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Wrap Technologies, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenues to $593,000 from $3,631,000 in the same quarter of the previous year. The decrease is attributed primarily to lower sales in the EMEA region.
Cost of revenues for the quarter was $358,000, representing 60% of sales, compared to 40% in the same quarter of the previous year.
The company reported a gross profit of $235,000 for the quarter, compared to $2,177,000 in the previous year, with the decline attributed to lower sales volumes.
Selling, general, and administrative expenses decreased to $3,334,000 from $4,317,000, reflecting cost containment initiatives.
Net income for the quarter was $1,990,000, compared to a net loss of $2,783,000 in the previous year. After preferred dividends, net income attributable to common stockholders was $1,673,000, compared to a loss of $2,976,000 in the previous year.
Cash used in operating activities was $6,919,000, while cash provided by investing activities was $7,363,000.
Wrap had a working capital of $1,591,000 as of September 30, 2024. The company acknowledges its dependence on future revenue growth and cost management to meet future obligations.
The filing also details the issuance of Series A Preferred Stock and warrants, which are convertible into common stock under certain conditions.
Wrap Technologies continues to focus on marketing its BolaWrap and Wrap Reality products to law enforcement agencies globally, despite challenges in market conditions.
The company does not anticipate cash dividend payments to common stockholders in the near future.
Wrap Technologies identified a material weakness in its internal controls over financial reporting due to a lack of resources with SEC financial reporting experience.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Wrap Technologies Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.