VirTra Inc (VTSI) 2025 Q2 法說會逐字稿

Good afternoon and welcome to VirTra second quarter 2025 earnings conference call. My name is Ryan, and I will be your operator for today's call. Joining us for today's presentation, our 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 年第二季財報電話會議。我叫瑞安，今天我將擔任您的電話接線生。參加今天演講的還有我們公司的執行長 John Givens 和財務長 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 safe harbor statement that includes cautious 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 安全港聲明，其中包括對本次通話中所做的前瞻性陳述的謹慎態度。在本次簡報中，管理階層可能會討論公司產品、服務或市場的財務預測、資訊或預期，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 投資者關係部分的連結重播。

Now, I would like to turn the call over to VirTra, CEO Mr. John Givens. Thank you and over to you, sir.

現在，我想將電話轉給 VirTra 執行長約翰·吉文斯先生。謝謝您，先生，接下來就交給您了。

Thank you operator, 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 in six months ended June 30, 2025, along with highlighted business accomplishments.

謝謝接線員，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 2025 年 6 月 30 日的六個月第二季度的財務業績，以及突出的業務成就。

In Q2, VirTra delivered year over year growth in both revenue and bookings, maintained profitability, and strengthened our cash position. While bookings were lighter sequentially due to the timing of orders and the ongoing funding delays, our operational discipline and customer engagement strategies continued to position us well, for the back half of the year and into 2026.

在第二季度，VirTra 的收入和預訂量均實現了同比增長，保持了盈利能力，並增強了我們的現金狀況。雖然由於訂單時間和持續的資金延遲，訂單量環比減少，但我們的營運紀律和客戶參與策略繼續為我們在今年下半年和 2026 年保持良好地位。

We remain confident in the strength of our solutions, our reoccurring revenue programs, and our ability to execute as funding flows improve. The operating environment remains shaped by the federal and international funding delays. Agency procurement cycles are still slower than normal, and in some cases, funding is being held back entirely until the fiscal year budget's reset.

隨著資金流動的改善，我們對我們的解決方案的實力、我們的經常性收入計劃以及我們的執行能力仍然充滿信心。經營環境仍受到聯邦和國際資金延遲的影響。機構採購週期仍然比正常情況慢，在某些情況下，資金被完全凍結，直到財政年度預算重新設定。

We believe these challenges are temporary, but they continue to influence our quarterly order patterns. That said, we are starting to see some movement. The Department of Justice cops grant program reopened on June 1, and closed for submissions on June 30, a positive step that should help unlock some funding for agencies later in the year.

我們相信這些挑戰是暫時的，但它們會繼續影響我們的季度訂單模式。話雖如此，我們開始看到一些動靜。司法部警察撥款計劃於 6 月 1 日重新開放，並於 6 月 30 日截止接受申請，這是一個積極的舉措，將有助於在今年稍後為各機構釋放一些資金。

We've been actively engaged in Washington DC to help policymakers understand the value of immersive training and to support funding initiatives that benefit our customers. While the real impact of these programs will take time to flow through, we expect improved order activity in the quarters ahead.

我們一直積極參與華盛頓特區的活動，幫助政策制定者了解沉浸式培訓的價值，並支持有利於我們客戶的資助計畫。雖然這些計劃的真正影響需要時間才能顯現，但我們預計未來幾季的訂單活動將會改善。

To this end, we continue to execute on our sales and marketing initiatives in the second quarter. Our marketing efforts remain a central focus with our redesigned website expected to launch in the coming weeks. We expect a new site to enhance lead capture, funnel visibility, and our conversion tracking.

為此，我們在第二季繼續執行銷售和行銷計劃。我們的行銷工作仍是重點，我們重新設計的網站預計將在未來幾週內推出。我們希望新網站能夠增強潛在客戶的獲取、管道的可見度以及我們的轉換追蹤。

Our regional sales model continues to improve accountability and responsiveness across all territories. We have made targeted personnel changes to ensure we have the right people in the right roles, strengthening our customer engagement and follow through.

我們的區域銷售模式不斷提高所有地區的責任感和回應能力。我們進行了有針對性的人員變動，以確保合適的人才擔任合適的職位，從而加強我們的客戶參與度和後續行動。

We also remain positioned to benefit from our re-entry into the GSA procurement channel, which will streamline contracting for eligible agencies and shortened delivery timelines once live. Although this is expected to impact Q4 and beyond more meaningfully, it strengthens our long-term go to market approach that continues to be a strong selling point, especially in smaller markets.

