VirTra (VTSI) 10-Q 12 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 05, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	Q3
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		11,242,925

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 19,668,455	$ 18,849,842
Accounts receivable, net	7,216,751	15,724,147
Inventory, net	13,911,948	12,404,880
Unbilled revenue	2,258,930	1,109,616
Prepaid expenses and other current assets	1,886,148	906,803
Total current assets	44,942,232	48,995,288
Long-term assets:
Property and equipment, net	16,351,433	15,487,012
Operating lease right-of-use asset, net	478,474	716,687
Intangible assets, net	560,873	567,540
Security deposits, long-term	35,692	35,691
Other assets, long-term	201,670	201,670
Deferred tax asset, net	3,498,003	3,630,154
Total long-term assets	21,126,145	20,638,754
Total assets	66,068,377	69,634,042
Current liabilities:
Accounts payable	1,121,558	2,282,427
Accrued compensation and related costs	1,906,302	2,221,416
Accrued expenses and other current liabilities	708,952	3,970,559
Notes payable, current	230,824	226,355
Operating lease liability, short-term	192,294	317,840
Deferred revenue, short-term	4,797,825	6,736,175
Total current liabilities	8,957,755	15,754,772
Long-term liabilities:
Deferred revenue, long-term	3,022,676	3,012,206
Notes payable, long-term	7,629,800	7,813,021
Operating lease liability, long-term	308,109	432,176
Total long-term liabilities	10,960,585	11,257,403
Total liabilities	19,918,340	27,012,175
Commitments and contingencies (See Note 11)
Stockholders’ equity:
Preferred stock $0.0001 par value; 2,500,000 authorized; no shares issued or outstanding
Common stock value	1,123	1,109
Additional paid-in capital	32,485,919	31,957,765
Accumulated income	13,662,995	10,662,993
Total stockholders’ equity	46,150,037	42,621,867
Total liabilities and stockholders’ equity	66,068,377	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	Sep. 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	11,242,925	11,107,230
Common stock, shares outstanding	11,242,925	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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues:
Total revenue	$ 7,484,269	$ 7,561,582	$ 21,653,707	$ 27,925,420
Cost of sales	1,986,296	2,175,508	5,168,978	9,669,708
Gross profit	5,497,973	5,386,074	16,484,729	18,255,712
Operating expenses:
General and administrative	4,017,584	3,229,075	10,925,915	9,220,751
Research and development	724,757	487,388	2,273,422	1,965,438
Net operating expense	4,742,341	3,716,463	13,199,337	11,186,189
Income from operations	755,632	1,669,611	3,285,392	7,069,523
Other income (expense):
Other income	35,469	233,521	521,610	625,761
Other expense		(24,026)		(224,330)
Net other income	35,469	209,495	521,610	401,431
Income before provision for income taxes	791,101	1,879,106	3,807,002	7,470,954
Provision for income taxes	208,000	244,316	807,000	1,863,150
Net income	$ 583,101	$ 1,634,790	$ 3,000,002	$ 5,607,804
Net income per common share:
Basic	$ 0.05	$ 0.15	$ 0.27	$ 0.51
Diluted	$ 0.05	$ 0.15	$ 0.27	$ 0.51
Weighted average shares outstanding:
Basic	11,175,882	10,934,962	10,982,083	10,924,486
Diluted	11,175,882	10,942,509	10,982,083	10,929,155
Net Sales [Member]
Revenues:
Total revenue	$ 7,484,269	$ 7,561,582	$ 21,653,707	$ 27,925,420

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		$ 3	41,900			41,903
Stock options exercised, shares		12,500
Stock options repurchased		$ 1	74,999			75,000
Stock issued for services
Stock issued for services, shares		48,097
Stock reserved for future services		$ 1	267,474			267,475
Net income					5,607,804	5,607,804
Balance at Sep. 30, 2023		$ 1,094	31,804,768		7,867,939	39,673,801
Balance, shares at Sep. 30, 2023		10,961,356
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 Jun. 30, 2023		$ 1,092	31,704,500		6,233,149	37,938,741
Balance, shares at Jun. 30, 2023		10,926,774
Stock options exercised		$ 1	14,700			14,701
Stock options exercised, shares		2,500
Stock options repurchased			17,569			17,569
Stock issued for services		$ 1				1
Stock issued for services, shares		32,082
Stock reserved for future services			67,999			67,999
Net income					1,634,790	1,634,790
Balance at Sep. 30, 2023		$ 1,094	31,804,768		7,867,939	39,673,801
Balance, shares at Sep. 30, 2023		10,961,356
Balance at Jun. 30, 2023		$ 1,092	31,704,500		6,233,149	37,938,741
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
Stock options exercised		$ 1	20,149			20,150
Stock options exercised, shares		5,000
Stock issued for services		$ 13				13
Stock issued for services, shares		130,695
Stock reserved for future services			508,005			508,005
Net income					3,000,002	3,000,002
Balance at Sep. 30, 2024		$ 1,123	32,485,919		13,662,995	46,150,037
Balance, shares at Sep. 30, 2024		11,242,925
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
Stock issued for services		$ 13				13
Stock issued for services, shares		130,695
Stock reserved for future services			156,002			156,002
Net income					583,101	583,101
Balance at Sep. 30, 2024		$ 1,123	$ 32,485,919		$ 13,662,995	$ 46,150,037
Balance, shares at Sep. 30, 2024		11,242,925

