Q4 2022 Wrap Technologies Inc Earnings Call
[music].
Good afternoon, and welcome to wrap Technologies' fourth quarter and full year 2022 earnings Conference call. Joining me today are wrap Technologies', Chief Executive Officer, TJ Kennedy President Kevin loans.
Following our prepared remarks, we will open up the call for questions.
I would like to remind everyone that this call will be recorded and made available for replay via a link in the Investor Relations section of our website at IR Dot RAF Dot Com <unk>.
Additionally, we ask all interested parties to register on our new website at IR Dot rap Dot com continue to receive alerts and stock information.
As a reminder to listeners certain statements made during the call today constitute forward looking statements made pursuant to the safe Harbor provisions of the private Securities 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.
Really from such statements.
These risks and uncertainties are described in our earnings release and more fully in our filings with the SEC.
The forward looking statements today are made as of the date of this call and we undertake no obligation to update the forward looking statements.
Now I would like to turn the call over to our CEO T. J Kennedy T J.
Good afternoon, everyone and thank you for joining us today.
After the market closed we issued a press release announcing our results for the fourth quarter and full year ending December 31 2022.
A copy of the press release is available on our Investor Relations website at IR Dot rap Dot Com, which is also accessible through our corporate site wrap dot com <unk>.
U R E P dot com.
We recently made a major overhaul to our IR website, which will allow us to more effectively house, all news filings and information that may be relevant to our investors.
As an example, we recently hosted the first two episodes in our ongoing series of Investor insight webcast, which are available for video replay on the new IR site.
And these videos I and the senior management team members showcased successful deployments of polo Rab provide further insight on current policing topics such as use of course.
We plan to hold these investor sessions on a semi regular basis. So for everyone interested in following our progress more closely I encourage you to sign up to receive or email alerts through our new IR site. So that you can stay up to date on our most recent news.
With these housekeeping items covered let's begin.
As an overview of today's discussion I'll begin by providing a high level summary of the fourth quarter and full year 2020 to be.
Four I hand, it over to our CFO , Chris Dealmeida to discuss our financial results in more detail.
Our president and Kevin Nowlan, who will then provide a progress update on our go to market strategy.
I'll, then close out our discussion before we move on into Q&A.
Q4 2022 highlights.
2022 was a milestone year for round, one in which we transformed our company, including our senior leadership team transitioned to the next generation of our safer policing technologies conducted a cloud VR acquisition to merge with our World class Rap reality 360, VR platform and also made significant progress with.
Mentation of our first multiyear strategic roadmap.
Our strategic roadmap now guidance, our company and changes the way, we work with law enforcement agencies around the world.
In 2022, we produce more bullet wrap devices than ever before.
And all of them are bullet wrap $1 50.
We sold more bowler up devices in 2022, with an increase of 179% and total device sales as compared to 2021.
Our gross profit was up 133% in Q4 2022 as compared to Q4 of 2021 due to product mix being mostly our higher margin polo, Ralph $1 50.
Gross profit was up 88% for the full year 2022 as compared to 2021. We believe this demonstrates the strength of our underlying business model and the effects of implementing our strategic roadmap.
In 2022, we reduced operating expenses, 19% or $5 million as compared to 2021 and improved our full year net loss by 28% or $6 9 million comparatively as well.
We finished the year on a high note building on the momentum generated throughout 2022 to produce record revenues both in Q4 and for 2022.
Our new go to market strategy implemented in the second half of 2022 is also continuing to gain traction highlighted by improved margins a record domestic order and a very large international order.
With our existing customer base, we are tracking meaningful increases in the number of assets sold per device.
Demonstrating that our technology is being used more often in the field and in training a great four runner for increased adoption and eventual expansion.
And our new go to market motion, we start discussing agency wide full deployment right from the beginning in order to see the largest impact and we have pulled back on pilots and smaller implementations.
As we begin 2023, our mission to deliver safe and effective policing solutions that save lives and save careers is more important than ever.
