Q1 2025 Wrap Technologies Inc Earnings Call
Assumptions in this conference call contain or are based upon forward looking information and are being made pursuant to the safe Harbor provisions of the federal Securities regulations.
Such forward looking statements are subject to numerous assumptions, uncertainties and known or unknown risks, which could cause actual results to differ materially from those anticipated.
These factors are more fully discussed in the company's filings with the Securities and Exchange Commission.
The forward looking statements included in this conference call are only made as of the data of this call.
And the company is not obligated to public publicly update or revise them.
Statements made during this call do not do.
Do not constitute an offer to sell or solicitation of any offer to buy any securities securities will not not be offered only by means of a registration statement and prospectus.
Which can be found at www dot SEC dot Gov, unless otherwise stated all reported results discussed in this call compare.
First quarter two.
<unk> 2025.
Earnings.
<unk> Q1, 2025 financial results are as follows.
<unk> increased to $6 2 million up from $3 6 million in Q1 2024.
Margins increased over 21 points from 56, 6% in Q1 2024 to 77, 8% in Q1 2025 with cost of revenues decreasing 73, 4% from 640000 to 170000, respectively.
Operating loss improved five 2% from negative $4 1 million in Q1 2024 to negative $3 9 million in Q1 2025.
Q1, 2025 revenue was 765000.
Net income was 109000 in Q1, 2025% as compared to 117000 in Q1 2024.
Scott: I will now hand, it over to Scott.
Scott: Thanks, Good morning, everybody.
Scott: I'm going to unpack some of the progress in the first quarter.
Along with some of them.
Scott: Recent insights.
Scott: We are in the earliest stages.
Scott: Building out our business.
Scott: Along with leading a very important discussion.
Scott: Alright and use of force.
Scott: In this country.
Scott: 20000 people a day are arrested at 20% of the time. They resist that's 4000 people a day resist arrest and 90% of the time.
Scott: It goes hands on why.
Scott: Because theyre not theyre, not an immediate threat or theyre, having a mental episode.
Scott: And 10 years ago.
Scott: It was very different body cams weren't on the scene.
Scott: Policies habits shifted the way that shifting now and as a result of these policies dramatically shifting you're seeing big behavior change.
Scott: And the show of force in the use of force around guns to Todd's pepper sprays and tasers.
Scott: 50% of the time officers go hands on.
Scott: We're getting hurt.
Scott: And it's causing.
Scott: Very large bills to society injury workers comp lawsuits our policy in this country.
Scott: <unk> of dollars a year.
Scott: And up until now there have been no solve for this problem.
Scott: After six months.
Scott: T cons.
Scott: Conversations with customers.
Scott: Heartlands politicians.
Scott: And various individuals.
Scott: To get data from our program.
Scott: We finally have enough square.
Scott: Going to present, some some facts that.
Scott: To me has been the driving force of what we're doing here.
And to me.
Scott: The opportunity is to support what we're already seeing and I think we've got a path to do that.
But we're tracking I'm tracking over a dozen departments that are using the bowler at two to three even five times more than anything on the adult today.
Scott: And this is without.
Scott: Solid support from our puzzle.
Scott: And we know this was a new business. It was a startup six years ago, It's a new device get it locked a turnover of lots of change.
Scott: That's fine, but now we are absolutely clear the data is and the programs are thriving when more connected and.
Scott: And we're going to lean into that and support in ways that just haven't been supported in the past. This new training, we're about to introduce should accelerate deployment, making our bowler at programs obvious choice any time.
Scott: And officers going hands on which is 4000 times a day in this country.
Scott: We're proving that <unk> makes an officer safer.
Speaker Change: What's driving all of this is Jay that finally.
Speaker Change: It's not easy to get dissipated we've been at the seven years, we thought the FERC 10 body cameras or six years ago.
Speaker Change: We thought just 10 body cams would put us on the map and everybody, but rest of the country would follow suit.
Speaker Change: And then number went up.
Speaker Change: Sure.
Speaker Change: And then it went dark.
Speaker Change: Right.
