VirTra Inc (VTSI) 2025 Q3 法說會逐字稿

Good afternoon, and welcome to VirTra's third-quarter 2025 earnings conference call. My name is Julian, 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 年第三季財報電話會議。我叫朱利安，我將擔任您今天通話的接線生。今天出席本次演講的有公司執行長約翰·吉文斯和財務長阿拉娜·布德羅。在他們發言結束後，我們將開放提問環節。

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. The company does not undertake any obligation to update them as required by law.

在電話會議開始之前，我想提供 VirTra 的安全港聲明，其中包含對本次電話會議中作出的前瞻性陳述的注意事項。在本次簡報中，管理階層可能會討論有關公司產品和服務或市場的財務預測、資訊或預期，或就未來發表其他聲明，這些聲明屬於前瞻性聲明，並受到諸多風險和不確定性的影響，可能導致實際結果與所作所為有重大差異。本公司不承擔任何依法律要求更新這些資訊的義務。

Finally, I'd like to remind everyone that this call will be made available for replay via link in the Investor Relations section on the company's website at www.virtra.com.

最後，我想提醒大家，本次電話會議的錄音將透過公司網站 www.virtra.com 投資者關係部分的連結提供重播。

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

現在，我想把電話交給 VirTra 的執行長約翰·吉文斯先生。謝謝。先生，您可以繼續前進了。

Thank you, Julian, 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 third quarter and nine months ending September 30, 2025, along with highlighted business accomplishments.

謝謝朱利安，也謝謝各位今天下午的到來。在今天市場收盤後，我們發布了一份新聞稿，提供了截至 2025 年 9 月 30 日的第三季和前九個月的財務業績，以及重點業務成就。

In Q3, VirTra continued to manage through a slower Federal funding cycle while keeping strong engagement with our customers and expanding our reach. The timing of Federal award and customer acceptance affected revenue recognition in Q3, but our backlog grew again during the quarter.

第三季度，VirTra 在聯邦資金週期放緩的情況下繼續保持與客戶的緊密聯繫，並擴大了業務範圍。聯邦政府撥款和客戶驗收的時間影響了第三季的收入確認，但我們的積壓訂單在本季再次成長。

We also entered Q4 with a larger pipeline of opportunities tied to grant awards. Our operational discipline and continued focus on sales and marketing position us well as funding flows improve and pent-up demand converts to orders and deliveries.

進入第四季度，我們還擁有更多與撥款相關的專案機會。隨著資金流動改善，積壓的需求轉化為訂單和交付，我們的營運紀律和對銷售和行銷的持續關注使我們處於有利地位。

The operating environment is still being shaped by Federal funding delays. Agency procurement cycles are still moving slower than normal as agencies wait for budget clarity and grant awards. While this timing has affected the short-term revenue recognition, agency engagement remains strong, and we see demand building in the background.

聯邦資金延遲撥付仍在影響當前的營運環境。由於各機構仍在等待預算明細和撥款授予，因此機構採購週期仍然比正常情況要慢。雖然這個時間節點影響了短期收入確認，但代理商的參與度依然強勁，我們看到市場需求正在穩定成長。

Regarding the funding environment, the Department of Justice's COPS grants program has already identified the agency slated to receive funding based on applications that closed on June 30. Announcements were delayed by the Federal shutdowns. We believe VirTra will be among the beneficiaries once those awards are posted and spending authority normalizes. We've also seen progress as key Federal director roles are being filled, which should facilitate authorizations and releases of funds.

關於資金環境，司法部的 COPS 撥款計畫已經根據 6 月 30 日截止的申請確定了將獲得資助的機構。由於聯邦政府停擺，公告發布被推遲了。我們相信，一旦這些撥款到位且支出權限正常化，VirTra 將成為受益者之一。我們也看到，隨著關鍵聯邦主管職位的填補，取得了進展，這應該有助於資金的授權和發放。

We've been active in Washington, DC, helping policymakers understand the importance of the immersive training and supporting funding initiatives that benefit our customers. When the government shutdown ends, the grant awards resume, we expect revenue conversions to improve.

