−Removed: We are a global public safety technology and services company delivering modern policing solutions to law enforcement and security personnel.
−Removed: We began sales of our first public safety product, the BolaWrap 100 remote restraint device, in late 2018.
−Removed: In October 2021 we released a new generation product, the BolaWrap 150.
−Removed: The BolaWrap 150 is electronically deployed and is more robust, smaller, lighter and simpler to deploy than the BolaWrap 100 that is being phased out.
−Removed: BolaWrap 150 Remote Restraint Device
−Removed: BolaWrap 150 Remote Restraint Device and Cassette
−Removed: As an alternative to more traditional means of restraint and detainment, BolaWrap represents a breakthrough in the development of a less-lethal tool on the low end of the applied force continuum.
−Removed: As communities continue to ask for more compassionate and safe policing practices, BolaWrap is rapidly gaining worldwide awareness and recognition through media exposure, trade show participation, product demonstrations and word of mouth. 
−Removed: The immediate addressable domestic market for our solutions consists of approximately 900,000 full-time sworn law enforcement officers at over 15,300 federal, state and local law enforcement agencies in the United States.
−Removed: We are also exploring other domestic markets, including military and private security.
−Removed: Our international focus is on countries with the largest police forces.
−Removed: The 100 largest international police agencies are estimated to have over 12.1 million law enforcement personnel.
−Removed: According to 360iResearch, a market research firm, we participate in a segment of the non-lethal products global market expected to grow to $16.1 billion by 2027.
−Removed: We focus our efforts on the following products, services and solutions:
−Removed: BolaWrap Remote Restraint Device –
−Removed: is a hand-held remote restraint device that discharges an eight-foot bola style Kevlar tether to entangle an individual at a range of 10-25 feet.
−Removed: BolaWrap assists law enforcement to safely and effectively control encounters early in the use of force continuum without resorting to painful force options.
−Removed: Wrap Reality –
−Removed: is a law enforcement training system utilizing immersive computer graphics virtual reality with proprietary software-enabled content.
−Removed: 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.
−Removed: In addition to the United States law enforcement market, we have shipped our restraint products to 51 countries.
−Removed: We have established an active distributor network with 12 domestic distributors representing 49 states and one dealer representing Puerto Rico.
+Added: We are a global public safety technology and services company organized in March 2016 delivering modern policing solutions to law enforcement and security personnel.
+Added: We are a mission-driven organization focused on improving public safety encounters and outcomes.
+Added: In late 2018, we commenced the sale of our initial public safety product, the BolaWrap 100 remote restraint device.
+Added: In 2020, we expanded our public safety technology offerings by introducing a virtual reality training platform called Wrap Reality, which is now being sold to law enforcement and corrections departments for simulation training and societal reentry scenarios.
+Added: In early 2022, we delivered an improved version of our flagship product, the BolaWrap 150, which is electronically deployed, more robust, lighter, and simpler to use compared to the BolaWrap 100s. 
+Added: We believe our solutions have an immediate addressable market consisting of about 900,000 full-time sworn law enforcement officers at over 18,000 federal, state, and local law enforcement agencies in the US, as well as 12.4 million police officers in more than 100 countries.
+Added: Additionally, we are exploring other domestic markets such as military and private security when allowable, while also targeting countries with the largest police forces as part of our international focus.
+Added: We operate in a segment of the non-lethal products global market, which is expected to reach $16.1 billion by 2027, as projected by 360iResearch, a market research consulting firm. 
+Added: We focus our efforts on the following products and services:
+Added: BolaWrap Remote Restraint Device  –
+Added: is a safe hand-held remote restraint device that discharges a seven and a half-foot Kevlar tether to wrap an individual at a range of 10-25 feet.
+Added: BolaWrap assists law enforcement to safely detain individuals without the need for pain compliance and higher uses-of-force.
+Added: Wrap Reality  –
+Added: is a virtual reality training system employing immersive computer graphics with proprietary software-enabled content.
+Added: It allows up to two participants to enter a simulated training environment simultaneously with customized weapon controllers that enable trainees to engage in strategic decision making along including non-use-of-force and verbal training.
+Added: In addition to the US law enforcement market, we have shipped our products to 59 countries.
+Added: We have established an active distributor network representing 50 states and one dealer representing Puerto Rico.
We have distribution agreements with 49 international distributors covering 54 countries.
−Removed: We focus significant sales, training and business development efforts to support our distribution network.
−Removed: We focus significant resources on research and development innovations and continue to enhance our products and plan to introduce new products.
−Removed: We believe we have established a strong branding and market presence globally and have established significant competitive advantages in our markets.
+Added: We focus on significant sales, training and business development efforts to support our global distribution network.
+Added: We allocate significant resources to research and development for product innovation and product improvement.
+Added: We believe we have built a robust brand and global market presence, with notable competitive advantages in our industry.
+Added: Wrap is at the forefront of designing remote restraint tools that focus on de-escalating law enforcement encounters by wrapping up a subject to prevent mobility and fighting which reduces risk of injury to the officer and to the individuals with whom they are interacting.
+Added: Recent Developments
+Added: In November 2022, the Company entered into a Professional Services and Technology Acquisition Agreement (the “
+Added: Agreement ”) with Lumeto, Inc.
+Added: Lumeto ”) and Spatial Industries Group, Inc.
+Added: Spatial ”), whereby Lumeto and Spatial will provide the Company certain technology, services, and perpetual licenses for use within the Company’s Wrap Reality virtual simulation training platform.
+Added: The Company expects to realize the benefit of an upgraded cloud virtual reality platform as a result of the Agreement, as well as capabilities and resources to support its growth of law enforcement and corrections virtual reality training modules and enhanced capabilities.
+Added: Wrap Reality’s Cloud VR platform also has significant value in the firearms safety, concealed weapons, and civilian training space in addition to law enforcement, corrections, military and private security markets.
Industry Background
−Removed: The market for use-of-force related products and devices includes law enforcement agencies, correctional facilities, military agencies, private security guard companies and retail consumers.
−Removed: We believe law enforcement officials are the opinion leaders regarding market acceptance of new public safety products.
−Removed: We are focused on the law enforcement agency segment of the market for our BolaWrap remote restraint solution and the Wrap Reality virtual reality system.
−Removed: A number of well-publicized national events, such as the death of George Floyd, the protesting thereafter, the Capitol riots and other publicized encounters and events throughout 2020 and 2021, have highlighted some of the challenges of modern policing and emphasized the need for more hands-off, less-lethal engagements and new approaches for more extensive officer training.
−Removed: Police reform and reorganization of police departments have now become a topic with heightened community focus and public engagement.
−Removed: We believe these events are garnering additional government funding and community support for new law enforcement solutions and more focused training.
−Removed: In conversations with industry leading organizations such as the Major City Chiefs Association (" MCCA "), International Association of Chiefs of Police (" IACP "), and others, police reform is a priority and area of focus in the Biden-Harris administration.
−Removed: Currently, law enforcement agencies authorize a continuum of force options ranging from verbal commands to lethal force.
−Removed: Studies have concluded that most police officers never deploy lethal force in the course of their careers.
−Removed: Although a majority of law enforcement officers around the world are armed with firearms, only a small percentage will actually ever use them.
−Removed: Officers, however, use less-lethal force on a regular basis.
−Removed: Traditional tactics such as using a control hold, baton, club, or combat to control a suspect may result not only in a risk of injury to the suspect, but also a risk that the officer will be injured.
−Removed: Other force options including chemical spray, impact munitions and CEWs, not only risk injury, but are often controversial.
−Removed: Each weapon available to law enforcement has distinct advantages and disadvantages, and we believe law enforcement agencies require a variety of different tools for different situations.
−Removed: We believe BolaWrap is a necessary tool to meet modern policing requirements when individuals do not respond to verbal commands.
−Removed: At the same time, the public is demanding less-lethal policing.
−Removed: This is even more apparent in police interactions with persons in crisis and the mentally ill.