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income (loss)	$ 3,000,002	$ 5,607,804
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	834,494	701,536
Right of use amortization	238,213	369,772
Reserve for RSU	508,003
Stock issued for service	12	342,475
Bad Debt Expense	(154,022)
Changes in operating assets and liabilities:
Accounts receivable, net	8,661,418	(11,131,628)
Inventory, net	(1,507,068)	(1,183,302)
Deferred taxes	132,151	(3,122,905)
Unbilled revenue	(1,149,314)	4,487,290
Prepaid expenses and other current assets	(979,345)	(779,538)
Other assets		174,791
Accounts payable and other accrued expenses	(4,737,781)	4,015,047
Lease liability	(249,614)	(392,103)
Deferred revenue	(1,927,880)	5,276,512
Net cash provided by operating activities	2,669,269	4,365,751
Cash flows from investing activities:
Purchase of intangible assets
Purchase of property and equipment	(1,692,249)	(512,249)
Net cash (used in) investing activities	(1,692,249)	(512,249)
Cash flows from financing activities:
Principal payments of debt	(178,559)	(177,824)
RSU issued	20,151	41,903
Net cash used in financing activities	(158,408)	(135,921)
Net increase in cash	818,612	3,717,581
Cash and restricted cash, beginning of period	18,849,843	13,483,597
Cash and restricted cash, end of period	19,668,455	17,201,178
Supplemental disclosure of cash flow information:
Interest Paid	182,419
Taxes Paid	$ 5,315,442

Organization and Significant Ac

Organization and Significant Accounting Policies	9 Months Ended
	Sep. 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. In September 2001, Ferris Productions, Inc. merged with GameCom, Inc. to ultimately become 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 September 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 nine months ended September 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 substantially 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 non-cash 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. 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. VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) Schedule of Disaggregation of Revenue Commercial Government International Total Commercial Government International Total Three Months Ended September 30 2024 2023 Commercial Government International Total Commercial Government International Total Simulators and accessories 165,852 4,045,332 308,718 4,519,902 8,948 2,371,841 237,897 2,618,686 Extended Service-type warranties 23,528 1,307,200 25,060 1,355,788 16,994 1,187,333 15,883 1,220,210 Customized software and content 15,420 107,942 - 123,362 - 451,500 (70,200 ) 381,300 Installation and training - 147,128 11,553 158,681 18,911 185,552 (5,056 ) 199,407 Licensing and royalties - - - - - - - Design & Prototyping - 398,672 - 398,672 - 2,488,219 - 2,488,219 STEP - 849,150 78,714 927,864 - 653,760 - 653,760 Total Revenue 204,800 6,855,424 424,045 7,484,269 44,853 7,338,205 178,524 7,561,582 Commercial Government International Total Commercial Government International Total Nine Months Ended September 30 2024 2023 Commercial Government International Total Commercial Government International Total Simulators and accessories 378,204 9,784,028 2,064,812 12,227,044 571,856 13,247,789 3,745,692 17,565,337 Extended Service-type warranties 95,528 3,510,051 51,365 3,656,944 61,705 2,325,931 51,563 2,439,199 Customized software and content 15,420 390,475 82,500 488,395 24,300 736,251 (4,206 ) 756,345 Installation and training 4,196 541,158 23,367 568,721 59,175 589,386 256,773 905,334 Licensing and royalties - - - - - - - - Design & Prototyping - 1,845,580 - 1,845,580 - 3,726,982 - 3,726,982 STEP - 2,769,309 97,714 2,867,023 - 2,524,981 7,242 2,532,223 Total Revenue 493,348 18,840,601 2,319,758 21,653,707 717,036 23,151,320 4,057,064 27,925,420 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) 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 September 30, 2024, governmental customers comprised $ 6,855,424 91 204,800 3 424,045 6 7,338,205 97 44,853 1 178,524 2 18,840,601 87 493,348 2 2,319,758 11 23,151,320 82 717,036 3 4,057,064 15 2,867,023 2,532,223 13 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 $ 3,017,347 4,047,269 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 $ 1,719,336 2,627,763 2,930,779 2,974,710 295,000 354,000 3,656,944 2,439,199 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 19,168,455 18,349,842 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) 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 and state agencies. As of September 30, 2024, the Company had three customers that accounted for 30 14 11 28 14 As of September 30, 2024, the Company had two suppliers that accounted for 16 11 For the three months ended September 30, 2024, and 2023, the Company had a customer that accounted for 10 16 10 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 September 30 2024 2023 Net Income (Loss) 583,101 1,634,790 Weighted average common stock outstanding 11,175,882 10,934,962 Incremental shares from stock options - 7,547 Weighted average common stock outstanding, diluted 11,175,882 10,942,509 Net Income (Loss) per common share and common equivalent share Basic $ 0.05 $ 0.15 Diluted $ 0.05 $ 0.15 2024 2023 Nine Months Ended September 30 2024 2023 Net Income (Loss) 3,000,002 5,607,804 Weighted average common stock outstanding 10,982,083 10,924,486 Incremental shares from stock options - 4,669 Weighted average common stock outstanding, diluted 10,982,083 10,929,155 Net Income (Loss) per common share and common equivalent share Basic 0.27 0.51 Diluted 0.27 0.51 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited)

