Wrap Technologies, Inc. reported significant financial changes in its 10-Q filing for the third quarter of 2024. For the three months ended September 30, 2024, total revenues decreased to $593,000, a substantial decline of 84% from $3.6 million in the same period of 2023. For the nine months ended September 30, 2024, revenues were $3.6 million, down 34% from $5.5 million in the prior year. This decline is primarily attributed to reduced sales of the BolaWrap devices and accessories, particularly in the EMEA region.

Despite the drop in revenue, the company achieved a net income of $1.99 million for the third quarter of 2024, a notable turnaround from a net loss of $2.78 million in the same quarter of 2023. For the nine-month period, net income was $1.72 million, compared to a net loss of $11.82 million in the previous year. This improvement in profitability is attributed to cost containment measures and a reduction in operating expenses, which totaled $3.9 million for the third quarter, down from $4.9 million in 2023.

Wrap Technologies' total assets decreased to $18.8 million as of September 30, 2024, from $28.5 million at the end of 2023. Total liabilities also fell significantly to $12.4 million from $25.3 million, while stockholders' equity increased to $6.4 million, up from $3.2 million. The company reported cash and cash equivalents of $4.9 million, indicating sufficient liquidity to support operations for the next twelve months.

Strategically, Wrap Technologies acquired Intrensic, LLC in August 2023, enhancing its product offerings in body-worn camera and digital evidence management solutions. The company continues to focus on expanding its market presence, particularly in the law enforcement sector, where its BolaWrap device is currently utilized by over 900 agencies across 62 countries.

Operating expenses for the nine months ended September 30, 2024, were $13.0 million, a decrease of $2.3 million from the previous year, reflecting ongoing cost containment initiatives. The company also reported a backlog of approximately $260,000 expected to be delivered in the fourth quarter of 2024, alongside deferred revenue of $673,000.

Overall, while Wrap Technologies faced challenges in revenue generation, it demonstrated improved profitability and strategic growth through acquisitions and cost management.