−Removed: According to a report by The State of Mental Health in America, 2018, published by The Mental Health America an estimated 40 million adults in the U.S.
−Removed: suffer from mental health issues.
−Removed: And, in a 2015 report on The Role of Mental Illness in Fatal Law Enforcement Encounters, the Treatment Advocacy Center:
−Removed: Office of Research & Public Affairs, 7.9 million individuals have severe mental illness that affect their thinking and behavior.
−Removed: Amounting to somewhat fewer than four in every 100 adults in America, individuals with severe mental illness generate no less than one in ten calls for police service and occupy at least one in five prison and jail beds in the U.S.
−Removed: An estimated one in three individuals transported to hospital emergency rooms in psychiatric crisis are taken there by police.
−Removed: BolaWrap enables officers to more safely and humanely take subjects into custody without injury to get them the help they need.
−Removed: BolaWrap restraint of individuals at a distance may offer reduced frequency of deployment of other control techniques, including CEWs, especially in encounters with the mentally ill.
−Removed: Litigation and insurance costs involving use of force for law enforcement agencies can be significant, with settlements in the millions of dollars for many departments.
−Removed: Reducing the frequency of need for other use of force tools and the number of injuries and fatalities caused by law enforcement officers may reduce the number of legal cases filed against agencies for excessive use of force, wrongful death and injury.
−Removed: We believe BolaWrap increases goodwill between public safety agencies and their communities.
−Removed: Community relations considerations can be particularly important at a time when almost any interaction with public safety officers can be recorded and scrutinized by the media and the public.
−Removed: The industry response to BolaWrap confirms the need to fill a gap between verbal commands and pain inducing compliance tools.
−Removed: During 2021 dozens of agency released body or dash camera videos from actual police uses which demonstrated the utility of BolaWrap to safely detain persons often for transport for medical help.
−Removed: Our goal is to equip every public safety officer with the BolaWrap remote restraint solution.
−Removed: We participate in the global non-lethal market that, according to the January 2022 report by 360iResearch, was estimated to be $8.3 billion in 2020, $9 billion in 2021 and expected to grow to $16.1 billion in 2027.
+Added: The 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.
+Added: 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 and Wrap Reality virtual reality system.
+Added: Recent events, such as the rise in mental health cases, police reform, and reorganization of police departments, have started a growing conversation on the need for de-escalation before pain-compliance policing policy across the country.
+Added: 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.
+Added: This movement highlights a growing need for new approaches, which we believe will drive demand for our innovative and safe law enforcement solutions.
+Added: When 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.
+Added: 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®.
+Added: Our BolaWrap product offers an alternative.
+Added: 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.
+Added: 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.
+Added: We 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 every interaction with public safety officers is subject to public and media scrutiny.
+Added: We believe the law enforcement community’s response to BolaWrap demonstrates the need for the product and its utility in safely detaining individuals.
+Added: Our goal is to equip every public safety officer with the BolaWrap remote restraint solution that they carry with them each day.
+Added: We participate in the global non-lethal market that, according to the January 2022 report by 360iResearch, was expected to grow to $16.1 billion in 2027.
The following segments are our target markets:
Domestic and International Law Enforcement
−Removed: Federal, state and local law enforcement agencies in the United States currently represent the primary target market for our products and services.
−Removed: According to the FBI’s Criminal Justice Information Services Division in 2018 there were over 800,000 local and state full-time law enforcement officers in the U.S.
−Removed: In October 2019, the U.S.
−Removed: Department of Justice reported that based on 2016 data, there were over 100,000 full-time federal officers primarily providing police protection, and over 15,300 general purpose law enforcement agencies in the U.S.
−Removed: Federal officers include over 37,000 customs and border patrol officers.
−Removed: We believe our product line can be an effective tool to safely assist in detention of individuals subject to the agency’s jurisdiction.
−Removed: The BolaWrap offers an additional tool for frontline agents to de-escalate encounters while effecting agent responsibilities.
−Removed: Additionally, we have estimated an addressable international market of over 12.1 million police officers in the 100 largest police forces gathered from individual country statistics outside the U.S.
−Removed: We delivered our first international order in 2018 and in 2019 entered into agreements with our first international distributors.
−Removed: Through December 31, 2021, we have delivered BolaWrap products to 51 countries, with international revenues during 2021 representing 60% of total revenues.
−Removed: We currently anticipate that sales attributable to international markets will continue to represent significant sales in the fiscal year ending December 31, 2022.
−Removed: Our belief is based on the fact that sales of our products within the U.S.
−Removed: to larger agencies are characterized by longer sales cycles compared to international sales, where purchase decisions are largely centralized at the national level.
+Added: Our products and services are primarily targeted at federal, state, and local law enforcement agencies in the US.
+Added: 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.
+Added: Our product line, including BolaWrap, can be an effective tool for safe detention of individuals under the jurisdiction of these agencies.
+Added: We have also identified an international market opportunity of over 12.1 million police officers in the 100 largest police forces outside the US.
+Added: We have delivered products to 59 countries and have entered into agreements with international distributors, with international sales representing a significant portion of our revenues in 2022.
+Added: We anticipate that sales attributable to international markets will continue to 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.
+Added: Often, the international markets have large national police forces.
+Added: Conversely, in the US, the market is more fragmented with many smaller agencies and longer procurement and sales cycles.
+Added: We expect international sales to continue to be lumpy due the timing of purchase decisions and relatively large size of orders.
Correctional Facilities
−Removed: In 2005, the United States Bureau of Justice statistics (“Census of State and Federal Correctional Facilities, 2005,”
−Removed: Department of Justice, Bureau of Justice Statistics, published October 2008) estimated that there were 295,000 correctional officers in over 1,800 federal and state correctional facilities in the United States, therefore representing a large potential market for our products and services.
+Added: In 2019, the US Bureau of Justice statistics (“Census of State and Federal Correctional Facilities, 2019,”
+Added: US Department of Justice, Bureau of Justice Statistics, published November 2021) estimated that there were 240,000 correctional officers in over 1,000 federal and state correctional facilities in the US, representing a large potential market for our products and services.
+Added: 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.
Private Security Firms and Guard Services
According to 2019 Bureau of Labor Statistics estimates (“Occupational Employment Statistics,”
−Removed: United States Department of Labor), there were approximately 1.1 million privately employed security guards in the U.S.
−Removed: They represent a broad range of individuals, including those employed by investigation and security services, hospitals, schools, local government, and others.
+Added: US Department of Labor), there were 1.1 million privately employed security guards in the US They represent a broad range of individuals, including those employed by investigation and security services, hospitals, schools, local government, and others.
We believe that some security personnel armed with the BolaWrap could be effective to de-escalate some encounters without eliminating other devices available today.
Providing guards with the BolaWrap may reduce the potential liability of private security companies and personnel in such encounters.
−Removed: In most countries private security personnel outnumbers police officers.
−Removed: Research produced and reported by The Guardian suggests there were over 20 million private security workers worldwide in 2017 and that global spending on private security was anticipated to exceed $240 billion in 2020.
−Removed: Just the ten largest target countries outside the U.S.
−Removed: had approximately 17 million security workers in 2017.
−Removed: Although there are use cases in private security, correctional facilities and in military policing, we are currently targeting our products and services for law enforcement.
−Removed: We do not currently plan a consumer version of the device.
+Added: Today, ATF classifications play a role in restricting Wrap's ability to transfer easily to non-government security firms.
+Added: 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.
+Added: We note that some of our international customer countries do not have any transfer or possession restrictions on the non-lethal BolaWrap devices and we believe this should be the future for BolaWrap.  
Virtual Reality Training Market
−Removed: According to a 2019 report published by Allied Market Research, the virtual training and simulation market size was valued at $204.41 billion in 2019 and is projected to grow to $601.85 billion by 2027.
−Removed: We believe virtual reality and simulation will expand in many nascent industries including law enforcement.