我們還將受益於重新進入 GSA 採購管道，這將簡化合格機構的合約流程，並縮短上線後的交付時間。雖然這預計會對第四季度及以後產生更重大的影響，但它加強了我們的長期行銷策略，這將繼續成為一個強大的賣點，特別是在較小的市場。

Six customers renewed early in Q2, primarily for the V-180 and the V-300 systems, signaling both the step's value and the customer satisfaction with our system's performance. These renewals combined with the transition to three-year agreements, improve visibility into the future reoccurring revenue.

第二季初有六位顧客與我們續約，主要針對 V-180 和 V-300 系統，這不僅顯示了這項措施的價值，也顯示了顧客對我們系統效能的滿意度。這些續約與三年期協議的過渡相結合，提高了未來經常性收入的可見性。

Interest in our VR, VXR extended reality platform continues to grow with strong pipeline active quotes across public safety, academic, and the healthcare markets. Customers are recognizing the flexibility and immersive fidelity of the system, and we expect to announce new developments with strategic partners in the coming quarters.

對我們的 VR、VXR 擴展現實平台的興趣持續增長，公共安全、學術和醫療保健市場都有強大的管道活躍報價。客戶認識到該系統的靈活性和沈浸式保真度，我們預計將在未來幾季與策略合作夥伴一起宣布新的發展。

Content conversion from our scenario library to the XR platform is progressing well too. A robust library of certified content will further expand the appeal and applicability of the platform. Following on the BXR discussion, our commitment to product quality continues to be a key driver for virtu's market position.

從我們的場景庫到XR平台的內容轉換也進展順利。強大的認證內容庫將進一步擴大該平台的吸引力和適用性。根據 BXR 討論，我們對產品品質的承諾仍然是 virtu 市場地位的關鍵驅動力。

In recent quarters, we have made deliberate investments to enhance our manufacturing processes, expand our reliability testing, and implement tighter quality control protocols. These actions, combined with incorporating customer feedback, directly into the product enhancements have meaningfully improved hardware durability, reliability, and overall performance.

最近幾個季度，我們進行了刻意投資，以增強我們的製造流程，擴大我們的可靠性測試，並實施更嚴格的品質控制協議。這些措施與客戶回饋相結合，直接融入產品改進中，顯著提高了硬體的耐用性、可靠性和整體性能。

These improvements are being noticed in the field. Customers consistently report that our systems not only deliver the superior training capabilities but also withstand years of rigorous real world use. This validation reinforces our reputation as a trusted long-term training partner and helps drive repeat business and renewals.

這些改進已引起業界的關注。客戶一致表示，我們的系統不僅提供卓越的培訓能力，還能承受多年嚴格的現實世界使用。此認證鞏固了我們作為值得信賴的長期培訓合作夥伴的聲譽，並有助於推動重複業務和續約。

We are sustaining these quality advancements while operating with efficiency, and this dynamic is allowing us to price our systems competitively without sacrificing performance or reliability. We continue to strengthen our value proposition, ensuring that VirTra remains well positioned to win and retain customers across multiple market segments.

我們在高效運作的同時，也保持著這些品質進步，這種動力使我們能夠在不犧牲性能或可靠性的情況下，讓我們的系統價格具有競爭力。我們將繼續加強我們的價值主張，確保 VirTra 保持有利地位，贏得並留住多個細分市場的客戶。

Our work on the IVAS program continues to advance. We've completed additional recall kit validations and reliability testing and remain in position for potential production opportunities. The recent innovation of the contract from Microsoft [Andro] was a positive step in clarifying the program's future. We are also tracking broader DOD initiatives that emphasize modular scalable systems, an area where virtual solution is well aligned.

我們在 IVAS 計劃上的工作正在繼續推進。我們已經完成了額外的召回套件驗證和可靠性測試，並將繼續為潛在的生產機會做好準備。微軟[Andro]最近對合約的創新對於明確該計劃的未來邁出了積極的一步。我們也正在追蹤國防部更廣泛的舉措，這些舉措強調模組化可擴展系統，這是虛擬解決方案能夠很好地適應的領域。

Overall, Q2 built on a progress made earlier in the year. We continue to strengthen our operations and maintain positive momentum despite funding delays remaining a near-term challenge. Our strong cash position, stable reoccurring revenue base, and disciplined execution provide a solid foundation for the remainder of 2025.