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重要性，並支持有利於我們客戶的資助計畫。政府停擺結束後，撥款恢復發放，我們預期收入轉換率將會提高。

We made solid progress in Q3 and how we reach and support customers. Our redesigned website launched in September, and the early results are encouraging. Visitors are spending more time evaluating products and requesting information, and we are generating more qualified leads than ever.

第三季度，我們在觸達和支持客戶方面取得了實質進展。我們重新設計的網站在9月上線，初步結果令人鼓舞。訪客花更多時間評估產品和索取訊息，我們獲得的合格銷售線索比以往任何時候都多。

Meanwhile, our sales model continues to improve accountability and responsiveness across territories. We've made targeted personnel changes to ensure we have the right people in the right roles, which is strengthening our customer engagement and follow-through.

同時，我們的銷售模式不斷提高各區域的責任感和反應速度。我們進行了有針對性的人員調整，以確保合適的人在合適的職位上，從而加強了與客戶的互動和後續跟進。

We also remain positioned to benefit from our recent entry into the GSA procurement cycle of channel, which streamlines sales processes and shortens delivery time lines. This is another positive step forward in our long-term go-to-market strategy. In parallel, our marketing cadence has increased as we placed a greater focus on press, trade events, and targeted industry awareness such as law enforcement leadership gathering.

我們最近進入了 GSA 採購管道週期，這簡化了銷售流程並縮短了交貨時間，我們仍然能夠從中受益。這是我們長期市場推廣策略向前邁出的另一個正面步伐。同時，我們的行銷節奏也加快了，我們更加重視媒體宣傳、行業活動以及有針對性的行業宣傳，例如執法領導層會議。

I also want to note that we've appointed Grant Barber to our Advisory Board. Grant brings over three decades of financial leadership including public company CFO experience to our Board. He will be instrumental in supporting our team as we scale.

我還要指出，我們已任命格蘭特·巴伯加入我們的顧問委員會。Grant 為我們的董事會帶來了超過三十年的財務領導經驗，其中包括上市公司財務長的經驗。隨著我們團隊規模的擴大，他將發揮至關重要的作用。

Turning to STEP. The program remains a strong selling point, especially for smaller agencies that may not have access to full Federal funding. Agencies are using STEP to ensure they have the critical training they need which has driven consistent adoption and high renewal rates. It also creates reoccurring revenue from VirTra and provides us with stronger baseline revenue performance from quarter to quarter.

轉向 STEP。該計劃仍然是一個強有力的賣點，尤其對於可能無法獲得聯邦全額資助的小型機構而言更是如此。各機構正在使用 STEP 來確保他們獲得所需的關鍵培訓，這推動了持續的採用率和高續約率。它還為 VirTra 創造了持續的收入，並為我們提供了更強勁的季度收入基準表現。

On the product side, our focus remains on delivering best-in-class training for agencies of all sizes. At the IACP last month, we introduced the V-One Portable Simulator designed specifically for a smaller department. The early response reinforces how important it is to offer high-quality training across a wide range of budgets. This product expands our addressable market and positions us to serve departments that may have previously been priced out of advanced simulation technology.

在產品方面，我們仍然專注於為各種規模的機構提供一流的培訓。上個月在 IACP 會議上，我們推出了專為小型部門設計的 V-One 便攜式模擬器。早期的回饋表明，在各種預算範圍內提供高品質培訓是多麼重要。該產品擴大了我們的目標市場，使我們能夠為以前可能因價格昂貴而無法使用先進模擬技術的部門提供服務。

Our focus on product quality continues to be a major differentiator. Customers consistently report that our systems deliver superior training capabilities and withstands years of rigorous real-world use. This validation reinforces our reputation as trusted long-term training partner and helps drive repeated business and renewals. It's worth noting that we are driving initiatives in our sales organization to accelerate adoption of our new systems. We continue to strengthen our value proposition ensuring that VirTra remains well-positioned to win and retain customers across multiple market segments.