Inventory

Inventory	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
Inventory	Note 2. Inventory Inventory consisted of the following as of: Schedule of Inventory September 30, 2024 December 31, 2023 Raw materials, WIP, finished goods and Materials being inspected 14,366,958 12,834,368 Reserve (455,010 ) (429,488 ) Total Inventory 13,911,948 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.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 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 September 30, 2024 December 31, 2023 Land 1,778,987 1,778,987 Building & Building Improvements 11,509,613 9,146,556 Computer equipment 1,291,582 1,233,989 Furniture and office equipment 308,002 295,208 Machinery and equipment 4,366,452 2,865,014 STEP equipment 2,451,916 2,241,291 Leasehold improvements 358,584 358,584 Construction in Progress 3,000 2,456,259 Total property and equipment 22,068,136 20,375,888 Less: Accumulated depreciation and amortization (5,716,703 ) (4,888,876 ) Property and equipment, net 16,351,433 15,487,012 Depreciation expenses, including STEP depreciation, were $ 827,828 682,784 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited)

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 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 September 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 (134,334 ) (127,667 ) Intangible assets, net 560,873 567,540 Amortization expense was $ 6,667 18,752

Leases

Leases	9 Months Ended
	Sep. 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. In addition to base rent, the Company’s lease generally 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%. Significant judgement is required when determining the Company’s incremental borrowing rate. The Company uses the implicit rate when readily determinable. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Effective June 1, 2022, the Company obtained a right-of-use asset in exchange for a new operating lease liability in the amount of $ 840,855 1,721,380 46,523 1,674,857 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) Based on the requirements to move and leave the building in compliance with the company’s lease term, VirTra chose to use the holdover 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 September 30, 2024 are as follows: Schedule of Balance Sheet Classification of Lease Assets and Liabilities Balance Sheet Classification September 30, 2024 December 31, 2023 Assets Operating lease right-of-use assets, December 31, 2023 $ 716,687 $ 1,212,814 Amortization for the nine months ended September 30, 2024 and Year ending 2023 $ ( 238,213 ) $ ( 496,127 ) Total operating lease right-of-use asset, September 30, 2024 $ 478,474 $ 716,687 Liabilities Current Operating lease liability, short-term $ 192,294 $ 317,840 Non-current Operating lease liability, long-term $ 308,109 $ 432,176 Total lease liabilities $ 500,403 $ 750,016 NON-Cancelable operating leases Schedule of Future Minimum Lease Payments 2024 $ 48,350 2025 $ 192,196 2026 $ 196,311 2027 $ 99,381 Total Lease Payments $ 536,238 Less: imputed interest $ ( 35,835 ) Operating Lease Liability $ 500,403 Rent expenses for the nine months ended September 30, 2024, and 2023 were $ 382,162 444,343

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 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 September 30, 2024 December 31, 2023 Salaries and wages payable 333,934 457,565 Employee benefits payable 17,444 54,811 Accrued paid time off (PTO) 337,517 361,418 Profit sharing payable 1,217,407 1,347,622 Total accrued compensation and related costs 1,906,302 2,221,416 Accrued expenses and other current liabilities consisted of the following as of: Schedule of Accrued Expenses and Other Current Liabilities September 30, 2024 December 31, 2023 Manufacturer’s warranties 295,000 354,000 Taxes payable 87,981 $ 3,411,669 Miscellaneous payable 325,971 204,890 Total accrued expenses and other current liabilities 708,952 3,970,559 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited)

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Notes Payable	Note 7. Notes 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 September 30, 2024 December 31, 2023 Short-term liabilities Notes payable, principal 219,896 222,320 Accrued interest to date 10,928 4,035 Notes Payable, short-term 230,824 226,355 Long-term liabilities Notes payable, principal 7,629,800 7,813,021 Notes payable, long term 7,629,800 7,813,021

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Note 8. Related Party Transactions During the nine months ended September 30, 2024, one Board member purchased 5,000 0.0001 10,750 9,400 During the nine months ended September 30, 2024, the Company redeemed 10,000 59,600 During the nine months ended September 30, 2023, one Board member and the Company’s Executive Chairman (then Co-CEO) purchased a total of 12,500 41,902 10,000 21,150

