What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2026-03-26 compared with 2025-03-31 · 316 added, 586 removed, 4 unchanged (100% of the section changed)

are a global public safety technology and services company that delivers safe and effective policing solutions to law enforcement and

security personnel worldwide.

We are leading the movement for safer outcomes by equipping law enforcement with safer, non-painful compliance

tools, and immersive training fit for modern society.

We began sales of our first public safety product, the BolaWrap 100 remote restraint

device, in late 2018.

In the first quarter of 2022, we delivered a new generation product, the BolaWrap 150.

The BolaWrap 150 is electronically

deployed and is more robust, smaller, lighter and simpler to deploy than the BolaWrap 100 that has since been phased out.

we added a new solution to our public safety technologies, our virtual reality (“VR”) training platform, Wrap Reality, and

in August 2023 we acquired Intrensic, LLC, a Delaware limited liability company (“Intrensic”), which added a Body-Worn Camera

(“BWC”) and Digital Evidence Management (“DEM”) solution to our portfolio of policing solutions.

is now sold to law enforcement agencies for simulation training as well as corrections departments for the societal reentry scenarios.

target market for our solutions includes approximately 900,000 full-time sworn law enforcement officers in over 18,000 federal, state,

and local law enforcement agencies in the U.S.

and over 12 million police officers in more than 100 countries.

Additionally, we are exploring

opportunities in other domestic markets, such as military and private security.

Our international focus is on countries with the largest

police forces.

According to 360iResearch, a market research consulting firm, our non-lethal products are part of a global market segment

expected to grow to $16.1 billion by 2027.

focus our efforts on the following products and services:

Remote Restraint Device – a hand-held remote restraint device that discharges a seven and half-foot Kevlar tether to entangle

an individual at a range of 10-25 feet.

BolaWrap assists law enforcement to safely and effectively control encounters early without resorting

to painful force options.

Reality – a law enforcement 3D training system employing immersive computer graphics VR with proprietary software-enabled content.

It allows up to two participants to enter a simulated training environment simultaneously, and customized weapons controllers enable

trainees to engage in strategic decision making along the force continuum.

Wrap Reality has 45 scenarios for law enforcement and corrections

and 15 scenarios for societal reentry.

Wrap Reality is one of the most robust 3D Virtual Reality solutions on the market for law enforcement

and societal reentry today.

Intrensic – a Body-Worn Camera and Digital Evidence Management solutions provider.

BWC and DEM play crucial roles in capturing,

storing, and managing digital evidence, such as video and audio recordings for various purposes, including criminal investigations and

maintaining transparency in public interactions.

The Wrap Intrensic X2 camera hardware and storage and data management capability, along

with awareness of front-line operations, provides customers with a solution to meet their challenges.

Wrap Intrensic Evidence on our

cloud-based video storage platform provides an unlimited video storage platform that includes video and other evidence uploading, search,

retrieval, redaction, and evidence sharing while reducing the need for resources required to manage this evidence.

addition to the US law enforcement market, we have shipped our restraint products to 62 countries.

We have established an active distributor

network representing 50 states and one dealer representing the US territory of Puerto Rico.

We have distribution agreements with 23 international

distributors covering 63 countries.

We focus significant sales, training and business development efforts to support our distribution

network in addition to our internal sales team.

focus significant resources on research and development innovations and continue to enhance our products and plan to introduce new products.

We believe we have established a strong brand and market presence globally and have established significant competitive advantages in

market for non-lethal and less-lethal products and devices serves law enforcement agencies, correctional facilities, military agencies,

private security guard companies, and retail consumers.

As thought leaders in new public safety products, we focus on the law enforcement

agency segment of the market with our BolaWrap remote restraint solution, Wrap Reality virtual reality system, and our Body-Worn Camera

and Digital Evidence Management solutions.

Recent trends, such as the rise in mental health cases, police reform, and reorganization

of police departments, have started a growing conversation across the country on the need for de-escalation before applying a pain-compliance

policing policy.

As this de-escalation movement unfolds, there are thousands of law enforcement, police, and sheriff’s offices

focusing on training, policies, and the use of more non-lethal restraining solutions.

This movement highlights a growing need for new

approaches, which we believe will drive demand for our innovative and safe law enforcement solutions.

law enforcement seeks to detain an individual, there usually is a use of force continuum that an agency follows, starting with officer

presence and verbal commands.

If verbal commands break down, agencies may authorize the use of less lethal pain inducing compliance tools,

such as pepper spray, pepper ball, wooden batons or metal collapsible batons, launchers and bean bags, and conducted energy weapons,

such as Taser®.

Our BolaWrap product offers an alternative.

It can be used in many cases to restrain an individual after verbal commands

break down and prior to the need to use pain-inducing compliance tools.

The use of nonlethal solutions like BolaWrap potentially could

lead to a reduction in use of force incidents that result in ending careers as well as the number of legal cases filed against agencies

for excessive use of force, wrongful death, and injury, thus decreasing expensive litigation, settlements, and insurance costs.

anticipate that use of the BolaWrap by public safety agencies can increase goodwill between public safety agencies and their communities,

especially in a time when interactions with public safety officers are increasingly subject to public and media scrutiny.

the law enforcement community’s response to BolaWrap demonstrates the need for the product and its utility in safely detaining

Our goal is to equip every public safety officer with a BolaWrap remote restraint solution that they carry with them each

participate in the global non-lethal market that, according to the January 2022 report by 360iResearch, was expected to grow to $16.1

billion by 2027.

The following segments are our target markets:

and International Law Enforcement

products and services are primarily targeted at federal, state, and local law enforcement agencies in the U.S.

As of 2018, there were

over 18,000 law enforcement agencies and 800,000 full-time local and state law enforcement officers in the US, while the US Department

of Justice reported over 100,000 full-time federal officers based on 2016 data.

Our product line, including BolaWrap, can be an effective

tool for safe detention of individuals under the jurisdiction of these agencies.

have also identified an international market opportunity of over 12.1 million police officers in the 100 largest police forces outside

We have delivered products to 62 countries and have entered into agreements with international distributors.

We anticipate that

sales attributable to international markets will represent a significant portion of our sales in the future due in part to the centralized

purchase decision-making process at the national level in these markets.

Often, the international markets have large national police

Conversely, in the US, the market is more fragmented with many smaller agencies and longer procurement and sales cycles.

international sales to continue to be lumpy due the timing of purchase decisions and relatively large size of orders.

2019, the US Bureau of Justice statistics (“Census of State and Federal Correctional Facilities, 2019,” US Department of

Justice, Bureau of Justice Statistics, published November 2022) estimated that there were 240,000 correctional officers in over 1,000

federal and state correctional facilities in the U.S., representing a large potential market for our products and services.

Most correctional

facilities fall under federal, state or local law enforcement jurisdiction and we believe these facilities could leverage Wrap Reality

for law enforcement and societal reentry platforms as well as BolaWrap inside and outside of the correctional facility.

Security Firms and Guard Services

to the 2019 Bureau of Labor Statistics estimates (“Occupational Employment Statistics,” US Department of Labor), there were

1.1 million privately employed security guards in the U.S.

They represent a broad range of individuals, including those employed by investigation

and security services, hospitals, schools, local government, and others.

We believe that the use of BolaWrap by security personnel could

effectively de-escalate some encounters without eliminating other devices available today.

Providing security personnel with the BolaWrap

may also reduce the potential liability of private security companies and personnel in such encounters.

ATF classifications play a role in restricting Wrap’s ability to transfer easily to non-government security firms.

We believe the

classification is overly onerous and we will continue to work with the ATF and others to change our nonlethal product’s classification.

It is important to note that countries in which we have international customers do not have any transfer or possession restrictions on

the non-lethal BolaWrap devices and we believe this should be the future for BolaWrap in the United States.

Reality Training Market

virtual training and simulation market is projected to reach $602 billion by 2027, according to a 2019 report by Allied Market Research.

We expect the growth of virtual reality and simulation to continue expanding into many nascent industries, including law enforcement,

corrections, military, school, and private security although it currently represents a relatively small segment of the overall market.

The law enforcement and military sectors are important segments of the market, and increasing awareness of the benefits of virtual training

and simulation is driving market growth.

Advancements in technology now enable virtual reality to recreate real-world scenarios in a

360-degree immersive environment.

Products and Services

Remote Restraint

BolaWrap product line includes the BolaWrap 100, which was our first remote restraint product and which has been phased out, and the

BolaWrap 150, delivered to the market in the first quarter of 2022.

The BolaWrap 150 offers electronic deployment and is more robust,

smaller, lighter, and simpler to use than the BolaWrap 100.

The BolaWrap is a handheld remote restraint device that discharges a seven

and a half-foot Kevlar tether, entangling an individual from a range of 10-25 feet.

Developed in collaboration with law enforcement professionals,

this device enables safe and effective control of low-force encounters, providing a valuable tool for law enforcement officers.

BolaWrap is a remote restraint device that safely wraps around an individual’s arms and/or legs to impede movement and prevent

harm to themselves or others.

The device provides a valuable tool for law enforcement officers to safely and humanely take subjects into

custody without injury, especially when verbal commands are ineffective.

a wide effectiveness zone and a guiding seven dot green laser for accurate placement of the Kevlar tether, the BolaWrap mitigates the

risk of injury to the subject, officer and potential bystanders.

Its small, light, and rugged design allows officers to maintain other

use of force continuum options while providing a non-lethal alternative to potentially injurious less-lethal forces or firearms.

effectiveness in restraining individuals and hindering their ability to flee or fight has been proven.

