Wrap Technologies Q2 2025 Earnings Call Transcript

Quartr
Provided by Quartr
August 14, 2025

Key Takeaways

  • Positive Sentiment: In Q2, operating expenses fell by 26% sequentially and cash on hand increased by 16%, marking the completion of restructuring and effective cost control measures.
  • Positive Sentiment: In the first six weeks of Q3, Wrap received more purchase orders for its devices than in the entire first half of the year, validating its new go-to-market pivot.
  • Positive Sentiment: Law enforcement agencies are increasingly choosing BolaWrap over TASERs amid stricter use-of-force policies, with no reported serious injuries or lawsuits and a favorable Barnes v. Felix ruling boosting demand.
  • Positive Sentiment: The introduction of Wrap Ready and Wrap Plus subscription bundles, which include an integrated cassette program and a learning management system, is designed to drive recurring revenue.
  • Positive Sentiment: Wrap is expanding into adjacent markets by repurposing its patented tech for a counter-UAS solution and rebranding its body-worn cameras as WrapVision, targeting defense, security, healthcare, and transit sectors.
AI Generated. May Contain Errors.
Earnings Conference Call
Wrap Technologies Q2 2025
00:00 / 00:00

There are 3 speakers on the call.

Operator

Good afternoon, and welcome to Wrap Technologies Second Quarter twenty twenty five Earnings Conference Call. I'm Lou Springer, Vice President of Finance. Joining me today are Scott Cohen, Chief Executive Officer Jared Novick, President and Chief Operating Officer and Gerry Ravigan, Chief Financial Officer. 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.

Operator

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.

Operator

Nothing on this call constitutes an offer to sell or the solicitation of an offer to buy any security. Any offering, if made, will be pursuant to an effective registration statement and prospectus. Unless otherwise indicated, our commentary compares the quarter ended 06/30/2025 with the prior year period. As a reminder, we may reference non GAAP measures to provide additional insight into our operating performance. Reconciliations to the most directly comparable GAAP measures are or will be provided in our supplemental materials.

Operator

With that, I'll turn the call over to our CEO, Scott Cohen. Good afternoon, and thank you for joining us. I'm excited to get right to the point. Momentum is building for Wrap Technologies across the industry, throughout our operations, and most notably, with a sharp increase in purchase orders. In fact, I can share that in the first six weeks of Q3, we received more purchase orders for Wrap devices than we did in the entire six months of the year.

Operator

The end of Q2 marks an important milestone, the formal conclusion of our restructuring efforts. We believe the benefits of our prior year cost control measures are now fully realized. Q2 also marked the completion of our go to market pivot, where we abandoned an unscalable costly model we knew was not working and in direct response to customer needs, built a renewed strategy and solution offering. Customers have validated the new approach with numerous agencies now using Bullwrap more than any other tool on their belt. And we're seeing a broader market validation and regulatory changes throughout the increasing restrictive policies around higher use of force.

Operator

I am happy to say that we're seeing positive results. Already in Q3, we've received new purchase orders for our new go to market strategy. We believe this increase in sales activity confirms initial success that we expect to continue. Later in this call, Jerry Radigan, our CFO, will shed more light into our financials. For those of you that have been on this journey with us, thank you.

Operator

Your steadfast support and belief in our company's potential have helped us turn the corner. And the results we present today are a direct reflection of that transformation. To illustrate the progress we've made, today's discussion will be organized into three broad categories. The first, market and performance and product performance. And why we believe this is a good place for an investor and a customer with supporting details, including market observations, Bollrab deployment usage, recent conduct conducive regulatory landscape and resulting positioning.

Operator

Go to market strategy and team readiness and how we respond to customers' needs and aligned and improved branding and messaging and strengthened our executive team to take our solution to market. And on financial and strategic initiatives, how our financial performance showcased cost reductions, cash flow improvements and key internal initiatives that we believe are now paying strategic dividends. You'll hear directly from our President, Jared Novak and our CFO, Jerry Radigan, as we walk through our performance strategy and what's shaping up to be an active second half of the year. Together, they will cover improvements in cost controls and operational margin expansion, revenue growth from our recently launched bundled subscriptions and expansion of the BolaWrap through repurpose integrations that open large addressable markets. They will also discuss emerging relationships with renewed experts in policing and respected thought leaders, both individually and through formal agreements currently in progress, further positioning the company to explore adjacent markets with such as global private security, healthcare, transit and Department of Defense applications.

Operator

We have persevered and now we have the clarity. So let's begin.