Amidst growing societal challenges wraps nonpaying compliance tools and innovative training technologies are well positioned to answer this call and we are responding income.
Underscoring our belief in the efficacy of our training and technology, we've launched a guarantee of a minimum 10% reduction in use of force. After the first 12 months of using bowl around for new fully deployed agencies, who meet certain criteria.
Over the next year, we plan to attend over 60 industry events, and we are exploring new ways to help us get more devices in more departments.
Our recent large agency win in Montgomery County, Texas as one Prime example.
While we've made great progress to date, we have most of our work ahead and we remain as committed as ever to our mission of ensuring safer outcomes for our law enforcement officers.
And the communities they serve.
I would now like to turn the call over to Chris to go over our financials.
Thank you T J and good afternoon, everyone moving to our financial results for the fourth quarter. In Q4, we generated net revenues of $3 6 million compared to $2 4 million in the prior year period, our Q4 2022.
<unk> revenue was a company record and a 50% increase year over year.
This was highlighted by the record deals in the Americas and a large deal in the EMEA region that T J referenced earlier.
Q4, domestic sales grew 250% the $1.8 million from 500000 in the prior year period, while international sales fell 6%, a 1.8 million from $1 9 million in the prior year period.
The small reduction in international sales as a result of the timing of one lower margin large cartridge award in the fourth quarter of 2021.
Looking at our performance for the full year net revenues increased 5% to $8 1 million from $7 7 million in the prior year period, marking the fourth consecutive year of sequential sales growth.
Inquiries for sales in the year was driven by strong performances in both the domestic and international markets promotional pricing associated with converting customers to the bowler F 150, which is customary in our industry is largely phased out at this time. However, we may continue to see some effects on the top line through the first.
Half of 2023 due to some agencies with long procurement cycles.
Gross profit for the fourth quarter 2022 improved significantly to a record $1 7 million or 46% of net revenue and over 140% year over year increase from 700000 or 30% of net revenue in the prior year period.
Looking at the full year results gross profit increased 88% to a record $3 7 million or 46% of net revenue from $2 million or 26% of net revenue in the prior year period.
This achievement reflects our shift to a higher margin product offering mix as well as pricing changes implemented in late 2022.
Yeah.
SG&A expense for the fourth quarter, 2022 increased 339000, or 9% to $4 4 million from $4 1 million in the prior year period.
The increase in SG&A was primarily the result of higher legal fees and bonus expense accruals for 2022.
For the full year, SG&A decreased $3 9 million or 19% to $16 4 million from $20 3 million in the prior year period.
The decrease in SG&A expense was the result of significant cost controls that were implemented during the second quarter of 2022, coupled with further realignment of overhead cost and staffing during the third quarter of 2022.
Share based compensation for the full year 2022 decreased to $3 2 million from $5 4 million in the prior year period.
R&D expenses in Q4 decreased $1 million or 54% to 870000 from $1 9 million in the prior year period.
Full year, R&D expenses decreased $1 1 million or 18% the $5 1 million from $6 2 million in the prior year period.
The decrease in R&D expense for the quarter and the year was primarily the result of higher development costs associated with the bubble wrap 150 in the prior year period.
Operating expenses for the fourth quarter of 2022 decreased 661000, or 11% to $5 3 million from 6 million in the prior year period.
The decrease in operating expense was the result of an increase in SG&A cost that was offset by the decrease in R&D expense.
For the full year operating expenses decreased $5 million or 19% to $21 5 million or $26 5 million in the prior year period.
The decrease in operating expense was the result of the decreases in both SG&A and R&D expense previously noted.
Going forward our goal is to manage total expenses to around 5 million per quarter for the foreseeable future, which painters as needed.
Net loss for the fourth quarter of 2022 improved 33%.
To a loss of $3 5 million or eight cent loss per diluted share from a loss of $5 2 million or a <unk> 13 cents loss per diluted share in the prior year period.
For the full year of 2022 net loss improved 28% to a loss of $17 5 million or a 42 cent loss per diluted share from a loss of $24 5 million or a 62 loss per diluted share in the prior year period.
