利率的提高。截至 3 月 31 日，現金及現金等價物總額為 1,760 萬美元，而 12 月 31 日為 1,800 萬美元。營運資本增加至 3,530 萬美元，並且我們保持輕債務資本結構，這為我們執行成長策略提供了穩定性和靈活性。

VirTra defines our bookings as the total of newly signed contracts, awarded RFPs and purchase orders received in a given period. Bookings for the quarter totaled $6.4 million, more than double the $2.9 million recorded in Q1 of 2024. This strong year-over-year growth contributed to $33.4 million in total bookings over the trailing 12 months and reflects continued traction despite the ongoing funding uncertainties. VirTra defines backlog as the accumulation of bookings from signed contracts and purchase orders that are not yet started or are incomplete performance obligations and therefore, cannot be recognized as revenue until delivered in a future period.

VirTra 將我們的預訂量定義為在給定時間內收到的新簽署的合約、授予的 RFP 和採購訂單的總和。本季的預訂總額為 640 萬美元，是 2024 年第一季 290 萬美元的兩倍多。這一強勁的同比增長為過去 12 個月的總預訂額貢獻了 3,340 萬美元，反映出儘管資金存在持續的不確定性，但業務仍保持持續增長勢頭。VirTra 將積壓訂單定義為已簽署合約和採購訂單的預訂累積，這些合約和訂單尚未開始或屬於未完成的履行義務，因此，直到未來某個時期交付後才能確認為收入。

We segment backlog into three primary categories: capital, which includes our simulators, accessories, installation, training, custom content work and design work; two, our services, which are primarily extended warranties and support contracts. And then third is our STEP, which is our long-term subscription-based program. Our backlog then at March 31, 2025, stood at $21.2 million. This included $9.9 million in capital, $5.8 million in service and $5.5 million in STEP contracts.

我們將積壓訂單分為三大類：資本，包括我們的模擬器、配件、安裝、培訓、客製化內容工作和設計工作；二是我們的服務，主要是延長保固和支援合約。第三個是我們的 STEP，這是我們的長期訂閱方案。截至 2025 年 3 月 31 日，我們的積壓訂單為 2,120 萬美元。其中包括 990 萬美元的資本、580 萬美元的服務和 550 萬美元的 STEP 合約。

Additionally, we continue to track approximately $5 million in renewable STEP contract options, which are not included in the backlog total. Most of our new capital bookings from Q1 are expected to convert to revenue within the current calendar year. However, a portion of those, particularly from international customers have requested deferred delivery into 2026. As always, our ability to convert backlog into revenue remains dependent on customer-driven installation time lines, which are subject to change due to factors outside of our control.

此外，我們繼續追蹤約 500 萬美元的可續約 STEP 合約選項，這些選項不包括在積壓總額中。我們第一季的大部分新資本預訂預計將在本日曆年內轉化為收入。然而，其中一部分客戶，特別是國際客戶，要求將交付推遲到 2026 年。像往常一樣，我們將積壓訂單轉化為收入的能力仍然取決於客戶驅動的安裝時間表，而安裝時間表可能會因我們無法控制的因素而改變。

Looking forward, we believe the combination of our disciplined cost management, enhanced contract structures and ongoing demand recovery will support continued progress. In particular, recent updates to our STEP program, which now feature full three year commitments transform what was previously considered optional renewal potential into high-confidence recurring revenue.

展望未來，我們相信，嚴格的成本管理、強化的合約結構和持續的需求復甦將支持我們繼續取得進展。特別是，我們最近對 STEP 計劃進行了更新，現在具有完整的三年承諾，將以前被認為是可選的續約潛力轉變為高度自信的經常性收入。

Renewal trends remain strong with performance tracking around 95%, both within our older structured contract terms as well as our first year STEP customers who are now signing new three year agreements. And that concludes my prepared remarks.

續約趨勢仍然強勁，無論是在我們舊的結構化合約條款中，還是在我們第一年 STEP 客戶（現在正在簽署新的三年協議）中，績效追蹤都在 95% 左右。我的準備好的發言到此結束。

I'll now turn the call back over to John for his closing comments. John?