Speaker 1

Thank you, Scott. Our first section today is about market and product performance. BolaWrap deployments are increasing across diverse law enforcement agencies, ranging from smaller departments to large, influential agencies in key geographies, as well as specialized units such as school resource officers and crisis intervention teams. The net effect is a growing record of documented trust, effective integration and consistent field success. Agencies across Colorado, North Carolina and Canada, as examples, have reported strong usage of BolaWrap relative to their own inventory, while several of the largest law enforcement agencies in Florida are actively evaluating it as a strategic replacement for traditional electronic control devices like TASERs.

Speaker 1

Another major Floridian agency, their crisis intervention team reports more frequent BolaWrap use than TASERs, reinforcing the device's growing reputation as a safer and more appropriate tool during mental health or emotionally disturbed person calls. Now notably, to date, there have been no reported serious injuries and zero lawsuits related to BolaWrap deployments. That's a record uncommon in most traditional use of force tools. Historically, use of force data has been difficult to gather with many federal data sets incomplete or unreliable. Agencies are often reluctant to share their data unless there's a deep level of trust or established agency to agency relationship.

Speaker 1

However, through our own conversations with longstanding customers, we believe that many departments are quietly moving away from higher levels of force such as TASERs due to declining usage, high costs and safety concerns. The increasingly restrictive policies are promoting agencies to rethink their approach with a new focus on minimizing risk while maintaining control. Without better tools, officers often find themselves relying on hands on methods, which increases the risk of injury for everyone involved. These discussions reinforce what we have long believed. There is still no other effective tool to bridge the tactical gap between verbal commands and physical control.

Speaker 1

Officer injuries and lawsuits are continuing to rise and it underscores an urgent and largely unacknowledged need in modern policing. We believe our analysis reveals a clear pattern. In agencies without comprehensive wrap programs, electronic weapon usage is declining, while low level hands on control tactics are increasing. That's a dangerous scenario. It's leading to more officer injuries and exposing serious gaps in their current toolkits.

Speaker 1

In contrast, when agencies have a full wrap program and they've adopted it, they're experiencing a significant rise in bullwrap deployments based on their operational needs and it's now outperforming electronic weapons and higher level use of force incidents, delivering lower liability, higher success rates and greater safety. It's a good news story. Now I want to talk about the favorable federal regulatory changes. We know that favorable policies and legal precedents can drive adoption, they can help deployments and they certainly help sales. In Q2, we began to see the positive impact of some of these policy shifts, both domestically and internationally.

Speaker 1

Notably, in The United States, the unanimous Supreme Court decision of Barnes v. Felix was issued during Q2. This marks a noteworthy development in this regulatory landscape and favorable conditions to wrap. This case established a nationwide requirement that confirmed what we've known all along. Officers deserve the best tools, the best tactics and the best training to deliver safer outcomes for themselves and the communities they serve.

Speaker 1

The totality of circumstances test, Now a federal law uniquely positions the BolaWrap to meet the needs of today's officers while addressing the evolving legal landscape of liability. In q two, public attention and use of force tools intensified. With shows like Last Week Tonight dedicating a full segment to the dangers, risks and fatalities associated with tasers. When combined with the unanimous Barnes v. Felix Supreme Court decision and a recent unintended death in Central California, these events have amplified awareness and urgency around safer alternatives.

Speaker 1

And as a result, we're seeing measurable upticks in inquiries in our strategic discussions with customers and opening up new conversations about BolaWrap and its essential place on the beauty belt. Now if we're moving to our go to market strategy and team readiness in response, within the last quarter, we completely redefined our message and repositioned our brand in the marketplace. This wasn't intended just to be a marketing refresh. This is an intentional and strategic shift that has now recognized the evolved needs of public safety. We identified a strategic need to adapt to the federal regulatory changes that are eminent, the increasingly restrictive policies and higher uses of force and the rise of mental and behavioral health emergencies and launched what we call the era of pre escalation.

Speaker 1

We're not just responding to the moment, we named it. And in doing so, we've branded and established that Wrap is a leader in pre escalation. We believed that we could find a new operational timeline for officers, carving out and creating space before force is necessary, a moment when tools and better training and better outcomes can occur. This is what WRAP chose to operate in, called the pre escalation period. To support this new era, we introduced key terms that became foundational across our brand training and communications, terms like pre escalation and the pre escalation period.

Speaker 1

We also developed a new doctrine, the wrap window of opportunity, a critical moment between verbal engagement and hands on force where officers can act with control, clarity and compassion. But redefining a message means nothing unless our product, pricing and systems are fully aligned. That's why we relaunched the BolaRap 150, optimized our pricing models and introduced a family of integrated systems designed for departments to train, deploy and support pre escalation operations at scale. In short, this wasn't just a relaunch. It was intended to be a redefinition of who we are and how we serve.

