WRAP - Earnings call transcript Q1 2021

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Paul Manley

Good afternoon and welcome to the Wrap Technologies First Quarter 2021 Webcast. My name is Paul Manley and I'm Vice President of Investor Relations for Wrap. I'm excited for you to hear the progress we've made this quarter, as well as discussion on Wrap platform for enhanced training and avoiding escalation.

Joining me today are Tom Smith, our President and Chief Executive Officer, and Jim Barnes, our Chief Financial Officer.

Following our prepared remarks, we'll have a question and answer session.

question time a the ask may at during any webcast. You the do and on button. so to Q&A not please chat screen And your use tab of the the bottom

Arizona. outside visitors of been few headquarters I'm the limited. has see, very can the pandemic, you in As Tempe Because and of number our

a wanted Jim. you inside I brief I So give go before glimpse to join and Tom

go inside. let's So

midway now, our directly every and client your manufacturing come through XX,XXX our entry where team you And into services your device sales, and we we is our go left shipped. and of behind world behind As amazing engineers cartridge will every down is left facility. see, and assembled, lab. packed our on training area. is in where me, as can the testing our receptionary, This is this on me is engineers sit. foot square Also further And

forward-looking The do welcoming are these to SEC. in call, and earnings the press do to both constitute Now, this remind and our of actual forward-looking any as that in today Harbor not statements. Act of within statements unknown Those back comments pursuant risks filings With certain the completed. walk could statements call forward-looking Private you undertake obligation Such to uncertainties are the results as with are we room, statements made differ described of the cause the and the Litigation to and release materially statements. Securities have made made the provisions Safe we to of our of XXXX. Reform from update uncertainties and date to statements during meaning such subject our I of risks conference known today and forward-looking

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Tom Smith

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and this policing Wrap evolve Our direction reality today system is since the that is does headed. will we expect believe this training we

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are committed avoidance. We leader being in escalation a to

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consent our videos, quarter. this to some many complexities. Jim they often prohibiting more resolution you the first body agencies will type not from continue Presentation] in will products themselves which to we As can for and as use. come so our of stakeholders our since used are a to reminder, cam we and customers good The back, effective information and policies evidence news are due When share see that getting to available of public, more we are sharing financial how to details access are these videos made final easy and is have [Audio/Video provide with

Jim Barnes

solid QX XXX% quarter, year-on-year. represented of revenues had first Good compared to the revenues We XXXX XX% financial which the International achieve afternoon, of is XXXX revenue XX% of $X.X another we for year. quarter for performance. million growth

going grew there expect forward though our headwind in revenue and We up. is domestic movements. for we in be to and continue grow is regarding significant the continue But increasing hotspots pop our We that still going continues uncertainty in a challenged our lot growth continue defund line expectation forward. of first growth unrest a we the business our of top in part company. adapt. to be and evidenced reiterate Even COVID a to growth major quarter our will And agencies our XXXX. the by international to social revenue QX. is our trained police worldwide This to Travel

revenue However, sales. becomes could challenges, until materially revenues more to quarter, and travel stable, were have to especially our fluctuate the delayed international logistic growth inability our shutdowns environment quarter government

year. prior is the QX XX% mix not manufacturing impact future and we and with efficiencies, But predict were margins. increasing past quarter changes the in margins, mix should QX believe significant $X are on relied also expenses margins from QX we throughout quarter, and but trained first we XXXX for future demand we and and activities. expected $XXX,XXX important domestic have goal gross of an increase comparable continue million first and activism sales margins were administrative as Our the as demonstrations agencies, XXXX non-recurring Research we Development domestic $X.X gross costs, and consider earlier, shareholder to which indicator which somewhat product increased related these Product In future initiatives believe the international to approximately an an to general million training expenses Selling, we $XXX,XXX of indicator margins improvement to for make will be research of purchasing of and experienced mentioned and margins. cannot as opportunities. Tom on sales. that market expended increased and of included are We respond as of implement costs.