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 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 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) On December 1, 2022, the Company granted a total of 15,000 RSUs to its Chief Financial Officer, which can be awarded based on achievement of performance goals over the next three years. On August 29, 2024 the board of Directors increased the numbers of share eligible for the CFO to receive from 5,000 this year to 10,000 on the CFO’s vesting on the CFO’s anniversary date of December 1, 42,735 RSUs to a new member of the Board of Directors which can be awarded only upon a sale of the Company. 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, 2024, was $ 4,564,459 22,988 9,142 29,630 11,394 6,846,750 118,519 46,367 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 nine months ended September 30, 2024, and 2023, $ 500,000 450,000

Stockholders_ Equity

Stockholders’ Equity	9 Months Ended
	Sep. 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 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 September 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 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) The Company did not have any non-vested stock options outstanding as of September 30, 2024, and December 31, 2023. The weighted average contractual term for options outstanding and exercisable on September 30, 2024, and 2023 was 0 0 34,425 0 14,700 20,150 41,902 2017 Equity Incentive Plan Through September 30, 2024, 224,133 288,889 17,753 288,889 10,543 14,057 Common stock activity During the three months ended September 30, 2024, the Company settled performance-based restricted stock units that had been granted to its CEO by issuing him 72,152 shares ( 46,367 shares withheld for taxes), net of tax withholding liability, valued at $ 484,861 . The Company had achieved net profit for the twelve months ended June 30, 2024 , 6,500,000 . The Company also issued 58,543 shares to its former Executive Chairman, valued at $ 487,663 .

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Note 11. Subsequent Events In October 2024, two directors were issued an aggregate of 8,500

Organization and Significant _2

Organization and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
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 September 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 nine months ended September 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 substantially 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 non-cash 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.
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. VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) Schedule of Disaggregation of Revenue Commercial Government International Total Commercial Government International Total Three Months Ended September 30 2024 2023 Commercial Government International Total Commercial Government International Total Simulators and accessories 165,852 4,045,332 308,718 4,519,902 8,948 2,371,841 237,897 2,618,686 Extended Service-type warranties 23,528 1,307,200 25,060 1,355,788 16,994 1,187,333 15,883 1,220,210 Customized software and content 15,420 107,942 - 123,362 - 451,500 (70,200 ) 381,300 Installation and training - 147,128 11,553 158,681 18,911 185,552 (5,056 ) 199,407 Licensing and royalties - - - - - - - Design & Prototyping - 398,672 - 398,672 - 2,488,219 - 2,488,219 STEP - 849,150 78,714 927,864 - 653,760 - 653,760 Total Revenue 204,800 6,855,424 424,045 7,484,269 44,853 7,338,205 178,524 7,561,582 Commercial Government International Total Commercial Government International Total Nine Months Ended September 30 2024 2023 Commercial Government International Total Commercial Government International Total Simulators and accessories 378,204 9,784,028 2,064,812 12,227,044 571,856 13,247,789 3,745,692 17,565,337 Extended Service-type warranties 95,528 3,510,051 51,365 3,656,944 61,705 2,325,931 51,563 2,439,199 Customized software and content 15,420 390,475 82,500 488,395 24,300 736,251 (4,206 ) 756,345 Installation and training 4,196 541,158 23,367 568,721 59,175 589,386 256,773 905,334 Licensing and royalties - - - - - - - - Design & Prototyping - 1,845,580 - 1,845,580 - 3,726,982 - 3,726,982 STEP - 2,769,309 97,714 2,867,023 - 2,524,981 7,242 2,532,223 Total Revenue 493,348 18,840,601 2,319,758 21,653,707 717,036 23,151,320 4,057,064 27,925,420 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) 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 September 30, 2024, governmental customers comprised $ 6,855,424 91 204,800 3 424,045 6 7,338,205 97 44,853 1 178,524 2 18,840,601 87 493,348 2 2,319,758 11 23,151,320 82 717,036 3 4,057,064 15 2,867,023 2,532,223 13 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 $ 3,017,347 4,047,269
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 $ 1,719,336 2,627,763 2,930,779 2,974,710 295,000 354,000 3,656,944 2,439,199
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 19,168,455 18,349,842 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) 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 and state agencies. As of September 30, 2024, the Company had three customers that accounted for 30 14 11 28 14 As of September 30, 2024, the Company had two suppliers that accounted for 16 11 For the three months ended September 30, 2024, and 2023, the Company had a customer that accounted for 10 16 10
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 September 30 2024 2023 Net Income (Loss) 583,101 1,634,790 Weighted average common stock outstanding 11,175,882 10,934,962 Incremental shares from stock options - 7,547 Weighted average common stock outstanding, diluted 11,175,882 10,942,509 Net Income (Loss) per common share and common equivalent share Basic $ 0.05 $ 0.15 Diluted $ 0.05 $ 0.15 2024 2023 Nine Months Ended September 30 2024 2023 Net Income (Loss) 3,000,002 5,607,804 Weighted average common stock outstanding 10,982,083 10,924,486 Incremental shares from stock options - 4,669 Weighted average common stock outstanding, diluted 10,982,083 10,929,155 Net Income (Loss) per common share and common equivalent share Basic 0.27 0.51 Diluted 0.27 0.51

