Q1 2022 Wrap Technologies Inc Earnings Call

May 3, 2022

[music].

Good afternoon, and welcome to the wrap Technologies' first quarter 2022 earnings Conference call. My name is Paul Manley, and I'm, Vice President of Investor Relations Today, We will provide a report on our progress and performance during the first quarter and then update on our key priorities and strategy.

Good afternoon and welcome to the RAP Technologies first quarter 2022 earnings conference call. My name is Paul Manley and I'm Vice President of Investor Relations. Today we'll provide a report on our progress and performance during the first quarter and an update on our key priorities and strategies.

On today's call I'm excited to introduce our newly appointed CEO T J Kennedy and our new President Kevin Mullins. We're also joined by Jim Barnes, Our Chief Financial Officer.

On today's call, I'm excited to introduce our newly appointed CEO , TJ Kennedy, and our new president, Kevin Mullins. We are also joined by Jim Barnes, our chief financial officer.

I'd like to take a moment now to remind you that certain statements made during the call today constitute forward looking statements made two pursuant within the meaning of the safe Harbor provisions of the private Securities and Litigation Act of 1995 as amended.

I'd like to take a moment now to remind you that certain statements made during the call today constitute forward-looking statements made too, pursuant within the meaning of the Safe Harbor Provisions of the Private Securities and Litigation Act of 1995 as amended.

Such forward looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. These risks and uncertainties are described in our earnings press release and in our filings with the SEC. These forward looking statements made today are as the date of this call and we do not undertake any.

such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. These risks and uncertainties are described in our earnings press release and in our filings with the SEC. These forward-looking statements made today are at the date of this call and we do not undertake any obligation to update the forward-looking statements. I will now turn the call over to the

He obligation to update the forward looking statements I will now turn the call over to U T J.

Thank you Paul and good afternoon, everyone to start off I'm incredibly excited to be here on my first earnings call as <unk> CEO .

Thank you, Paul. And good afternoon, everyone. To start off, I'm incredibly excited to be here on my first earnings call as RAP CEO .

I want to give some perspective as to why you decided to take the job.

I want to give some perspective as to why I decided to take the job. As you may know, I joined the board of directors in 2021. Since joining the board, I've been incredibly impressed by the company's mission-driven culture and the mission-critical business we are building.

As you May know I joined the board of directors in 2021 since joining the board I've been incredibly impressed by the company's mission driven culture and the mission critical business we are building.

There is a unique opportunity to fill white space in our addressable market that is growing significantly as demand for safer more efficient restraint and D escalation solutions increases throughout the world.

There is a unique opportunity to fill a white space in our addressable market that is growing significantly as demand for safer, more efficient restraint and de-escalation solutions increases throughout the world.

As a former law enforcement officer, who worked in the field I can tell you that our key solutions. The bowler wrap $1 50, and rap reality has the potential to make significant positive changes in the landscape for modern policing.

As a former law enforcement officer who worked in the field, I can tell you that our key solutions, the BOLA-RAP 150 and RAP Reality, have the potential to make significant positive changes in the landscape for modern policing, military and insecurities.

Military and in security.

What's more is that we have built a team of incredibly talented individuals that are driven by our mission and have a diverse set of backgrounds that span engineering product development technology sales and marketing among others.

What's more is that we have built a team of incredibly talented individuals that are driven by our mission and have a diverse set of backgrounds that span engineering, product development, technology, sales and marketing, among others.

As we look ahead continuing to recruit top tier talent remains a major priority.

As we look ahead, continuing to recruit top-tier talent remains a major priority.

That said I want to take a moment to address our first quarter financial results, which are a CFO Jim Barnes will discuss in further detail later in the call.

That said, I want to take a moment to address our first quarter financial results, which our CFO Jim Barnes will discuss in further detail later in the call.

Our team was able to build momentum with revenues growing year over year, despite significant supply chain headwinds.

Our team was able to build momentum with revenues growing year over year despite significant supply chain headwinds.

It is important to keep in mind that wrap was operating without permanent leadership for the majority of the first quarter.

It is important to keep in mind that RAP was operating without permanent leadership for the majority of the first quarter.

The appointments of myself as CEO and Kevin Mullins as precedent represent a critical milestone for ramp as we move into the next phase of the Companys lifecycle.