−Removed: Although a relatively small segment today, law enforcement and military are important segments of this market and the rise in awareness regarding virtual training and simulation drives market growth.
−Removed: Technology innovations now allow virtual reality to bring real world situations into the virtual space in a 360-degree immersion.
+Added: The virtual training and simulation market is projected to reach $602 billion by 2027, according to a 2019 report by Allied Market Research.
+Added: 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.
+Added: 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.
+Added: Advancements in technology now enable virtual reality to recreate real-world scenarios in a 360-degree immersive environment.   
Wrap Products and Services
BolaWrap Remote Restraint
−Removed: The BolaWrap 100 was our first remote restraint product, with the BolaWrap 150 (collectively with the BolaWrap 100, the " BolaWrap ") released in October 2021.
−Removed: The BolaWrap 150 is electronically deployed and is more robust, smaller, lighter and simpler to deploy than the BolaWrap 100 that is being phased out.
−Removed: BolaWrap is a hand-held remote restraint device that discharges an eight-foot Kevlar tether to entangle an individual at a range of 10-25 feet.
−Removed: Inspired by law enforcement professionals, the device allows law enforcement to safely and effectively control encounters on the low end of the applied-force continuum.
−Removed: The BolaWrap functions by wrapping an individual’s arms and/or legs, impeding a subject from fleeing a scene, rapidly approaching an officer, or inducing harm to themselves or others.
−Removed: This device enables officers to safely and humanely help take subjects into custody without injury in order to get them the help they need.
−Removed: The small, light, but rugged BolaWrap is designed to provide remote restraint while other use of force continuum options remain open.
−Removed: The design of the device ensures a wide device-effectiveness zone;
−Removed: it will impede a subject’s movement when deployed at the arms or legs.
−Removed: A guiding laser ensures accurate placement of the Kevlar tether, mitigating the risk of injury to subject and officer by quickly ending an encounter.
−Removed: Quick ejection and rapid replacement of BolaWrap cassettes allows one device to be reused in a single encounter or in multiple encounters.
−Removed: There are limited effective options for remote engagement, so when verbal commands are ignored, law enforcement is faced with either going “hands on”
−Removed: or escalating to potentially injurious less-lethal forces or a firearm.
−Removed: The BolaWrap has shown to be effective in restraining individuals, hindering the flight ability and reducing the ability to fight, allowing effective officer action.
−Removed: We believe our tool is essential to meet modern policing requirements in working with subjects who are incapable of responding to verbal commands.
−Removed: With increased public attention paid to mental illness and implicit bias, there has also been increased agency demand for an effective non-lethal tool that does not rely on pain compliance.
−Removed: We believe our device minimizes the need to employ other uses of force, including hand-to-hand combat and other less-lethal weapons.
−Removed: The BolaWrap does not rely on pain to gain compliance or electricity-enabled neuromuscular incapacitation for effectiveness.
−Removed: The wrapping effect is intended to impede flight while not inducing uncontrolled falls or injury.
−Removed: There is no issue of recovery time, as is the case with CEW, impact munitions or chemical devices.
−Removed: Other less-lethal weapons relying on “pain compliance”
−Removed: have been shown to have an adverse effect, sometimes causing an incident to escalate into one causing injury to both subjects and officers.
+Added: Our BolaWrap product line includes the BolaWrap 100, which was our first remote restraint product, and the BolaWrap 150, delivered to the market in Q1 of 2022.
+Added: The BolaWrap 150 offers electronic deployment and is more robust, smaller, lighter, and simpler to use.
+Added: 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.
+Added: 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. 
+Added: The 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.
+Added: 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 ignored.
+Added: With 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 both the subject and officer.
+Added: 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.
+Added: BolaWrap's effectiveness in restraining individuals and hindering their ability to flee or fight has been proven.
+Added: 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 the force frenzy that can occur after chasing a fleeing subject.
+Added: Unlike 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.
+Added: BolaWrap does not induce paralyzed falls or recovery time, making the BolaWrap an ideal non-lethal tool for law enforcement officers.
+Added: 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.
We spend significant resources training law enforcement on the safe and effective use of the BolaWrap in conjunction with de-escalation and apprehension techniques.
−Removed: However, like any restraining action, injuries may result from the use of BolaWrap or as a consequence of its use.
+Added: However, like any restraining action, some injuries may result from the use of BolaWrap or because of its use.
Our training includes primary use cases that fall into the three broad categories routinely encountered by law enforcement and security personnel:
3 unchanged sentences
To assist in subduing individuals actively resisting arrest by limiting mobility, possibly making other engagement options less risky to officers and less injurious to individuals.
−Removed: Law enforcement encounters with the mentally ill or those suffering a mental health crisis present a difficult challenge, often generating public controversy and costly consequences.
−Removed: According to the Treatment Advocacy Center:
−Removed: Office of Research & Public Affairs in a 2015 report on The Role of Mental Illness in Fatal Law Enforcement Encounters, one in ten police encounters involve the mentally ill and a minimum of one in four fatal police encounters involve the mentally ill.
−Removed: Reports from dozens of field deployments by law enforcement agencies during 2020 and 2021, on stationary as well as moving targets, have been encouraging and we expect additional use data in 2022.
−Removed: A field deployment is generally considered ‘successful’
−Removed: by law enforcement agencies if compliance is achieved, and no additional force is required after the BolaWrap is exposed or used.
+Added: Law enforcement encounters involving individuals experiencing a behavioral health crisis can be challenging, resulting in public controversy and costly consequences.
+Added: The Treatment Advocacy Center:
+Added: 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:
+Added: The Role of Mental Illness in Fatal Law Enforcement Encounters (2015)).
+Added: A 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:
−Removed: By pointing the BolaWrap’s line dot laser at the suspect in conjunction with verbal commands
−Removed: Via the sound emitted by the BolaWrap upon deployment
−Removed: Through the impact and/or restraint of the Kevlar cord around the suspect
+Added: By pointing the BolaWrap’s seven dot green line dot laser at the suspect in conjunction with verbal commands
+Added: Via the sound emitted by the BolaWrap upon deployment and causing a distraction
+Added: Through the feeling of being wrapped and/or restraint of the Kevlar cord around the suspect’s legs, arms, or torso
When used in conjunction with other less-lethal tools
−Removed: We request that all agencies fill out a Use of Device Report when the BolaWrap is used during an encounter in the field.
−Removed: However, not all field deployments are reported to us by law enforcement agencies, as many consider the deployment of the BolaWrap to be low level that does not constitute a reportable use of force.
−Removed: Some deployments to date have been captured on bodycam and shared with the public.
−Removed: Others were reported by the agency or the media but were not captured on bodycam.
−Removed: As more agencies adopt the BolaWrap onto their duty belts, we believe we will continue to see an increase in the rate of field deployments, which we anticipate will contribute to further adoption of the device by law enforcement worldwide.
−Removed: We announced a new generation BolaWrap 150 device in October 2021 and discontinued production of the legacy product, the BolaWrap 100.
−Removed: The BolaWrap 100 used removable cartridges, and we plan to continue to provide cartridges to customers as long as they are available;
−Removed: however, we have no plans to produce new cartridges.
−Removed: The BolaWrap 150 employs cassettes that are custom to the device and not interchangeable between models.
−Removed: Since the October announcement of the BolaWrap 150, we have been developing a more automated supply chain in the production, quality control, and testing lines necessary to support the volume of production anticipated for the BolaWrap 150.
−Removed: We continue to make product improvements based on internal testing and field experience.
−Removed: We believe the improved, fully electronic BolaWrap 150 offers important benefits, including:
+Added: While 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.
+Added: 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.
+Added: 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.
+Added: 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 purposes.
+Added: Some local jurisdictions have department policies, collective bargaining agreements, and city, county or state laws regarding the distribution of body worn camera video.
+Added: As 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.
+Added: In 2022, following the release of our strategic roadmap in mid Q3, we focused our customer service team on modifying their approach to become a customer success operation.
