Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 07, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-38420 | |
Entity Registrant Name | VIRTRA, INC. | |
Entity Central Index Key | 0001085243 | |
Entity Tax Identification Number | 93-1207631 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 295 E. Corporate Place | |
Entity Address, City or Town | Chandler | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85225 | |
City Area Code | (480) | |
Local Phone Number | 968-1488 | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Trading Symbol | VTSI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,168,273 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 18,411,634 | $ 18,849,842 |
Accounts receivable, net | 9,124,425 | 15,724,147 |
Inventory, net | 13,470,715 | 12,404,880 |
Unbilled revenue | 1,389,658 | 1,109,616 |
Prepaid expenses and other current assets | 1,953,015 | 906,803 |
Total current assets | 44,349,447 | 48,995,288 |
Long-term assets: | ||
Property and equipment, net | 16,575,177 | 15,487,012 |
Operating lease right-of-use asset, net | 519,375 | 716,687 |
Intangible assets, net | 563,096 | 567,540 |
Security deposits, long-term | 35,691 | 35,691 |
Other assets, long-term | 201,670 | 201,670 |
Deferred tax asset, net | 3,780,112 | 3,630,154 |
Total long-term assets | 21,675,121 | 20,638,754 |
Total assets | 66,024,568 | 69,634,042 |
Current liabilities: | ||
Accounts payable | 1,013,483 | 2,282,427 |
Accrued compensation and related costs | 1,920,367 | 2,221,416 |
Accrued expenses and other current liabilities | 573,510 | 3,970,559 |
Note payable, current | 230,457 | 226,355 |
Operating lease liability, short-term | 189,098 | 317,840 |
Deferred revenue, short-term | 5,619,406 | 6,736,175 |
Total current liabilities | 9,546,321 | 15,754,772 |
Long-term liabilities: | ||
Deferred revenue, long-term | 3,022,676 | 3,012,206 |
Note payable, long-term | 7,690,940 | 7,813,021 |
Operating lease liability, long-term | 353,710 | 432,176 |
Total long-term liabilities | 11,067,326 | 11,257,403 |
Total liabilities | 20,613,647 | 27,012,175 |
Commitments and contingencies (See Note 9) | ||
Stockholders’ equity: | ||
Preferred stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding | ||
Common stock value | 1,110 | 1,109 |
Additional paid-in capital | 32,329,917 | 31,957,765 |
Retained earnings | 13,079,894 | 10,662,993 |
Total stockholders’ equity | 45,410,921 | 42,621,867 |
Total liabilities and stockholders’ equity | 66,024,568 | 69,634,042 |
Common Class A [Member] | ||
Stockholders’ equity: | ||
Common stock value | ||
Common Class B [Member] | ||
Stockholders’ equity: | ||
Common stock value |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 2,500,000 | 2,500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 11,112,230 | 11,107,230 |
Common stock, shares outstanding | 11,112,230 | 11,107,230 |
Common Class A [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 2,500,000 | 2,500,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Common Class B [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 7,500,000 | 7,500,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||||
Total revenue | $ 6,075,040 | $ 10,336,903 | $ 14,169,438 | $ 20,363,838 |
Cost of sales | 550,424 | 4,416,202 | 3,182,681 | 7,494,199 |
Gross profit | 5,524,616 | 5,920,701 | 10,986,757 | 12,869,639 |
Operating expenses: | ||||
General and administrative | 3,537,910 | 3,280,344 | 6,908,332 | 5,991,681 |
Research and development | 855,285 | 711,754 | 1,548,665 | 1,478,050 |
Net operating expense | 4,393,195 | 3,992,098 | 8,456,997 | 7,469,731 |
Income (loss) from operations | 1,131,421 | 1,928,603 | 2,529,760 | 5,399,908 |
Other income (expense): | ||||
Other income | 156,870 | 208,599 | 486,141 | 392,240 |
Gain on forgiveness of note payable | (133,078) | (200,305) | ||
Net other income (expense) | 156,870 | 75,521 | 486,141 | 191,935 |
Income (Loss) before provision for income taxes | 1,288,291 | 2,004,124 | 3,015,901 | 5,591,843 |
Provision (Benefit) for income taxes | 87,564 | 977,489 | 599,000 | 1,618,834 |
Net income (loss) | $ 1,200,727 | $ 1,026,635 | $ 2,416,901 | $ 3,973,009 |
Net income (loss) per common share: | ||||
Basic | $ 0.11 | $ 0.09 | $ 0.22 | $ 0.36 |
Diluted | $ 0.11 | $ 0.09 | $ 0.22 | $ 0.36 |
Weighted average shares outstanding: | ||||
Basic | 11,063,366 | 10,924,714 | 10,885,965 | 10,921,033 |
Diluted | 11,065,866 | 10,933,130 | 10,885,965 | 10,925,702 |
Net Sales [Member] | ||||
Revenues: | ||||
Total revenue | $ 6,075,040 | $ 10,336,903 | $ 14,169,438 | $ 20,363,838 |
Condensed Statements of Changes
Condensed Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock, Common [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2022 | $ 1,089 | $ 31,420,395 | $ 2,260,135 | $ 33,681,619 | ||
Balance, shares at Dec. 31, 2022 | 10,900,759 | |||||
Stock options exercised | $ 2 | 27,200 | 27,202 | |||
Balance, shares | 10,000 | |||||
Stock reserved for future services | $ 1 | 199,475 | 199,475 | |||
Net income | 3,973,009 | 3,973,009 | ||||
Stock options repurchased | (17,568) | (17,568) | ||||
Stock reserved for future services | 74,999 | 75,000 | ||||
Balance at Jun. 30, 2023 | $ 1,092 | 31,704,501 | 6,233,144 | 37,938,737 | ||
Balance, shares at Jun. 30, 2023 | 10,926,774 | |||||
Balance at Dec. 31, 2022 | $ 1,089 | 31,420,395 | 2,260,135 | 33,681,619 | ||
Balance, shares at Dec. 31, 2022 | 10,900,759 | |||||
Balance at Dec. 31, 2023 | $ 1,109 | 31,957,765 | 10,662,993 | 42,621,867 | ||
Balance, shares at Dec. 31, 2023 | 11,107,230 | |||||
Balance at Mar. 31, 2023 | $ 1,109 | 31,536,182 | 5,206,508 | 36,743,781 | ||
Balance, shares at Mar. 31, 2023 | 10,924,274 | |||||
Stock options exercised | $ 1 | 10,475 | 10,476 | |||
Balance, shares | 2,500 | |||||
Stock reserved for future services | 175,412 | 175,412 | ||||
Net income | 1,026,635 | 1,026,635 | ||||
Stock options repurchased | (17,568) | (17,568) | ||||
Balance at Jun. 30, 2023 | $ 1,092 | 31,704,501 | 6,233,144 | 37,938,737 | ||
Balance, shares at Jun. 30, 2023 | 10,926,774 | |||||
Balance at Jun. 30, 2024 | $ 1,110 | 32,329,917 | 13,079,894 | 45,410,921 | ||
Balance, shares at Jun. 30, 2024 | 11,112,230 | |||||
Balance at Dec. 31, 2023 | $ 1,109 | 31,957,765 | 10,662,993 | 42,621,867 | ||
Balance, shares at Dec. 31, 2023 | 11,107,230 | |||||
Balance at Mar. 31, 2024 | $ 1,110 | 32,108,513 | 11,879,166 | 43,988,789 | ||
Balance, shares at Mar. 31, 2024 | 11,109,730 | |||||
Balance at Dec. 31, 2023 | $ 1,109 | 31,957,765 | 10,662,993 | 42,621,867 | ||
Balance, shares at Dec. 31, 2023 | 11,107,230 | |||||
Stock options exercised | $ 1 | 20,149 | 20,150 | |||
Balance, shares | 5,000 | |||||
Stock reserved for future services | 352,003 | 352,003 | ||||
Net income | 2,416,901 | 2,416,901 | ||||
Balance at Jun. 30, 2024 | $ 1,110 | 32,329,917 | 13,079,894 | 45,410,921 | ||
Balance, shares at Jun. 30, 2024 | 11,112,230 | |||||
Balance at Mar. 31, 2024 | $ 1,110 | 32,108,513 | 11,879,166 | 43,988,789 | ||
Balance, shares at Mar. 31, 2024 | 11,109,730 | |||||
Stock options exercised | 9,400 | 9,400 | ||||
Balance, shares | 2,500 | |||||
Stock reserved for future services | 212,004 | 212,004 | ||||
Net income | 1,200,727 | 1,200,727 | ||||
Balance at Jun. 30, 2024 | $ 1,110 | $ 32,329,917 | $ 13,079,894 | $ 45,410,921 | ||
Balance, shares at Jun. 30, 2024 | 11,112,230 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | |
Cash flows from operating activities: | ||||||
Net income | $ 1,200,727 | $ 1,026,635 | $ 2,416,901 | $ 3,973,009 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 525,077 | 479,889 | ||||
Right of use amortization | 197,312 | 244,580 | $ 496,127 | |||
Employee stock compensation | 352,005 | 199,475 | ||||
Stock issued for service | 75,000 | |||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable, net | 6,599,722 | (14,928,520) | ||||
Inventory, net | (1,065,835) | (375,211) | ||||
Deferred taxes | (149,958) | (3,122,905) | ||||
Unbilled revenue | (280,044) | 5,063,881 | ||||
Prepaid expenses and other current assets | (1,046,213) | (15,281) | ||||
Other assets | 173,999 | |||||
Accounts payable and other accrued expenses | (4,967,236) | 3,792,847 | ||||
Operating lease right of use | (207,208) | (257,677) | ||||
Deferred revenue | (1,106,299) | 5,010,384 | ||||
Net cash provided by operating activities | 1,268,224 | 313,470 | ||||