Speaker Change: Defined out use of force.
Speaker Change: Sensitive topic.
Speaker Change: Even the FBI struggles with collecting I'd say, 60% of the cost report on it.
Speaker Change: But you would makes it even tougher as 50% of the time our customers.
Speaker Change: 50% of the customers are customers that have bought our apps don't even view it as a reportable use of force.
Speaker Change: So if they're not reporting it to their constituents.
Speaker Change: Our we supposed to do.
Speaker Change: And so it was getting connected with these customers and very difficult and sensitive conversations remember reduces of course active investigations are evidence.
Speaker Change: Okay.
Speaker Change: As you say the wrong thing or somebody gets a hold the data.
Yes.
Speaker Change: Reported.
Speaker Change: And suddenly have a federal model.
Speaker Change: And does that kick.
Speaker Change: Kick in and then keep lost control of your agency she said no.
Speaker Change: Okay.
Speaker Change: What's the.
Speaker Change: Yes.
Speaker Change: But now it's time to step into the light and executed.
James: Thanks James.
Speaker Change: The data.
Speaker Change: Thanks.
Speaker Change: Hi.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: So community community.
Speaker Change: We've been talking about sales and marketing infrastructure.
Speaker Change: In anticipation.
Speaker Change: Sure.
Speaker Change: Hey.
Speaker Change: A real sweep in this country to get this product out there because we see it's working and it's working in dozens of accountants to levels that were big surprise for us and we know that that we know that that's just a starting point and that's going to accelerate that when that does.
Speaker Change: It's going to make this device clearly the most actively use device.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yourself.
Speaker Change: But we've made contact with.
Speaker Change: By law.
Speaker Change: And the light needs to be something for everybody to see because it is.
Speaker Change: It's not going to go on notice this is a very sensitive topic.
Speaker Change: We've got to solve for something Thats, causing was touched.
Speaker Change: A lot of pain and a lot of money.
Speaker Change: We have the only hands on tool in the marketplace.
Speaker Change: More usage than any other.
Speaker Change: On the bell with connected customers.
Speaker Change: You made the right bet.
Speaker Change: With this device.
Speaker Change: And with the recent field data we see.
Speaker Change: <unk> received.
Speaker Change: We are clear.
Speaker Change: Device will be a standard piece of equipment on every officer.
Speaker Change: The data is coming from the customers.
Speaker Change: The data is telling us everything we need.
Speaker Change: We're going to lean into it we're going to make sure that this data is clear we're going to continue to get more data.
Speaker Change: And we believe now that we have the right people and the right strategy.
Speaker Change: To make these bolt.
Speaker Change: Graham thrive throughout the country and throughout the world and all.
Speaker Change: All the things that we've talked about and introduced on our end to end solution that is all coming.
Speaker Change: But first.
Speaker Change: We need to support the Bora because it's working it's working better than anybody knows including US and this is great news it's inspiring.
Speaker Change: And it's going to drive us to build out this business.
And create real value for our shareholders.
Speaker Change: <unk> put a place in public safety make a real place in public safety for the ball rapidly.
Speaker Change: So with that thank you all for joining we're going to take it into Q&A Jarrod is going to join me for that so Lou.
Speaker Change: No.
Speaker Change: Capped out for questions and I believe you have a.
Speaker Change: Eight or nine of them to hit us with.
Speaker Change: Yes, okay.
Speaker Change: Okay, Here's the first question.
Speaker Change: Doing to drive more sales and increased product awareness.
Speaker Change: Yes.
Speaker Change: Well I'll start with this.
Speaker Change: I find it to be pretty amazing, we've sold close to 30 over $30 million of the product without real data.
Speaker Change: The data was really hard to get but we sold that based on.
Speaker Change: What this product could do on what we thought it could do but now we actually have the data to prove it which is new.
Speaker Change: So we are collecting that and already <unk>.
Speaker Change: The conversations that we've had with some major cities some actually some departments that can the program.
Speaker Change: A major cities in the program.
