Wrap Technologies(US:WRAP)2025-05-16 14:15Financial 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]