The improvement in net loss for the quarter and the year was the result of an increased sales focus and cost containment efforts implemented in the beginning of the second quarter of 2022.
Our balance sheet remains strong with approximately <unk> $19 3 million of cash and short term investments to support the growth plan, we have in place.
During the fourth quarter, we burned approximately $4 4 million of net cash we believe we have ample working capital to support our operations for at least the next 12 months.
Moving to review of our key performance indicators in Q4 total trained law enforcement agencies grew to more than 1360 for a 32% increase from the prior year period.
In Q4 total certified officer instructors also grew to more than 5584, a 30% increase from the prior year period.
And 2022 we had 179% increase in device sales as compared to 2021.
Now I'll spend a minute discussing our current outlook.
Based on the company's financial performance to date as well it's information available as of today's call. We are providing the following updated revenue guidance guidelines for 2023.
As evidenced in the prior year periods, perhaps revenue has a seasonal impact and typically mirrors the budget cycles for our law enforcement agency customers, which translates into the majority of purchases occurring later in the year.
As a result, we expect revenue in the first quarter of 2023 to sequentially decline from the FERC fourth quarter of 2022.
Going forward, we anticipate topline improvements on both a sequential and a year over year basis in each quarter. After Q1 of 2023, resulting in a high double digit growth rate on an annualized basis.
New sales are expected to come from domestic and international expansion with existing customers and new contract signings in both regions.
Additionally, based on current projections, we are reiterating our expectation to achieve an adjusted breakeven.
Cash flow positive position by the end of 2023 and profitability by the end of 2024. We believe we can achieve this level of results by continuing to execute against our strategy of equipping more law enforcement personnel with the tools to save lives and save careers, while also providing new training opportunities.
Our rap reality platform.
In summary, the fourth quarter was defined by substantial improvement across our key profitability metrics and continued slowing of cash burn the.
The strong sales performance in the quarter and the cost effective transition from the polar up 100, the bowler up 150 led to a record quarterly revenue and record quarterly gross profit.
We met our goal of achieving a quarterly gross margin of 50% in Q3, and we're slightly below that in Q4 due to inventory adjustments.
2023, we're expecting gross margin to remain around 50% with improvement by the end of 2023% to 60% in the fourth quarter.
While we invest for new sales growth and greater brand awareness heading into 2023, we remain focused on diligent cost management to minimize cash burn and reach a cash flow breakeven point by the end of the year.
With that I'll turn the call over to Kevin to discuss the success, we have seen from our new go to market strategy implemented last year.
Thanks, Chris as P. J noted at the beginning of the call. We have continued to see encouraging results from our revamped sales approach that we put in place last year building. Our go to market strategy is a fundamental component of our strategic roadmap.
As we aim to build achievable and predictable sale in the U S ramp up our international sales and continued to expand within current department through our customer success function.
Driving new sales growth is a top priority for 2023, we continued to implement new processes and add members through our dedicated sales team with plans to continue building our sales infrastructure this year and going forward.
We have also continued to evolve the way we sell the bowler F 150, accessories, including improving air monetization efforts at a holistic level. As an example, we now began charging for training services that was a decision we made during air should T. J roadmap process that was consistent with industry.
Standards and has continued to be well received with given the value of our programs, which we provide.
Separately as T. J noted in the fourth quarter, we began to record increases in the number of cassettes, we sell per device, which we believe is a great sign for both increase adoption with existing agency and buy in from new customers as well.
In the past at typical sales contract would include approximately six cassettes per device per officer as of today that number now stands at 12 per device per officer. This increased capacity give law enforcement officers, the flexibility to deploy <unk> or effective training practice and ensuring they're prepared to use our.
Products properly in the field and driving safer outcomes in real life situations. We also strongly believe that officers to be using the bowler at more often than all the other less lethal pools on their belt combined we believe that when departments train could use bowler at early and often to deescalate situation.
Their use of bowler wrap cassettes should continue to grow.
