SoundThinking (SSTI) 2025 Conference September 04, 2025 02:00 PM ET Speaker4All right, thank you everyone for coming in today. Our next presenting company is SoundThinking, formerly known as ShotSpotter, which is traded on the NASDAQ under the ticker symbol SSTI. SoundThinking is a leading public safety technology company that delivers AI and data-driven solutions for law enforcement, civic leadership, and security professionals. Here to tell you more about the company is SoundThinking CEO Ralph Clark and C ...

Aligned with DoD requirements and Task Force 401, the compact cassette integrates with handheld, UAS, and UGV systems to deliver wide area coverage, multi-drone intercepts, and rapid-deploy tether technologyMIAMI, Sept. 04, 2025 (GLOBE NEWSWIRE) -- Wrap Technologies, Inc. (NASDAQ: WRAP) (the “Company” or “Wrap”), a provider of innovative public safety and pre-escalation tools, today announced the 1KC: Kinetic Anti-Drone Cassette, a next-generation counter-unmanned aerial systems (C-UAS) technology. We belie ...

Company Overview - SoundThinking, Inc. (Nasdaq: SSTI) is a leading public safety technology company that provides AI- and data-driven solutions for law enforcement, civic leadership, and security professionals [3] - The company serves over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes [3] - SoundThinking's product offerings include ShotSpotter®, CrimeTracer, CaseBuilder, ResourceRouter, SafePointe®, and PlateRanger powered by Rekor® [3] Upcoming Events - SoundThinking will present at the 2025 Annual Gateway Conference on September 4th at 11:00 a.m. Pacific Time [2] - The presentation will be available via live webcast and for replay [2] - Executives from SoundThinking will be available for one-on-one meetings with investors during the conference [2] Company Recognition - SoundThinking has been recognized as a Great Place to Work® company [3]

Core Insights - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a significant negative outlook for these companies [1][2][3] Company Summaries - **SoundThinking, Inc. (SSTI)**: A public safety technology company that provides solutions and advisory services for law enforcement. The Zacks Consensus Estimate for its current year earnings has been revised downward by 80.8% over the last 60 days [1] - **INPLAY OIL CP (IPOOF)**: Engaged in exploring, developing, and producing oil and natural gas, primarily in western Canada. The Zacks Consensus Estimate for its current year earnings has been revised downward by almost 78.3% over the last 60 days [2] - **GCT Semiconductor Holding, Inc. (GCTS)**: A fabless designer and supplier of advanced semiconductor solutions for LTE, IoT, and 5G technologies. The Zacks Consensus Estimate for its current year earnings has been revised downward by almost 62.5% over the last 60 days [3]

Core Viewpoint - Wrap Technologies, Inc. has announced a private placement of securities, raising $4.5 million through the sale of Series B Preferred Stock and accompanying warrants, aimed at enhancing its public safety technology offerings and expanding market execution [2][3]. Financing Highlights - The company executed a securities purchase agreement for 4,500 shares of Series B Preferred Stock, convertible into 3,000,000 shares of common stock at an initial price of $1.50 per share, along with warrants to purchase an additional 3,000,000 shares [2][3]. - The total gross proceeds from this private placement amount to $4.5 million, with the closing expected around August 19, 2025, subject to customary conditions [3]. Use of Proceeds - The net proceeds from the offering will be utilized for working capital and general corporate purposes [3]. - The financing is expected to advance Wrap's Wrap-Merlin and Wrap-PANDA programs, enhancing counter-drone capabilities and supporting law enforcement growth initiatives [8]. Product and Market Strategy - Wrap's BolaWrap® 150 solution is designed for pre-escalation in law enforcement, providing a non-lethal option to manage non-compliant subjects [7][9]. - The company aims to leverage its existing technology base to build a scalable federal government business, particularly in counter-UAS demand [8]. - The financing will also support the expansion of WrapVision, a body-worn camera system, addressing cost pain points for law enforcement agencies and opening access to adjacent markets like healthcare [8][12].

