Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 13, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
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, $0.0001 par value | |
Trading Symbol | VTSI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,094,689 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 17,201,178 | $ 13,483,597 |
Accounts receivable, net | 14,134,515 | 3,002,887 |
Inventory, net | 10,775,630 | 9,592,328 |
Unbilled revenue | 2,998,700 | 7,485,990 |
Prepaid expenses and other current assets | 1,310,589 | 531,051 |
Total current assets | 46,420,612 | 34,095,853 |
Long-term assets: | ||
Property and equipment, net | 15,096,353 | 15,267,133 |
Operating lease right-of-use asset, net | 843,042 | 1,212,814 |
Intangible assets, net | 569,762 | 587,777 |
Security deposits, long-term | 35,691 | 35,691 |
Other assets, long-term | 201,670 | 376,461 |
Deferred tax asset, net | 5,361,667 | 2,238,762 |
Total long-term assets | 22,108,185 | 19,718,638 |
Total assets | 68,528,797 | 53,814,491 |
Current liabilities: | ||
Accounts payable | 1,386,038 | 1,251,240 |
Accrued compensation and related costs | 1,381,507 | 1,494,890 |
Accrued expenses and other current liabilities | 5,936,871 | 1,917,922 |
Note payable, current | 207,220 | 232,537 |
Operating lease liability, short-term | 578,517 | 557,683 |
Deferred revenue, short-term | 7,738,550 | 4,302,492 |
Total current liabilities | 17,228,703 | 9,756,764 |
Long-term liabilities: | ||
Deferred revenue, long-term | 3,446,423 | 1,605,969 |
Note payable, long-term | 7,872,784 | 8,050,116 |
Operating lease liability, long-term | 307,086 | 720,023 |
Total long-term liabilities | 11,626,293 | 10,376,108 |
Total liabilities | 28,854,996 | 20,132,872 |
Stockholders’ equity: | ||
Preferred stock $0.0001 par value; 2,500,000 authorized; no shares issued or outstanding | ||
Common stock, value | 1,094 | 1,089 |
Additional paid-in capital | 31,804,768 | 31,420,395 |
Retained earnings | 7,867,939 | 2,260,135 |
Total stockholders’ equity | 39,673,801 | 33,681,619 |
Total liabilities and stockholders’ equity | 68,528,797 | 53,814,491 |
Common Class A [Member] | ||
Stockholders’ equity: | ||
Common stock, value | ||
Common Class B [Member] | ||
Stockholders’ equity: | ||
Common stock, value |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
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 | 10,961,356 | 10,900,759 |
Common stock, shares outstanding | 10,961,356 | 10,900,759 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue: | ||||
Total Revenue | $ 7,561,582 | $ 4,903,397 | $ 27,925,420 | $ 19,654,008 |
Cost of sales | 2,175,508 | 2,387,307 | 9,669,708 | 8,707,096 |
Gross Profit | 5,386,074 | 2,516,090 | 18,255,712 | 10,946,912 |
Operating Expenses: | ||||
General and administrative | 3,229,075 | 2,900,100 | 9,220,751 | 8,281,543 |
Research and Development | 487,388 | 687,890 | 1,965,438 | 1,984,343 |
Net Operating expense | 3,716,463 | 3,587,990 | 11,186,189 | 10,265,886 |
Income from operations | 1,669,611 | (1,071,900) | 7,069,523 | 681,026 |
Other Income (expense): | ||||
Other Income | 233,521 | 112,571 | 625,761 | 223,950 |
Other Expense | (24,026) | (66,235) | (224,330) | (195,408) |
Net other income (expense) | 209,495 | 46,336 | 401,431 | 28,542 |
Income before provision for income taxes | 1,879,106 | (1,025,564) | 7,470,954 | 709,568 |
Provision (Benefit) for income taxes | 244,316 | (222,683) | 1,863,150 | 148,001 |
Net Income | $ 1,634,790 | $ (802,881) | $ 5,607,804 | $ 561,567 |
Net income (loss) per common share: | ||||
Basic | $ 0.15 | $ (0.07) | $ 0.51 | $ 0.05 |
Diluted | $ 0.15 | $ (0.07) | $ 0.51 | $ 0.05 |
Weighted average shares outstanding: | ||||
Basic | 10,934,962 | 10,867,745 | 10,924,486 | 10,850,912 |
Diluted | 10,942,509 | 10,867,745 | 10,929,155 | 10,870,842 |
Net Sales [Member] | ||||
Revenue: | ||||
Total Revenue | $ 7,561,582 | $ 4,903,397 | $ 27,925,420 | $ 19,654,008 |
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 |
Beginning balance, value at Dec. 31, 2021 | $ 1,081 | $ 30,923,391 | $ 304,237 | $ 31,228,709 | ||
Beginning balance, shares at Dec. 31, 2021 | 10,807,130 | |||||
Ending balance, value at Jun. 30, 2022 | $ 1,087 | 31,356,608 | 1,668,685 | 33,026,380 | ||
Ending balance, shares at Jun. 30, 2022 | 10,876,945 | |||||
Beginning balance, value at Dec. 31, 2021 | $ 1,081 | 30,923,391 | 304,237 | 31,228,709 | ||
Beginning balance, shares at Dec. 31, 2021 | 10,807,130 | |||||
Stock options exercised | $ 1 | 33,850 | 33,851 | |||
Stock options exercised, shares | 15,000 | |||||
Stock issued for cash in offering, net | ||||||
Stock issued for cash in offering, net , shares | ||||||
Stock options repurchased | ||||||
Stock options repurchased, shares | ||||||
Stock issued for services | $ 7 | 350,751 | 350,758 | |||
Stock issued for services, shares | 76,129 | |||||
Stock reserved for future services | 93,267 | 93,267 | ||||
Treasury stock | ||||||
Net income | 561,567 | 561,567 | ||||
Treasury stock cancelled | ||||||
Ending balance, value at Sep. 30, 2022 | $ 1,089 | 31,401,259 | 865,804 | 32,268,152 | ||
Ending balance, shares at Sep. 30, 2022 | 10,898,259 | |||||
Beginning balance, value at Dec. 31, 2021 | $ 1,081 | 30,923,391 | 304,237 | 31,228,709 | ||
Beginning balance, shares at Dec. 31, 2021 | 10,807,130 | |||||
Ending balance, value at Dec. 31, 2022 | $ 1,089 | 31,420,395 | 2,260,135 | 33,681,619 | ||
Ending balance, shares at Dec. 31, 2022 | 10,900,759 | |||||
Beginning balance, value at Jun. 30, 2022 | $ 1,087 | 31,356,608 | 1,668,685 | 33,026,380 | ||
Beginning balance, shares at Jun. 30, 2022 | 10,876,945 | |||||
Stock options exercised | $ 1 | 21,125 | 21,126 | |||
Stock options exercised, shares | 10,000 | |||||
Stock issued for cash in offering, net | ||||||
Stock issued for cash in offering, net , shares | ||||||
Stock options repurchased | ||||||
Stock options repurchased, shares | ||||||
Stock issued for services | $ 1 | 756 | 757 | |||
Stock issued for services, shares | 11,314 | |||||
