Wrap Technologies, Inc.

We appreciate your time and continued interest in WRAP. Before we begin, please note that certain statements made on today's call are forward-looking statements within the meaning of the federal securities law. These statements are based on current expectations, assumptions, and projections, and involve risks and uncertainties that may cause actual results to differ materially. Important factors are discussed in our filings with the U.S. Securities and Exchange Commission, which are available at sec.gov. The forward-looking statements included in this conference call are only made as of the date of this call, and we disclaim any obligation to update forward-looking statements except as required by law. Nothing on this call constitutes an offer to sell or the solicitation of an offer to buy any security. Any offering, if need, will be pursuant to an effective registration statement and prospectus. Unless otherwise indicated, our commentary compares the quarter-ended September 30, 2025, with the prior year period. As a reminder, we may reference non-GAAP measures to provide additional insight into our operating performance. Reconciliation to the most directly comparable GAAP measures are or will be provided in our supplemental materials. With that, I'll turn the call over to our CEO, Scott Cullen.

Thanks, Lou. Good afternoon, everybody, and thank you for joining us. The third quarter represented our strongest in the past two years, delivering $2 million in gross revenue, 12% of which came from subscription-based sales, suggesting a clear improvement in our core fundamentals. We believe it also marked a pivotal stage in our transformation. From being a straightforward device manufacturer, becoming a provider of nonlethal response subscription solutions, for law enforcement and for counter UAS operations. Through a series of coordinated product launches, strategic partnerships, and opening of our new U.S. manufacturing hub, we believe we are advancing our mission of safer outcomes while expanding our reach into federal, defense, and international markets. Beyond the financial results, we believe Q3 was a pivotal moment of traction and validation. demonstrating the strength of our technology in the field and the clarity and direction that now is guiding us forward. Over the past 90 days, data collected from 516 law enforcement agencies shows a measurable and accelerating shift in use of force practices. Bullwrap adoption continues to be on the rise. While we have observed taser, pepper spray, and baton use declining, I wish we could take credit for it, but it's the fact that the policies are tightening around the country, making it harder and harder to use the tools on the belt today. At the same time, we're observing a huge run-up in hands-on incidents. And as that happens, this results in officer injury and litigation expenses that far exceed the billions of dollars. Many times these events occur when the officer is at the highest risk, closing the gap of time and distance. That is precisely where our non-lethal response aims to change the equation. We are now seeing that when departments are fully deployed and properly trained, BOLORAP becomes the most used tool on the belt, allowing officers to recognize the opportunity to gain safely at a distance to a non-lethal and pre-escalation solutions. As of today, BOLRAP 150 has now demonstrated a 92% field success rate with zero reported deaths, zero serious injuries, and zero losses, a record unmatched by any other known or widely deployed tool in public safety. Departments across North Carolina, Colorado, and Kentucky are reporting to us that their BOLRAP deployments are outpacing taser use, even though there are fewer BOLRAPs in circulation. We attribute this acceleration to policy reform, community expectations, and command-level support across the country. And these conversations deepen. As these conversations deepen, we uncover a powerful truth. We realize that the successful non-lethal adoption isn't just about delivering device or providing training. The third critical element is policy alignment. That realization, that success deeply depends on, along with training student policies that are driving our evolution. We're now building a non-lethal response. Our president and COO, Jared Novak, will now explain non-lethal response, what non-lethal response actually means.

Thank you, Scott. Here at RAP, we're building a connected ecosystem of training, policy, and tools that are designed to work together to deliver safer outcomes, measurable performance improvements, and recurring value for our customers. I'll break that down into three areas. For training, our RAP tactics platform is a subscription platform. and it provides behavioral scenario-based officer training. It's now active in agencies such as Highland Park in Illinois, Lee County in Florida, both of which have converted to recurring subscription models that combine BOLAREP use with ongoing digital learning analytics and performance tracking. On policy, through our collaboration with Lee Tech USA, We're helping departments nationwide create non-lethal responses and those policies that align with it tactically. These aim to ensure agencies not only have the tools and the training, but also the policy framework to use them effectively. Beyond the BolaWrap 150, we've expanded our product family to include WRAP Vision, a body-worn camera system, and WRAP Reality, an immersive VR training platform. and now our new Merlin unmanned aerial payload, enabling drone-based response and interdiction. Together, these three pillars, training, policy, and tools, form the foundation of a recurring system business model, transforming what was a one-time hardware sale into a multi-year subscription contract that integrate hardware, software, and training. We believe this model creates scale, predictability and enduring partnerships with agencies by shifting rapid from a transactional sales to a long term systems provider at the heart of modern non lethal response. This advancement is also reflected in our financial results. While managed services contributed lower margin professional services revenue, the higher margin system sales driven by bolo rap rap tactics and wrap vision delivered the majority of our growth. We believe this shift towards recurring and integrated systems revenue is driving margin expansion and positioning WRAP for profitability. Our focus remains on scaling the business responsibly, improving efficiency, strengthening the balance sheet, and expanding high margin recurring revenue streams. And with that, I'll pass it back to Scott. Thanks, Jared.