我們對產品品質的重視仍然是我們的主要差異化優勢。客戶一致反映，我們的系統具有卓越的培訓能力，並且能夠經得起多年嚴苛的實際使用。這項驗證鞏固了我們作為值得信賴的長期培訓合作夥伴的聲譽，並有助於推動業務的重複開展和續約。值得注意的是，我們正在銷售部門推行各項舉措，以加速新系統的採用。我們不斷加強自身的價值主張，確保 VirTra 在多個細分市場中保持良好的地位，從而贏得並留住客戶。

International markets continue to gain momentum in Q3, as we more than doubled revenue compared to the same period last year, while international activity can be lumpy, we're encouraged by new developments in Canada and Colombia. These wins demonstrate the growing global recognition of VirTra's training solutions as they diversify our revenue beyond our core US market.

第三季國際市場持續保持成長勢頭，我們的營收比去年同期成長了一倍多。雖然國際市場活動可能會波動，但我們對加拿大和哥倫比亞的新發展感到鼓舞。這些勝利表明 VirTra 的培訓解決方案在全球範圍內獲得了越來越多的認可，使我們的收入來源不再局限於美國核心市場。

Our military work is also progressing. Early this month, we demonstrated our next-generation Soldier Virtual Trainer or SVT system for the US Army at our Orlando training facility. The system exceeded expectations and showed how our portable V-100 can deliver a complete ready-to-deploy solution for weapon skills, joint fires and the use of force training.

我們的軍事工作也在取得進展。本月初，我們在奧蘭多訓練基地向美國陸軍展示了我們的下一代士兵虛擬訓練器（SVT）系統。該系統超出了預期，並展示了我們的便攜式 V-100 如何為武器技能、聯合火力和武力使用訓練提供完整的即用型解決方案。

We also introduced our new analytics platform, APEX, which tracks performance in real time, measuring accuracy, reduction time and decision-making. APEX gives commanders valuable insight into soldier readiness. Every new VirTra's simulator will now include APEX at no additional cost, further demonstrating our commitment to provide data-driven, science-based training aligned with the Army's modernization goals. While these sales cycles are longer than our traditional law enforcement market, we are building strong relationships with our military partners as part of our long-term growth strategy.

我們還推出了新的分析平台 APEX，它可以即時追蹤效能，衡量準確性、縮短時間和決策能力。APEX 為指揮官提供了有關士兵戰備情況的寶貴資訊。VirTra 的每一台新模擬器現在都將包含 APEX，無需額外費用，這進一步表明了我們致力於提供以數據驅動、以科學為基礎的訓練，以符合陸軍的現代化目標。雖然這些銷售週期比我們傳統的執法市場要長，但作為我們長期成長策略的一部分，我們正在與我們的軍事合作夥伴建立牢固的關係。

Overall, Q3 showed continuous progress despite ongoing funding timing challenges. Our core law enforcement business remains a central focus as we are seeing stronger engagement across our customer base. Our meaningful backlog expanded product portfolios, improved marketing foundation and international momentum give us a solid base to convert opportunities into revenue as grant awards and customer acceptance picked back up.

總體而言，儘管資金到位方面仍面臨挑戰，但第三季業績仍持續取得進展。我們的核心執法業務仍然是我們的重點，因為我們看到我們的客戶群對該業務的參與度越來越高。我們豐富的積壓訂單、擴展的產品組合、改進的營銷基礎和國際發展勢頭為我們提供了堅實的基礎，隨著撥款和客戶認可度的回升，我們可以將機會轉化為收入。

With that, I'll turn it over to Alanna for the details of the financial review. Alanna?

接下來，我將把財務審查的細節交給阿蘭娜。阿蘭娜？

Thank you, John, and good afternoon, everyone. Now, let's review our unaudited financial results for the third quarter and nine months ended September 30, 2025.

謝謝你，約翰，大家下午好。現在，讓我們回顧一下截至 2025 年 9 月 30 日的第三季和前九個月未經審計的財務表現。

Our total revenue for the third quarter was $5.3 million compared to $7.5 million in the prior year period. The decrease can primarily be attributed to lower revenues from the government sector due to those funding delays.

第三季總營收為 530 萬美元，而去年同期為 750 萬美元。下降的主要原因是政府部門因資金延遲到位而導致收入減少。

Breaking this down by market, our government revenue for the third quarter was $4.1 million compared to $6.9 million in the prior year period. International revenue for the third quarter was $1.2 million compared to $0.4 million in the prior year period. Our total revenue for nine months was $19.5 million compared to $20.9 million in the prior year period.