總體而言，第二季鞏固了今年稍早的進展。儘管資金延遲仍然是近期的挑戰，但我們仍將繼續加強營運並保持積極勢頭。我們強大的現金狀況、穩定的經常性收入基礎和嚴格的執行為 2025 年剩餘時間奠定了堅實的基礎。

As funding flows improve, we are well positioned to convert opportunities into growth. With that, I'll turn it over to Alanna for a detailed financial review, Ilana.

隨著資金流動的改善，我們有能力將機會轉化為成長。有了這個，我將把它交給 Alanna 進行詳細的財務審查，Ilana。

Thank you, John, and good afternoon, everyone. Now, let's review our un audited financial results for the second quarter and six months ending June 30, 2025. Our total revenue for the second quarter was $7 million compared to $6.1 million in the prior year period.

謝謝你，約翰，大家下午好。現在，讓我們回顧一下截至 2025 年 6 月 30 日的第二季和六個月的未經審計的財務結果。我們第二季的總收入為 700 萬美元，而去年同期為 610 萬美元。

The 15% increase was primarily driven by the higher capital deliveries and stable reoccurring revenue from step and service contracts. Breaking this down by market, government revenue for the second quarter was $5.4 million, compared to $5.3 million in the prior year period. International revenue for the second quarter was 1.4 million compared to 0.6 million in the prior year period.

15% 的成長主要得益於更高的資本交付以及來自逐步和服務合約的穩定經常性收入。按市場細分，第二季政府營收為 540 萬美元，去年同期為 530 萬美元。第二季國際營收為 140 萬美元，去年同期為 60 萬美元。

Our total revenue for the six months was $14.1 million, compared to $13.4 million in the prior year period. This 5% increase was driven as well by the higher capital deliveries, stable reoccurring revenue from staff and service contracts.

我們六個月的總收入為 1,410 萬美元，而去年同期為 1,340 萬美元。這 5% 的成長也得益於更高的資本交付、穩定的員工經常性收入和服務合約。

Our gross profit for the second quarter was $4.8 million, or 69% of total revenue, compared to $5.5 million or 91% of total revenue in the prior year period. Last year's unusually high gross margin reflected capitalized labor on the development of the XR and the IAS program, and a greater mix of high margin, service and step revenue.

我們第二季的毛利為 480 萬美元，佔總營收的 69%，而去年同期的毛利為 550 萬美元，佔總營收的 91%。去年異常高的毛利率反映了 XR 和 IAS 專案開發的資本化勞動力，以及高利潤、服務和步驟收入的更大組合。

Our gross profit for the first six months was $10 million or 71% of total revenue compared to $10.2 million or 76% of total revenue in the prior year period. The change in gross margin reflects a higher mix of capital sales in 2025 relative to service and stuff revenue, as well as the absence of the unusually low cost of sales recorded in 2024, due to that capitalized labor on those development projects.

我們前六個月的毛利為 1,000 萬美元，佔總收入的 71%，而去年同期的毛利為 1,020 萬美元，佔總收入的 76%。毛利率的變化反映了 2025 年資本銷售相對於服務和材料收入的更高比例，以及由於這些開發項目的資本化勞動力，2024 年記錄的異常低的銷售成本的缺失。

Our net operating expense for the second quarter was $3.9 million and 11% decrease from $4.4 million in the prior year period. Our net operating expense for the first six months was $7.7 million, a 9% decrease from the $8.5 million in the prior year period. These decreases reflect the disciplined cost management while maintaining investment and core growth initiatives.

我們第二季的淨營運費用為 390 萬美元，比去年同期的 440 萬美元下降 11%。我們前六個月的淨營運費用為 770 萬美元，比去年同期的 850 萬美元下降了 9%。這些下降反映了嚴格的成本管理，同時保持了投資和核心成長計劃。

Our operating income for the second quarter was $0.9 million, compared to $1.1 million for the prior year period, and our operating income for the first six months was $2.3 million compared to $1.8 million in the prior year period.