現在我將把電話轉回給約翰，請他發表最後評論。約翰？

Thank you, Alanna. We know the path forward requires both heightened focus and flexibility. Our customers continue to navigate uncertainty, but they're still training, still evaluating and still planning for the future. We are staying ready to deliver when funding is released to adapt as priorities evolve and to continue building trust throughout the execution. The progress we've made in sales, product development and operations reflects that mindset, and we believe it puts us in a stronger position with each passing quarter. We'll keep listening, adjusting and moving deliberately.

謝謝你，阿蘭娜。我們知道，前進的道路既需要高度的專注，也需要彈性。我們的客戶持續面臨不確定性，但他們仍在接受訓練、仍在評估、仍在為未來做規劃。我們隨時準備在資金到位後交付成果，以適應優先事項的變化，並在整個執行過程中繼續建立信任。我們在銷售、產品開發和營運方面取得的進步反映了這種心態，我們相信這會讓我們在每個季度都處於更有利的地位。我們將繼續傾聽、調整並謹慎行動。

That concludes my prepared remarks. Operator?

我的準備好的發言到此結束。操作員？

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

（操作員指示）我們的第一個問題來自 Lake Street Capital Markets 的 Jaeson Schmidt。

Congrats on the strong results in a challenging environment. Just want to start with some of those macro dynamics. Do you think that contributed to any orders being pulled into Q1?

恭喜您在充滿挑戰的環境中取得優異的成績。我只是想從一些宏觀動態開始。您認為這有助於第一季的訂單嗎？

Not really sure if the macros did that. I think there were monies that were in budgets that they were trying to spend before it got swept or totally shut down. I think that there were some grants that -- grant monies that were awarded and then there was one set of grants that they actually distributed funding even during the shutdown or the holdback or no delivery of the funding.

不太確定宏是否做到了這一點。我認為，在被徹底關閉或徹底關閉之前，他們試圖花掉預算中的一些資金。我認為有一些撥款——撥款金額是已授予的，然後有一組撥款，即使在政府停擺、資金被扣留或沒有提供資金的情況下，他們實際上也分配了資金。

So I'm not quite sure, each agency is different. That's why it's hard to answer. And there's just so much dynamics. Some of the agencies have their leadership in place and others are dealing with an assistant to the assistant to the assistant. So some are kind of shy of putting stuff out, approving budgets or approving any of the funding releases or purchases.

所以我不太確定，每個機構都不一樣。這就是為什麼這個問題很難回答。而且還有這麼多的動態。一些機構的領導層已經到位，而其他機構則由助理負責助理的領導。因此，有些人不太願意公佈成果、批准預算或批准任何資金的發放或購買。

Okay. That makes sense. And then looking at the V-XR, I know the health care market was a vertical that this made a lot of sense in. But are you seeing demand from other end market verticals? And I guess relatedly, is some of this demand being driven by any grant activity?

好的。這很有道理。然後看看 V-XR，我知道醫療保健市場是一個垂直市場，這在其中非常有意義。但是您是否看到來自其他終端垂直市場的需求？我想，與此相關的是，這些需求是否是由某些資助活動所推動的？

Yes, two separate questions, but good ones. So grant activity under de-escalation and training curriculum absolutely are driving the V-XR for us. Secondly is some of the adjacent markets, health care, and it depends on what training objective that police, even fire and even the military will be using the headset for. So we're seeing interest in a lot of areas.

是的，這是兩個獨立的問題，但都是好問題。因此，降級下的資助活動和培訓課程絕對會推動我們的 V-XR。其次是一些相鄰的市場，醫療保健，這取決於警察、消防甚至軍隊使用耳機的訓練目的。因此，我們看到很多領域都存在興趣。

Some of them are asking for things that the technology just doesn't do yet, but we're making note of that as the technology catches up, we'll be able to adapt quickly to those needs. So we're keeping that backlog and those leads as part of our development cycle and requirements. But I think there's other markets that are opening up, private security and others that a headset just makes much more sense.

他們中的一些人要求做一些技術還無法做到的事情，但我們注意到，隨著技術的發展，我們將能夠迅速適應這些需求。因此，我們將這些積壓工作和線索作為我們開發週期和要求的一部分。但我認為其他市場正在開放，私人安全和其他市場對耳機來說更有意義。

Okay. That's good to hear. And just the last one for me, and I'll jump back in the queue. On the STEP program and sort of these three year agreements, just want to clarify, are you forcing all customers over to these three year agreements? Or is it now just an option?