Cash flows from investing activities: | ||||||
Purchase of property and equipment | (1,608,798) | (345,640) | ||||
Net cash (used in) investing activities | (1,608,798) | (345,640) | ||||
Cash flows from financing activities: | ||||||
Principal payments of debt | (117,785) | (118,087) | ||||
Stock Options Exercised | 20,151 | 9,634 | ||||
Repurchase of Stock based options | ||||||
Net cash (used in) financing activities | (97,634) | (108,453) | ||||
Net (decrease) in cash | (438,208) | (140,623) | ||||
Cash and restricted cash, beginning of period | 18,849,842 | 13,483,597 | $ 13,342,974 | 13,483,597 | ||
Cash and restricted cash, end of period | $ 18,411,634 | $ 13,342,974 | 18,411,634 | 13,342,974 | $ 18,411,634 | $ 18,849,842 |
Supplemental disclosure of cash flow information: | ||||||
Interest paid | 84,403 | 134,514 | ||||
Income taxes paid (refunded) | $ 5,314,387 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Organization and Significant Accounting Policies | Note 1. Organization and Significant Accounting Policies Organization and Business Operations VirTra, Inc. (the “Company,” “VirTra,” “we,” “us” or “our”), located in Chandler, Arizona, is a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement, military, educational and commercial markets. The Company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. The Company sells its products worldwide through a direct sales force and international distribution partners. The original business started in 1993 as Ferris Productions, Inc and ultimately became VirTra, Inc., a Nevada corporation. Basis of Presentation The unaudited financial statements included herein have been prepared by us without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our audited financial statements for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on April 1, 2024. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by the SEC, although we believe the disclosures that are made are adequate to make the information presented herein not misleading. The accompanying unaudited financial statements reflect, in our opinion, all normal recurring adjustments necessary to present fairly our financial position on June 30, 2024, and the results of our operations and cash flows for the periods presented. We derived the December 31, 2023, balance sheet data from audited financial statements; however, we did not include all disclosures required by GAAP. Interim results are subject to seasonal variations, and the results of operations for the three and six months ended June 30, 2024, are not necessarily indicative of the results to be expected for the full year. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Significant accounting estimates in these financial statements include valuation assumptions for share-based payments, allowance for doubtful accounts, inventory reserves, accrual for warranty reserves, the carrying value of long-lived assets and intangible assets, income tax valuation allowances, and the allocation of the transaction price to the performance obligations in our contracts with customers. Revenue Recognition The Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customer (Topic 606) (“ASC 606”) on January 1, 2018, and the Company elected to use the modified retrospective transition method which requires application of ASC 606 to uncompleted contracts at the date of adoption. The adoption of ASC 606 did not have a material impact on the financial statements. Under ASC 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant judgment is necessary when making these determinations. VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) The Company’s primary sources of revenue are derived from simulator and accessories sales, training and installation, the sale of customizable software and the sale of extended service-type warranties. The Company’s policy is to typically invoice upon completion of installation and/or training until such a time the performance obligations that have been satisfied are included in unbilled. Sales discounts are presented in the financial statements as reductions in determining net revenues. Credit sales are recorded as current assets (accounts receivable and unbilled revenue). Prepaid deposits received at the time of sale and extended warranties purchased are recorded as current and long-term liabilities (deferred revenue) until earned. The following briefly summarizes the nature of our performance obligations and method of revenue recognition: Performance Obligation Method of Recognition Simulator and accessories Upon transfer of control STEP Program Deferred and recognized over the life of the contract Installation and training Upon completion or over the period of services being rendered Extended service-type warranty Deferred and recognized over the life of the extended warranty Customized software and content Upon transfer of control or over the period services are performed depending on the terms of the contract Customized content scenario As performance obligation is transferred over time (input method using time and materials expanded) Design and prototyping Recognized at the completion of each agreed upon milestone Sales-based royalty exchanged for license of intellectual property Recognized as the performance obligation is satisfied over time – which is as the sales occur. The Company recognizes revenue upon transfer of control or upon completion of the services for the simulator and accessories; for the installation and training and customized software performance obligations as the customer has the right and ability to direct the use of these products and services and the customer obtains all of the remaining benefit from these products and services at that time. Revenue from certain customized content contracts may be recognized over the period the services are performed based on the terms of the contract. For the sales-based royalty exchanged for license of intellectual property, the Company recognized revenue as the sales occur over time. The Company recognizes revenue on a straight-line basis over the period of services being rendered for the extended service-type warranties as these warranties represent a performance obligation to “stand ready to perform” over the duration of the warranties. As such, the warranty service is performed continuously over the warranty period. Each contract states the transaction price. The contracts do not include variable consideration, significant financing components or noncash consideration. The Company has elected to exclude sales and similar taxes from the measurement of the transaction price. The contract’s transaction price is allocated to the performance obligations based upon their stand-alone selling prices. Discounts on the stand-alone selling prices, if any, are allocated proportionately to each performance obligation. VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) Disaggregation of Revenue Under ASC 606, disaggregated revenue from contracts with customers depicts the nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors. The Company has evaluated revenues recognized and the following table illustrates the disaggregation disclosure by customer’s location and performance obligation. Schedule of Disaggregation of Revenue Commercial Government International Total Commercial Government International Total Three Months Ended June 30 2024 2023 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 136,571 $ 1,927,438 $ 477,837 $ 2,541,846 $ 73,099 $ 7,365,343 $ 355,630 $ 7,794,072 Extended Service-type warranties 72,000 1,332,049 22,103 1,426,152 21,367 599,390 16,257 637,014 Customized software and content - 17,127 82,500 99,627 4,800 277,555 82,855 365,210 Installation and training 4,196 157,691 6,650 168,537 19,702 154,280 208,141 382,123 Design & Prototyping - 863,582 - 863,582 - - - - STEP - 965,810 9,486 975,296 - 1,140,948 17,536 1,158,484 Total Revenue $ 212,767 $ 5,263,697 $ 598,576 $ 6,075,040 $ 118,968 $ 9,537,516 $ 680,419 $ 10,336,903 Commercial Government International Total Commercial Government International Total Six Months Ended June 30 2024 2023 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 212,351 $ 5,738,695 $ 1,756,095 $ 7,707,141 $ 562,908 $ 12,114,712 $ 3,507,795 $ 16,185,415 Extended Service-type warranties 