# EDGAR Filing Document

**Accession Number:** 0001085243
**File Stem:** 0001493152-26-012911
**Filing Date:** 2026-3
**Character Count:** 24086
**Document Hash:** 50ceccb0794e825b93aced3236585907
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-012911.hdr.sgml**: 20260326

**ACCESSION NUMBER**: 0001493152-26-012911

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20260326

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260326

**DATE AS OF CHANGE**: 20260326

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** VirTra, Inc
- **CENTRAL INDEX KEY:** 0001085243
- **STANDARD INDUSTRIAL CLASSIFICATION:** MISCELLANEOUS MANUFACTURING INDUSTRIES [3990]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 931207631
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38420
- **FILM NUMBER:** 26798089

**BUSINESS ADDRESS:**
- **STREET 1:** 295 E CORPORATE PLACE
- **CITY:** CHANDLER
- **STATE:** AZ
- **ZIP:** 85225
- **BUSINESS PHONE:** 4809681488

**MAIL ADDRESS:**
- **STREET 1:** 295 E CORPORATE PLACE
- **CITY:** CHANDLER
- **STATE:** AZ
- **ZIP:** 85225

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** VIRTRA SYSTEMS INC
- **DATE OF NAME CHANGE:** 20020628

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** GAMECOM INC
- **DATE OF NAME CHANGE:** 19991103

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): March 26, 2026**

**VIRTRA, INC.**

(Exact name of Registrant as Specified in Its Charter)

---

| | | |
|:---|:---|:---|
| **Nevada** | **001-38420** | **93-1207631** |
| (State or Other Jurisdiction | (Commission | (IRS Employer |
| of Incorporation) | File Number) | Identification No.) |

---

---

| | |
|:---|:---|
| **295 E. Corporate Place**<br>**Chandler, AZ** | **85225** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

Registrant's Telephone Number, Including Area Code: **(480) 968-1488**

**<u>Not Applicable</u>**

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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. ☐

**Item 2.02. Results of Operations and Financial Condition.**

On March 26, 2026, VirTra, Inc. issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2025. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information contained in the website is not a part of this Current Report on Form 8-K.

The information under this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01. Financial Statements and Exhibits.**

(d) Exhibits.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Press release of the registrant dated March 26, 2026](ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **VIRTRA, INC.** | **VIRTRA, INC.** |
| Date: March 26, 2026 | By: | */s/ John F. Givens II* |
|  | Name: | John F. Givens II |
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![](ex99-1_001.jpg)

**VirTra Reports Fourth Quarter and Full Year2025 Financial Results**

**CHANDLER, Ariz. — March 26, 2026 —<u>VirTra, Inc.</u> (Nasdaq: VTSI) ("VirTra" or the "Company"),** a global provider of judgmental use-of-force and firearms training simulators, reported results for the fourth quarter and full year ended December 31, 2025. The financial statements are available on VirTra's website and <u>here</u>.

**Fourth Quarter 2025 and Recent Operational Highlights**

● **Bookings totaled $7.3 million in Q4 2025**, bringing total bookings for 2025 to $26.7 million.

● **Total backlog was $25.6 million at December 31, 2025.** 

● **Demonstrated its next-generation Drone Defense Training System** for corrections professionals as agencies prepare officers to detect, track, and respond to unauthorized drones attempting to breach facility perimeters or deliver contraband into secure environments.

● **Gained early traction with the APEX data analytics platform integration,** conducting multiple demonstrations for U.S. military groups and securing an international contract win, reinforcing VirTra's ability to deliver actionable training insights and expand its military simulation capabilities.

● **Introduced additional product offerings, including the V-One portable simulation platform**, to address the needs of smaller agencies and mobile training environments, expanding accessibility of the Company's solutions.

● **Continued enhancement of the training ecosystem through integration of advanced analytics capabilities**, enabling agencies to measure performance, assess decision-making, and support data-driven training outcomes.

● **Expanded engagement with U.S. military branches, including demonstrations with Army and Marine Corps groups.** 

**Fourth Quarter and Full Year 2025 Financial Highlights**

---

| | | | |
|:---|:---|:---|:---|
| | For the Twelve Months Ended | For the Twelve Months Ended | For the Twelve Months Ended |
| <br>*All figures in millions, except per share data* | **December 31, 2025** | **December 31, 2024\*** | **% Δ** |
| **Total Revenue** | $**22.4** | $26.4 | **-15%** |
| **Gross Profit** | $**15.2** | $19.4 | **-22%** |
| **Gross Margin** | **68%** | 74% | **N/A** |
| **Net Income (Loss)** | $**0.3** | $1.4 | **N/A** |
| **Diluted EPS** | $**0.02** | $0.12 | **N/A** |
| **Adjusted EBITDA** | $**1.6** | $2.9 | **-45%** |

---

\*The column for the twelve months ended December 31, 2024 reflects restated financials.