Stock reserved for future services | 22,770 | 22,770 | ||||
Treasury stock | ||||||
Treasury stock cancelled | ||||||
Net income | (802,881) | (802,881) | ||||
Ending balance, value at Sep. 30, 2022 | $ 1,089 | 31,401,259 | 865,804 | 32,268,152 | ||
Ending balance, shares at Sep. 30, 2022 | 10,898,259 | |||||
Beginning balance, value at Jun. 30, 2022 | $ 1,087 | 31,356,608 | 1,668,685 | 33,026,380 | ||
Beginning balance, shares at Jun. 30, 2022 | 10,876,945 | |||||
Ending balance, value at Jun. 30, 2023 | $ 1,092 | 31,704,500 | 6,233,149 | 37,938,741 | ||
Ending balance, shares at Jun. 30, 2023 | 10,926,774 | |||||
Beginning balance, value at Dec. 31, 2022 | $ 1,089 | 31,420,395 | 2,260,135 | 33,681,619 | ||
Beginning balance, shares at Dec. 31, 2022 | 10,900,759 | |||||
Ending balance, value at Jun. 30, 2023 | $ 1,092 | 31,704,500 | 6,233,149 | 37,938,741 | ||
Ending balance, shares at Jun. 30, 2023 | 10,926,774 | |||||
Beginning balance, value at Dec. 31, 2022 | $ 1,089 | 31,420,395 | 2,260,135 | 33,681,619 | ||
Beginning balance, shares at Dec. 31, 2022 | 10,900,759 | |||||
Stock options exercised | $ 3 | 41,900 | 41,903 | |||
Stock options exercised, shares | 12,500 | |||||
Stock issued for cash in offering, net | ||||||
Stock issued for cash in offering, net , shares | ||||||
Stock options repurchased | $ 1 | 74,999 | 75,000 | |||
Stock options repurchased, shares | ||||||
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 | ||||
Ending balance, value at Sep. 30, 2023 | $ 1,094 | 31,804,768 | 7,867,939 | 39,673,801 | ||
Ending balance, shares at Sep. 30, 2023 | 10,961,356 | |||||
Beginning balance, value at Jun. 30, 2023 | $ 1,092 | 31,704,500 | 6,233,149 | 37,938,741 | ||
Beginning balance, shares at Jun. 30, 2023 | 10,926,774 | |||||
Stock options exercised | $ 1 | 14,700 | 14,701 | |||
Stock options exercised, shares | 2,500 | |||||
Stock issued for cash in offering, net | ||||||
Stock issued for cash in offering, net , shares | ||||||
Stock options repurchased | 17,569 | 17,569 | ||||
Stock options repurchased, shares | ||||||
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 | ||||
Ending balance, value at Sep. 30, 2023 | $ 1,094 | $ 31,804,768 | $ 7,867,939 | $ 39,673,801 | ||
Ending balance, shares at Sep. 30, 2023 | 10,961,356 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Cash flows from operating activities: | |||||
Net income (loss) | $ 1,634,790 | $ (802,881) | $ 5,607,804 | $ 561,567 | |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | |||||
Depreciation and amortization | 701,536 | 659,775 | |||
Right of use amortization | 369,772 | 291,879 | $ 412,335 | ||
Stock issued for service | 342,475 | 444,025 | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable, net | (11,131,628) | 1,578,205 | |||
Interest receivable | |||||
Inventory, net | (1,183,302) | (4,755,126) | |||
Deferred taxes | (3,122,905) | 112,377 | |||
Unbilled revenue | 4,487,290 | (158,905) | |||
Prepaid expenses and other current assets | (779,538) | 235,824 | |||
Other assets | 174,791 | (186,727) | |||
Security deposits, long-term | (15,979) | ||||
Accounts payable and other accrued expenses | 4,015,047 | 137,762 | |||
Payments on operating lease liability | (392,103) | (291,039) | |||
Deferred revenue | 5,276,512 | (66,237) | |||
Net cash provided by (used in) operating activities | 4,365,751 | (1,452,599) | |||
Cash flows from investing activities: | |||||
Purchase of intangible assets | (120,016) | ||||
Purchase of property and equipment | (512,249) | (2,324,058) | |||
Net cash (used in) investing activities | (512,249) | (2,444,074) | |||
Cash flows from financing activities: | |||||
Principal payments of debt | (177,824) | (172,589) | |||
Stock issued for options exercised | 41,903 | 33,851 | |||
Net cash (used in) financing activities | (135,921) | (138,738) | |||
Net increase (decrease) in cash and restricted cash | 3,717,581 | (4,035,411) | |||
Cash and restricted cash, beginning of period | 13,483,597 | 19,708,565 | 19,708,565 | ||
Cash and restricted cash, end of period | $ 17,201,178 | $ 15,673,154 | 17,201,178 | 15,673,154 | $ 13,483,597 |
Supplemental disclosure of cash flow information: | |||||
Cash (refunded) paid: | 99,035 | ||||
Income taxes paid (refunded) | 128,507 | ||||
Interest paid | |||||
Supplemental disclosure of non-cash investing and financing activities: | |||||
Addition of new lease and corresponding ROU asset and lease liability | 840,843 | ||||
Conversion of inventory to property and equipment | $ 322,968 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure [Table] | ||||
Net Income (Loss) Attributable to Parent | $ 1,634,790 | $ (802,881) | $ 5,607,804 | $ 561,567 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 shares | |
Insider Trading Arrangements [Line Items] | |
Material Terms of Trading Arrangement | (c) On August 17, 2023 Robert Ferris Executive Chairman adopted 120,000 April 1, 2024 |
Name | Robert Ferris |
Title | Executive Chairman |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | August 17, 2023 |
Termination Date | April 1, 2024 |
Aggregate Available | 120,000 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
