Good morning, everyone. Our next presenting company is VirTra, which is traded on the NASDAQ under the ticker symbol VTSI. If you didn't get the chance to see VirTra's demo yesterday, the company provides powerful training solutions for law enforcement agencies, the military, and has recently expanded into other applications. Here to tell you more about the company is VirTra CEO, John Givens.
Thanks, Greg. I appreciate it. First question, raise your hands. Who got to experience the simulator, whether it was a headset or the other one? Okay, if you didn't, I wish you would have, 'cause a lot of this would have made a lot more sense, and it would have been more important to you. So right now, there's multiple crises going on in the United States and around the world. One of the things that we do is we supply simulation for both law enforcement, military, and security forces of a lot of different adjacent markets. As you look at the screen right there, that's called a V-300. And so what we do is we manufacture, we are basically a Hollywood studio, and we put together software, a software developer. So we put all this together to make this system.
What you see up here is just a small item of what you'll see that the company does as a whole. This system is, we've recorded this scenario. We have an officer inside, he's reacting, and based on his reactions through verbal or non-verbal cues, he has to respond to that particular situation in a de-escalation way or in a use of force and the proper way to do that. Forward-looking statement. About VirTra. We provide training simulators for law enforcement and broader defense industries. VirTra has typically been in the law enforcement environment. It has a TAM of $650 million, and as we move into the military market, that should move into the billions. The technology is there. We're taking the technology, and we're adapting it for military training.
It's similar in some ways, but there's a difference in the way they train and in the mission. So we have to make sure that we make those changes so that we can get products to the market and training and certified training much quicker as the missions continue to change. Safe and cost-effective. We always talk about, I wanna put an officer or military or someone in the security, I wanna put them in harm's way without putting them in harm's way. If that makes sense. It's a bit oxymoronic. So I wanna put them in a situation, elevate their heart rate, make them feel the scenario and the situation that they're in, and then react to it. Then, I want to evaluate them. That's really the basis of it in training.
And there's certifying agencies across the country, and we're one of the few, and we have the most certified training courses to train them at their home station. Our mission, teach those first responders how to de-escalate in real-world situation and confrontation, or the use of de-escalation, or a combination of both. We don't want the first time that they run up on somebody that is autistic, and they're cleaning rocks off of a driveway because it messed up their perfect line of sight. As an officer approaches, that autistic individual may respond aggressively in what they're used to, but it's not. You handle an autistic person much differently. So that's the de-escalation points and the education and all the psychology. There's a, there's an institution out there called Force Science .
They're evolving all of the human factors in dealing with individuals in these situations, and we're taking that science, and we're putting it inside of the system, and then how do you respond appropriately to police and civilian situations? Total revenue is $31 million. We're in 40 countries. I think that's 42 countries now. Our backlog is a little bit lower than that. This is as of June thirtieth, and our customer retention is probably 96% or 97%. This year, we had more of our STEP contracts, which I'll explain later, as a subscription model, more of them are renewing than they have in the past. 68% of Americans support additional training. They want someone to know, how do I de-escalate, how do I use of force? These simulators do that and actually certify them as well. Here's the current methods and why they're insufficient.
Classrooms and academia, you can read, and if you've gone to college, and if you sit in these seminars, you lose everybody about fifteen minutes into the PowerPoint presentation. That's why I'm speaking incredibly fast. I want you to listen to what I'm saying for the next nine minutes. So, Simunition, shooting, blank rounds. We've heard of situations where blank rounds were substituted or got mixed in with live rounds, and we had deaths in simulation and training. Plus, they're very, very expensive, and shooting ranges in live fire. EPA and just the population growth through noise abatement and those sorts of things has limited the amount of live ranges that you can go to. What's needed? Effective training with reviewable and repeatable scenarios. How do I baseline them? How do I teach them safely in introduce stress into them?
How do I make those decisions? I wanna teach somebody where the decision point was, where they should have made that decision. You've gathered all this data. You should have made a decision there, but you made your decision over here, which cost a life, either yours or someone else, or made the situation even more stressful and more toxic and more lethal. Product review quick. V-300 is a 300-degree system, five screens, and I'm just gonna throw basic numbers so you can put it out there. A V-300 is about $300,000. It depends on how many accessories you buy. We've had V-300s go over $750,000-$800,000. A V-100, $75,000-$100,000. We've had one of those up into the $200,000-$300,000, depending on what they bought.
