Following the release of a shareholder letter, Wrap Technologies, Inc. (NASDAQ: WRAP) saw a significant increase in its stock price on the US charts today. WRAP shares climbed 23.62%, closing the weekend session at $2.12.

Compliance And Financial Stability Efforts

In a recent letter to shareholders, Founder and CEO Scot Cohen outlined the company's proactive measures in addressing both audit and Nasdaq compliance issues. Wrap Technologies engaged HTL as its new auditors thirty days ago, who are currently conducting the 2023 audit. The company does not anticipate any need for restatements of its financials.

Moreover, on June 17, 2024, Wrap Technologies submitted a comprehensive compliance plan to the NASDAQ Listing Qualifications Department. Even though acceptance is not certain, the company is hopeful that NASDAQ will allow sufficient time to complete the 10-K for 2023 and the 10-Q for the first quarter that ended on March 31, 2024.

Strategic Operational Adjustments And Growth

Wrap Technologies has implemented an aggressive growth strategy, expanding manufacturing operations to meet anticipated international demand. This growth was coupled with a recent audit that provided an opportunity to reassess business operations comprehensively. Consequently, Wrap Technologies introduced enhanced discipline, structure, and controls across its operations.

The significant reduction in operating expenses, which are projected to drop from as high as $2.5 million per month in 2022 to $700,000 per month by the end of 2024, is one of the notable achievements. These cost reductions, along with strategic workforce adjustments, aim to furnish Wrap Technologies with the necessary resources to capitalize on forthcoming market opportunities.

Leadership In De-Escalation Solutions

Wrap Technologies has demonstrated through closer customer engagement and pilot deployments in major cities that its solutions extend beyond non-lethal devices to become vital de-escalation tools. From a domestic and global de-escalation solutions standpoint, WRAP is well-positioned to become a leading supplier. Enhancing concentration, agility, and speed of decision-making are the goals of Wrap Technologies' organizational structure simplification and leadership refinement.