我們第二季的營業收入為 90 萬美元，而去年同期為 110 萬美元；我們上六個月的營業收入為 230 萬美元，而去年同期為 180 萬美元。

Our net income for the second quarter was $0.2 million or $0.01 per diluted share compared to $1.2 million or $0.10 per diluted share in the prior year period. Our net income for the first six months was $1.4 million or $0.12 per diluted share, compared to $1.7 million or $0.15 per diluted share in the prior year period.

我們第二季的淨收入為 20 萬美元或每股攤薄收益 0.01 美元，而去年同期的淨收入為 120 萬美元或每股攤薄收益 0.10 美元。我們前六個月的淨收入為 140 萬美元或每股攤薄收益 0.12 美元，而去年同期為 170 萬美元或每股攤薄收益 0.15 美元。

Our adjusted EBITDA, a non-GAAP metric, was $0.7 million for the second quarter, and $2.4 million for the first six months of 2025. As of June 30, cash and cash equivalents totaled $20.7 million, compared to $17.6 million at March 31. Our working capital was $33.5 million, and we maintained a debt li balance sheet.

我們的調整後 EBITDA（非 GAAP 指標）第二季為 70 萬美元，2025 年前六個月為 240 萬美元。截至 6 月 30 日，現金及現金等價物總額為 2,070 萬美元，而 3 月 31 日為 1,760 萬美元。我們的營運資金為 3350 萬美元，並且我們保持著負債負債表。

VirTra defines bookings as the total of newly signed contracts awarded RSPs and purchase orders received in a given period. Bookings for the second quarter totaled $4.6 million, up from $3.6 million in Q2 of 2024, but down from the $6.4 million in Q1 2025. The sequential decline was driven by the timing of awards and customer-related deferrals rather than lost opportunities.

VirTra 將預訂量定義為在給定時間內授予 RSP 的新簽署合約和收到的採購訂單的總數。第二季的預訂總額為 460 萬美元，高於 2024 年第二季的 360 萬美元，但低於 2025 年第一季的 640 萬美元。環比下降是由於授予時間和與客戶相關的延期，而不是失去的機會。

VirTra defines our backlog as the accumulation of bookings from signed contracts and purchase orders that are not yet started or have incomplete performance obligations and therefore cannot be recognized as revenue until delivered in a future period. We segment this backlog into three primary categories, capital, which includes our simulators, our accessories, installation, training, custom content, and any design work.

VirTra 將我們的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履行義務尚未完成，因此只能在未來期間交付才能確認為收入。我們將這些積壓工作分為三個主要類別：資本，包括我們的模擬器、我們的配件、安裝、培訓、客製化內容和任何設計工作。

Our service is primarily our extended warranties and support contracts, and STUT is our long-term subscription-based program. Our backlog at June 30, 2025, stood at $18.8 million. This includes $7.1 million in capital, $5.7 million in service, and $6 million in step contracts. Additionally, we continue to track renewable step contract options which are not included in the backlog total.

我們的服務主要是延長保固和支援合同，而 STUT 是我們基於長期訂閱的計劃。截至 2025 年 6 月 30 日，我們的積壓訂單為 1,880 萬美元。其中包括 710 萬美元的資本、570 萬美元的服務和 600 萬美元的分步合約。此外，我們將繼續追蹤未包含在積壓總量中的可再生逐步合約選項。

Most new capital bookings from the first half are expected to convert to revenue within the current calendar year, though some orders, particularly from international customers, have requested a deferred delivery into early 2026. As always, our ability to convert backlog into revenue remains dependent on customer-driven installation timelines, which can shift based on factors outside of our control.

預計上半年大部分新資本訂單將在本日曆年內轉化為收入，但部分訂單（尤其是來自國際客戶的訂單）要求將交付推遲至 2026 年初。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，而這可能會根據我們無法控制的因素而改變。

So in review, our backlog remains solid and the stability of our recurring revenue base combined with a strong balance sheet provides us flexibility as we move into the second half of the year. Looking forward, we believe the combination of our discipline, cost management, enhanced contract structures, and ongoing demand recovery will support continued progress.

