WRAP TECHNOLOGIES, INC. Files 2023 10-K

TL;DR

WRAP files 2023 10-K, shows acquisition of Intrensic LLC in Aug 2023.

AI Summary

WRAP TECHNOLOGIES, INC. filed its 2023 10-K on August 28, 2024, reporting on its fiscal year ending December 31, 2023. The company, incorporated in Delaware, is involved in the ordnance and accessories sector. Key events mentioned include the acquisition of Intrensic LLC on August 16, 2023, which involved intangible assets like trademarks and customer relationships. The filing also references subsequent events, including actions related to the Chief Executive Officer and preferred stock.

Why It Matters

This filing provides a comprehensive overview of Wrap Technologies' financial performance and strategic activities for the 2023 fiscal year, including significant acquisitions that could impact future growth.

Risk Assessment

Risk Level: medium — The filing details a 10-K, which is a standard annual report, but the specific business activities and financial health require further analysis to determine precise risk.

Key Players & Entities

• WRAP TECHNOLOGIES, INC. (company) — Filer of the 10-K
• Intrensic LLC (company) — Acquired entity
• August 16, 2023 (date) — Date of Intrensic LLC acquisition
• December 31, 2023 (date) — Fiscal year end
• August 28, 2024 (date) — Filing date of the 10-K

FAQ

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 per share WRAP Nasdaq Capital Marke
• $16.1 billion — obal market segment expected to grow to $16.1 billion by 2027. We focus our efforts on the f
• $602 billion — simulation market is projected to reach $602 billion by 2027, according to a 2019 report by

Filing Documents

• wrap20231231_10k.htm (10-K) — 1980KB
• ex_718610.htm (EX-4.8) — 30KB
• ex_718242.htm (EX-23.1) — 3KB
• ex_718868.htm (EX-23.2) — 3KB
• ex_718241.htm (EX-31.1) — 10KB
• ex_718239.htm (EX-32.1) — 4KB
• ex_718611.htm (EX-97.1) — 40KB
• image1.jpg (GRAPHIC) — 3KB
• img01.jpg (GRAPHIC) — 62KB
• img02.jpg (GRAPHIC) — 41KB
• img03.jpg (GRAPHIC) — 51KB
• img04.jpg (GRAPHIC) — 51KB
• 0001437749-24-027942.txt ( ) — 9551KB
• wrap-20231231.xsd (EX-101.SCH) — 77KB
• wrap-20231231_def.xml (EX-101.DEF) — 608KB
• wrap-20231231_lab.xml (EX-101.LAB) — 481KB
• wrap-20231231_pre.xml (EX-101.PRE) — 646KB
• wrap-20231231_cal.xml (EX-101.CAL) — 65KB
• wrap20231231_10k_htm.xml (XML) — 1188KB

Business

Business 2 ITEM1A.

Risk Factors

Risk Factors 14 ITEM 1B. Unresolved Staff Comments 28 ITEM 1C. Cybersecurity 29 ITEM 2.

Properties

Properties 29 ITEM 3.

Legal Proceedings

Legal Proceedings 29 ITEM 4. Mine Safety Disclosures 29 PART II ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 30 ITEM 6.

Selected Financial Data

Selected Financial Data 30 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 ITEM 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 43 ITEM 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 43 ITEM 9. Changes in and Disagreement with Accountants on Accounting and Financial Disclosure 44 ITEM 9A.

Controls and Procedures

Controls and Procedures 44 ITEM 9B. Other Information 44 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 45 ITEM 11.

Executive Compensation

Executive Compensation 50 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 56 ITEM 13. Certain Relationships and Related Transactions and Director Independence 58 ITEM 14. Principal Accounting Fees and Services 59 PART IV ITEM 15. Exhibits, Financial Statement Schedules 60

Financial Statements

Financial Statements Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K may contain or incorporate by reference forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such forward-looking statements are based upon management's assumptions, expectations, projections, intentions and beliefs about future events. In some cases, predictive, future-tense or forward-looking words such as "intend," "plan," "predict," "may," "will," "project," "target," "strategy," "estimate," "anticipate," "believe," "expect," "continue," "potential," "opportunity," "forecast," "should" and similar expressions, whether in the negative or affirmative, that reflect our current views with respect to future events and operational, economic and financial performance are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. Such forward-looking statements are only predictions, and actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of risks and uncertainties, including, without limitation, the Company's ability to successfully implement training programs for the use of its products; the Company's ability to manufacture and produce its products; the Company's ability to develop sales for its new products; the acceptance of existing and future products, including the acceptance of the BolaWrap 150, Wrap Reality, our Body-Worn Camera and our Digital Evidence Management system; the risk that distributor and customer orders for future deliveries are modified, rescheduled or cancelled in the normal course of business; the availability of funding to continue to finance operations; the complexity, expense and time associated

BUSINESS

ITEM 1. BUSINESS Overview We are a global public safety technology and services company that delivers safe and effective policing solutions to law enforcement and security personnel worldwide. We are leading the movement for safer outcomes by equipping law enforcement with safer, non-painful compliance tools, and immersive training fit for modern society. We began sales of our first public safety product, the BolaWrap 100 remote restraint device, in late 2018. In the first quarter of 2022, we delivered a new generation product, the BolaWrap 150. The BolaWrap 150 is electronically deployed and is more robust, smaller, lighter and simpler to deploy than the BolaWrap 100 that has since been phased out. In late 2020 we added a new solution to our public safety technologies, our virtual reality ("VR") training platform, Wrap Reality, and in August 2023 we acquired Intrensic, LLC, a Delaware limited liability company ("Intrensic"), which added a Body-Worn Camera ("BWC") and Digital Evidence Management ("DEM") solution to our portfolio of policing solutions. Wrap Reality is now sold to law enforcement agencies for simulation training as well as corrections departments for the societal reentry scenarios. Our target market for our solutions includes approximately 900,000 full-time sworn law enforcement officers in over 18,000 federal, state, and local law enforcement agencies in the U.S. and over 12 million police officers in more than 100 countries. Additionally, we are exploring opportunities in other domestic markets, such as military and private security. Our international focus is on countries with the largest police forces. According to 360iResearch, a market research consulting firm, our non-lethal products are part of a global market segment expected to grow to $16.1 billion by 2027. We focus our efforts on the following products and services: BolaWrap Remote Restraint Device – a hand-held remote restraint device that discharges a seven and half-foot Kevlar te

View Full Filing

View this 10-K filing on SEC EDGAR