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. The Russian-Ukraine conflict is a global concern. The Company does not have any significant direct exposure to Russia or Ukraine through its operations, employee base, investments, or sanctions. We have no basis to evaluate the possible risks of this conflict. 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, 2022 included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC on March 31, 2023. 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, 2023, and the results of our operations and cash flows for the periods presented. We derived the December 31, 2022, 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 nine months ended September 30, 2023, 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. VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) 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. 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 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) 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 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 September 30, 2023 2022 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 8,948 $ 3,025,601 $ 162,641 $ 3,197,190 $ 198,886 $ 2,641,214 $ 369,906 $ 3,210,006 Extended Service-type warranties 16,994 1,187,333 15,883 1,220,210 29,798 650,839 14,368 695,005 Customized software and content 451,500 - 451,500 - 794,857 3,437 798,294 Installation and training 18,911 185,552 - 204,463 8,992 192,380 (5,860 ) 195,512 Licensing and royalties - - - - 4,580 - - 4,580 Design & Prototyping - 2,488,219 - 2,488,219 - - - - Total Revenue $ 44,853 $ 7,338,205 $ 178,524 $ 7,561,582 $ 242,256 $ 4,279,290 $ 381,851 $ 4,903,397 Commercial Government International Total Commercial Government International Total Nine Months Ended September 30, 2023 2023 2022 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 571,856 $ 15,772,770 $ 3,677,678 $ 20,022,304 $ 1,412,539 $ 11,175,641 $ 3,013,844 $ 15,602,024 Extended Service-type warranties 61,705 2,325,931 51,563 2,439,199 91,836 2,129,077 59,675 2,280,588 Customized software and content 24,300 736,251 65,994 826,545 - 796,962 212,437 1,009,399 Installation and training 59,175 589,386 261,829 910,390 56,200 599,780 101,437 757,417 Licensing and royalties - - - - 4,580 - - 4,580 Design & Prototyping - 3,726,982 - 3,726,982 - - - - Total Revenue $ 717,036 $ 23,151,320 $ 4,057,064 $ 27,925,420 $ 1,565,155 $ 14,701,460 $ 3,387,393 $ 19,654,008 For the nine months ended September 30, 2023, governmental customers comprised $ 23,151,320 83 717,036 3 4,057,064 14 14,701,460 75 1,565,155 8 3,387,393 17 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) 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 $ 7,025,496 2,719,108 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 844,186 1,583,384 3,315,291 1,601,472 445,000 358,000 1,383,583 1,364,519 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 16,701,178 12,983,597 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, 2023, the Company had one customer that accounted for 16 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 2023 2022 Three Months Ended September 30, 2023 2022 Net Income (Loss) $ 1,634,790 $ (802,881 ) Weighted average common stock outstanding 10,934,962 10,867,745 Incremental shares from stock options 7,547 - Weighted average common stock outstanding, diluted 10,942,509 10,867,745 Net income per common share and common equivalent share Basic $ 0.15 $ (0.07 ) Diluted $ 0.15 $ (0.07 ) 2023 2022 Nine Months Ended September 30, 2023 2022 Net Income $ 5,607,804 $ 561,567 Weighted average common stock outstanding 10,924,486 10,850,912 Incremental shares from stock options 4,669 19,930 Weighted average common stock outstanding, diluted 10,929,155 10,870,842 Net income per common share and common equivalent share Basic $ 0.51 $ 0.05 Diluted $ 0.51 $ 0.05 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 2. Inventory Inventory consisted of the following as of: Schedule of Inventory September 30, 2023 December 31, 2022 Raw materials and work in process $ 11,157,806 $ 9,894,759 Reserve (382,176 ) (302,431 ) Total Inventory $ 10,775,630 $ 9,592,328 The Company regularly evaluates the useful life of its spare parts inventory and as a result, the Company classified $ 0 294,016 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 December 31, 2022 Land $ 1,778,987 $ 1,778,987 Building & Building Improvements 9,129,363 9,129,364 Computer equipment 1,210,851 1,210,021 Furniture and office equipment 308,002 289,379 Manchinery and equipment 2,828,819 2,788,803 STEP equipment 2,002,083 1,954,430 Leasehold improvements 358,584 347,384 Construction in Progress 2,143,260 1,749,332 Total property and equipment 19,759,949 19,247,700 Less: Accumulated depreciation and amortization (4,663,596 ) (3,980,567 ) Property and equipment, net $ 15,096,353 $ 15,267,133 Depreciation expenses, including STEP depreciation, were $ 682,784 597,775 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 4. Intangible Assets Intangible assets consisted of the following as of: Schedule of Intangible Asset September 30, 2023 December 31, 2022 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 (125,445 ) (107,430 ) Intangible assets, net $ 569,762 $ 587,777 Amortization expense was $ 18,752 61,692 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Note 5. Leases The Company leases approximately 37,729 4,529 5,131 9,350 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) On March 1,2023 the company entered into a sublease for its 7970 South Kyrene location for the last 13 months of the lease agreement. 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 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 Schedule of Balance Sheet Classification of Lease Assets and Liabilities Balance Sheet Classification September 30, 2023 December 31, 2022 Assets Operating lease right-of-use assets, beginning of period 1,212,814 784,306 Additional Property in Orlando - 840,843 Amortization for the period ended (369,772 ) (412,335 ) Total operating lease right-of-use asset $ 843,042 1,212,814 Liabilities Current Operating lease liability, short-term $ 578,517 $ 557,683 Non-current Operating lease liability, long-term 307,086 720,023 Total lease liabilities $ 885,603 $ 1,277,706 Future minimum lease payments as of September 30, 2023, under non-cancelable operating leases are as follows: Schedule of Future Minimum Lease Payments 2023 211,574 2024 317,376 2025 191,478 2026 196,314 2027 99,384 Total Lease Payments 1,016,126 Less: imputed interest (130,523 ) Operating Lease Liability 885,603 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) Rent expenses for the nine months ended September 30, 2023, and 2022 were $ 444,343 647,893 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 December 31, 2022 Salaries and wages payable $ 207,701 $ 502,940 Employee benefits payable 48,747 31,618 Accrued paid time off (PTO) 452,570 590,491 Profit sharing payable 672,489 369,841 Total accrued compensation and related costs $ 1,381,507 $ 1,494,890 Accrued expenses and other current liabilities consist of the following as of: Schedule of Accrued Expenses and Other Current Liabilities September 30, 2023 December 31, 2022 Manufacturer’s warranties $ 445,000 $ 358,000 Taxes payable 5,370,946 1,294,110 Miscellaneous payable 120,925 265,812 Total accrued expenses and other current liabilities $ 5,936,871 $ 1,917,922 |