72,000 2,202,851 26,305 2,301,156 44,711 1,138,598 35,680 1,218,989 Customized software and content - 282,533 82,500 365,033 24,300 284,751 65,994 375,045 Installation and training 4,196 394,030 11,814 410,040 40,264 403,834 261,829 705,927 Design & Prototyping - 1,446,908 - 1,446,908 - - - - STEP - 1,920,160 19,000 1,939,160 - 1,871,221 7,242 1,878,463 Total Revenue $ 288,547 $ 11,985,177 $ 1,895,714 $ 14,169,438 $ 672,183 $ 15,813,115 $ 3,878,540 $ 20,363,838 Commercial customers include selling through prime contractors for military or law enforcement contracts domestically and until it becomes a larger portion of the revenue will include any healthcare sales. Government customers are defined as directly selling to government agencies. For the three months ended June 30, 2024, governmental customers comprised $ 5,263,697 87 212,767 3 598,576 10 9,537,516 92 118,968 1 680,419 7 11,985,177 85 288,547 2 1,895,714 13 15,813,115 78 672,183 3 3,878,540 19 1,920,160 1,871,221 14 9 Customer Deposits Customer deposits consist of prepaid deposits received for equipment purchase orders and for Subscription Training Equipment Partnership (“STEP”) operating agreements that expire annually. Customer deposits are considered a deferred liability until the completion of the customer’s contract performance obligation. When revenue is recognized, the deposit is applied to the customer’s receivable balance. Customer deposits are recorded as a current liability under deferred revenue on the accompanying balance sheet and totaled $ 1,466,632 4,047,269 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) Warranty The Company warranties its products from manufacturing defects on a limited basis for a period of one year after purchase, but also sells separately priced extended service-type warranties for periods of up to four years after the expiration of the standard one-year warranty. During the term of the initial one-year warranty, if the device fails to operate properly from defects in materials and workmanship, the Company will fix or replace the defective product. Deferred revenue for separately priced extended warranties one year or less totaled $ 2,510,297 2,627,763 2,930,779 2,974,710 295,000 354,000 2,301,156 1,218,989 Concentration of Credit Risk and Major Customers and Suppliers Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, certificates of deposit, and accounts receivable. The Company’s cash, cash equivalents and certificates of deposit are maintained with financial institutions with high credit standings and are FDIC insured deposits. The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. The standard deposit insurance coverage limit is $ 250,000 17,911,634 18,349,842 Sales are typically made on credit and the Company generally does not require collateral. Management performs ongoing credit evaluations of its customers’ financial condition and maintains an allowance for estimated losses. Historically, the Company has experienced minimal charges relative to doubtful accounts. Historically, the Company primarily sells its products to U.S. federal, state and municipal agencies. As of June 30, 2024, the Company had three customer that accounted for 24 11 10 28 14 As of June 30 th 13 For the three months ended June 30, 2024, and 2023, the Company had 2 customer that accounted for 14 12 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) Net Income per Common Share The net income per common share is computed by dividing net income by the weighted average of common shares outstanding. Diluted net income per share reflects the potential dilution, using the treasury stock method, that would occur if outstanding stock options and warrants were exercised. Earnings per share computations are as follows: Schedule of Earnings Per Share 2024 2023 Three Months Ended June 30 2024 2023 Net Income (Loss) $ 1,200,727 $ 1,026,635 Weighted average common stock outstanding 11,063,366 10,924,714 Incremental shares from stock options 2,500 8,416 Weighted average common stock outstanding, diluted 11,065,866 10,933,130 Net Income (Loss) per common share and common equivalent share Basic $ 0.11 $ 0.09 Diluted $ 0.11 $ 0.09 2024 2023 Six Months Ended June 30 2024 2023 Net Income (Loss) $ 2,416,901 $ 3,973,009 Weighted average common stock outstanding 10,885,965 10,921,033 Incremental shares from stock options 4,669 Weighted average common stock outstanding, diluted 10,885,965 10,925,702 Net Income (Loss) per common share and common equivalent share Basic $ 0.22 $ 0.36 Diluted $ 0.22 $ 0.36 |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 2. Inventory Inventory consisted of the following as of: Schedule of Inventory June 30, 2024 December 31, 2023 Raw materials, WIP, finished goods and Materials being inspected $ 13,961,002 $ 12,834,368 Reserve (490,287 ) (429,488 ) Total Inventory $ 13,470,715 $ 12,404,880 The Company regularly evaluates the useful life of its spare parts inventory but did not have any cause to reclassify any this quarter. VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 3. Property and Equipment Property and equipment consisted of the following as of: Schedule of Property and Equipment June 30, 2024 December 31, 2023 Land $ 1,778,987 $ 1,778,987 Building & Building Improvements 9,146,555 9,146,556 Computer equipment 1,282,359 1,236,989 Furniture and office equipment 314,006 292,208 Machinery and equipment 4,366,452 2,865,014 STEP equipment 2,391,683 2,241,291 Leasehold improvements 358,584 358,584 Construction in Progress 2,346,058 2,456,259 Total property and equipment 21,984,684 20,375,888 Less: Accumulated depreciation and amortization (5,409,507 ) (4,888,876 ) Property and equipment, net $ 16,575,177 $ 15,487,012 Depreciation expenses, including STEP depreciation, were $ 520,633 463,605 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 4. Intangible Assets Intangible asset consisted of the following as of: Schedule of Intangible Asset June 30, 2024 December 31, 2023 Patents $ 160,000 $ 160,000 Capitalized media content 451,244 451,244 Acquired lease intangible assets 83,963 83,963 Total intangible assets 695,207 695,207 Less accumulated amortization (132,111 ) (127,667 ) Intangible assets, net $ 563,096 $ 567,540 Amortization expenses were $ 4,936 15,792 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases | |
Leases | Note 5. Leases The Company leases approximately 37,729 4,529 5,131 9,350 The Company’s lease agreements do not contain any residual value guarantees, restrictive covenants, or variable lease payments. The Company has not entered into any financing leases. VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) In addition to base rent, the Company’s lease provides for additional payments for other charges, such as rental tax. The lease includes fixed rent escalations. The Company’s lease does not include an option to renew. The Company determines if an arrangement is a lease at inception. Operating leases are recorded in operating lease right of use assets, net, operating lease liability – short-term, and operating lease liability – long-term on its balance sheets. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s lease does not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate used at adoption was 4.5 Effective June 1, 2022, the Company obtained a right-of-use asset in exchange for a new operating lease liability of $ 840,855 1,721,380 46,523 1,674,857 Based on the requirements to move and leave the building in compliance with the company’s lease term, VirTra chose to use the hold over option in the lease agreement for the period of one additional month. The cost of this was split with the subtenant, this extended the lease through May 31, 2024, at which time VirTra entirely vacated the property. The balance sheet classification of lease assets and liabilities as of June 30, 2024 are as follows: Schedule of Balance Sheet Classification of Lease Assets and Liabilities Balance Sheet Classification June 30, 2024 December 31, 2023 Assets Operating lease right-of-use assets, December 31, 2023 $ 716,687 $ 1,212,814 Amortization for the six months ended June 30 (197,312 ) (496,127 ) Total operating lease right-of-use asset, June 30, 2024 $ 519,375 $ 716,687 Liabilities Current Operating lease liability, short-term $ 189,098 $ 317,840 Non-current Operating lease liability, long-term 353,710 432,176 Total lease liabilities $ 542,808 $ 750,016 NON-Cancelable operating leases Schedule of Future Minimum Lease Payments 2024 $ 94,388 2025 191,425 2026 196,311 2027 99,381 Total Lease Payments 581,505 Less: imputed interest (38,697 ) Operating Lease Liability $ 542,808 Rent expenses for the six months ended June 30, 2024, and 2023, were $ 335,316 284,139 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Note 6. Accrued Expenses Accrued compensation and related costs consist of the following as of: Schedule of Accrued Compensation and Related Costs June 30, 2024 December 31, 2023 Salaries and wages payable $ 428,823 $ 457,565 Employee benefits payable 31,706 54,811 Accrued paid time off (PTO) 428,931 361,418 Profit sharing payable 1,030,907 1,347,622 Total accrued compensation and related costs $ 1,920,367 $ 2,221,416 Accrued expenses and other current liabilities consisted of the following as of: Schedule of Accrued Expenses and Other Current Liabilities June 30, 2024 December 31, 2023 Manufacturer’s warranties $ 295,000 $ 354,000 Taxes payable 11,192 3,411,669 Miscellaneous payable 267,318 204,890 Total accrued expenses and other current liabilities $ 573,510 $ 3,970,559 |
