$WRAP

WRAP TECHNOLOGIES, INC.

CIK:0001702924|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Total revenues, gross	$ 2,052	$ 1,012	$ 3,163	$ 1,778
Total revenues	2,052	1,012	3,163	1,778
Cost of revenues	507	525	927	695
Gross profit	1,545	487	2,236	1,083
Operating expenses:
Selling, general and administrative	3,644	3,181	8,999	7,266
Research and development	152	162	257	594
Total operating expenses	3,796	3,343	9,256	7,860
Loss from operations	(2,251)	(2,856)	(7,020)	(6,777)
Other income (expense):
Interest income	2	2	3	3
Change in fair value of warrant liabilities	0	(871)	0	3,158
Gain on lease termination	0	0	227	0
Other	(8)	(2)	(7)	(2)
Total other income (expense), net	(6)	(871)	223	3,159
Net loss	(2,257)	(3,727)	(6,797)	(3,618)
Comprehensive loss:	(2,257)	(3,727)	(6,797)	(3,618)
Less: Convertible preferred stock dividends	(162)	(164)	(411)	(328)
Net loss attributable to common stockholders	$ (2,419)	$ (3,891)	$ (7,208)	$ (3,946)
Net loss per basic share (in Dollars per share)	$ (0.04)	$ (0.07)	$ (0.13)	$ (0.07)
Net loss per diluted share (in Dollars per share)	$ (0.04)	$ (0.07)	$ (0.13)	$ (0.07)
Weighted average common shares — basic (in Shares)	55,731,095	50,609,509	54,871,126	49,439,838
Weighted average common shares — diluted (in Shares)	55,731,095	50,609,509	54,871,126	49,439,838
Product Sales [Member]
Revenues:
Total revenues, gross	$ 1,747	$ 50	$ 2,630	$ 359
Technology Enabled Services [Member]
Revenues:
Total revenues, gross	$ 305	$ 962	$ 533	$ 1,419

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows From Operating Activities:
Net loss	$ (6,797)	$ (3,618)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	111	304
Share-based compensation	3,403	2,435
Common stock issued for professional services	150	0
Warranty provision	31	2
Gain on lease termination	(227)	0
Change in fair value of warrant liabilities	0	(3,158)
Non-cash lease expense	75	(199)
Provision for credit losses	76	60
Inventory obsolescence reserve	73	187
Changes in assets and liabilities:
Accounts receivable and contract assets	(667)	(453)
Inventories	590	79
Prepaid expenses and other current assets	(535)	(156)
Accounts payable	144	(34)
Operating lease liabilities	(80)	197
Customer deposits	36	0
Accrued liabilities and other	(123)	(523)
Warranty settlements	(5)	(10)
Deferred revenue	(37)	(180)
Other non-current assets	103	58
Net cash used in operating activities	(3,679)	(5,009)
Cash Flows From Investing Activities:
Capital expenditures for property and equipment	(11)	(8)
Investment in patents, trademarks and other intangibles	(97)	(145)
Net cash used in investing activities	(108)	(153)
Cash Flows From Financing Activities:
Proceeds from private placement	5,000	0
Proceeds from warrant exercise	100	0
Proceeds from issuance of common stock and warrants, net	0	5,729
Net cash provided by financing activities	5,100	5,729
Net increase in cash and cash equivalents	1,313	567
Cash and cash equivalents, beginning of period	3,468	3,610
Cash and cash equivalents, end of period	4,781	4,177
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Reclassification of warrant liabilities to additional paid in capital	0	12,159
Dividends declared on convertible preferred stock	(411)	(328)
Dividends settled with common stock	$ 411	$ 328

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and Cash Equivalents	$ 4,781	$ 3,468
Accounts receivable and contract assets, net	3,378	2,787
Inventories, net	4,308	4,971
Prepaid expenses and other current assets	729	194
Total current assets	13,196	11,420
Property and equipment, net	89	123
Operating lease right-of-use asset, net	426	2,175
Intangible assets, net	1,603	1,572
Other assets	25	128
Total assets	15,339	15,418
Current liabilities:
Accounts Payable	764	620
Accrued liabilities	310	407
Customer Deposits	98	62
Deferred revenue - short term	378	408
Operating lease liability - short term	91	320
Total current liabilities	1,641	1,817
Non-current liabilities:
Deferred revenue - long term	7	14
Operating lease liability - long term	345	2,097
Total non-current liabilities	352	2,111
Total liabilities	1,993	3,928
Commitments and Contingencies
Stockholders' equity:
Preferred Stock	0	0
Additional Paid-In Capital	136,868	127,804
Accumulated deficit	(123,527)	(116,319)
Common stock - 200,000,000 authorized; par value $0.0001 per share; 55,857,933 and 51,733,217 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	5	5
Total stockholders' equity	13,346	11,490
Total liabilities and stockholders' equity	15,339	15,418
Series A Convertible Preferred Stock [Member]
Stockholders' equity:
Preferred Stock	0	0
Series B Convertible Preferred Stock [Member]
Stockholders' equity:
Preferred Stock	$ 0	$ 0