Wrap Technologies, Inc. reported significant financial developments in its 10-Q filing for the quarter ending March 31, 2024. The company experienced a notable increase in revenue, with total revenues reaching $1,476,000, a 108% increase from $711,000 in the same period of 2023. Product sales also rose to $1,327,000, up from $616,000 year-over-year. This growth was attributed to higher sales volumes and improved margins from the BolaWrap 150 product, which accounted for a substantial portion of the revenue.

Gross profit for the quarter was $836,000, reflecting a gross margin of 57%, compared to $352,000 and a 50% margin in the prior year. The increase in gross profit was driven by higher sales volumes and improved product margins. However, total operating expenses rose to $4,975,000, an increase of 8% from $4,612,000 in Q1 2023, primarily due to higher selling, general, and administrative expenses, which increased by 19% to $4,220,000.

The company reported a net income of $117,000 for the quarter, a significant turnaround from a net loss of $4,028,000 in the same period last year. Despite this improvement, the net loss attributable to common stockholders was $(72,000), compared to $(4,028,000) in Q1 2023. The operating loss for the quarter was $4.1 million, a slight reduction from $4.3 million in the previous year, indicating improved operational efficiency.

As of March 31, 2024, Wrap Technologies had total current assets of $17,717,000, down from $21,227,000 at the end of 2023. Total assets decreased to $24,772,000, while total liabilities fell to $20,289,000 from $25,338,000. This resulted in an increase in total stockholders' equity to $4,483,000, up from $3,163,000 at the end of 2023.

The company continues to focus on strategic growth, having acquired Intrensic, LLC in August 2023, which enhances its product offerings in body-worn camera and digital evidence management solutions. Wrap Technologies is also expanding its market presence, targeting law enforcement agencies globally, with over 1,480 agencies trained in the use of its BolaWrap device as of March 31, 2024.

In terms of cash flow, the company reported net cash used in operating activities of $3.7 million for Q1 2024, compared to $3.1 million in the same period in 2023. Cash and cash equivalents, along with short-term investments, totaled $8.2 million, indicating sufficient capital to fund operations for the next twelve months. The company is also facing challenges related to inflation, impacting labor and material costs, which may affect future operating expenses.