WRAP TECHNOLOGIES, INC. Q4 FY2024 earnings call

• 2024 was a transformational year with a full corporate restructuring to address historical losses. The restructuring reduced monthly expenses to ~$600,000 annualized. - Believes BolaWrap is an entry point for an integrated end-to-end offering. - Leadership team's beneficial ownership increased in recent financing. - Product is differentiated, with BolaWrap used frequently by customers and reducing officer injuries. - Market demand for deescalation tools is growing due to restrictive use-of-force policies. - Invested in talent, revitalizing leadership positions with experienced individuals. - Acquired W1 Global, bringing immediate sales opportunities and a network in law enforcement. - Moving from Arizona to Southwest Virginia, with manufacturing to resume in mid-Q2.

In 2024, revenue was $4.5 million, down 27% from $6.1 million in 2023. Cost of revenue decreased 37% from $3.2 million in 2023 to $2 million in 2024, with margins increasing from 47% to over 54%. Operating losses improved 17% from $18.75 million in 2023 to $15.6 million in 2024. Net losses improved 81% from $30.2 million in 2023 to $5.9 million in 2024.

• No specific guidance given, but noted policy shifts driving interest in deescalation tools, inventory positioned to sell, and international pilots starting to show encouraging activity. - International business has pilots that started 2+ years ago and now seeing activity.

Q: What guidance can you provide for the rest of the year?

A: Won't give specific guidance but mentioned policy shifts driving interest, inventory readiness, and international pilots showing activity Q: What is the latest on R&D, new products?

A: Finished ~$25M MSRP inventory, looking at BolaWrap next-gen and integrating proven technologies for a differentiated offering Q: What is the story on Chile?

A: Active in supporting Chile's rollout, expecting progress this year with pilots starting 2 years ago now showing activity Q: Why do international deals take so long?

A: Pilots take time, new product rollout in public safety is not easy, but EXIM Bank funding and other programs are expected to accelerate international business Q: Where are you in the move to Virginia?

A: Move to Southwest Virginia underway, manufacturing line to be up and running in mid-Q2 Q: Why the W1 Global acquisition?

A: Because of the network and connectivity W1 brings, which opens new opportunities and expands addressable market Q: Are there any future acquisition plans?

A: Yes, will look for acquisitions that bring team, tech, or expand addressable market, similar to W1 acquisition Q: What are you doing in D.C.?

A: Establishing an office, forming multiple partnerships, lobbying federally and state-to-state for various public safety opportunities