Friends and
Shareholders:
I am pleased to write to
you today and give you a company update.
2007 has been a
remarkable year for VirTra Systems and should prove to be our best
year to-date. Sales have increased dramatically,
we have not borrowed money
for a little over one year. We have been self-sustaining during
that time and even paid-off a $186,000 note. Our market share has
increased significantly, both internationally and domestically, and
we now enjoy many repeat
customers.
We have just been
notified by the IRS this week, as a result of our request last year
at this time, that they have finally assigned our case to a revenue
officer to help us resolve and pay-off that liability. Since we are
in the middle of settling this, I don't have more information at
this time - they are notoriously slow; but, I wanted to let all know
the status of that issue. I remain committed to resolving this
issue favorably for the company and our shareholders, and this is an
important next step in the process. I'll keep you all up-to-date as
this initiative progresses.
Our last bit of
unfinished past business is the debenture. After requesting an
accounting from Duchess
regarding any remaining debt owed, they informed us that they could
not provide us with that information on advice of their counsel. I
thought that strange; so,
I instructed our CPA to do
an accounting of what we have paid-out
already.
Friends and
shareholders, after that research was completed, and after a review
of that information, I have determined that we not only have paid
that debt in full (remember the initial amount was only $500,000),
but after more than 45 million shares of our stock were handed over
to them, which they promptly dumped into the market, we have in
aggregate turned over to them in excess of $4,000,000 dollars of
market value.
I am satisfied this
immense "payday"
for Duchess more than satisfies this debenture, and have determined
that the company has paid this debt in full. That is why you
do not see Duchess dumping the rest of the life from our company
anymore. I do not intend to resecure any financing of this type, as
we have all seen the relentless and selfish destruction of our
shareholder value vis-à-vis our best performance yet.
I wanted to let you all
know that with these legacy issues very close to being completely
resolved, our looming audited 2007 10-K due out between March 30th
and April 14th that should prove to be the best-ever
in our history, and a strong showing already this quarter, I remain
more optimistic that ever of the company's success.
I'd like to to thank
those of you who have stood by us for these many years, and assure you
that it is my pledge to do whatever else it takes to lead us
the rest of the way to the success I have always believed would
come.
These are simply my personal
comments and should not be relied upon in your investment decisions.
I strongly urge you to conduct your own due diligence with regard to
any investment in VirTra Systems. I respectfully refer you to VirTra
Systems' filings with the United States Securities and Exchange
Commission.
--Major General Perry V. Dalby
(USA-Retired), VirTra Systems' CEO
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