Speaker 1

Wrap has evolved beyond being just a product company. We believe we have become the architects of the pre escalation era.

Operator

Thanks, Jared. As we assess the collective market, it appears that agencies want more than a single vendor for their solutions. They want an alternative provider offering tools that meet today's policing requirements, supported by a complementary, integrated and connected ecosystem of technology solutions on the duty belt. We are responding directly to the customers' demand and market needs, and we believe the success of the market leader in this space further validates that our path is the right one. As part of our go to market strategy, we completely rebooted our social media campaigns and our marketing activities.

Operator

We executed a full scale relaunch and rebrand to the WrapTech Inc. Across all social platforms, aligned our company brand and messaging with the new pre escalation narrative. Our content strategy was targeted and segmented with a focus on high impact viral ready content tailored to resonate with distinct audience groups from law enforcement professionals to public safety advocates. The results were immediate. We generated over 3,000,000 views in just thirty days, driving significant boost in engagement and follow ship.

Operator

All of this was accomplished with zero ad spend, a 100% organic campaigning that delivered authentic, measurable results without reliance on paid promotion. We've also updated our customer sales collateral. We've completed a full re refresh of sales and marketing materials to align with our new brand identity and our messaging for this pre escalation era. This included updated visual design, tone, and product positioning across all customer facing documents. We also rebuilt the website and expanded product specific pages incorporating detailed information about BoardApp 150 and real world success stories that highlight its impact.

Operator

In addition, we grew our online library of content, including body worn camera footage, media coverage and customer success stories to support sales conversations and demonstrate the value of our solutions in the field. Key to our go to market strategy is our team readiness and partnerships. A key Q2 initiative centered on outreach to strategic partners and advancement in agreements, set to be formalized and announced in Q3, aimed at either broadening our sales outreach or deepening our value proposition within industry leaders of training and tactics. We believe training is an absolute central to our go to market strategy encompassing both sales and post sales efforts that prioritize customer success. We believe police officers want to hear directly from officers about what works in the field, that peer to peer credibility builds trust that cannot be replicated or compromised.

Operator

These partnerships are developed alongside two paths. Deeper within law enforcement focused on the human factors, defensive tactics, arrest and control, and other core police incompetencies. Broader into other verticals, expanding into adjacent sectors such as healthcare, transportation, security, data sovereignty and other emerging areas of focus for the 2025. In Q2, we strengthened our leadership with the appointment of Jerry Radigan as CFO, a seasoned finance executive with over 20 experience across public companies, capital markets, investment banking and with enterprise scaling experience. We are fortunate to have Jerry's expertise guiding a critical function, helping to instill a financial discipline and operational rigor that define mature high performing companies.

Operator

We still have strengthened our operational talent with personnel leading our revenue, sales and marketing and commercialization efforts. Formal announcements of these additions are expected in the third quarter. I'll now turn it over to Jerry, our new CFO to share the financial report.

Speaker 2

Thank you, Scott. The last section today focuses on our financials and strategic initiatives. During Q2, we continued to execute on our enterprise wide cost rationalization program. As a result, we delivered meaningful reduction on our operating expenses. First, our robust cost reduction initiative is substantially complete.

Speaker 2

Operating expenses were reduced by 26% from Q1 to Q2 twenty twenty five, declining to 3,300,000 from $4,500,000 On a year to date basis, operating expenses are down 14% compared to the same period last year, dollars 7,900,000.0 versus $9,100,000 We believe these are the tangible results of our disciplined approach to resource management and efficiency. Second, we achieved cash flow improvements. Net cash used in operation declined by $2,200,000 for the first six months of 2025, down to $5,000,000 compared to $7,200,000 in the same period of 2024. Cash and cash equivalents increased 16% to $4,200,000 at 06/30/2025, up from $3,600,000 at 12/31/2024. We believe this is evidence of prudent financial stewardship and a testament to our commitment to operational excellence.

Speaker 2

Third, our strategic repositioning is well underway. Revenue came in at $1,000,000 for the quarter and $1,800,000 year to date as we continue to focus on customer acquisition, delivering an enhanced value proposition and executing our new go to market strategy. Finally, we took a proactive step during the quarter to strengthen our balance sheet. On 06/30/2025, we amended the terms of certain of the company's outstanding warrants, enabling us to reclassify the relating warrant liabilities to additional paid in capital on that date. This change eliminates the need to recognize mark to market changes in fair value through the statement of operations, thus reducing earnings volatility going forward.