好的。聽到這個消息真好。對我來說這只是最後一個，然後我會回到隊列中。關於 STEP 計畫和這些三年協議，我只想澄清一下，您是否強迫所有客戶都遵守這些三年協議？或者現在它只是一種選擇？

Well, we're kind of forcing them into a three year to move the purchase cycle forward. With all the technologies and the advances that are being made, both in hardware and software and the advent of AI, some of the things that we'll produce, not just us but others in any industry are finding that any equipment that's older than three years has a problem running and maintaining a level of performance that's acceptable. So two things, the main reason, move our sales cycle in from five years to three and see where they go.

好吧，我們有點強迫他們將購買週期提前三年。隨著硬體和軟體方面的所有技術進步以及人工智慧的出現，我們生產的一些東西，不僅僅是我們，而且任何行業的其他人都發現，任何超過三年的設備在運行和維持可接受的性能水平方面都會出現問題。所以主要有兩件事，將我們的銷售週期從五年縮短到三年，然後看看它們會走向何方。

We do give them an option. It's more of a sales tactic that year four and five can be purchased if they're running -- if they're having problems with their funding or it's taking longer than it was taking before. We just have a lot of new technology that we want to get out there in their hands and keeping the system five years just -- it's moving faster, about 18 months where it used to be three years.

我們確實給了他們一個選擇。這更像是一種銷售策略，如果他們正在運行，可以購買第四年和第五年——如果他們遇到資金問題，或者花費的時間比以前更長。我們有很多新技術，希望能夠推廣到他們手中，並使系統保持五年的運行速度——現在運行速度更快，大約 18 個月，而以前需要三年。

So we're just trying to get ahead of the technology curve and then bring the customers along and its financial reasons for both bookings and opportunities. So it's.

因此，我們只是試圖走在技術前沿，然後吸引客戶，並從財務角度考慮預訂和機會。原來如此。

Can I add to that as well. I would add, Jaeson, that the reason we changed our terms to that three year was not giving them an easy out, like they had a little bit too much of an easy out in my opinion, for the original ones. And it was -- we were potential revenue -- potential future revenue as opposed to now where I feel we're way more confident in what those terms say that it's guaranteed for three years.

我也可以補充一點嗎？我想補充一點，傑森，我們將條款改為三年的原因是為了不讓他們輕易放棄，在我看來，對於原來的條款來說，他們有一點太容易放棄了。這是我們的潛在收入——潛在的未來收入，而不是現在，我覺得我們對這些條款所說的三年保證更有信心。

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

至此，我們的問答環節就結束了。現在我想把電話轉回給吉文斯先生，請他作最後發言。

Thank you. As we wrap up our Q1 2025 call, I want to take a moment to reflect on the incredible progress we've made and the promising journey ahead. Thanks for all your unwavering support and dedication. We've achieved remarkable milestones that position us strongly for the future. Our commitment to innovation and excellence continues to drive our success and the strategies we've implemented are beginning to bear fruit.

謝謝。在我們結束 2025 年第一季電話會議之際，我想花點時間回顧我們所取得的令人難以置信的進步以及未來充滿希望的旅程。感謝你們堅定不移的支持與奉獻。我們已經取得了非凡的里程碑，為我們的未來奠定了堅實的基礎。我們對創新和卓越的承諾繼續推動我們的成功，我們實施的策略也開始取得成果。

With a talented team and a clear vision, we are confident that the best is yet to come. As we look forward, the opportunities ahead are vast, and I truly believe that together, we will navigate the challenges and celebrate future successes. Thank you for your trust and partnership. The future looks bright, and I'm excited on what lies ahead. God bless you all, and let's continue to make great strides together.

憑藉著一支才華橫溢的團隊和清晰的願景，我們相信最好的還在後頭。展望未來，我們面臨巨大的機遇，我堅信，只要我們攜手並進，我們一定能夠克服挑戰，並取得未來的成功。感謝您的信任與合作。未來一片光明，我對未來充滿期待。願上帝保佑大家，讓我們繼續共同進步。

Thank you for joining us today for VirTra's first quarter 2025 conference call. You may now disconnect.

感謝您今天參加 VirTra 2025 年第一季電話會議。您現在可以斷開連線。