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 - Wrap Technologies, Inc. has launched Project PAN-DA, a handheld counter-drone system derived from its BolaWrap® 150 platform, aimed at addressing the growing global counter-unmanned aircraft systems (C-UAS) market, projected to reach $6.8 billion by 2030 [1][6]. Company Overview - Wrap Technologies is a leader in innovative public safety technology, focusing on non-lethal tools and solutions for law enforcement and public safety organizations [14]. - The company has a proven track record with its BolaWrap® 150 device, which is used by over 1,000 law enforcement agencies worldwide [15]. Product Development - Project PAN-DA is designed to engage and disable small unmanned aerial systems (sUAS) at close range, providing a cost-effective and reusable alternative to traditional missile interceptors and electronic jamming systems [3][4]. - The system utilizes Wrap's patented tether-and-anchor technology, allowing for multiple engagements per unit, enhancing operational efficiency [3][4]. Market Context - The global counter-drone market is expected to grow from $1.9 billion in 2023 to over $6.8 billion by 2030, driven by the increasing use of small UAS in criminal and military activities [6]. - PAN-DA is positioned as a last-line kinetic defense option that complements existing detection and electronic countermeasure systems [6]. Research and Development - Following the successful proof of concept for Phase One, Wrap's engineering teams will focus on enhancing the system's range, area-of-effect, and cost-effectiveness to adapt to evolving drone threats [8].

Financial Data and Key Metrics Changes - The company's Q2 2025 revenues were $25.9 million, representing a 4% decrease from $27 million in Q2 2024, which included a $2.8 million revenue loss from the non-renewal of the Chicago contract [16][17] - Gross profit for Q2 2025 was $13.8 million, or 53% of revenue, compared to $16.1 million, or 60% of revenue in the prior year [17] - Adjusted EBITDA was $3.4 million in Q2 2025, down from $5.1 million in Q2 2024, reflecting delayed contracts and increased costs [17][18] - GAAP net loss was approximately $3.1 million, or a loss of $0.25 per share, compared to a net loss of $800,000, or a loss of $0.06 per share in the prior year [20] Business Line Data and Key Metrics Changes - The company launched ShotSpotter Live in four new cities and expanded in four additional cities during Q2 2025, contributing to a diversified pipeline of over $37 million for the remainder of 2025 [5][6] - The SafePoint pipeline is healthy, with a focus on healthcare and casino verticals, particularly in California due to the AB 2,975 initiative [25] - The integration of the PlateRanger LPR solution with CrimeTracer enhances investigative capabilities, allowing for quicker access to actionable intelligence [9][10] Market Data and Key Metrics Changes - The company is expanding its footprint in South America, with notable deployments in Niteroi, Brazil, and Montevideo, indicating growth opportunities in Latin America [26][27] - The healthcare vertical is expected to benefit from California's new legislation mandating weapon screening capabilities at state hospitals [11] Company Strategy and Development Direction - The company is focused on transforming into a broader public safety technology firm, emphasizing sustainable growth and operational execution [4] - Strategic investments in technology, innovation, and market positioning are yielding positive results, with plans to deepen penetration in existing customer accounts and expand into mid-size municipalities [14][15] - The company is also exploring new opportunities in critical infrastructure protection, particularly with a sniper detection solution aimed at utility companies and financial institutions [6][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver lifesaving alerts and critical crime intelligence, positioning itself well despite potential political changes [12] - The company reaffirmed its full-year revenue guidance of $111 million to $113 million and adjusted EBITDA margin guidance of 20% to 22% [23] - The annual recurring revenue (ARR) is expected to increase from $95.6 million in 2025 to approximately $110 million in 2026, despite the loss of revenue from the Chicago contract [23] Other Important Information - The company ended Q2 2025 with $9 million in cash and cash equivalents, down from $11.7 million at the end of Q1 2025, but cash balance has since increased to over $16 million [20][21] - The company repurchased 31,570 shares at an average price of $14.84, totaling approximately $1.5 million [21] Q&A Session Summary Question: Can you talk about the SafePoint pipeline? - The SafePoint pipeline continues to grow, focusing on healthcare and casino verticals, with significant opportunities in California [25] Question: How is the international market developing? - Recent developments in South America, particularly in Brazil, are promising, with opportunities for expansion in Mexico and South Africa [26][27] Question: What contributed to the increase in cash balance? - The increase is primarily due to timing in receivable collections, indicating strong cash flow generation [28] Question: How much visibility is there into the second half revenue guidance? - The sales team has committed to contracts that should help meet guidance, but timing of large contracts may affect results [30] Question: Can you provide details on the Chicago RFP? - The company is on a shortlist for the Chicago RFP, with a live demonstration scheduled for September, indicating progress in the selection process [54] Question: What are the details regarding the NYPD contract? - The NYPD contract involves a $400,000 expense per quarter, with a revenue of about $250,000 per quarter, leading to overall savings [56] Question: When can the company expect revenue from the SafePoint implementation? - Revenue from the SafePoint implementation is included in the guidance, and the company is working to expedite deployment [48][50]