The appointments of myself as CEO and Kevin Mullins as President represent a critical milestone for RAP as we move into the next phase of the company's life cycle.

The two of US have a shared vision for accelerating sales of the bowler wrap $1 50 in the near term and diversifying Rep suite of solutions, including rap reality and other services for global law enforcement over the long term.

The two of us have a shared vision for accelerating sales of the Bola Wrap 150 in the near term and diversifying Wrapped's suite of solutions, including Wrapped Reality and other services for global law enforcement over the long term.

Over the next 90 days, Kevin and I will assess every facet of the business to take inventory of what is working well and what can be improved upon.

We will be engaging our employees our customers and distributors throughout this process.

We will be engaging our employees, our customers, and distributors throughout this process.

Specifically, we want to look closely at our go to market strategies for the bullet wrap $1 50 and Rep reality.

Specifically, we want to look closely at our go-to-market strategies for the BOLA-RAP 150 and RAP reality.

We want to devise a plan for doubling down on the Boulder up $1 50 is our key product.

We want to devise a plan for doubling down on the BOLA-RAP 150 as our key product and understand how we can drive sales growth both domestically and internationally.

And understand how we can drive sales growth both domestically and internationally.

We want to assess how to expand brand awareness and demand for rap reality.

We want to identify potential synergistic technologies and channel partnerships, and we want to explore ways to expand and maximize existing customer relationships as well as generating new ones through an improved customer success function.

We want to identify potential synergistic technologies and channel partnerships, and we want to explore ways to expand and maximize existing customer relationships, as well as generating new ones through an improved customer success function.

At the end of these 90 days, we expect to develop and release a strategic roadmap that will ultimately support enhanced sales increased innovation and diversification and long term value creation.

At the end of these 90 days, we expect to develop and release a strategic roadmap that will ultimately support enhanced sales, increased innovation and diversification, and long-term value creation.

I'd like to now give Kevin the opportunity to briefly introduce himself before Jim discusses our financial results for the quarter.

Kevin.

Thank you T J and good afternoon, everyone. I spent my career, taking public safety technology companies from concept to growth the profitability and I am incredibly excited to be working with the team at wrap to see what we can accomplish together.

Thank you, TJ, and good afternoon, everyone. I've spent my career taking public safety technology companies from concept to growth to profitability, and I'm incredibly excited to be working with the team at WRAP to see what we can accomplish together.

Already confident in the future Brad given the early success of the bowler wrap 150, and I'm incredibly excited to lead wrap into the next phase of commercializing and distributing our products now that the company has a permanent leadership team and is committed to running and growing the business over the long term, we expect to capture a significant market share.

I'm already confident in the future of WRAP, given the early success of the BOLA WRAP 150, and I am incredibly excited to lead WRAP into the next phase of commercializing and distributing our products. Now that the company has a permanent leadership team and is committed to running and growing the business over the long term, we expect to capture a significant market share while delivering enhanced value to all stakeholders in the quarters and the years to come. With that, I will turn it over to Jim to discuss our financial results.

While delivering enhanced value to all stakeholders in the quarters and years to come with that I will turn it over to Jim to discuss our financial results.

Thanks, Kevin Good afternoon, everyone I'll move straight into discussing the financial highlights for the first quarter.

Thanks, Kevin. Good afternoon, everyone. I'll move straight into discussing the financial highlights for the first quarter. First, we generated net revenues of $1.6 million in the first quarter of 2022. That represented 4% growth over Q1 2021. This is in spite of $0.4 million in promotional discounts and incentives, primarily related to converting customers to the new generation, BOLAWRAP 150.

First we generated net revenues of one 6 million in the first quarter of 2022 that represented 4% growth over Q1 'twenty 'twenty. One. This is in spite of zero point $4 million and promotional discounts and incentives primarily related to converting customers to the new generation.

Bowler at $1 50.

Gross revenues before such discounts was $1 99 million.

Gross revenues before such discounts was 1.99 million.

Q1, 2021 only had nominal discounts of $4000. So gross revenues for the prior year quarter were $1 5 million.

Q1 2021 only had nominal discounts of $4,000. So gross revenues for the prior year quarter were 1.5 million.

We expect customer product conversion discounts customary in this industry to decline after Q2.

We expect customer product conversion discounts, customary in this industry, to decline after Q2.

