Friends and Shareholders:
Attached please find this morning's press release announcing sale of an IVR(R) HD-180 to the Kansas City Police Department (KCPD).
Our record of large municipal police department sales is shaping up with this most recent sale to the KCPD. Past sales to larger departments have included the City of Charleston, South Carolina, and the Duluth, Georgia Police Department. These municipalities have all demonstrated a strong commitment to training officers to the highest state of readiness and help better protect the citizenry.
Our development of the single-screen systems last year has also allowed our market reach to expand across the entire spectrum of customers, from the smallest customer who requires value and portability, to the largest customer who requires the realism of total immersion simulation with the most robust features.
VirTra Systems' engineers have developed two complete product lines, one for law enforcement, and one for military requirements, and I am pleased to relay to you all that these developments have positioned the Company quite favorably for growth as we secure firm footholds in the various simulator market channels.
Although our sales have markedly picked up, our stock price does not yet reflect our progress. However, I am confident, based on my current assessment, our sales will continue to grow as our name recognition is further established, and believe the "difference" between our improving performance and perceived value will soon narrow.
And to that end, I would like to share with you some very important events that have placed the Company in line for large government contracts. As you know, our engineers have developed a reputation for creating spectacular immersive simulation grounded in real-world pricing. Recently, due to fluxes within our specific market, prime defense contractors have been seeking us out to collaborate on upcoming simulation projects. In these request for proposal collaborations, VirTra Systems would act as a subcontractor to the prime defense contractor.
I might remind you that per federal regulations, prime defense contractors are required to utilize small businesses to fulfill contracting obligations, and even are given aggressive targets to reach. If these prime contractors do not meet these targets, future contract awards are jeopardized. This is quite beneficial to a smaller firm such as ours. It is the way the federal government has "leveled the playing field" for small businesses.
I have no way of knowing if any of these current initiatives will come to fruition, or precisely when; so, as of today, I don't feel these are yet "material." I can tell you though that they are sizable projects, and any one of them could completely change the fabric of our company overnight. Again, I don't know if we will gain this business; but, I can definitely assure you we have good chance through our STRONG partners to win.
I am committed to moving this company to profitability. With around $1.5 million yet to be reflected in our books, and the fall "high-season" yet to come, I remain bullish regarding our future.
It is my commitment to continue giving the same undying support so many here have already given the company, and continue moving us toward success.
These are simply my personal comments and should not be relied upon in your investment decisions. I strongly urge you to conduct your own due diligence with regard to any investment in VirTra Systems. I respectfully refer you to VirTra Systems' filings with the United States Securities and Exchange Commission.
--Major General Perry V. Dalby (USA-Retired), VirTra Systems' CEO |