+Added: As part of this strategic change, our team focuses on reaching out to drive agency wide adoption.
+Added: 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.
+Added: 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.
+Added: In January 2023, we launched our Use of Force Reduction Guarantee whereby we will buy back an agency’s devices when they deploy agency wide and do not see a reduction in Use –of -Force by at least 10%, after meeting certain criteria.
+Added: In late Q1 2022, we delivered the latest generation of our BolaWrap device, the BolaWrap 150.
+Added: Production of the previous model, the BolaWrap 100, ceased in 2021.
+Added: We intend to continue to supply cartridges for the BolaWrap 100 to our customers for the foreseeable future.
+Added: Unlike the BolaWrap 100, the BolaWrap 150 utilizes cassettes that are unique to the device and cannot be interchanged between models.
+Added: We have declared that the BolaWrap 150 will be our primary product and will be supported for 5 to 10 years from the product launch date.
+Added: To 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.
+Added: We believe the BolaWrap 150 offers important benefits, including:
Modern electronic deployment
8 unchanged sentences
Micro-gas generators are micro explosive parts used in a variety of industrial products, including automobile airbags.
−Removed: We are unable to predict the market acceptance of the BolaWrap 150 product or the level of future sales.
−Removed: We believe we can grow orders and shipments during 2022.
−Removed: We plan to extend the product line with additional models and features in the future.
−Removed: However, there can be no assurance of the timing or quantity of orders or sales in future periods.
See “Risk Factors”
included below in this Annual Report for additional information regarding risks and uncertainties associated with our business.
−Removed: During 2019, we partnered with an independent technology company to scope and configure a virtual reality system with training scenarios.
−Removed: We demonstrated the virtual reality system and training scenarios during two large trade shows in October and November 2019.
−Removed: In December 2020 we acquired NSENA Inc.
−Removed: NSENA ”), a developer and provider of a law enforcement training system employing immersive computer graphics virtual reality with proprietary software-enabled content.
−Removed: The NSENA system leveraged high-quality enterprise head-mounted devices (" HMDs ") and a high-GPU gaming personal computer to power proprietary software.
−Removed: We have rebranded the system, software and business as Wrap Reality Virtual Training, and believe our content library containing over 35 training scenarios is one of the largest available targeting law enforcement.
−Removed: Wrap Reality’s scenarios were developed by and for police officers, and cover a wide array of skills and scenarios including de-escalation, conflict resolution, and all levels of use-of-force.
−Removed: Wrap Reality Virtual Training takes advantage of the most advanced virtual reality hardware available.
−Removed: The Wrap Reality system allows up to two participants to enter the simulated training environment simultaneously, and customized weapons controllers enable trainees to engage in strategic decision making along the force continuum.
−Removed: In August 2021, we announced the development of a new expanded Wrap Reality Virtual Training platform powered by, and developed through, a collaboration with Amazon Web Services (" AWS ") using AWS GovCloud (US).
−Removed: The new platform combines our advanced law enforcement simulator with secure cloud services to automatically track training progress and provide the ability to replay recorded training sessions.
−Removed: By embedding AWS storage services, we offer a fully-integrated training and training record management solution targeting agencies of all sizes.
−Removed: We believe these agencies have limited choices to meet the growing public safety training demands.
−Removed: This next generation platform is in beta testing and we expect to formally release the new platform by mid-2022.
−Removed: While we are marketing and selling the Wrap Reality Virtual Training system, we continue to upgrade existing scenarios and develop de-escalation techniques into new scenarios.
−Removed: We also seek to enhance the Wrap Reality experience through continued software and platform innovation.
−Removed: The expanded platform developed with AWS is expected to enhance the scope of our offering to law enforcement customers.
+Added: In 2019, we partnered with an independent technology company to create a virtual reality system with training scenarios.
+Added: We acquired NSENA Inc.
+Added: in December 2020, a provider of law enforcement training employing immersive computer graphics virtual reality with proprietary software-enabled content.
+Added: 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.
+Added: Countless additional scenarios can be made by using the Wrap Reality adapt functionality to pick and choose key components to build a scenario.
+Added: It takes advantage of some of the most advanced virtual reality hardware available and allows up to two participants to enter the simulated training environment simultaneously.
+Added: In August 2021, we announced the development of an expanded Wrap Reality Virtual Training platform with a collaboration with Amazon Web Services (AWS).
+Added: 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.
+Added: 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.
+Added: Additionally, we entered into a Professional Services and Technology Acquisition Agreement with Lumeto and Spatial in November 2022, which is expected to provide the Company with an upgraded cloud virtual reality platform, capabilities, and resources to support the growth of law enforcement and corrections virtual reality training modules and enhanced capabilities.
+Added: We 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.
+Added: By leveraging our existing platform and our investment in cloud software with the Lumeto Acquisition, we now will have the opportunity to develop and offer critical training scenarios at very competitive price points.
+Added: We have the ability to offer both on-premises and full cloud capabilities with multiple hardware options.
+Added: 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.
Selling, Marketing and Training
Our 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.
−Removed: Law enforcement agencies represent our primary target market.
−Removed: In this market, we expect that the decision to purchase BolaWrap product and accessories will normally be made by a group of people including the agency head, his/her training staff, and use of force and weapons experts.
−Removed: The decision sometimes involves political decision-makers, such as city council members and various committees.
−Removed: Although we expect the decision-making process for a remote restraint device will be less complicated than for other less-lethal products such as CEWs, the process may take as little as a few weeks or as long as a year or more partially due to budgeting reasons and other distractions of agencies.
−Removed: For instance, during the summer of 2020, the U.S.
−Removed: had a significant number of protests in many major cities, which took agency time away from proactive planning actions.
−Removed: We utilize demonstrations as a primary sales step with demonstrations scheduled from the over 12,000 law enforcement leads created by our marketing activities since 2018.
−Removed: Demonstrations are generally followed by sales activities or delivery of product for test and evaluation and training with appropriate selected agencies.
−Removed: Some of these deliveries are paid sales and some are issued as an incentive, with the goal and expectation of larger future sales of devices and cartridges/cassettes.
−Removed: We have demonstrated our products to more than 1,000 agencies and are achieving significant brand awareness among law enforcement.
−Removed: We and our distributors seek, when possible, to convert demonstration and training deliveries to sales or after a trial period to have the devices returned for use as further demonstration or training devices.
−Removed: We consider training as an integral element of our sales and marketing approach and believe that departments that have trained instructors to be knowledgeable about our product will be more likely to purchase devices.
−Removed: We provide our product training as a service to agencies;
−Removed: however, training may be fee-based in the future.
−Removed: Initial sales in 2018 and early 2019 were made by our executive and sales employees.
−Removed: In June 2019, we implemented a channel distribution strategy in which we sell our products to existing independent regional police equipment distributors who then sell to local law enforcement agencies.
−Removed: We are focusing our internal sales, sales support and business development resources on building relationships with large agencies and actively supporting distributors.
−Removed: Our sales force is currently comprised of 19 professionals.
−Removed: This team includes sales and business development personnel primarily in the field working directly with agencies, distributors and their customers and persons providing sales support including supporting demonstration and training contractors.
−Removed: In addition to full-time sales, sales support and business development personnel from time to time we utilize part-time consultants with law enforcement or government agency expertise to support our sales and marketing activities.
−Removed: Our 12 domestic distributors have an estimated 120 sales representatives that represent BolaWrap primarily to smaller agencies.
−Removed: We currently have distribution agreements with 12 domestic distributors representing 49 states and one dealer representing Puerto Rico.
−Removed: These nonexclusive and cancelable agreements provide certain territorial rights to distributors but allow us to sell direct to certain agencies under certain terms.
+Added: Our training not only supports our sales, but it also provides revenue due to the extreme value our customers place on our training services.
+Added: We started charging for our training services in Q3 of 2022.
+Added: Our primary target market is law enforcement agencies in the US and globally.
+Added: 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.
