Financial Data and Key Metrics Changes - Cash increased to $6.2 million from $3.6 million in Q1 2024 [3] - Margins improved over 21 points, rising from 56.6% in Q1 2024 to 77.8% in Q1 2025 [3] - Cost of revenues decreased by 73.4%, from $640,000 to $170,000 [3] - Operating loss improved by 5.2%, from negative $4.1 million in Q1 2024 to negative $3.9 million in Q1 2025 [3] - Q1 2025 revenue was $765,000, with net income of $109,000 compared to $117,000 in Q1 2024 [3] Business Line Data and Key Metrics Changes - The company is tracking over a dozen departments using the BolaWrap device significantly more than other tools on their belts [8][14] - New training programs are expected to accelerate the deployment of BolaWrap, making it a preferred choice for officers [10][18] Market Data and Key Metrics Changes - The company is seeing increased interest and usage of BolaWrap in various departments across the U.S. [14][16] - There is a growing trend of departments reporting lower usage of traditional force tools due to policy changes [42] Company Strategy and Development Direction - The company aims to build out its sales and marketing infrastructure to support the BolaWrap program [25][29] - There is a strategic shift towards engaging political leadership and community leaders to drive product awareness and sales [31][46] - The company is focusing on international opportunities, particularly in countries like Chile, where there is significant interest in the BolaWrap program [56][60] Management's Comments on Operating Environment and Future Outlook - Management believes that the data collected will drive future sales and product awareness, making it easier to engage with potential customers [20][25] - The company is optimistic about the international market, with multiple pilots underway and interest from various national police forces [58][62] - Management acknowledges past challenges but emphasizes that recent data has changed the conversation and mindset regarding the BolaWrap program [65][67] Other Important Information - The company has completed its move to a new facility in Virginia, which is expected to enhance production capabilities [52] - The company is actively engaging with community leaders and advocacy groups to strengthen its outreach efforts [46][47] Q&A Session Summary Question: What is Wrap doing to drive more sales and increased product awareness? - The company has sold over $30 million of the product without solid data, but now has data to support its effectiveness, which is expected to drive sales [20][22] Question: Are there any plans to shift sales efforts towards political leadership rather than police directly? - Yes, the company is engaging with political leaders as part of a broader strategy to address national use of force conversations [31][34] Question: Does Wrap engage with community leaders as part of its outreach plan? - The company acknowledges past efforts and plans to increase engagement with community leaders and advocacy groups [46][47] Question: How will the end of Governor Youngkin's term and a potential new candidate impact Wrap's outlook in Virginia? - The impact is expected to be negligible as the issues addressed by the company are bipartisan and relevant across political lines [49][50] Question: Can you provide an update on international orders, specifically Chile and Italy? - Chile is moving forward with a significant rollout, while updates on Italy are not available at this time [54][56] Question: What happened with the LAPD testing of the BolaWrap a few years back? - Previous pilot programs did not succeed, but recent data has changed the conversation, and the company is optimistic about re-engaging with major cities [63][65] Question: With all of these new hires, is Wrap building something similar to Kroll Associates? - The company is leveraging new talent with extensive networks to enhance its global outreach and support its BolaWrap program [69][71]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the quarterly period ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 000-55838 Wrap Technologies, Inc. Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) (State or other jurisdiction of inco ...

MIAMI, May 15, 2025 (GLOBE NEWSWIRE) -- Wrap Technologies, Inc, (NASDAQ: WRAP) (“Wrap” or, the “Company”), a global leader in innovative public safety technologies and non-lethal tools, today announced financial and operating results for the first quarter ended March 31, 2025. Q1 2025 Financial Results: Cash increased to $6.2 million, up from $3.6 million in Q1 2024Margins increased over 21 points from 56.6% in Q1 2024 to 77.8% in Q1 2025, with cost of revenue decreasing 73.4%, from $640 thousand to $170 th ...

MIAMI, May 13, 2025 (GLOBE NEWSWIRE) -- Wrap Technologies, Inc, (NASDAQ: WRAP) (“Wrap” or, the “Company”), a global leader in innovative public safety technologies and non-lethal tools, today announces it plans to hold a conference call on Friday, May 16, 2025, at 9:15 a.m. Eastern Time (6:15 a.m. Pacific Time) to discuss its financial and operational results for the three months ended March 31, 2025. The financial and operational results are expected to be issued in a press release prior to the call. Wrap ...

Unknown Executive Hello. Thank you for joining Wrap's Fourth Quarter and Full Year 2024 Earnings Call. On the call today is CEO and Chairman, Scot Cohen; and President and COO, Jared Novick. Good afternoon, everyone. At this time, I want to remind you that certain statements and assumptions in this conference call contain or are based upon forward-looking information and are being made pursuant to the safe harbor provisions of the federal securities regulations. Such forward-looking statements are subject t ...

