Stockholders’ Equity

3 Months Ended

Mar. 31, 2022

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 the 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. The stock repurchase suspension remained in effect until the PPP loan was forgiven on July 20, 2021, and has continued to remain in effect.

Treasury Stock

During the three months ended March 31, 2022, the Company purchased no additional treasury shares.

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:

	March 31, 2022					March 31, 2021
	Number of			Weighted		Number of			Weighted
	Stock Options			Exercise Price		Stock Options			Exercise Price
Options outstanding, beginning of year		112,500		$	3.51		164,167		$	3.13
Granted		-			-		-			-
Redeemed		(8,750	)		3.19		(8,750	)		1.45
Exercised		(2,500	)		3.19		(2,500	)		1.45
Expired / terminated		-			-		-			-
Options outstanding, end of period		101,250		$	3.55		152,917		$	3.25
Options exercisable, end of period		101,250		$	3.55		152,917		$	3.25

The Company did not have any non-vested stock options outstanding as of March 31, 2022 and December 31, 2021. The weighted average contractual term for options outstanding and exercisable at March 31, 2022 and 2021 was 7 years. The aggregate intrinsic value of the options outstanding and exercisable at March 31, 2022 and 2021 was $258,077 and $443,036, respectively. The total intrinsic value of options exercised and redeemed during the three months ended March 31, 2022 and 2021 was $30,675 and $52,898, respectively. For the three months ended March 31, 2022 and 2021, the Company received payments related to the exercise of options in the amount of $7,975 and $3,620, 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 March 31, 2022, 224,133 and 168,090 restricted stock awards and 14,057 and 10,543 restricted shares have been granted under the Equity Plan to the Company’s CEO and COO, respectively.