International revenues represented 26% of Q1 2022, net revenues compared to 61% for the same period in 2021.

International revenues represented 26% of Q1 2022 net revenues compared to 61% for the same period in 2021.

Domestic revenues grew by 95% over the prior year continuing positive momentum seen in recent quarters driven in part by bowler rapid success stories documented on body camera footage.

Domestic revenues grew by 95% over the prior year, continuing positive momentum seen in recent quarters driven in part by BOLAWRAP success stories documented on body cam footage.

While our market penetration is still very small with significant room for growth and a large total addressable market. We believe bubble wrap and our related virtual reality training solution are making and can continue to make an important difference in modern safer placing.

While our market penetration is still very small, with significant room for growth in a large, total addressable market, we believe BOLAWRAP and our related virtual reality training solution are making and can continue to make an important difference in modern, safer policing.

International pandemic related restrictions are lessening in 2022, but it may take time to schedule face to face interactions and build our momentum.

International pandemic-related restrictions are lessening in 2022, but it may take time to schedule face-to-face interactions and build our momentum.

We also cannot predict at this time the impact recent geopolitical conflicts under sanctions will have on our international operations.

We also cannot predict at this time the impact recent geopolitical conflicts and sanctions will have on our international operations.

We have consistently flagged at our revenue growth can be lumpy, especially international revenues as we balanced pandemic travel restrictions and now face uncertainties related to international contacts.

We have consistently flagged that our revenue growth could be lumpy, especially international revenues, as we balance pandemic travel restrictions and now face uncertainties related to international conflict.

Our international business tends to be large national law enforcement agencies as the end user and they may be especially sensitive to geopolitical events.

We are focused on managing our business for continued growth, especially with the launch of the new bubble wrap $1 50.

We are focused on managing our business for continued growth, especially with the launch of the new BoloWrap 150.

Our gross margin for the first quarter was 42% compared to 39% for Q1 of 2021 and the most recent quarter gross margin was significantly impacted by the 0.4 million of previously noted discounts.

Our gross margin for the first quarter was 42% compared to 39% for Q1 of 2021. In the most recent quarter, gross margin was significantly impacted by the 0.4 million of previously noted discounts.

We continue to face global supply chain risks and challenges that can affect margins and impact operations, while we assembled product in Tempe, we rely on many global suppliers. We are at risk of and have faced shortages and unexpected delays of key components.

We continue to face global supply chain risks and challenges that can affect margins and impact operations.

While we assemble product in Tempe, we rely on many global suppliers. We are at risk of and have faced shortages and unspected delays of key components.

We have also experienced price increases of certain components price changes uncharted yours kind of increased costs and delayed production.

We have also experienced price increases of certain components.

Price changes and shortages can increase costs and delay production.

We also from time to time may need to design around certain components that can further delay production and required of all my time and costs.

We also, from time to time, may need to design around certain components that can further delay production and require development time and costs. All these factors can impact future results.

All of these factors can impact future results.

We incurred product promotional costs of $215000 in the first quarter related primarily to the cost of demonstration and training products delivered to law enforcement agencies.

We incurred product promotional costs of $215,000 in the first quarter related primarily to the cost of demonstration and training products delivered to law enforcement agents.

This is a decline from the prior year as our expanded product and brand awareness reduces our need for a demonstration products.

This is a decline from the prior year as our expanded product and brand awareness reduces the need for demonstration products.

R&D expense was $1 5 million for Q1 2022, the increase in costs compared to the prior year was a result of increased head count primarily associated with new product development as well as outside consulting costs related to finalizing development and testing of the model bowler at $1 50.

R&D expense was $1.5 million for Q1 2022. The increase in cost compared to the prior year was a result of increased headcount primarily associated with new product development, as well as outside consulting costs related to finalizing development and testing of the model BOLAWRAP 150.

<unk>.

We also invest resources to improve our virtual reality software.

We expect R&D costs to remain at comparable Q1 levels for the balance of 2022.

We expect R&D costs to remain at comparable 2.1 novels for the balance of 2022.

SG&A expense was $4 6 million in the first quarter, representing a reduction from the prior year first quarter.

SG&A expense was $4.6 million in the first quarter, representing a reduction from the prior year first quarter.

Noncash share based compensation increased 292000, primarily as a result of termination and severance acceleration.

non-cash share-based compensation increased 292,000 primarily as a result of termination and severance acceleration.