**Management Commentary**

VirTra CEO John Givens stated, "Our fourth quarter and full year 2025 results reflect the impact of an extended and highly atypical federal funding disruption, which has affected the timing of awards, customer procurement, and system deliveries across our core markets throughout recent quarters. While these dynamics continued to weigh on revenue in Q4, underlying customer demand has remained intact, as reflected by our improvement in bookings and backlog growth to $25.6 million and strong engagement with law enforcement and defense agencies.

"In recent weeks, we have begun to see key federal grant programs, including the Justice Assistance Grant (JAG) Program and COPS funding, reopen and customers re-engage in the application process. Fiscal 2025 funding, originally approved in prior periods, is only now being released and applications are being accepted, reflecting the delays we have experienced. Behind this, additional funding cycles, including fiscal 2026 and expected fiscal 2027 allocations, are progressing, resulting in multiple funding cycles moving through the system concurrently and driving increased activity across our customer base."

"We are proactively supporting customers as they move through the application, award, and procurement process. However, the timing of awards, purchase orders, and system deliveries remains dependent on external funding timelines and customer readiness, and we expect this process to play out over the next few quarters.

"While 2025 can be viewed as a transition year, the work we have done over the past twelve months to strengthen our sales organization, expand our product line, and deepen our relationships with key federal and international customers has positioned us well as the environment begins to normalize.

"We have taken steps to enhance our commercial execution, including expanding our federal sales coverage and strengthening our marketing capabilities, while continuing to invest in differentiating product offerings such as our advanced reporting and analytics platforms, which have contributed to recent customer wins. Importantly, we have aligned our operations and inventory to support rapid fulfillment as orders convert, with the ability to deliver systems on short timelines as customer funding is secured.

"Our disciplined financial approach has allowed us to preserve flexibility with a strong balance sheet. We are moving through 2026 with a clearer operational runway, and as funding conditions continue to normalize, our focus remains on converting backlog and pipeline activity into revenue."

**Full Year 2025 Financial Results**

**Total revenue** for the year was $22.4 million, compared to $26.4 million (restated) in the prior year period. The 15% decrease was primarily due to decreased revenues from simulators and accessories.

**Gross profit** for year was $15.2 million (68% of revenue), compared to $19.4 million (74% of revenue) in the prior year period.

**Net operating expense** for the year was $14.8 million, a 15% decrease from $17.4 million in the prior year period, maintaining disciplined cost management.

**Operating income** for the year was $0.4 million, compared to $2.0 million in the prior year period.

**Net income** for the year was $0.3 million, or $0.02 per diluted share, compared to $1.4 million, or $0.12 per diluted share, in the prior year period.

**Adjusted EBITDA**, a non-GAAP metric, was $1.6 million for the year, compared to $2.9 million in the prior year period.

**Fourth Quarter 2025 Financial Results**

**Total revenue** for the fourth quarter was $2.9 million, compared to $4.7 million in the prior year period. The decrease was driven primarily by delays in government funding, customer purchasing cycles, and the timing of deliveries and acceptance across both domestic and international markets.

**Gross profit** for the fourth quarter was $1.7 million (58% of total revenue), compared to $2.9 million (62% of total revenue) in the prior year period.

**Net operating expense** for the fourth quarter was $3.3 million, a 23% decrease from $4.2 million in the prior year period, maintaining cost discipline.

**Operating income** for the fourth quarter was ($1.2) million compared to ($1.0) million in the prior year period.

**Net income** for the fourth quarter was ($1.0) million, or ($0.09) per diluted share, consistent with the prior year period.

**Cash and cash equivalents** were $18.6 million at December 31, 2025, compared to $18.0 million at December 31, 2024. The Company ended the year with $30.8 million in working capital, supporting continued operating flexibility.

**Financial Commentary**

"Our margins for the year remained strong as we continued prudent cost management through 2025's complex funding environment. Our balance sheet strength provides flexibility to navigate order timing variability while continuing to invest in the business and execute as funding flows to our agency customers, while remaining disciplined stewards of capital. Our operating model is well-positioned to benefit from operating leverage and margin expansion as conditions improve."

**Conference Call**

VirTra's management will hold a conference call today (March 26, 2026) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. VirTra's CEO John Givens and Chief Financial Officer Alanna Boudreau will host the call, followed by a question-and-answer period.

U.S. dial-in number: 1-877-407-9208

International number: 1-201-493-6784

Conference ID: 13758841

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.

The conference call will be broadcast live and available for replay <u>here</u> and via the investor relations section of the Company's <u>website</u>.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through April 9, 2026.

