WRAP TECHNOLOGIES, INC.

Cash-strained non-lethal public-safety micro-cap with deep operating losses and a dangerously short runway.

Strengths

• Healthy gross margin (~58%) and high current ratio (6.3x); narrowed net loss year over year
• Expanding portfolio (BolaWrap, Wrap Reality, BWC, CUAS) into federal/defense markets

Risks

• Cash runway only ~1.3 quarters with deeply negative margins (operating -288%, net -221%) and ROE -90%
• History of losses and dependence on dilutive financing to continue operations

Notable findings

• Net lossNet loss (net margin -221.2%)
• Cash burnNegative free cash flow (-10.4M)
• Revenue declineRevenue -20.9% YoY