Field officers that are using the bola Rab are more likely to use the device when they are comfortable handling it we realize that similar to a firearm at a gun range. He just cant filed the bowl wrap a few times and we expect it to have muscle memory and rely on that in the field you must use it multiple times to gain familiarity and to have.
It becomes second nature.
So far this has been something departments are seeing as well and ordering more cassettes within their initial deployment.
Montgomery County, Texas, one of our recently announced new departments activated the bowler wrap the whole deployment across the Sheriff's office, all five county comparable offices and the county fire Marshal's office each device with order with four at that point was that as.
As well so that personnel using them can gain better familiarity with our product than they ever did before and using that out in the haynesville.
This customer win with not only a success because of the size, but also because of the way. It was funded by <unk> County was able to use a grant to purchase our product because of the role <unk> plays in the mental health here.
From federal government officials down everyone's recognizing the value of all our App has an creating safer community. While also saving careers for law enforcement officials.
As a result, they are awarding grants to purchase bowler at we also now have internal resources dedicated to funding and finding alternative sources of funding for these agency looking to deploy the bowler at as safer policing outcomes come to the forefront of discussion we expect more cost sharing grant to become.
Common across all levels of government.
For some time and even more so now due to recent tragic events. We are seeing an increased demand for police training and we see this in police reform nationwide.
Throughout our community discussions within leaders of law enforcement. It is clear they are looking for different ways to train their agencies are V. Our training platform rap reality has continued to gain interest for this reason over the last few months, we've invest in even more time energy and financial resources to improve our capabilities and support.
Corning, what we believe will become the future of all police training.
On November 30th we entered into an agreement with low meadow and immersive training and assessment platform for the health care and public safety sectors.
So through this professional services technology acquisition agreement, we expect to soon begin offering upgraded cloud based training for our customers. This new platform will offer our existing and new customers and additional turn key cloud VR training solution with the critical high end type scenarios.
At rack reality has become known for delivering by partnering with <unk> and acquiring their existing technology, we can greatly accelerate our development saving considerable considerable time and cost versus building an entire dedicated cloud solution internally. We believe this enhanced platform coupled with.
Our existing rack reality solution will offer law enforcement more flexible immersive training solutions for both on premise and in the cloud further improving the way law enforcement training is done into the future.
Rap reality also allows us to penetrate new markets.
College, and University police departments operate and train in the exact same manner as other law enforcement agencies.
Recently, the police Department at Sam Houston State University in Texas implemented rap reality for immersive training to improve decision, making skills for events such as duty to intervene active shooter deescalation in situations bias training and avoiding uses of force among others.
Unique to rap reality of the platforms focus on increasing proficiency a verbal skills, which are often more imperative in a university setting as we continued to expand the market rates for rap reality exciting and high growth vertical will be a focus.
Overall sales have grown sequentially from Q2 onward, including record domestic sales in Q4, which is a positive indicator that our go to market motion is improving.
The public safety sector sales cycle remains slow as we are relying on budget cycle, but the rethink grants and direct funding from agency focused on de escalation and safer outcomes has been successful in 2022, and we expect to grow sales significantly over the course of the year.
Once the impacts of events from early 2023 result in changes later in the year. We have also continued to work to expand the market for bowler at.
Right now our product is only available to law enforcement agencies in the U S. But we are working hard to change the classification, so that groups like private security and health institutions can purchase the product given the direct need we can serve these adjacent markets as well.
We will continue to share updates on our efforts in these areas as we are able.
In summary, we continued to deliver our go to market strategy that is helping drive more consistent long term sale as we look to the year ahead. We are excited about the opportunity to deploy our products in new agencies and expect to start seeing more demand for expansion in the ones that we are not fully deployed.
I'll now turn it back to T J.
Thank you Kevin.
I am proud of the progress we have made thus far to execute against our strategic roadmap and transform the company.
We are now nearing deployment.
And agencies around the globe.
And I am confident that we have the right plan and are building the right team to continue to grow our recurring revenue drive stronger margins, which support long run profitability.