SG&A compensation increases included a $300000 severance expense offset by cost containment efforts, resulting in a net 110000 dollar increase in cash compensation costs.

SG&A compensation increases included a $300,000 severance expense offset by cost containment efforts resulting in a net $110,000 increase in cash compensation costs.

We expect SG&A expenses for the balance of 2022 to remain below the prior year due to active cost containment efforts.

Overall, our net loss was $5 4 million for Q1 2022, the same as Q1 2021.

Overall, our net loss was $5.4 million for Q1 2022, the same as Q1 2021 and representing a net loss of $0.13 per share.

Representing a net loss of <unk> 13 per share.

Our balance sheet remains strong with approximately $30 million of cash and short term investments to support our growth needs.

Our balance sheet remains strong with approximately $30 million of cash and short-term investments to support our growth needs.

With that I will turn the call back over to T. J.

With that, I will turn the call back over to TJ.

I'd like to reiterate how excited both Kevin and I are to be leading wrap into the next chapter of what we believe will be an incredible growth story.

I'd like to reiterate how excited both Kevin and I are to be leading RAP into the next chapter of what we believe will be an incredible growth story.

As previously stated over the next 90 days, we will work to deliver a clear growth focus strategic plan that will detail the following key priorities.

As previously stated, over the next 90 days, we will work to deliver a clear, growth-focused strategic plan that will detail the following key priorities.

How we will shift our emphasis from intense R&D to sales growth and distribution of the bowler at $1 50.

How we will shift our emphasis from intense R&D to sales growth and distribution of the Bolarap 150. Ways to expand awareness and demand...

We used to expand awareness and demand for rap reality.

Potential synergistic technologies, and channel partnerships, and expanding training programs and relationships across domestic and international markets.

potential synergistic technologies and channel partnerships, and expanding training programs and relationships across domestic and international markets.

We look forward to sharing this plan with you in Q3 of this year.

With respect to our outlook, we continue to expect to achieve top line growth in fiscal year 2022.

With respect to our outlook, we continue to expect to achieve top-line growth in fiscal year 2022, especially as we raise awareness of the BOLA RAP 150 and RAP Reality.

Especially as we raise awareness of the Bola wrap $1 50, an rap reality.

However, it is important to highlight the geopolitical headwinds and supply chain issues remain obstacles for us.

However, it's important to highlight that geopolitical headwinds and supply chain issues remain obstacles for us.

I will now turn the call back over to Paul to facilitate the Q&A.

Yeah.

Thank you T. J, we will now be taking questions from our three sell side analysts who are currently writing research on wrap technologies.

Thank you, TJ. We will now be taking questions from our three cell-side analysts who are currently writing research on RAP technologies. Thank you each for your continued support. Our first set of questions will come from Greg Gibbous from Northland Capital Markets. Please go ahead, Greg.

Thank you each for your continued support our first set of questions will come from Greg give us from Northland capital markets. Please go ahead Greg.

Hey, Thanks, Paul Thanks, T J and Kevin Thanks for taking the questions.

Hey, thanks, Paul. Thanks, TJ and Kevin. Thanks for taking the questions. You know, I guess first from maybe a high level.

I guess first maybe a high level.

What in what ways would you kind of improve the business.

You know, in what ways would you kind of improve the business versus, you know, the previous leadership team? Would it be kind of adjusting some of the sales efforts or the go-to-market strategy? Any thoughts on changing the strategy there?

As you know the previous leadership team would it be kind of adjusting some of the sales efforts or they go to market strategy any thoughts on changing the strategy there.

Thanks, Greg and great to talk to you today, we are laser focused on creating a strategic roadmap to guide the business over the next few years. Specifically this roadmap will include documenting a repeatable domestic and international sales efforts and overall our go to market strategy. So we're really going to be looking at that roadmap by by talking to our distributors talking to our.

Thanks, Greg. And great to talk to you today. We are laser focused on creating a strategic roadmap to guide the business over the next few years.

Specifically, this roadmap will include documenting our repeatable domestic and international sales efforts and overall our go-to-market strategy.

So, we're really going to be looking at that roadmap by talking to our distributors, talking to our entire team, and talking to our customers as the real guide for us going forward and to document this as our strategy and then put out some key milestones for you to measure us going forward.