Our flexibility balance gives and to on sheet roadmap. our remains us execute the strong

for We QX. are My to the our in With turn will that, team Tom. with thanks performance. I entire pleased our to call work back finance financial their

Tom Smith

Thanks, Jim. as always. Great insight

business I like to you give Now our the for review would first quarter.

which is earlier three XXX metric. from have certified trained, We to nearly XXXX is their a As agencies I times strong up which up year-on-year. now and over at over March XX% had we fourth quarter departments, the train XX, highlighted officers

launched We believe sustainability, a you domestically, we have to will Wrap inclusiveness, as and individual governance doing as shipped governance environmental, corporate ESG. now strong have In examples integrated success. product also shipped term to social known business bolster of our now a are We is our to citizen. committed into ESG all product and future, more XX diversity, We efforts long recently that our XX to work good formal strategy. to initiative states the important see our countries.

the we efforts constant recognize formalize and right to our important business conducted improvement. way in is one, but We an have day have since inclusive to manner it

help complex proud community accomplishments of product are issues. solve directly our platform Some we particularly these

raw always health Tempe Our matters our and our in community focus coming facility. we not in products materials American corporate important a environmental overseas. and and are investors made limited in also major for ESG from customers but very Arizona, safety. employee only to have manufacturing protection, related is Safety responsibility, is internally, and

do good and larger committed look to the entire we'll collaborative and are as social move here organization this an and approach employee forward. we and our hosted business. our progress to environmental in part of We we epic We sharing as kickoff an effort culture recently it forward a take to Arizona, Tempe even with we how all becomes event

ISO certified quality several quality is strong motivation implication is continual customer The for milestone including of includes design, the management focus, scope became internationally XXXX training, principles, system. top and corporate on service. approach Another process management assembly, XXXX recognized The manufacturing, sales recently certification of standard our our company the for Wraps management, based and that and us improvement.

our behalf progress. with pleased entire organization, of on are our we So

police we moves which first We now officers to show and the COVID video drive And technology short are Despite headwinds have more highlight our are pandemic, rapid effective that we're the take you to difference by the safer. granted. for the of to make globe. related honored that we adoption to examples traction making and and across moving the calculated a never will continued to of police quarter the ability platform fast our getting. help more be watch I invite agencies

Paul its our outcome. We [Audio/Video and question-and-answer are the will After Presentation] proud video, of instance with each session I. Jim moderate and

Paul Manley

I That enjoyed was really video. you hope great. that

Northland are the Alan already with Group. But publishing with Klee Tom We're all Allen. will to you Thalmann, Jim. we Now submitted. Maxim ahead, Maxim, to with research you Ladenburg who go let's currently you each of Q&A going Wrap. questions our research capital Thank Thank three on start the start support. for markets for your from move and and great to analysts please

Alan Klee

which And good I Okay, opportunity. top in such is you hear to first you approach maybe more growth can a half to say year, given about what put environment. thought after a that, on expect little great. how little then Space, Okay, guys you planning the line me? International of the a it do in you you're challenges? big COVID about the I Could economic wanted very to difficult touch and talk a up the opportunity?

Tom Smith

Thank Sure. Thanks, Alan. you.

talked of the US we're great repeatedly. international, our to two And the well got obviously we've for And the it size years. year ground. next for working to business the It's distributors it's majority we've going XX it's about So the thing really is on market. where us be a times

XX different now in an shipped to network countries. we've these have exclusive countries, We distributor

do So there Thailand, Turkey, saw was demonstrations our India. was in there. these I we're still you think able highlight to video it effectively

So am of by lot those a I overnights. joining guys

a be lockdown they're would just again. of quicker earlier of I'm there we virtually lockdown progress. Turkey London go fact our again. distributors So in who's and then know able doing countries if have getting in on Obviously so trained that the went it are the to a to the lot questions answer being device perform actual that did use person to ground Jags in on that you talking on same over lot the full to Europe he's be in person the is there's demo, been today The full we the and

still we've this progress, getting challenges, we're able again, because join these gotten distributors and getting with great despite we're do a still orders, partnership even them because and these So we're to virtually.

that be then for nice gone through done in international So as continuing we've obviously. grow, space. I going Hopefully, as goal, that's think we continuing that's progress And because get vaccine, required And long I the our the I've our expect to to up. travel. through once believe your restrictions, it's we pivots pick to now to international

So I'm Jags set position. the with in same is that

up, So be will do the on we're those the I open as think we again, about that. with can again. have distributors as we And and very excited soon countries ground, that travel that doing

very things So now. right very going We I'm excited we're do pleased. what very in optimistic of still so the very half. And demonstrations is And on happy, to second going exciting us, half especially many year. got the second international for on for this

Alan Klee

Thank you.