按市場細分，我們第三季的政府收入為 410 萬美元，而去年同期為 690 萬美元。第三季國際營收為 120 萬美元，而去年同期為 40 萬美元。我們前九個月的總收入為 1,950 萬美元，而去年同期為 2,090 萬美元。

Gross profit for the third quarter was $3.5 million or 66% of total revenue compared to $5.5 million or 73% of total revenue in the prior year period. Last year's unusually high gross margin reflected capitalized labor on development of the XR and the IVAS program and a greater mix of high-margin service and STEP revenue.

第三季毛利為 350 萬美元，佔總營收的 66%，而上年同期毛利為 550 萬美元，佔總營收的 73%。去年異常高的毛利率反映了 XR 和 IVAS 項目的開發投入的資本化勞動力，以及高利潤率的服務和 STEP 收入的更大比例。

Our gross profit for the nine months was $13.5 million or 69% of total revenue compared to $15.7 million or 75% of total revenue in the prior-year period. The change in gross margin reflects that higher mix of capital sales in 2025 relative to the service and STEP revenue as well as the absence of unusual low cost of sales recorded in 2024 due to the capitalized labor and development projects.

前九個月的毛利為 1,350 萬美元，佔總營收的 69%，而上年同期為 1,570 萬美元，佔總營收的 75%。毛利率的變化反映了 2025 年資本銷售額相對於服務和 STEP 收入的較高比例，以及由於資本化的勞動力和開發項目，2024 年沒有出現異常低的銷售成本。

Our net operating expense for the third quarter was $4 million down 16% from $4.7 million in the prior year period. Our net operating expense for the nine months was $11.7 million or down 11% from the $13.2 million in the prior-year period. These decreases reflect our disciplined cost management while maintaining investment in our core growth initiatives.

第三季淨營運支出為 400 萬美元，比去年同期的 470 萬美元下降了 16%。前九個月的淨營運支出為 1,170 萬美元，比上年同期的 1,320 萬美元下降了 11%。這些下降反映了我們在保持對核心成長計畫投資的同時，採取了嚴格的成本管理措施。

The operating loss for the third quarter was $0.5 million compared to operating income of $0.8 million in the prior-year period. Operating income for the nine months was $1.8 million compared to $3.3 million in the prior-year period. Net loss for the third quarter was $0.4 million or $0.03 per diluted share compared to net income of $0.6 million or $0.05 per diluted share in the prior-year period.

第三季營業虧損為 50 萬美元，而去年同期營業收入為 80 萬美元。前九個月的營業收入為 180 萬美元，而去年同期為 330 萬美元。第三季淨虧損為 40 萬美元，即每股攤薄虧損 0.03 美元，而去年同期淨利為 60 萬美元，即每股攤薄獲利 0.05 美元。

Net income for the nine months was $1.1 million or $0.09 per diluted share compared to $2.3 million or $0.21 per diluted share in the prior-year period. Adjusted EBITDA, a non-GAAP metric, was $0.1 million for the third quarter and $2.5 million for the first nine months of 2025. As of September 30, our cash and cash equivalents totaled $20.8 million compared to $18 million at December 31, 2024. Working capital was $32.9 million, and we maintained a debt-like balance sheet.

前九個月的淨收入為 110 萬美元，即每股攤薄收益 0.09 美元，而上年同期為 230 萬美元，即每股攤薄收益 0.21 美元。經調整的 EBITDA（非 GAAP 指標）第三季為 10 萬美元，2025 年前九個月為 250 萬美元。截至 9 月 30 日，我們的現金及現金等價物總額為 2,080 萬美元，而截至 2024 年 12 月 31 日為 1,800 萬美元。營運資金為 3,290 萬美元，我們維持著類似負債的資產負債表。

VirTra that define bookings as the total of newly signed contracts awarded RFPs and purchase orders received in a given period. Bookings for the third quarter was $8.4 million, up from $4.6 million in Q2. VirTra defines backlog as the accumulation of bookings from signed contracts and purchase orders that are not yet started or are incomplete in their performance obligations, and therefore, cannot yet be recognized as revenue until delivered in a future period.

