Wrap Technologies(WRAP) - 2025 Q3 - Quarterly Results

Revenue Growth - Total gross revenue for Q3 2025 was $2.0 million, a 241% increase from $0.6 million in Q3 2024, driven by stronger BolaWrap® product sales and managed services revenue[3] - Total revenues for the three months ended September 30, 2025, were $2,022 million, a significant increase from $593 million in the same period of 2024, representing a growth of 241%[23] - Product sales reached $1,743 million for the three months ended September 30, 2025, compared to $434 million in the same period of 2024, marking a 302% increase[23] Profitability and Loss - Operating loss improved by 24% to $2.8 million in Q3 2025, and by 13% to $9.5 million for the nine-month period, indicating progress towards profitability[9] - The net loss attributable to common stockholders for the three months ended September 30, 2025, was $2,937 million, compared to a net income of $1,673 million in the same period of 2024[23] - The change in fair value of warrant liabilities resulted in a loss of $3,158 million for the nine months ended September 30, 2025, compared to a loss of $12,517 million in the same period of 2024[25] Expenses Management - Operating expenses decreased by 6% to $3.6 million in Q3 2025, while for the nine-month period, they fell 11% to $11.5 million[7] - Operating expenses totaled $3,644 million for the three months ended September 30, 2025, slightly down from $3,861 million in the same period of 2024[23] - Research and development expenses decreased to $167 million for the three months ended September 30, 2025, from $527 million in the same period of 2024, a reduction of 68%[23] Cash and Assets - Cash and cash equivalents increased to $5.965 million as of September 30, 2025, up from $3.610 million at the end of 2024[21] - Cash and cash equivalents at the end of the period were $5,965 million, up from $4,867 million at the end of the same period in 2024[25] - Total assets rose to $18.237 million from $15.121 million at the end of 2024, reflecting growth in current assets[21] Strategic Initiatives - The company has expanded its salesforce and established a presence in Washington, D.C. to accelerate federal market expansion[8] - Wrap Technologies launched new products including the WrapTactics™ digital training platform and next-generation drone solutions, enhancing its public safety technology portfolio[12][13] - Wrap's BolaWrap® is now used by over 1,000 agencies across the U.S. and in 60 countries, reinforcing its market presence and commitment to public safety[12] Subscription Revenue - Recurring subscription sales reached $236,000, accounting for approximately 12% of total gross revenue, reflecting the transition towards a recurring revenue model[5] Shareholder Information - The weighted average common shares used to compute net loss per basic and diluted shares of common stock increased to 51,096,292 for the three months ended September 30, 2025, from 45,861,208 in the same period of 2024[23] Fundraising - The company raised $4,500 million from the issuance of Series B convertible preferred stock during the nine months ended September 30, 2025[25]