Speaker Change: And just recent conversation with them on this newly acquired information and data.
Speaker Change: Already.
Speaker Change: Theyre looking to restart these programs. So I believe data is going to drive everything so let's just start with the data is going to get packages in a way for everybody to see what we're saying it will make it obvious that fall around lowers the use of force sales of both our workers comp officer injury subjects.
Speaker Change: Injury, and lawsuits and it's crystal clear with dozens of accounts and Theres No reason why that shouldnt be widespread throughout this country theres nothing those accounts are doing that differently because these other accounts can't adapt to.
Speaker Change: And when we tell when I've been fortunate enough to get in front of.
Speaker Change: So.
Speaker Change: Look for US we've tightened up now we've gone to a we're building up our sales and marketing infrastructure I said that on the phone just said this on the call.
Speaker Change: Okay.
Speaker Change: Youre going to see.
Speaker Change: Big focus now starting with <unk>.
Speaker Change: Sales and marketing because finally, we got the data which is our narrative.
Speaker Change: Data can drive decisions going forward, it's something that politicians will understand city leaders who understand.
Speaker Change: And Department Soares.
Speaker Change: Jerry do you want to add to that one.
Speaker Change: Okay.
Gary Nobody: It is important and good morning, everybody Gary Nobody.
Gary Nobody: Look we're not in the business of selling snake oil and that's how a lot of these conversations start when I talk about it we have responsibility to shareholders and to our communities.
Gary Nobody: And what we start with it.
When we have these conversations is what's the story is working and when I talk to departments in Colorado to Texas to California, New Jersey counts in Virginia.
Gary Nobody: When you really talk to them.
Speaker Change: Charles a surprise that it is working more and more frequently than they are even reporting or writing down. That's the hard work, we've done to make a compelling sales pitch to be validated and we have validated two trusted conversations because as Scott mentioned that data is hard to get the data systems.
Gary Nobody: Off report should it report in the future.
Gary Nobody: Absolutely that's the R&D effort, that's been a product road map, but right now we have what we have which are trusted conversations. So before we go out there and repeat the same mistakes as companies. Unfortunately over the last several years is to have a real conversation with real estate now.
Gary Nobody: Now that we have that validated value proposition with the product and the technology that we have just reported we're ready to put that collateral and scale it broadly.
Gary Nobody: First step is to have the right message.
Gary Nobody: For us is not to sell things when do choosy or inefficient and costly way, we have to find an efficient scalable way to sell.
Gary Nobody: Domestically and internationally.
Gary Nobody: So what we focused as we need a scalable and repeatable sales motion, that's where we focused our efforts in Q1.
Gary Nobody: I think we have in our recent earnings report that we've signed something significant.
Gary Nobody: Looking forward to announcing.
Gary Nobody: That way, we can address things broadly.
Gary Nobody: So I feel very good about the consolidated message about related product and trust that we're reestablishing because our brand or does it mean something.
Gary Nobody: So that is a coordinated sales marketing and product message.
Gary Nobody: Our priority is go to market it's Tom.
Gary Nobody: Scott, saying the time is now.
Gary Nobody: Okay.
Gary Nobody: On the question.
Gary Nobody: Are there any plans to shift sales efforts towards political leadership rapidly and police directly.
Speaker Change: If you don't mind I'll, just add real quickly.
Speaker Change: I am actually calling from Washington D. C. Today, the answer is yes, absolutely.
Speaker Change: A lot of these things you hear is about the use of force and use of force continue.
On a national and we use a forced conversation and so we all know if you look at that sort of things from it.
Speaker Change: The hands on all the way up to lethal and what we're finding ourselves is in a much larger and broader conversation and just kind of individual product. We're finding ourselves in conversations about consent decrees, which is an interesting.
Speaker Change: Topics and a national conversation quite frankly that I think will actually start servicing.
Speaker Change: My instinct that this will happen in short order.
Speaker Change: What are the major cities what are we doing in America. When it comes to addressing the critical needs that we see growing out in our communities. So we find ourselves.