VirTra 將預訂量定義為在給定期間內新簽署的合約、授予的 RFP 和收到的採購訂單的總和。第三季預訂額為 840 萬美元，高於第二季的 460 萬美元。VirTra 將積壓訂單定義為已簽署合約和採購訂單的累計訂單，這些訂單尚未開始履行或履行義務尚未完成，因此，在將來交付之前，還不能確認為收入。

We segment these backlog into three primary categories: capital, which includes our simulator systems, accessories, installation, training, custom content, and design work; service, which is primarily extended warranties and support contracts; and STEP, our long-term subscription-based program. Our backlog as of September 30, 2025, stood at $21.9 million. This includes $10.2 million in capital, $5.3 million in service, and $6.4 million in STEP contracts.

我們將這些積壓訂單分為三大類：資本，包括我們的模擬器系統、配件、安裝、培訓、客製化內容和設計工作；服務，主要是延長保固和支援合約；以及 STEP，我們的長期訂閱計劃。截至 2025 年 9 月 30 日，我們的積壓訂單金額為 2,190 萬美元。其中包括 1,020 萬美元的資本支出、530 萬美元的服務支出和 640 萬美元的 STEP 合約支出。

Additionally, we are continuing to track renewable STEP contract options, which are not yet included in the backlog total. New capital bookings are largely expected to convert to revenue in the upcoming quarters due to customers having requested deferred deliveries. 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.

此外，我們也持續追蹤可再生 STEP 合約選項，這些選項尚未計入積壓訂單總數。由於客戶要求延期交貨，預計未來幾季新增資本預訂將大多轉化為收入。與以往一樣，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。

So in review, our backlog, recurring revenue base and strong balance sheet provide flexibility as funding will resume. Looking forward, we believe the combination of our disciplined cost management and enhanced contract structures and ongoing demand recovery will support continued progress. Our updated STEP program with its three-year commitment and strong 95% renewal trends improves recurring revenue, visibility and reinforces long-term customer relationships and position VirTra for sustainable growth.

綜上所述，我們的積壓訂單、經常性收入基礎和強勁的資產負債表為資金恢復提供了靈活性。展望未來，我們相信，嚴格的成本管理、完善的合約結構以及持續的需求復甦相結合，將有助於我們取得持續進展。我們更新的 STEP 計劃，憑藉三年的承諾和 95% 的強勁續約率，提高了經常性收入和知名度，加強了與客戶的長期關係，並為 VirTra 的可持續增長奠定了基礎。

That concludes my prepared remarks, and I'll turn the call back over to John for his closing comments. John?

我的演講稿到此結束，接下來我將把電話交給約翰，請他作總結發言。約翰？

Thank you, Alanna. As we finish out 2025 and look towards 2026, we stand ready to deliver critical training tools to our law enforcement partners when budgets open back up. We have remained focused on improving our sales process, products, and operations to strengthen our foundation. We look forward to reaccelerating our business growth in the quarters ahead.

謝謝你，阿蘭娜。2025 年即將結束，2026 年即將到來，我們已做好準備，一旦預算恢復，將為我們的執法合作夥伴提供關鍵的培訓工具。我們一直專注於改善銷售流程、產品和運營，以鞏固我們的基礎。我們期待在接下來的幾個季度重新加速業務成長。

That concludes my prepared remarks. Operator?

我的發言稿到此結束。操作員？

(Operator Instructions) Richard Baldry, ROTH Capital Partners.

（操作說明）理查德·鮑德里，ROTH Capital Partners。

Thanks. Looking at the booking strength in the quarter, can you talk a bit about were there any multiyear deals that skewed that result? Or is it a fairly typical cadence versus prior? And then maybe -- was a lot of that international versus domestic or disproportionately?

謝謝。從本季的預訂情況來看，您能否談談是否有任何多年期協議影響了這一結果？或者說，這與之前的節奏相比，是一種相當典型的節奏？那麼，其中有多少是國際因素造成的，又有多少是國內因素造成的，或者說，有多少是國際因素造成的，或者說，有多少是不成比例的？

Alanna, you want to take that?

阿蘭娜，你想拿那個嗎？

Yeah. Actually, at the end of the quarter was when we received a booking of about $4.8 million that we anticipate most of becoming revenue in 2026, and it did skew to the international customer.