Not only does it allow officers

to act safely and effectively in difficult situations by minimizing the need for other uses of force, including hand-to-hand combat and

other more injurious less lethal or lethal weapons, but also it helps minimize injury and prevent a force frenzy that can occur after

chasing a fleeing subject.

other less-lethal tools that rely on pain compliance and may lead to escalation of incidents and serious injuries, the BolaWrap does

not rely on pain or electricity-enabled neuromuscular incapacitation.

BolaWrap does not induce paralyzed falls or recovery time, making

the BolaWrap an ideal non-lethal tool for law enforcement officers.

Additionally, the fight or flight response that comes from less lethal

tools that cause pain and injury is minimized by being wrapped by a BolaWrap device.

spend significant resources training law enforcement on the safe and effective use of the BolaWrap in conjunction with de-escalation

and apprehension techniques.

However, like any restraining action, some injuries may result from the use of BolaWrap.

Our training includes

primary use cases that fall into the three broad categories routinely encountered by law enforcement and security personnel:

remotely restrain and limit the mobility of an individual who is experiencing a mental health crisis, narcotics-induced psychosis,

or other crisis condition rendering them incapable of responding to law enforcement’s verbal commands but that presents a danger

to law enforcement, the public or themselves if not restrained;

remotely restrain and limit the mobility of an individual attempting to evade arrest or questioning, as well as individuals ignoring

verbal commands from law enforcement.

These individuals are commonly referred to as passively resistant or non-compliant;

assist in subduing individuals actively resisting arrest by limiting mobility, possibly making other engagement options less risky

to officers and less injurious to individuals.

enforcement encounters involving individuals experiencing a behavioral health crisis can be challenging, resulting in public controversy

and costly consequences.

The Treatment Advocacy Center:

Office of Research & Public Affairs reported that one in ten police encounters

involve individuals with mental illness, with at least one in four fatal police encounters involving individuals with mental illness

(“Overlooked in the Undercounted:

The Role of Mental Illness in Fatal Law Enforcement Encounters,” Office of Research & Public Affairs (2015)).

field deployment should be considered successful by law enforcement agencies if compliance is achieved, and no additional higher-level

use of force tool is required after the BolaWrap is displayed or used.

Agencies have reported achieving compliance by utilizing the BolaWrap

in the following ways:

pointing the BolaWrap’s seven dot green line dot laser at the suspect in conjunction with verbal commands;

the sound emitted by the BolaWrap upon deployment and causing a distraction;

the feeling of being wrapped and/or the restraint of the Kevlar cord around the suspect’s legs, arms, or torso;

used in conjunction with other less-lethal tools.

we encourage all law enforcement agencies to fill out a Use of Device Report when the BolaWrap is used during an encounter in the field,

agencies do not always report all field deployments.

Some agencies consider the deployment of the BolaWrap to be a non-use of force or

a de minimis use of force that does not require any reporting.

While some deployments have been captured on bodycam and shared with the

public, others were reported by the agency or the media but were not captured on bodycam.

Some agencies capture deployments on body worn

cameras but do not allow the sharing of the video or allow them to be shared for learning purposes but not publicized for other marketing

Some local jurisdictions have department policies, collective bargaining agreements, and city, county or state laws regarding

the distribution of body worn camera video.

more agencies incorporate the BolaWrap onto their duty belts and carry it every day on shift we expect to see an increase in the rate

of field deployments, which we believe will contribute to even further adoption of the device by law enforcement agencies worldwide.

In 2022, following the release of our strategic roadmap in mid-2022 Q3, we focused our customer service team on modifying their approach

to become a customer success operation.

As part of this strategic change, our team focuses on reaching out to drive agency wide adoption.

We made this pivot in part because many agencies in the first few years of BolaWrap only deployed a small number of trial units without

the immediate follow-up to grow their deployment to agency-wide.

We have trained our sales team to focus on agency-wide deployment to

drive the highest level of immediate success with the device and to integrate it into department-wide use of force polices.

late Q1 2022, we delivered the latest generation of our BolaWrap device, the BolaWrap 150.

Production of the previous model, the BolaWrap

100, ceased in 2021.

We intend to continue to supply cartridges for the BolaWrap 100 to our customers for the foreseeable future.

the BolaWrap 100, the BolaWrap 150 utilizes cassettes that are unique to the device and cannot be interchanged between models.

positioned the BolaWrap 150 as our primary product and plan to support it for 5 to 10 years from the product launch date.

support the increased production volume for the BolaWrap 150, we implemented a more automated supply chain in the production, quality

control, and testing lines in 2022.

believe the BolaWrap 150 offers important benefits, including:

electronic deployment;

size and less weight;

production costs;

status indicator for ease of operation;

laser battery life;

target illumination to improve accuracy;

plastic for increased durability;

water resistance for harsh environments.

BolaWrap 150 employs two micro-gas generators to individually expel each entangling projectile.

Micro-gas generators are micro explosive

parts used in a variety of industrial products, including automobile airbags.

“Risk Factors” included below in this Annual Report for additional information regarding risks and uncertainties associated

with our business.

2019, we partnered with an independent technology company to create a virtual reality system with training scenarios.

We acquired NSENA

in December 2020, a provider of law enforcement training employing immersive computer graphics virtual reality with proprietary

software-enabled content.

We branded the system as Wrap Reality Virtual Training and kept building and improving that platform and today

it offers 38 built out scenarios targeting law enforcement.

Countless additional scenarios can be made by using the Wrap Reality adapt

functionality to pick and choose key components to build a scenario.

It takes advantage of advanced virtual reality hardware and allows

up to two participants to enter the simulated training environment simultaneously.

August 2021, we announced the development of an expanded Wrap Reality Virtual Training platform through a collaboration with Amazon Web

Services (AWS).

This new platform combines our law enforcement simulator with secure cloud services to track training progress and provide

the ability to replay recorded training sessions.

We continue to upgrade scenarios and develop de-escalation techniques into new scenarios

and seek to enhance the Wrap Reality experience through continued software and platform innovation.

are optimistic about the potential for future growth of WRAP Reality by public safety agencies, given our early adoption and deployment

of robust virtual reality training technology.

By leveraging our existing platform and our investment in cloud software, we now will

have the opportunity to develop and offer critical training scenarios at very competitive price points.

have the ability to offer both on-premises and full cloud capabilities with multiple hardware options.

This expansion enables us to deliver

the platform to a broad range of customers, including law enforcement agencies, public and private security, corrections and the general

public for firearms, concealed weapon, and safety training.

August 2023, Wrap entered into the Intrensic Purchase Agreement (as defined herein) for the acquisition of Intrensic, an innovator of

DEMS and body-worn cameras.

The integration of Intrensic’s offerings into the Company’s product suite allows the Company

to expand its relationship with existing customers, increase its addressable market, and further innovate its technology offering.

acquisition helps the Company broaden its addressable market by appealing to a wider range of law enforcement and public safety agencies

that are looking for integrated solutions combining non-lethal devices and digital evidence management.

By offering a more comprehensive

set of tools and technologies, the Company strengthened its position in the public safety technology market by differentiating itself

from competitors that only offer single solutions.

Intrensic offers a robust digital evidence management platform that enables law enforcement agencies to securely store, manage, and share

digital evidence, including body-worn camera footage, dashboard camera videos, and other digital files.

The platform is equipped with

features such as secure cloud storage, easy file retrieval, evidence tagging, chain of custody documentation, and sharing capabilities

to streamline workflows and ensure data integrity.

Wrap Intrensic also provides body-worn camera solutions designed to capture high-quality

video evidence in various law enforcement scenarios.

These cameras feature HD recording, night vision, and secure data upload capabilities

and seamlessly integrate with the digital evidence management platform for efficient video uploading and management.

completing the acquisition in August 2023, Wrap has launched a host of new features and functionality to the Intrensic platform including

WrapAI, a suite of artificial intelligence-powered functionality for Wrap Intrensic BWC and DEMS.

This suite includes AI video redaction,

AI video transcription, and AI assisted contextual content search, keeping Wrap Intrensic on the cutting edge of innovation in the DEMS

and BWC marketplace.

offering comprehensive solutions for video evidence management, Wrap Intrensic enhances accountability and transparency within law enforcement

The technology facilitates improved documentation of interactions and incidents, which is critical in investigations and when

building public trust.

The solutions are used in various settings, including routine patrols, traffic stops, and large-scale public events.

Wrap Intrensic’s platform simplifies digital evidence management, reducing the administrative burden on law enforcement personnel.

Secure cloud storage and rigorous chain-of-custody protocols protect digital evidence against unauthorized access and tampering.

integration of non-lethal tools like BolaWrap with digital evidence solutions contributes to safer interactions between law enforcement

officers and the community, strengthening Wrap Technologies’ position in the public safety technology market by offering an end-to-end

solution that combines innovative de-escalation devices with state-of-the-art evidence management.

Company remains optimistic on the outlook of Wrap Intrensic as a competitive and innovative solution set in the marketplace.

Marketing and Training

sales, marketing and training organizations work together closely to drive revenue growth by enhancing market awareness of our solutions,

generating leads, building a strong sales pipeline, and cultivating customer and distributor relationships.

Our training not only supports

our sales, but it also provides revenue due to the extreme value our customers place on our training services.

We started charging for

our training services in the third quarter of 2022.

primary target market is law enforcement agencies in the US and globally.