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 13758841

**About VirTra, Inc.**

VirTra (Nasdaq: VTSI) is a global provider of judgmental use-of-force and firearms training simulators for law enforcement, military, educational, and commercial markets. Since 1993, VirTra has been dedicated to saving lives by providing highly effective, realistic training designed to prepare officers for the most difficult real-world situations.

**About the Presentation of Adjusted EBITDA**

Adjusted earnings before interest, income taxes, depreciation, and amortization and before other non-operating costs and income ("Adjusted EBITDA") is a non-GAAP financial measure. Adjusted EBITDA also includes non-cash stock option expense and other than temporary impairment loss on investments. Other companies may calculate Adjusted EBITDA differently. VirTra calculates its Adjusted EBITDA to eliminate the impact of certain items it does not consider to be indicative of its performance and its ongoing operations. Adjusted EBITDA is presented herein because management believes the presentation of Adjusted EBITDA provides useful information to VirTra's investors regarding VirTra's financial condition and results of operations and because Adjusted EBITDA is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in VirTra's industry, several of which present a form of Adjusted EBITDA when reporting their results. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of VirTra's results as reported under accounting principles generally accepted in the United States of America ("GAAP"). Adjusted EBITDA should not be considered as an alternative for net income, cash flows from operating activities and other consolidated income or cash flows statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. A reconciliation of net income to Adjusted EBITDA is provided in the following tables:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended** | **For the Year Ended** | **For the Year Ended** | **For the Year Ended** |
|  | December 31,<br>2025 | December 31,<br>2024 | Increase<br>(Decrease) | %<br>Change |
| Net Income (Loss) | $258446 | $1363681 | $(1105235) | -81% |
| &nbsp;&nbsp;&nbsp;Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Provision for income taxes | (111258) | 887286 | (998544) | -113% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1762468 | 1136812 | 625656 | 55% |
| &nbsp;&nbsp;&nbsp;Interest (net) | (139516) | (182018) | (42502) | -23% |
| EBITDA | 1770140 | 3205761 | (1434621) | -45% |
| Right of use amortization | (168988) | (279592) | 110604 | 40% |
| Adjusted EBITDA | $1601152 | $2926169 | $(1325017) | -45% |

---

**Forward-Looking Statements**

**Investor Relations Contact:**

Alec Wilson and Greg Bradbury

Gateway Group, Inc.

<u>VTSI@gateway-grp.com</u>

949-574-3860

**-Financial Tables to Follow-**

**VIRTRA, INC.**

**CONDENSED BALANCE SHEETS**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | | **(Restated)** |
| **ASSETS** |  |  |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $18594598 | $18040827 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 5502087 | 7507315 |
| &nbsp;&nbsp;&nbsp;Inventory, net | 13060024 | 14583400 |
| &nbsp;&nbsp;&nbsp;Unbilled revenue | 868216 | 2570441 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 2622462 | 1273115 |
| &nbsp;&nbsp;&nbsp;Deferred contract costs – short-term | 374375 | - |
| &nbsp;&nbsp;&nbsp;**Total current assets** | 41021762 | 43975098 |
| **Long-term assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 16268400 | 16204663 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use asset, net | 268873 | 437095 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 2513186 | 558651 |
| &nbsp;&nbsp;&nbsp;Security deposits, long-term | 15979 | 35691 |
| &nbsp;&nbsp;&nbsp;Other assets, long-term | 424226 | 148177 |
| &nbsp;&nbsp;&nbsp;Deferred tax asset, net | 4135463 | 3595574 |
| &nbsp;&nbsp;&nbsp;Deferred contract costs – long-term | 488695 | - |
| &nbsp;&nbsp;&nbsp;**Total long-term assets** | 24114822 | 20979851 |
| **Total assets** | $65136584 | $64954949 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $784074 | $957384 |
| &nbsp;&nbsp;&nbsp;Accrued compensation and related costs | 461430 | 1253544 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 1196565 | 657114 |
| &nbsp;&nbsp;&nbsp;Note payable, current | 227754 | 230787 |
| &nbsp;&nbsp;&nbsp;Operating lease liability, short-term | 196311 | 192410 |
| &nbsp;&nbsp;&nbsp;Deferred revenue, short-term | 7361738 | 6355316 |
| &nbsp;&nbsp;&nbsp;**Total current liabilities** | 10227872 | 9646555 |
| **Long-term liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Deferred revenue, long-term | 1913393 | 2282996 |
| &nbsp;&nbsp;&nbsp;Note payable, long-term | 7314085 | 7567536 |
| &nbsp;&nbsp;&nbsp;Operating lease liability, long-term | 89053 | 265111 |
| &nbsp;&nbsp;&nbsp;**Total long-term liabilities** | 9316531 | 10115643 |
| **Total liabilities** | 19544403 | 19762198 |
| Commitments and contingencies (See Note 10) |  |  |
| **Stockholders' equity:** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Common stock $0.0001 par value; 50,000,000 shares authorized; 11,303,885 shares and 11,255,709 shares issued and outstanding as of December 31, 2025 and 2024, respectively | 1130 | 1125 |
| &nbsp;&nbsp;&nbsp;Class A common stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Class B common stock $0.0001 par value; 7,500,000 shares authorized; no shares issued or outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 33056091 | 32915112 |
| &nbsp;&nbsp;&nbsp;Retained Earnings | 12534960 | 12276514 |
| &nbsp;&nbsp;&nbsp;**Total stockholders' equity** | 45592181 | 45192751 |
| **Total liabilities and stockholders' equity** | $65136584 | $64954949 |