Organization and Significant _3

Organization and Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Schedule of Disaggregation of Revenue	Schedule of Disaggregation of Revenue Commercial Government International Total Commercial Government International Total Three Months Ended September 30 2024 2023 Commercial Government International Total Commercial Government International Total Simulators and accessories 165,852 4,045,332 308,718 4,519,902 8,948 2,371,841 237,897 2,618,686 Extended Service-type warranties 23,528 1,307,200 25,060 1,355,788 16,994 1,187,333 15,883 1,220,210 Customized software and content 15,420 107,942 - 123,362 - 451,500 (70,200 ) 381,300 Installation and training - 147,128 11,553 158,681 18,911 185,552 (5,056 ) 199,407 Licensing and royalties - - - - - - - Design & Prototyping - 398,672 - 398,672 - 2,488,219 - 2,488,219 STEP - 849,150 78,714 927,864 - 653,760 - 653,760 Total Revenue 204,800 6,855,424 424,045 7,484,269 44,853 7,338,205 178,524 7,561,582 Commercial Government International Total Commercial Government International Total Nine Months Ended September 30 2024 2023 Commercial Government International Total Commercial Government International Total Simulators and accessories 378,204 9,784,028 2,064,812 12,227,044 571,856 13,247,789 3,745,692 17,565,337 Extended Service-type warranties 95,528 3,510,051 51,365 3,656,944 61,705 2,325,931 51,563 2,439,199 Customized software and content 15,420 390,475 82,500 488,395 24,300 736,251 (4,206 ) 756,345 Installation and training 4,196 541,158 23,367 568,721 59,175 589,386 256,773 905,334 Licensing and royalties - - - - - - - - Design & Prototyping - 1,845,580 - 1,845,580 - 3,726,982 - 3,726,982 STEP - 2,769,309 97,714 2,867,023 - 2,524,981 7,242 2,532,223 Total Revenue 493,348 18,840,601 2,319,758 21,653,707 717,036 23,151,320 4,057,064 27,925,420
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 September 30 2024 2023 Net Income (Loss) 583,101 1,634,790 Weighted average common stock outstanding 11,175,882 10,934,962 Incremental shares from stock options - 7,547 Weighted average common stock outstanding, diluted 11,175,882 10,942,509 Net Income (Loss) per common share and common equivalent share Basic $ 0.05 $ 0.15 Diluted $ 0.05 $ 0.15 2024 2023 Nine Months Ended September 30 2024 2023 Net Income (Loss) 3,000,002 5,607,804 Weighted average common stock outstanding 10,982,083 10,924,486 Incremental shares from stock options - 4,669 Weighted average common stock outstanding, diluted 10,982,083 10,929,155 Net Income (Loss) per common share and common equivalent share Basic 0.27 0.51 Diluted 0.27 0.51

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consisted of the following as of: Schedule of Inventory September 30, 2024 December 31, 2023 Raw materials, WIP, finished goods and Materials being inspected 14,366,958 12,834,368 Reserve (455,010 ) (429,488 ) Total Inventory 13,911,948 12,404,880

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 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 September 30, 2024 December 31, 2023 Land 1,778,987 1,778,987 Building & Building Improvements 11,509,613 9,146,556 Computer equipment 1,291,582 1,233,989 Furniture and office equipment 308,002 295,208 Machinery and equipment 4,366,452 2,865,014 STEP equipment 2,451,916 2,241,291 Leasehold improvements 358,584 358,584 Construction in Progress 3,000 2,456,259 Total property and equipment 22,068,136 20,375,888 Less: Accumulated depreciation and amortization (5,716,703 ) (4,888,876 ) Property and equipment, net 16,351,433 15,487,012

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Asset	Intangible asset consisted of the following as of: Schedule of Intangible Asset September 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 (134,334 ) (127,667 ) Intangible assets, net 560,873 567,540

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2024
Leases
Schedule of Balance Sheet Classification of Lease Assets and Liabilities	The balance sheet classification of lease assets and liabilities as of September 30, 2024 are as follows: Schedule of Balance Sheet Classification of Lease Assets and Liabilities Balance Sheet Classification September 30, 2024 December 31, 2023 Assets Operating lease right-of-use assets, December 31, 2023 $ 716,687 $ 1,212,814 Amortization for the nine months ended September 30, 2024 and Year ending 2023 $ ( 238,213 ) $ ( 496,127 ) Total operating lease right-of-use asset, September 30, 2024 $ 478,474 $ 716,687 Liabilities Current Operating lease liability, short-term $ 192,294 $ 317,840 Non-current Operating lease liability, long-term $ 308,109 $ 432,176 Total lease liabilities $ 500,403 $ 750,016
Schedule of Future Minimum Lease Payments	NON-Cancelable operating leases Schedule of Future Minimum Lease Payments 2024 $ 48,350 2025 $ 192,196 2026 $ 196,311 2027 $ 99,381 Total Lease Payments $ 536,238 Less: imputed interest $ ( 35,835 ) Operating Lease Liability $ 500,403