Note Payable
Note Payable | 9 Months Ended |
Sep. 30, 2023 | |
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 3 119 regular monthly payments 40,978 5,956,538 August 23, 2031 The note payable amounts consist of the following: Schedule of Notes Payable September 30, 2023 December 31, 2022 Short-term liabilities Note payable, principal $ 248,566 $ 227,324 Accrued interest to date (41,345 ) 5,213 Note Payable, short-term $ 207,220 $ 232,537 Long-term liabilities Note payable, principal $ 7,872,784 $ 8,050,116 Note payable, long term $ 7,872,784 $ 8,050,116 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 8. Related Party Transactions During the nine months ended September 30, 2023, one Board member purchased 2,500 0.0001 14,700 During the six months ended June 30, 2023, one Board member and the Company’s Co-CEO each purchased 10,000 0.0001 27,202 10,000 21,150 During the three months ended March 31, 2023, one Board member and the Company’s Co-CEO purchased 7,500 0.0001 2.23 16,726 During the nine months ended September 30, 2022, the Company redeemed 22,500 50,090 15,000 0.0001 33,851 During the six months ended June 30, 2022, the Company redeemed 17,500 47,800 5,000 12,725 During the three months ended March 31, 2022, the Company redeemed 8,750 24,150 2,500 7,975 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
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 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 5,000,000 67,988 267,474 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, 2023, and 2022, $ 450,000 225,000 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 December 31, 2022 Number of Stock Weighted Exercise Number of Stock Weighted Exercise Options Price Options Price Options outstanding, beginning of year 45,000 $ 4.26 112,500 $ 3.51 Granted - - - - Redeemed (10,000 ) 5.04 (27,500 ) 2.44 Exercised (12,500 ) 3.35 (17,500 ) 2.33 Expired / terminated - - (22,500 ) 4.05 Options outstanding, end of period 22,500 $ 3.89 45,000 $ 4.26 Options exercisable, end of period 22,500 $ 3.89 45,000 $ 4.26 The Company did not have any non-vested stock options outstanding as of September 30, 2023, and December 31, 2022. The weighted average contractual term for options outstanding and exercisable on September 30, 2023, and 2022 was 7 34,425 106,332 14,700 16,875 41,902 29,600 2017 Equity Incentive Plan Through September 30, 2023, 224,133 288,889 14,057 10,543 Common stock activity During the three months ended September 30, 2023, one Board member purchased 2,500 5.88 14,700 12,500 41,902 On September 1, 2023, the Company settled performance-based restricted stock units that had been granted to its Chairman of the board and CEO by issuing them an aggregate of 52,618 17,566 342,017 2,500,000 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11. Subsequent Events In October 2023, our CEO was issued 133,333 |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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. In September 2001, Ferris Productions, Inc. merged with GameCom, Inc. to ultimately become VirTra, Inc., a Nevada corporation. The Russian-Ukraine conflict is a global concern. The Company does not have any significant direct exposure to Russia or Ukraine through its operations, employee base, investments, or sanctions. We have no basis to evaluate the possible risks of this conflict. |
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, 2022 included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC on March 31, 2023. 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, 2023, and the results of our operations and cash flows for the periods presented. We derived the December 31, 2022, 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 nine months ended September 30, 2023, 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. VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) 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. 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 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) 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 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 September 30, 2023 2022 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 8,948 $ 3,025,601 $ 162,641 $ 3,197,190 $ 198,886 $ 2,641,214 $ 369,906 $ 3,210,006 Extended Service-type warranties 16,994 1,187,333 15,883 1,220,210 29,798 650,839 14,368 695,005 Customized software and content 451,500 - 451,500 - 794,857 3,437 798,294 Installation and training 18,911 185,552 - 204,463 8,992 192,380 (5,860 ) 195,512 Licensing and royalties - - - - 4,580 - - 4,580 Design & Prototyping - 2,488,219 - 2,488,219 - - - - Total Revenue $ 44,853 $ 7,338,205 $ 178,524 $ 7,561,582 $ 242,256 $ 4,279,290 $ 381,851 $ 4,903,397 Commercial Government International Total Commercial Government International Total Nine Months Ended September 30, 2023 2023 2022 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 571,856 $ 15,772,770 $ 3,677,678 $ 20,022,304 $ 1,412,539 $ 11,175,641 $ 3,013,844 $ 15,602,024 Extended Service-type warranties 61,705 2,325,931 51,563 2,439,199 91,836 2,129,077 59,675 2,280,588 Customized software and content 24,300 736,251 65,994 826,545 - 796,962 212,437 1,009,399 Installation and training 59,175 589,386 261,829 910,390 56,200 599,780 101,437 757,417 Licensing and royalties - - - - 4,580 - - 4,580 Design & Prototyping - 3,726,982 - 3,726,982 - - - - Total Revenue $ 717,036 $ 23,151,320 $ 4,057,064 $ 27,925,420 $ 1,565,155 $ 14,701,460 $ 3,387,393 $ 19,654,008 For the nine months ended September 30, 2023, governmental customers comprised $ 23,151,320 83 717,036 3 4,057,064 14 14,701,460 75 1,565,155 8 3,387,393 17 VIRTRA, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) |