The purchasing decision for our BolaWrap products and accessories

is typically made by a group including agency heads, procurement, training staff, and use of force experts, and may involve political

decision-makers such as city council members.

The decision-making process may take several weeks to over a year due to budget constraints

and other considerations.

use product demonstrations as a primary sales tool and follow up with sales activities.

Our goal is to convert demonstration and training

deliveries into sales and long-term expansion.

We provide fee-based training services to agencies, as we believe that departments with

knowledgeable instructors are more likely to purchase our products.

2019, we adopted a channel distribution approach, in tandem with our internal sales team, where we supply our products to independent

regional police equipment distributors, who in turn sell to local law enforcement agencies.

Our current focus is on cultivating partnerships

with major agencies and providing active assistance to our distributors through our dedicated sales, business development, and support

We sell through distributors in most cases and go direct to our end customers where the right distributor skill set, and capability

is not available.

currently have distribution agreements with a network of distributors representing 50 states and one dealer representing Puerto Rico.

These agreements provide certain territorial rights to distributors and allow us to sell direct to certain agencies under certain terms.

have distribution agreements with 23 international distributors covering 63 countries.

These agreements generally require minimum sales

and follow-up performance and allow us to sell direct to customers if performance is not being met.

We focus significant sales and business

development efforts to support our international distributors.

have invested in training our sales, distribution, demonstration, training, and customer success teams, as well as our distributors,

to build awareness and drive sales of our BolaWrap and our Wrap Reality virtual reality training product.

Additionally, we are actively

seeking partnerships with other organizations to further enhance our sales, marketing, and technology efforts.

We engage with other industry

experts to ensure our virtual reality scenarios align with industry standards of engagement.

customers become aware of Wrap solutions through a variety of marketing channels such as social media, paid advertising, media coverage,

press releases, web searches, sales calls, and public relations.

We also distribute body and dash camera videos of successful BolaWrap

use in policing encounters to generate leads.

Once a lead is generated, it is qualified by our inside sales team, and a sales representative

or distributor communicates with the prospective customer to discuss their needs and the solutions we offer.

track our marketing and sales activities to provide immediate insight into activities, leads, quotes, and pipeline opportunities.

marketing staff engages with law enforcement agencies, personnel, and risk management organizations to educate them on the benefits of

BolaWrap remote restraint, as well as Wrap Reality and we participate in various domestic and international trade shows and conferences

to promote our brands.

We intend to increase the use of our trademarks throughout our product distribution chain to enhance brand awareness

and believe our strong reputation as a pioneer in remote restraint, with excellent training and product support, gives us a competitive

Demonstration,

Training and Customer Success

part of its sales and marketing activities, the Company has a department dedicated to conducting demonstrations and training.

offers in-person, webinar, and online demonstrations, as well as paid use of force and de-escalation training, to law enforcement agencies.

The training can take place before or after the initial or subsequent purchase or deployment of the Company’s products.

believes that providing training and demonstrations to law enforcement officers and trainers increases their support for purchasing and

deploying the products within their departments.

agencies will adapt their use of force policy to incorporate remote restraint and the BolaWrap into a key new area of their policy for

non-invasive tools that often did not previously exist.

BolaWrap is typically not a categorical use of force, or if classified as force,

and is typically at the lowest level on a department policy, below all other less lethal weapons like pepper spray, pepperball, batons,

bean bags, Tasers® and conducted energy weapons.

order to provide comprehensive training and sales support, we initiated the Wrap “Train the Trainer” program in October 2018.

The program is structured such that our Master BolaWrap Instructors educate BolaWrap Instructors at local agencies, who then train front-line

officers in compliance with the agency’s policies.

Instructors are typically sworn law enforcement officers, who are commonly department trainers, defensive tactic instructors, or SWAT

They undergo a five-hour BolaWrap Instructor certification course, which includes passing a written exam and demonstrating

proficiency in deploying and using the BolaWrap.

We provide support to the instructors to share lessons learned and best practices for

teaching line officers in the use of BolaWrap.

Instructor certification is valid for two years and requires renewal afterward.

training curriculum is submitted by departments to their Post Officers Standards and Training (POST) for credit for in-service training

Most departments who leverage the BolaWrap across all field officers incorporate BolaWrap training into most other training materials

and in service training throughout the year.

An example would be officers doing an in-service training on Driving under the Influence

(DUI) arrests using the BolaWrap during the arrest portion of training on individuals under the influence of alcohol or drugs.

If departments

are conducting in-service training on responding to those in a mental health crisis, they also need to train and have ongoing practice

on deploying BolaWrap on those in crisis and practice taking these individuals safely into protective custody.

Another in service training

example would be when departments practice warrant service, and during the arrest and apprehension efforts, they leverage BolaWrap after

verbal commands breakdown but before they are justified in using pain compliance tools such as pepper spray, pepperball, batons, Tasers

or conducted electrical weapons.

order to schedule and organize training events, registration, and training records, we utilize a cloud-based software system called the

Wrap Learning Management System.

This system is also home to a Resource Library which we highly encourage distributors and purchasers

to use to educate themselves on the use of BolaWrap.

the modern world of policing, we understand that it is crucial to provide equipment and services that are well-supported, and that officers

receive proper training and procedures to perform their duties effectively and safely.

As a result, we have developed a professional

team dedicated to training and sales support, as well as the necessary systems to provide this support.

This approach not only gives

us a competitive edge but also creates a significant barrier to new competition.

We are confident that our training and support teams

are equipped to assist agencies of all sizes.

the world of law enforcement, defense, public safety, and security, our product and training solutions are gaining recognition and worldwide

We have a strong global brand and product foundation that we are continuously expanding to reach new markets and customers,

thereby contributing to significant business growth.

We are confident that we can capitalize on the growing demand for non-lethal policing

in the world, particularly as non-compliant individuals continue to pose a threat.

Our training programs and virtual reality platform

are also well positioned to grow rapidly in global markets.

commercialization strategy concentrates on the immediately addressable domestic market, comprising more than 18,000 federal, state, and

local law enforcement agencies, with approximately 900,000 full-time sworn officers in just the US alone.

We also aim to target the 100

largest police forces internationally, which have over 12 million police officers.

Our objective is to unlock the full potential of our

technology solutions suite, which targets law enforcement and security personnel on a global scale.

plan to maintain financial prudence and deliver value to our stockholders.

Our focus will remain on expanding our revenues through pursuing

business opportunities both domestically and internationally.

In addition to enhancing our current product portfolio, we aim to develop

new and improved products, which can be utilized by security personnel and related professionals.

We also seek to pursue strategic business

initiatives and collaborations, including potential acquisitions, to complement our existing offerings and sales network.

Manufacturing

and Suppliers

We are a global public safety technology and services company focused on delivering integrated non-lethal solutions for law enforcement, corrections, defense, and other public safety organizations worldwide.

Our mission is to enable safer outcomes by providing officers and agencies with the tools, training, and tactics to gain proactive, lawful control of encounters, reducing risk to both officers and subjects, while preserving tactical advantage.

We began sales of our first public safety product, the BolaWrap® 100 device, in late 2018.

In the first quarter of 2022, we introduced the BolaWrap® 150, a next‑generation, electronically deployed device that is more robust, smaller, lighter, and simpler to deploy than the BolaWrap 100, which has since been phased out.

In December 2020, we acquired NSENA Inc.

("NSENA"), a provider of immersive virtual reality training for law enforcement utilizing proprietary software-enabled content and computer graphics simulation.

This acquisition provided the foundation for Wrap Reality™, our virtual reality ("virtual reality" or “VR”) training platform designed for law enforcement simulation training and correctional reentry scenarios.

In August 2023, we acquired Intrensic, LLC, a Delaware limited liability company (“Intrensic”), which added body‑worn camera ("body-worn cameras" or “BWC”) and digital evidence management ("digital evidence management" or “DEM”) capabilities to our portfolio.

During 2025, we continued our transition from a single-product company into a diversified public safety technology and services company delivering integrated non-lethal solutions that combine tools, training, and tactics.

This transition included expanding our product portfolio, advancing our training and software platforms, entering adjacent defense and homeland security markets, and strengthening our commercial and leadership infrastructure.

While we continued to incur operating losses during the year, we implemented cost containment initiatives and focused on aligning our operating structure with our near- and long-term strategic priorities.

We expanded our product portfolio with the launch of WrapTactics™, a digital training platform designed to integrate human-factors awareness, decision-making under stress, and tactical proficiency agency-wide;

and WrapVision™, a North America assembled body worn camera solution designed to meet federal procurement and data sovereignty requirements.

We also advanced several counter unmanned aircraft system ("counter unmanned aircraft system" or “CUAS”) initiatives, including the MERLIN™ program, which apply our proprietary tether deployment technology to non-lethal drone interdiction and defense applications.

These initiatives are intended to broaden our addressable market beyond traditional policing into defense, homeland security, and critical infrastructure protection, while maintaining our core focus on providing integrated tools, training, and tactics that give officers proactive, lawful control of encounters and support safer outcomes for officers, subjects and the communities they serve.

On September 19, 2025, we formed a new wholly-owned subsidiary of the Company, Wrap Federal, LLC (“Wrap Federal”), under the laws of the State of Delaware.

Wrap Federal was established for the purpose of supporting U.S.

federal government clients in the Department of Defense, Department of Homeland Security, and other federal agencies.