---

**VIRTRA, INC.**

**CONDENSED STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
| Revenues: |  |  |
| &nbsp;&nbsp;&nbsp;Net sales | $22402188 | $26350819 |
| &nbsp;&nbsp;&nbsp;Total revenue | 22402188 | 26350819 |
| &nbsp;&nbsp;&nbsp;Cost of sales | 7199562 | 6938304 |
| &nbsp;&nbsp;&nbsp;Gross profit | 15202626 | 19412515 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 12381536 | 14412882 |
| &nbsp;&nbsp;&nbsp;Research and development | 2383595 | 3003302 |
| &nbsp;&nbsp;&nbsp;Net operating expense | 14765131 | 17416184 |
| &nbsp;&nbsp;&nbsp;Income (loss) from operations | 437495 | 1996331 |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;Other income | 341013 | 829618 |
| &nbsp;&nbsp;&nbsp;Other (expense) | (631320) | (574982) |
| &nbsp;&nbsp;&nbsp;Net income (expense) | (290307) | 254636 |
| &nbsp;&nbsp;&nbsp;Income before provision for income taxes | 147188 | 2250967 |
| &nbsp;&nbsp;&nbsp;Provision (Benefit) for income taxes | (111258) | 887286 |
| Net income | $258446 | $1363681 |
| Net income per common share: |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $0.02 | $0.12 |
| &nbsp;&nbsp;&nbsp;Diluted | $0.02 | $0.12 |
| Weighted average shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 11272483 | 11162917 |
| &nbsp;&nbsp;&nbsp;Diluted | 11272483 | 11162917 |

---

**VIRTRA, INC.**

**CONDENSED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
|  | **(Restated)** | **(Restated)** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $258446 | $1363681 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1762468 | 1136812 |
| &nbsp;&nbsp;&nbsp;Right of use amortization | 168222 | 279592 |
| &nbsp;&nbsp;&nbsp;Employee stock compensation | 140983 | 777093 |
| &nbsp;&nbsp;&nbsp;Bad debt expense |  | (166640) |
| &nbsp;&nbsp;&nbsp;Stock issued for service |  | 160104 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 2005229 | 8633309 |
| &nbsp;&nbsp;&nbsp;Inventory, net | 1523377 | (2178520) |
| &nbsp;&nbsp;&nbsp;Deferred taxes | (539889) | 34580 |
| &nbsp;&nbsp;&nbsp;Deferred Contract Costs | (863070) |  |
| &nbsp;&nbsp;&nbsp;Unbilled revenue | 1702225 | (1460825) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (1349348) | (366313) |
| &nbsp;&nbsp;&nbsp;Other assets | (256335) | 53493 |
| &nbsp;&nbsp;&nbsp;Accounts payable and other accrued expenses | (429004) | (5606536) |
| &nbsp;&nbsp;&nbsp;Operating lease right of use | (172156) | (292495) |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 636819 | (1110069) |
| &nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 4587967 | 1257266 |
| **Cash flows used investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Internal intangible assets | (2265489) |  |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (1515255) | (1845572) |
| Net cash used in investing activities | (3780744) | (1845572) |
| **Cash flows used financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Principal payments of debt | (253452) | (240862) |
| &nbsp;&nbsp;&nbsp;Stock issued for options exercised | - | 20153 |
| Net cash used in financing activities | (253452) | (220709) |
| Net increase in cash | 553771 | (809015) |
| Cash and restricted cash, beginning of period | 18040827 | 18849842 |
| Cash and restricted cash, end of period | $18594598 | $18040827 |
| Supplemental disclosure of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;Income taxes paid | $224698 | $5505793 |
| &nbsp;&nbsp;&nbsp;Interest paid | $234268 | $241838 |

---