Entire team and talking to our customers is the real guide for us going forward and to document. This is our strategy and then put out some key milestones for you to measure us going forward.

Okay.

Got it and.

Got it. And, you know, when we do kind of think about your guys's outlook, you maybe talk about the type of or how strong your order of visibility is for maybe the next three quarters of the year and, you know, how maybe your backlog stacks up and, you know, any thoughts on I guess, you're instating guidance at some point, you know, depending on how your visibility is.

When we do kind of think about your guidance outlook.

Maybe talk about the type of or how strong your order visibility is for maybe the.

The next.

Three quarters of the year.

How maybe your backlog stacks up.

And any thoughts on I guess.

Hitting guidance at some point.

Depending on how your visibility.

Right now we are not looking to provide any immediate guidance. One thing we definitely have as our international orders or are what I would refer to as lumpy. There are some large opportunities that take a long time to come to fruition, but when they do they're very large orders theyre typically national police forces I will say, we have a very good pipeline visibility.

Right now, we are not looking to provide any immediate guidance. One thing we definitely have is our international orders are what I would refer to as lumpy. There are some large opportunities that take a long time to come to fruition, but when they do, they're very large orders. They're typically national police forces. I will say we have very good pipeline visibility in our CRM tool. We have been digging in, both Kevin and I, over the last two weeks to both our domestic and our international pipeline, and I'm quite pleased with all the data we've been receiving from the team. But I would like to dig into it even further and just really focus on what drives our repeatable domestic and international sales, and they are quite different to some degree as far as how they come to completion inside the business. And in the future, we'll have more predictability, but I do believe with the international type of business we have, there will certainly be lumpiness to it still going.

And our CRM tool.

Have been digging in both Kevin and I over the last two weeks to both our domestic and our international pipeline and I'm quite pleased with all the data we've been receiving from the team but.

But I would like to dig into it even further and just really focus on what drives a repeatable domestic and international sales and they are quite different to some degree as far as how they come to completion inside the business and in the future. We will have more predictability, but I do believe with the international type of business. We have there will certainly be lumpiness to it still going forward.

Okay got it I guess last one kind of on the financial side Virgin.

Okay, got it. You know, I guess last one, kind of on the financial side for Jim, you know, how do you kind of envision supply chain, logistics issues, maybe impacting margins and kind of costs, expenses going forward from here?

How do you kind of envision supply chain logistics issues, maybe impacting.

Margins.

And of course <unk>.

<unk> going forward from here.

Well we've looked at.

Well, we've looked at the impact on price changes on our margins, and we believe we have enough space in there to account for that. So we still expect our margins.

The impact on price changes.

On our margins and we believe we have enough space in there to account for that so we still expect our margins to increase during the year. Our goal as we've stated several times is to be well above 50%. We still think that is achievable even with these.

to increase during the year. Our goal, as we've stated several times, is to be well above 50%. We still think that is achievable, even with these.

Supply chain headwinds that we're facing so we're managing that very aggressively and working through all the issues, but we believe our goal is still attainable in that.

supply chain headwinds that we're facing so we're we're managing that very aggressively and working through all the issues But we believe our goal is still attainable and that we'll see improved margins over the next few quarters

We will see improved margins over the next few quarters.

Got it thank you I'll pass it on.

Great. Thank you Gregg next will be Allen Klee from the Maxim Group. Please go ahead Alan.

Great. Thank you, Greg. Next will be Alan Klee from the Maxim group. Please go ahead, Alan.

Yes, hi could.

Yes, hi. Could you talk a little about the status of your large city trials and I know there's LAPD and if there's any others and when you hope to get some feedback from that and what those opportunities could be?

Could you talk a little about.

The status of your large city trials and.

I know theres, LAPD, and if theres any others and.

When you hope to get.

Some feedback from that and what those opportunities could be.

Sure kind of a twofold answer one we are currently in a number of cities that are designated as metropolitan by the major City Chiefs Association as well as a number of counties that are part of the major County Sheriff's Association and we certainly love to continue to grow those larger agency deployments that are out there.

Sure, kind of a twofold answer. One, we are currently in a number of cities that are designated as metropolitan by the major city chiefs association, as well as a number of counties that are part of the major county sheriff's association. And we certainly love to continue to grow those larger agency deployments that are out there. Specifically, you mentioned LAPD, and they have received new 150 devices, they will be training their officers to carry those.