是的。事實上，我們在本季末收到了一筆約 480 萬美元的訂單，我們預計其中大部分將在 2026 年轉化為收入，而這筆訂單主要來自國際客戶。

Okay. And then how does the shutdown or the funding backdrop impact military and your prospects there versus your typical police agency business?

好的。那麼，政府停擺或資金狀況會對軍隊以及您在軍隊的前景產生怎樣的影響，與您在一般警察機構的業務相比又會如何呢？

Well, it affects both proportionately. Most of the agencies that we're dealing with have -- they rely a lot on government funding, whether it's full funding for the system under the COPS or some of these grant programs, or if it's a matched funding, it affects them pretty significantly.

嗯，它對兩者都有相應的影響。我們所接觸的大多數機構都非常依賴政府資金，無論是 COPS 下的全額撥款，還是某些撥款計劃，亦或是配套資金，都會對它們產生相當大的影響。

As far as the military goes, when it shut down, we get no funding, the $4.8 million that came in from the Colombian that we -- the Columbia deal that we looked at was from INL, which is International Narcotics Law Enforcement. And there was a window where everything started to open up, they awarded it very quickly and then we went into the shutdown. So there's a lot of pent-up demand and there's a lot of folks looking at our systems and wanting to talk the SVT program that we reported on.

就軍方而言，當它關閉時，我們就沒有資金了，我們從哥倫比亞獲得的 480 萬美元——我們考察的哥倫比亞協議來自 INL，即國際麻醉品執法部門。然後出現了一個窗口期，一切開始好轉，他們很快就批准了項目，然後我們就進入了停擺期。所以現在有很多積壓的需求，很多人都在關注我們的系統，想跟我們討論我們曾經報道過的SVT專案。

They continued even during the shutdown asking questions and us providing information. So we're gaining a lot of traction there. Unfortunately, that probably moves the slowest, but it's the most rewarding. So we'll see some activity here coming forward as the shutdown ends and the funding continues to open up.

即使在停工期間，他們也繼續提出問題，我們也繼續提供資訊。所以我們在那方面獲得了很大的進展。遺憾的是，這條路走得最慢，但回報也最豐厚。隨著政府停擺結束和資金管道的逐步開放，我們將看到這方面出現一些活動。

The other side of that, though, Rich, is that a lot of these agencies that we have been talking to and the ones that have funding and that we have quotes in or have had deep discussions, a lot of them since the new administration came in last January, haven't had their official directors there.

但另一方面，里奇，我們一直在接觸的許多機構，以及那些獲得資金、我們已收到報價或已進行深入討論的機構，自去年一月新政府上任以來，很多機構的正式負責人都沒有到崗。

So they've been very hesitant to award or use any of the firms whether they do not have the authority or whether they don't want to take the responsibility. So we're seeing a lot of the directors are now being assigned to that the government opening up and the funding starting to open. I think that was the trifecta that put us in bad shape, but it's all coming together now. So we should see a lot of positivity moving forward in the next several quarters.

因此，他們一直非常猶豫是否要授予或聘用任何公司，無論是因為他們沒有權限還是因為他們不想承擔責任。所以我們看到，隨著政府開放和資金開始到位，許多董事現在都被派往那裡。我認為正是這三件事讓我們陷入了困境，但現在一切都好轉了。因此，在接下來的幾個季度裡，我們應該會看到很多積極的跡象。

Okay. And is there a way to think about the backlog in terms of what is actually funded, but maybe waiting certain milestones or something deployable on the client side versus what's awaiting funding to try to get a figure -- for a feel for how much of that you can convert to revenue near term before the bottlenecks hopefully open up.

好的。有沒有辦法從實際獲得資金但可能正在等待某些里程碑或客戶端可部署的內容，以及正在等待資金的內容的角度來考慮積壓工作，從而估算出一個數字——以便了解在瓶頸有望消除之前，有多少積壓工作可以在短期內轉化為收入。

Yeah, that's a good question. Remember, several years ago, we decided to break up the backlog, so gave you a little better idea of what was in the backlog. So when you look at those components to capital, capital is 10.5. Let me scroll back -- 10.2 in capital. The only thing that affects the conversion of that and has happened to us on several occasions, is the customer purchasing it, it's sitting on our docks but for some reason, whether right now, some of its funding or whether the building is ready to take it or whether they have everything lined up that they can take it. Sometimes, it's as little as 30 days, and we've had some there as long as a year. So those are the items that we talked about out of the control.