We believe a continued focus on integrating our systems into existing federal frameworks supports our goal of becoming a fully integrated federal public safety and defense technology enterprise.

On February 18, 2025, we entered into an Asset Purchase Agreement with W1 Global, LLC (“W1”), a Delaware limited liability company (the “W1 Purchase Agreement”), dated as of February 18, 2025, pursuant to which, subject to the terms and conditions set forth therein, we acquired substantially all the assets of W1 used in, held for use in or relating to the business of advisory and investigative professional services, which were primarily the customer contracts assigned at the closing (collectively, the “Acquired Assets”), for a nominal purchase price.

We acquired W1 to integrate technology enablement into its core offerings and expand into managed technology services supporting the BolaWrap go-to market strategy.

Following a third-quarter evaluation, the Company determined that W1’s investigative services were not essential to Wrap’s domestic or international expansion;

however, customers strongly valued managed services related to policy and training.

As a result, Wrap will continue focusing on technology enabled services in policy governance and training to advance the next era of non-lethal technology development, delivering an integrated response package that combines technology with the support, policy alignment, and governance needed for adoption at the state and federal levels.

Industry Background

Public safety agencies worldwide operate under growing expectations for accountability, proportional use of force, and transparency in encounters with the public.

The prevalence of body-worn cameras, bystander video, and real-time media coverage has created an environment in which officers are expected to demonstrate measured, defensible decision-making in dynamic and often unpredictable situations.

At the same time, law enforcement encounters involving individuals in mental health crisis, substance-related impairment, or emotional disturbance continue to rise, placing additional demands on officers who must resolve these encounters safely while managing legal, tactical, and public perception risks.

These dynamics are driving demand across the public safety sector for tools, training, and operational frameworks that give officers the ability to gain proactive, lawful control of encounters earlier, before situations escalate to the point where higher-force options may be the only alternative.

Traditional force options available to officers, including conducted energy weapons, chemical agents, impact projectiles, and batons, rely on pain compliance or neuromuscular incapacitation to gain control.

While effective in certain circumstances, these tools carry inherent risks of injury and are often perceived by officers as too high a level of force to deploy early in an encounter, particularly when the subject has not yet become physically combative.

This creates an operational gap between verbal commands and pain-compliance tools in which officers frequently have limited options.

Our BolaWrap product line is designed to address this gap by giving officers a non-lethal option that creates a controlled interruption through sight, sound, and sensation, providing time, space, and tactical advantage to manage the encounter before contact distance collapses, and without relying on pain compliance.

We believe the adoption of non-lethal tools like BolaWrap can reduce the frequency and severity of use-of-force incidents, potentially lowering the legal, financial, and reputational costs associated with excessive force claims, settlements, and related litigation.

More broadly, we believe that equipping officers with integrated non-lethal solutions that combine tools, training, and tactics can improve community trust and strengthen the relationship between public safety agencies and the communities they serve.

Our goal is to equip every public safety officer and agency with an integrated system of non-lethal tools, training, and tactics that they carry and apply every day, supporting safer outcomes for officers, subjects, and the public.

Markets and Customers

We participate in multiple segments of the global public safety and defense technology markets.

Our addressable markets include the non-lethal tools market, the law enforcement and public safety training market, the body-worn camera and digital evidence management market, and the emerging counter-unmanned aircraft system market.

The following describes our principal market opportunities:

Domestic and International Law Enforcement:

Our products and services are primarily targeted at federal, state, and local law enforcement agencies in the United States.

According to the Bureau of Justice Statistics, as of March 2025 th ere are more than 18,000 law enforcement agencies and approximately 900,000 full-time sworn law enforcement officers in the U.S., including over 100,000 full-time federal officers.

Our product and service portfolio, including BolaWrap, WrapTactics, Wrap Reality, and WrapVision, is designed to serve the operational needs of these agencies across tools and training.

We have also identified an international market opportunity encompassing an estimated 12 million police officers across more than 190 countries.

We have shipped our products to over 60 countries and maintain a network of international distributors.

We anticipate that international markets will represent a meaningful portion of our sales over time, driven in part by the centralized procurement decision-making processes common in many countries with large national police forces.

Conversely, the U.S.

market is more fragmented, with a large number of smaller agencies and longer procurement and sales cycles.

International sales may be uneven from period to period due to the timing of national-level purchase decisions and the relatively large size of individual orders.

Non-Lethal Tools

According to Straits Research, the global non-lethal weapons market was valued at approximately $9.9 billion in 2024 and is expected to grow to approximately $19.1 billion by 2033, representing a compound annual growth rate of 7.6%.

We believe that BolaWrap occupies a distinct position within this market because it does not rely on pain compliance or neuromuscular incapacitation, differentiating it from most existing non-lethal force options and addressing the operational gap described above.

Correctional Facilities

According to the U.S.

Bureau of Justice Statistics ("Census of State and Federal Correctional Facilities, 2019," published November 2022), there were approximately 240,000 correctional officers in over 1,000 federal and state correctional facilities in the United States.

Most correctional facilities fall under federal, state, or local jurisdiction and we believe these facilities represent a meaningful market for our products and services, including the use of Wrap Reality for law enforcement and societal reentry training, WrapTactics for officer readiness and skill retention, BolaWrap for use within and around correctional environments, and WrapVision body-worn cameras and our digital evidence management platform to support transparency, incident documentation, and evidentiary requirements within correctional settings.

Law Enforcement Training

According to Coherent Market Insights, the U.S.

law enforcement training market was valued at approximately $4.0 billion in 2025 and is expected to reach approximately $5.4 billion by 2032, representing a compound annual growth rate of 4.5%.

The market is experiencing growing adoption of virtual reality and simulation-based training, as well as increased focus on decision-making, human-factors awareness, and use-of-force judgment.

Our Wrap Reality VR platform and WrapTactics digital training subscription are designed to participate in this market, offering agencies both immersive scenario-based simulation and continuous, low-burden digital training that helps prevent skill decay and sustain tactical readiness between in-person training events.

Body-Worn Cameras and Digital Evidence Management

The body-worn camera and digital evidence management markets are driven by growing government mandates, public expectations for transparency, and increasing adoption of cloud-based, AI-enabled evidence platforms.

According to Mordor Intelligence, the global body-worn camera market was valued at approximately $2.9 billion in 2025 and is expected to reach approximately $4.1 billion by 2030, with law enforcement agencies representing the largest end-user segment.

Separately, the global evidence management market was estimated at approximately $9.7 billion in 2025 and is expected to reach approximately $16.1 billion by 2030, representing a compound annual growth rate of 10.8%.

Our WrapVision body-worn camera and cloud-based digital evidence management platform are designed to serve agencies seeking integrated accountability and evidence solutions that complement their non-lethal and training investments.

Counter-Unmanned Aircraft Systems (C-UAS)

According to MarketsandMarkets, the global counter-unmanned aircraft system market is estimated at approximately $6.6 billion in 2025 and is projected to reach approximately $20.3 billion by 2030, representing a compound annual growth rate of 25.1%.

North America is projected to be the fastest-growing region, driven by defense spending, homeland security initiatives, and increasing drone-related threats to critical infrastructure.

Through our MERLIN program, as well as additional research and development initiatives, we are applying our proprietary mechanical entanglement technology and modular cassette-based platform architecture to address non-lethal drone interdiction requirements across defense, homeland security, and critical-infrastructure protection missions.

These programs remain in various stages of development and evaluation.

Private Security Firms and Guard Services

According to the Bureau of Labor Statistics, there were approximately 1.1 million privately employed security guards in the United States.

They represent a broad range of individuals, including those employed by investigation and security services, hospitals, schools, local government, and others.

We believe that the use of BolaWrap by security personnel could effectively provide a proactive, non-lethal option to gain control of encounters without relying on higher-force alternatives, potentially reducing the liability exposure of private security companies and their personnel.

Currently, the Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF") classifications restrict the ease of transfer of BolaWrap to non-government security firms.

We believe this classification is overly restrictive and we continue to work with the ATF and other regulatory bodies to pursue reclassification of our non-lethal products.

It is important to note that countries in which we have international customers do not impose similar transfer or possession restrictions on non-lethal BolaWrap devices, and we believe this should be the future for BolaWrap in the United States.

Defense and Homeland Security

Through Wrap Federal, our wholly-owned subsidiary established in 2025, we have created a dedicated entity to support future engagement with U.S.

federal government customers, including agencies within the Department of Defense, Department of Homeland Security, and other federal organizations.

We believe our non-lethal tools, training platforms, body-worn camera and cloud-based digital evidence management platform and C-UAS technologies have potential applications across multiple defense and federal law enforcement use cases.

The formation of Wrap Federal is intended to position us to more effectively navigate the procurement, compliance, and security requirements that are typical of federal government contracting as we seek to develop relationships within these markets.

Products and Solutions

Our core product and service offerings are designed to provide officers and agencies with integrated non-lethal tools, training, and tactics that support safer outcomes, and sustained readiness across the public safety ecosystem.

We focus our efforts on the following:

Our BolaWrap product line is a handheld, non-lethal device designed to give officers a proactive tactical option by deploying a Kevlar® tether that entangles the arms and/or legs, limiting a subject's mobility and balance.

The BolaWrap 150 employs electronic deployment, improved reliability, enhanced durability, and reduced weight compared to prior generations.

Upon deployment, the device creates a controlled interruption through sight, sound, and sensation, giving officers time, space, and tactical advantage to intervene earlier and manage encounters before contact distance collapses.