Specifically, you mentioned LAPD and they have received new 150 devices. They.

They will be training your officers to carry those in some specific precincts and then after that training is complete we anticipate there'll be doing a valuation for about a year.

and then after that training is complete we anticipate they'll be doing evaluation for about a year so that's continuing to move forward but very much we're focused on getting additional new departments in you know we'll be continuing to talk to as many of those departments as we can both to get

So that's continuing to move forward.

But very much were focused on getting additional new departments in.

Continuing to talk to as many of those departments as we can both to get initial sales of Boulder up 150 to them as well as our rap reality in some cases.

initial sales of a bowler up 150 to them as well as wrap reality in some cases and To continue to grow that out across the departments These departments are often quite large and they start in one particular area and you know, obviously our goal

And to continue to grow that out across the departments. These departments are often quite large and they start in one particular area and obviously our goal will be to continue to expand once we're in there and they see the value that they're getting from our two solutions.

once we're in there and they see the value that they're getting from our

Okay.

Thank you can you provide.

Thank you. Could you provide any qualitative commentary on the mix, on how the relative mix between BOLA wrap?

Any qualitative commentary on the mic when how the relative mix between.

Lola rap.

<unk> cartridges, and and basically between below the wrap and cartridges. If it was more weighted this quarter towards one versus the other.

cartridges and basically between bolo wrap and cartridges, if it was more weighted this quarter towards one versus the other versus.

Versus what you've historically done.

I'm sorry, the last quarter of last year, we indicated there was a large cartridge order. So it was more balanced in Q1 of 2022. So it's continued.

I'm sorry, the last quarter of last year we indicated there was a large

cartridge order, so it was more balanced in Q1 of 2022.

<unk> balance of devices and cassettes says, we we call it what the bowler at 150 <unk>.

So it's a continued balance of devices and cassettes, as we call it, with the BOLAR App 150. And we continue that balance, we expect, throughout the year. So it wasn't weighted one way or another. We do not break out those specific revenues at this time until we grow a little bit larger, and then you'll see the breakout on that. But it was a balanced MEX this quarter.

And we continue that balance we expect throughout the year. So it wasn't weighted one way or another we do not break out those specific revenues at this time until we grow a little bit larger and then youll see the breakout on that but.

It was a balanced mix this quarter.

Yes.

Yeah.

Thank you.

And then just how do you think to the extent you were gonna add.

And then just, how do you think of, to the extent you were going to add some new offerings in the future, either organically or through M&A, just generically, what would make sense?

Had some new offerings in the future.

Either organically or through M&A.

Just generically what what would make sense.

So Alan.

So Alan, WRAP Reality currently has two capabilities. You know, one is a law enforcement version and one is a community re-entry version. We really, you know, haven't exploited or leveraged that second part completely yet. So that's one of the products we actually already have, but there's some unique capabilities.

<unk> currently has two capabilities one is a law enforcement version and one is a community reentry version, we really haven't exploited or leverage that second part completely yet. So that's one of the products, we actually already have but there are some unique capabilities.

We also would like to look at additional virtual reality scenarios, whether it's for corrections to expand the amount of scenarios. We have that focus on those working in the correction system. So those are areas, where we can expand even with the rap reality product as we have today, obviously on the bowler at 150 side, we have a roadmap for that product and for its long term.

We also would like to look at additional virtual reality scenarios, whether it's for corrections to expand the amount of scenarios we have that focus on.

those working in the corrections system. So those are areas where we can expand, even with the WRAP Reality product as we have today. Obviously on the BOLA WRAP 150 side, we have a roadmap for that product and for its long-term usage, and we're gonna continue to invest and drive our BOLA WRAP capability. As far as other solutions that we could serve, we're always gonna look for things that are synergistic and the right companies to partner with. I will say this will be an area that over the next 90 days, we will be looking at as part of that strategic roadmap.

Usage, and we're going to continue to invest and drive our Boulder rep capability as far as other solutions that we could serve we're always going to look for things that are synergistic and the right companies to partner with I will say this will be an area that over the next 90 days, we will be looking at as part of that strategic roadmap to find the best ways for us to be able to go to market, we certainly use them.

to find the best ways for us to be able to go to market. We certainly use a lot of distributors today, and there are other partnerships that we could have that could help accelerate sales. And so we'll be looking at those models and what can work best for us as we go forward.