Speaker Change: Adjusted with Chiefs of police the matter they are a key stakeholder.
Speaker Change: We're also working at a federal level at a political level because it takes a team a coordinated effort with the right leaders.
Speaker Change: Domestically.
Speaker Change: Able to with their international interest facilitate rooms international policing as well. This is a global issue and I know everyone feels that they see the potential this isn't.
Speaker Change: A huge opportunity it's on our responsibility is collectively the lead that conversation.
Speaker Change: So our sales and marketing is not just focused on the individual buyer, which may be leased.
Speaker Change: Or it may be.
Speaker Change: City risk manager.
Speaker Change: Actually coordinated through political motions, it's time, we do that Thats federal strategy and more recently as everyone knows we are actually able to scale through WT, one and their talented personnel.
Speaker Change: Industry and government contacts.
Speaker Change: Play today that are valuable for our cars and so we can.
Speaker Change: We have confidence.
Speaker Change: Asleep at the wheel here, we recognize thats a critical element to our planning.
Speaker Change: Are you getting on that.
Speaker Change: I'm going to add one thing to that.
Speaker Change: The same data that were now reintroduced can achieve.
Speaker Change: <unk> and.
Speaker Change: And everybody in our ecosystem that.
Speaker Change: We're positioning this product with the.
Speaker Change: The data is even if you get yourself to the politicians and we are seeing.
Speaker Change: Flashing and presenting them now.
Speaker Change: Even though it's not as completed stat is that like it's enough and we're seeing the reactions from the politicians.
Speaker Change: Yes.
Speaker Change: And they were able to position this before the way, we did and like I said thousands much solved but now.
Speaker Change: It's going to it should be a lot easier because we've got backup.
Speaker Change: It's not just about.
Speaker Change: The body cameras were great and it showed what it was able to see if that wasn't enough to know we are able to quantify it in ways that we haven't been before and I think this is the unlock where at that moment, where we just shouldn't be unlocking.
Speaker Change: The whole ecosystem.
Speaker Change: I'll give I'll give a concrete example that just because I think the numbers matter I'll give you an example.
Speaker Change: An example in Colorado again, because of the sensitivity of data I don't want to do.
Speaker Change: Attribution to the department level, but in the 12 month period into a crisis response teams or <unk> teams.
Speaker Change: Bowler wraps on the order of about 50 in a 12 month period about 28 times, which is.
Speaker Change: More than twice a month, when we ask them in confidence.
Speaker Change: Other uses.
Speaker Change: That's on the balance it far exceeds that.
Speaker Change: I would say that electronic weapons or below that number even though they are more electronic weapons on the ballot.
Speaker Change: Screamy validating to know.
Speaker Change: Empirical data measured even when <unk>.
Speaker Change: <unk> has a small number of deployment the frequency of use is.
Speaker Change: And even with a longer wider deployment of other things in their traditional balance.
Speaker Change: Less frequently used.
Speaker Change: This is validation that we do have a place you support to continue them, we have to give someone an opportunity do you have an advantage to do some things responsibly for their safety for their for the community safety.
Speaker Change: To answer this right now so I just wanted I think it drives home the point and this is the same thing that politicians want to know or where is it working but as the data and it's a very positive message I'm.
Speaker Change: Im going to just I'm, sorry, just on that or one of our largest majors.
Speaker Change: Major city of ours of largest customer.
Speaker Change: Spoken at 60.
Speaker Change: Six months ago, we had a meeting with the chief and its command staff and we ask about successful what a successful bolt correct it looks like to hit.
Speaker Change: And his response he thought about it for a second is a little off guard by the question hadn't thought about before but any reflecting instead usage shortly that might show this needs to be go to I want to see this be the most attractive.
Speaker Change: The device on the Bell.
Speaker Change: Yeah.
Speaker Change: And so we took that.
Speaker Change: So we kept that back with us and that.
Speaker Change: And we started focusing on really hammering down on the data and really looking at that end.
Speaker Change: The usage of the other devices is a major city year have dropped by.