Speaker 2

This takes us to our new subscriptions bundles and pricing models. Alongside our product marketing, rebranding and messaging improvements, we also enhanced our pricing models. While our traditional product pricing remains available in the Wrap Basic offering, we have introduced two new, more attractive subscription plans, Wrap Ready and Wrap Plus. These plans not only include our trusted BolaWrap devices, but also address a common customer concern, the price point of replacement cassettes. Both subscription tiers feature an integrated cassette program that ensures customers can replenish as needed, reducing uncertainty around consumable costs and allowing agencies to meet operational needs with confidence.

Speaker 2

Wrap is gaining momentum from Q2 into Q3. As we conclude Q2 and look ahead into Q3, we believe the increase in volume and size of purchase orders highlights a growing shift, one from onetime product sales to multiyear wrap subscription offerings. These subscriptions, including our newly launched wrap ready and wrap plus bundles, are supported by integrated cassette programs and are enhanced with a learning management system to effectively train officers on wrap solutions. We anticipate these valuable enhanced offerings aligned with our new go to market strategy will meet growing customer demands.

Speaker 1

Thank you, Jerry. As we wrap up our financials, I want to share some other select sales activities and initiatives. In Q2, Wrap applied for just under $1,000,000 in DOJ funded grants to deliver pre escalation tools, tactics and training across The U. S. Now these grant applications are currently under review, but they are noteworthy in our pipeline.

Speaker 1

They also represent an important first step. We believe a renewed focus on federal programs and funding opportunities positions RAPS to potentially access larger grants and support pre escalation initiatives at levels comparable to or possibly exceeding those historically allocated to de escalation efforts. While there can be no assurances, we are encouraged by the alignment between our technology and current federal priorities. And as previously mentioned, policy shifts are creating new opportunities in the 2025. Two major cities in The U.

Speaker 1

S. Have initiated discussions to begin pilot program testing, while another major city is seeking to expand its initial program and increase deployments. And tomorrow morning, we are planning to launch training in Michigan with our first Wrap Ready department in the nation, a department that purchased through grant funding and now joins us in the era of pre escalation. I'm also excited to announce that next week, Wrap Ready is expected to be introduced for the first time in the state of Florida at one of the premier law enforcement agencies in The US, Lee County Sheriff's Office. This new pilot program will train not only patrol deputies, but will also test deployment of our device with Lea County's corrections deputies, further reinforcing the operational scope of the BolaWrap.

Speaker 1

Strategic initiatives are playing a key role in the work Wrap is doing today. We believe our Q2 discipline and targeted R and D investments are now paying dividends. Most recently, we announced a counter UAS capability by repurposing our patented BolaWrap 150 devices, creating a novel differentiated solution for a large DoD addressable market, with significant international opportunities following closely behind. Our BolaWrap cassettes and capabilities have now taken to the air with the R and D initiative Wrap Merlin One. This prototype launches Kevlar tethers to physically entangle hostile drones midair, offering a reusable alternative to traditional jamming or interceptor tools.

Speaker 1

The initiative targets the global counter UAS market projected to grow from $1,900,000,000 in 2023 to $6,800,000,000 in 02/1930. And we intend to leverage our existing BolaWrap manufacturing infrastructure for rapid commercialization in both DoD and global defense markets. Another Q2 initiative now gaining traction involves reworked offerings and new partnerships within our intrinsic body worn camera business line. We have seen increased demand for North American made cameras to address data sovereignty concerns, And we responded by introducing solutions built for security in North America, featuring advanced encryption and industry competitive body worn camera capabilities. Accordingly, Intrinsyc will now be known as WrapVision, a subscription service with four gs LTE capabilities focused on meeting today's new data standards and privacy requirements.

Speaker 1

This is all supported by a complementary digital software back end for managing digital evidence and other file management needs across public safety and allows us to approach adjacent markets such as healthcare and transportation. Thanks, Jared. In closing, Q2 was a decisive turning point for Wrap.

Operator

We have successfully completed our restructuring, aligned our product, pricing and branding under a unified pre escalation strategy and delivered measurable operational and financial improvements. We reduced operational expenses by more than a quarter from the prior quarter and secured meaningful purchase orders, many under multiyear subscription models that start to build reoccurring bullwrap related revenue. Our field data and customer feedback suggests that the BOLWrap is becoming the preferred low force option for agencies that prioritize officer safety, community trust and reduce liability. We believe those achievements are visible in the marketplace, validated by customers and supported by the evolving regulatory environment that favors our solutions. We are entering the back half of '25 with stronger fundamentals, with many purchase orders received, a differentiated product portfolio and an expanding addressable market from law enforcement to defense, healthcare and transportation.

