VirTra, Inc. (NASDAQ:VTSI) Q1 2020 Earnings Conference Call - Final Transcript
May 11, 2020 • 04:30 pm ET
by refining current solutions and developing new ones. And we continue to make progress to better position our products to suit the needs of the military market.
During the stay-at-home order our teams showed tenacity for success by actually increasing our progress on product development for the military market. Similar to the law enforcement market, the military does not appear to have substantially altered its appetite for new training solutions. We continue to make progress here and hopefully we'll have some good news to share in the coming quarters. At this stage, no one can say with certainty what the world will look like as policies change and we all work to return to what we previously called normal. But regardless, based on the most recent of events, VirTra's future seemed stable and bright. We're fortunate that approximately 87% of our customer base is government and essential to the well-being of all of us. As such, there's relatively little risk at the moment of customers encountering challenges with cash flow or becoming insolvent. Many departments already have budgets allocated for the year. So, spending behavior was not materially diminished so far. Of course, it is possible that customer behavior could change later this year or in 2021 and we plan to carefully monitor and quickly adjust.
Should the return to normal take longer than current projections or should economic conditions remain challenging, it is important to bear in mind that VirTra is a remarkably stable company with a clean balance sheet that we've just strengthened and a history of successfully navigating challenging economic environments. We emerged from the last recession stronger than we entered it. We've added to our cash position since the end of last year. We currently have $3.8 million in cash. We've taken precautionary measures to ensure we have the resources in place to take care of our people should the need arise.
And we have a long history of keeping an extremely clean balance sheet. We know how to conservatively and effectively run our business during the times of prosperity and scarcity.
So, overall we remain confident in our ability to weather the current storm and emerge in a strong position. Properly trained law enforcement and military personnel is in everyone's interest, especially during periods of unusual tension. We intend to be here to ensure our critical first responders have access to the best simulation training possible.
And with that, I'm going to wrap up my prepared remarks and I believe we're ready to open the call for your questions. Operator, please provide the appropriate instructions.