因此，回顧一下，我們的積壓訂單仍然穩固，穩定的經常性收入基礎加上強勁的資產負債表為我們進入下半年提供了靈活性。展望未來，我們相信，我們的紀律、成本管理、增強的合約結構以及持續的需求復甦將支持我們繼續取得進展。

Our updated step program with its three-year commitments and strong 95% renewal trends transform what was once optional renewal potential into high confidence recurring revenue. This not only strengthens our revenue visibility but also reinforces long-term customer relationships and positions for substantial growth. That concludes my prepared remarks. I'll now turn the call back over to John for his closing comments. John?

我們更新的步驟計畫具有三年承諾和強勁的 95% 續約趨勢，將曾經可選的續約潛力轉變為高度可信的經常性收入。這不僅增強了我們的收入可見性，而且鞏固了長期客戶關係和大幅成長的地位。我的準備好的發言到此結束。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. As we move through 2025, our focus remains on both agile and disciplined. While many of our customers are still working through funding complexities, their commitment to training and preparedness remains strong. We stand ready to deliver as budgets open up and we are dedicated to earning trust through reliable execution.

謝謝你，阿蘭娜。當我們邁入 2025 年時，我們的重點仍然是敏捷和自律。儘管我們的許多客戶仍在努力解決資金複雜問題，但他們對培訓和準備的承諾仍然堅定。我們隨時準備在預算開放的情況下交付成果，並致力於透過可靠的執行贏得信任。

The strides we've made in sales, product innovation, operational efficiency, strengthen our foundation each quarter, and we're confident in our ability to translate these efforts into growth as the year progresses and into 2026. That concludes my prepared remarks, operator.

我們在銷售、產品創新、營運效率方面取得的進步，每個季度都加強了我們的基礎，我們有信心隨著時間的推移以及到 2026 年，我們有能力將這些努力轉化為成長。接線員，我的準備好的發言到此結束。

(Operator Instructions)

（操作員指示）

Jaeson Schmidt, Lake Street Capital Markets.

Jaeson Schmidt，Lake Street Capital Markets。

Yes. Thanks for taking my questions. John, just want to drill down a bit further on your comments on IVAS and obviously with the move from Microsoft Android and sort of the headset getting reconfigured, I just want to make sure I'm clear that you guys still expect to be involved or has your position in this program changed at all with the changes going on?

是的。感謝您回答我的問題。約翰，我只是想進一步深入探討一下你對 IVAS 的評論，顯然，隨著微軟 Android 的轉變和耳機的重新配置，我只是想確保我清楚你們仍然希望參與其中，或者你們在這個項目中的立場是否隨著正在發生的變化而發生了變化？

Yeah, that's a great question. There is a bit of confusion out there. So, we completed our R&D effort with the government canceling the last of the testing because it performed in air quotes flawless. So our product stands ready to meet and be able to be produced in a production quantity and production level.

是的，這是一個很好的問題。那裡有一點混亂。因此，我們完成了研發工作，但政府取消了最後的測試，因為它在空中表現完美​​。因此，我們的產品已準備好滿足並能夠達到生產數量和生產水準。

What's going on right now with IVAS when they innovated the contract from Microsoft to Android, they still aren't happy with the headset. So they did release a new contract. It's under an OTA for one year and they've opened it up and it's just for the headset. So they have to produce and demo. I believe it’s; I don't have it in front of me. I believe it's either March or April.

當 IVAS 將合約從微軟轉移到 Android 時，他們仍然對耳機不滿意。所以他們確實發布了一份新合約。它處於 OTA 之下一年，他們已經開放了它，並且它僅適用於耳機。所以他們必須生產和演示。我相信是的；但我面前沒有它。我認為是三月或四月。

They'll demo another headset, and we expect that to be closed like stated on previous calls by September and then they would most likely issue a production contract which would include the entire system or kit. So, that's we're still there, they're just trying to work through the augmented reality and the headset goggles, and just FYI Android and Meta have teamed together and they're going to fund most of it as a customer funded.

他們將演示另一款耳機，我們預計該演示將像之前的電話會議中所說的那樣在 9 月完成，然後他們很可能會簽發一份包含整個系統或套件的生產合約。所以，我們仍然在那裡，他們只是試圖透過擴增實境和頭戴式護目鏡來工作，僅供參考，Android 和 Meta 已經合作，他們將以客戶資助的形式為其中的大部分提供資金。

So we'll see where that competition goes. I would encourage everyone to watch that. And then, as soon as that competition is over, it's for one year and it's very aggressive. They're going to announce the winners of that quite soon, I believe in August. So stay tuned for that. But VirTra is much, still in, it's still been approved and there isn't any competition for any further recall kits.