Operator

Our disciplined cost management, expanded strategic partnerships and investment in R and D position us for growth. We believe our market is dynamic. It's driven by police change and customer demand for safer tools. It sets the stage for continued acceleration. To our investors, our partners and our customers, thank you for your confidence in us.

Operator

We are committed to delivering the value, capturing the new opportunities, improving the Wrap's next chapter in the upcoming months and years will be the strongest yet. With that, Lou, let's open it up for questions. Thank you, Scott. We've had a few questions come in, and I'm gonna read them one by one. The first question is, how do you plan to accelerate adoption among law enforcement agencies in The US and internationally?

Operator

Look. This is happening without this is the market is What? Sublime. Okay. Yeah.

Operator

Sorry. Alright. Look, this is happening. I wish I could take credit. I wish we could take credit for this happening without us.

Operator

This is this there is policies being adopted now. We've mentioned Barnes versus Felix a couple times in this call. But there's policies that's a big shiny one. But there's other policies that are driving adoption now. That couple, we know we were training this wrong.

Operator

We know that we weren't being efficient with the officers' time. We were saying the wrong things. This is what happens in a start up. It's a new it's a new device for for for an industry that's really, really tough to break into. So it took a lot.

Operator

You know what? It really just took common sense of getting connected with the departments themselves, not just with the chiefs, but there's a training and the officer. So when you really get connected and before, was hard to get connected because we're dealing with distributors, we're dealing with salespeople, and a whole a lot of middlemen, quite frankly. But it wasn't until we really got close. Went to go see those chiefs, went to go see those command staffs, went to go see those trainers.

Operator

Get everybody in a room and start really discussing what success looks like. What are the goals of the program? Where are you having successes? Where are you having failures? And taking all that information, bring it back into back to wrap and having our team go through that information and come back with a a solution, a a hole that we were able to plug.

Operator

And it it took time. Yeah. It took a lot of time, particularly when we were rightsizing the business and going through all the drama that many of you know we went through. But I'll tell you, once we got back our once we got clear on what the message was, and what we got clear on what was necessary from the training side and the connectivity that was required, not through trainers, just just trainers, but through this learning management system to be able to deliver a consistent message every time and have that scale, that's when we started seeing programs start to scale. And when you see programs scale and when you see it's the most actively used device on a belt today, which I know is hard for a lot of people to believe.

Operator

It just it's not out there. It's a you you can't you're not reading about this. You have to talk to the people that have our product. You have to get and it's not everywhere. But the ones that are implementing these programs and having scale and having it be the most actively used device today, that is there's nothing they're doing that's unique.

Operator

It's great leadership. It's it's practice. It's commitment. It's city it it working in hand in hand with our city council. Everyone's in on it in some cases.

Operator

In some cases, just trainers. But when it all connects and we get connected to them and able to deliver these bite sized training lessons, you're really gonna I think whatever we're doing now is absolutely repeatable. Seeing four, five, six, seven, eight, nine times deployment data, nine times more. In some cases, actually, 10 times more deployed devices, deployments than any other thing on their belt. That's enough.

Operator

But that is absolutely repeatable, scalable, and we know that when we get connected with Wrap Plus, I think we could see it go much further. Jared, anything to add on that?

Speaker 1

Yeah, I'll just add that to really accelerate adoption, agencies are gonna be pulling it into their departments. And we have a huge gap. It's being more and more restricted to use higher uses of force. We've talked about that today. They're going hands on.

Speaker 1

So the gap in need is there. So in part, yes, we need to accelerate and do our job going to market, but it is being met with open arms because departments are acknowledging the problem. So we're finally getting that validation, a wide scale validation that there's a need, it's clear. Regulatory landscape is good. It's our job now to take those tailwinds and accelerate our go to market.

Operator

I'm gonna add just one little piece to that. We are actually getting thanked by some of our biggest and most active customers, even some of the small thank you for coming up with this type of support. Thank you for caring enough about this program. We hear that almost every time. There's no other vendor out there that's that's taken this kind of care.

Operator

We hear that repeatedly. And actually, that's one of the drivers making me lean wanna lean into this more. The fact that it's so unaddressed on the training side, the fact that we're just kinda getting connected with the customer in a in a in a different way. Not trying to just sell them something, actually trying to help for an outcome that we know is better. So our belief in the device and what we've seen through neighboring department or from departments and different programs has actually given us, I think, great strength to lean into this because we know what's right.

Operator

And when you hear from our customers thanking us for doing this, you know we're on the right path because they know it's gonna help them.