virtual understanding training, give how to it you maybe little go market? distributors? reality explain same the that? your your us Just with For you're doing Is can on a

Tom Smith

Sure. Great question.

of year virtual more still we're help lot XX side. day. on the more a going classroom. two that And our that of planes, us once actually they're getting a with cadet to XX be changing because paradigm, take recurrent XX cost hardware once to this on training, your the twice right hours reality we're kind using feedback what agencies or you savings would in working a a going for The departments that right. of then the change used they intensively regular a there, present And where up do show a then talk mind we're to really And shift it basis through minutes lot retirement for to graduate, we're distributors also minutes, they in maybe me to may working in can much about our their improvement, or police on much and academies. So now go current for to is areas kind especially of where

it do can you just immersive, more much be to about going it's So anywhere.

giving that all talking with of training both and large to we're were other feedback. out out And cloud, lot filing then the a are of about agencies during to updates. going these are rolling so customers partners us that systems that how information we're smaller reaching us already across be storing it current And

about and I now, And continue events are our United on is using priority, quote, difference for we'll platform, it, skating to the going that that's top of And such policing. like Gretzky, why So nationally training, so distributor can about focused as this going current them then to in where to their we're the that States. we're for awareness that more use existing both to it's a to do with the really make customers when reality, our now at make focus. are to because the it is safe be to and we're enforcement going right well the going Wrap right it virtual focused law really Wayne get as getting is the sure training a demos look network, develop that in jobs on puck some make us relationships just be excited enforcement customers out we're mean, going trading you to talking really the to reality the current effective. on we integration with in integrate law is its using market our and possible best the the soon,

Alan Klee

margins. thought onetime goals was costs Thank heard numbers, discuss the with the there I quarter. question to you. say, I get to gross that then And your around in of what plan little actions important last of you XXX,XXX take was you is, which higher My a

SG&A was it way run so R&D quarter to of That's cost the and of and it. this where that kind rate x thank was you from is So much. think a

Tom Smith

running we was Well, an first, when saw every a we and about border, part his that that. thank of talk the during and day. you result margins uptick efficiently running obviously, really Alan, But of [indiscernible]

those Research our some we're from increase Development and manufacturing I That's to goals some that margin that, And and why material of that and as product XX%. changes that that will efficiency long starting and training investing over term reduce costs cost of in see before getting well between got the about margins. changes. we're in So talked help the as between that. products, raw focuses on space, we've

I'll do there, and let lot about a still kind where Jim the in happy work second of but of with have jump to very that's We here part. going. talk

Jim Barnes

I And that look totally Right those you moving we're now about Yes, at correctly, $XXX,XXX. nonrecurring of a identified as think of you staff. at it pretty you forward base. full, costs quarter look more x that that

huge That So to change XXXX. we we internationally, the but see a we good believe if see in increases right SG&A balance now base of over that will can opportunities that's at. not look

Alan Klee

you so much. thank All right,

Paul Manley

Thank questions. you, Alan, are great those

on Northland Gibbous move Let's from Greg Capital Markets. to

Greg Gibbous

Go Hey, question Tom, and sales. Paul ahead, the the taking Jim congrats on Greg. for and thanks Great.

on talk requests how seen know, Wrap you you the that Maybe a from get being coverage this recently, of quotes? Now trended bit Or impact guess are a demos? the we've awareness reflected year? those greater an I can in lot for have inbound noticing, little media you requests about

Tom Smith

Great Number we're so one is using question, are things. agencies to though, I two Greg. command absolutely, and you see enough, of can't agencies know, seeing, the body other cams And are critically kind important there's staff how the that body for emphasize it. cams, those

that's out in really love and getting them professionalism being that they situation's is things, so putting quickly Because, and why viral them And these releases, ending, videos, the forward. every the know, safely show putting these of they nobody next video, hurt. and press where being know, you in but you afraid on officer we're

was increase you our in has it see have times So where number over think over are the an obviously, instructors big we the key gone really few on, aspects a uptick, for And we've then seen over last XX%, here of here with especially last months, grown, that's and what's trainings, seen the three quarter. us. those year, last the number of numbers; why I training

it's platform our their in to really these a that's their a more experts going council, subject those in their because city the works, their officials available communities. to to So to reality giving and continue trained us see is And very, a robust where that really up, with difference talk we a And elected our are them the how coupled And fantastic, leading about is going. between about inquiries, what's the to solid, and those feel with future, excited. how make Wrap number domestically. for are making growth talk about good something very talk around pipeline this pipeline, coming watch that the we're all of which of to technology regularly, there train, and for of trends out our trending indicator number sure. matter the inbound agencies is that's agencies We and instructors demos, trainings, that's internationals