因此我們將拭目以待這場競爭將會如何發展。我鼓勵每個人都去觀看。然後，一旦比賽結束，比賽就會持續一年，而且競爭非常激烈。他們很快就會宣布獲獎者，我相信是在八月。因此請繼續關注。但 VirTra 仍然存在，它仍然被批准，並且沒有任何進一步召回套件的競爭。

Okay, that's really helpful. And then just have a question here on recent news on the US Army, selecting sort of Bohemia and that virtual battle space. Just curious how that impacts you or what you guys think of that news.

好的，這確實很有幫助。然後我有一個關於美國陸軍的最新消息的問題，選擇波西米亞和虛擬戰場。只是好奇這對你有什麼影響或你們對這個消息有什麼看法。

Well, I think it's great for Bohemia and BAE. I think it's also great for us, as I've reported since I got here. There is the virtual battle space, the product of Bohemia is spread throughout probably 132 countries around the world. So it's a great distribution network that we should be part of.

嗯，我認為這對波西米亞和 BAE 來說很棒。我認為這對我們來說也很好，正如我來到這裡後所報告的那樣。還有虛擬戰場，波希米亞的產品遍佈全球大概132個國家。所以這是一個偉大的分銷網絡，我們應該成為其中的一部分。

All that does is that furthers our opportunities going in the future. That doesn't mean they just automatically buy virtual system. Somebody has to have a need for a marksmanship trainer, and it would give us, we wouldn't be out of the competition because there's other competitors that also are using VBS as well, but it puts us right in the forefront with the solid products that we have and now running VBS.

所有這些都將進一步擴大我們未來的機會。這並不意味著他們會自動購買虛擬系統。有人需要射擊訓練器，它會給我們帶來好處，我們不會因為其他競爭對手也在使用 VBS 而退出競爭，但憑藉我們擁有的可靠產品和現在運行的 VBS，它使我們處於領先地位。

We've announced it and it's now running on our systems and we've had inquiries from other military units for just such a system with DBS. So they can leverage their current investment in the gaming engine, and now that it runs on ours, they all can connect, which is a big benefit for DOD.

我們已經宣布了這一點，它現在正在我們的系統上運行，並且我們已經收到其他軍事單位對這種帶有 DBS 的系統的詢問。因此，他們可以利用他們目前在遊戲引擎上的投資，而且現在它在我們的引擎上運行，他們都可以連接，這對國防部來說是一個很大的優勢。

Got you. And then the last one from me and I'll jump back into the queue. Just curious what you're seeing with the VXR and kind of customer traction there and customer conversations.

明白了。然後是我最後一個發言，然後我會回到隊列中。我只是好奇您對 VXR 的看法以及它對客戶的吸引力和客戶對話。

Yeah, so, I've been a, for a very long time, being a platform instructor in the military. The VXR is great for many things. The one thing that it's not good at just yet is putting weapons in there because it creates a negative, training effect. However, because virtual leads in the certified training courses for law enforcement, it's an absolute need and a must.

是的，我在軍隊擔任平台教官已經很久了。VXR 在許多方面都很出色。目前它還不擅長的一件事就是在那裡放置武器，因為這會產生負面的訓練效果。然而，由於虛擬引領執法認證培訓課程，所以這是絕對必要的。

We have strong interest in multiple different sectors to include healthcare for just such a system. It's very portable. They can get immersed and they can get the certified training that they need and then log and calculate or log and get credit for those training sessions.

我們對多個不同領域有著濃厚的興趣，包括將醫療保健納入這樣的系統。它非常便於攜帶。他們可以沉浸其中，獲得所需的認證培訓，然後記錄和計算，或記錄並獲得這些培訓課程的學分。

So, the traction is there. People are now understanding what it does. They had a, the industry had this perspective that they could just put on the headset and be just like being there and using the weapon and later they found out that I talked about that negative training.

