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Equity Research

Highlights

 

 

Wrap Technologies, Inc.

(WRTC/NasdaqGS)

February 21, 2020

 

Business Overview

 

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BolaWrap 100 is a patented restraint device that fires an 8-foot Kevlar tether to wrap legs and/or arms. Line laser aiming. Wraps subject 1-3 times at a range of 10-25 feet. Small barbs secure wrap. Propellant is a 9mm fractional blank.

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Sold to law enforcement agencies only. Designed for use as a shoot & swarm device.

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Cost: $800 per unit and $30 per cartridge. Single use per cartridge.

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Reduces risk of lawsuits. Competitive can devices inflict pain, severe bodily injury, and/or death.

 

 

Growth Opportunities

 

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Internal testing phase: jurisdictions in 10 states.

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Policy, training & field-testing phase: jurisdictions in 12 states.

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International potential: new distributors being added weekly.

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Non-police markets: military personnel, private security workers, schoolteachers.

 

 

2020 Focus

 

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Q1 2020: Boost number of Master Trainers and number of officers trained.

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Q2 2020: Increase field deployments and field uses.

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Q4 2020: Establish BolaWrap 100 in 10 major US cities and 20 countries.

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Q3 2020: Expand distributor network and launch new version of product.

 

 

Competitive Landscape

 

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Pain compliance tools: pepper spray, rubber bullets, bean bag shotguns, Taser, baton, etc.

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Lethal devices: guns.

 

 

Management

 

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The backgrounds of the Executive Management and Directors are outlined on the WRTC web site. The individuals have significant experience in law enforcement and related businesses, as well as in corporate finance and capital markets.

 

 

Financials

 

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Income Statement (9 months through 9/30/19 vs. 9/30/18)

 

Revenue: 446,018 vs. 1,890

Gross profit: 191,317 vs. 283

Operating expense: 6,168,035 vs. 2,044,698

Other income (expense): 194,659 vs. (389)

Net income (loss): (5,782,059) vs. (2,044,804)

Net income (loss) per basic common share: (0.20) vs. (0.09)

 

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Balance Sheet (9/30/19)

 

Cash & equivalents: 19,261,830

Current liabilities: 1,261,846

Long-term debt: 183,187

Stockholders equity: 20,695,649

Common shares outstanding (10/30/19): 29,669,000

 

 

Valuation Considerations

 

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According to Statistics MRC, the non-lethal weapons market was $6.3 billion in 2016 and is expected to reach more than $11 billion in 2023.

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The Company is quite well funded, having completed a public offering of units in June 2019 ($11.35 million net cash proceeds).

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The stock has a market cap of approximately $193 million.

 

 

Contact

 

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Executive offices: 1817 W 4th Street, Tempe, Arizona 85281

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Investor contact: Investor Relations, 800.583.2652, IR@wraptechnologies.com

 

WRTC Web Site

WRTC Investor Deck

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TickerBuzz LLC ("TickerBuzz"), a Florida limited liability company is the author of this Highlights. TickerBuzz is not a broker-dealer, investment advisor, or crowdfunding portal. Furthermore, it does not offer any securities, or act as a broker-dealer, investment advisor, or placement agent, nor does it provide any investment advice or analysis. The source material for this Highlights is the WRTC presentation materials and SEC filings, and TickerBuzz makes no representations or warranties as to its accuracy or completeness. All of this information is intended for discussion purposes only, is not a solicitation to buy or sell any security, and must not be relied upon for financial, legal, tax or any other professional advice. This company has not paid TickerBuzz any compensation for publication of this Highlights, and the analyst who wrote this report owns no position in any of the WRTC securities. Analyst: William J. Ritger.

 

 

TickerBuzz, LLC

Contact: William J. Ritger, writger@gmail.com, 561.891.1903

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