嗯，問得好。記住，幾年前，我們決定對積壓的工作進行拆分，這樣你就能更了解積壓的工作內容了。所以當你查看資本的這些組成部分時，資本是 10.5。讓我往前翻一下——資本是 10.2。唯一影響到貨物交付的因素，也是我們多次遇到的情況，就是客戶購買了貨物，貨物停放在我們的碼頭上，但由於某種原因，可能是目前資金不足，也可能是建築物尚未準備好接收貨物，或者他們是否已經安排好一切可以接收貨物。有時只需 30 天，有時甚至長達一年。以上就是我們討論的那些無法控制的因素。

The 5.3% in service contracts go -- we don't break it down of -- we have warranty of service in there for 2026, 2027, 2028, three years out, we don't break that down. So there's a portion of that, that would also be recognized.

服務合約中的 5.3% 屬於——我們不做細分——我們有 2026 年、2027 年、2028 年，也就是未來三年的服務保修，我們不做細分。所以，其中一部分也會得到認可。

And the same thing for the STEP program. The STEP program since we've changed our contracts and it's not an option for this STEP, but more of an obligation we can now recognize out years. So again, there's up to three years' worth of STEP contract to 6.4%.

STEP計畫也是如此。由於我們更改了合同，STEP 計劃不再是一個選項，而是我們現在可以承認的義務。所以，再次強調，STEP 合約期限最長可達三年，最高可達 6.4%。

So if you have to look at it, you could do -- as you look at it, Rich, a good portion of the 10.2 minus things we can't foresee. And maybe a third and a third would be something very, very rough for services and STEP because of the out years.

所以如果你必須審視它，你可以這樣做——正如你所看到的，里奇，10.2 的大部分減去我們無法預見的事情。或許三分之一加上三分之一對服務和 STEP 來說會非常非常困難，因為未來幾年會非常艱難。

And we do have some remaining on the five-year STEP, which may be two more years out. That's about as much as I can break down for you.

我們還有一些五年期 STEP 計畫的剩餘部分，可能還需要兩年才能完成。我只能為你解釋這麼多了。

Yeah. Got it. So even in a pretty tough quarter, you managed to be slightly EBITDA positive. I'm sort of curious the balance sheet is well funded. During this period, would you view acquisitions or something as a way to bolster your offerings, waiting for things to move forward or buybacks? Or do you feel like first, we want to see the bottlenecks ease up and then we start to think about what to do strategically with the balance sheet.

是的。知道了。所以即使在相當艱難的季度，你們也實現了略微正向的 EBITDA。我很好奇資產負債表上的資金狀況如何。在此期間，您會把收購或其他方式視為增強自身實力的一種途徑，還是會等待情況好轉或進行股票回購？或者您覺得，首先，我們希望看到瓶頸緩解，然後再開始考慮如何從策略上調整資產負債表？

Yeah. We've thought strategically for several years now, and with our Board and other advisers, we've looked at. There was too much uncertainty to make a move into the market. So we're just waiting to see as this clears up, but just like any good company, we'll eye technologies companies that would add something that's accretive to the balance sheet, accretive to our product offering without bearing too far off from our main focus. So we're always on the look and always for the hunt for those. But I think the STEP set back slightly and find out where it's going first is probably the safest bet and most protective for the shareholders at this moment.

是的。我們已經進行了幾年的策略思考，並與董事會和其他顧問一起研究。市場存在太多不確定因素，不宜貿然進入市場。所以我們現在只能靜觀其變，但就像任何一家優秀的公司一樣，我們會專注於那些能夠為資產負債表增添價值、豐富我們的產品線，同時又不會偏離我們主要業務的科技公司。所以我們一直在尋找，一直在搜尋。但我認為，STEP計畫稍微延後一下，先弄清楚它的走向，可能是目前最穩健、最能保護股東利益的做法。

Jaeson Schmidt, Lake Street Capital Markets.

