Financial Data and Key Metrics Changes - Operating expenses were reduced by 26% from Q1 to Q2 2025, declining to $3.3 million from $4.5 million [29] - Year-to-date operating expenses are down 14% compared to the same period last year, from $9.1 million to $7.9 million [29] - Cash flow improvements were noted, with net cash used in operations declining by $2.2 million for the first six months of 2025, down to $5 million compared to $7.2 million in the same period of 2024 [29] - Cash and cash equivalents increased by 16% to $4.2 million as of June 30, 2025, up from $3.6 million at December 31, 2024 [29] - Revenue for Q2 was $1 million, with year-to-date revenue at $1.8 million [30] Business Line Data and Key Metrics Changes - BolaWrap deployments are increasing across diverse law enforcement agencies, with strong usage reported in Colorado, North Carolina, and Canada [10] - Agencies in Florida are evaluating BolaWrap as a strategic replacement for traditional electronic control devices like TASERs [10] - The crisis intervention team in a major Floridian agency reports more frequent BolaWrap use than TASERs, indicating a shift towards safer tools [11] Market Data and Key Metrics Changes - Favorable federal regulatory changes, including the Supreme Court decision in Barnes v. Felix, are driving adoption and sales of BolaWrap [15][16] - Increased inquiries and strategic discussions with customers are being observed due to heightened awareness around safer alternatives to traditional use of force tools [17] Company Strategy and Development Direction - The company has completed its restructuring efforts and is now focused on a renewed go-to-market strategy that emphasizes pre-escalation [5][40] - The introduction of new subscription models, Wrap Ready and Wrap Plus, aims to address customer concerns regarding replacement costs and enhance value propositions [31][32] - The company is expanding into adjacent markets such as healthcare, transportation, and private security, leveraging its existing technology and partnerships [26][64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum building for Wrap Technologies, citing a sharp increase in purchase orders and positive customer feedback [4][40] - The company believes it is well-positioned to capitalize on the evolving regulatory landscape and increasing demand for safer policing tools [40] - Management highlighted the importance of training and partnerships in driving adoption and success in the market [25][52] Other Important Information - The company has applied for nearly $1 million in DOJ-funded grants to support pre-escalation tools and training [33] - A new counter UAS capability has been developed, targeting a growing market projected to reach $6.8 billion by 2030 [38] - The rebranding of the body-worn camera business line to WrapVision aims to address data sovereignty concerns and enhance product offerings [39] Q&A Session Summary Question: How do you plan to accelerate adoption among law enforcement agencies in the US and internationally? - Management noted that adoption is being driven by regulatory changes and direct engagement with departments, emphasizing the importance of training and connectivity with officers [42][45][50] Question: How do you plan to penetrate non-law enforcement sectors? - The company is already seeing interest from hospitals and correction facilities, with a focus on scaling operations and leveraging data to drive adoption [56][60][64] Question: Are there adjacent product lines or technology upgrades planned in the next eighteen months? - Management confirmed ongoing developments, including counter drone capabilities and enhancements to the body-worn camera line, indicating a strategic focus on expanding product offerings [67][70] Question: What is the status of the company's move to Virginia, and when do you expect production to ramp up? - The company has fully moved to Virginia and is prepared to scale production in response to increasing demand [76][78] Question: How do you see one-time sales versus subscription services as a portion of your revenues? - Management highlighted a strategic shift towards recurring subscription models, which are expected to provide more stable revenue streams compared to one-time sales [80][81]

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 in the early stages of building its business and focusing on the use of force discussions [4][5] - The BolaWrap device is being used 2 to 5 times more than other tools on officers' belts [7][13] - The company is tracking over a dozen departments that are successfully using the BolaWrap [7][13] Market Data and Key Metrics Changes - The company is seeing a shift in policies regarding the use of force, which is leading to behavior changes in law enforcement [6][12] - The company is building partnerships with community advocacy groups and political leaders to enhance product awareness and sales [30][32] Company Strategy and Development Direction - The company aims to support the BolaWrap programs and expand its sales and marketing infrastructure [17][23] - There is a focus on leveraging data to drive sales and validate the product's effectiveness [19][21] - The company is shifting its sales efforts towards political leadership and broader conversations about use of force [30][32] Management's Comments on Operating Environment and Future Outlook - Management believes that the data collected will drive future sales and product adoption [19][20] - The company is optimistic about international opportunities, particularly in Chile, and is seeing interest from other countries [56][58] - Management acknowledges past challenges but is confident that recent data will change perceptions and lead to renewed interest from major cities [65][67] Other Important Information - The company has completed its move to a new facility in Virginia and is positioned to meet demand with existing inventory [52][53] - The company is engaging with community leaders and advocacy groups to enhance outreach efforts [46][47] - The company has brought on experienced personnel from law enforcement and government to strengthen its credibility and market presence [70][72] 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 based on potential, and now has data to support its effectiveness [19][20] Question: Are there any plans to shift sales efforts towards political leadership rather than police directly? - Yes, the company is engaging in broader conversations about use of force and working with political leaders [30][32] 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 should be negligible as the issues addressed are bipartisan and the company is building lasting connections [49][51] Question: Can you provide an update on international orders, specifically Chile and Italy? - Chile is moving forward with a significant rollout, and the company is optimistic about international opportunities [56][58] Question: What happened with the LAPD testing of the BolaWrap a few years back? - Past pilot programs did not go well, but recent data has changed the conversation and management is optimistic about re-engagement [63][65] Question: With all of these new hires, is Wrap building something similar to Kroll Associates? - The company is leveraging experienced personnel to enhance its credibility and support its BolaWrap program, but with a different revenue model [70][72]

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]

Core Insights - Wrap Technologies, Inc. reported financial and operational results for Q1 2025, highlighting significant improvements in cash reserves, margins, and operating loss [1][2][6]. Financial Results - Cash increased to $6.2 million, up from $3.6 million in Q1 2024 [6]. - Margins improved by over 21 points, rising from 56.6% in Q1 2024 to 77.8% in Q1 2025, with the cost of revenue decreasing by 73.4%, from $640 thousand to $170 thousand [6]. - Q1 2025 revenue was $765 thousand, while net income was $109 thousand compared to $117 thousand in Q1 2024 [6]. Operational Highlights - The company is preparing to launch a revamped training and learning management system [6]. - Customer reports indicate increased deployments of the BolaWrap solution, particularly in departments with Crisis Intervention Teams responding to mental health crises [6]. - The company completed the acquisition of W1 Global, LLC, enhancing its capabilities in managed services and consulting [6]. - Leadership was expanded with the addition of former FBI executives to strengthen support offerings and international growth strategies [6].