+Added: The decision-making process may take several weeks to over a year due to budget constraints and other distractions.
+Added: We use product demonstrations as a primary sales tool and follow up with sales activities.
+Added: Our goal is to convert demonstration and training deliveries into sales and long-term expansion.
+Added: We provide fee-based training services to agencies, as we believe that departments with knowledgeable instructors are more likely to purchase our products.
+Added: In 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.
+Added: 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 teams.
+Added: 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.
+Added: We currently have distribution agreements with a network of distributors representing 50 states and one dealer representing Puerto Rico.
+Added: These agreements provide certain territorial rights to distributors and allow us to sell direct to certain agencies under certain terms.
We have distribution agreements with 49 international distributors covering 54 countries.
−Removed: These agreements are generally exclusive, require minimum performance and allow us to sell direct to customers subject to certain compensation.
+Added: These agreements are generally requiring minimum sales and follow up performance and allow us to sell direct to customers subject if performance is not being met.
We focus significant sales and business development efforts to support our international distributors.
−Removed: While management is focused on sales of Wrap Reality virtual reality systems, we are training our sales, distribution, demonstration, training and other staff and our distributors on our virtual reality training product to build awareness and grow sales.
−Removed: We are also seeking to partner with other organizations to enhance our virtual reality sales, marketing and technology.
−Removed: In 2021 we collaborated with the National Tactical Officers Association (" NTOA ") to assist in creating virtual reality training scenarios responsive to the needs of their 40,000 members from specialties that include patrol, Tactical Emergency Medical Support (" TEMS "), crisis negotiations, canine, corrections, sniper, protective operations, explosives, command, tactical dispatchers, behavioral sciences and others.
−Removed: We work with other experts in law enforcement as part of our goal of making our virtual reality scenarios compliant with industry standards of engagement.
−Removed: Prospective customers learn about Wrap solutions through a variety of ways, including targeted social media, paid advertising, media, press releases, web site searches, sales calls and public relations.
−Removed: We have distributed agency body and dash camera videos demonstrating effective use of BolaWrap in a variety of policing encounters.
−Removed: When a lead is generated through our marketing activities and qualified, we connect them with a sales representative and/or a distributor to discuss their needs and the solutions in which they are interested.
−Removed: We track our marketing and sales activities to provide immediate preview into activities, leads, quotes and pipeline opportunities.
−Removed: We believe we are developing a strong pipeline of opportunities for Wrap solutions.
−Removed: Our marketing staff also engages with local, state and federal agencies and personnel both directly and through professional firms that advocate less-lethal engagements and increased education and training.
−Removed: We work with risk management organizations serving law enforcement to educate on the benefits of BolaWrap remote restraint to reduce incidents and costs of escalation.
−Removed: In December 2021 the Arizona Municipal Risk Retention Pool (AMRRP) Board of Trustees voted funding to assist its 60 rural police agencies to procure BolaWrap devices for active-duty police officers.
−Removed: We are working with other similar entities to increase awareness of the BolaWrap solution.
−Removed: We actively promote our brands and believe the Wrap and BolaWrap tradenames are becoming increasingly known world-wide as the pioneer and leader in remote restraint.
−Removed: We participate in a variety of domestic and international trade shows and conferences, both directly and with our distributors.
−Removed: We expect our marketing efforts will also continue to benefit from significant free media coverage.
−Removed: We intend to increase the use of our trademarks throughout our product distribution chain and believe growing brand awareness will assist in expanding our business.
−Removed: We believe our reputation as a pioneer in the new category of remote restraint, strong training and product support provide us competitive advantages.
−Removed: Demonstration, Training and Support
−Removed: The Company maintains a demonstration and training department as a part of its sales and marketing activities and does not charge for product demonstrations or training.
−Removed: Training is not a condition or requirement of sale as many sales are made through distributors to their end customers.
−Removed: The Company conducts local and regional in-person, webinar and on-line demonstrations and use of force and de-escalation training to support law enforcement agencies with no purchase requirement.
−Removed: Such training may occur before or after initial or subsequent purchase or field deployment of the Company’s products.
−Removed: The Company believes that law enforcement trainers and officers that have seen demonstrations or have been trained about its products are more supportive of their departments purchase and deployment of product.
−Removed: Most law enforcement and corrections agencies will not purchase new use of force devices until a training program is in place to certify officers in their proper use.
−Removed: Generally, they also must adapt any new tools to their use of force policies and clear use with any relevant committees or review boards.
−Removed: We have developed and offer robust training and class materials that certify law enforcement officers and trainers as BolaWrap Instructors in the use and limitations of the BolaWrap solution.
−Removed: Recognizing the need to provide robust training and sales support we launched the Wrap “Train the Trainer”
−Removed: program in October 2018.
−Removed: The program is designed such that our Master BolaWrap Instructors train local BolaWrap Instructors at local agencies who then train line officers in accordance with an agency’s policies.
−Removed: BolaWrap Master Instructors are considered independent contractors and are required to have law enforcement training experience and be effective communicators.
−Removed: In order to be certified as a Master Instructor, candidates must complete a two-day Master Instructor school at our Tempe training facility, observe a Train the Trainer course and then be observed teaching a Train the Trainer Course.
−Removed: We have engaged 81 Master Instructors, residing in 30 states that have completed the two-day course allowing them to conduct Instructor Certification Training.
−Removed: In addition, we have nine Master Instructors who have been designated Senior Master Instructors qualified to assist with teaching and certifying other Master Instructors. Of these Senior Master Instructors, six also comprise our Training Advisory Board.
−Removed: BolaWrap Instructors are generally sworn law enforcement officers, typically department trainers, defensive tactic instructors or SWAT officers.
−Removed: To be certified as a BolaWrap Instructor, individuals must attend a five-hour BolaWrap Instructor certification course, pass a written exam and show proficiency in deploying and using the BolaWrap.
−Removed: We also assist Instructors on lessons learned and best practices for teaching line officers in the use of BolaWrap.
−Removed: The nature and extent of line officer training is at each agency’s discretion.
−Removed: Instructor certification is effective for two years after which it requires renewal.
−Removed: We employ a cloud-based software system, the Wrap Learning Management System, to schedule and organize training events, registration and training records.
−Removed: This software also hosts a Resource Library that distributors, purchasers and other interested parties are highly encouraged to utilize to educate themselves on BolaWrap use.
−Removed: We have assembled a team of five experienced and well-known trainers from different regions across the U.S.
−Removed: that form the Wrap Training Academy Advisory Board.
−Removed: The Wrap Training Academy Advisory Board provides guidance to maintain a high-quality training program for Wrap products.
−Removed: Since launching our ‘Train the Trainer’
−Removed: program in October 2018, we now have at least one individual at over 1,000 U.S.
−Removed: police departments that has received formal training and over 3,000 officers are currently certified BolaWrap instructors qualified and certified to train line officers.
−Removed: We encourage training prior to use of the BolaWrap by individual departments but the nature and extent of training, if any, is at the discretion of each individual agency.
−Removed: We also have two experienced trainers that install, demonstrate and provide training on our Wrap Reality platform and modules.
−Removed: We believe our professional training and sales support team and systems provide both a competitive advantage and a barrier to new competition.
−Removed: The nature of modern policing requires that equipment and services be supported and that line officers have access to training and procedures to properly perform their duties and minimize the policing risks.
−Removed: We believe we have positioned our training and support teams to respond to agencies of all sizes.
−Removed: Our product and training solutions continue to gain worldwide awareness and recognition through media exposure, product demonstrations, and word of mouth as a result of positive responses and increased acceptance of our solutions.
−Removed: We believe we have a strong global brand, technology and product foundation, which we continue to expand to serve new markets and customers for greater business growth.
−Removed: We believe we have strong market opportunities for our product solutions throughout the world in the law enforcement, defense, public safety and security sectors as a result of increasing threats by non-compliant individuals and the demand for less-lethal policing.