Speaker 1

Right.

Operator

K. The next question that came in is how do you plan to penetrate non law enforcement sectors? For example, corrections, private security, schools, hospitals. Well, we're already penetrating them and a lot of it is coming directly to us. It's fairly shocking.

Operator

We said on the call that we kicked on, we turned on social media. And the incoming inquiries is is again very inspiring to know there's much more given the fact that we just started. So they're good to us. We see the we we we understand the problems out there. We're hearing them on a daily basis.

Operator

So the fact that we've already in a number of hospitals and correction facilities, all that's repeatable. It's just a matter of scale. We weren't we weren't set up to scale. We thought we were through distribution. We were.

Operator

And maybe we were to sell it through distribution. The problem with that is you're not directly in touch with the customer. Once you get in touch with the customer, you can it's it's much easier to see this. And once you get the count of success and we can shine light on the success we're having now, it's spreading. We see neighboring counties, neighboring cities picking up.

Operator

We see certain states where they're having thriving programs, and it's going right from departments to corrections, to schools, to hospitals within that geological geographical area. So I feel like it's happening without a big push. Now we can get intentional about the one thing we have now that we didn't have is the data. Everybody's interested in the data. Now granted, I wish it was a robust set of data for years and years.

Operator

The truth is, we company didn't go to good job of getting it in the past. But now that we have it, I think that's the unlock. It's what's driving us. It's what's enabling, I think, all of us. It's why so many new talented executives that joined us, They're seeing it as well.

Operator

And when you could talk about black and white facts and show them the data, it it tells its own story. We don't have to tell it. The data is telling us what to do. So when you have a hospital, you have a school, you have a a jail, correction facility that's applying with success, that word, public safety is a very connected community. It's a very connected ecosystem.

Operator

And, yeah, if we didn't know it ourselves and have that data, how is anybody else supposed to know? But now that we have it, and it's just starting to spread, and we have an offering that addresses that need, I think you guys see the start to accelerate pretty quick.

Speaker 1

What also wanna say, we talked about regulatory change, Barnes v Felix. There was another piece that happened in late March of this year, 2025. It's HR 2,189, and that introduced a bill to congress about less than lethal projectile devices. That's what our BolaWrap is. And there's the potential of some declassification of the BolaWrap, which will allow us to go to the markets like private security and hospitals and other areas.

Speaker 1

We see that as a tremendous impact for addressable market. So everything that we figured out and now are doing right in law enforcement and public safety, those lessons learned. The video management system that we have, the learning management, all that is now poised to be applied in other verticals. So as we've gotten our operations into control, we understand our messaging, are reigning around pre escalation, all of that applies in many orders of magnitude over in these larger markets. That's what I see.

Speaker 1

And those markets will now not will appreciate that we have traction and recognize the law enforcement, thereby giving us the credibility to enter those new markets.

Operator

Are there adjacent product lines or technology upgrades planned in the next eighteen months?

Speaker 1

Well, yes, mean, it's not only planned in the next eighteen months, we were doing it now. We just did some press releases on a counter drone or counter UAS system. And look, I have a background in the government and Department of Defense and some operations, particularly in airborne capabilities. And when you say counter drone, that's historically known to maybe be a capital intensive endeavor. Well, guess what?

Speaker 1

This is not capital intensive. It's simply repurposing the BolaWrap device or the BolaWrap cassettes as they are today. And we all know that we have that inventory. So when we say the investments that we're making in Q2, those were investments in time and focus that they capitalize on the inventory we had already, but repurposed in a new way. And so when you see this counter UAS capability, that's basically in twofold.

Speaker 1

Yes. A UAV or UAS to UAS counter drone capability where we'll be hosting cassettes on that drone, but also a surface to air capability where you take the traditional BolaWrap 150 that's handheld and give you a quick reaction capability to disable and take down any drones that are immediate threat in your personal area. We know that's a documented urgent operational need downrange. And by doing this, it's very exciting for me and I believe for investors that this opens up the Department of Defense addressable market. And so as we look at adjacent product lines, it's a very smart way for us to take what we're doing now and move through partnerships and stand up that federal business line that we always had planned since the beginning of this year.

Speaker 1

Counter drone in UAS is just one opportunity. The other thing that we've done is now rebranded Intrinsyc, which was that recurring business line for body worn cameras and rebranded to WrapVision. That means better camera hardware. So at the edge, better components, better battery life, better resolution, four gs enabled if people want to integrate live feeds to real time crime center, that's operational and on. And because we understand data sovereignty and cybersecurity has been a long standing issue for many people across the industries, we now have partnered with cloud providers who keep that data within the respective countries, in our case in America, and it gives them the confidence that we're handling the data correctly.

