Wrap Technologies CEO says company ‘laser-focused’ on execution

CEO Scot Cohen said, in part, “We are at a pivotal time in Wrap Technologies and I’m excited to share with you that we believe that we’re emerging stronger than ever. First, as you are all aware we are actively addressing both our audit and Nasdaq compliance issues. New Auditors: Thirty days ago, we engaged HTL as our new auditors. They are progressing through our 2023 audit, and we do not anticipate any need for restatement of our financials. NASDAQ Compliance: On June 17, 2024, we submitted a comprehensive compliance plan to the NASDAQ Listing Qualifications Department. While there is no guarantee of acceptance, we are hopeful that NASDAQ will grant us sufficient time to complete our 10-K for 2023 and the 10-Q for the first quarter ended March 31, 2024. Today’s company looks very different than it did at the end of 2023 when we pursued an aggressive growth strategy and expanded manufacturing operations in preparation for anticipated international demand. Our recent audit provided a valuable opportunity to holistically reassess our business operations, leading to the implementation of heightened discipline, structure, and controls. It became apparent that we were clearly on the wrong path and our recent auditing endeavors provided us with crucial insights, prompting a strategic pivot. First, we have achieved a significant reduction in our operational expenses, decreasing from as high as $2.5 million per month in 2022 to an anticipated $700,000 per month by the end of 2024. This would represent a 72% reduction in our operating expense model. These profound changes establish a more sustainable structure, including tough decisions regarding workforce adjustments. These measures, in conjunction with our accounts receivable, should furnish us with the necessary runway to seize upcoming market opportunities. Second, through closer engagement with our customers and pilot deployments in major cities, it has become evident that Wrap’s solutions are not merely non-lethal devices but vital de-escalation solutions. Moreover, Wrap is well positioned to become a preeminent provider of de-escalation solutions, both domestically and internationally. We are committed to deepening our investments in customer success and product delivery with our considerable existing inventory. Along the way, we intend to capture essential use of force data to aid our clients in successfully implementing de-escalation strategies. Our planned solutions are expected to be purpose-built and designed to integrate operationally into law enforcement agencies and packaged for elected officials as they answer the public safety needs of their constituents. Finally, we are laser-focused on execution. We are refining our leadership and simplifying organizational structures to enhance focus, agility, and speed in decision-making…Assuming leadership six months ago, I did so with a firm belief in our purpose to transform public safety through the widespread adoption of our de-escalation tools, technologies, and training. The changes we are implementing across our organization are designed to refine our focus on what sets Wrap Technologies apart from the competition, positioning us to emerge as a stronger, more impactful company.”