Wrap Technologies' Strategic Reset and Outlook MIAMI, March 31, 2025 (GLOBE NEWSWIRE) -- Wrap Technologies, Inc, (NASDAQ: WRAP) ("Wrap" or, the "Company"), a global leader in innovative public safety technologies and non-lethal tools, today announced financial and operating results for the fourth quarter and full year ended December 31, 2024. Q4 2024 Financial Results: 2024 Financial Results: Recent Operational Highlights: 2024 Management Commentary Summary: 2024 was a transformational year for Wrap. The Co ...

Product Development and Innovation - The company delivered the BolaWrap 150 in Q1 2022, which is more robust, smaller, lighter, and simpler to deploy than the phased-out BolaWrap 100[24]. - The company has focused on enhancing its products through significant research and development investments, aiming to introduce new products in the future[30]. - The company has 31 issued US patents related to the BolaWrap technology and five additional US patents pending, with a total of 84 issued domestic and international patents[100]. - The company is investing substantial funds in developing and commercializing the Wrap Reality product line, which is in the early stages of launch in a competitive 3D Virtual Reality training market[124]. - The company expects the BolaWrap product to be the primary source of revenue in 2025[181]. Market Potential and Sales Strategy - The global market for non-lethal products is projected to grow to $16.1 billion by 2027, indicating significant market potential for the company's offerings[25]. - The company anticipates that international sales will represent a significant portion of future sales due to centralized purchase decision-making in large national police forces[35]. - The commercialization strategy targets over 18,000 law enforcement agencies in the US and aims to reach the 100 largest police forces internationally, representing over 12 million police officers[83]. - The company generated approximately 2% of its revenue from international sales during the year ended December 31, 2024, with expectations for a significant portion of future sales to come from international orders[140]. Training and Development - The Wrap Reality training platform includes 45 scenarios for law enforcement and corrections, enhancing training capabilities for public safety personnel[27]. - The company has invested in training programs for law enforcement agencies, which began charging for training services in Q3 2022, contributing to revenue growth[67]. - The company has launched the Wrap Reality Virtual Training platform, which now offers 38 training scenarios for law enforcement, following the acquisition of NSENA Inc. in December 2020[56]. Financial Performance and Projections - The net loss for the years ended December 31, 2024, and 2023 was $5.9 million and $30.2 million, respectively, with a decrease in net losses in 2024 primarily due to non-cash other income of approximately $9.6 million[115]. - Research and development expenditures were approximately $2.3 million in 2024, equating to 52% of revenue, compared to $3.3 million or 53% of revenue in 2023[105]. - The company has a history of operating losses and expects additional losses until sufficient revenue offsets operating costs[115]. - The company anticipates that fluctuations in operating results may adversely affect stock price and investor confidence[192]. Supply Chain and Manufacturing - The company has implemented a more automated supply chain for the BolaWrap 150 to support increased production volume[53]. - The manufacturing facility was relocated to Virginia to improve scalability and address supply chain challenges, with expectations for improvement in supplier availability by 2025[86]. - Approximately 70% of the company's supply chain is from domestic US suppliers, indicating a reliance on third-party suppliers for key components[148]. - The company has experienced supply chain disruptions and lacks long-term supply agreements, which could significantly delay production and adversely affect revenue and profitability[149]. Competition and Market Risks - The company faces competition from established firms with greater resources, which may hinder its ability to respond to market changes and develop new products[125]. - The law enforcement market is highly competitive, with risks of reduced sales and pricing pressure from larger, better-capitalized competitors[165]. - The company is materially dependent on the acceptance of its products by law enforcement agencies, with potential revenue impacts if expectations are not met[127]. - Negative publicity and legal claims related to product use could harm the company's reputation and adversely affect sales[142]. Regulatory and Compliance Challenges - The company faces strict government regulations regarding its products, classified as firearms, which could adversely affect sales and operational capabilities[155]. - The regulatory framework for AI technologies is rapidly evolving, which may affect the company's operations and compliance requirements[173]. - The EU AI Act, effective from August 2, 2024, may require additional compliance measures and increase operational costs[177]. - The company may need to adjust its systems in response to varying regulations across jurisdictions, leading to potential resource expenditure[178]. Corporate Governance and Shareholder Matters - The company currently has only 48,762 authorized and unissued shares of common stock available for capital-raising transactions, which is insufficient for significant capital raising[191]. - The company must maintain a closing bid price of at least $1.00 and stockholders' equity of $2.5 million to avoid delisting from Nasdaq[199]. - The company has never declared dividends on its common stock and does not anticipate doing so in the foreseeable future[208]. - The company is subject to potential securities litigation, which could divert management attention and incur substantial costs[196]. Acquisitions and Strategic Growth - In August 2023, the company acquired Intrensic, expanding its addressable market and enhancing its technology offerings in digital evidence management and body-worn cameras[62]. - The Intrensic platform includes features such as secure cloud storage and AI-powered functionalities, including video redaction and transcription, enhancing the efficiency of digital evidence management[64]. - The company acquired software assets in November 2022, Intrensic in August 2023, and W1 Global in February 2025, but successful integration and realization of synergies remain uncertain[151]. Operational Challenges - The company plans to expand its sales and marketing capabilities, but rapid growth may strain resources and affect operational efficiency[141]. - Cybersecurity threats pose significant risks, potentially leading to operational disruptions and increased costs[168]. - Economic conditions, including inflation and geopolitical issues, may negatively impact the company's financial condition and share price, leading to increased difficulty in obtaining debt or equity financing[150].