BolaWrap is sold with proprietary cassettes that are consumed upon each deployment and must be replaced, providing a recurring consumable revenue stream.

Wrap Reality™ Virtual Reality Training

Wrap Reality is an immersive VR training platform providing scenario-based training focused on human-factors awareness, decision making under stress, and use of force judgment.

The platform is designed to build and sustain the cognitive and tactical skills officers need to recognize intervention points, manage distance and positioning, and apply proportional, lawful responses in dynamic environments.

Wrap Reality supports law enforcement, corrections, and societal reentry training and offers a growing library of configurable scenarios, including 45 scenarios for law enforcement and corrections and 15 scenarios for societal reentry.

Wrap Reality may be deployed on premises or through cloud enabled environments and supports data capture, replay, and performance review.

WrapTactics™ Digital Training Platform

Launched in 2025, WrapTactics is a subscription based digital training and performance platform aimed at delivering short form, scenario-based instruction focused on non-lethal response tactics, decision-making under stress, and follow-on lawful control techniques.

The platform is designed to prevent skill decay by providing continuous, low-burden training that reinforces the tactical fundamentals (distance, positioning, timing, and force decision-making) that officers rely on in dynamic encounters.

WrapTactics complements our hardware and VR offerings and supports recurring revenue opportunities through bundled training and service offerings.

WrapVision™ Body‑Worn Camera and Digital Evidence Management

WrapVision, launched in 2025, is a body-worn camera solution assembled in North America and designed to meet federal procurement and data-sovereignty requirements.

WrapVision replaces our prior-generation Intrensic X2 camera hardware and serves as the front-end capture device within our digital evidence management ecosystem.

Our cloud-based DEM platform provides unlimited video storage along with video and evidence uploading, search, retrieval, redaction, and evidence sharing capabilities, reducing the resources agencies require to manage digital evidence.

Together, WrapVision and our DEM platform provide agencies with integrated accountability and transparency tools that complement our non-lethal and training solutions.

WrapVision builds on the Intrensic acquisition and reflects our strategy to deliver integrated solutions for public safety.

Counter-Unmanned Aircraft Systems (C-UAS) and Defense Applications

During 2025, we expanded research, development, and demonstration efforts applying our tether deployment technology to counter UAS applications.

MERLIN is designed to leverage the same self-contained cassette architecture underlying the BolaWrap platform, adapting it for non-lethal drone interdiction capabilities across defense, homeland security, and critical-infrastructure protection missions.

These initiatives remain in various stages of development and evaluation and are subject to government testing, funding, and procurement timelines.

Sales, Marketing, and Distribution

Our sales, marketing, and training organizations work together to drive revenue growth by building market awareness of our integrated non-lethal solutions, generating qualified leads, developing a strong sales pipeline, and cultivating long-term relationships with customers and distribution partners.

Our training capabilities not only support sales adoption but also generate revenue independently, as agencies place significant value on our professional training services.

Our primary target market is law enforcement agencies in the United States and internationally.

The purchasing decision for our products and services is typically made by a group that may include agency leadership, procurement officials, training coordinators, use-of-force policy advisors, and in some cases political decision-makers such as city council members.

The decision-making process can range from several weeks to over a year, influenced by budgetary constraints, policy review cycles, and multi-stakeholder approval requirements.

Our sales model has evolved from a single-product demonstration approach into a broader, solution-based engagement that integrates our full portfolio of non-lethal tools, training platforms, body-worn cameras, and digital evidence management capabilities.

We leverage product demonstrations, field deployment footage captured on body-worn cameras, and integrated solution presentations to build the case for agency-wide adoption.

Our goal is to convert initial engagement into long-term, multi-product customer relationships that include both product sales and recurring technology-enabled service subscriptions.

We generate revenue through two primary streams:

product sales and technology-enabled services.

Product sales include BolaWrap devices, cassettes, accessories, body-worn cameras, and Wrap Reality VR hardware and related equipment.

Technology-enabled services include software subscriptions for WrapTactics and our digital evidence management platform, as well as managed services, policy support, and professional training services.

We are focused on expanding our technology-enabled services revenue as we deepen customer relationships through programmatic training and service delivery models.

We sell our products and services primarily through our internal sales team, supplemented by a network of distributors, resellers, and strategic partners.

While we initially adopted a channel-first distribution model in 2019, we have since shifted to a direct sales approach as our primary go-to-market strategy, leveraging distribution partners and strategic relationships to extend our reach into markets and customer segments where local presence, specialized expertise, or established procurement relationships add value.

We maintain distribution coverage across all 50 U.S.

states and have shipped our products to over 60 countries.

Our domestic and international distribution agreements generally provide certain territorial rights, require minimum sales and follow-on performance commitments, and allow us to sell direct to customers where performance thresholds are not met or where direct engagement better serves the customer relationship.

We are also actively pursuing strategic partnerships with organizations that can extend our reach, enhance our technology integration capabilities, and strengthen our position across federal, defense, and international markets.

On October 2, 2025, we announced a strategic partnership with a government-focused technology aggregator, Carahsoft Technology Corp.

(“Carahsoft”) to expand access to our products and services across federal, state, and local government agencies through established procurement vehicles.

Under the agreement, Carahsoft will serve as Wrap's Master Government Aggregator, making our portfolio of technologies available to the public sector through Carahsoft's reseller partners and National Association of State Procurements Officials (NASPO) ValuePoint and OMNIA Partners contracts.

In November 2025, we partnered with a U.S.-based manufacturing and technology engineering firm to expand our domestic supply chain and support scalable, Made-in-America production of our non-lethal response and C-UAS platforms.

Prospective customers become aware of our solutions through a variety of channels, including social media, digital advertising, media coverage, press releases, web presence, direct sales outreach, and public relations efforts.

We also leverage body-worn camera footage of successful field deployments to demonstrate the real-world effectiveness of our products, which serves as a powerful lead generation and credibility-building tool across our broader portfolio.

Once a lead is generated, it is qualified by our inside sales team, and a sales representative or distribution partner engages with the prospective customer to discuss their operational needs and the solutions we offer.

We track our marketing and sales activities to provide visibility into lead flow, pipeline development, and conversion metrics.

Our marketing team engages with law enforcement agencies, public safety personnel, and risk management organizations to educate them on the benefits of our integrated non-lethal solutions.

We participate in select domestic and international trade shows, conferences, and industry events that we believe offer the highest return on our investment in market visibility and direct customer engagement.

Training, Demonstration, and Customer Success

We maintain a dedicated team focused on conducting demonstrations, delivering professional training, and supporting post-sale customer success.

We offer in-person training, webinar-based instruction, and digital training through our WrapTactics platform.

Training may occur before or after the initial purchase or deployment of our products.

We believe that providing comprehensive training and demonstrations to law enforcement officers and agency trainers increases their support for purchasing, deploying, and sustaining the use of our products within their departments.

Our training model is anchored by the Wrap "Train the Trainer" program, established in October 2018.

Under this program, our Master Instructors certify agency-level BolaWrap Instructors, who then train front-line officers in compliance with their department's policies.

BolaWrap Instructors are typically sworn law enforcement officers who serve as department trainers, defensive tactics instructors, or tactical team members.

They complete a certification course that includes a written examination and demonstrated proficiency in deploying the BolaWrap.

Instructor certification is valid for two years and requires renewal.

Agencies that adopt BolaWrap typically incorporate it into their use-of-force policies as a proactive, non-lethal tool that officers may deploy early in an encounter to gain time, space, and tactical advantage before resorting to higher-force options.

BolaWrap is generally classified at the lowest force level within agency policies, below pain-compliance tools such as chemical agents, impact projectiles, conducted energy weapons, and batons.

Many departments that deploy BolaWrap agency-wide integrate it into their broader in-service training rotations, incorporating BolaWrap deployment into scenario-based exercises across a range of operational contexts, including encounters with individuals experiencing mental health crisis, warrant service, and apprehension scenarios.

We believe that our investment in training infrastructure, instructor certification, digital training delivery, and post-sale customer success creates a meaningful competitive advantage and a significant barrier to new competition.

Our training and support capabilities are designed to serve agencies of all sizes and to deepen customer engagement over time through recurring training services and technology-enabled support.

Manufacturing and Supply Chain

We believe that maintaining scalable, domestically based assembly and manufacturing capabilities is critical to the performance of our products, the growth of our business, and our ability to meet the procurement requirements of federal, defense, and international customers.

We are committed to strengthening our domestic manufacturing footprint and supply chain as part of our broader strategy to support Made in America production across our product portfolio.

Manufacturing

believe that maintaining scalable assembly capabilities is crucial to the performance of our products and the growth of our business.

Our assembly processes involve unique systems and materials, and we contract with third-party suppliers to produce various parts, components,

and subassemblies.

We established initial startup production in Las Vegas in 2018, and in October 2019, we completed a move to and began

production at our current facility in Arizona.

In this facility, we perform manufacturing, final assembly, testing, and shipping of our

We have refined our internal processes to improve how we design, test, and qualify products, and we continue to implement rigorous

manufacturing and quality processes to track production and field issues.

We periodically implement design and component changes to reduce

our product costs and improve product reliability and manufacturability.

We aim to continually improve our operations to meet the growing

demand for our products and better serve our customers.

have established strong relationships with our key suppliers, and their timely and reliable delivery is crucial to our ability to meet

customer demand.