Lot of distributors today and there are other partnerships that we could have that could help accelerate sales and so we'll be looking at those models and what can work best for us as we go forward.

Okay. Thank you so much.

Thank you very much Allen finally will have Jon Hickman from Landberg Thalmann. Please go ahead John .

Thank you very much, Alan. Finally, we'll have John Hickman from Landberg-Thalmann. Please go ahead, John .

Hi.

Hi, I guess this is a question for Jim. When you say that SG&E is going to be below last year, do you mean that as a total number or quarter by quarter?

I guess this is a question for Jim.

When you say that SG&A is going to be below last year do you mean that as a total number or quarter by quarter.

The number is going to be lower.

Yes, overall it would be lower.

Yeah, overall to be lower. As you look at last year, it was a bit lumpy quarter to quarter. So we do anticipate that it will be lower overall.

As you look at last year, it was a bit lumpy quarter to quarter. So we do anticipate that it will be lower overall.

Okay, so lower than last year.

Okay and then.

Okay, and then you made a comment about geopolitical headwinds. So are we to assume that that means that what's going on in Ukraine is affecting police personnel?

You made a comment about geopolitical headwinds.

Are we to assume that that means of what's going on in Ukraine into 15.

Police.

Corridors around the world.

Well, we currently have delivered product to 53 countries. So a lot of these are in that region or a few of these are in that region. So we anticipate that.

We could get some pushback from some of those countries.

we could get some pushback from some of those countries.

We don't.

Talk about specific countries, but 53 countries does cover quite a bit of the the globe. So it does have an impact on some orders that were looking at in the European theater. So it is something that could impact we're hoping that the impact wont be large but it is something that we're focused on and we pay attention to and it.

We don't talk about specific countries, but 53 countries does cover quite a bit of the globe. So it does have an impact on some orders that we're looking at in the European theater. So it is something that could impact. We're hoping that the impact won't be large, but it is something that we're focused on and we pay attention to. And it has delayed some meetings and so forth because.

Has delayed some meetings and so forth because we're close to some of those regions with some of our distributors and customers. So it can have an impact we don't know exactly what that's going to be but we do pay attention to it.

we're close to some of those regions with some of our distributors and customers. So it can have an impact. We don't know exactly what that's going to be, but we do pay attention to it.

Okay.

Thanks, that's it for me.

Okay, great. Thank you John and thanks to each of you our three analyst for your great questions today and also for your continued support with that I'd like to turn the call back over to T. J for his closing thoughts. Thank.

Okay, great. Thank you, John . And thanks to each of you, our three analysts, for your great questions today and also for your continued support. With that, I'd like to turn the call back over to TJ for his closing thoughts.

Thank you, Paul and closing, Kevin and I could not be more excited to be part of this amazing wrapped team.

Thank you Paul. In closing, Kevin and I could not be more excited to be part of this amazing wrap.

Theres, so much potential with the bowler at $1 50, and Rep reality and the ability to save lives and even save the careers of our law enforcement personnel that we serve.

There's so much potential with the BOLA RAP 150 and RAP Reality and the ability to save lives and even save the careers of the law enforcement personnel that we serve.

I hope you felt the excitement and heard the optimism for our future from our call. This afternoon, we have a tremendous group of employees, who all share the passion to innovate for public safety and deliver for our customers and the citizens that they serve.

I hope you felt the excitement and heard the optimism for our future from our call this afternoon. We have a tremendous group of employees who all share the passion to innovate for public safety and deliver for our customers and the citizens that they serve.

I look forward to sharing our strategic roadmap for Rep technologies in Q3, there is a tremendous amount of work to be done, but <unk> future is very bright.

I look forward to sharing our strategic roadmap for WRAP technologies in Q3. There's a tremendous amount of work to be done, but WRAP's future is very bright. Thank you for your time today and for your continued interest in WRAP. Have a great evening.

Thank you for your time today and for your continued interest in Rep have agreed evening.

Yeah.

?? ?? ?? ?? ?? ??

[music].

Q1 2022 Wrap Technologies Inc Earnings Call

Request a DemoDemo

WRAP

Wrap Technologies

Earnings