In all addition, making difference that getting of all news, leads avoided, again, that's it's those inbound So we're over inquiries receiving. from all on of kind of a number the right? we're really the

Greg Gibbous

Great, yeah, hear. that's good to

seeing think domestic should the with here versus the When that up we internationally? catch about follow I within departments here traction I the a but US? lot you're of One the up? that when you're know would smaller international success dynamics. seeing domestically, early growth of on in guess,

Tom Smith

get, they're there you that And we names, at a about, biggest we Yeah, if them knows years them for them but that for a company, a body my them that's life, saves not to almost finally to also like cam get right, years a the because took previous talking they're testing. orders was four also that Everybody remember it of I they many LAPD you through LAPD, They're and look we question. the time it one the long NYPD. work forward. this the process. when an small on are specifically agencies it's moving forward, are about slowest and those talk decided to my go names And follow took videos at the come going agencies. or previous an to great that know, a of names, do known map, up bunch on

So ones months, get measured I go then these on the that we've usually quicker, much these and are body much you the smaller us cams the that faster. big we can agencies people They're agencies, how mentioned, working. years, show as where

number you it's see of are use build, to just see [ph]. So momentum because that acquiring are I larger agencies as also continue it's, longer, a them that think this, going it, the agency they're to that But the dealing. lot take starting you and to

the where local is with coming defunding opposition You the know, that's their police and the all budgets. reducing for

City So that on are much just to officers with be going a harder we're still and are if same they're get much increased many LAPD, has versus to curious May, due staff take weeks. of of much next going do those just And of And agency they to easier training, to that their get couple officials, makes them going here they're to anything all take to an long say on are the budgets officers, can the figure know, of really how XX, to dealing know, it you It issues, what and until a sheer going they time, the out, trying command, about, not, XX, they have to time we are decreased? XX agency technology. to these page. which while sure have get quicker, people bring in size those just from But move. elected everybody's an smaller try them you a Council's for new very month them, can't the but I'm we announcement they expect have lot committees, with talking of to

ordering the a the forward gives obviously nail and small timing, great moving you bit we're for much is down largest come when are feel quicker us little of exact than really but large. to on put to be to are the future a number they'll is the hard in. timeframe trend I to And be I of it, the a then for them. So do that can't ones it'll of see going than can foreseeable other tell moving hopefully kick kind ones a a the those start with

Greg Gibbous

other that me, general that offering. comments, does years for departments of for was it on a wondering, I just the seeing sense. nice hear. first was I really agreement I to reality one to make see guess demand last training offering? And Great. virtual particular subscription the Good guess or that five of scripting

Tom Smith

great question. Yeah,

of this market that the when about that, So learning one still they're look technology. is, at we things

for in we've already lash got northern So know, large they're then trying there, we all Wrap the the demonstrations. the seeing it had guys him for adoptable case, out up a seen in signing after five training, they you understand for the through stick on, were there reality, I've the actually, [ph] of he they're already with to And doing to And And she's trained that. this were up of him and just example, he's recruits different some watching addition to the and York, and scenarios. the how some and technology, in them just that in and reached Wrap progressive day, kind out it. [ph] do up it reacted in value when And around hadn't into and year more change of use programs officers. bringing subscription, when early with the they coming that putting that, they small our New and

it exercises, used in immersive live in them. start live not their and when We're so thing it's it the getting area of XXX for every space. addressed we see it's really even in it those, of it's scenarios it. fire, have of things and those to Chiefs duplicate when really hadn't them that versus the initially. to you see training the one day you difference but never that believe this it's But a of to kind an lot So the see can and it, get you're direction lot in a a interest make But because understand fire but it's could really looking to immersing replacing in you around

So supported. really that's And hard training. an bedside you five have be keeping this duplicate make behind chief be I current weapons, to the you it. the there's all subscription, interest he's getting he's to this somebody without a the such that in to sure year looking your might would why at going all think is believer, officers, hardware obviously his And wants updates,

a just great agencies. lot getting reference of him going up He's for point display, there a other to this us be for you So, talking because are benefits started. know, to signing early we're

Greg Gibbous

Okay, great. Thank you.

