Financial Results - Wrap Technologies reported total revenues of $1.0 million for Q2 2025, a decrease from $1.6 million in Q2 2024, and $1.8 million for the six months ended June 30, 2025, compared to $3.0 million in the same period of 2024 [16][16] - The company experienced a gross profit of $487,000 for Q2 2025, down from $984,000 in Q2 2024, and a gross profit of $1.1 million for the six months ended June 30, 2025, compared to $1.8 million in the same period of 2024 [16][16] - Operating expenses were reduced by 26% in Q2 2025 to $3.3 million from $4.2 million in Q1 2025, and by 14% year-to-date to $7.9 million from $9.1 million in the same prior year period [6][6] - The net loss for Q2 2025 was $3.7 million, compared to a net loss of $385,000 in Q2 2024, and the net loss for the six months ended June 30, 2025, was $3.6 million compared to $268,000 in the same period of 2024 [16][16] Cost Reduction and Cash Flow - The company achieved a reduction in net cash used in operations by $2.2 million during the six months ended June 30, 2025, down to $5.0 million from $7.2 million in the same period in 2024 [6][6] - Cash increased by 16% to $4.2 million at June 30, 2025, up from $3.6 million at December 31, 2024 [6][6] Strategic Initiatives - Wrap Technologies launched WrapVision, an all-in-one body-worn camera solution for law enforcement, public safety, and healthcare [6][6] - The company appointed Gerald "Jerry" Ratigan as Chief Financial Officer [6] - The Supreme Court's ruling in Barnes v. Felix expanded officer liability to the pre-escalation period, aligning with Wrap's mission and positioning BolaWrap® for accelerated adoption [6][6] Product Development - The BolaWrap® 150 solution is designed to provide law enforcement with a safer choice for managing non-compliant subjects, used by over 1,000 agencies across the U.S. and in 60 countries [5][7] - Wrap Reality™ VR is a training simulator aimed at enhancing decision-making under pressure for first responders [8] - WrapVision is designed for efficiency, security, and transparency, capturing and managing digital evidence with superior video quality [9][10] Balance Sheet and Equity - As of June 30, 2025, total assets were $15.6 million, with total liabilities significantly reduced to $3.9 million from $14.9 million at the end of 2024 [14][15] - The company successfully amended the terms of certain outstanding warrants, allowing for reclassification to additional paid-in capital, which will reduce earnings volatility going forward [6][6]

Core Viewpoint - The recent Supreme Court ruling in Barnes v. Felix is expected to significantly alter the evaluation of use-of-force incidents under federal civil rights law, expanding officer accountability to include actions taken during the pre-escalation period [4][6]. Company Overview - Wrap Technologies, Inc. is a leader in innovative public safety technologies, focusing on non-lethal tools designed to enhance law enforcement effectiveness while reducing liability [13][14]. - The company's flagship product, the BolaWrap 150, is a non-lethal device that allows officers to restrain individuals from a distance, aiming to prevent escalation before it occurs [14]. Legal and Industry Context - The evolving legal landscape, influenced by new rulings and public expectations, necessitates that law enforcement agencies adopt pre-escalation tools and training to mitigate litigation risks [2][6]. - The Supreme Court's decision emphasizes the importance of exhausting de-escalation tactics before resorting to force, particularly in situations involving individuals with mental health crises [6]. Product Positioning - The BolaWrap 150 is positioned as a primary tool for "Pre-Escalation" policing, offering a safer alternative that can be deployed at the earliest stages of non-compliance [7][9]. - The company has filed for trademarks on "Pre-Escalation" and "WrapWindow," defining new phases in the use-of-force continuum that highlight the importance of early intervention [8]. Strategic Initiatives - Wrap Technologies is prepared to scale its operations and enhance its offerings, including WrapPlus, WrapTactics training, and WrapReady, to meet the demands of modern law enforcement [11]. - The company aims to lead the market by aligning its products with the evolving legal landscape and expanding access through flexible pricing and deployment strategies [11]. Training and Technology - Wrap Reality™ VR is a training simulator designed to improve decision-making under pressure, providing realistic scenarios for law enforcement officers [15]. - The Intrensic system is an advanced body-worn camera and evidence management solution that enhances operational efficiency and courtroom credibility [16].