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 $ 7,025,496 2,719,108 |
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 844,186 1,583,384 3,315,291 1,601,472 445,000 358,000 1,383,583 1,364,519 |
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 16,701,178 12,983,597 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, 2023, the Company had one customer that accounted for 16 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 2023 2022 Three Months Ended September 30, 2023 2022 Net Income (Loss) $ 1,634,790 $ (802,881 ) Weighted average common stock outstanding 10,934,962 10,867,745 Incremental shares from stock options 7,547 - Weighted average common stock outstanding, diluted 10,942,509 10,867,745 Net income per common share and common equivalent share Basic $ 0.15 $ (0.07 ) Diluted $ 0.15 $ (0.07 ) 2023 2022 Nine Months Ended September 30, 2023 2022 Net Income $ 5,607,804 $ 561,567 Weighted average common stock outstanding 10,924,486 10,850,912 Incremental shares from stock options 4,669 19,930 Weighted average common stock outstanding, diluted 10,929,155 10,870,842 Net income per common share and common equivalent share Basic $ 0.51 $ 0.05 Diluted $ 0.51 $ 0.05 |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 2022 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 8,948 $ 3,025,601 $ 162,641 $ 3,197,190 $ 198,886 $ 2,641,214 $ 369,906 $ 3,210,006 Extended Service-type warranties 16,994 1,187,333 15,883 1,220,210 29,798 650,839 14,368 695,005 Customized software and content 451,500 - 451,500 - 794,857 3,437 798,294 Installation and training 18,911 185,552 - 204,463 8,992 192,380 (5,860 ) 195,512 Licensing and royalties - - - - 4,580 - - 4,580 Design & Prototyping - 2,488,219 - 2,488,219 - - - - Total Revenue $ 44,853 $ 7,338,205 $ 178,524 $ 7,561,582 $ 242,256 $ 4,279,290 $ 381,851 $ 4,903,397 Commercial Government International Total Commercial Government International Total Nine Months Ended September 30, 2023 2023 2022 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 571,856 $ 15,772,770 $ 3,677,678 $ 20,022,304 $ 1,412,539 $ 11,175,641 $ 3,013,844 $ 15,602,024 Extended Service-type warranties 61,705 2,325,931 51,563 2,439,199 91,836 2,129,077 59,675 2,280,588 Customized software and content 24,300 736,251 65,994 826,545 - 796,962 212,437 1,009,399 Installation and training 59,175 589,386 261,829 910,390 56,200 599,780 101,437 757,417 Licensing and royalties - - - - 4,580 - - 4,580 Design & Prototyping - 3,726,982 - 3,726,982 - - - - Total Revenue $ 717,036 $ 23,151,320 $ 4,057,064 $ 27,925,420 $ 1,565,155 $ 14,701,460 $ 3,387,393 $ 19,654,008 |
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 2023 2022 Three Months Ended September 30, 2023 2022 Net Income (Loss) $ 1,634,790 $ (802,881 ) Weighted average common stock outstanding 10,934,962 10,867,745 Incremental shares from stock options 7,547 - Weighted average common stock outstanding, diluted 10,942,509 10,867,745 Net income per common share and common equivalent share Basic $ 0.15 $ (0.07 ) Diluted $ 0.15 $ (0.07 ) 2023 2022 Nine Months Ended September 30, 2023 2022 Net Income $ 5,607,804 $ 561,567 Weighted average common stock outstanding 10,924,486 10,850,912 Incremental shares from stock options 4,669 19,930 Weighted average common stock outstanding, diluted 10,929,155 10,870,842 Net income per common share and common equivalent share Basic $ 0.51 $ 0.05 Diluted $ 0.51 $ 0.05 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of: Schedule of Inventory September 30, 2023 December 31, 2022 Raw materials and work in process $ 11,157,806 $ 9,894,759 Reserve (382,176 ) (302,431 ) Total Inventory $ 10,775,630 $ 9,592,328 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 December 31, 2022 Land $ 1,778,987 $ 1,778,987 Building & Building Improvements 9,129,363 9,129,364 Computer equipment 1,210,851 1,210,021 Furniture and office equipment 308,002 289,379 Manchinery and equipment 2,828,819 2,788,803 STEP equipment 2,002,083 1,954,430 Leasehold improvements 358,584 347,384 Construction in Progress 2,143,260 1,749,332 Total property and equipment 19,759,949 19,247,700 Less: Accumulated depreciation and amortization (4,663,596 ) (3,980,567 ) Property and equipment, net $ 15,096,353 $ 15,267,133 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Asset | Intangible assets consisted of the following as of: Schedule of Intangible Asset September 30, 2023 December 31, 2022 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 (125,445 ) (107,430 ) Intangible assets, net $ 569,762 $ 587,777 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Balance Sheet Classification of Lease Assets and Liabilities | Schedule of Balance Sheet Classification of Lease Assets and Liabilities Balance Sheet Classification September 30, 2023 December 31, 2022 Assets Operating lease right-of-use assets, beginning of period 1,212,814 784,306 Additional Property in Orlando - 840,843 Amortization for the period ended (369,772 ) (412,335 ) Total operating lease right-of-use asset $ 843,042 1,212,814 Liabilities Current Operating lease liability, short-term $ 578,517 $ 557,683 Non-current Operating lease liability, long-term 307,086 720,023 Total lease liabilities $ 885,603 $ 1,277,706 |