Tom Smith

from, questions right other no. Any

Paul Manley

to very our you from Greg much, Thank Go Thalmann. Jon Hickman and John. right. ahead, analyst Ladenburg third on now All

Jon Hickman

clarify, XXX,XXX onetime the was you can Hi, expense? Jim, what

Jim Barnes

governance a board going saw during related are forward, forward. we're shareholder related that see we're board. that seeing the And structure matter growth some we involved company changes board you the was And as XXB's the shareholder of continue some in to and the and to the That think QX, on I of to changes and the the you'll governance move in improvements the activism seeing were activism this there. AKs

Jon Hickman

give you you some details for paid could Tom, about the Wrap how Okay, reality? get us

Tom Smith

do we model, as subscription different agency. a to right, so Yeah, each it's going be for

upfront, then want lot the funding do it advance. pay annual they a year us if times incorporated get they'll times, Other they in in So budget. of and a to that for five their

a to it's to quarterly what whether going preferences, of going And those their to budgets. that's upfront they're by the the the do or city or obviously, as pay be on So manager, they're again, approval to, City it really depend going the payment, going determined, basis. and Council annual it an on agency

then one longer gives a then revenue sign not know, that, to that stock in that looking forward there's you the on or that there. us and opportunities. the answer But just payments the city depending will they for terms order as commit balance So when comes sheet it obviously, corresponding term, the council the that future carry when department. on from purchase will revenue And those be

Jon Hickman

purchase So is separate? hardware the

Tom Smith

of part as the included package. is hardware The

and is that uses have laptops really can it options But on obviously using that use this And the know, for for just home, they high we're community But gaming have different of end to that gaming. you is the so is have. that. reality. hardware that maintenance you warranty lot at a the it, they at use It's there's would like, inexpensive. or depending relatively it's built And that stations that even really virtual desktop the would you home, of

compared simulators the know, of of around pieces to, hardware run So be But if look if whole of XXs then know, crazy you that XXXXs. may a $XX,XXX. are can it's to scenarios. they not number different one of Or you at XXXXs, not officers you expensive, hundreds

from it, coverage those it's build it something not hardware, obviously huge warranty that a need the they we we the into then because do hardware So expense. but they And systems. once acquire it's from manufacturers,

Jon Hickman

a some of what us idea you Can yearly costs? subscription give

Tom Smith

on to six we'll over next numbers the able And for as more the just breakdowns. it's little bit their we some want see is when city $XXX to with we're anywhere are couple of addition still subscription to or able of the our their Wrap But to $XX But that per of working And vendors you we're are more. be more opportunities, depends it They And that. lump So there's to again, number? approvals. you just options through so platforms, different share how in different kind per we out of want. be know, now, they officer bit be officer want presented to month, family, it some that selling know, or just still different could You per little options. working know, get a we'll with a they family, those months, clarity, those for reality from year it's clarity into issues. know, opportunity monthly different sum that so next there platform, right a a of some the it, budget the working per then with end, whether publish a to that want numbers. BolaWrap low agencies on include the their get officer variety and of through a the month, or you other bundling end per the some council numbers agreements, on And on there from they even there's high two BolaWrap include it's

Jon Hickman

I Okay. idea of what guess, existing give customers new last revenues came versus customer? question. of from you us Can an percentage

Tom Smith

because that agencies great XX,XXX. breaking and have a are we're new, we're XXX out question. XXX some only so And agencies at that yet, still know, That's you we

is reorders that getting they it full ultimately So through buying getting still basis we that out a at orders. from lot But deployment. coming that as of are agencies then and are roll new a are them are consistent that

the then me from full come in the also, visibility, So is deployment. new we which through purchases that each distributors, reorder there's get and cash categories, our And of as we're kind And for of seeing those. don't three they right.

and So they if their they buy in But don't we there, buy they're reorders. orders. not are ship visibility new warehouses, of own or through whether those have as huge

what including down, have really meaningful really now, seeing, the that to right distributors, just it's what's first a and So for versus difficult we're through break coming Wrap.

Jon Hickman

I Can one more? ask

Tom Smith

you Absolutely can.