傑森‧施密特，湖街資本市場。

Just curious if you could give an update on the V-XR and if you're seeing the same sort of headwinds you're seeing in the broader business in this market as well.

我很好奇您能否介紹一下 V-XR 的最新情況，以及您是否也像其他行業一樣，在這個市場中遇到了類似的阻力。

Yes. The V-XR is fully developed when it comes to training using our -- the, I would say, the library of training scenarios that we have, along with our V-VICTA, that's the certified training courses through the nationally recognized IADLEST program.

是的。V-XR 在培訓方面已經非常完善——可以說，我們擁有豐富的培訓場景庫，以及 V-VICTA，這是透過國家認可的 IADLEST 計畫認證的培訓課程。

There's over 105 hours of certified courses that they can get what would be called their equivalent continuing education. We're seeing the same headwinds for funding. It really doesn't matter how much it is, whether it's the funding or directorship or the leadership making those decisions. A lot of good market acceptance. It's just released at a time where things were a little tight.

他們可以通過超過 105 小時的認證課程獲得相當於繼續教育的學分。我們在資金方面也面臨同樣的阻力。資金、董事職位或領導階層做出這些決定，金額多少其實並不重要。市場反應良好。它發行的時候正值經濟情勢有點緊張時期。

But we see a lot of good comments from the sector and from the space and we're looking forward to host opening up and selling more.

但我們看到來自業內人士和相關領域的許多好評，我們期待舉辦更多活動並擴大銷售。

Okay. That makes sense. And then just as a follow-up, I mean gross margin, understanding the dynamics the STEP back in Q3, but what should we be thinking about gross margins going forward?

好的。這很有道理。然後，作為後續問題，我的意思是毛利率，了解了第三季 STEP 的動態，但我們應該如何看待未來的毛利率呢？

Go ahead, Alanna.

請繼續，阿蘭娜。

You would anticipate that our gross margins stay similar to what we are seeing in this quarter and potentially going down a little bit more? Like we've always kind of talked about the fact that we'd like it to be somewhere between 60% and 65%, right? And that's where -- so anything above that for us is a win.

您預計我們的毛利率將與本季的情況類似，甚至可能略有下降？我們一直以來都討論過，我們希望這個比例在 60% 到 65% 之間，對吧？所以對我們來說，任何高於這個目標的成績都是勝利。

Yeah, Jaeson. The only caveat I would make to that and I've reported in the past, I'm willing to sacrifice a little bit of gross margin to gain market share, especially in our segment as we start offering some of these new products for our first to market in a certain space with our type of content offering. I'd like to just jump in there, so we get the first foothold on that market segment and with that type of product, especially as the new technology comes out.

是的，傑森。我唯一要補充的是，我過去也曾說過，我願意犧牲一些毛利率來獲得市場份額，尤其是在我們這個細分市場，因為我們開始為特定領域提供一些新產品，作為我們這類內容產品的首創者。我想直接進入這個領域，這樣我們就能在這個細分市場和這類產品上搶佔先機，尤其是在新技術出現之後。

Thank you. And with that, at this time, this does conclude today's question-and-answer session. I'd now like to turn the call back over to Mr. Givens for his closing remarks.

謝謝。至此，今天的問答環節就結束了。現在我把電話交還給吉文斯先生，請他作總結發言。

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, customer success and advancing our growth initiatives. We do appreciate your trust and look forward to updating you on our continued progress in the quarters to come.

感謝您今天蒞臨現場，也感謝您一直以來對 VirTra 的支持。今年以來，我們已經取得了顯著進展。我們將繼續專注於執行、客戶成功和推進我們的成長計劃。我們非常感謝您的信任，並期待在接下來的幾季中向您報告我們的持續進展。

God bless you all, and let's continue to make great strides together.

願上帝保佑你們，讓我們繼續攜手並進，取得長足進步。

Thank you for joining us today for VirTra's third-quarter 2025 conference call. You may now disconnect your lines, and have a wonderful day.

感謝您今天參加 VirTra 2025 年第三季電話會議。現在您可以斷開線路了，祝您有美好的一天。