Schedule of Future Minimum Lease Payments | Future minimum lease payments as of September 30, 2023, under non-cancelable operating leases are as follows: Schedule of Future Minimum Lease Payments 2023 211,574 2024 317,376 2025 191,478 2026 196,314 2027 99,384 Total Lease Payments 1,016,126 Less: imputed interest (130,523 ) Operating Lease Liability 885,603 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 December 31, 2022 Salaries and wages payable $ 207,701 $ 502,940 Employee benefits payable 48,747 31,618 Accrued paid time off (PTO) 452,570 590,491 Profit sharing payable 672,489 369,841 Total accrued compensation and related costs $ 1,381,507 $ 1,494,890 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following as of: Schedule of Accrued Expenses and Other Current Liabilities September 30, 2023 December 31, 2022 Manufacturer’s warranties $ 445,000 $ 358,000 Taxes payable 5,370,946 1,294,110 Miscellaneous payable 120,925 265,812 Total accrued expenses and other current liabilities $ 5,936,871 $ 1,917,922 |
Note Payable (Tables)
Note Payable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | The note payable amounts consist of the following: Schedule of Notes Payable September 30, 2023 December 31, 2022 Short-term liabilities Note payable, principal $ 248,566 $ 227,324 Accrued interest to date (41,345 ) 5,213 Note Payable, short-term $ 207,220 $ 232,537 Long-term liabilities Note payable, principal $ 7,872,784 $ 8,050,116 Note payable, long term $ 7,872,784 $ 8,050,116 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Non-qualified Stock Options | Schedule of Non-qualified Stock Options September 30, 2023 December 31, 2022 Number of Stock Weighted Exercise Number of Stock Weighted Exercise Options Price Options Price Options outstanding, beginning of year 45,000 $ 4.26 112,500 $ 3.51 Granted - - - - Redeemed (10,000 ) 5.04 (27,500 ) 2.44 Exercised (12,500 ) 3.35 (17,500 ) 2.33 Expired / terminated - - (22,500 ) 4.05 Options outstanding, end of period 22,500 $ 3.89 45,000 $ 4.26 Options exercisable, end of period 22,500 $ 3.89 45,000 $ 4.26 |
Schedule of Disaggregation of R
Schedule of Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Simulators and accessories | $ 3,197,190 | $ 3,210,006 | $ 20,022,304 | $ 15,602,024 |
Extended Service-type warranties | 1,220,210 | 695,005 | 2,439,199 | 2,280,588 |
Customized software and content | 451,500 | 798,294 | 826,545 | 1,009,399 |
Installation and training | 204,463 | 195,512 | 910,390 | 757,417 |
Licensing and royalties | 4,580 | 4,580 | ||
Design & Prototyping | 2,488,219 | 3,726,982 | ||
Total Revenue | 7,561,582 | 4,903,397 | 27,925,420 | 19,654,008 |
Commercial Customers [Member] | ||||
Simulators and accessories | 8,948 | 198,886 | 571,856 | 1,412,539 |
Extended Service-type warranties | 16,994 | 29,798 | 61,705 | 91,836 |
Customized software and content | 24,300 | |||
Installation and training | 18,911 | 8,992 | 59,175 | 56,200 |
Licensing and royalties | 4,580 | 4,580 | ||
Design & Prototyping | ||||
Total Revenue | 44,853 | 242,256 | 717,036 | 1,565,155 |
Government Customers [Member] | ||||
Simulators and accessories | 3,025,601 | 2,641,214 | 15,772,770 | 11,175,641 |
Extended Service-type warranties | 1,187,333 | 650,839 | 2,325,931 | 2,129,077 |
Customized software and content | 451,500 | 794,857 | 736,251 | 796,962 |
Installation and training | 185,552 | 192,380 | 589,386 | 599,780 |
Licensing and royalties | ||||
Design & Prototyping | 2,488,219 | 3,726,982 | ||
Total Revenue | 7,338,205 | 4,279,290 | 23,151,320 | 14,701,460 |
International Customers [Member] | ||||
Simulators and accessories | 162,641 | 369,906 | 3,677,678 | 3,013,844 |
Extended Service-type warranties | 15,883 | 14,368 | 51,563 | 59,675 |
Customized software and content | 3,437 | 65,994 | 212,437 | |
Installation and training | (5,860) | 261,829 | 101,437 | |
Licensing and royalties | ||||
Design & Prototyping | ||||
Total Revenue | $ 178,524 | $ 381,851 | $ 4,057,064 | $ 3,387,393 |
Schedule of Earnings Per Share
Schedule of Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Net income | $ 1,634,790 | $ (802,881) | $ 5,607,804 | $ 561,567 |
Weighted average common stock outstanding | 10,934,962 | 10,867,745 | 10,924,486 | 10,850,912 |
Incremental shares from stock options | 7,547 | 4,669 | 19,930 | |
Weighted average common stock outstanding, diluted | 10,942,509 | 10,867,745 | 10,929,155 | 10,870,842 |
Basic | $ 0.15 | $ (0.07) | $ 0.51 | $ 0.05 |
Diluted | $ 0.15 | $ (0.07) | $ 0.51 | $ 0.05 |
Organization and Significant _4
Organization and Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Product Information [Line Items] | |||||
Revenue | $ 7,561,582 | $ 4,903,397 | $ 27,925,420 | $ 19,654,008 | |
Customer deposits, current | 7,738,550 | $ 7,738,550 | $ 4,302,492 | ||
Warranty description | 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 | ||||
Revenue recognized | $ 1,383,583 | 1,364,519 | |||
FDIC insured amount | 250,000 | 250,000 | |||
Uninsured cash and cash equivalents | 16,701,178 | 16,701,178 | 12,983,597 | ||
Warranty [Member] | One Year or Less [Member] | |||||
Product Information [Line Items] | |||||
Extended warranties | 844,186 | 844,186 | 1,583,384 | ||
Warranty [Member] | Longer Than One Year [Member] | |||||
Product Information [Line Items] | |||||
Extended warranties | 3,315,291 | 3,315,291 | 1,601,472 | ||
Warranty [Member] | One Year [Member] | |||||
Product Information [Line Items] | |||||
Extended warranties | 445,000 | 445,000 | 358,000 | ||
Deferred Revenue [Member] | |||||
Product Information [Line Items] | |||||
Customer deposits, current | $ 7,025,496 | 7,025,496 | $ 2,719,108 | ||
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Government Customers [Member] | |||||
Product Information [Line Items] | |||||
Revenue | $ 23,151,320 | $ 14,701,460 | |||
Concentration of credit risk percentage | 83% | 75% | |||
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Commercial Customers [Member] | |||||
Product Information [Line Items] | |||||
Revenue | $ 717,036 | $ 1,565,155 | |||
Concentration of credit risk percentage | 3% | 8% | |||
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | International Customers [Member] | |||||
Product Information [Line Items] | |||||
Revenue | $ 4,057,064 | $ 3,387,393 | |||
Concentration of credit risk percentage | 14% | 17% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk percentage | 16% |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 11,157,806 | $ 9,894,759 |