−Removed: We believe our training and virtual reality platform are positioned in rapid growth markets worldwide.
−Removed: Our commercialization strategy focuses on the immediate addressable domestic market of approximately 900,000 full-time sworn officers in over 15,300 federal, state and local law enforcement agencies, and the 12.1 million plus police officers in the 100 largest police forces internationally.
−Removed: Our goal is to realize the potential of our entire suite of technology solutions targeting law enforcement and security personnel worldwide.
−Removed: In 2022 we intend to continue operating with financial discipline in order to create value for our stockholders.
−Removed: We intend to continue the pursuit of domestic and international business opportunities with our network of well-established distributors and grow our revenues.
−Removed: We plan to develop improved and new products to our portfolio including products for use by security and related personnel.
−Removed: We also seek business initiatives and opportunities including acquisitions and collaborations that may be complementary to existing product and service offerings through our sales network.
+Added: We 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.
+Added: Additionally, we are actively seeking partnerships with other organizations to further enhance our sales, marketing, and technology efforts.
+Added: We engage with other industry experts to ensure our virtual reality scenarios align with industry standards of engagement. 
+Added: Prospective 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.
+Added: We also distribute body and dash camera videos of successful BolaWrap use in policing encounters to generate leads.
+Added: 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.
+Added: We track our marketing and sales activities to provide immediate insight into activities, leads, quotes, and pipeline opportunities.
+Added: Our 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.
+Added: 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 edge.
+Added: Demonstration, Training and Customer Success
+Added: As part of its sales and marketing activities, the company has a department dedicated to conducting demonstrations and training.
+Added: The company offers in-person, webinar, and online demonstrations, as well as paid use of force and de-escalation training, to law enforcement agencies.
+Added: The training can take place before or after the initial or subsequent purchase or deployment of the company's products.
+Added: The company believes that providing training and demonstrations to law enforcement officers and trainers increases their support for purchasing and deploying the products within their departments.
+Added: Generally, agencies will adapt their use of force policy to take remote restraint and the BolaWrap into a key new area of their policy for non-invasive tools that did not previously exist.
+Added: BolaWrap is typically not a categorical use of force, or if classified as force, is typically at the lowest level on a department policy, below all other less lethal weapons like pepper spray, pepperball, batons, bean bags, Tasers®
+Added: and conducted energy weapons.
+Added: We have developed and offer robust training and class materials that certify law enforcement officers and trainers as BolaWrap Instructors in the use of the BolaWrap solution.
+Added: In order to provide comprehensive training and sales support, we initiated the Wrap "Train the Trainer" program in October 2018.
+Added: 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.
+Added: BolaWrap Instructors are typically sworn law enforcement officers, who are commonly department trainers, defensive tactic instructors, or SWAT officers.
+Added: They undergo a five-hour BolaWrap Instructor certification course, which includes passing a written exam and demonstrating proficiency in deploying and using the BolaWrap.
+Added: We provide support to the instructors to share lessons learned and best practices for teaching line officers in the use of BolaWrap.
+Added: Instructor certification is valid for two years and requires renewal afterward.
+Added: BolaWrap training curriculum is submitted by departments to their Post Officers Standards and Training (POST) for credit for in-service training hours.
+Added: 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.
+Added: An example would be officers doing an in-service training on Driving under the Influence (DUI) arrests being updated on BolaWrap and practice using the BolaWrap during the arrest portion of training on individuals under the influence of alcohol or drugs.
+Added: 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.
+Added: 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.
+Added: In order to schedule and organize training events, registration, and training records, we utilize a cloud-based software system called the Wrap Learning Management System.
+Added: 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. 
+Added: In 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.
+Added: 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.
+Added: This approach not only gives us a competitive edge but also creates a significant barrier to new competition.
+Added: We are confident that our training and support teams are equipped to assist agencies of all sizes.
+Added: In the world of law enforcement, defense, public safety, and security, our product and training solutions are gaining recognition and worldwide awareness.
+Added: 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.
+Added: 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.
+Added: Our training programs and virtual reality platform are also well positioned to grow rapidly in global markets.
+Added: Our commercialization strategy concentrates on the immediate 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.
+Added: We also aim to target the 100 largest police forces internationally, which have over 12 million police officers.
+Added: Our objective is to unlock the full potential of our technology solutions suite, which targets law enforcement and security personnel on a global scale.
+Added: In the coming year of 2023, we plan to maintain financial prudence and deliver value to our shareholders.
+Added: Our focus will remain on expanding our revenues through pursuing business opportunities both domestically and internationally.
+Added: 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.
+Added: We also seek to pursue strategic business initiatives and collaborations, including potential acquisitions, to complement our existing offerings and sales network.
Manufacturing and Suppliers
Manufacturing
−Removed: We believe maintaining scalable assembly capabilities is essential to the performance of our products and the growth of our business.
−Removed: Our assembly processes involve unique systems and materials.
−Removed: We contract with third-party suppliers to produce various parts, components and subassemblies.
−Removed: We established initial startup production in a Las Vegas facility in 2018.
−Removed: In October 2019, we completed a move and started production at our new facility in Tempe, Arizona.
−Removed: This facility now includes our corporate administration, sales, training, engineering, manufacturing and warehousing.
−Removed: In our Tempe facility, we complete the final assembly, test and ship our products.
−Removed: We have refined our internal processes to improve how we design, test, and qualify products.
−Removed: We continue to implement rigorous manufacturing and quality processes to track production and field issues.
−Removed: We implement design and component changes periodically to reduce our product costs and improve product reliability and manufacturability.
−Removed: We minimize inventories and maximize the efficiency of our supply chain by having a number of components and sub-assemblies produced by outside suppliers.
−Removed: In particular, a single supplier is currently the sole manufacturer of the BolaWrap 150 battery assembly and another single supplier is the sole manufacturer of the propulsion component for BolaWrap 150 cassettes.
−Removed: Other parts are sole sourced from other suppliers.
−Removed: We believe we have developed strong relationships with our key suppliers.
−Removed: Our ability to meet customer demand depends, in part, on our ability to obtain timely and adequate delivery of components for our products.
−Removed: Our global supply chain has been subject to component shortages, increased lead times, cost fluctuations, and logistics constraints.
−Removed: We expect these supply chain challenges to continue throughout 2022.
−Removed: Supplier shortages, quality issues and logistic delays affect our production schedules and could in turn have a material adverse effect on our financial condition, results of operation and cash flows.
+Added: We believe that maintaining scalable assembly capabilities is crucial to the performance of our products and the growth of our business.
+Added: Our assembly processes involve unique systems and materials, and we contract with third-party suppliers to produce various parts, components, and subassemblies.
+Added: We established initial startup production in Las Vegas in 2018, and in October 2019, we completed a move and began production at our current facility in Arizona.
+Added: In this facility, we perform manufacturing, final assembly, testing, and shipping of our products.
+Added: 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.
+Added: We periodically implement design and component changes to reduce our product costs and improve product reliability and manufacturability.
+Added: We aim to continually improve our operations to meet the growing demand for our products and better serve our customers.
+Added: We have established strong relationships with our key suppliers, and their timely and reliable delivery is crucial to our ability to meet customer demand.
+Added: 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.
+Added: In late 2022, we have started to ensure we have more final product inventory on hand to meet new business needs.
+Added: While we anticipate supply chain challenges to improve in 2023, we recognize that future supplier shortages and logistics issues could have a material adverse effect on our operations and financial results.
At December 31, 2022, we had backlog of approximately $257 thousand expected to be delivered in the first quarter of 2023.
The amount of backlog at any point in time is dependent upon order timing, scheduled delivery dates to our customers and product lead times.
−Removed: Most orders are shipped shortly after order and backlog is typically associated with larger international orders.
−Removed: Because of our history of shipping shortly after order, at this time we do not believe backlog at any period end is predictive of future order volume or revenues beyond the reported amount.
+Added: Most orders are shipped shortly after order and backlog is typically associated with larger police agency orders.