Looking ahead, we remain committed to delivering on our adjusted EBITDA and profitability outlook for 2023, and 2020 for respect respectively, while continuing to invest for top line growth.
Recent events have amplified discussions around D escalation.
Law enforcement agencies are looking for alternatives to paying compliance and that is where bowler wrap is playing a key role.
Many departments are deploying volar Rab early and often as an alternative to higher level use of course.
Which not only create safer outcomes, but also avoids expensive settlement.
Rap reality is also gaining interest as the public puts a renewed focus on how law enforcement officials are trained and equipped.
We believe with our recent addition of the adapt module.
And new cloud technology through our acquisition agreement with momentum that rap reality can become a crucial tool in law enforcement and corrections Department training regimens.
Around the country.
Our efforts are all part of a continuous push to improve the way law enforcement and corrections departments train.
This is at the core of <unk> mission to deliver effective solutions and contribute to the movement of safety outcomes.
We want to create positive change moving forward.
Now as we look to the year ahead, I can confidently say that we are making strides as a company and also making a difference in the communities that are using our products.
I will now turn the call back over to Chris to facilitate the question and answer session.
Thank you T. J, we now want to open up the line for questions from our publishing analyst as well as pre selected questions submitted from our investors.
Our first question will come from Craig give us of Northland capital markets Gregg. Thanks for joining us today and you can go ahead.
Okay.
Hey, great good afternoon, tea, Jay Chris and Kevin Thanks for taking the questions and congrats on the strong results.
I think first just regarding your outlook for the year could you maybe discuss what gives you confidence in those expectations.
And maybe speak to the level of visibility you have on future orders.
Sure I'll go ahead and cover this.
Just like Chris talked about we know that seasonality exists in the public safety market and we expect Q1 to be lower than Q4 was but we do expect throughout the year to have a fairly similar approach to what we had last year and that growth in Q2, three and four we definitely have a much better insight today into our pipeline than we did nine months ago. We spent a lot of time with our sales team.
<unk> are working through a real opportunities one of the things we started to do in the end of Q3 with our customer success team was reach out proactively to many of our existing customers and have discussions about them not just converting from Ebola Ralph 102, a ball or up 150, but also to expand in those existing agencies. There was not a huge focus on internal.
Expansion before now we're hitting that internal expansion in full deployment of patrol officers, both with existing customers and new customers. Kevin mentioned, one of our large customers have started their full deployment. We had another customer this week come in at full deployment to start off so one we're doing a much better job of talking through agencies about the value and.
Bits of going full deployment from day, one where their policies and every officers wearing a bowl of rap on their gun belt or on their vest each and every day at work and the value that comes from that we're also going back to the previous agencies to be able to have that same discussion and discuss where we fit into the use of force continuum for them and from a policy perspective.
And what are the outcomes. They can expect from having every officer deployed so our competence. This year's is kind of a twofold. A perspective, one is continuing to expand the existing customers. We have over 900 agencies in the U S plus our 58 international countries, where we are deployed today and expanding those out that expansion sale is a bit more predictable and <unk>.
Better for us to have ongoing conversations with those agencies. The new sales. We also have as we were getting more insight into them. We came off the ICP conference in October with a crazy amount of influx of chiefs and departments wanting to engage with us and move forward with a bowl of rap program. So we've been able to move those into long.
Term pursuits, they do take some time, but we have some some great insight into where those are going we're also spending more time with major county sheriffs in major cities chiefs across the country. The major cities Chiefs Association for instance, as the 79 largest police departments in the U S and Canada.
That association, we've won more contracts with those larger agencies not necessarily just the top couple but throughout that 79 and also we have more of those in our pipeline for this year in general they're larger much larger than the typical 25 to 50 person Department. We work with so we're seeing more opportunity more visibility in that pipeline, which drives more confidence.
Great good to hear.
And if I could sorry, if I missed this in your release, but.
Could you break out maybe device or launch our sales versus cartridge sales in the quarter.