Note Payable
Note Payable | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Note Payable | Note 7. Note Payable On August 25, 2021, the Company completed the purchase of real property located in Chandler, Arizona (the “Property”) for $ 10,800,000 8,600,000 3 40,978 5,956,538 August 23, 2031 Schedule of Notes Payable June 30, 2024 December 31, 2023 Short-term liabilities Note payable, principal $ 220,896 $ 222,320 Accrued interest to date 9,562 4,035 Note Payable, short-term $ 230,458 $ 226,355 Long-term liabilities Note payable, principal $ 7,690,940 $ 7,813,021 Note payable, long term $ 7,690,940 $ 7,813,021 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 8. Related Party Transactions During the six months ended June 30, 2024, one Board member purchased 5,000 0.0001 10,750 9,400 During the six months ended June 30, 2024, the Company redeemed 10,000 59,600 During the six months ended June 30, 2023, one Board member and the Company’s Executive Chairman (then Co-CEO) purchased a total of 10,000 0.0001 27,200 10,000 21,150 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9. Commitments and Contingencies Litigation From time to time, the Company is notified of litigation or that a claim is being made against it. The Company evaluates contingencies on an on-going basis and has established loss provisions for matters in which losses are probable and the amount of loss can be reasonably estimated. There is no pending litigation at this time. Restricted Stock Unit Grants On August 26, 2021, and April 11, 2022, the Compensation Committee of the Board of Directors granted a total of 392,223 288,889 168,090 40,229 On December 1, 2022, the Company granted a total of 15,000 42,735 It is the Company’s policy to estimate the fair value of the RSU’s on the date of the grant and evaluate the probability of achieving the net profit (net income under GAAP) tranches quarterly. If the target is deemed probable, the expense is amortized on a straight-line basis over the remaining period. The Company determined based on the vesting terms described above that the net profit (net income under GAAP) for the twelve months ending June 30, 2023, was $ 4,564,459 22,988 9,142 29,630 11,394 6,500,000 352,003 Profit Sharing VirTra provides a discretionary profit-sharing program that pays out a percentage of Company profits each year as a cash bonus to eligible employees. The cash payment is typically split into two equal payments and distributed pro-rata in April and October of the following year to only active employees. For the six months ended June 30, 2024, and 2023, $ 313,500 300,000 |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 10. Stockholders’ Equity Stock Repurchase On October 25, 2016, the Company’s Board of Directors authorized the repurchase of up to $ 1 1 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) Non-qualified Stock Options The Company has periodically issued non-qualified stock options to key employees, officers and directors under a stock option compensation plan approved by the Board of Directors in 2009. Terms of option grants are at the discretion of the Board of Directors and are generally seven years. Upon the exercise of these options, the Company expects to issue new authorized shares of its common stock. The following table summarizes all non-qualified stock options as of: Schedule of Non-Qualified Stock Options June 30,2024 December 31, 2023 Number of Weighted Number of Weighted Options outstanding, beginning of year 15,000 $ 4.03 45,000 $ 4.26 Granted - - - - Redeemed (10,000 ) 3.76 (15,000 ) 5.09 Exercised (5,000 ) 3.76 (15,000 ) 3.66 Expired / terminated - - - - Options outstanding, end of period - $ - 15,000 $ 4.03 Options exercisable, end of period - $ - 15,000 $ 4.03 The Company did not have any non-vested stock options outstanding as of June 30, 2024, and December 31, 2023. The weighted average contractual term for options outstanding and exercisable on June 30, 2024, and 2023 was 7 0 9,750 9,400 16,726 20,150 23,724 2017 Equity Incentive Plan Through June 30, 2024, 224,133 288,889 17,753 158,976 10,543 14,057 Common stock activity During the three months ended June 30, 2024, one Board member purchased 2,500 3.76 9,400 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11. Subsequent Events Effective July 12, 2024, Robert D. Ferris resigned as the Executive Chairman and a director of the Company. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Organization and Business Operations | Organization and Business Operations VirTra, Inc. (the “Company,” “VirTra,” “we,” “us” or “our”), located in Chandler, Arizona, is a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement, military, educational and commercial markets. The Company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. The Company sells its products worldwide through a direct sales force and international distribution partners. The original business started in 1993 as Ferris Productions, Inc and ultimately became VirTra, Inc., a Nevada corporation. |
Basis of Presentation | Basis of Presentation The unaudited financial statements included herein have been prepared by us without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our audited financial statements for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on April 1, 2024. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by the SEC, although we believe the disclosures that are made are adequate to make the information presented herein not misleading. The accompanying unaudited financial statements reflect, in our opinion, all normal recurring adjustments necessary to present fairly our financial position on June 30, 2024, and the results of our operations and cash flows for the periods presented. We derived the December 31, 2023, balance sheet data from audited financial statements; however, we did not include all disclosures required by GAAP. Interim results are subject to seasonal variations, and the results of operations for the three and six months ended June 30, 2024, are not necessarily indicative of the results to be expected for the full year. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Significant accounting estimates in these financial statements include valuation assumptions for share-based payments, allowance for doubtful accounts, inventory reserves, accrual for warranty reserves, the carrying value of long-lived assets and intangible assets, income tax valuation allowances, and the allocation of the transaction price to the performance obligations in our contracts with customers. |
