Stockholders’ Equity

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Stockholders’ Equity

Note 10. Stockholders’ Equity 

Stock Repurchase

On October 25, 2016, the Company’s Board of Directors authorized the repurchase of up to $1 million of its common stock under Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended. Purchases made pursuant to this authorization will be made in the open market, in privately negotiated transactions, or pursuant to any trading plan that may be adopted in accordance with Rule 10b-18. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. On January 9, 2019, VirTra’s Board of Directors authorized an additional $1 million be allocated for the repurchase of VirTra’s stock under the existing 10b-18 plan. The stock repurchase program was suspended as a result of interim rulings for public-company recipients of a PPP loan under the CARES Act. Although the Company’s PPP loan was forgiven on July 20, 2021, the suspension of the stock repurchase program continues to remain in effect.

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:

	September 30,2024					December 31, 2023
	Number of Stock Options			Weighted Exercise Price		Number of Stock Options			Weighted Exercise Price
Options outstanding, beginning of year		15,000		$	4.03		45,000		$	4.26
Granted		-			-		-			-
Redeemed		(10,000	)		3.76		(15,000	)		5.09
Exercised		(5,000	)		3.76		(15,000	)		3.66
Expired / terminated		-			-		-			-
Options outstanding, end of period		-		$	-		15,000		$	4.03
Options exercisable, end of period		-		$	-		15,000		$	4.03

VIRTRA, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

The Company did not have any non-vested stock options outstanding as of September 30, 2024, and December 31, 2023. The weighted average contractual term for options outstanding and exercisable on September 30, 2024, and 2023 was 0 years. The aggregate intrinsic value of the options outstanding and exercisable on September 30, 2024, and 2023 was $-0- and $34,425 respectively. For the three months ended September 30, 2024, and 2023, the Company received payments related to the exercise of options in the amount of $-0- and $14,700, respectively. For the nine months ended September 30, 2024, and 2023, the Company received $20,150 and $41,902, respectively. The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of the Company’s common stock for those stock options that have an exercise price lower than the fair value of the Company’s common stock. Options with an exercise price above the fair value of the Company’s common stock are considered to have no intrinsic value.

2017 Equity Incentive Plan

Through September 30, 2024, 224,133 and 288,889 restricted stock units (RSUs) have been granted under the Equity Plan to the Company’s former Executive Chairman and CEO, respectively, of which 17,753 and 288,889 shares were issued in settlement of such RSUs. Also, 10,543 and 14,057 restricted shares were issued to the Company’s former COO and former Executive Chairman.

Common stock activity

During the three months ended September 30, 2024, the Company settled performance-based restricted stock units that had been granted to its CEO by issuing him 72,152 shares (46,367 shares withheld for taxes), net of tax withholding liability, valued at $484,861. The Company had achieved net profit for the twelve months ended June 30, 2024, of at least $6,500,000. The Company also issued 58,543 shares to its former Executive Chairman, valued at $487,663.