However, we are subject to challenges in our global supply chain, such as component shortages, increased lead times,

cost fluctuations, and logistics constraints, which can affect our production schedules and have a negative impact on our financial performance.

In late 2022, we started to ensure we have more final product inventory on hand to meet new business needs.

To support our continued

growth and operational needs, we relocated our manufacturing facility to Virginia, where a larger space will allow us to further enhance

our processes and scalability.

While we anticipate supply chain challenges to improve in the remainder of 2025, we recognize that future

supplier shortages and logistics issues could have a material adverse effect on our operations and financial results.

of December 31, 2024, we had backlog of approximately $64 thousand that was delivered in the first quarter of 2025.

The amount of backlog

at any point in time is dependent upon order timing, scheduled delivery dates to our customers and product lead times.

Most orders are

shipped shortly after order and backlog is typically associated with larger police agency orders.

Because of our history of shipping

shortly after order, we do not currently believe backlog at any period end is predictive of future order volume or revenues beyond the

reported amount.

Distributor and customer orders for future deliveries are generally subject to modification, rescheduling or in some

instances, cancellation in the normal course of business.

products come with a warranty that guarantees their quality and performance for up to one year from the date of purchase.

This warranty

is generally limited and may include certain shipping costs for the customer.

We also offer the option for our customers to purchase

additional one-year warranty increments for their products.

Company positions the BolaWrap product as a new non-invasive remote restraint solution for law enforcement rather than a replacement

for other devices currently in use.

When looking at the use of force continuum, we place our solution in a category completely separate

from common less lethal solutions that use pain compliance and can cause serious injuries or even death in some circumstances.

every law enforcement officer in the world who carries handcuffs should carry a BolaWrap at the same time as BolaWrap is leveraged just

prior to handcuffs.

we do compete with other use of force products for budget allocations.

The BolaWrap product may also be perceived as an alternative to

other solutions despite our valuable and separate positioning.

Because we believe the BolaWrap may be used more often than certain other

tools given, we expect to stand in a category of our own.

Many agencies with the BolaWrap do not consider it a use-of-force tool, which

uniquely distinguishes it from every other tool on an officer’s belt.

The most common interactions officers have with the public

revolve around de-escalating situations.

In such scenarios, the BolaWrap stands out as one of the safest de-escalation tool available.

Given these factors, we believe the BolaWrap may be used more often than certain other tools, positioning us to be widely recognized

as standing in a category of our own.

other use of force devices such as tasers (CEWs), pepper spray, pepperball, batons, and impact weapons may try to compete with the BolaWrap

However, many law enforcement personnel consider these to be distinct tools, each best-suited to a particular set of higher

use of force circumstances.

Purchasing one tool does not preclude the purchase of others, but budgetary considerations and space limitations

on officer’s belts may limit the number of devices purchased and carried.

The BolaWrap’s unique remote restraint use, effectiveness,

and low possibility of injury positions it as an effective competitor against all other alternatives.

We believe that in time the non-invasive

BolaWrap will be prioritized over these other less lethal devices for its ease of use, safety, and high probability of use throughout

a given year to officers in the field.

the virtual reality training space, there are numerous competitors offering simulators for law enforcement, including established video-based

2D simulators.

Furthermore, other virtual reality providers and developers focused on other applications may choose to compete in the

law enforcement training market in the future.

recognize that some of our competitors have substantially greater resources to devote to compete in the law enforcement market and may

introduce products with features and performance competitive to our product.

However, we believe that our unique positioning, strong

product and technology foundation, and dedicated professional training and sales support team provide a competitive advantage.

we believe that the depth and capability of our 3D Virtual Reality (VR) Wrap Reality Capability will prove to be impressive.

38 fully formed law enforcement scenarios and 25 corrections and societal reentry scenarios in 3D in addition to the customizability

of Wrap Reality Adapt which we believe provides more robust 3D options than our competitors.

The largest capitalized competitor in this

space currently offers only three 3D scenarios and is selling subscriptions of more than six million dollars a year.

a global company, we are subject to a wide range of domestic, federal, state, and local laws and regulations, as well as international

laws and regulations regarding shipments, customs, import, export, safe working conditions, manufacturing practices, environmental protection,

and hazardous substances disposal.

Compliance with these laws and regulations may entail significant costs, and failure to comply may

result in penalties or other enforcement actions.

BolaWrap products are classified as firearms and AOWs by the ATF, and we hold the necessary licenses to manufacture and deal in such

We believe these devices have been classified as AOW due to the lack of updates to outdated statutes and firearms regulations.

We are actively working to improve the legislation and to allow our products to be directly transferred to private security forces and

private individuals due to its safe effective capabilities standing alone in the non-invasive non-lethal category.

are also subject to state and international regulations, which may vary.

We comply with shipping regulations for dangerous goods, and

our products comply with standard safety requirements in the US and international markets.

We follow data protection laws and have a

We work with distributors and advisors familiar with applicable import regulations in our international markets.

Property Rights and Proprietary Information

have a policy of protecting our intellectual property assets, which include issued domestic and international patents, pending patents,

trademarks, copyrights, trade secrets, and contractual obligations.

We enter into confidentiality and nondisclosure agreements with employees,

consultants, and third parties to whom we disclose proprietary information.

These agreements prohibit disclosure of confidential information

both during and after the duration of the working relationship.

However, we recognize that such agreements may not always prevent disclosure

or provide adequate remedies for any breach.

We rely on copyrights, trade secrets, and other proprietary rights to protect the content

of our training services, including the Wrap Reality VR training software and content.

believe that strong product offerings that are continually upgraded and enhanced, combined with factors such as innovation, technological

expertise, and experienced personnel, will keep us competitive.

Therefore, we seek patent and other intellectual property protection

on important technological improvements that we make.

Before filing for patents, we disclose key features to patent counsel and maintain

these features as trade secrets prior to product introduction.

However, patent applications may not result in issued patents covering

all important claims, and there is a risk that they could be denied in their entirety.

of the date of this Annual Report, we currently have 31 issued US patents related to the BolaWrap technology and five additional US patents

In September 2018, we commenced filing our foreign patent applications selectively targeting the members of the European Patent

Office (39 countries) and 17 other countries, of which 53 patents have been issued to date.

To date we have a total of 84 issued domestic

and international patents for our small global company.

During 2024 we filed four patent applications, two of which were US filings.

We feel the investment in patent protection in the US and abroad strengthens our intellectual property and creates value in Wrap Technologies.

The failure to obtain patent protection or the loss of patent protection on our existing and future technologies or the circumvention

of our patents by competitors could have a material adverse effect on our ability to compete successfully.

have been granted trade name protection for “BolaWrap” and “Wrap” in multiple countries and expect to employ

a combination of registered and common law trade names, trademarks and service marks in our business.

We rely on a variety of intellectual

property protections for our products and technologies, including contractual obligations, and we intend to pursue a policy of vigorously

enforcing such rights.

law enforcement product and services industries are characterized by frequent litigation regarding patent and other intellectual property

Others, including academic institutions and competitors, hold numerous patents in less lethal and related technologies.

we are not aware of any existing patents that would materially inhibit our ability to commercialize our technology, others may assert

claims in the future.

Such claims, with or without merit, may have a material adverse effect on our financial condition, results of operations

or cash flows.

and Development

research and development initiatives are led by our internal personnel and make use of specialized consultants when necessary.

initiatives include basic research, mechanical and electrical engineering design and testing.

Future development projects will focus

on new versions of the BolaWrap technology, virtual reality and new public safety technologies that focus on safe and effective policing,

especially in our strategic space that does not use pain compliance.

the fiscal years ended December 31, 2024, and 2023, we spent approximately $2.3 million and $3.3 million, respectively, on company-sponsored

Our assembly processes involve specialized systems, materials, and quality control procedures.

We contract with third-party suppliers to produce various parts, components, and subassemblies, and we perform final assembly, testing, quality verification, and shipping at our manufacturing facility.

We established initial production in Las Vegas in 2018 and relocated to a facility in Arizona in October 2019.

In September 2025, we completed a move to a new facility in Norton, Virginia, which provides significantly expanded capacity compared to our prior location.

The Norton facility supports our current production requirements and provides the ability to accommodate future growth as demand increases across our product lines.

We have refined our internal processes to improve how we design, test, and qualify products, and we continue to implement rigorous manufacturing and quality processes to track production and field performance.

Our WrapVision body-worn camera is assembled in North America in alignment with our commitment to domestic production and federal data-sovereignty and procurement requirements.

We also work with domestic research and development partners to support the advancement of our C-UAS and other emerging technology programs.

We have established relationships with key suppliers, and their timely and reliable delivery is important to our ability to meet customer demand.

We source parts, components, and subassemblies from a combination of domestic and international suppliers and are actively working to increase the proportion of our supply chain that is U.S.-based.

We periodically implement design and component changes to reduce product costs, improve reliability and manufacturability, and where possible, shift sourcing to domestic alternatives.

We maintain finished goods inventory to support near-term customer demand and to reduce the impact of supply chain variability on order fulfillment.

However, we remain subject to risks inherent in our supply chain, including component availability, increased lead times, cost fluctuations, and logistics constraints, which can affect our production schedules and have a negative impact on our financial performance.

While we anticipate supply chain conditions to continue to stabilize, we recognize that future supplier shortages, logistics disruptions, or other supply chain challenges could have a material adverse effect on our operations and financial results.

As of December 31, 2025, backlog was approximately $209 thousand, primarily related to larger agency orders scheduled for near term delivery.

