Wed, Sep 25, 12:01 PM (87 days ago)
In Q1 2024, Wrap Technologies reported a significant revenue increase of 108% year-over-year, reaching $1.5 million, driven by higher sales of the BolaWrap 150 device and improved product margins. Gross profit rose to $836,000, reflecting a gross margin of 57%. Operating expenses increased 8% to $5.0 million, primarily due to higher occupancy and stock-based compensation costs, despite reduced R&D expenses. The company recorded a net income of $117,000, a notable turnaround from a $4.0 million loss in Q1 2023. Cash and cash equivalents stood at $3.2 million, down from $4.0 million at year-end 2023, with negative working capital mainly due to warrant liabilities. The company faces uncertainties from geopolitical tensions, supply chain disruptions, and Nasdaq compliance issues following delayed filings. Future operations may be impacted by the successful deployment of products and increased demand for non-lethal policing solutions. Overall, the company is optimistic about its growth prospects, particularly in international markets, while acknowledging the challenges ahead.