I'll go over some accessories. You'll see what I'm talking about. One screen, portable. If you were on the sim yesterday, that's what you were in, was the V-100. The V-180 is three screens, 180 degrees, and same thing with cost $180,000, roughly. One of the things that we've been doing in the last three months is we just introduced the Pro Truss. The Pro Truss has reduced our cost by 70% of our old truss system, and we're patenting it right now, so everything is overhead. The big deal with that is in the previous truss system, they had to make modifications to the building and had to do a lot on their end. We want to keep from doing that.
We want to pull all that work to us so that all they have to do is give us the requirements and write a check. And so we've kept the price the same, and that's why our gross margins has hovered in the mid-sixties, and we closed out last quarter with 70% gross margin. The V-ST PRO is multiple screens across with multiple engagements from soldiers or military or security forces. It teaches them shooting skills. We'll do five screens, and it's about 30 lanes, so up to 30 people. So as you can see, we've really spread out and been able to meet all the requirements and needs of the individuals. This is just being released, it's called TrackCam. Before, we had to have two cameras, a setup tripod, all these filters and lenses and all of that. It's all built into one.
So we've reduced our cost there by about 80%, and we're still selling it for the same. That's why the gross margins continue to climb. We're innovating the product and then not changing, lowering the cost and not changing the price. This is what you might have been hearing about. So one of the reasons why we did the VR headset is two things. One, you saw the screen here. You have to have a room that's 20 by 20 with nine-foot ceilings to put this in, to meet the throw of the projectors and to be able to provide an adequate training environment. The headset, I just need an area like we had that room, and I can cut it off and do a smaller area and give that type of training. It's low profile, it's incredibly portable.
It comes in a case no bigger than this box that this projector is sitting on. Two headsets, everything you need to run the system, including wireless updates to the box, it, plug it in. There's none of the parts that come out of it. You just take the headsets out and what you use, and all of the power bricks and the chargers and all of that are fixed into the box, so it's a very nice package that they can roll around. It's instructor-led, so as they're doing the performance on the headset, I've got menus that attach to the tablet that I can go through, and we're now looking at voice interaction and AR making the choices of the branches rather than the instructor.
And the great part about this is all of those scenarios that we've recorded, thousands, for the one hundred, the one eighty, and the three hundred, all work on this system. All of our certified courses and training through the certifying agency, IADLEST, are all working on here, so we have the most certified training. What I tell people is, "You can cobble together all this stuff and get a projector and cameras and write some software, but content is king." What we do with content is king, and that's what I'm gonna talk about. There's only two volumetric video capture studios in the country. This is the largest in the world as far as purpose-built for this. We take real actors, not game CGI, computer-generated imagery, and we generate. This guy right here is me.
They capture it inside the studio, and then you can take that character and build any scenario you want. So we're building our character library of live individuals. When I was in the service, the military created a deck of cards, and the top perpetrators, Osama bin Laden, was number one as the ace of spades, and it went down. So you're sitting there going through these cards as you're going through crowds and all that. Can you imagine going through a scenario, and I take that person's face and I superimpose it, and I just have them as images walking by in a crowd? It's that subconscious that you're training.
So there's lots and lots of different ways of using this to be able to help train soldiers and if. Let's say you had a someone you're looking for, we could put this out on all simulators, that individual's avatar, if you will, in those scenarios, and so it subconsciously teaches them. Somebody goes, "That guy looks familiar. Why?" Right? And that instinct comes into play. Industry-leading accessories, realistic firearms. The big deal is we have our own machine shop. We have our own Hollywood-level film studio. We have our own software development team and mechanical engineers. We get a weapon. If this was a weapon, I would scan the inside of it. There's something that comes out of here.
I would replace the bolt and the magazine, and they use their same exact weapon with the same trigger pull, all the optics and everything they use, and I'll give them recoil to get back on the target when they're doing de-escalation, we'll do the tasers, we'll do the OC spray, pepper spray. We do flashlights, so the whole room would be dark, and as they did this flashlight, the laser would just light up the area that they needed to see. I mean, it's quite amazing in the technology and what we've applied, and the reason why we're doing so well is we listen to the customers, we bring it back, and we apply a technology to help them with that training. Trainees, I kinda went over all that already. A wide selection of supported models.
So you think about all the weapons, handguns that are out there, rifles, that shotguns, and everything that law enforcement, security forces, and military use, we have a very wide range, and we have the capability. We had a Canadian-- We have a Canadian contract for the entire country, and they've come with three weapons we didn't have. We scanned them, we X-rayed them, we LiDAR them and modeled them, and then built all the internal components to replace those. So they don't have to buy all these extra weapons. They just pass around these kits and magazines for realistic training. And then the Threat-Fire. The Threat-Fire is when you're in a simulation, eh, you know you're not gonna get hurt, so you put this Threat-Fire on, and it gives you like a shock, a pretty good shock.