Backlog is subject to modification, rescheduling, or cancellation and is not necessarily indicative of future revenues.

The amount of backlog at any point in time is dependent upon order timing, scheduled delivery dates to our customers and product lead times.

Most orders are shipped shortly after order and backlog is typically associated with larger police agency orders.

Because of our history of shipping shortly after order, we do not currently believe backlog at any period end is predictive of future order volume or revenues beyond the reported amount.

Distributor and customer orders for future deliveries are generally subject to modification, rescheduling or in some instances, cancellation in the normal course of business.

The markets in which we operate are competitive and fragmented.

We compete with providers of conducted energy devices, less-lethal weapons, training platforms, body-worn cameras, digital evidence management systems, and emerging defense technologies.

Many of our competitors have substantially greater financial, technical, manufacturing, and marketing resources than we do.

We position BolaWrap as a non-lethal tool that is distinct from pain-compliance and neuromuscular incapacitation devices.

Rather than relying on pain or incapacitation to achieve compliance, BolaWrap creates a controlled interruption through sight, sound, and sensation, giving officers a proactive, lawful option to gain time, space, and tactical advantage before contact distance collapses.

While purchasing decisions may involve tradeoffs across use-of-force tools due to budgetary constraints, many agencies view BolaWrap as complementary rather than substitutive, addressing an operational gap where existing tools may represent too high a level of force to be deployed early in an encounter.

Beyond BolaWrap, we are building an integrated system of tools, training, and tactics designed to address the broader operational needs of public safety agencies;

spanning non-lethal response technology, scenario-based and human-factors training, body-worn cameras, and evidence management.

In these areas, we compete with both legacy 2D simulator providers and newer VR-based platforms, as well as established body-worn camera and digital evidence management vendors.

In the emerging counter-UAS market, we compete with a growing number of companies offering detection, electronic warfare, and kinetic interdiction solutions, though we believe our patented mechanical entanglement technology and modular cassette-based platform approach differentiate our offerings.

Competitive factors include safety, effectiveness, reliability, integration capabilities, regulatory acceptance, pricing, customer support, and training quality.

Government Regulation

As a global public safety technology and services company, we are subject to a wide range of federal, state, local, and international laws and regulations governing our products, operations, and commercial activities.

These regulations affect multiple aspects of our business, including product classification and licensing, manufacturing, export and import controls, data privacy and security, drone operations, defense procurement, and workplace safety and environmental compliance.

Compliance with these requirements is critical to our ability to manufacture, market, and sell our products and services, and the costs of compliance, as well as any failure to comply, could affect our financial results and competitive position.

Firearms Classification and Licensing

Our BolaWrap products are classified as "Any Other Weapon" ("AOW") by the ATF.

As a result, we are required to maintain a Federal Firearms License ("FFL") and Special Occupational Tax ("SOT") registration to manufacture and distribute these products.

This classification requires that transfers of BolaWrap to end users comply with applicable ATF requirements, which in practice limits our ability to transfer products directly to private security firms and individual consumers without additional regulatory steps.

Transfer, possession, and use restrictions on non-lethal devices such as BolaWrap vary by country, and we work with international distributors and legal advisors to ensure compliance with applicable local requirements in each market.

While the cost of maintaining our FFL and SOT licensing is not a significant financial burden, the classification constrains our competitive position relative to other non-lethal products that are not subject to the requirements of the National Firearms Act of 1934.

State and Local Regulations

Our products are also subject to state and local laws and regulations, which may vary by jurisdiction.

Certain states impose restrictions on the possession, transfer, or use of devices classified under the ATF or similar state-level frameworks.

Export Controls and International Trade

Our international sales are subject to U.S.

export control regulations, customs requirements, and international trade compliance obligations.

Depending on the product and destination, our exports may be regulated under the International Traffic in Arms Regulations (ITAR) administered by the U.S.

Department of State, the Export Administration Regulations (EAR) administered by the U.S.

Department of Commerce, or both.

Compliance with export control regulations adds time and administrative cost to our international sales process and may limit our ability to sell certain products in certain countries or to certain end users.

We work with international distributors and trade compliance advisors to navigate applicable import and export regulations in each market.

Counter-UAS and Drone Regulations

Our C-UAS program, MERLIN, involves technologies that may be subject to regulation by multiple federal and international authorities.

In the United States, drone operations are regulated by the Federal Aviation Administration ("FAA") under Title 14 of the Code of Federal Regulations, and counter-drone technologies are subject to evolving federal regulatory frameworks that govern which entities are authorized to detect, track, and mitigate unmanned aircraft.

Our C-UAS products may also be subject to export control classifications and, if commercialized for defense applications, additional regulatory requirements applicable to defense articles and defense services.

The regulatory environment for counter-UAS technology is evolving, and changes in federal law or FAA policy could affect the timeline and scope of commercialization of our C-UAS programs.

Data Privacy, Cybersecurity, and Evidence Management

Our body-worn camera and digital evidence management solutions involve the collection, storage, processing, and transmission of law enforcement data, including video, audio, and evidentiary records.

These activities are subject to federal and state data protection, privacy, and information security requirements, including the Criminal Justice Information Services ("CJIS") Security Policy, which establishes security standards for any entity that accesses or manages criminal justice information.

We are also subject to state-level privacy laws and, in our international markets, data protection regulations that may impose varying requirements on how law enforcement data is collected, stored, and shared.

Compliance with these requirements may require ongoing investment in information security infrastructure, data handling procedures, and audit and certification processes.

Federal Procurement and Trade Compliance

As we pursue opportunities with U.S.

federal government customers through Wrap Federal, our wholly-owned subsidiary, we are subject to procurement regulations and compliance requirements applicable to federal contractors.

Our products are Trade Agreements Act (TAA) compliant, which is a requirement for products sold through federal procurement channels, including the General Services Administration (GSA).

Federal contracting may subject us to additional regulatory requirements.

Our strategy is to build a diversified public safety technology platform centered on integrated non-lethal solutions that combine tools, training, and tactics to give officers and agencies proactive, lawful control of encounters while improving safety, transparency, and operational effectiveness.

We are executing this strategy through a combination of expanding our core BolaWrap business, developing and scaling new product lines and service offerings, growing recurring revenue through subscription-based platforms, entering adjacent markets through dedicated federal and defense initiatives, and expanding our international presence.

Expanding BolaWrap Adoption

BolaWrap remains the foundation of our product portfolio and our primary customer acquisition tool.

Our growth strategy for BolaWrap focuses on both acquiring new agency customers and expanding adoption within existing customers toward agency-wide deployment.

Many agencies that have initially purchased BolaWrap for evaluation or limited deployment represent meaningful expansion opportunities as they integrate the device into their use-of-force policies, training programs, and standard-issue equipment.

We support this expansion through professional training, instructor certification, policy integration assistance, and ongoing customer success engagement.

We believe that broader deployment within agencies also drives recurring consumable revenue through cassette replenishment, replacement, and training use.

Deepening Customer Relationships Through Programmatic Delivery

A central element of our strategy is shifting from selling individual products to delivering integrated programs that combine tools, training, and tactics into a sustained operational framework for agencies.

Under this approach, we engage with agencies not only as a product supplier but as a long-term partner supporting their non-lethal operational capabilities.

This model is designed to include BolaWrap hardware and consumables, WrapTactics digital training subscriptions, professional in-person training services, policy support, and where applicable, body-worn camera and evidence management solutions.

We believe this programmatic approach increases customer retention, expands revenue per agency, and creates deeper, longer-term relationships that are more resilient than transactional product sales.

Growing the Body-Worn Camera and Digital Evidence Management Business

Through WrapVision, our body-worn camera, and our cloud-based digital evidence management platform, we are building a standalone product line that also complements our core non-lethal solutions portfolio.

We believe our offering provides agencies with a cost-effective alternative to incumbent providers in a market where transparency mandates and evidence management requirements continue to drive adoption.

WrapVision can be sold independently to agencies seeking an affordable, high-quality body-worn camera and evidence management solution, and it can also be offered alongside BolaWrap and WrapTactics as part of an integrated program.

We believe our ability to offer agencies a single-vendor solution that addresses non-lethal tools, training, and accountability creates a differentiated competitive position, particularly among small and mid-sized agencies that may be underserved.

Advancing Counter-UAS Programs

Through our MERLIN program and related research and development initiatives, we are pursuing entry into the counter-unmanned aircraft system market.

Our C-UAS strategy leverages our proprietary mechanical entanglement technology and modular cassette-based platform to offer a non-lethal approach to drone interdiction that does not rely on electronic jamming or kinetic destruction.

We are pursuing government testing and evaluation opportunities, research and development partnerships, and internal technology advancement with the goal of positioning our C-UAS solutions for future procurement across defense, homeland security, and critical infrastructure protection applications.

These programs remain in various stages of development and evaluation, and we expect continued investment in this area before material revenue is generated.

Expanding Federal and Defense Market Access

Through Wrap Federal, we have established a dedicated entity to support engagement with U.S.

federal government customers, including agencies within the Department of Defense, Department of Homeland Security, and other federal organizations.

Our non-lethal tools, training platforms, and C-UAS technologies have potential applications across multiple federal use cases, and we believe a dedicated federal subsidiary positions us to more effectively navigate the procurement, compliance, and security requirements specific to these customers as we seek to develop relationships within these markets.

Expanding International Sales

We intend to continue expanding our international presence across law enforcement and public safety markets worldwide.

We maintain a network of international distributors.

