UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to ______________

Commission file number: 001-38420

VIRTRA, INC.

(Exact name of registrant as specified in its charter)

Nevada		93-1207631
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

295 E. Corporate Place, Chandler, AZ		85225
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (480) 968-1488

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.0001 par value		VTSI		Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large, accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large, accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of May 11, 2026, the registrant had 11,306,885 shares of common stock outstanding.

TABLE OF CONTENTS

			PAGE NO.
PART I	FINANCIAL INFORMATION

	Item 1.	Financial Statements (Unaudited)	F-1
		Condensed Balance Sheets as of March 31, 2026, and December 31, 2025	F-1
		Condensed Statements of Operations for the Three Months ended March 31, 2026 and 2025	F-2
		Condensed Statements of Changes in Stockholders’ Equity for the Three Months Ended March 31, 2026 and 2025	F-3
		Condensed Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025	F-4
		Notes to the Unaudited Financial Statements	F-5

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	8

	Item 4.	Controls and Procedures	8

PART II	OTHER INFORMATION

	Item 1.	Legal Proceedings	9

	Item 1A.	Risk Factors	9

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	9

	Item 3.	Defaults Upon Senior Securities	9

	Item 4.	Mine Safety Disclosures	9

	Item 5.	Other Information	9

	Item 6.	Exhibits	10

	SIGNATURES		11

PART I: FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

VIRTRA, INC.

CONDENSED BALANCE SHEETS

(Unaudited)

	March 31, 2026		December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	17,850,178	$	18,594,598
Accounts receivable, net		4,917,675		5,502,087
Inventory, net		14,368,385		13,060,024
Unbilled revenue		322,874		868,216
Prepaid expenses and other current assets		1,437,190		2,622,462
Deferred Contract Costs, short term		374,375		374,375
Total current assets		39,270,677		41,021,762
Long-term assets:
Property and equipment, net		16,006,755		16,268,400
Operating lease right-of-use asset, net		225,379		268,873
Intangible assets, net		2,397,689		2,513,186
Security deposits, long-term		15,980		15,979
Other assets, long-term		424,225		424,226
Deferred tax asset, net		4,415,171		4,135,463
Deferred Contract Costs, long term		395,102		488,695
Total long-term assets		23,880,301		24,114,822
Total assets	$	63,150,978	$	65,136,584

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	971,964	$	784,074
Accrued compensation and related costs		567,909		461,430
Accrued expenses and other current liabilities		1,217,590		1,196,565
Note payable, current		225,981		227,754
Operating lease liability, short-term		197,538		196,311
Deferred revenue, short-term		6,813,186		7,361,738
Total current liabilities		9,994,168		10,227,872
Long-term liabilities:
Deferred revenue, long-term		1,559,691		1,913,393
Note payable, long-term		7,248,704		7,314,085
Operating lease liability, long-term		42,402		89,053
Total long-term liabilities		8,850,797		9,316,531
Total liabilities		18,844,965		19,544,403

Commitments and contingencies (See Note 10)		-

Stockholders’ equity:
Preferred stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding		-		-
Common stock $0.0001 par value; 50,000,000 shares authorized; 11,303,885 shares issued and outstanding as of March 31, 2026 and December 31, 2025		1,130		1,130
Class A common stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding		-		-
Class B common stock $0.0001 par value; 7,500,000 shares authorized; no shares issued or outstanding		-		-
Common stock value		-		-
Additional paid-in capital		33,098,555		33,056,091
Retained Earnings		11,206,328		12,534,960
Total stockholders’ equity		44,306,013		45,592,181
Total liabilities and stockholders’ equity	$	63,150,978	$	65,136,584

See accompanying notes to condensed unaudited financial statements.

F-1

VIRTRA, INC.

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

	2026			2025
	Three Months Ended March 31,
	2026			2025
Revenues:
Net sales	$	3,474,146		$	7,160,247
Total revenue		3,474,146			7,160,247

Cost of sales		1,340,342			1,963,367

Gross profit		2,133,804			5,196,880

Operating expenses:
General and administrative		2,961,172			3,219,950
Research and development		500,673			609,127

Net operating expense		3,461,845			3,829,077

Income (loss) from operations		(1,328,041	)		1,367,803

Other income (expense):
Other income		113,190			72,010
Other (expense)		(59,781	)		(73,753	)

Net other income		53,409			(1,743	)

(Loss) before provision for income taxes		(1,274,632	)		1,366,060

Provision (Benefit) for income taxes		54,000			102,000

Net (loss)	$	(1,328,632	)	$	1,264,060

Net (loss) per common share:
Basic	$	(0.12	)	$	0.11
Diluted	$	(0.12	)	$	0.11

Weighted average shares outstanding:
Basic		11,303,885			11,162,037
Diluted		11,303,885			11,162,037

See accompanying notes to condensed unaudited financial statements.

F-2

VIRTRA, INC.

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

	Shares		Amount		Shares		Amount		Capital		Earnings			Total
									Additional
	Preferred Stock				Common Stock				Paid in		Accumulated
	Shares		Amount		Shares		Amount		Capital		Earnings			Total
Three months ending March 31, 2026

Balance, December 31, 2025		-	$	-		11,303,885	$	1,130	$	33,056,091	$	12,534,960		$	45,592,181

Stock reserved for future services		-		-		-		-		42,464		-			42,464
RSUs issued (stock for services)		-		-		-		-		-		-			-
Net income		-		-		-		-		-		(1,328,632	)		(1,328,632	)

Balance, March 31, 2026		-	$	-		11,303,885	$	1,130	$	33,098,555		11,206,328		$	44,306,013

Three months ending March 31, 2025

Balance, December 31, 2024		-		-		11,255,709	$	1,125	$	32,915,112	$	12,276,514		$	45,192,751
Balance		-		-		11,255,709	$	1,125	$	32,915,112	$	12,276,514		$	45,192,751

Stock reserved for future services		-		-		-		-		29,514		-			29,514
RSUs issued (stock for services)						4,500		1		-		-			1
Net income		-		-		-		-		-		1,264,060			1,264,060
Balance, March 31, 2025		-		-		11,260,209	$	1,126	$	32,944,626	$	13,540,574		$	46,486,326
Balance		-		-		11,260,209	$	1,126	$	32,944,626	$	13,540,574		$	46,486,326

See accompanying notes to condensed unaudited financial statements.

F-3

VIRTRA, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	2026			2025
	Three Months Ended March 31
	2026			2025
Cash flows from operating activities:
Net (loss)	$	(1,328,632	)	$	1,264,060
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization		470,027			316,640
Right of use amortization		43,494			41,864
Employee stock compensation		42,464			29,514
Bad debt expense		(9,408	)		(15,334	)
Loss on disposal of PP&E		3,990			-
Changes in operating assets and liabilities:
Accounts receivable, net		593,819			(884,782	)
Inventory, net		(1,308,361	)		(404,091	)
Deferred taxes		(279,708	)		(516,055	)
Deferred Contract Costs - LT		93,593			-
Unbilled revenue		545,342			461,463
Prepaid expenses and other current assets		1,185,272			(343,571	)
Accounts payable and other accrued expenses		315,395			448,503
Operating lease right of use		(45,424	)		(43,223	)
Deferred revenue		(902,254	)		(289,297	)
Net cash provided by (used in) operating activities		(580,391	)		65,691

Cash flows from investing activities:
Purchase of property and equipment		(96,875	)

SEC Form 10-Q filed by VirTra Inc.