Durable Goods (Jun F) -9.4% vs 9.3% Prior, Ex-Trans 0.2% vs 0.2%
Wrap Technologies Inc. (WRAP) reported its Q1 2025 earnings, revealing a blend of strategic growth initiatives and financial improvements. The company, with a market capitalization of $77.5 million, saw its stock increase 0.65%, though year-to-date returns remain down 27.8%. Key financial metrics included a revenue of $765,000 and a slight dip in net income to $109,000, down from $117,000 in the same quarter last year. According to InvestingPro analysis, the stock appears overvalued at current levels, with several key metrics warranting investor attention.
Key Takeaways
- Cash reserves increased to $6.2 million.
- Margins improved significantly to 77.8%.
- Cost of revenues decreased by 73.4%.
- International expansion plans, particularly in Chile, are underway.
- Challenges in LAPD testing highlighted during the call.
Company Performance
Wrap Technologies demonstrated resilience with improved margins and a strategic focus on international expansion. Despite a minor drop in net income, the company is positioning itself as a leader in law enforcement technology, leveraging its BolaWrap device. The move to a new manufacturing facility in Virginia and restructuring efforts signal a commitment to operational efficiency.
Financial Highlights
- Revenue: $765,000, reflecting ongoing product demand.
- Margins: Increased to 77.8% from 56.6% in the previous year.
- Cash Reserves: Grew to $6.2 million from $3.6 million.
- Operating Loss: Improved by 5.2% to negative $3.9 million.
Outlook & Guidance
Wrap Technologies is focused on expanding its international footprint, with Chile as a flagship market. The company anticipates full deployment with the Chilean Carabineros and is exploring financing solutions through the Ex-Im Bank to facilitate international sales. A data-driven sales approach and engagement with political and community leaders are central to its strategy.
Executive Commentary
CEO Scott Cohen emphasized the importance of data in driving future decisions, stating, "Data is gonna drive decisions going forward." President Jared Novick reinforced the company’s commitment to integrity, saying, "We’re not in the business of selling snake oil." Cohen also highlighted the vast international opportunities, remarking, "The international opportunities here are absolutely massive."
Risks and Challenges
- Continued operating losses, despite improvements.
- Potential challenges in international market penetration.
- Need for successful engagement with political and community leaders.
- Competition in the law enforcement technology sector.
- Dependence on successful product adoption and user training.
Q&A
During the earnings call, analysts inquired about the challenges faced in LAPD testing and the company’s strategy for engaging political leadership. Executives detailed their approach to international expansion and clarified their plans to build investigative capabilities, underscoring the company’s proactive stance in addressing these challenges.
Full transcript - Wrap Technologies Inc (WRAP) Q1 2025:
Lou, Moderator/Operator, Wrap: Good morning everyone. Thank you for joining Wrap’s Q1 twenty twenty five call. In attendance this morning is Scott Cohen, Chief Executive Officer and Jared Novick, President and Chief Operating Officer. At this time, I want to remind you that certain statements and assumptions in this conference call contain or are based upon forward looking information and are being made pursuant to the safe harbor provisions of the federal securities regulations. Such forward looking statements are subject to numerous assumptions, uncertainties and known or unknown risks, which could cause actual results to differ materially from those anticipated.
These factors are more fully discussed in the company’s filings with the Securities and Exchange Commission. The forward looking statements included in this conference call are only made as of the date of this call. And the company is not obligated to public publicly update or revise them. Statements are made during this call do not con do not constitute an offer to sell or solicitation of any offer to buy any securities. Securities will not be offered only by means of a registration statement and prospectus, which can be found at www.sec.gov.
Unless otherwise stated, all reported results discussed in this call compare the first quarter twenty twenty five earnings. Wrap’s Q1 twenty twenty five financial results are as follows: Cash increased to $6,200,000 up from $3,600,000 in Q1 twenty twenty four. Margins increased over 21 points, from 56.6% in Q1 twenty twenty four to 77.8% in Q1 twenty twenty five, with cost of revenues decreasing 73.4% from $640,000 to $170,000 respectively. Operating loss improved 5.2% from negative $4,100,000 in Q1 twenty twenty four to negative $3,900,000 in Q1 twenty twenty five. Q1 ’20 ’20 ’5 revenue was $765,000 Net income was $109,000 in Q1 twenty twenty five as compared to $117,000 in Q1 twenty twenty four.
I will now hand it over to Scott.