We see broad-based international interest in our solutions, with particular momentum in South America.

International growth is supported by the centralized procurement dynamics in many countries, where national-level adoption decisions can result in large-scale deployments.

We focus significant resources on supporting our international distribution partners through training, business development, and sales support.

Pursuing Strategic Acquisitions and Partnerships

We intend to continue evaluating strategic acquisitions, partnerships, and collaborations that complement our existing product and service offerings, expand our technology capabilities, strengthen our distribution network, or accelerate entry into new markets.

Our acquisition of NSENA in 2020, which provided the foundation for our Wrap Reality virtual reality training platform and our acquisition of Intrensic in 2023, which provided the foundation for our WrapVision body-worn camera and digital evidence management platform, are examples of this approach.

We also pursue strategic partnerships with organizations that extend our reach into federal, defense, and international markets.

Our products generally include a limited warranty that covers defects in materials and workmanship for up to one year from the date of purchase.

Customers may also purchase extended warranty coverage for additional periods.

Warranty terms vary by product and jurisdiction.

Intellectual Property

We have a policy of protecting our intellectual property assets, which include issued domestic and international patents, pending patents, trademarks, copyrights, trade secrets, and contractual obligations.

We enter into confidentiality and nondisclosure agreements with employees, consultants, and third parties to whom we disclose proprietary information.

These agreements prohibit disclosure of confidential information both during and after the duration of the working relationship.

However, we recognize that such agreements may not always prevent disclosure or provide adequate remedies for any breach.

We rely on copyrights, trade secrets, and other proprietary rights to protect the content of our training services, including the Wrap Reality VR training software and content.

We believe that strong product offerings that are continually upgraded and enhanced, combined with factors such as innovation, technological expertise, and experienced personnel, will keep us competitive.

Therefore, we seek patent and other intellectual property protection on important technological improvements that we make.

Before filing for patents, we disclose key features to patent counsel and maintain these features as trade secrets prior to product introduction.

However, patent applications may not result in issued patents covering all important claims, and there is a risk that they could be denied in their entirety.

As of December 31, 2025, we held 93 issued patents and 149 pe nding patent applications with expiration dates ranging fro m 2032 to 2047 in the United States and internationally related to non-lethal systems, tethered-deployment technology, training platforms, and digital evidence management solutions.

We enter into confidentiality and invention assignment agreements with employees, consultants, and third parties.

Despite these efforts, there can be no assurance that our intellectual property rights will not be challenged, circumvented, or invalidated.

Research and Development

This equates to 52% of revenue in 2024 and 53% of revenue in 2023.

Future levels of research and development

expenditure will vary depending on the timing of further new product development and the availability of funds to carry on new and additional

research and development on currently owned technologies or in other areas.

During 2025, in addition to continued development and enhancement

of our remote restraint products, we expect to incur additional costs improving our training systems including enhancing our Wrap Reality

on premise and cloud platforms and related content.

As mentioned earlier we believe we are ahead of many in the law enforcement 3D virtual

reality training space and have built up significant capability to compete globally in the law enforcement and corrections VR space.

and Royalties

are obligated to pay royalties pursuant to an exclusive Amended and Restated Intellectual Property License Agreement (the “License

Agreement”), dated as of September 30, 2016, with Syzygy Licensing, LLC (“Syzygy”), a private technology invention,

consulting and licensing company owned and controlled by Elwood G.

Norris, a founder and former officer and current stockholder of the

Company, and James A.

Barnes, a former officer and stockholder of the Company.

Syzygy has no ongoing operations, and does not engage

in any manufacturing, production or other related activities.

License Agreement provides for the payment of royalties of 4% of revenue from products employing the licensed device technology up to

the earlier to occur of (i) the payment by the Company of an aggregate of $1.0 million in royalties, or (ii) September 30, 2026.

development and patent costs have been paid by us and patent applications and the technology related to the BolaWrap 100 and the BolaWrap

150 have been completely and solely assigned to the Company, subject to this royalty obligation.

As of December 31, 2024, we have incurred

the maximum $1.0 million in royalties with $81 thousand included in accounts payable at year-end.

and international law enforcement has seasonality with respect to when they purchase and expend funds.

Many local law enforcement agencies

in the US are on a July 1 to June 30 calendar year resulting in increased spending in the third and fourth quarter of the fiscal year.

The US federal government is on an October 1 to September 30 budget year, resulting in use or lose spending that often occurs in in the

third quarter of the fiscal year.

Some domestic and international budgets are on a calendar fiscal year resulting in the fourth quarter

typically being the largest buying quarter of the year.

Information about Customer Concentration and Geographic Areas

information regarding customer concentration and geographic areas in which we operate is contained in Note 18.

of December 31, 2024, we employ 19 full-time employees in the U.S.

In addition, we engage consultants from time to time to provide additional

sales, marketing, training and research and development services, and anticipate engaging consultants going forward to supplement our

full- and part-time personnel.

our commitment to operational excellence and maintaining a favorable employer reputation, we strive to create a work environment that

attracts, develops, and retains the best talents in the industry.

Our employees are offered an engaging work experience that contributes

to their professional growth and career advancement.

We acknowledge that the success of our business is dependent on the collective talents

and dedication of our employees, and we are committed to investing in their professional growth and success.

a public company, we are required to file our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K,

proxy statements on Schedule 14A and other information (including any amendments) with the Securities and Exchange Commission (the “ SEC ”).

The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that

file electronically with the SEC.

We conduct research and development ("R&D") on an ongoing basis to enhance our existing products, develop new applications for our core technologies, advance emerging technology programs, and improve manufacturing efficiency and product reliability.

Our R&D efforts are led by our internal engineering, software development, and product design team and are supplemented by specialized consultants and domestic research and development partners when additional expertise or capacity is required.

Our R&D activities span mechanical and electrical engineering, software development, materials science, manufacturing process improvement, and content development for our training platforms.

BolaWrap Platform

We are investing in next-generation BolaWrap development, including early-stage work on future device iterations and continued refinement of our cassette-based platform architecture.

We also focus on manufacturing process improvements and design changes intended to reduce production costs, improve product reliability, and enhance manufacturability.

We believe our modular cassette architecture provides a foundation for future product variants and expanded use-case applications.

Counter-UAS Technologies

A significant portion of our research and development effort is directed toward our counter-unmanned aircraft system programs, including MERLIN and related initiatives.

This work focuses on advancing our proprietary mechanical entanglement technology and modular platform for non-lethal drone interdiction applications across defense, homeland security, and critical infrastructure protection missions.

Our C-UAS development efforts are supported by domestic R&D partners with specialized capabilities in areas relevant to these programs.

All C-UAS research and development is currently company-sponsored.

WrapTactics Training Platform

We are continuing to develop and enhance the WrapTactics platform, including expanding its content library, building out hybrid training capabilities that integrate digital delivery with in-person instructor certification, and improving platform functionality and user experience.

We believe ongoing investment in WrapTactics is central to our strategy of delivering programmatic, subscription-based training that sustains officer readiness and generates recurring revenue.

WrapVision and Digital Evidence Management

Our WrapVision body-worn camera platform is stable and in active deployment.

We continue to make enhancements to our cloud-based digital evidence management software to improve functionality, user experience, and integration with agency workflows.

Development efforts in this area focus on incremental improvements and feature additions rather than fundamental platform redesign.

Wrap Reality Virtual Reality Training

Our Wrap Reality VR platform currently includes scenario libraries for law enforcement, corrections, and societal reentry applications.

While our near-term training development investment is primarily focused on WrapTactics, we have plans to expand the Wrap Reality content library with additional scenarios and to continue enhancing the platform as virtual reality and simulation-based training adoption grows across public safety markets.

Future levels of research and development investment will vary depending on the timing of new product development milestones, the progression of our C-UAS programs, the availability of government-funded research opportunities, and the resources available to advance development across our product portfolio.

We expect research and development to be a meaningful area of investment as we continue to expand our diversified public safety technology platforms.

Our operating results are influenced by government budget cycles and procurement timing.

law enforcement agencies operate on fiscal years ending June 30, while federal agencies operate on fiscal years ending September 30, which can result in higher purchasing activity in certain quarters.

International purchasing patterns may also contribute to variability in quarterly results.

As of December 31, 2025, we employed approximately 25 full-time employees.

During 2025, we grew our workforce 32% compared to the end of the prior year, with additions concentrated in our research and development, sales and marketing divisions.

In addition, we engage consultants and contractors from time to time to supplement our full-time personnel across sales, marketing, training, engineering, and other functions.

Our success depends on the continued service of our employees and on our ability to attract, retain, and motivate talented individuals across our organization.

We are committed to fostering a work environment that supports professional development, encourages innovation, and aligns our team with the Company's mission of enabling safer outcomes in public safety.

We believe our employees are critical to our ability to execute on our strategic priorities and we continue to invest in building the capabilities and culture necessary to support our growth.

Available Information

As a public company, we are required to file our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements on Schedule 14A and other information (including any amendments) with the SEC .

The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

You can find our SEC filings at the SEC’s website at www.sec.gov .

Internet address is www.wrap.com .

Our Internet address is www.wrap.com .

Information contained on our website is not part of this Annual Report.

Our SEC filings (including

any amendments) are also made available free of charge on www.wrap.com , as soon as reasonably practicable after we electronically

file such material with, or furnish it to, the SEC.

Our SEC filings (including any amendments) are also made available free of charge on www.wrap.com , as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business