Jon Hickman

talk discrepancy the the QX, you versus and QX kind relatively of between revenue, Can about the officers of which were flat? of from number to kind are trained

Tom Smith

for agencies demos so with a that doing which they an house, our have as an I want me, and programs. matter we're these trainings, of indicator to mentioned, expert for sales because subject as forward Yeah, of is to number move in incredible pipeline, start these

it's instructors then think for mentioned out experts really, there. we're trading, I seeing it's per between and lockdowns, me, of those the that we're the out means that or So of as are I coming increase, COVID, they're the coming trainings agency four two

they're they can it those technology, trainings, videos, be the because So really those sometimes to and orders drive then as body works, all in acquisition. to mentioned, And from covered how not pipeline, we right coupled that cam help people want experts, media that being of they daily it, they get the what's the units those going to the explain understand conversions to buy is really away. drive can't get and with I

they might that going do times two, or then four, buy three multiple So forward. but they'll

because because such it and of agencies will them. seeing. we'll for And absolutely chase international it's So don't really don't of continuing build drive. catch the that pipeline, I this that's getting But it we're just growth number will us, that's our how and what of see that aware that and again, does again, information revenue what's to I showing trail, know trainers which domestically build momentum of soon, it the is ahead out anytime a that those the technology that we're something that works,

Jon Hickman

Okay, thanks.

Paul Manley

much. covering analyst. Hey, Jon, very to right. three And All our again, thank of you thanks, all

some to the questions, submitted We'll I'll of of lot great And majority here. good a try consolidate of today. to this have one. we these can off with them We get start hopefully

With Wrap? the supply have issues been there pandemic, chain at any

Tom Smith

look no, ordered few if is them for I addressed what at now, that delay had that not. but pole in tent, we ahead be sure going We've call there we've by a have the long So, we've that. making a ordering right there to for ahead that

as going us had back to forward impact. So awareness coming lot And shutdown going have we had haven't people from are times down. that the any change lead to But the a to direct we slowed longer. raise online, was world of that there

then we planning of before, raw lengthy perspective, by domestically, are planning get through we bumped you longer a saw seeing our we it up addressing the there and to out those lead our being are But look little our what weeks, entering little any buying problems. mentioned materials don't that I And really those why to majority at so international and really then we're a caught affected we're ones bit. make a from delivery starting sure go trend a because are a in items And not that buying times we're taking that are. are inventory as time that's

had were goods us we we so the we which finished makes margin those needed, slows making sure to can shipping that more process in know, then You manufacturing raw and ahead converting the efficient. keep starting helps materials we that build house and that into

Paul Manley

Can there difference? force? the sold are good Is you talk one. sales And how about a another here's products please and both domestically your Okay, internationally?

Tom Smith

difference. big So a yes, there's

doing that a cover on another basis. we hundreds So have then calls, have of the demonstrations, are to daily all distributors doing sales those we distributors states. on the that And about agencies ground people those domestically XX the out talking

making So And that's outside traveling, we're insights taking that we're those supporting phone. the services our sales follow up process a getting our out now doing distributors. are those developing on coupled sure are with really that orders, staff team,

again, so as here And we domestically. we have XX,XXX agencies. kind steps And would to of serve multiple

all when all the makers, in the you up that of report Minister countries different of broad relationship, decision it's So coverage, or a we're because the to that a internationally, an Minister compare these Defense. exclusive Interior lot the it's to in of agencies usually,

And and those practice, approach to rules, uniform sales with aware us crop governing, consolidated So making allows want we're act and be aware end all we there. make compliance control it's to our those rules, on of things it export then also that much more distributors that of of. customers sure more them

it so very And for us. well works

then in internationally, to what we an they're customers XX, domestically and great you the extension they're XX out have what there. doing know us So distributors and they're demonstrating, of relationships, because

Paul Manley

Wrap talk take police Tom. you, one here police got recent and shootings the another reform public thank of training? the in killings. doing policing, with about advantage is all We right police What coming talk and media all Okay, and now to

Tom Smith

That's question. great a

not using trainings, is on activities Washington, but but from talk customers, other BolaWrap. as laws doing apprehension get mentioned going trainings lobbying very are different that a passed number a with pushed I That's we about the media, and the are forward of are only or or learn remote only talking attend working to Council's community of can leaders, that so states we the also funding demonstrations, technology, what in through to increase, these City basis our tool we're they restraint DC, device. huge from inviting So aspect to about tool mayors come regular help to seeing this number like a to in not training a police

do different So with to publicity. also doing, the of help number we're there's working a activities local them we're agencies that

for go big agencies local the those get look proactive to For driver community, so get example, promote story person or that. law media, media help, good getting get themselves the really that and is their so us that's these between within them outcome nobody showing that I of videos there it's contact helps make professionalism, enforcement, top officers that community. good body not local their that hurt to out with and cam agencies that it do mind, to think feel being and successful when really relationship a to That these

those out difference, making helping professionalism those body media ending national that show watching So put tend to is we're which we're how working they're and attention. with a partnerships get to badly, local officers, in take everything the humans not then from their media cams of different

drive activities of help doing that supporting lot in these those a each are and law to communities of then efforts we're there enforcement in well. local that So as