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 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 September 30, 2024 December 31, 2023 Salaries and wages payable 333,934 457,565 Employee benefits payable 17,444 54,811 Accrued paid time off (PTO) 337,517 361,418 Profit sharing payable 1,217,407 1,347,622 Total accrued compensation and related costs 1,906,302 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 September 30, 2024 December 31, 2023 Manufacturer’s warranties 295,000 354,000 Taxes payable 87,981 $ 3,411,669 Miscellaneous payable 325,971 204,890 Total accrued expenses and other current liabilities 708,952 3,970,559

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of Notes Payable	Schedule of Notes Payable September 30, 2024 December 31, 2023 Short-term liabilities Notes payable, principal 219,896 222,320 Accrued interest to date 10,928 4,035 Notes Payable, short-term 230,824 226,355 Long-term liabilities Notes payable, principal 7,629,800 7,813,021 Notes payable, long term 7,629,800 7,813,021

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Schedule of Non-Qualified Stock Options	Schedule of Non-Qualified Stock Options September 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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Simulators and accessories	$ 4,519,902	$ 2,618,686	$ 12,227,044	$ 17,565,337
Extended Service-type warranties	1,355,788	1,220,210	3,656,944	2,439,199
Customized software and content	123,362	381,300	488,395	756,345
Installation and training	158,681	199,407	568,721	905,334
Licensing and royalties
Design & Prototyping	398,672	2,488,219	1,845,580	3,726,982
STEP	927,864	653,760	2,867,023	2,532,223
Total Revenue	7,484,269	7,561,582	21,653,707	27,925,420
Commercial [Member]
Simulators and accessories	165,852	8,948	378,204	571,856
Extended Service-type warranties	23,528	16,994	95,528	61,705
Customized software and content	15,420		15,420	24,300
Installation and training		18,911	4,196	59,175
Licensing and royalties
Design & Prototyping
STEP
Total Revenue	204,800	44,853	493,348	717,036
Geographic Distribution Government [Member]
Simulators and accessories	4,045,332	2,371,841	9,784,028	13,247,789
Extended Service-type warranties	1,307,200	1,187,333	3,510,051	2,325,931
Customized software and content	107,942	451,500	390,475	736,251
Installation and training	147,128	185,552	541,158	589,386
Licensing and royalties
Design & Prototyping	398,672	2,488,219	1,845,580	3,726,982
STEP	849,150	653,760	2,769,309	2,524,981
Total Revenue	6,855,424	7,338,205	18,840,601	23,151,320
Geographic Distribution, Foreign [Member]
Simulators and accessories	308,718	237,897	2,064,812	3,745,692
Extended Service-type warranties	25,060	15,883	51,365	51,563
Customized software and content		(70,200)	82,500	(4,206)
Installation and training	11,553	(5,056)	23,367	256,773
Licensing and royalties
Design & Prototyping
STEP	78,714		97,714	7,242
Total Revenue	$ 424,045	$ 178,524	$ 2,319,758	$ 4,057,064

Schedule of Earnings Per Share

Schedule of Earnings Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Accounting Policies [Abstract]
Net Income (Loss)	$ 583,101	$ 1,634,790	$ 3,000,002	$ 5,607,804
Weighted average common stock outstanding	11,175,882	10,934,962	10,982,083	10,924,486
Incremental shares from stock options		7,547		4,669
Weighted average common stock outstanding, diluted	11,175,882	10,942,509	10,982,083	10,929,155
Net Income (Loss) per common share and common equivalent share
Basic	$ 0.05	$ 0.15	$ 0.27	$ 0.51
Diluted	$ 0.05	$ 0.15	$ 0.27	$ 0.51

Organization and Significant _4

Organization and Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Product Information [Line Items]
Revenue	$ 7,484,269	$ 7,561,582	$ 21,653,707	$ 27,925,420
Customer deposits, current	4,797,825		4,797,825		$ 6,736,175
Revenue recognized			3,656,944	2,439,199
FDIC insured amount	250,000		250,000
Uninsured cash and cash equivalents	19,168,455		19,168,455		18,349,842
Warranty [Member] | One Year or Less [Member]
Product Information [Line Items]
Extended warranties	1,719,336		1,719,336		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	3,017,347		3,017,347		$ 4,047,269
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Government Customers [Member]
Product Information [Line Items]
Revenue	$ 6,855,424	$ 7,338,205	$ 18,840,601	$ 23,151,320
Concentration of credit risk percentage	91%	97%	87%	82%
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Commercial Customers [Member]
Product Information [Line Items]
Revenue	$ 204,800	$ 44,853	$ 493,348	$ 717,036
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	$ 424,045	$ 178,524	$ 2,319,758	$ 4,057,064
Concentration of credit risk percentage	6%	2%	11%	15%
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | STEP Revenue [Member]
Product Information [Line Items]
Revenue			$ 2,867,023	$ 2,532,223
Concentration of credit risk percentage			13%	9%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member]
Product Information [Line Items]
Concentration of credit risk percentage			30%		28%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customer [Member]
Product Information [Line Items]
Concentration of credit risk percentage			14%		14%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customer [Member]
Product Information [Line Items]
Concentration of credit risk percentage			11%
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier One [Member]
Product Information [Line Items]
Concentration of credit risk percentage			16%
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier Two [Member]
Product Information [Line Items]
Concentration of credit risk percentage			11%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer [Member]
Product Information [Line Items]
Concentration of credit risk percentage	10%	10%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member]
Product Information [Line Items]
Concentration of credit risk percentage	16%	16%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Single Customer [Member]
Product Information [Line Items]
Concentration of credit risk percentage			10%