Scott Cohen, Chief Executive Officer, Wrap: Thanks, Lou. Good morning, everybody. I’m gonna unpack some of the progress from the first quarter along with some of recent insights. We are in the earliest stages of building out our business along with leading a very important discussion around use of force. In this country, 20,000 people a day are arrested, and 20% of the time, they resist.
That’s 4,000 people a day resist arrest. And ninety percent of the time, it goes hands on. Why? Because they’re unarmed, they’re not an immediate threat, or they’re having a mental episode. And ten years ago, it was very different.
Body cams weren’t on the scene. Policies haven’t shifted the way they’re shifting now. And as a result of these policies dramatically shifting, you’re seeing big behavior change in the in the in the show of force and the use of force around guns, batons, pepper sprays, and tasers. 50% of the time, officers go hands on, they’re getting hurt. And it’s causing very large bills to society.
Injury, workers’ comp, and lawsuits are costing this country billions of dollars a year. And up until now, there’s been no solve for this problem. After six months of deep conversations with customers, departments, politicians, and various individuals to get data from our program, we finally have enough where I’m going to present some some some facts that to me have been, the driving force of what we’re doing here. And, to me, the opportunity is to support what we’re already seeing, and I think we’ve got a path to do that. But we’re tracking oh, I’m tracking over a dozen departments that are using the Bow Wrap two to three to even five times more than anything on their belt today.
And this is without solid support from our company. And we know this was a new business. It was a start up six years ago. It’s a new device. I get it.
Lots of turnover, lots of change. That’s fine. But now we are absolutely clear. The data is in. The programs are thriving when we’re connected, and we’re gonna lean into that and support them in ways that just haven’t been supported in the past.
This new training we’re about to introduce should accelerate deployment, making our BOLWrap programs an obvious choice anytime an officer’s going hands on, which is 4,000 times a day in this country. We’re proving that BoRap makes an officer safer. What’s driving all this is data, finally. It’s not easy to get this data. We’ve been at this seven years.
We thought the first ten body cams this was six years ago. We thought just 10 body cams would put us on the map and everybody, the rest of the country would follow suit. And the number went up to a hundred, and then it went dark. Why? Come to find out, use of force is a sensitive topic.
Even the FBI struggles with collecting it. It they say 60% of departments around the country report on it. But what makes it even tougher is 50% of the time our customers 50% of the customers our customers that have BolaWraps don’t even view it as a reportable use of force. So if they’re not reporting it to their constituents, how are we supposed to know? And so it was getting connected with these customers in very difficult and sensitive conversations.
Remember, these uses, of course, are active investigations or evidence. And if you say the wrong thing or somebody gets a hold of data, this could be reported up, and all of a sudden, you could have a federal monitor on you and consent decrees kick in, and then you’ve lost control of your agency. So no chief, wants this to happen. This is the big fear. But now it’s time to step into the light and execute.
We’re seeing the data. We’re pressing policy at the state and federal levels, partnerships with community communities and advocacy groups. We built out sales and marketing infrastructure in anticipation for a a real sweep in this country to get this product out there because we see it’s working, and it’s working in dozens of accounts to levels that were a big surprise for us. And we know that that can we know that that’s just a starting point, and that’s gonna accelerate. What that when that does, it’s gonna make this device clearly the most actively used device on the belt today.
And we’re already seeing it in a dozen or so accounts that we’ve been able to have contact with. And it’s not just by a little bit. It’s by a lot. And the light needs to be shined on this for everybody to see because it it it’s not gonna go unnoticed. This is a very sensitive topic.
We’ve gotta solve for something that’s causing this country a lot of pain and a lot of money. We have the only hands on tool in the marketplace with more usage than any other tool on the belt with connected customers. You made the right bet with this device. And with the recent field data field data received, we are clear this device will be a standard piece of equipment on every officer’s belt. The data is coming from the customers.
The data is telling us everything we need to know. We’re gonna lean into it. We’re gonna make sure that this data is clear. We’re gonna continue to get more data. And we believe now that we have the right people and the right strategy to make these BolaWrap programs thrive throughout the country and throughout the world.
And, yes, all the things that we talked about and introduced on our end to end solution, that’s all coming. But first, we need to support the BoRap because it’s working. It’s working better than anybody knows, including us. And this is great news. It’s inspiring, and it’s gonna drive us to build out this business and create real value for our shareholders.