Speaker Change: Close to 60, almost 70% okay. So here, we havent pacer city that granted or planning to take.
Speaker Change: Taken off.
Speaker Change: These symptoms.
Speaker Change: We've just retrain them.
Speaker Change: But policy wanted to place took the other devices Taser pepper straight baton of gun and dropped it by 65% and you know what happens now hands on.
Speaker Change: They are going straight.
Speaker Change: And it's become a hands on environment, and that's where we fit in.
Speaker Change: Usage is going down on the top because of the policy is becoming harder and harder to use what's on the call today are.
Quite frankly.
Speaker Change: This is kind of happening organically for us some of the policies. We didn't force these policies there.
Speaker Change: It's happening.
Speaker Change: And we're seeing it change behavior.
Speaker Change: I believe that's part of the tailwind that's driving deployments and we now have a way to better support.
Speaker Change: Our armed with our mistakes and some of our successes, but putting it together now presenting a new way to go to market in a new way to train that's starting to take hold.
Speaker Change: Great Blue looks better than excellence.
Speaker Change: Next question the rapid speed with community leaders as part of this outreach plan.
Speaker Change: No I'll take that in the past, we have and it's been and it has been very effective and they're still there.
Speaker Change: There are some efforts going on but to be honest.
Speaker Change: Not.
Speaker Change: To the extent it should.
Speaker Change: Yeah.
Speaker Change: This will be part and is part of our new go to market that will be unpack throughout this year, but.
Theaters are.
Speaker Change: Extremely important.
Speaker Change: And it's obviously groups' advocacy groups as well and and we're getting by it will reach out to these groups that buy in.
Speaker Change: It comes from really really easily and again I hate to keep beating this horse, but the data is.
Speaker Change: Supporting our thesis here so.
Speaker Change: There's going to be.
Speaker Change: There's going to be alliances and partnerships and yes commodity plays a big role in all that we need to lean into that.
Speaker Change: So look for that activity to start picking up.
Speaker Change: Okay.
Next question.
Speaker Change: How will the end of governance.
Speaker Change: Term and a potential new candidate impact wraps.
Speaker Change: And Virginia.
Scott: Scott I'll take that one.
Scott: The impact should be negligible.
Dave: This is Dave.
Dave: Mental became emergencies across America.
Dave: And in particularly in Virginia.
Dave: That applies to both sides of the aisle neither sidewalks.
Dave: Have a bad answer to what are we doing with communities in need kids with autism theyre going through.
Dave: Issue I mean this is.
Dave: A publicly visible issue.
Dave: Violence is not the answer on some of these many of these cases.
So the connections, we're making now and the momentum that we're building.
Dave: We'll persevere through political changes.
Dave: Granted in the Americas.
Dave: Topics that are horizon, the pendulum swings.
Dave: Is not one of them and so we're building lasting and trusted connection preserving.
Dave: Preserving the momentum we have now and in our efforts both in Virginia and federally.
Dave: The work, we're doing along with political leaders.
Dave: Our attractive right down the middle issues, and so I feel that when we do the right job and the right messaging the impact should absolutely be negligible.
Dave: Thank you.
Dave: Jeremy.
Speaker Change: And in Virginia, what is the current status of the Virginia manufacturing facility.
Speaker Change: I'm happy to say that the move is now complete our restructuring and cost associated with our announced done it's a tremendous achievement. It's led with outstanding team members.
And our organization.
Speaker Change: We are now completely out of Arizona.
Speaker Change: Facility in Virginia.
Speaker Change: Pereira facility as new building that was coordinated through governing Younkins office in Virginia economic development is underway and expected to be completed it ended the year.
Speaker Change: Given our inventory levels, which is a positive thing we're able to meet the demand as we see right now should we need to develop more bold the reps we have already in our inventory the raw materials to convert them to finished goods for both wrap 150 and the <unk>.
Speaker Change: So we're in an outstanding position. We've moved quickly we're now positioned in line fully in Virginia, we can meet demand with the existing inventory, we have new people and created jobs in northern and southern and southwest Virginia.