Revenue Recognition | Revenue Recognition The Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customer (Topic 606) (“ASC 606”) on January 1, 2018, and the Company elected to use the modified retrospective transition method which requires application of ASC 606 to uncompleted contracts at the date of adoption. The adoption of ASC 606 did not have a material impact on the financial statements. Under ASC 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant judgment is necessary when making these determinations. VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) The Company’s primary sources of revenue are derived from simulator and accessories sales, training and installation, the sale of customizable software and the sale of extended service-type warranties. The Company’s policy is to typically invoice upon completion of installation and/or training until such a time the performance obligations that have been satisfied are included in unbilled. Sales discounts are presented in the financial statements as reductions in determining net revenues. Credit sales are recorded as current assets (accounts receivable and unbilled revenue). Prepaid deposits received at the time of sale and extended warranties purchased are recorded as current and long-term liabilities (deferred revenue) until earned. The following briefly summarizes the nature of our performance obligations and method of revenue recognition: Performance Obligation Method of Recognition Simulator and accessories Upon transfer of control STEP Program Deferred and recognized over the life of the contract Installation and training Upon completion or over the period of services being rendered Extended service-type warranty Deferred and recognized over the life of the extended warranty Customized software and content Upon transfer of control or over the period services are performed depending on the terms of the contract Customized content scenario As performance obligation is transferred over time (input method using time and materials expanded) Design and prototyping Recognized at the completion of each agreed upon milestone Sales-based royalty exchanged for license of intellectual property Recognized as the performance obligation is satisfied over time – which is as the sales occur. The Company recognizes revenue upon transfer of control or upon completion of the services for the simulator and accessories; for the installation and training and customized software performance obligations as the customer has the right and ability to direct the use of these products and services and the customer obtains all of the remaining benefit from these products and services at that time. Revenue from certain customized content contracts may be recognized over the period the services are performed based on the terms of the contract. For the sales-based royalty exchanged for license of intellectual property, the Company recognized revenue as the sales occur over time. The Company recognizes revenue on a straight-line basis over the period of services being rendered for the extended service-type warranties as these warranties represent a performance obligation to “stand ready to perform” over the duration of the warranties. As such, the warranty service is performed continuously over the warranty period. Each contract states the transaction price. The contracts do not include variable consideration, significant financing components or noncash consideration. The Company has elected to exclude sales and similar taxes from the measurement of the transaction price. The contract’s transaction price is allocated to the performance obligations based upon their stand-alone selling prices. Discounts on the stand-alone selling prices, if any, are allocated proportionately to each performance obligation. VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) |
Disaggregation of Revenue | Disaggregation of Revenue Under ASC 606, disaggregated revenue from contracts with customers depicts the nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors. The Company has evaluated revenues recognized and the following table illustrates the disaggregation disclosure by customer’s location and performance obligation. Schedule of Disaggregation of Revenue Commercial Government International Total Commercial Government International Total Three Months Ended June 30 2024 2023 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 136,571 $ 1,927,438 $ 477,837 $ 2,541,846 $ 73,099 $ 7,365,343 $ 355,630 $ 7,794,072 Extended Service-type warranties 72,000 1,332,049 22,103 1,426,152 21,367 599,390 16,257 637,014 Customized software and content - 17,127 82,500 99,627 4,800 277,555 82,855 365,210 Installation and training 4,196 157,691 6,650 168,537 19,702 154,280 208,141 382,123 Design & Prototyping - 863,582 - 863,582 - - - - STEP - 965,810 9,486 975,296 - 1,140,948 17,536 1,158,484 Total Revenue $ 212,767 $ 5,263,697 $ 598,576 $ 6,075,040 $ 118,968 $ 9,537,516 $ 680,419 $ 10,336,903 Commercial Government International Total Commercial Government International Total Six Months Ended June 30 2024 2023 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 212,351 $ 5,738,695 $ 1,756,095 $ 7,707,141 $ 562,908 $ 12,114,712 $ 3,507,795 $ 16,185,415 Extended Service-type warranties 72,000 2,202,851 26,305 2,301,156 44,711 1,138,598 35,680 1,218,989 Customized software and content - 282,533 82,500 365,033 24,300 284,751 65,994 375,045 Installation and training 4,196 394,030 11,814 410,040 40,264 403,834 261,829 705,927 Design & Prototyping - 1,446,908 - 1,446,908 - - - - STEP - 1,920,160 19,000 1,939,160 - 1,871,221 7,242 1,878,463 Total Revenue $ 288,547 $ 11,985,177 $ 1,895,714 $ 14,169,438 $ 672,183 $ 15,813,115 $ 3,878,540 $ 20,363,838 Commercial customers include selling through prime contractors for military or law enforcement contracts domestically and until it becomes a larger portion of the revenue will include any healthcare sales. Government customers are defined as directly selling to government agencies. For the three months ended June 30, 2024, governmental customers comprised $ 5,263,697 87 212,767 3 598,576 10 9,537,516 92 118,968 1 680,419 7 11,985,177 85 288,547 2 1,895,714 13 15,813,115 78 672,183 3 3,878,540 19 1,920,160 1,871,221 14 9 |
Customer Deposits | Customer Deposits Customer deposits consist of prepaid deposits received for equipment purchase orders and for Subscription Training Equipment Partnership (“STEP”) operating agreements that expire annually. Customer deposits are considered a deferred liability until the completion of the customer’s contract performance obligation. When revenue is recognized, the deposit is applied to the customer’s receivable balance. Customer deposits are recorded as a current liability under deferred revenue on the accompanying balance sheet and totaled $ 1,466,632 4,047,269 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) |
Warranty | Warranty The Company warranties its products from manufacturing defects on a limited basis for a period of one year after purchase, but also sells separately priced extended service-type warranties for periods of up to four years after the expiration of the standard one-year warranty. During the term of the initial one-year warranty, if the device fails to operate properly from defects in materials and workmanship, the Company will fix or replace the defective product. Deferred revenue for separately priced extended warranties one year or less totaled $ 2,510,297 2,627,763 2,930,779 2,974,710 295,000 354,000 2,301,156 1,218,989 |
Concentration of Credit Risk and Major Customers and Suppliers | Concentration of Credit Risk and Major Customers and Suppliers Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, certificates of deposit, and accounts receivable. The Company’s cash, cash equivalents and certificates of deposit are maintained with financial institutions with high credit standings and are FDIC insured deposits. The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. The standard deposit insurance coverage limit is $ 250,000 17,911,634 18,349,842 Sales are typically made on credit and the Company generally does not require collateral. Management performs ongoing credit evaluations of its customers’ financial condition and maintains an allowance for estimated losses. Historically, the Company has experienced minimal charges relative to doubtful accounts. Historically, the Company primarily sells its products to U.S. federal, state and municipal agencies. As of June 30, 2024, the Company had three customer that accounted for 24 11 10 28 14 As of June 30 th 13 For the three months ended June 30, 2024, and 2023, the Company had 2 customer that accounted for 14 12 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) |