And it, you know, it takes your head out of the game. It makes you think about what's going on, but you still have a situation. So it lets them understand how am I gonna react in this situation if I now have skin in the game, so to speak? I talked about this a little bit, the V-VICTA Curriculum. IADLEST is a national certification program. You think about what you probably know as hospitals and that have, and doctors and nurses have continuing education. It's continuing education credits in a lot of different fields. Law enforcement is no different, and military has their own. We have 35 states are covered with this certification. We have over 50 certified courses that they can take on our system. They don't have to go anywhere.
They're now on the headset, so they can pass around, print out the certification, and then submit it, so now we're, you know, we do this full depth and breadth of training, give them the skills that they need. We've got a couple people in this room that didn't know a few things when they pulled a weapon up inside of a scenario, and what was your experience after going through several times? You got much better, didn't you?
Yeah, did you feel like you were in it, and it, you know, you're in the middle of it, and your heart rate's going up, and you're sweating?
Right, and so that's what we try to get to. Everybody has a baseline, what I call a baseline of training. I can get a police officer or military that really knows what they're doing, and I can crank it up until they start failing. That's when training starts. It's not just a PowerPoint. You're immersed into the environment, and you get that full level of training. Law enforcement TAM is $650 million, but how do I grow that? All I have to do is add the U.S. military, foreign militaries, and I'm up over $1.5 billion-$2 billion. So now the company is... its production is running very smoothly. We've retooled the whole business. We have invested in new machinery, and we've regenerated the entire sales organization, and we're seeing those in our last financials.
You'll see that we've worked down the backlog, and everything's picking up now, and we even have, you know, some of the domestics, Arizona, Denver. Here in San Francisco Police Department has one of our V-300s as well, and trains with it. Internationally, Canada, Australia, Brazil, Colombia, Mexico, Ukraine, Pakistan, a whole slew of countries in Central America. So El Salvador's come online and others as well. And what's really interesting is there's two types of dollars. You go, "Well, John, how are you gonna expand? How do you reach it?" The system that the headset, the headset system that we have, that reaches the market under 50,000. That's under the CapEx purchasing price. So I reach those and all those small agencies. There are 18,000 police departments in the country. About 6,500 of them have enough budget to buy a system.
The rest are one and two officers, and heck, they have hardly enough money to do, to buy weapons and fuel for their vehicles. So what we're doing is we're hitting at all levels, so this gets them under the CapEx. The STEP program, I'll talk about that in a minute. I reach the other lower ones because now it's a leased program, so now each year they get a lease. So I have a recurring revenue stream in both maintenance and in the STEP program.
We want our recurring revenue to be about 30% of our overall revenue, and I don't wanna do it at one time because the first year, we don't reach those gross margins of mid-60s and 70s% if I do all STEP programs, just because we're trying to pay for it within the first year, and then the next years, we're in the mid-80s, 90% gross margin on those out years. So that's what we're doing to build gross revenue. 40 countries of international systems, like I said, I think it's 42 now. Why customers choose VirTra? The V-300 and V-180 simulators, hundreds of deployments in each category, so they have a wide breadth and depth of information and scenarios that they can train with. We're continuing to add that.
Part of their maintenance program is, if I'm paying for maintenance as a customer, I want to say to myself, "Well, why should I pay this?" You know, software licensing, right, and maintenance, that you really don't get anything, patches or whatever. I want something tangible. So now they're getting twenty new scenarios, forty new scenarios a year for training with their maintenance. They're also receiving full replacement of parts and a lot of those parts, they come back. Steel doesn't wear that much, a few small parts. Replace some O-rings, some batteries, some boards, and it goes into our advanced replacement. So we have this model that's really working for the replacement, and they get maintenance 'cause they can't go back to a budget and then keep getting money to fix things or whatever.
So, and then you look at the longevity of a computer or a projector. We're trying to bridge that gap and make it more conducive of how they manage their budgets and also to their training. We have a top reputation. I've gotten a question: Well, you know, how much of the market do you own? Well, with 18,000, we have about 453, but of those 453, we own about 80% of the market compared to our competitors. That doesn't mean anything to me. 80% of the market, when we only have 453. Now I'm getting aggressive, and I'm going after those and then expanding into the military market, which is untapped and unlimited, and then I'm moving into healthcare.
Healthcare just passed a law in California and Connecticut, where it holds the healthcare workers liable for felony in dealing with individuals, but there's no training. They've been given nothing, so a few of the larger healthcare organizations are now trying to lead the charge on what do we do? How do we get these certified training courses and these CEUs to healthcare, so we're following legislation where they're putting out grants, and we're following the industry and legal, and that's how we're staying ahead of the market and our competitors.