Paul Manley

you, Okay, thank Tom.

is protected how have Or Or one probably pending? a product you for your patent is Here's situation? Jim, patents? with any do

Jim Barnes

reported we work issued patent allowed. another had one a strong have in patents And we in team. XX-K, patent had nine weekly that portfolio we we with pending, Yes, we I the our had patents at the us XX first and quarter, another engineering

We of we patents; discuss this talk see engineering of team we could later in things filing we on terrific the almost have a a going is meet the year, you'll lab on we're patents have exciting that's wish coming every lab, about and that those filings. out we lot next that focused and weekly month. to new year, on And

So protection. portfolio and work the our we this it's feel about follow IP we very technology. and those area world that patent to protect diligently we throughout very an And strong

Paul Manley

Jim. you, thank right, All

for Jim here. maybe Another one

for lot cash your We are have sheet. your and on plans cash of balance is your What a the cash burn? what

Jim Barnes

$X the the that the million to cash Right statements. now in quarter our million is know, $X burn a you seeing in we're financial

and the our we focus to for virtual cash But increase. XXXX. revenues our on XXXX And as rolling the keep are reality down go that's products BolaWrap to that obviously the that platform. expect We plans out our have and focus for

Paul Manley

you, Thank Jim. All right, great.

good another more there you year incentive, of you? acquisition last virtual you reality, made the opportunity one, M&A there's for an out think Here's

Tom Smith

never at have to wheel, you never. not obviously, say technology forward. reinvent So opportunities bring we're looking to And but the always

we to find And moved forward the quickly. know, officers. trigger. strong very one tools we're long So of you with won't us always in do of it's it's hesitate what harm that's or and sheet as that opportunities, if supporting, that to pull is one of these training, we terms doing looking, as in know, to we're things access line It's the a but those going nice balance with really capital help again, that, you don't

right on look a out the nothing now, what's but there. So taking at table always

Paul Manley

All Tom. right, thank you,

you great another out? situations. life in with why that press the the one just these do Here's putting nice in came releases real cameras, device to working see But body

Tom Smith

and early. the is, the the are I to talk end mentioned it when do allowing rubber road that's And all in demonstrations these they're field. But best And to they intent as training. the So a to that there. the apprehension works, is today, show this about in to or tool. an it's happen that out were considered testimonial officers for we even showed even were in these confrontations not talk before, can we how these force, the meets it use the about presentation device Chiefs device tool, unless earlier quickly But something the else this an being of us that's really apprehension long scratched day and get really

that can early maybe someone use fight, this or that the to that's about so before before commits So a if this. pose threat subject we're And themselves else. escalates what's really exciting filling. you niche they to the before it That's

impact. order cam the which in So that in the mentioned, not it find helps enforcement But again, because proactive other body to is understand pushing we're are used. also the scenarios images it forward, activities be can different educate community only really taking it confrontations, there's those on law And country. agencies helps I the not it's around law world. domestically, a these that's and amount the huge now communities lower our between of just and Because tools of right it's find enforcement used, really obviously have end ways different different to hopefully here, divide force an being

there. not it that's for us speak. them not really news, the so is put critical again, being information have forward. officers somebody to was highlight that this that. purpose it escalated. why those to that really where these so safely, the out really Because, and just used to forward add put It's to able And things show let it's So to start videos scenarios selling could uses, starting when before all they and about of resist, get media these the these thinking going those different cam That's body

work do with do to as and that that have we the So well. to agencies

Paul Manley

All right, Tom. great. Thanks,

We few. know have a questions for we're top the the We'll in. lot time have bumping of hour. great a I come up against still of

one. UK? design the that? the on the elaborate going you How great Can the on I improving collaboration are in working things know Here's in you're product with a UK.