Schedule of Inventory (Details)

Schedule of Inventory (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials, WIP, finished goods and Materials being inspected	$ 14,366,958	$ 12,834,368
Reserve	(455,010)	(429,488)
Total Inventory	$ 13,911,948	$ 12,404,880

Schedule of Property and Equipm

Schedule of Property and Equipment (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 22,068,136	$ 20,375,888
Less: Accumulated depreciation and amortization	(5,716,703)	(4,888,876)
Property and equipment, net	16,351,433	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	11,509,613	9,146,556
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,291,582	1,233,989
Furniture And Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	308,002	295,208
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	2,451,916	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	$ 3,000	$ 2,456,259

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation expenses	$ 827,828	$ 682,784

Schedule of Intangible Asset (D

Schedule of Intangible Asset (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 695,207	$ 695,207
Less accumulated amortization	(134,334)	(127,667)
Intangible assets, net	560,873	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 ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 6,667	$ 18,752

Schedule of Balance Sheet Class

Schedule of Balance Sheet Classification of Lease Assets and Liabilities (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Leases
Operating lease right-of-use assets, December 31, 2023	$ 716,687	$ 1,212,814
Amortization for the nine months ended September 30, 2024 and Year ending 2023	238,213	496,127
Total operating lease right-of-use asset, September 30, 2024	478,474	716,687
Operating lease liability, short-term	192,294	317,840
Operating lease liability, long-term	308,109	432,176
Total lease liabilities	$ 500,403	$ 750,016

Schedule of Future Minimum Leas

Schedule of Future Minimum Lease Payments (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Leases
2024	$ 48,350
2025	192,196
2026	196,311
2027	99,381
Total Lease Payments	536,238
Less: imputed interest	35,835
Operating Lease Liability	$ 500,403	$ 750,016

Leases (Details Narrative)

Leases (Details Narrative)			9 Months Ended
	Jun. 01, 2022 USD ($) ft²	Jan. 01, 2019 USD ($)	Sep. 30, 2024 USD ($) ft²	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Apr. 30, 2019 ft²	Mar. 31, 2019 ft²
Real Estate Properties [Line Items]
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	$ 478,474		$ 716,687	$ 1,212,814
Rent expenses			$ 382,162	$ 444,343
Office and Warehouse Space [Member] | Unaffiliated Third Party [Member]
Real Estate Properties [Line Items]
Rentable area in square feet | ft²			37,729
Office and Industrial Space [Member] | Unaffiliated Third Party [Member]
Real Estate Properties [Line Items]
Rentable area in square feet | ft²	9,350						5,131	4,529

Schedule of Accrued Compensatio

Schedule of Accrued Compensation and Related Costs (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Salaries and wages payable	$ 333,934	$ 457,565
Employee benefits payable	17,444	54,811
Accrued paid time off (PTO)	337,517	361,418
Profit sharing payable	1,217,407	1,347,622
Total accrued compensation and related costs	$ 1,906,302	$ 2,221,416

Schedule of Accrued Expenses an

Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Manufacturer’s warranties	$ 295,000	$ 354,000
Taxes payable	87,981	3,411,669
Miscellaneous payable	325,971	204,890
Total accrued expenses and other current liabilities	$ 708,952	$ 3,970,559

Schedule of Notes Payable (Deta

Schedule of Notes Payable (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Short-Term Debt [Line Items]
Notes Payable, short-term	$ 230,824	$ 226,355
Notes payable, principal	7,629,800	7,813,021
Notes payable, long term	7,629,800	7,813,021
Notes Payable [Member]
Short-Term Debt [Line Items]
Notes payable, principal	219,896	222,320
Accrued interest to date	10,928	4,035
Notes Payable, short-term	$ 230,824	$ 226,355