Net Income per Common Share | Net Income per Common Share The net income per common share is computed by dividing net income by the weighted average of common shares outstanding. Diluted net income per share reflects the potential dilution, using the treasury stock method, that would occur if outstanding stock options and warrants were exercised. Earnings per share computations are as follows: Schedule of Earnings Per Share 2024 2023 Three Months Ended June 30 2024 2023 Net Income (Loss) $ 1,200,727 $ 1,026,635 Weighted average common stock outstanding 11,063,366 10,924,714 Incremental shares from stock options 2,500 8,416 Weighted average common stock outstanding, diluted 11,065,866 10,933,130 Net Income (Loss) per common share and common equivalent share Basic $ 0.11 $ 0.09 Diluted $ 0.11 $ 0.09 2024 2023 Six Months Ended June 30 2024 2023 Net Income (Loss) $ 2,416,901 $ 3,973,009 Weighted average common stock outstanding 10,885,965 10,921,033 Incremental shares from stock options 4,669 Weighted average common stock outstanding, diluted 10,885,965 10,925,702 Net Income (Loss) per common share and common equivalent share Basic $ 0.22 $ 0.36 Diluted $ 0.22 $ 0.36 |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Disaggregation of Revenue | Under ASC 606, disaggregated revenue from contracts with customers depicts the nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors. The Company has evaluated revenues recognized and the following table illustrates the disaggregation disclosure by customer’s location and performance obligation. Schedule of Disaggregation of Revenue Commercial Government International Total Commercial Government International Total Three Months Ended June 30 2024 2023 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 136,571 $ 1,927,438 $ 477,837 $ 2,541,846 $ 73,099 $ 7,365,343 $ 355,630 $ 7,794,072 Extended Service-type warranties 72,000 1,332,049 22,103 1,426,152 21,367 599,390 16,257 637,014 Customized software and content - 17,127 82,500 99,627 4,800 277,555 82,855 365,210 Installation and training 4,196 157,691 6,650 168,537 19,702 154,280 208,141 382,123 Design & Prototyping - 863,582 - 863,582 - - - - STEP - 965,810 9,486 975,296 - 1,140,948 17,536 1,158,484 Total Revenue $ 212,767 $ 5,263,697 $ 598,576 $ 6,075,040 $ 118,968 $ 9,537,516 $ 680,419 $ 10,336,903 Commercial Government International Total Commercial Government International Total Six Months Ended June 30 2024 2023 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 212,351 $ 5,738,695 $ 1,756,095 $ 7,707,141 $ 562,908 $ 12,114,712 $ 3,507,795 $ 16,185,415 Extended Service-type warranties 72,000 2,202,851 26,305 2,301,156 44,711 1,138,598 35,680 1,218,989 Customized software and content - 282,533 82,500 365,033 24,300 284,751 65,994 375,045 Installation and training 4,196 394,030 11,814 410,040 40,264 403,834 261,829 705,927 Design & Prototyping - 1,446,908 - 1,446,908 - - - - STEP - 1,920,160 19,000 1,939,160 - 1,871,221 7,242 1,878,463 Total Revenue $ 288,547 $ 11,985,177 $ 1,895,714 $ 14,169,438 $ 672,183 $ 15,813,115 $ 3,878,540 $ 20,363,838 |
Schedule of Earnings Per Share | The net income per common share is computed by dividing net income by the weighted average of common shares outstanding. Diluted net income per share reflects the potential dilution, using the treasury stock method, that would occur if outstanding stock options and warrants were exercised. Earnings per share computations are as follows: Schedule of Earnings Per Share 2024 2023 Three Months Ended June 30 2024 2023 Net Income (Loss) $ 1,200,727 $ 1,026,635 Weighted average common stock outstanding 11,063,366 10,924,714 Incremental shares from stock options 2,500 8,416 Weighted average common stock outstanding, diluted 11,065,866 10,933,130 Net Income (Loss) per common share and common equivalent share Basic $ 0.11 $ 0.09 Diluted $ 0.11 $ 0.09 2024 2023 Six Months Ended June 30 2024 2023 Net Income (Loss) $ 2,416,901 $ 3,973,009 Weighted average common stock outstanding 10,885,965 10,921,033 Incremental shares from stock options 4,669 Weighted average common stock outstanding, diluted 10,885,965 10,925,702 Net Income (Loss) per common share and common equivalent share Basic $ 0.22 $ 0.36 Diluted $ 0.22 $ 0.36 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of: Schedule of Inventory June 30, 2024 December 31, 2023 Raw materials, WIP, finished goods and Materials being inspected $ 13,961,002 $ 12,834,368 Reserve (490,287 ) (429,488 ) Total Inventory $ 13,470,715 $ 12,404,880 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following as of: Schedule of Property and Equipment June 30, 2024 December 31, 2023 Land $ 1,778,987 $ 1,778,987 Building & Building Improvements 9,146,555 9,146,556 Computer equipment 1,282,359 1,236,989 Furniture and office equipment 314,006 292,208 Machinery and equipment 4,366,452 2,865,014 STEP equipment 2,391,683 2,241,291 Leasehold improvements 358,584 358,584 Construction in Progress 2,346,058 2,456,259 Total property and equipment 21,984,684 20,375,888 Less: Accumulated depreciation and amortization (5,409,507 ) (4,888,876 ) Property and equipment, net $ 16,575,177 $ 15,487,012 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Asset | Intangible asset consisted of the following as of: Schedule of Intangible Asset June 30, 2024 December 31, 2023 Patents $ 160,000 $ 160,000 Capitalized media content 451,244 451,244 Acquired lease intangible assets 83,963 83,963 Total intangible assets 695,207 695,207 Less accumulated amortization (132,111 ) (127,667 ) Intangible assets, net $ 563,096 $ 567,540 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases | |
Schedule of Balance Sheet Classification of Lease Assets and Liabilities | The balance sheet classification of lease assets and liabilities as of June 30, 2024 are as follows: Schedule of Balance Sheet Classification of Lease Assets and Liabilities Balance Sheet Classification June 30, 2024 December 31, 2023 Assets Operating lease right-of-use assets, December 31, 2023 $ 716,687 $ 1,212,814 Amortization for the six months ended June 30 (197,312 ) (496,127 ) Total operating lease right-of-use asset, June 30, 2024 $ 519,375 $ 716,687 Liabilities Current Operating lease liability, short-term $ 189,098 $ 317,840 Non-current Operating lease liability, long-term 353,710 432,176 Total lease liabilities $ 542,808 $ 750,016 |
Schedule of Future Minimum Lease Payments | NON-Cancelable operating leases Schedule of Future Minimum Lease Payments 2024 $ 94,388 2025 191,425 2026 196,311 2027 99,381 Total Lease Payments 581,505 Less: imputed interest (38,697 ) Operating Lease Liability $ 542,808 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Compensation and Related Costs | Accrued compensation and related costs consist of the following as of: Schedule of Accrued Compensation and Related Costs June 30, 2024 December 31, 2023 Salaries and wages payable $ 428,823 $ 457,565 Employee benefits payable 31,706 54,811 Accrued paid time off (PTO) 428,931 361,418 Profit sharing payable 1,030,907 1,347,622 Total accrued compensation and related costs $ 1,920,367 $ 2,221,416 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following as of: Schedule of Accrued Expenses and Other Current Liabilities June 30, 2024 December 31, 2023 Manufacturer’s warranties $ 295,000 $ 354,000 Taxes payable 11,192 3,411,669 Miscellaneous payable 267,318 204,890 Total accrued expenses and other current liabilities $ 573,510 $ 3,970,559 |
Note Payable (Tables)
Note Payable (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Schedule of Notes Payable June 30, 2024 December 31, 2023 Short-term liabilities Note payable, principal $ 220,896 $ 222,320 Accrued interest to date 9,562 4,035 Note Payable, short-term $ 230,458 $ 226,355 Long-term liabilities Note payable, principal $ 7,690,940 $ 7,813,021 Note payable, long term $ 7,690,940 $ 7,813,021 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Non-Qualified Stock Options | Schedule of Non-Qualified Stock Options June 30,2024 December 31, 2023 Number of Weighted Number of Weighted Options outstanding, beginning of year 15,000 $ 4.03 45,000 $ 4.26 Granted - - - - Redeemed (10,000 ) 3.76 (15,000 ) 5.09 Exercised (5,000 ) 3.76 (15,000 ) 3.66 Expired / terminated - - - - Options outstanding, end of period - $ - 15,000 $ 4.03 Options exercisable, end of period - $ - 15,000 $ 4.03 |
Schedule of Disaggregation of R