And I think put a place in public safety make a real place in public safety for the bullwrap. So with that, thank you all for for joining. We’re gonna take it into q and a. Jared’s gonna join me for this. So, Lou, I know we’ve, cast it out for questions, and I believe you have a eight or nine of them to to hit us with.
Lou, Moderator/Operator, Wrap: Yes. Okay. Here’s the first question. What is rep doing to drive more sales and increased product awareness?
Scott Cohen, Chief Executive Officer, Wrap: Well, I’ll start with this one. I find it to be pretty amazing. We’ve sold close to 30 over $30,000,000 of the product without real data. The data was really hard to get, but we sold that based on what this product could do and what we thought it could do. But now we actually have the data to prove it, which is new.
So we’re collecting that. And already, the conversations that we’ve had with some major cities, some actually some departments that can the program, major cities that can the program. In just recent conversation with them on this newly acquired information information and data, already, they’re looking to restart these programs. So I believe data’s gonna drive everything. So let’s just start with the data’s gonna get packaged in a way for everybody to see what we’re seeing.
It will make it obvious that BolaWrap lowers the use of force bills both on workers’ comp, officer injury, subject injury, and lawsuits. And it’s crystal clear with dozens of accounts, and there’s no reason why that shouldn’t be widespread throughout this country. There’s nothing those accounts are doing that differently that these other accounts can’t adapt to. And when we tell the cut when I’ve been fortunate enough to get in front of some major cities in the last month or so, and the conversation’s the same. Back it up, and let’s get back into a conversation because we missed it.
So look for us. We’ve we’ve we’ve tightened up. Now we’ve gone to a, we’re building up our sales and marketing infrastructure. I said that on the phone. Just said this on the call.
And you’re gonna see a big focus now starting with on sales and marketing because finally, we’ve got the data, which is our narrative. Data is gonna drive decisions going forward. It’s something that politicians will understand, city leaders will understand, and and departments will understand. Jared, you wanna add to that? It’s an important
Jared Novick, President and Chief Operating Officer, Wrap: It it is important. And good morning, everybody. Jared Novick. Look. We’re not in the business of selling snake oil.
That’s how a lot of these conversations start when I talk about it. We we have responsibility to shareholders and to our communities. And what we start with is when we have these conversations is what’s the story? Is it working? And when I talk to departments from Colorado to Texas to California, New Jersey, or counts in Virginia, when you really talk to them, they themselves are surprised that it is working more and more frequently than they’re even reporting or writing down.
That’s the hard work we’ve done. To make a compelling sales pitch, it has to be validated. And we have validated through trusted conversations because as Scott’s mentioned, that data is hard to get. The data doesn’t self report. Should it report in the future?
Absolutely. That’s in the r and d effort. That’s in our product road map. But right now, we have what we have, which are trusted conversations. So before we go out there and repeat the same mistakes this company has had, unfortunately, over the last several years is to have a real conversation with real data.
Now that we have that in a validated value proposition with the product and the technology that we have to support it, we’re ready to put that collateral and scale it broadly. The first step is to have the right message. The second one for us is not to sell things onesie twosie or an inefficient and costly way. We have to find an efficient, scalable way to sell, sell domestically and sell internationally. So what we focused is we need a scalable and repeatable sales motion.
That’s where we focused our efforts in q one. I think we have in our recent earnings report that we’ve signed something significant that we’re looking forward to announcing. In that way, we can address things broadly. So I feel very good about a validated message, about a validated product, and trust that we are reestablishing because our brand matters and it means something. So that is a coordinated sales, marketing, and product message.
Our our our priority is go to market. It’s time. And as Scott’s saying, the time is now.
Lou, Moderator/Operator, Wrap: Great. On to question two. Are there any plans to shift sales efforts towards political leadership rather than police directly?
Jared Novick, President and Chief Operating Officer, Wrap: Lou, if you don’t mind, I’ll jump on that one real quickly. I’m actually calling from Washington DC today. The answer is yes and absolutely. You know, what a lot of these things you hear is about the use of force and use of force continuum. We’re on a national use of force conversation.
And so we all know if we look at that, there are things from verbal to hands on all the way up to lethal. And what we’re finding ourselves is that a much larger and broader conversation than just our individual product. We’re finding ourselves in conversations about consent decrees, which is an an interesting topic and a national conversation, quite frankly, that I think will actually start servicing. It’s my instinct that this will happen in short order. What are major cities?