Speaker 1

That integrated Wrap vision is scaled. It gives different tiers of support, tiers one, two and three, through our partner network. And it allows us to then offer greater bundling opportunities for those who may just want a body cam solution at a very attractive price to then also add on the Bolder Wrap capabilities and what we call Wrap Ready or Wrap Plus. So the net effect of all these things, smart repurposing of our inventory and better management through partnerships of increased capability for Wrap Vision, that combined effect, it gives us more than eighteen months of activity to grow this company.

Operator

And I just want to mention one of the new products that I'm most proud of and I've got quite a bit of experiences in learning management, the learning management training. We noticed, it was clear to us that we weren't connected with the customer. We had very little data. It was hard to get any it was hard to get them on the phone, let alone find out how the programs are going. So it didn't take long for us.

Operator

Once we realized that we had a connectivity issue, to be able to come back to market with a way to get connected, a way to directly drop training into the officers right right there to his phone and be able to access them. For the officer to be able to access these really important tutorials, training in burst size increments. We're talking about two to three to four minutes of training versus having to go into a classroom and sit for two days and spend twenty hours. The accessibility of this training and showing it in a different way, talking about it in different way, it doesn't sound like a big technological breakthrough, but I feel like technology's allowed us in an economic way to be able to deliver these really important training lessons that are absolutely gonna change behavior. And what gets me excited is these programs are already lifting without this.

Operator

So you can't tell me when you get connected with an officer and we're dripping in training and being respectful of their time in in content and and talk track that's a lot different than the past. And we were on that talk track and on the the the those these this trend because of all those lessons we've learned and the program taking the best when the programs are thriving to delivering that directly to the officer, it's gonna take usage to where it already is thriving to to to levels that I think are going to cause a lot more. It's gonna it's gonna it's gonna force departments to have to look at this because this pre escalation era that we're talking about this before and things escalate, this is a really important this is critical training for public safety that just has not been available. We're gonna own this space. We're gonna be launching other products into it around this, you know, in the next and and we're doing it now, and we'll be leaning more into it.

Operator

We're just getting started. But this is this is is gonna build credibility with officers. This is what we're being thanked for. And I think this is the beginning of really I think it's actually as important, if not more important, the device itself. If you don't know if the operator that's operating our device isn't trained properly or not be respectful of his or her time, you're just not gonna have the same effect out there.

Operator

And I think we've mastered that and we get to prove that in the next couple months. The next question is, what's the status of the company's move to Virginia, and when do you expect production to ramp up as a result?

Speaker 1

Hey. Thanks, Will. I'll take that one. We are fully moved into Virginia. We are fully out of Arizona.

Speaker 1

We have a production facility that we are scheduling with the state of Virginia to have an official launch physically and with terms of our inventory and people, we are fully in Virginia. And we're very proud to underscore to our customers, both domestically and internationally, that our products will be made in America in Wise County. We appreciate everything that the State of Virginia has done for us and our move there. In terms of production, it can absolutely be scaled. As a reminder, we do have inventory, which is attractive for our business now, but we have the knowledge documented and videos, checklists and procedures and the people on standby to start production and having QA, QC quality controlled devices on the product line now.

Speaker 1

We're ready to accelerate that in response to our pipeline, which we are is now a focus in growing. Internally, we've made investments into planning infrastructure and process and in looking at our supply chain so that any lead times that are required are sufficiently notified and that we're prepared to meet demand with the right notice. So I'm confident about the team we've built around that. Bringing Jerry Radigan in and his team are also documenting and scaling for the future. We see large demand in the future.

Speaker 1

So just to to kind of put a fine point on it, we're fully in Virginia.

Operator

How do you see one time sales versus subscription services as a portion of your revenues?

Speaker 2

Yeah. This is Jerry here. Happy to take this one on. Again, as highlighted on this call and through the q and a, just to highlight again the optimization plan internally of alignment within the organization without the new product launches. We're also doing that from a revenue generation standpoint.

Speaker 2

So we're designing product and service offerings to deliver more value to our customers, a customer first company. To deliver that value, we're refining our go to market plans, our strategy is transitioning from the one off a la carte sales efforts that historically had taken place within the company to more a reoccurring subscription based revenue model. That's, again, as Jared and Scott had highlighted, talking to the customers, learning more about their needs and what we can deliver on a more regular basis and eliminate the uncertainty of the customers and purchasing process. So at the forefront of this strategy, just focusing on the customer value proposition. And again, as evidenced by recent launches of our Wrap Ready and Wrap Plus packages and bundles, we expect those to achieve these objectives.