Tom Smith

quarter obviously been [ph] we different funding to their had reported program look working grant a we've So at we that going last through forward. their application aspects critical Dasa BolaWrap received felt they there, that for of the was

we're in them continuing be and still to product to want again, the over for other conversation, talk testing So work we're things them, to pretty here some soon to still getting they that some actually going with constant about.

with continuing different London drive So to that there communications home has being Jags forward. are Obviously the the office. in great agencies we within

able that others And next drive we'll over to in optimistic efforts to on, we're be in hope working So talk future. our with where us to it's and about that the the very R&D about next out of especially going gen helping this foreseeable some products helping some is the and we're some prioritize roll of future, go.

Paul Manley

you And kind employees, product and going and manufacturing it employees as here your you I'm a Tom. All couple of manufacturing number sorry. within And our to of a you are anticipated you of combine thank I you, here, finished try talk how orders, building to And inventory then talk of about going have? facility? your it right, says await So as I'm products? to you that combine guess about do finished many can the currently manufacturing?

Tom Smith

And keeping flowing. an is those impact domestic and the than bubble orders growth we to because efficiency wanted we're helps we're really material So to usually year. the That's roughly now goods. we It's employees over why That's focus last keeping margins that absolutely of they're building us larger a production orders. on we finished because international right efficient. also of where our were And our flow the that XX tend be company. yes, saw the

to keep not That's in really goal. we're to If smooth, that having efficient, the keep surges can it keep production. we you So know, people working. react

have inventory we pushing continually are finished are that and we inventory the against So versus what is finished going we that what been orders manage think to goods past what driving of goods shoot to are personnel. kind XX get average going to what of rolled we we then over And blended of to in production a try out terms for numbers months be. and that features

decent. through, margins on clicking think some I it's doing as we've that pretty that, on we're focus addition So And the margins our material to obviously seeing improvement working been we our, we're in on.

Paul Manley

Tom. Alright, you, thank

running up of last question, the hour kind we're one going as know, against have here. the forward? what for I Wrap see do biggest You you catalyst

Tom Smith

sometimes obviously it's on really are a have say hardly we're we're would activities, to internationally give three a types now ago, that to I those year you tell, catalyst, know, I here of just materials, experts, we're we this I starts we're little just you the to week, then putting if have the being especially because press many or government's releases the up continued get then PPP any we or so things out Biggest things. because to this again, and that pick vaccines as relaxation didn't weekly, subject can matter delayed or them can there. because we getting just talked prioritize And number PPD two having of of cams, going trainings, the of number a travel, materials, see lot them these being the a COVID, acceleration sort some about us think of of of body

can in we've So, released the COVID. we things as at get news come out a got the of that will queue lot good think is, I

doing budgets at to talked them address across help wrap really come that and the easy point office, and duty terms And really able more and away, these to play a continuing to tackling uncertainty customers. our people the the the of just on. the being in then these into that's really officers travel, our manufacturing, help can the We're come in solving of we our then trainings both with with to goes the to that Wrap Here, platform aspect least that's back and company, through problems going we're on it's you to blocking problems stay for about, that's Because front BolaWrap. and from BolaWrap, out reality, great technology because things to solutions going to reality training focused technology these the that what problems. execution from we're and know, domestically,

Paul Manley

Thank a did that's all question for to think questions. you great end I submit that you Well, the on.

question the know, have you I If your can we of you running email a at to pmanley@wrap.com did please we're still lot know get not me up And soon get but answers. hour full a will as as answered, I you back get you now. I and.

Tom joined today. now call I'm for you who call closing thank thoughts. to turn the for our his everyone to going back So over

Tom Smith

some Thanks, we're and you a just sense, We has Paul in who thank everyone us afternoon. joined accomplished quarter. getting for this lot started. this But

me. right right enormous. the team the Our And path. around clear the We're on got is opportunities and I've vision

finally, our a going That's Dominican video. we're week time. occurred an just one one that really this it's This training So last And that's been in exciting Republic. event of is show going international the to the with social and was their it in and out Minister of the office released Dominican on that put minister himself. Defense, produced actually own by on the Republic they meeting media

with. we're video it's a about will end very excited something minute So about

we everyone, you Have Have We results. talking great when thank late in would you. to look you talk about to today. So Thank a July our forward tell tuning time. QX a evening. in I great to can like for

Wrap (WRAP) 30 Apr 212021 Q1 Earnings call transcript