Reserve | (382,176) | (302,431) |
Total Inventory | $ 10,775,630 | $ 9,592,328 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Other Noncurrent Assets [Member] | ||
Spare parts | $ 0 | $ 294,016 |
Schedule of Property and Equipm
Schedule of Property and Equipment (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 19,759,949 | $ 19,247,700 |
Less: Accumulated depreciation and amortization | (4,663,596) | (3,980,567) |
Property and equipment, net | 15,096,353 | 15,267,133 |
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 | 9,129,363 | 9,129,364 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,210,851 | 1,210,021 |
Furniture And Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 308,002 | 289,379 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,828,819 | 2,788,803 |
STEP Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,002,083 | 1,954,430 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 358,584 | 347,384 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 2,143,260 | $ 1,749,332 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 682,784 | $ 597,775 |
Schedule of Intangible Asset (D
Schedule of Intangible Asset (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 695,207 | $ 695,207 |
Less accumulated amortization | (125,445) | (107,430) |
Intangible assets, net | 569,762 | 587,777 |
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, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 18,752 | $ 61,692 |
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, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Leases [Abstract] | |||
Operating lease right-of-use assets, beginning of period | $ 1,212,814 | $ 784,306 | $ 784,306 |
Additional Property in Orlando | 840,843 | ||
Amortization for the period ended | (369,772) | $ (291,879) | (412,335) |
Total operating lease right-of-use asset | 843,042 | 1,212,814 | |
Operating lease liability, short-term | 578,517 | 557,683 | |
Operating lease liability, long-term | 307,086 | 720,023 | |
Total lease liabilities | $ 885,603 | $ 1,277,706 |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 | $ 211,574 | |
2024 | 317,376 | |
2025 | 191,478 | |
2026 | 196,314 | |
2027 | 99,384 | |
Total Lease Payments | 1,016,126 | |
Less: imputed interest | (130,523) | |
Operating Lease Liability | $ 885,603 | $ 1,277,706 |
Leases (Details Narrative)
Leases (Details Narrative) | 9 Months Ended | |||||||
Jun. 01, 2022 USD ($) ft² | Jan. 01, 2019 USD ($) | Sep. 30, 2023 USD ($) ft² | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Apr. 30, 2019 ft² | Mar. 31, 2019 ft² | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Incremental borrowing rate | 4.50% | |||||||
Right of use asset obtained in exchange for operating lease liability | $ | $ 840,855 | $ 1,721,380 | ||||||
Deferred rent derecognized | $ | 46,523 | |||||||
Operating lease right of use asset | $ | $ 1,674,857 | $ 843,042 | $ 1,212,814 | $ 784,306 | ||||
Rent expenses | $ | $ 444,343 | $ 647,893 | ||||||
Unaffiliated Third Party [Member] | ||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Rentable square feet | ft² | 9,350 | |||||||
Office and Warehouse Space [Member] | Unaffiliated Third Party [Member] | ||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Rentable square feet | ft² | 37,729 | |||||||
Office and Industrial Space [Member] | Unaffiliated Third Party [Member] | ||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Rentable square feet | ft² | 4,529 | |||||||
Office and Industrial Space [Member] | Unaffiliated Third Party [Member] | Lease Amendment [Member] | ||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Rentable square feet | ft² | 5,131 |
Schedule of Accrued Compensatio
Schedule of Accrued Compensation and Related Costs (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Salaries and wages payable | $ 207,701 | $ 502,940 |
Employee benefits payable | 48,747 | 31,618 |
Accrued paid time off (PTO) | 452,570 | 590,491 |
Profit sharing payable | 672,489 | 369,841 |
Total accrued compensation and related costs | $ 1,381,507 | $ 1,494,890 |
Schedule of Accrued Expenses an
Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Manufacturer’s warranties | $ 445,000 | $ 358,000 |
Taxes payable | 5,370,946 | 1,294,110 |
Miscellaneous payable | 120,925 | 265,812 |
Total accrued expenses and other current liabilities | $ 5,936,871 | $ 1,917,922 |
Schedule of Notes Payable (Deta
Schedule of Notes Payable (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Short-term liabilities | ||
Note Payable, short-term | $ 207,220 | $ 232,537 |
Long-term liabilities | ||
Note payable, long term | 7,872,784 | 8,050,116 |
Long Term Notes Payable [Member] | ||
Short-term liabilities | ||
Note payable, principal | 7,872,784 | 8,050,116 |
Long-term liabilities | ||
Note payable, long term | 7,872,784 | 8,050,116 |
Short Term Notes Payable [Member] | ||
Short-term liabilities | ||
Note payable, principal | 248,566 | 227,324 |
Accrued interest to date | (41,345) | 5,213 |
Note Payable, short-term | $ 207,220 | $ 232,537 |
Note Payable (Details Narrative
Note Payable (Details Narrative) - USD ($) | 9 Months Ended | ||
Aug. 25, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | |
Short-Term Debt [Line Items] | |||
Payment to acquire real property | $ 512,249 | $ 2,324,058 | |
Arizona Bank & Trust [Member] | |||
Short-Term Debt [Line Items] | |||
Proceeds from mortgage loan | $ 8,600,000 | ||
Debt instrument interest rate | 3% | ||
Frequency of periodic payment | 119 regular monthly payments | ||
Maturity date | Aug. 23, 2031 | ||
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 | ||
Property [Member] | |||
Short-Term Debt [Line Items] | |||
Payment to acquire real property | $ 10,800,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Shares par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Shares exercised | $ 14,701 | $ 21,126 | $ 41,903 | $ 33,851 | |||||
Common Stock [Member] | |||||||||
Shares issued | |||||||||
Shares exercised | $ 1 | $ 1 | $ 3 | $ 1 | |||||