因此，吸引力就在那裡。人們現在明白它的作用了。他們，業界有這樣一種觀點，他們只要戴上耳機，就像身臨其境並使用武器一樣，後來他們發現我談論的是那種消極訓練。

It just didn't stand up to the rigors of actual platform training and meeting a mission need. So they've backed away and now are seeing the capability where it really has its biggest benefit, and we're right there.

它只是無法經受實際平台訓練的嚴格考驗並滿足任務需求。所以他們退縮了，現在看到了它真正發揮最大優勢的能力，而我們就在那裡。

Perfect thanks a lot guys.

非常好，非常感謝大家。

Thanks Jason for your questions.

感謝 Jason 提出的問題。

Richard Baldry, Roth Capital Partners.

羅斯資本合夥公司的理查德·鮑德里 (Richard Baldry)。

Thanks, to talk about any changes you've seen on step renewal rates, and maybe, changes in the customer preferences between step versus your for your traditional acquisition model.

謝謝，請談談您所看到的分步續訂率的變化，以及逐步與傳統收購模式之間的客戶偏好變化。

Yeah, I'm going to, there'll be two parts that I'll let Alanna answer it after I do. So we cha person virtual as a company changed its model from the five year to the three year. Initially, there was a bit of a pushback because they had already some of the step programs that were coming due had already set their budgets up for those for those systems coming out five years versus three.

是的，我會的，會分成兩個部分，我做完之後會讓 Alanna 來回答。因此，我們改變人們虛擬作為一家公司的模式，從五年到三年。最初，他們遇到了一些阻力，因為他們已經為一些即將到期的逐步計劃設定了預算，這些計劃將在五年內而不是三年內推出。

So it was initial hurdle we managed to navigate through that. The step and the capital, it just depends on how, where they're getting their dollars and how they're getting their dollars. We wanted to take advantage of operational budgets as well as capital, but we haven't seen any changes, and as we reported for the last several years, towards the end of '24, '25 and into '26, we have a lot of the five year renewals coming up and we're still seeing above a 95% renewal rate.

所以我們設法克服了最初的障礙。步驟和資本，只取決於他們如何、從哪裡獲得資金以及如何獲得資金。我們希望充分利用營運預算和資本，但我們沒有看到任何變化，正如我們在過去幾年中所報告的那樣，在 24、25 年底和 26 年初，我們有很多五年期續約即將到來，而且我們仍然看到 95% 以上的續約率。

We have seen some conversions. We, I think we have more than six that renewed early on this step. And we have some that have converted to capital, and we've had some capital that's converted to the STEP program. It just depends on their funding and what appetite their financial groups in those areas, how they're getting that money. So we've seen it, it's been a real mix, Richard, but yeah, great question.

我們已經看到了一些轉變。我認為，在這一步，我們已經有超過六家公司提前續約。我們已將一些資金轉換為資本，並將一些資本轉換為 STEP 計劃。這只取決於他們的資金以及他們的金融集團在這些地區的興趣，以及他們如何獲得這些資金。所以我們已經看到了，這是一個真正的混合體，理查德，但是，是的，很好的問題。

Alanna, did you have anything else?

阿蘭娜，你還有其他事嗎？

No, I mean, you pretty much, nailed what I was going to say, which is I know we've been reporting about a 95% renewal rate and that really hasn't changed.

不，我的意思是，你基本上說出了我要說的話，我知道我們一直在報告的續約率是 95%，而且這個數字確實沒有改變。

We had a couple customers towards the beginning of when we started reporting that that didn't renew mostly because of their own budgets because they are a lot of smaller agencies that need this program and everything in the last six months, we're just seeing, renewals and to those three year programs and when John talks about the six that are renewed early, they renewed early because they want some of our new tech, right? So they don't want to wait a whole year they want to get renewed for that new three year contract so they can get the new stuff, so.

當我們開始報告時，我們有幾個客戶沒有續約，主要是因為他們自己的預算，因為有很多小型機構需要這個計劃以及過去六個月的一切，我們只是看到續約和那些三年計劃，當約翰談到提前續約的六個計劃時，他們提前續約是因為他們想要我們的一些新技術，對嗎？所以他們不想等待一整年，他們想續簽新的三年合同，這樣他們就可以獲得新的東西。

Got it. Does the new accelerated depreciation accounting have any impact, do you think, or could it have any impact? I'm not sure, how applicable that is across government sector versus private sector, but very curious your thoughts there.