Schedule of Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Simulators and accessories | $ 2,541,846 | $ 7,794,072 | $ 7,707,141 | $ 16,185,415 |
Extended Service-type warranties | 1,426,152 | 637,014 | 2,301,156 | 1,218,989 |
Customized software and content | 99,627 | 365,210 | 365,033 | 375,045 |
Installation and training | 168,537 | 382,123 | 410,040 | 705,927 |
Design & Prototyping | 863,582 | 1,446,908 | ||
STEP | 975,296 | 1,158,484 | 1,939,160 | 1,878,463 |
Total Revenue | 6,075,040 | 10,336,903 | 14,169,438 | 20,363,838 |
Commercial [Member] | ||||
Simulators and accessories | 136,571 | 73,099 | 212,351 | 562,908 |
Extended Service-type warranties | 72,000 | 21,367 | 72,000 | 44,711 |
Customized software and content | 4,800 | 24,300 | ||
Installation and training | 4,196 | 19,702 | 4,196 | 40,264 |
Design & Prototyping | ||||
STEP | ||||
Total Revenue | 212,767 | 118,968 | 288,547 | 672,183 |
Government [Member] | ||||
Simulators and accessories | 1,927,438 | 7,365,343 | 5,738,695 | 12,114,712 |
Extended Service-type warranties | 1,332,049 | 599,390 | 2,202,851 | 1,138,598 |
Customized software and content | 17,127 | 277,555 | 282,533 | 284,751 |
Installation and training | 157,691 | 154,280 | 394,030 | 403,834 |
Design & Prototyping | 863,582 | 1,446,908 | ||
STEP | 965,810 | 1,140,948 | 1,920,160 | 1,871,221 |
Total Revenue | 5,263,697 | 9,537,516 | 11,985,177 | 15,813,115 |
Geographic Distribution, Foreign [Member] | ||||
Simulators and accessories | 477,837 | 355,630 | 1,756,095 | 3,507,795 |
Extended Service-type warranties | 22,103 | 16,257 | 26,305 | 35,680 |
Customized software and content | 82,500 | 82,855 | 82,500 | 65,994 |
Installation and training | 6,650 | 208,141 | 11,814 | 261,829 |
Design & Prototyping | ||||
STEP | 9,486 | 17,536 | 19,000 | 7,242 |
Total Revenue | $ 598,576 | $ 680,419 | $ 1,895,714 | $ 3,878,540 |
Schedule of Earnings Per Share
Schedule of Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounting Policies [Abstract] | ||||
Net Income (Loss) | $ 1,200,727 | $ 1,026,635 | $ 2,416,901 | $ 3,973,009 |
Weighted average common stock outstanding | 11,063,366 | 10,924,714 | 10,885,965 | 10,921,033 |
Incremental shares from stock options | 2,500 | 8,416 | 4,669 | |
Weighted average common stock outstanding, diluted | 11,065,866 | 10,933,130 | 10,885,965 | 10,925,702 |
Basic | $ 0.11 | $ 0.09 | $ 0.22 | $ 0.36 |
Diluted | $ 0.11 | $ 0.09 | $ 0.22 | $ 0.36 |
Organization and Significant _4
Organization and Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Product Information [Line Items] | |||||
Revenue | $ 6,075,040 | $ 10,336,903 | $ 14,169,438 | $ 20,363,838 | |
Customer deposits, current | 5,619,406 | 5,619,406 | $ 6,736,175 | ||
Revenue recognized | 2,301,156 | 1,218,989 | |||
FDIC insured amount | 250,000 | 250,000 | |||
Uninsured cash and cash equivalents | 17,911,634 | 17,911,634 | 18,349,842 | ||
Warranty [Member] | One Year or Less [Member] | |||||
Product Information [Line Items] | |||||
Extended warranties | 2,510,297 | 2,510,297 | 2,627,763 | ||
Warranty [Member] | Longer Than One Year [Member] | |||||
Product Information [Line Items] | |||||
Extended warranties | 2,930,779 | 2,930,779 | 2,974,710 | ||
Warranty [Member] | One Year [Member] | |||||
Product Information [Line Items] | |||||
Extended warranties | 295,000 | 295,000 | 354,000 | ||
Deferred Revenue [Member] | |||||
Product Information [Line Items] | |||||
Customer deposits, current | 1,466,632 | 1,466,632 | $ 4,047,269 | ||
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Government Customers [Member] | |||||
Product Information [Line Items] | |||||
Revenue | $ 5,263,697 | $ 9,537,516 | $ 11,985,177 | $ 15,813,115 | |
Concentration of credit risk percentage | 87% | 92% | 85% | 78% | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Commercial Customers [Member] | |||||
Product Information [Line Items] | |||||
Revenue | $ 212,767 | $ 118,968 | $ 288,547 | $ 672,183 | |
Concentration of credit risk percentage | 3% | 1% | 2% | 3% | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | International Customers [Member] | |||||
Product Information [Line Items] | |||||
Revenue | $ 598,576 | $ 680,419 | $ 1,895,714 | $ 3,878,540 | |
Concentration of credit risk percentage | 10% | 7% | 13% | 19% | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | STEP Revenue [Member] | |||||
Product Information [Line Items] | |||||
Revenue | $ 1,920,160 | $ 1,871,221 | |||
Concentration of credit risk percentage | 14% | 9% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk percentage | 24% | 28% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customer [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk percentage | 11% | 14% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customer [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk percentage | 10% | ||||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier One [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk percentage | 13% | ||||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier Two [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk percentage | 13% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk percentage | 14% | 14% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Customer [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk percentage | 12% | 12% |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials, WIP, finished goods and Materials being inspected | $ 13,961,002 | $ 12,834,368 |
Reserve | (490,287) | (429,488) |
Total Inventory | $ 13,470,715 | $ 12,404,880 |
Schedule of Property and Equipm
Schedule of Property and Equipment (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 21,984,684 | $ 20,375,888 |
Less: Accumulated depreciation and amortization | (5,409,507) | (4,888,876) |
Property and equipment, net | 16,575,177 | 15,487,012 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,778,987 | 1,778,987 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 9,146,555 | 9,146,556 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,282,359 | 1,236,989 |
Furniture And Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 314,006 | 292,208 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 4,366,452 | 2,865,014 |
STEP Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,391,683 | 2,241,291 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 358,584 | 358,584 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 2,346,058 | $ 2,456,259 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 520,633 | $ 463,605 |
Schedule of Intangible Asset (D
Schedule of Intangible Asset (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 695,207 | $ 695,207 |
Less accumulated amortization | (132,111) | (127,667) |
Intangible assets, net | 563,096 | 567,540 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 160,000 | 160,000 |
Capitalized Media Content [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 451,244 | 451,244 |
Acquired Lease Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 83,963 | $ 83,963 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible asset | $ 4,936 | $ 15,792 |
Schedule of Balance Sheet Class
Schedule of Balance Sheet Classification of Lease Assets and Liabilities (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Leases | |||
Operating lease right-of-use assets, December 31, 2023 | $ 716,687 | $ 1,212,814 | $ 1,212,814 |
Amortization for the six months ended June 30 | (197,312) | $ (244,580) | (496,127) |
Total operating lease right-of-use asset, June 30, 2024 | 519,375 | 716,687 | |
Operating lease liability, short-term | 189,098 | 317,840 | |
Operating lease liability, long-term | 353,710 | 432,176 | |
Total lease liabilities | $ 542,808 | $ 750,016 |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Leases | ||
2024 | $ 94,388 | |
2025 | 191,425 | |
2026 | 196,311 | |
2027 | 99,381 | |
Total Lease Payments | 581,505 | |
Less: imputed interest | (38,697) | |
Operating Lease Liability | $ 542,808 | $ 750,016 |
Leases (Details Narrative)
Leases (Details Narrative) | 6 Months Ended | |||||||
Jun. 01, 2022 USD ($) ft² | Jan. 01, 2019 USD ($) | Jun. 30, 2024 USD ($) ft² | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Apr. 30, 2019 ft² | Mar. 31, 2019 ft² | |
Real Estate Properties [Line Items] | ||||||||
Incremental in borrowing rate | 4.50% | |||||||
Right-of-use asset in exchange a operating lease liability | $ 840,855 | $ 1,721,380 | ||||||