Speaker Change: And so.
Scott: And Scott.
I'm happy to report that that's all complete.
Scott: Great. Thank you.
Scott: Next question.
Speaker Change: Can you provide an update on international orders, specifically, Chile and Italy.
Scott: I'll take that.
Speaker Change: Okay.
Speaker Change: Italy, we don't have an update on.
Speaker Change: But let me just shed some light on Chile.
Speaker Change: It's a big bet for our company.
Speaker Change: Yeah.
Speaker Change: A lot of eyes on it obviously, so Chile started.
Speaker Change: I think the whole three maybe even four years ago and that started with us.
Speaker Change: I think we got the first device itself less than I was probably.
Speaker Change: Two years ago, they started off with 500, a double it and they went into 2000.
Speaker Change: And.
Speaker Change: What moved it forward was the result of a hat.
Speaker Change: Great.
Speaker Change: Our understanding is they've had hundreds of deployments.
Speaker Change: Which drove them to a decision that they wanted to standardize on this equipment.
Speaker Change: This is speaking.
Speaker Change: Made that public we saw it we saw that they pass a budget set up.
Speaker Change: For it.
Speaker Change: We are in.
Speaker Change: Regular contact with.
Speaker Change: With our with our team there.
Speaker Change: Yeah.
Speaker Change: We're being told it to this year event.
Speaker Change: Every indication.
Speaker Change: This year event mulch.
Speaker Change: Multi year rollout.
Speaker Change: And it's actually Theyre, indicating is much bigger than what we thought they told us which was.
Speaker Change: Is going to be full deployment around the carbon which is 33000.
Speaker Change: Officers and they've made that public so.
We were receiving the information like Youre, receiving the information, making it public.
Speaker Change: But every indication is that to go in.
Speaker Change: We anticipate and we've all been anticipating it but what's interesting about it is.
Speaker Change: We've had a lot of other countries.
Speaker Change: Indicate and let us know that they are watching and they're talking to.
Speaker Change: The Chilean police.
Speaker Change: About our program.
Speaker Change: But we're also seeing we're seeing acceleration in other.
Speaker Change: Other countries so.
Speaker Change:
Speaker Change: I'm very optimistic on Chile, it's obviously big for us.
Speaker Change: Guess, what there's a lot more countries out there and we've got probably 10 plus pilots going in different stages with National Police forces.
Speaker Change: So I feel like again as the data starts to make its way into the world and shows the usage here in the United States I think it's just going to accelerate everything that we're doing.
Speaker Change: Around the globe and the international opportunities here are absolutely asset as you guys know you can see what's going on with Chile, they've made it public but I don't see I really don't see how.
Speaker Change: This is going to be right for every national police forces around the world. That's my feeling on it I feel like this is a blockbuster product we're seeing the behavioral change right now in the United States with the data we're looking at and it's not just to this country, it's going to expand overseas. So.
Speaker Change: I feel like.
Speaker Change: The overseas opportunities just exciting as the domestic opportunity on the bolt Brad.
Speaker Change: Jerry do you want to comment on that.
Speaker Change: Alright, I'll just also add.
Speaker Change: When I look at Chile, which is a tremendous opportunity in itself.
Speaker Change: How can we replicate this elsewhere and part of that strategy is an accomplishment we had in the first quarter, which is bringing on at the former Chief banking Officer X in the United States export import bank as the adviser toward a company.
Maxim provides financing solutions for devices or technologies that are mainly assembled or manufactured in America.
Speaker Change: What are your whole proud to say that this is a bold around some of it in the USA.
It is financed both through some options and so Chile is an example, where they may do it themselves.
Speaker Change: The international interest and signals that that represents.
Speaker Change: Affords us the opportunity to use it as a model as an exemplar to other countries.
Speaker Change: Also have national policing concerns.
Speaker Change: Certainly Scott and I were also in D C being invited to the embassies of many countries and they are having questions with them and when we're sitting down with ambassadors.
Speaker Change: And then they're asking because Chile as an example in the public view its in the papers.