知道了。您認為新的加速折舊會計會產生什麼影響嗎？或會產生什麼影響嗎？我不確定這在政府部門和私營部門的適用性如何，但我非常好奇您的想法。

I don't think it's going to have, at this point, I don't think it's going to have a major, effect on us, but I will let everyone know if it, if we do see that.

我認為目前它不會對我們產生重大影響，但如果我們確實看到了，我會讓每個人都知道。

And then last for me, where you were closing bookings in the quarter, is there any, geographic and market, any other sort of trends inside of that are sort of different or emerging? Thanks.

最後，對我來說，當您在本季度完成預訂時，是否存在任何地理和市場，或者任何其他類型的趨勢是不同的或新興的？謝謝。

I'm not sure. Can you clarify that last question?

我不知道。您能澄清一下最後一個問題嗎？

Whether that was federal agencies, municipalities, any sort of variability within the closings, where you saw successes or --

無論是聯邦機構、市政當局，還是關閉過程中的任何變化，你在哪裡看到了成功或--

Not. Oh yeah, I can, I understand that now. Yeah. We hadn't seen much of anything across any of those that required the federal funding. We are seeing the grants are opening now, as I mentioned. So, we have quite a few customers that were in that queue waiting that we assisted. We produced a grant pamphlet and basically did everything we could to help them so that they could self file because that's a requirement their applications.

不是。哦，是的，我可以，我現在明白了。是的。在任何需要聯邦政府資助的計畫中，我們都沒有看到任何進展。正如我所提到的，我們看到補助金現在正在開放。因此，我們有不少排隊等候的顧客需要我們的幫忙。我們製作了一份補助金小冊子，並盡一切努力幫助他們，以便他們可以自行提交申請，因為這是他們的申請要求。

So we did follow that quite a bit. As far as there are some other industries now that have changed some laws that we're starting to see a lot of inquiries. Washington State, just, all of the folks that do the concealed carry and security and all that need X number of training hours.

所以我們確實相當遵循這一點。由於現在其他一些行業也修改了一些法律，我們開始看到很多詢問。華盛頓州，所有從事隱蔽攜帶和安全工作的人員都需要 X 小時的訓練。

So, we're starting to see different areas open up, but as far as all of the federal work frozen, grants are the ones on top. We are seeing some private investment with foundations that are trying to get some of the police departments in their areas in need systems.

因此，我們開始看到不同領域的開放，但就所有凍結的聯邦工作而言，撥款是最重要的。我們看到一些私人基金會進行投資，試圖為其所在地區的一些警察部門提供相關係統。

So, it, I would say grants are probably the biggest one that are starting to open up and show us the positive signs. And international, I know you didn't mention that, Rich, but international is another one, that is, we've seen a lot of activity most recently. Hope that answers your question.

因此，我想說，贈款可能是開始開放並向我們展示積極跡象的最大贈款。至於國際，我知道你沒有提到這一點，Rich，但國際是另一個方面，也就是說，我們最近看到了很多活動。希望這能回答你的問題。

Yeah, great. Thank you. \

是的，很棒。謝謝。\

You're welcome. Thank you, Rich, for the questions.

不客氣。謝謝 Rich 的提問。

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

謝謝。女士們、先生們，我們的問答環節到此結束。現在我想把電話轉回給吉文斯先生，請他作最後發言。

Yeah, thank you for joining us today and for your continued support of VirTra. We've made meaningful progress so far this year. We'll stay focused on execution, our customer success, and advance our growth initiatives. We appreciate your trust and look forward to updating you on our continued progress in the corners to come. God bless all of you, and let's continue to make great strides together.

是的，感謝您今天加入我們並繼續支持 VirTra。今年到目前為止我們已經取得了有意義的進展。我們將繼續專注於執行、客戶成功並推進我們的成長計劃。我們感謝您的信任，並期待在未來的領域向您報告我們持續的進展。願上帝保佑大家，讓我們繼續共同進步。

Thank you. Ladies and gentlemen, thank you for joining us today for our second quarter 2025 conference call. You may now disconnect your lines.

謝謝。女士們，先生們，感謝您今天參加我們的 2025 年第二季電話會議。現在您可以斷開線路了。