+Added: 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.
−Removed: We warrant our products to be free from defects in materials and workmanship for a period up to one year from the date of purchase.
−Removed: The warranty will be generally a limited warranty, and in some instances impose certain shipping costs on the customer.
−Removed: Some jurisdictions require two-year or other warranty periods and we seek to comply with local or distributor requirements regarding warranties.
−Removed: We expect in most cases it will be more economical and effective to replace the defective device rather than repair.
−Removed: We target the BolaWrap product as a new solution for law enforcement and not as a replacement for other devices currently in use.
−Removed: However, we do compete with other use of force products for budget dollar allocations.
−Removed: Law enforcement agencies may also determine that we are an alternative to other solutions despite such positioning.
−Removed: Other use of force devices, including conducted electrical weapons (“
−Removed: CEWs ”), pepper spray, batons, and impact weapons may compete with the BolaWrap product indirectly.
−Removed: Many law enforcement and corrections personnel consider such less-lethal weapons to be distinct tools, each best-suited to a particular set of circumstances.
−Removed: Consistent with this tool kit approach, purchasing any given tool does not preclude the purchase of one or several more.
−Removed: In other cases, budgetary considerations and limited space on officers’
−Removed: belts dictate that only a limited number of devices will be purchased and carried.
−Removed: We believe the BolaWrap’s unique remote restraint use, effectiveness, and low possibility of injury will enable it to compete effectively against other alternatives.
−Removed: There are a number of competitors offering virtual reality simulators for law enforcement to compete with Wrap Reality.
−Removed: We also compete against established video-based simulators.
−Removed: There are other virtual reality providers and developers focused on other applications that may in the future elect to develop and compete in the law enforcement training space.
−Removed: Many of our present and potential future competitors have, or may have, substantially greater resources to devote to compete in the law enforcement market and to further technological and new product developments.
−Removed: Also, these competitors or others may introduce products with features and performance competitive to our product.
+Added: Our products come with a warranty that guarantees their quality and performance for up to one year from the date of purchase.
+Added: This warranty is generally limited and may include certain shipping costs for the customer.
+Added: We also offer the option for our customers to purchase additional one-year warranty increments for their products. 
+Added: Our 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.
+Added: 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 circumstance.
+Added: We believe every law enforcement officer in the world who carries handcuffs should carry a BolaWrap at the same time.
+Added: BolaWrap is leveraged just prior to handcuffs, and we are doing everything we can to educate the public and agencies about the important need to adopt this critical non-invasive and safe tool.
+Added: However, we do compete with other use of force products for budget allocations.
+Added: The BolaWrap product may also be perceived as an alternative to other solutions despite our valuable and separate positioning.
+Added: Because the BolaWrap will likely be used so much more often than all of the other tools combined, we believe we stand in a category of our own.
+Added: Indirectly, other use of force devices such as tasers (CEWs), pepper spray, pepperball, batons, and impact weapons may try to compete with the BolaWrap product.
+Added: However, many law enforcement personnel consider these to be distinct tools, each best-suited to a particular set of higher use of force circumstances.
+Added: 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.
+Added: The BolaWrap's unique remote restraint use, effectiveness, and low possibility of injury positions it as an effective competitor against all other alternatives.
+Added: 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.
+Added: In the virtual reality training space, there are numerous competitors offering simulators for law enforcement, including established video-based 2D simulators.
+Added: Furthermore, other virtual reality providers and developers focused on other applications may choose to compete in the law enforcement training market in the future.
+Added: We 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.
+Added: However, we believe that our unique positioning, strong product and technology foundation, and dedicated professional training and sales support team provide a competitive advantage.
+Added: Overall, we are extremely impressed with the depth and capability of our 3D Virtual Reality (VR) Wrap Reality Capability.
+Added: We have 38 fully formed law enforcement scenarios and 25 corrections and societal reentry scenarios in 3D plus the customizability of Wrap Reality Adapt which we believe provides more robust 3D options than the competitive.
+Added: The largest capitalized competitor in space currently offers only three 3D scenarios and is selling subscriptions of more than six million dollars a year.
Government Regulation
−Removed: Globally, we are subject to numerous domestic, federal, state and local laws and regulations and the laws and regulations of global jurisdictions relating to matters regarding shipments, customs, import, export, safe working conditions, manufacturing practices, environmental protection and disposal of hazardous or potentially hazardous substances.
−Removed: In addition, we have to ensure compliance with economic sanctions and/or restrictions on individuals, corporations or countries, and other government regulations affecting trade that may apply to our international cross border business activities.
−Removed: We may incur significant costs to comply with such laws and regulations now or in the future.
−Removed: The BolaWrap 100 and the BolaWrap 150 are each classified as a “firearm”
−Removed: Bureau of Alcohol, Tobacco, Firearms and Explosives (“
−Removed: ATF ”), and are subject to federal firearms-related regulations.
−Removed: We hold two Federal Firearms Manufacturing Licenses that expire in 2022 through 2023.
−Removed: The BolaWrap 150, and the related BolaWrap 150 cassette, are also regulated as exempt special explosive devices by the ATF which requires adherence to explosive manufacturing and handling regulations.
−Removed: We hold one explosives manufacturing license and one explosives import license, both expiring in 2024.
−Removed: ATF regulations are enforced by surveillance and inspection.
−Removed: If the ATF finds a violation, it can institute a wide range of enforcement actions, ranging from public warnings to more severe sanctions such as fines, penalties, suspension or withdrawal of regulatory approvals, product recalls, seizure of products, operating restrictions or total shutdown of production, and criminal prosecution.
−Removed: Many states also have regulations restricting the sale and use of certain firearms and explosives and may determine their own classification and restrictions irrespective of ATF regulation.
−Removed: In most cases, the law enforcement and corrections market are subject to different ATF and state regulations or exemptions than the private citizen market, and we do not expect additional state restrictions or approvals for sales to law enforcement.
−Removed: Where different regulations exist, we expect that the regulations affecting the private citizen market may also apply to the private security markets, except as the applicable regulations otherwise specifically provide.
−Removed: Our BolaWrap cartridges, cassettes, and lithium-ion battery packs are generally considered dangerous goods for shipment regulation.
−Removed: The shipping of dangerous goods, whether via air or ground, falls under the jurisdiction of many state, federal and international agencies.
−Removed: The quality of the packaging that protects a product is critical in determining whether it will arrive at its destination in a satisfactory condition.
−Removed: Many of the regulations for transporting dangerous goods in the United States are determined by international rules formulated under the auspices of the United Nations. 
−Removed: The International Civic Aviation Organization (" ICAO ") is the United Nations organization that develops regulations (“
−Removed: Technical Instructions ”) for the safe transport of dangerous goods by air.
−Removed: If shipment is by air, compliance with the rules established by the International Air Transport Association (" IATA ") is required.
−Removed: The IATA is a trade association made up of airlines and air cargo couriers that publishes annual editions of the IATA Dangerous Goods Regulations.
−Removed: These regulations interpret and add to the ICAO Technical Instructions to reflect industry practices.
−Removed: When we ship dangerous goods, we follow strict and stringent guidelines.
−Removed: We are subject to a variety of government laws and regulations that apply to companies engaged in international operations, including, among others, the Foreign Corrupt Practices Act, U.S.
−Removed: Department of Commerce export controls, local government regulations and procurement policies and practices (including regulations relating to import-export control, investments, exchange controls and repatriation of earnings).
−Removed: The BolaWrap 100 and the BolaWrap 150 devices are also considered a crime control product by the U.S.
−Removed: Accordingly, the export of our devices is regulated under export administration regulations.
−Removed: As a result, we must obtain export licenses from the Department of Commerce for all shipments outside the U.S.
−Removed: We do not expect the need to obtain these licenses will cause a material delay in our foreign shipments.
−Removed: Export regulations also prohibit the further shipment of our products from foreign markets in which we hold a valid export license to markets in which we do not hold an export license for our products.
