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Equity
Research Profiles |
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BolaWrap 100 is a patented remote restraint device that is
designed to safely fire a tether at a subject to wrap him up and keep him
from fleeing. It is a shoot-and-swarm device that has laser-line aiming and fires
an 8-foot Kevlar tether to wrap legs and/or arms from a distance of 10-25
feet. Small barbs secure the tether. The propellant is a 9mm fractional
blank. The device can be reloaded in less than 5 seconds. The product is
regulated in the U.S. as a firearm. |
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The BolaWrap 100 is sold
to law enforcement agencies only. The cost is approximately $800 per unit and
$30 per single-use cartridge. Third-party suppliers provide various parts,
components, and subassemblies, and the Company performs the final assembly
and testing at its facility in Tempe, Arizona. |
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The
product is expected to reduce the risk of lawsuits. Competitive can devices
inflict pain, severe bodily injury, and/or death. |
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Pain compliance tools: pepper spray, rubber
bullets, bean bag shotguns, Taser, baton, etc. |
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Lethal devices: guns. |
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The
Company has considerable intellectual property, including issued and pending
patents in both the U.S. and other countries, trademarks, trade craft, and
trade secrets. R&D initiatives will focus on new versions of the existing
product and new security technologies. |
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The primary
initial marketing targets are U.S. law enforcement agencies at the Federal,
state, and local levels. The company has also begun to address a sizable international
market. |
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The Company
is building relationships with existing independent regional police equipment
distributors, while using its internal business development resources to
support those distributors as well as to market to large agencies. The
Company is pursuing the international market through use of distributors selling
into dozens of countries. |
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Non-police
markets, including military policing personnel, private security workers, and
correctional facility guards, represent longer-term opportunities. |
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The Company outlines a number
of risks to its business in its 10K filing for 2019, and these are hereby
incorporated by reference. |
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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. |
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Income Statement (12 months through 12/31/19 vs. 12/31/18) |
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Revenue: 656,071
vs. 18,830 Gross
profit: 276,774 vs. 4,539 Operating
expense: 8,890,450 vs. 3,342,173 Operating
income (loss): (8,613,676) vs. (3,337,634) Other income
(expense): 288,188 vs. 1,199 Net income
(loss): (8,325,488) vs. (3,336,435) Net income (loss) per basic and
diluted common share: (0.29) vs. (0.14) |
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Balance
Sheet (12/31/19) |
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Cash &
equivalents: 16,983,864 Current
assets: 19,674,699 Current
liabilities: 1,075,800 Long-term lease
liability: 150,018 Stockholders equity: 19,195,652 Common shares outstanding (03/09/20): 30,044,241 Options, warrants, & rights
outstanding (12/31/19): 3,236,837 |
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The Company is obligated to pay 4% royalties on
revenue from products employing the licensed device technology until the
earlier of (i) such date that royalties reach $1
million or (ii) September 30, 2026. |
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In June 2019, the Company raised approximately
$11.35 million net cash proceeds from a follow-on offering of common shares. The
exercise of previously issued warrants and options accounted from an
additional $2.14 net proceeds during 2019. |
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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 well funded, with working capital at year-end 2019 of $18,598,899. |
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The stock,
with a market cap of approximately $101 million, is more than 55% below its
peak earlier this year. |
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The impact from COVID-19
remains an uncertainty.� In addition,
the 10-K filing for 2019 details a number of risk factors, and these are hereby
incorporated by reference. |
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Executive offices: 1817 W 4th Street,
Tempe, Arizona 85281; Phone: 800 583 2652 |
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Investor contact: Investor Relations, IR@wraptechnologies.com;
Phone: 800 583 2652, |
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matters, constitute forward-looking statements within the meaning of the
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any compensation for publication of this Profile, and the analyst who wrote
this report does not own a position in any WRTC securities. Analyst: William
J. Ritger. |
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TickerBuzz, LLC Contact: William J. Ritger,
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