Director [Member] | Common Stock [Member] | |||||||||
Shares issued | 2,500 | ||||||||
Shares par value | $ 0.0001 | $ 0.0001 | |||||||
Stock options exercise price | 14,700 | ||||||||
Chief Executive Officer [Member] | |||||||||
Shares redeemed | 8,750 | 17,500 | 22,500 | ||||||
Compensation expenses | $ 24,150 | $ 47,800 | $ 50,090 | ||||||
Chief Executive Officer [Member] | Common Stock [Member] | |||||||||
Shares issued | 7,500 | 10,000 | |||||||
Shares par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Shares exercised | $ 16,726 | $ 27,202 | |||||||
Shares redeemed | 10,000 | ||||||||
Compensation expense | $ 21,150 | ||||||||
Exercise price | $ 2.23 | ||||||||
Chief Operating Officer [Member] | |||||||||
Shares issued | 2,500 | 5,000 | 15,000 | ||||||
Shares exercised | $ 7,975 | $ 12,725 | $ 33,851 | ||||||
Chief Operating Officer [Member] | Common Stock [Member] | |||||||||
Shares par value | $ 0.0001 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Dec. 01, 2022 | Apr. 11, 2022 | Aug. 26, 2021 | Aug. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Net income | $ 1,634,790 | $ (802,881) | $ 5,607,804 | $ 561,567 | |||||||
Shares awarded | 22,988 | ||||||||||
Shares to pay the tax withholding liability | 9,142 | ||||||||||
Common stock issued | 10,961,356 | 10,961,356 | 10,900,759 | ||||||||
Operating expenses | $ 3,716,463 | $ 3,587,990 | $ 11,186,189 | 10,265,886 | |||||||
Deferred Profit Sharing [Member] | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Operating expenses | 450,000 | $ 225,000 | |||||||||
Co-Chief Executive Officer [Member] | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Shares to pay the tax withholding liability | 11,394 | ||||||||||
Common stock issued | 29,630 | ||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Share based compensation | $ 67,988 | $ 267,474 | |||||||||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Net income | $ 4,564,459 | ||||||||||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche One [Member] | Forecast [Member] | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Net income | $ 5,000,000 | ||||||||||
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] | New Member of Board of Directors [Member] | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Number of shares granted | 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 | ||||||||||
2017 Equity Incentive Plan [Member] | Co-Chief Executive Officer [Member] | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Number of shares granted | 224,133 | ||||||||||
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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of Stock Options, outstanding, beginning of year | 45,000 | 112,500 |
Weighted Exercise Price, Option outstanding, beginning of year | $ 4.26 | $ 3.51 |
Number of Stock Options, Granted | ||
Weighted Exercise Price, Granted | ||
Number of Stock Options, Redeemed | (10,000) | (27,500) |
Weighted Exercise Price, Redeemed | $ 5.04 | $ 2.44 |
Number of Stock Options, Exercised | (12,500) | (17,500) |
Weighted Exercise Price, Exercised | $ 3.35 | $ 2.33 |
Number of Stock Options, Expired / terminated | (22,500) | |
Weighted Exercise Price, Expired / terminated | $ 4.05 | |
Number of Stock Options outstanding, end of period | 22,500 | 45,000 |
Weighted Exercise Price, Option outstanding end of period | $ 3.89 | $ 4.26 |
Number of Stock Options, exercisable, end of period | 22,500 | 45,000 |
Weighted Exercise Price, Options exercisable, end of period | $ 3.89 | $ 4.26 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 01, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Jun. 30, 2022 | Jan. 09, 2019 | Oct. 25, 2016 | |
Class of Stock [Line Items] | |||||||||
Number of shares issued,value | $ 14,701 | $ 21,126 | $ 41,903 | $ 33,851 | |||||
Net income | $ 1,634,790 | $ (802,881) | $ 5,607,804 | $ 561,567 | |||||
Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued | |||||||||
Number of shares issued,value | $ 1 | $ 1 | $ 3 | $ 1 | |||||
Net income | |||||||||
Board Member [Member] | Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued | 2,500 | ||||||||
Stock options exercise, price | $ 5.88 | ||||||||
Number of shares issued,value | $ 14,700 | ||||||||
Co CEO [Member] | Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued | 12,500 | ||||||||
Number of shares issued,value | $ 41,902 | ||||||||
Chairman of Board and Chief Executive Officer [Member] | Performance Based Restricted Stock Units [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Restricted shares issued, shares | 52,618 | ||||||||
Stock issued for services taxes withheld, shares | 17,566 | ||||||||
Fair value of stock issued for services taxes withheld | $ 342,017 | ||||||||
2017 Equity Incentive Plan [Member] | Co-Chief Executive Officer [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares granted | 224,133 | ||||||||
Restricted shares issued, shares | 14,057 | ||||||||
2017 Equity Incentive Plan [Member] | Former Chief Operating Officer [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares granted | 288,889 | ||||||||
Restricted shares issued, shares | 10,543 | ||||||||
Non Qualified Stock Option [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Options exercisable weighted average contractual term | 7 years | 7 years | |||||||
Options outstanding weighted average contractual term | 7 years | 7 years | |||||||
Options exercisable, Intrinsic value | 34,425 | $ 34,425 | $ 106,332 | ||||||
Options outstanding, Intriinsic value | 34,425 | 34,425 | 106,332 | ||||||
Proceeds from stock options exercised | $ 14,700 | $ 16,875 | $ 41,902 | $ 29,600 | |||||
Minimum [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Net income | $ 2,500,000 | ||||||||
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, 2023 shares | |
Chief Executive Officer [Member] | Subsequent Event [Member] | Performance Based Restricted Stock Units [Member] | |
Subsequent Event [Line Items] | |
Restricted shares issued, shares | 133,333 |