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MIAMI - Wrap Technologies, Inc. (NASDAQ:WRAP), a $65.75 million market cap company that maintains a strong balance sheet with more cash than debt, announced Tuesday a new research and development initiative to adapt its BolaWrap 150 technology for counter-unmanned aircraft systems (C-UAS) applications. According to InvestingPro analysis, the company is currently trading below its Fair Value.
The company’s first concept in this initiative, called "Wrap-Merlin 1," is designed as a modular, drone-mounted payload that can entangle and neutralize hostile drones mid-flight. The system mounts up to six BolaWrap 150 cassettes onto an FPV drone platform with remote deployment capabilities. While the company maintains a healthy gross profit margin of 58.59%, InvestingPro data shows it is not yet profitable, with revenue of $3.8 million in the last twelve months.
According to the company, the system allows for multiple engagements per mission without the high costs associated with traditional missile or single-use interceptor systems. The technology is engineered for compatibility with Department of Defense Blue UAS-approved platforms and allied drone systems.
Michael Brown, Vice President of Products at Wrap, stated that Wrap-Merlin 1 is "designed to be adaptable, deployable in short order, and reloadable—offering operators a cost-effective alternative to current counter-drone solutions."
The system features a 3D-printable mounting system allowing for rapid customization and integration across various platforms. The company claims mission-specific configurations can be fielded within days.
Wrap Technologies is currently testing the system in C-UAS environments and plans to commercialize it for both U.S. Department of Defense and global defense markets.
The global counter-UAS market is projected to grow from $1.9 billion in 2023 to over $6.8 billion by 2030, according to figures cited in the company’s press release. With the stock down 32.64% over the past six months, investors seeking deeper insights can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
Jared Novick, President of Wrap, described the initiative as "an entirely new application for BolaWrap technology" that addresses "an urgent need in drone defense."
Wrap Technologies, based in Miami, currently provides non-lethal tools and technology solutions for law enforcement and security applications. The company’s announcement represents an expansion into the defense sector.
In other recent news, Wrap Technologies reported its Q1 2025 earnings, showcasing strategic growth initiatives alongside financial performance metrics. The company achieved a revenue of $765,000, while net income slightly decreased to $109,000 from $117,000 in the same quarter last year. Additionally, Wrap Technologies announced amendments to the terms of certain outstanding warrants, extending the expiration periods for Series A Warrants and 2025 Warrants. These changes, effective June 30, 2025, include adjustments to the calculation of the warrants’ underlying price per share.
In leadership updates, Gerald "Jerry" Ratigan has been appointed as the new Chief Financial Officer, bringing over two decades of financial leadership experience. Ratigan previously held senior financial roles at The Gearbox Entertainment Company, contributing to its acquisition by Take-Two Interactive. Furthermore, Wrap Technologies is positioning its BolaWrap device as a response to a recent Supreme Court ruling affecting law enforcement liability. The company emphasizes the BolaWrap 150 as a non-lethal tool that aligns with the court’s expanded analysis of use-of-force cases.
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