What are we doing in America when it comes to addressing the critical needs that we see growing out in our communities? So we find ourselves not just with chiefs of police, they matter, they are a key stakeholder, but we’re also working at a federal level, at a political level, because it takes a team, a coordinated effort with the right leaders, both domestically. We’re even able to, with their international interest, facilitate rooms with international policing as well. This is a global issue, and I know everyone feels that. They see the potential.
This isn’t is a a huge opportunity. It’s on our responsibilities collectively to lead that conversation. So our sales and marketing is not just focused on the individual buyer, which may be a police chief or it may be a city risk manager. It’s actually, you know, coordinated through political motions. It’s time we do that.
That’s part of our federal strategy. And more recently, as everyone knows, we’ve actually able to scale through w one and and their talented personnel, industry, and government contacts that are in play today that are valuable for our cause. And so we are you can have confidence not falling asleep at the wheel here. We recognize that it’s a critical element to our planning, and we’re executing on that.
Scott Cohen, Chief Executive Officer, Wrap: I’m gonna add one thing to that. The same data that we’re now reintroducing to chiefs and, trainers and lieutenants and everybody in our ecosystem that, we’re positioning this product with, that the the data, is even a bigger sell to the politicians. And we’re seeing, when we’re flashing and and presenting now, even though it’s not as complete a set as I’d like, it’s enough. And we’re seeing the reactions from the politicians. So it’s it’s it’s it’s kind of mind boggling that we’re able to position this before the way we did, and like I said, sell as much as we’ve sold.
But now, it’s gonna it should be a lot easier because we’ve got backup finally. It’s not just the the the the the body cams were great, and it showed what it was able to do, but it wasn’t enough. So now we’re able to quantify it in ways that we haven’t been before, and I think this is the unlock. We’re at that moment where we just should be unlocking the whole ecosystem.
Jared Novick, President and Chief Operating Officer, Wrap: Look. I’ll give I’ll give I’ll give a concrete example of that just because I I I think the numbers matter. I’ll give you an example of a of a an example in Colorado. Again, because the sensitivity of data, I don’t wanna do attribution to the department level. But in the twelve month period, in their crisis response teams or CIT teams, they have BolaWraps on the order about 50.
In a twelve month period, they’ve used it about 28 times, which is more than twice a month. When we ask them in confidence, how are other uses of force happening that’s on the belt? It far exceeds that. And I would say that electronic weapons are below that number even though there are more electronic weapons on the belt. It’s extremely validating to know that you have empirical data measured.
Even when BolaWrap has a small number of deployments, the frequency of use is up. And even with a water deployment of other things than the traditional belt, that’s less frequently used. So we this is validation that we do have a place on the use of force continuum. We have to give someone an opportunity to have an advantage to do something responsibly for their safety, for their, for the community’s safety, to to answer this right now. So I just want I think it drives home the point, and this is the same thing that politicians wanna know, are where is it working, what is the data, and it’s a very positive message.
Scott Cohen, Chief Executive Officer, Wrap: I’m gonna just I’m sorry. I’m gonna rip just on that. Our one of our largest majors one of a major city of ours and largest customer spoken to the spoke spoke to six months ago, we had a meeting with the chief and his command staff, and we asked him what’s successful what a successful bullwrap program looks like to him. And his response, he thought about it for a second. He was a little off guard by the question.
He hadn’t thought about it before, but then he reflected and said usage. Showed me that my show this needs to be go to. I wanna see this be the most actively employed belt the device on the belt. And so we took that we took that back with us, and that and we started focusing on really got hammering down on the data and really looking at that. And, this is what’s driving us.
And and in his department right now, the usage is trending up. And the, as a result of a new policy that into place about eight months ago, the usage of the other devices this is a major city here, have dropped by close to 60 almost 70%. Okay? So here we have a major city that granted our program hasn’t taken off. It’s decent.
We’ve just retrained them, but policy went into place. It took the other devices, taser, pepper spray, baton, and gun, and dropped it by 65%. And you know what happened? It’s now hands on, and they are going straight. And and and it’s become a hands on environment, and that’s where we fit in.
Usage is going down on the belt because of policies becoming harder and harder to use what’s on the belt today. And quite frankly, this is kinda happening organically for us. Some of the policies we didn’t force these policies. They’re just it’s it’s it’s happening. And we’re seeing it change behavior, and we’re and and I believe that’s part of the tailwinds that’s driving deployments.