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)		9 Months Ended
	Aug. 25, 2021	Sep. 30, 2024	Sep. 30, 2023
Short-Term Debt [Line Items]
Payment to acquire assets		$ 1,692,249	$ 512,249
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			9 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Shares par value				$ 0.0001		$ 0.0001
Exercise price of stock option			$ 14,701	$ 20,150	$ 41,903
Shares redeemed				10,000
Shares redeemed, value				$ 59,600
Director [Member] | Common Stock [Member]
Shares purchased award				5,000
Shares par value				$ 0.0001
Exercise price of stock option	$ 9,400	$ 10,750
Board Member and Executive Chairman [Member] | Common Stock [Member]
Shares purchased award					12,500
Exercise price of stock option					$ 41,902
Shares redeemed					10,000
Shares redeemed, value					$ 21,150

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)

1 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

Aug. 29, 2024

Jan. 01, 2023

Dec. 01, 2022

Apr. 11, 2022

Aug. 26, 2021

Jul. 31, 2024

Aug. 31, 2022

Sep. 30, 2024

Sep. 30, 2023

Sep. 30, 2024

Sep. 30, 2023

Jun. 30, 2024

Loss Contingencies [Line Items]

Net income loss

$ 583,101

$ 1,634,790

$ 3,000,002

$ 5,607,804

Operating expenses

$ 4,742,341

$ 3,716,463

13,199,337

11,186,189

Deferred Profit Sharing [Member]

Loss Contingencies [Line Items]

Operating expenses

$ 500,000

$ 450,000

Minimum [Member]

Loss Contingencies [Line Items]

Net income loss

$ 6,500,000

Chief Executive Officer [Member]

Loss Contingencies [Line Items]

Shares awarded

29,630

Shares to pay the tax withholding liability

11,394

Executive Chairman [Member]

Loss Contingencies [Line Items]

Shares awarded

22,988

Shares to pay the tax withholding liability

9,142

Restricted Stock Units (RSUs) [Member]

Loss Contingencies [Line Items]

Net income loss

$ 4,564,459

Restricted Stock Units (RSUs) [Member] | Chief Executive Officer [Member]

Loss Contingencies [Line Items]

Net income loss

$ 6,846,750

Shares awarded

118,519

Shares to pay the tax withholding liability

46,367

Restricted Stock Units (RSUs) [Member] | Chief Financial Officer [Member]

Loss Contingencies [Line Items]

Number of shares granted

15,000

Restricted Stock Units (RSUs) [Member] | Chief Financial Officer [Member] | Minimum [Member]

Loss Contingencies [Line Items]

Number of shares granted

5,000

Restricted Stock Units (RSUs) [Member] | Chief Financial Officer [Member] | Maximum [Member]

Loss Contingencies [Line Items]

Number of shares granted

10,000

Restricted Stock Units (RSUs) [Member] | Board of Directors Chairman [Member]

Loss Contingencies [Line Items]

Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures

42,735

2017 Equity Incentive Plan [Member] | Chief Operating Officer [Member]

Loss Contingencies [Line Items]

Stock of restricted stock units forfeited

168,090

Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures

10,543

2017 Equity Incentive Plan [Member] | Chief Executive Officer [Member]

Loss Contingencies [Line Items]

Stock of restricted stock units forfeited

40,229

2017 Equity Incentive Plan [Member] | Executive Chairman [Member]

Loss Contingencies [Line Items]

Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures

14,057

2017 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | Co-Chief Executive Officer and Chief Operating Officer[Member]

Loss Contingencies [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	9 Months Ended	12 Months Ended
	Sep. 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 period		(15,000)
Weighted Exercise Price, Option outstanding, end of period		$ 4.03
Number of Stock Options, Options outstanding, end of period		15,000
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		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024	Jan. 09, 2019	Oct. 25, 2016
Class of Stock [Line Items]
Weighted average contractual term for options outstanding and exercisable			0 years	0 years
Aggregate intrinsic value of options outstanding and exercisable	$ 0	$ 34,425	$ 0	$ 34,425
Proceeds from exercise options	0	14,700	20,150	41,902
Net income	$ 583,101	$ 1,634,790	$ 3,000,002	$ 5,607,804
Restricted Stock Units (RSUs) [Member]
Class of Stock [Line Items]
Net income					$ 4,564,459
Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member]
Class of Stock [Line Items]
Net income					6,846,750
Chief Executive Officer [Member] | Performance Based Restricted Stock Units [Member]
Class of Stock [Line Items]
Number of restricted shares granted	72,152
Shares withheld for taxes	46,367
Shares withheld for taxes, value	$ 484,861
Former Executive Chairman [Member]
Class of Stock [Line Items]
Number of shares issued			58,543
Stock Issued During Period, Value, New Issues			$ 487,663
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			288,889
2017 Equity Incentive Plan [Member] | Chief Operating Officer [Member]
Class of Stock [Line Items]
Number of shares issued			10,543
Minimum [Member]
Class of Stock [Line Items]
Net income					$ 6,500,000
Common Stock [Member] | Maximum [Member]
Class of Stock [Line Items]
Stock repurchase value authorized						$ 1,000,000	$ 1,000,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative)	1 Months Ended
	Oct. 31, 2024 shares
Subsequent Event [Member]
Subsequent Event [Line Items]
Shares issued for services	8,500