Speaker 2

Don't know, Jared or Scott, if you had any other comments there?

Operator

Particularly with LMS and the training model, which will be reoccurring subscription base. There's another bucket of money, dollars that open up to us. We've been selling the shiny object of the bowler wrap, which typically gets paid for out of a capital goods, maybe even forfeiture dollars. But once you get into the the training and the the subscription services, there's grant out much bigger buckets that I think we can tap. So I feel like this this is new for the business.

Operator

We're just exploring those that those buckets and and it's being really well received. So I feel like for our subscription business, it's gonna be a lot more money. It's an operating line that that's a lot bigger than a capital goods line. So we'll be I think we're gonna take full advantage of that coming up.

Speaker 1

And I'll just I'll just pile on just a little more. Look, there's nothing has changed. You can still buy one time stuff from us if you want to. If you still want a one but this we're making it easier for customers to get the full support that they need and across the different features we put into that bundle at a more attractive price. And to Scott's point, that allows us to go after training dollars versus operational CapEx dollars.

Speaker 1

So this is a positive, everything to gain, nothing to lose.

Operator

Next question. Last earnings call, you spoke heavily about procuring accurate data surrounding BolaWrap deployments. What figures have you been able to come up with in comparison to other devices used by departments you're partnered with?

Speaker 1

Scott, you want you wanna start that? You want me to start?

Operator

Yes, all right. Let me start.

Speaker 1

But let me just first say for the callers here, we as a company honor the confidentiality of our customers. So we hold that data confidentially. We have collected significant data. We have cataloged that and track it for both them and our knowledge and our insights. And so we just have to generalize this response to the state level maybe is the best way to go about that.

Operator

You would think when a company's got a product out there that sharing of information is very easy and it would just be right in front of we should have had it. It turns out in this industry and public safety, it's not so easy. It's it's very hard to collect this at a state level, at a federal level, and at a small department level. It's just it's it's been very difficult. But this is this is the crux of why we're doing

Operator

This is why we're backing the bed up on on the ball wrap device without great support from the company. Let's call it out with with crappy support from the company. Okay? Both which is training support, customer support. It wasn't there.

Operator

We had no information. There's a bunch of reasons for it. It doesn't matter anymore. What does matter is the information we got is driving this because there's no way with the with the with the development with the uses that we're seeing now in connected departments, it's absolutely repeatable. So you asked the question, have have we gotten more data?

Operator

What more data? Yes. We're getting more and more data. It's coming in. We're getting data through the trainers now.

Operator

We're we're we're picking up the phones. We're doing visits. We're calling. We're calling. We're we're doing plenty of calls here.

Operator

We're pounding it really hard to get this. But this is where the action's at. And this this is where I think the the the conviction comes from us. You know it's it's being adopted with very little support from us, with the right level of support at scalable, which we can offer. And we're about to show the world that we can offer that.

Operator

We're doing it right now. You're gonna see these these numbers start to go up, and we're gonna develop a a more trusted relationship with this sensitive information that will have a lot more data back. And everybody that we're talking to about Wrap Plus and we can't go out to the entire industry, we picked a dozen with full, again, thanking us for coming up with this. Part of the agreement is they're gonna share data with us. We think that data is so valuable that we're willing to give it away for a fixed period of time to get that data because I think this data is gonna drive the whole device adoption throughout the country, throughout the world.

Operator

And supporting it the right way with the that will give us the right to bring out this this the LMS. And from there, we start with Boll wrap training. Yes. But in short order, we get to talk about pre escalation and and and train in the pre escalation space. We're talking about persuasion skills, communication skills, how to make decisions under under stressful situations.

Operator

This is an area that is absolutely needed. It's under taught. It's under trained in this industry. It takes a long time to get access to it if you're lucky enough, and it's expensive. Guess what?

Operator

We're gonna make it available in burst like increments and economically and effective being respectful over time as well. And I think this is where you really start to get a lot more data because they're gonna feel comfortable. We're partnering with these departments, and I feel like this first dozen or so on the RAP plus launch, these are our partners. They want it to be used on a day. They want to pre escalate these situations.

Operator

They don't want to get into an escalated situation because they know what it costs. It costs officers careers. It costs a lot of money. And it costs careers. And it's just it's not acceptable anymore.

Operator

And the regulation and the policies around this are just getting stricter and stricter. So the changes come right on the forefront. Great. And before I read the next question, how are we doing on time that you need to, like, edit and cut this before fourth call? Should we cut?

Operator

Should we cut, Braden? You wanna

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