And we now have a way to better support it. We’re armed with our mistakes and some of our successes. We’re putting it together now and presenting a a new way to go to market and a new way to train that’s starting to take hold. Great. Lou, let’s go to the next one.
Lou, Moderator/Operator, Wrap: Next question. Does RAP engage with community leaders as part of its outreach plan?
Scott Cohen, Chief Executive Officer, Wrap: No. I’ll take that. In the past, we have, and it’s been and it has been very effective. And and and there’s still, there’s still efforts going on. To to but to be honest, not not not to the extent it should, This this will be part and is part of our new go to market that will be unpacked, you know, throughout this year.
But but community leaders are extremely important, and it’s advocacy groups, advocacy groups as well. And, and we’re getting buy when we reach out to these groups, the buy in is it comes really, really easily. And I again, I hate to keep beating this horse, but the data is just supporting our thesis here. So there’s gonna be there’s gonna be alliances and partnerships. And, yeah, community plays a big role in all of this, and we need to lean into that.
We know it. So look for that activity to start picking up.
Lou, Moderator/Operator, Wrap: Got it. Next question. How will the end of governor Youngkin’s term and a potential new candidate impact Wrap’s outlook in Virginia?
Jared Novick, President and Chief Operating Officer, Wrap: Hey, Scott. I’ll I’ll take that one. Look. I think the impact should be negligible. This is an an the mental behavioral emergencies across America and particularly in Virginia, that applies to both sides of the aisle.
Neither side wants to have a bad answer to what are we doing with communities in need, kids with autism that are going through an issue. I mean, this is a publicly visible issue. Violence is not the answer on some of these in many of these cases. And so the connections we’re making now and the momentum that we’re building will persevere through political changes left or right. Granted in America, there are a lot of topics that are polarized and the pendulum swings.
This is not one of them. And so we’re building lasting and trusted connections, preserving the momentum we have now. And in our efforts, both in Virginia and federally, the the the work we’re doing along the political leaders are attractive right down the middle issues. And so I feel that when we do the right job and the right messaging, that the impact should absolutely be negligible. Thank
Lou, Moderator/Operator, Wrap: you. Jared, to that end, in Virginia, what is the current status of the Virginia manufacturing facility?
Jared Novick, President and Chief Operating Officer, Wrap: I’m happy to say that the move is now complete. All restructuring costs associated with that are now done. It’s a tremendous achievement. It’s led with outstanding team members in our
Scott Cohen, Chief Executive Officer, Wrap: in our
Jared Novick, President and Chief Operating Officer, Wrap: organization. We are now completely out of Arizona. The facility in Virginia is a temporary facility as our new building that was coordinated through governor Youngkin’s office in Virginia Economic Development is underway and expected to be completed at end of the year. Given our inventory levels, which is a positive thing, we’re able to meet demand as we see right now. Should we need to develop more BolaWraps, we have already in our inventory the raw materials to convert them to finished goods for both BolaWrap one fifty and the cassettes.
So we’re in an outstanding position. We’ve moved quickly. We were now positioned and aligned fully in Virginia. We can meet demand with existing inventory. We have new people and created jobs in North in Southern Southwest Virginia.
And so Lou and Scott and and I’m happy to report that that’s all complete.
Lou, Moderator/Operator, Wrap: Great. Thank you. Next question. Can you provide an update on international orders, specifically Chile and Italy?
Scott Cohen, Chief Executive Officer, Wrap: I’ll take that. Italy, I don’t have an update on, but let me just shed some light on Chile since it’s, it’s a big event for our company and a lot of peep lot of eyes on it, obviously. So Chili started, I think, the whole three, maybe even four years ago. And it started with a a I think we got the first devices to them less than it was probably probably two years ago. They started off with 500.
They doubled it, and then they went to 2,000. And what moved it forward was the the results that they had. They they’ve we’ve we’ve our understanding is they’ve had hundreds of deployments, which throw them to a decision that they wanted to, standardize on this equipment. This is and this became and then they they made that public. We saw it, we saw that they passed a budget, a line item for it.
We are in regular contact with with with with with with our with our team there, and, we’re being told it’s a this year event. Every indication is it’s a this year event. It’s a it’s a multiyear rollout, and it’s actually they’re indicating it’s much bigger than what we what they told us, which was it’s gonna be full deployment around the Carbonaros, which is 33,000 officers, and they’ve made that public. So, we’re receiving the information like you’re receiving the information. They’re making it public, but, every indication is it’s a go.
