VirTra, Inc Debt Disclosure
Note 8. Note Payable
On August 25, 2021, the Company completed the purchase of real property located in Chandler, Arizona (the “Property”) for $10,800,000, paid with cash and proceeds from a mortgage loan from Arizona Bank & Trust in the amount of $8,600,000. The loan terms include interest to be accrued at a fixed rate of 3% per year, 119 regular monthly payments of $40,978, and one irregular payment of $5,956,538 due on the maturity date of August 23, 2031. The Company began making monthly payments on September 23, 2021. The payment and performance of the loan is secured by a security interest in the property acquired.
The note payable amounts consist of the following:
| December 31, 2025 | December 31, 2024 | |||||||
| Short-term liabilities | ||||||||
| Note payable, principal | $ | 215,037 | $ | 218,890 | ||||
| Accrued interest to date | 12,717 | 11,897 | ||||||
| Note Payable, short-term | $ | 227,754 | $ | 230,787 | ||||
| Long-term liabilities | ||||||||
| Note payable, principal | $ | 7,314,085 | $ | 7,567,536 | ||||
| Note payable, long term | $ | 7,314,085 | $ | 7,567,536 | ||||
Future minimum Note payments as of December 31, 2025, are as follows:
| 2026 | $ | 266,256 | ||
| 2027 | 274,469 | |||
| 2028 | 282,343 | |||
| 2029 | 291,644 | |||
| 2030 | 300,639 | |||
| Future | 6,126,488 | |||
$ | 7,541,839 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 26, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Mar 31, 2023 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.