The other thing is, by going through training and getting certified, now from a legal perspective and some of these suits that come up, now we're keeping track of the types of training they're getting, not just going out to the range and plinking a few things against a target. They're actually going through situational awareness, adaptive thinking and learning. That's what this brings. PowerPoints don't do that. Going out to the range doesn't do that. The only thing comparable of training that matches the VirTra system is going out there and getting in the actual situation and putting yourself in harm's way. That's it. It's the only other alternative, and I don't think that's a good alternative without the right training. Looking at our financials, 2019 to 2023, $38 million in total revenue. Again, you start seeing what we've done to our back end.
That's an A plus plus on the report card for fixing our production on the back end, looking at cost-saving measures, and it's continuing to go up. You'll see those continue to go up through efficiencies in what we've done. $18 million in the bank, $66 million total assets, $8 million in debt, that's mostly the building that we own, and total equity, $45 million. 11 million outstanding shares, and if you want to know what's allocators, I think it's, less than 1 million. So our growth tactics is leveraging the strategic partnerships. Force Science Institute was the one that I was talking about. They're delving into all the human factors. We're incorporating that. It's really important for training that a lot of people don't think about.
Haley Strategic Partners, it's a group that does training for military and law enforcement and other private security agencies, which is, again, a very untapped market and large. National Sheriffs' Association and a lot of other associations throughout the country, we have partnerships, and we deal with them on a regular basis, and we listen to them, and we apply the things that are gonna take care of our customers. Growing beyond these markets, we've introduced new products, so we've got the TrackCam, the ProTruss, the V-XR headset, and we're continuing to move that forward. We're now gonna apply gaming technologies onto the systems. I was previously founder and president of Bohemia Interactive Simulations, and it was a gaming company.
We took a gaming engine from the commercial side, and we applied it to the military, and it became a program of record, and we're going to adapt that, and it's our best penetration. I still have an amazing relationship with British Aerospace Engineering, who bought the company two years ago, three years ago, and we're gonna partner it and drive into the military, and they already have this gaming environment, so it attaches to all the systems that they already have for reuse. So now you expand the capability, and that's a real story right there, and that's an easy way to do it, and leveraging our existing technology by applying a new delivery mechanism. Growth within the market, new sales to medium and large, so now we're capturing the low end with smaller budgets.
I won't say low end, but the smaller budgets, we're able to capitalize on those. We're increasing our content warranty coverage, and then, finally on that, we are in those markets, there's a hard time getting revenue on these small individuals, so we've created a grant program. That grant program, we go through the sales process, we then put it into a grant stage, and then we have a team, PhDs, that know all the grants and are helping. We're on the Senate subcommittees trying to influence legislation on where these grants go, and at the state and federal level as well, so we've expanded all that, things that haven't been done in the past with VirTra. STEP program, twelve-month subscription, kind of talked about it.
It reduces their upfront costs, and it increases our backlog, and it lowers the barriers to entry. These are the growth I've already talked about. Increased budgets in tech and advancement in the military, that's where I came from. I was from the military. I've been a military contractor all my life, and the technology is 100% adaptable in that market, with a few minor changes to content and the delivery of that content. So, three things you need to know to walk away. We're the industry leader, best in class of de-escalation. Technology addresses all the critical concerns of military, the new growth market, the hospitals, another growth market, and currently where we are in law enforcement. Superior technology, with the solutions integrating the simulator into other things.
The other thing we haven't done in the past is we haven't taken our simulator and integrated it into a driving sim or integrated into some technology that they have that they're using for training. So that's an untapped market that myself and my team have done in our past lives. And then strong financials, which we talked about before, and it's all been in organic growth since 2005. The one question that somebody asked is, "Well, this company's been in business for thirty years, and it's kinda just eked along. What was the difference?" well, I look at it as a thirty-year startup in the way if you look at how it's gone. I've come out of an industry and looked at the technology, and we've retooled the whole company. It's changed.
There's folks and analysts out there that can tell you, a couple of them sit in this room, of the difference of where VirTra was and where they are today and where we're heading. This tells a good story. The financials are strong, the growth we've shown, and Stewart, with the money and our shareholders, you've seen that as well. That's all I have. These will be available to you, about directors and who's on there.
Thank you very much, John. I know we're a little bit over time, but if you do have questions, feel free to reach out to that email or, you know, connect with John and Alana throughout the conference today.
Good.
Yep. Thank you, guys.
Thank you.