And we’re we’re anticipating it. We’ve we’ve all been anticipating it. But what’s interesting about it is, we’ve had a lot of other countries indicate and and let us know that they’re watching and they’re talking to the Chilean police, about our program. But we’re also seeing we’re seeing acceleration in other, of other other countries. So I’m I’m I’m very optimistic on Chile.
It’s it’s obviously big for us, but guess what? There’s a lot more countries out there, and we’ve got probably 10 plus pilots going in different stages with national police forces. And, you know, of course, we hear this through our distribution, but I’m seeing programs advance, and I really don’t think we have a there’s no hands on device out there that competes with this. So I feel like, again, as this data starts to make its way into the world and shows the usage here in The United States, I think it’s just gonna accelerate everything that we’re doing, around the globe. And the international opportunities here are absolutely massive, as you guys know.
You can see what’s going on with Chile. They’ve made it public, but I don’t see I really don’t see how I think this is gonna be right for every national police force around the world. That that’s my feeling on it. I feel like this is a blockbuster product. We’re seeing the behavioral change right now in The United States with the data we’re looking at, and it’s not just to this country.
It’s gonna expand overseas. So I feel like the overseas opportunity is just exciting as the domestic opportunity on the bull run. Jared, you wanna comment on that?
Jared Novick, President and Chief Operating Officer, Wrap: Well, yeah, I’ll just also add, you know, what we when I look at Chile, which is a tremendous opportunity in itself, I look at it, how can we replicate this elsewhere? And part of that strategy is an accomplishment we had in the first quarter, which is bringing on the former chief banking officer at Ex I’m Bank, the United States Export and Import Bank, as a adviser to our company. You know, Ex I’m provides financing solutions for devices or technologies that are mainly assembled or manufactured in America. We are all proud to say that this is Polarap is an assembled in The USA product. It is financeable through Exum options.
And so while Chile is an example where they may do it themselves, the the international interest and signal that that represents is it affords us the opportunity to use it as a model, as an exemplar to other countries who also have national policing concerns. You know, recently, Scott and I were also in DC being invited to the embassies of many countries, and they’re having questions with them and when we’re sitting down with ambassadors and to and then they’re asking because Chile is is an example that’s in the in the public view. It’s in it’s in the in the papers. What are you doing? How can we have a same and similar program?
And, you know, each country is unique. The process is a little different, but that’s our responsibility. In response to that, we in building out our sales and marketing engine as a repeatable motion, we’re looking at not just a domestic and repeatable, scalable domestic model. We have ways to now revamp our international go to market. Look.
We’re all in a reputable, publicly traded company, and we need reputable ways to go in effectively with distributors. We’re going to do that. And so Chile is a wonderful opportunity by itself. Other countries are heating up as well. We do have the inventory to address the need, and and the excellent accomplishment this quarter only increases the likelihood of having a US bank backed financial solution to move into these countries.
Lou, Moderator/Operator, Wrap: Great. Thank you. Next question. What happened with the LAPD testing of the BolaWrap a few years back?
Scott Cohen, Chief Executive Officer, Wrap: I’ll take it. Several years of a pilot did not go well. You can blame point fingers, politics, attrition in our company, leadership training, the weather, there there’s a ton of excuses, but the bottom line is it just didn’t go off the right way. I I, I’ve got my opinion on it. But, I will tell you that, not unlike any other major city, there’s been several well, let’s put it this way.
There’s been several mid high profile major cities that had Bollarat programs going on that that can their programs did not move forward. This was in the paper. It was it was talked about. That is in the media. And it, it looked like a pretty it looked pretty dismal to see a a major city cancel or or not move forward.
But just recently, when sharing the data that, we’re recently getting, it’s totally changed. It’s changed the conversation. It’s changed the mindset. It’s put us in a different discussion. And I would I would not be surprised, if LA or any major city that that’s had the bullwrap program that’s thinking about a part that or we will we per we will be in front of soon with these results have a very hard time believing they’re just not going to move forward with us because the data is speaking for itself.
Granted, it’s not gonna be easy. Nothing’s easy. But it’s black and white, and we’re seeing the reaction on the other side. It’s really good. It’s real.