And then similarly.
Repeat purchases from departments.
But I do imagine the vast majority of sales are made carbon sales if you could break that out that'd be helpful.
Today, we don't have that breakout of published Chris anything else to add to that.
No. We don't I mean, Greg we saw a significant increase and device sales throughout the year and as T. J mentioned in his prepared comments that includes all 150 devices. We did have a cassette and carpet sales associated with the ones that in the 100 <unk>. We're very pleased with the progress we made this year and really.
A lot of season in 2022 that should bear fruit in the 2023 and beyond as far as seeing that increase.
We'll look at giving out that metric potentially in the future at this point, we haven't broken that out.
Okay. It sounds good.
I guess lastly, any updates on the LAPD trial that you can provide.
Sure we continue to engage with the LAPD on their large trial in the Hollywood in central divisions, it's continuing to.
Be successful and they have an expectation at least than we do from them at this point that it's going to continue for approximately another six months that will be a one year trial deployment with the ball around $1 50.
I'll give an update in the not too distant future a kind of a mid year update internally on that and when we get that we're happy to share that update as well, but right now we expect that they will continue to work that pilot for the remaining six months of the pilot trial period, and then at that point make their decision on next steps.
Got it yes look forward to an update there, but I'll pass it on thanks. Thank you.
Alright, I appreciate it great. Thank you.
We also have a couple of inquiries from investors that we'd like to address as well starting off Kevin how have the efforts to increase recurring revenue been progressing.
Okay.
It's a good question.
Chris There are number of reasons why reoccurring is so important really to sustaining revenue, especially when you are selling into a cyclical vertical with an extended sales cycle as TJ mentioned earlier, such as public safety.
By building on recurring weekend build predictability rebuild scalability.
Helps visibility I'm also flexibility and expense management, but most importantly is retention. So those are fair assumptions that we're working on so we're building in what is a recurring model.
The bowl wrap standpoint, it's cassettes per device.
Whereas before we were recommending six.
That's per device balance 12, so we've doubled on that and it's not just a revenue generating but it is getting you know really the officers familiar with the technology and being able to repeat that motion with what they're doing we're also adding extended warranty.
We're growing our training opportunities as we discussed earlier, we've created a leasing model.
Now we haven't bundling of service packages and so we're also building on our early and often message and that builds a recurring because that stuff as well.
On the rap reality side, we've changed our model we changed our model from a one time enterprise purchased now moving to a SaaS subscription model.
We also can see.
Recurring on module creation, and we have support plans that are built into rap reality, but it also allows for bundling opportunities we recognize the value of that.
Ed.
That recurring bills for our shareholder base and we will continue to grow.
Awesome. Thank you Kevin. Additionally, T. J can you remind us about the upgrades from the polo, Ralph one hundreds to the bull or up 150 and speak to our R&D priorities going forward.
Yeah. So from a bowler of 100 to 150 perspective, there were so many different changes about 11 major changes between those two devices first off at the high level its about 20% lighter and smaller so it takes up less space on the gun belt and now that we have an expectation that every officer will carry it on that certainly that is critically important.
It's also a rated IP 63, which as you know Gil geared towards the industrial.
Build out and the rigor rating like you would see in a mil spec going to different levels and so that allows us to to sell it into the typical environments that police officers operate where it rains it snows a dust those things as well.
The anchor system is now a metal injection molded. So that's also improved the laser system went from.
No a a much more basic green line laser to a laser array with seven different lasers that makes it quite obvious and we're actually seeing more times that the devices pulled out in the laser is put on somebody and they give up right away kind of we call that laser compliance.
Because that laser so obvious in addition to the laser we were asked during the usage of the early below rub 100 could we add a flashlight built into the device. So it now has two leds like in two flashlights built into it as well and they can be turned on or off but most officers I really like to leverage that.
Different types of parameters and how we build the device which also.
Now is much more predictable has less total parts and it has much higher margins as well.
Battery life is probably one of the most important the battery life is almost four times longer. It's a two year battery that is in there. It allows us not to have to be charged every day before people go out to work.