Financial Performance - Company reported second quarter 2025 revenues of $25.9 million, a decrease of 4% year-over-year from $27.0 million in the same quarter of 2024, primarily due to the non-renewal of a contract with the City of Chicago [5][6] - Gross profit for the second quarter of 2025 was $13.8 million, representing 53% of revenues, down from $16.1 million (60% of revenues) in the same period of 2024 [6] - GAAP net loss for the second quarter of 2025 totaled $3.1 million, compared to a net loss of $0.8 million for the same quarter of 2024 [9] - Adjusted EBITDA for the second quarter of 2025 was $3.4 million (13% of revenues), down from $5.1 million (19% of revenues) in the same period last year [10] Revenue Guidance and Outlook - Company reaffirmed its full-year 2025 revenue guidance range of $111.0 million to $113.0 million, indicating a 10% year-over-year growth at the midpoint [1][13] - The expectation for Annual Recurring Revenue (ARR) is to increase from $95.6 million at the beginning of 2025 to approximately $110.0 million at the beginning of 2026 [1][13] - Management expressed confidence in achieving long-term financial targets of 70% gross margin and 40% Adjusted EBITDA margin while growing topline revenue at 15% per year [4][14] Strategic Initiatives - Company is focusing on scaling solutions and managing expenses to build a resilient business, particularly through investments in AI capabilities to enhance product intelligence and automate internal processes [4] - The company went live with ShotSpotter in four new cities and one new university, while also expanding with four existing customers [6] - Management emphasized the importance of client retention and expansion into new verticals as part of their strategy to maintain leadership in the public safety and security technology market [4] Shareholder Actions - Company repurchased 31,570 shares of common stock for approximately $0.5 million as part of an existing share repurchase program [12]

Core Insights - Wrap Technologies, Inc. has launched WrapVision, a next-generation body-worn camera platform designed for law enforcement, public safety, and healthcare professionals, emphasizing compliance with the Trade Agreements Act and North American manufacturing [1][2][13] Product Features - WrapVision features a 6000 mAh battery providing up to 12 hours of operation, a 180° x 180° distortion-free lens, an 8MP high-resolution sensor, and integrated LTE, Wi-Fi, Bluetooth, and VPN for secure live streaming [4] - The platform is compatible with major video management systems like Genetec and Milestone, promoting flexibility and avoiding proprietary ecosystem lock-in [3][4] Strategic Positioning - The launch of WrapVision aligns with the increasing focus on officer safety, community trust, and data security, positioning the company as a reliable partner for U.S. agencies [2][5] - The product aims to address a growing, regulation-driven market segment with high demand for trusted, domestic solutions, supporting Wrap's multi-channel, subscription-driven revenue strategy [8] Data Governance and Security - WrapVision's North American manufacturing and TAA compliance are critical for safeguarding mission-critical data, ensuring adherence to stringent federal sourcing standards [6] - The company offers secure North American exclusive data centers to protect sensitive public safety video and evidence from unauthorized access and cyber threats [7] Cost Efficiency - WrapVision is competitively priced, expected to deliver cost savings over other body-worn camera platforms, and is ready for immediate deployment [8]