The poll rep’s working. It’s working really, really well, and we’re seeing adoption that we believe and we think we have now better methods and training and a way to deliver it that’s gonna take what we’re already doing, which quite frankly hasn’t been a straight shot, but it’s absolutely gonna accelerate. So look for LA and other major cities to certainly we are certainly gonna be putting this in front of them, and we believe it’s so compelling that they’re just gonna have to start their programs again. That’s my view on it. We’re sitting on really good information that we just got it.
We just really, in the last six months, put it together. It’s sensitive. Like Jared said, it’s super sensitive. But it’s our job and responsibility and our duty to get this in front of them and get this in front of the meeting to spread the word. Because what it’s it’s working, and it’s working better than any of us knew.
Lou, Moderator/Operator, Wrap: Great. Thank you. Final question here. With all of these new hires, is RAP building something similar to Kroll Associates?
Jared Novick, President and Chief Operating Officer, Wrap: Hey, Lou. I’ll I’ll take I’ll take that one. You know, Kroll Associates is a is a model that I’m familiar with. And the answer to that is, in some ways, yes. We are.
In some ways, no. How how are we doing something similar? The the we have tremendous talent that we were able to pull together more recently. You we our press releases have announced former leaders out of the FBI, DEA, intelligence community, sensitive components out of the Pentagon. And so these are individuals with highly accomplished careers that have global networks, sometimes with other national police or other government agencies.
And in that way, that’s a model in some ways that the Kroll has used to expand their global footprint and form trusted relationships in the private sector that are putting to use a lot of the tradecraft and methodologies and technologies that were formerly only used in the government, but now are being given to private companies and high net worth individuals. So there is overlap in that way. The way that it’s different, and I think this is a very important to note to make, is that what’s the revenue model behind it? Professional services, while it gives an immediate opportunity for revenue growth, can at times be bumpy, and we know that it has to be one to build a scalable technology tech enabled business. So the way that we’re dissimilar, and I know CRO has evolved as well, is that what we’re going to do is, have these individuals be more of a managed service that support our BolaWrap program today.
Many of these are law enforcement professionals. They give us the credibility and prestige that this this, technology requires. And so when we look at our revenue model going forward and give continuous value to our customers, they’re coming to a knowledge pool of experience that is top notch in a in a global leader of that. And when it comes to their investigative services or their support across technologies, look. Technology is wonderful and so is AI, but there’s still a human connection when it comes to corporate clients, Global 100 customers, high net worth.
You need to have the experience and the trade craft to apply those technologies. So when it comes to revenue models, we are we are going to have a managed service that’s tech enabled in a recurring business line there that is both bolsters the BolaWrap program and expands our offerings to increase revenue, expansion.
Scott Cohen, Chief Executive Officer, Wrap: And I’m gonna add to it. It was a it was a thought and a theory, before the acquisition, but we knew after lots of meetings with them that we we realized they have reached, deep reach, not only in our state department, but embassies across the world. And we thought that they could help us push get information in country and help us push through embassy to to to to shine light on our program and get the backing from The US in country. And, it turns out that some of our biggest opportunities right now overseas, we’re able to, work through our embassies and and support our distributors and what’s happening on the ground in these countries in ways that we never were able to do in the past. And that that is being well received with our distributors.
Ice it’s giving us another connect a connectivity point that we never had before. And with this financing option that Jared mentioned coming through Exen Bank, It’s a very good value prop with good relationships, solid relationships, that go back, you know, a whole careers. And, I think that that teamwork with the local on the ground blocking and tackling that’s going on with our reach through embassies and state department and, the w one’s global network, it’s it’s really allowing us to get much more clear and and get much more intentional about where to spend time, and we’re seeing the effect of that. And I believe it’s just it’s accelerating deals, it’s it’s it’s actually making these opportunities bigger. So, the w one acquisition is is is got it’s just more than the investigative side.
It’s much more than that, and it’s actually turning out exactly what we thought, which was gonna help us accelerate deals, large deals overseas. So we’re very pleased, I think we’re ahead of plan already. So they’re doing great, and it’s a it’s it’s it’s it’s capability we never had. And it’s at at the end of the day, you’re talking about people and relationships and teamwork, and, it feels really good, we’re off to a great start. Lou, I think is that the last one?
Lou, Moderator/Operator, Wrap: Yep. That was the last question. And this concludes Wrap’s q one twenty twenty five earnings call. On behalf of our entire team, we wanna thank you for joining us today. We appreciate your continued support as we execute on our mission to create safer outcomes for officers and communities.
Thank you.
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