WRAP TECHNOLOGIES, INC. Q1 FY2025 earnings call

Scot Cohen unpacked progress in Q1, noting the business is in early stages and data is driving key insights. Data is proving the product's effectiveness, leading to conversations with cities to restart programs. Sales and marketing infrastructure is being built up. Jared Novick discussed sales efforts not just focused on police but also political leadership and international policing. The Virginia manufacturing facility move is complete, with a new building expected to be completed by year-end.

Cash increased to $6.2 million in Q1 2025, up from $3.6 million in Q1 2024. Margins improved from 56.6% in Q1 2024 to 77.8% in Q1 2025, a increase of over 21 points. Cost of revenues decreased from $640,000 in Q1 2024 to $170,000 in Q1 2025, a 73.4% decrease. Operating loss improved from negative $4.1 million in Q1 2024 to negative $3.9 million in Q1 2025, a 5.2% improvement. Q1 2025 revenue was $765,000. Net income was $109,000 in Q1 2025 compared to $117,000 in Q1 2024.

Data will drive sales and product awareness. International orders, particularly in Chile, are expected to progress. The new go-to-market strategy and training are starting to take hold, with expectations of widespread deployment of BolaWrap programs.

Sensitivity in collecting use of force data, potential policy changes, and challenges in previous pilot programs with major cities.

Q: What is Wrap doing to drive more sales and increased product awareness?

A: Scot Cohen said data is driving everything, with packaged data showing BolaWrap lowers use of force and costs, and sales and marketing infrastructure is being built up.

Q: Are there any plans to shift sales efforts towards political leadership rather than police directly?

A: Jared Novick said sales and marketing are coordinated through political motions, including federal and international levels.

Q: Does Wrap engage with community leaders as part of its outreach plan?

A: Scot Cohen said community leaders are important and part of the new go-to-market plan.

Q: How will the end of Governor Youngkin’s term and a potential new candidate impact Wrap’s outlook in Virginia?

A: Jared Novick said impact should be negligible as the issue is non-polarized.

Q: Can you provide an update on international orders, specifically, Chile and Italy?

A: Scot Cohen said Chile has seen progress with hundreds of deployments and potential for standardization, and Italy update not available but international go-to-market is being revamped.

Q: What happened with the LAPD testing of the BolaWrap a few years back?

A: Scot Cohen said a pilot did not go well but data now supports restarting programs.

Q: With all of these new hires, is Wrap building something similar to Kroll Associates?

A: Jared Novick said there is overlap in using talent but different in revenue model focusing on tech-enabled business.