Speaker Change: What are you doing how can we have the same similar program.
Speaker Change: And each country is unique to process is a little different but thats our responsibility in response to that.
Speaker Change: In building out our sales and marketing engine is it repeatable motion, we're looking at not just a domestic and repeatable scalable domestic model.
Speaker Change: Have ways to know revamp our international go to market.
Speaker Change: We're all in a reputable publicly traded company.
Speaker Change: Beautiful ways to go in effectively with distributors, we're going to do that and so Chile is a wonderful opportunity by itself.
Speaker Change: Countries are heating up as well, we do have the inventory to address the need.
Speaker Change: Excellent accomplishment this quarter only increases the likelihood of having a U S bank backed financial solution to move into these countries.
Speaker Change: Great. Thank you.
Speaker Change: Okay.
Next question what happened with the LAPD testing of the bowl and wrap a few years back.
Speaker Change: I'll take it.
Speaker Change: Several years of a pilot.
Speaker Change: Did not go up.
Speaker Change: You can blame.
Speaker Change: <unk> fingers politics.
Speaker Change: Patricia our company leadership.
Speaker Change: Training.
Speaker Change: But there is a ton of excuses, but the bottom line is it just didn't go off the right way.
I've got my opinion on it.
Speaker Change: But I will tell you.
Speaker Change: Yeah.
Speaker Change: That.
Speaker Change: Not unlike any other major city theres been several well, let's put it this way theres been several high profile major cities that had lower app programs going on.
Speaker Change: That can their programs did not move forward. This was in the paper.
Speaker Change: <unk> talked about in the media.
Ed: And Ed.
Speaker Change: It looks like a pretty.
Speaker Change: It looked pretty dismal.
Speaker Change: A major city cancel or not going forward.
Speaker Change: But just recently when sharing.
Speaker Change: Data that we're recently getting it's totally change changed the conversation has changed the law said it put us in a different discussion.
Speaker Change: I would not be surprised.
Speaker Change: If la or any major city that.
Speaker Change: The ball rap program, but thinking about apart.
Speaker Change: <unk>.
Speaker Change: We will be in front of them soon.
Speaker Change: These results have been.
Speaker Change: Very hard time, believing that we're just not going to move forward with us because the data is speaking for itself. It's.
Speaker Change: It's not going to be easy nothing's easy.
But it's black and white.
Speaker Change: And we're seeing the reaction on the other side, it's really good it's real.
Speaker Change: Perhaps working it's working really really well.
Speaker Change: And we're seeing adoption and we believe.
Speaker Change: We have.
Speaker Change: Now, that's our methods and training and a way to deliver it that's going to take what we're already doing which.
Speaker Change: Quite frankly, it hasn't been a straight shot.
Speaker Change: But it's absolutely going to accelerate so look for.
Speaker Change: And other major cities, certainly, we're certainly going to be putting us in front of them.
And we believe it's so compelling.
Speaker Change: That theyre just going to have to start their programs again, that's my view on it.
Speaker Change: We're sitting on.
Speaker Change: Really good information that we just got it.
Speaker Change: Really in the last six months put it together, it's sensitive like Jared said, it's super sensitive.
Speaker Change: But it's our job and responsibility and our duty to get this in front of them and get to sit in front of the meter spread to work because it's working and it's working better than any of us knew.
Speaker Change: Great. Thank you.
Speaker Change: Final question here with.
Speaker Change: With all of these new hires and building something similar to crawl associates.
Lou: Hey, Lou.
Lou: Take that one.
Speaker Change: Kroll Associates is a model that I'm familiar with it and the answer to that is in some ways yes.
Lou: In some ways no.
Speaker Change: How are we doing something similar.
Speaker Change: We have tremendous talent that we were able to pull together more recently.
Speaker Change: Our press releases.
Speaker Change: <unk> releases of <unk>.
Speaker Change: Former leaders out of the FBI DEA intelligence community sensitive components out of the Pentagon.
Speaker Change: And so these are in.
Speaker Change: Individuals with highly accomplished careers that have global networks. Some claims with other Nash book lease or other government agencies.