Core Insights - Wrap Technologies has appointed Stephen M. Renna as a Strategic Advisor to enhance international expansion and focus on exporting "Made in USA" public safety services [3][5] - Renna's extensive experience includes managing a $50 billion portfolio at the U.S. Export-Import Bank (EXIM) and facilitating over $147 billion in global contracts for U.S. firms [4][5] - The company aims to leverage U.S. government financing strategies to counter Chinese influence in emerging markets through initiatives like the China and Transformational Exports Program (CTEP) [6] Company Strategy - The appointment of Renna is part of Wrap's strategy to transform the deployment of U.S. safety technologies globally, enhancing competitiveness and creating strategic advantages for U.S.-made solutions [5] - Wrap has seen strong international interest, with potential purchases in the final stages, indicating a robust pipeline for its products [5] - The company plans to utilize financing solutions to deepen its value proposition while aligning with U.S. strategic interests [5] Product Offerings - Wrap Technologies is recognized for its innovative public safety solutions, including the BolaWrap, which provides a non-lethal method for compliance [10] - The company also offers Wrap Reality™ VR, a training simulator for first responders, and Wrap Intrensic, an advanced body-worn camera system for evidence management [11][12] - These products are designed to enhance safety and efficiency in law enforcement, with the BolaWrap being used by over 1,000 agencies across the U.S. and in 60 countries [10]

Core Viewpoint - Wrap Technologies, Inc. will hold a conference call on March 31, 2025, to discuss its financial and operational results for Q4 and the full year ended December 31, 2024 [1][2]. Company Overview - Wrap Technologies, Inc. is a global leader in public safety solutions, integrating advanced technology with skilled personnel to tackle modern public safety challenges [3]. Product Offerings - The BolaWrap® solution is a non-lethal device designed to safely restrain individuals from a distance, allowing officers to manage non-compliant situations without resorting to higher-force options. It is used by over 1,000 agencies in the U.S. and 60 countries [4]. - Wrap Reality™ VR is an immersive training simulator that enhances decision-making for first responders by providing realistic scenarios that reflect modern law enforcement challenges [5]. - The Intrensic solution is an advanced body-worn camera and evidence management system that ensures the integrity and compliance of digital evidence, streamlining operations for law enforcement [6].

Core Viewpoint - Wrap Technologies, Inc. has appointed Joseph R. Bonavolonta as Domestic Head of Managed Services, leveraging his extensive experience from the FBI to enhance the company's global law enforcement network and security capabilities [1][3]. Group 1: Leadership and Experience - Joseph R. Bonavolonta brings over 27 years of experience from the FBI, culminating as Special Agent in Charge of the Boston Field Office, where he oversaw significant criminal and national security investigations [2]. - His leadership roles included managing Joint Terrorism Task Forces and directing the New England Region's Domestic Director of National Intelligence Program [2][5]. - Prior to joining Wrap, he served as Managing Partner at a global security firm, providing strategic security solutions for multinational corporations and critical institutions [4]. Group 2: Strategic Goals and Impact - In his new role, Bonavolonta is expected to drive growth and deepen Wrap's global law enforcement network, enhancing the company's mission to provide innovative, non-lethal public safety solutions [3][6]. - His connections within the law enforcement community and international security networks are anticipated to solidify Wrap's global relationships, strengthening its impact in law enforcement and risk mitigation [6]. Group 3: Complementary Expertise - Bonavolonta's addition is expected to complement the expertise gained from Wrap's recent acquisition of W1 Global, LLC, enhancing the company's security, technology, and investigative capabilities [7]. - He joins James DeStefano, a retired FBI executive, to further bolster Wrap's ability to deliver comprehensive technology security solutions to law enforcement agencies and commercial clients [8]. Group 4: Company Overview and Solutions - Wrap Technologies, Inc. is recognized as a global leader in public safety solutions, combining advanced technology with skilled personnel to address modern public safety challenges [9]. - The company's BolaWrap solution offers a non-lethal method for compliance, used by over 1,000 agencies across the U.S. and in 60 countries, emphasizing its commitment to public safety through innovative technology [10]. - Wrap Reality™ VR serves as an immersive training simulator for first responders, enhancing decision-making under pressure with realistic scenarios [11]. - The Intrensic solution is an advanced body-worn camera and evidence management system designed for efficiency and transparency in law enforcement operations [12][13].