On the the.
The indicators status. It also is an indicator of whether a cassette is in the device whether the electronic check of both the cassette and the device that shows that it's green and ready to fire and it doesn't automatic self check as part of that.
To deploy the device in a pretty big change we went from a three step process to a two step now it's just turning off of safety. The devices then ready to go ahead and deploy and there is a deployment button. So it's a very small two step process can also be used with one hand doesn't require two hands to use it anymore.
How it's powered very different from the previous 380 blank cartridge to now with the micro gas generator, which is very similar to what you have to ignite your airbag in your car and then overall just the fact its fully electronic deployment versus a mechanical deployment. Those are the major changes between the bullet or up 100, and the $1 50.
<unk> significantly upgraded device and we've been getting terrific feedback. This is also why we wanted to make this our baseline and device for the next five to 10 years. So that departments that are doing very large deployments, especially some of our international departments and very large U S cities that they can count on continuing to deploy the 150, even as we come out with new R&D products in the future.
Sure.
Today, we're working on a number of things with our R&D team and we have been a little more restrained in the total amount of spending we're doing in R&D, but we have not ended and we expect new devices and new technologies to come out in the future that support our safer outcomes for law enforcement and the citizens. They serve so we're continuing to invest we continue to file new patents.
And continue to be awarded patents that we've already filed in the past to continue to drive new intellectual property for us as a company and you'll see some updates in our 10-K on the additional IP that we've done in the past year.
Perfect and finally T J in light of the recent national tragedies have you seen any sit in discussions with law enforcement officials about follow Rob as you continue to speak with customers around the nation.
Yes, especially just in the past few months, we've seen a significant shift to a couple of things that I think are really important to all of our shareholders are one.
More often than not when I go to demo our present to an agency or two to chiefs to key decision makers.
We're seeing that they already know about bowler app that they already have a desire to have it and that they know it works and it's effective we have enough agencies now that most or talking to an agency that is successfully using the device today and because of that knowledge. It gives them the ability to come in and really talk more about how do we move into a full deployment of that agency and when we.
Look at the kinds of issues that have come up around use of force and duty to intervene we're getting requests both for rap reality and some of the duty to intervene technology, we have in our VR training system as well as the need to have bowler wrap fit into their force continuum.
What are the most important things we determined during the strategic roadmap in and changed our training curriculum was the fact that we know where bolo wrapped fits into and agencies use a horse policy and it's a bit different than where I think we started we now know that when verbal commands fail for an officer that is engaging with a subject who need to either be taken into custody for a criminal.
Event or taken into protective custody in a mental health or other situation that when those verbal commands fail as where <unk> should be used it's very early in those altercations in as Kevin mentioned earlier is something that's happening much more often we see this as a tool that should be utilized more than all the other less lethal tools that are out there.
And from the bowler Rep perspective, we believe that that early interaction actually D escalates situations from growing into something worse.
And it also ends up saving lives and saving careers of the officers and those subjects that they interact with so when we look at some of the desk that have happened in <unk>. Some of the cases that have happened. We showed at the beginning of this earnings call. The high speed Chase, but then turned into a foot chase that was ended with a suspect it was running away being wrapped up a buyable or up 150 <unk>.
The officer, and often Texas no. That's a great example, where that situation was D escalated in the call was over after that individual was apprehended and handcuffs after being wrapped.
And something that would have turned into a much more dangerous situation and could have had a much more tragic outcome.
Great at this time. This concludes our question and answer session. As a final reminder, we encourage you to visit our new website at IR Dot wrap dot com and even if you've previously signed up.
For our E Mail alert system, we've launched a new one it's got a lot more functionality to it.
We ask that you. Please re sign up again again, just go to IR dot wrap dot com or you can visit from our main page at <unk> Dot com. Thank you for joining us today and thank you for joining the <unk> technologies fourth quarter and full year 2022 earnings Conference call you may now disconnect.
Yeah.
Okay.
The recording has stopped.