Deferred rent | 46,523 | |||||||
Operating lease right of use asset | $ 1,674,857 | $ 519,375 | $ 716,687 | $ 1,212,814 | ||||
Rent expenses | $ 335,316 | $ 284,139 | ||||||
Office and Warehouse Space [Member] | Unaffiliated Third Party [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Rentable square feet | ft² | 37,729 | |||||||
Office and Industrial Space [Member] | Unaffiliated Third Party [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Rentable square feet | ft² | 9,350 | 5,131 | 4,529 |
Schedule of Accrued Compensatio
Schedule of Accrued Compensation and Related Costs (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Salaries and wages payable | $ 428,823 | $ 457,565 |
Employee benefits payable | 31,706 | 54,811 |
Accrued paid time off (PTO) | 428,931 | 361,418 |
Profit sharing payable | 1,030,907 | 1,347,622 |
Total accrued compensation and related costs | $ 1,920,367 | $ 2,221,416 |
Schedule of Accrued Expenses an
Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Manufacturer’s warranties | $ 295,000 | $ 354,000 |
Taxes payable | 11,192 | 3,411,669 |
Miscellaneous payable | 267,318 | 204,890 |
Total accrued expenses and other current liabilities | $ 573,510 | $ 3,970,559 |
Schedule of Notes Payable (Deta
Schedule of Notes Payable (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Short-Term Debt [Line Items] | ||
Note Payable, short-term | $ 230,458 | $ 226,355 |
Note payable, long term | 7,690,940 | 7,813,021 |
Notes Payable [Member] | ||
Short-Term Debt [Line Items] | ||
Note payable, principal | 7,690,940 | 7,813,021 |
Notes Payable [Member] | ||
Short-Term Debt [Line Items] | ||
Note payable, principal | 220,896 | 222,320 |
Accrued interest to date | $ 9,562 | $ 4,035 |
Note Payable (Details Narrative
Note Payable (Details Narrative) - USD ($) | 6 Months Ended | ||
Aug. 25, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | |
Short-Term Debt [Line Items] | |||
Payment to acquire assets | $ 1,608,798 | $ 345,640 | |
Arizona Bank & Trust [Member] | |||
Short-Term Debt [Line Items] | |||
Proceeds from bank loan | $ 8,600,000 | ||
Debt instrument interest rate | 3% | ||
Arizona Bank & Trust [Member] | 199 Regular Monthly Payments [Member] | |||
Short-Term Debt [Line Items] | |||
Debt instrument periodic payment | $ 40,978 | ||
Arizona Bank & Trust [Member] | One Irregular Payment [Member] | |||
Short-Term Debt [Line Items] | |||
Debt instrument periodic payment | $ 5,956,538 | ||
Debt instrument maturity date | Aug. 23, 2031 | ||
Property [Member] | |||
Short-Term Debt [Line Items] | |||
Payment to acquire assets | $ 10,800,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Shares par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Exercise price of stock option | $ 9,400 | $ 10,476 | $ 20,150 | $ 27,202 | ||
Shares redeemed | 10,000 | |||||
Shares redeemed, value | $ 59,600 | |||||
Director [Member] | Common Stock [Member] | ||||||
Shares purchased award | 5,000 | |||||
Shares par value | $ 0.0001 | $ 0.0001 | ||||
Exercise price of stock option | $ 9,400 | $ 10,750 | ||||
Board Member and Executive Chairman [Member] | Common Stock [Member] | ||||||
Shares purchased award | 10,000 | |||||
Exercise price of stock option | $ 27,200 | |||||
Shares redeemed | 10,000 | |||||
Shares redeemed, value | $ 21,150 | |||||
Share price per share | $ 0.0001 | $ 0.0001 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jan. 01, 2023 | Dec. 01, 2022 | Apr. 11, 2022 | Aug. 26, 2021 | Jul. 31, 2024 | Aug. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Net income loss | $ 1,200,727 | $ 1,026,635 | $ 2,416,901 | $ 3,973,009 | ||||||||
Share based compensation | 352,005 | 199,475 | ||||||||||
Operating expenses | $ 4,393,195 | $ 3,992,098 | 8,456,997 | 7,469,731 | ||||||||
Deferred Profit Sharing [Member] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Operating expenses | 313,500 | $ 300,000 | ||||||||||
Chief Executive Officer [Member] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Shares awarded | 29,630 | |||||||||||
Shares to pay the tax withholding liability | 11,394 | |||||||||||
Executive Chairman [Member] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Shares awarded | 22,988 | |||||||||||
Shares to pay the tax withholding liability | 9,142 | |||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Net income loss | $ 4,564,459 | |||||||||||
Share based compensation | $ 352,003 | |||||||||||
Restricted Stock Units (RSUs) [Member] | Chief Executive Officer [Member] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Net income loss | $ 6,500,000 | |||||||||||
Restricted Stock Units (RSUs) [Member] | Chief Financial Officer [Member] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Number of shares granted | 15,000 | |||||||||||
Restricted Stock Units (RSUs) [Member] | Board of Directors Chairman [Member] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Number of shares Forfeited | 42,735 | |||||||||||
2017 Equity Incentive Plan [Member] | Chief Operating Officer [Member] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Stock of restricted stock units forfeited | 168,090 | |||||||||||
Number of shares Forfeited | 10,543 | |||||||||||
2017 Equity Incentive Plan [Member] | Chief Executive Officer [Member] | Subsequent Event [Member] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Stock of restricted stock units forfeited | 40,229 | |||||||||||
2017 Equity Incentive Plan [Member] | Executive Chairman [Member] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Number of shares Forfeited | 14,057 | |||||||||||
2017 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | Co-Chief Executive Officer and Chief Operating Officer[Member] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Number of shares granted | 288,889 | 392,223 |
Schedule of Non-Qualified Stock
Schedule of Non-Qualified Stock Options (Details) - Non Qualified Stock Option [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Offsetting Assets [Line Items] | ||
Number of Stock Options, Options outstanding, beginning of year | 15,000 | 45,000 |
Weighted Exercise Price, Option outstanding, beginning of year | $ 4.03 | $ 4.26 |
Number of Stock Options, Granted | ||
Weighted Exercise Price, Granted | ||
Number of Stock Options, Redeemed | (10,000) | (15,000) |
Weighted Exercise Price, Redeemed | $ 3.76 | $ 5.09 |
Number of Stock Options, Exercised | (5,000) | (15,000) |
Weighted Exercise Price, Exercised | $ 3.76 | $ 3.66 |
Number of Stock Options, Expired / terminated | ||
Weighted Exercise Price, Expired / terminated | ||
Number of Stock Options, Options outstanding, End of the year | 15,000 | |
Weighted Exercise Price, Option outstanding end of quarter | $ 4.03 | |
Number of Stock Options, Options exercisable, end of year | 15,000 | |
Weighted Exercise Price, Options exercisable, end of quarter | $ 4.03 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jan. 09, 2019 | Oct. 25, 2016 | |
Class of Stock [Line Items] | ||||||
Weighted average contractual term for options outstanding and exercisable | 7 years | 7 years | ||||
Options outstanding and exercisable | $ 0 | $ 9,750 | $ 0 | $ 9,750 | ||
Proceeds from exercise options | 9,400 | 16,726 | 20,150 | 23,724 | ||
Stock options exercise price | 9,400 | 10,476 | 20,150 | 27,202 | ||
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock options exercise price | $ 1 | $ 1 | $ 2 | |||
Board Member [Member] | Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued | 2,500 | |||||
Stock options exercise, price | $ 3.76 | |||||
Stock options exercise price | $ 9,400 | |||||
2017 Equity Incentive Plan [Member] | Executive Chairman [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued | 14,057 | |||||
2017 Equity Incentive Plan [Member] | Executive Chairman [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of restricted shares granted | 224,133 | |||||
Number of shares issued | 17,753 | |||||
2017 Equity Incentive Plan [Member] | Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of restricted shares granted | 288,889 | |||||
Number of shares issued | 158,976 | |||||
2017 Equity Incentive Plan [Member] | Chief Operating Officer [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued | 10,543 | |||||
Common Stock [Member] | Maximum [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase value authorized | $ 1,000,000 | $ 1,000,000 |