And in that way.
Speaker Change: Model in some ways.
Speaker Change: Accrual has used to expand their global footprint informed trusted relationships in the private sector.
Speaker Change: Putting to use a lot of the trade crafts and methodologies and technologies that were formerly only use the government, but now are being given to private companies and high net worth individuals. So there is overlap in that way the way that it's different and I think this is very important to note to make is that.
Speaker Change: What's the revenue model behind it.
Speaker Change: Professional services, while it gives an immediate.
Speaker Change: Opportunity for revenue growth.
Speaker Change: Time is be bumpy and we know that we want to build a scalable technology tech enabled business.
Speaker Change: So the wins with dissimilar and I know cause.
Speaker Change: Is that what we're going to do is have these individuals be more of a managed service that support our bowler Rep program. Today. Many of these are law enforcement professionals that gave us the credibility and prestige.
Speaker Change: Technology requires.
Speaker Change: So when we look at our revenue model going forward and give continuous.
Speaker Change: Value towards the customers they are coming to our knowledge pool of experienced that is top notch.
Speaker Change: And a global leader of that.
Speaker Change: And when it comes to their investigative services or are there supporting technologies.
Speaker Change: It was wonderful and so as AI, but theres still a human connection when it comes to corporate clients Global 100 customers high net worth you need to have the experience and the trade craft to apply those technologies.
Speaker Change: When it comes to revenue models.
Speaker Change: We're going to have a managed service that's tech enabled and the recurring business line. There that is both bolsters the bowler rap program and expand our offerings to increase revenue.
Speaker Change: Expansion.
Speaker Change: And I'm going to add to it it was that.
Speaker Change: It was a thought and a theory before the acquisition, but we knew after.
Speaker Change: Lots of meetings with them.
Speaker Change: We realize they have reach.
Speaker Change: Deep reach not only in our state Department and this is across the world.
Speaker Change: And we thought that they could help us push.
Speaker Change: That information and country and help us push through advocacy.
Speaker Change: Cheyenne light out our program and get the backing from the U S and country and it turns out that some of our biggest opportunities right now overseas.
Speaker Change: We're able to work through our embassies and support.
Speaker Change: Our distributors and what's happening on the ground in these countries are ways that we never were able to do in the past in that.
Speaker Change: That is being well received with our distributors.
Speaker Change: Giving us another connects our connectivity point that we never had before and this financing option that Jared mentioned, coupled with Axis Bank.
Speaker Change: Okay.
Speaker Change: It's a very good value prop with good relationships solid relationships.
Speaker Change: Back.
Speaker Change: Whole careers.
Speaker Change: I think that that can work with the local on the ground blocker.
Speaker Change: Blocking and tackling thats going on with <unk>.
Speaker Change: <unk> reached through embassies and statements Department.
Speaker Change: <unk> Global network.
Speaker Change: <unk>.
Speaker Change: Yeah.
Speaker Change: It's really allowing us to get much more clear and get much more intentional about where to spend side.
Speaker Change: We're seeing the effect of that.
Speaker Change: And I believe its just its accelerating deals.
Speaker Change: It's actually making these opportunities bigger.
Speaker Change: No.
Speaker Change: The <unk> acquisition.
Speaker Change: It's just more than the investigative side is much more than that and it's actually turning out exactly what we thought.
Speaker Change: Russ.
Russ: Accelerate deals large deals overseas so.
Russ: Very pleased and I think we're ahead of plan already so they're doing great.
Russ: Okay.
Russ: It's.
Russ: Capability, we never had.
Russ: At the end of the day, you are talking about people and relationships and teamwork and.
Russ: It feels really good and were off to a great start.
Speaker Change: Barry I think is that the last one.
Speaker Change: That was the last question and this concludes wraps Q1 2025 earnings call.
Speaker Change: On behalf of our entire team we want to thank you for joining US today. We appreciate your continued support as we execute on our mission to create safer outcomes for officers and communities.
Speaker Change: You.
Yeah.