−Removed: We are seeking export classification of our virtual reality training product but do not currently believe export licenses will be required.
−Removed: International destination regulations, which may affect our products and services, and sale thereof, are numerous and often unclear.
−Removed: We work with our international distributors, agents and advisors who are familiar with the applicable import regulations in each of our targeted international markets.
−Removed: Our products are produced to comply with standard product safety requirements for sale in the U.S.
−Removed: and similar requirements for sale in international markets.
−Removed: We expect to meet the electrical and other regulatory requirements for any electronic systems or components we sell throughout the world.
−Removed: As part of our manufacturing operations, we are subject to various federal, state, local and non-U.S.
−Removed: laws and regulations relating to environmental protection, including the discharge, treatment, storage, disposal and remediation of hazardous substances and wastes.
−Removed: We continually assess our compliance status and management of environmental matters to ensure our operations are in substantial compliance with all applicable environmental laws and regulations.
−Removed: Our Wrap Reality training software services offer agencies the option for us to store certain training records and related information.
−Removed: We are committed to complying with, and helping our customers comply with, data protection laws globally.
−Removed: We monitor guidance from industry and regulatory bodies, meet with our supplier partners and update our product features and contractual commitments when necessary to meet new or evolving privacy legal requirements.
−Removed: We maintain a privacy policy that describes how we collect, uses and disclose information, and what choices organizations and users have.
+Added: As 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.
+Added: Compliance with these laws and regulations may entail significant costs, and failure to comply may result in penalties or other enforcement actions.
+Added: Our BolaWrap products are classified as firearms and AOWs by the ATF, and we hold the necessary licenses to manufacture and deal in such firearms.
+Added: We believe these devices have been classified as AOW due to the lack of updates to outdated statutes and implementing firearms regulations.
+Added: 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.
+Added: We are also subject to state and international regulations, which may vary.
+Added: We comply with shipping regulations for dangerous goods, and our products comply with standard safety requirements in the US and international markets.
+Added: We follow data protection laws and have a privacy policy in place.
+Added: We work with distributors and advisors familiar with applicable import regulations in our international markets.
Intellectual Property Rights and Proprietary Information
−Removed: We intend to vigorously protect our intellectual property assets including issued patents, pending patents, trademarks, copyrights, trade craft, contractual obligations and trade secrets such as know-how.
−Removed: Our policy is to enter into confidentiality and nondisclosure agreements with key employees and consultants or third party to whom any of our proprietary information is disclosed.
−Removed: These agreements prohibit the disclosure of confidential information to others, both during and subsequent to employment or the duration of the working relationship.
−Removed: These agreements may not prevent disclosure of confidential information or provide adequate remedies for any breach.
+Added: 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.
+Added: We enter into confidentiality and nondisclosure agreements with employees, consultants, and third parties to whom we disclose proprietary information.
+Added: These agreements prohibit disclosure of confidential information both during and after the duration of the working relationship.
+Added: 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.
−Removed: In addition to such factors such as innovation, technological expertise, and experienced personnel, we believe strong product offerings that are continually upgraded and enhanced will keep us competitive, and we seek patent and other intellectual property protection on important technological improvements that we make.
−Removed: Prior to the filing and granting of patents, our policy is to disclose key features to patent counsel and maintain these features as trade secrets prior to product introduction.
−Removed: Patent applications may not result in issued patents covering all important claims and could be denied in their entirety.
−Removed: We currently have thirteen issued U.S.
−Removed: patents related to the BolaWrap technology and fifteen additional U.S.
−Removed: patents pending.
−Removed: In September 2018, we commenced filing our first foreign patent applications targeting the European Union (38 countries) and 17 other countries, of which six have issued to date.
−Removed: During 2021 we filed additional foreign patent applications and we have reserved rights to file additional foreign patents.
+Added: 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.
+Added: Therefore, we seek patent and other intellectual property protection on important technological improvements that we make.
+Added: Before filing for patents, we disclose key features to patent counsel and maintain these features as trade secrets prior to product introduction.
+Added: 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.
+Added: We currently have nineteen issued US patents related to the BolaWrap technology and eight additional US patents pending.
+Added: In September 2018, we commenced filing our foreign patent applications targeting the European Union (38 countries) and seventeen other countries, of which thirty-four have been issued to date.
+Added: To date we have a total of 53 issued domestic and international patents for our small global company.
+Added: During 2022 we filed thirty-three patent applications, two of which were US filings.
+Added: We feel the significant investment in patent protection in the US and abroad creates a significant amount of IP and 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.
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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.
−Removed: The law enforcement product and services industry is characterized by frequent litigation regarding patent and other intellectual property rights.
+Added: The law enforcement product and services industries are characterized by frequent litigation regarding patent and other intellectual property rights.
Others, including academic institutions and competitors, hold numerous patents in less lethal and related technologies.
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Our research and development initiatives are led by our internal personnel and make use of specialized consultants when necessary.
−Removed: These initiatives include basic research, mechanical engineering design and testing.
−Removed: Future development projects will focus on new versions of the BolaWrap technology and new public safety technologies.
+Added: These initiatives include basic research, mechanical and electrical engineering design and testing.
+Added: 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.
For the fiscal years ended December 31, 2022, and 2021, we spent approximately $5.1 million and $6.2 million, respectively, on company-sponsored research and development.
−Removed: Future levels of research and development expenditures will vary depending on the timing of further new product development and the availability of funds to carry on additional research and development on currently owned technologies or in other areas.
−Removed: During 2022 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 simulator and related content.
+Added: This equates to 63% of revenue in 2022 and 80% of revenue in 2021.
+Added: 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.
+Added: During 2023 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.
+Added: 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.
Related Party License and Royalties
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Syzygy ”), a private technology invention, consulting and licensing company owned and controlled by Elwood G.
−Removed: Norris, a former officer and current stockholder of the Company, and James A.
−Removed: Barnes, an officer and stockholder of the Company.
+Added: Norris, a founder and former officer and current stockholder of the Company, and James A.
+Added: 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.
The 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.
−Removed: All 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 assigned to the Company, subject to the royalty obligation.
−Removed: As a part of our acquisition of NSENA in December 2020, we agreed to pay additional earn-out consideration equal to 10% of net revenues (or a lesser amount equal to 50% of direct profit) from specific identified prospects that become revenue customers before September 30, 2021, but only on amounts collected between consummation of the acquisition and June 30, 2022.
−Removed: No royalties were earned or are payable under the agreement.
−Removed: We do not expect to experience any significant seasonality trends.
−Removed: However, seasonality trends may occur in the future.
+Added: All 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.
+Added: As of December 31, 2022 $720 thousand have been paid out under this royalty obligation leaving a maximum of $280 thousand to be paid out in the future.
+Added: We do find that local and international law enforcement does have seasonality in how they purchase and expend funds.
+Added: Many local law enforcement agencies in the US are on a July 1 to June 30th calendar year resulting in increased spending in Q3 and Q4 of the fiscal year.
+Added: The US federal government is on an October 1 to September 30 th budget year resulting in use or loose spending that often occurs in Q3 of the fiscal year.
+Added: Some domestic and international budgets are on a calendar fiscal year resulting in Q4 typically being the largest buying quarter of the year.
Financial Information about Customer Concentration and Geographic Areas
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Executive Officers
+Added: The Company’s executive officers serve at the discretion of the board of directors.
The current executive officers of Wrap Technologies, Inc.
and their ages and business experience are set forth below.
−Removed: LW Varner, Jr., age 71, joined the Company as Interim Chief Executive Officer in January 2022.
−Removed: Varner will serve as Interim Chief Executive Officer under the terms of a Consulting Agreement dated January 24, 2022, by and between the Company and LWV Consulting, LLC.
−Removed: Varner has significant experience as a corporate executive and director in transition and turnaround situations.
−Removed: From June 2020 through November 2021, Mr.
−Removed: Varner was the Chief Executive Officer and a director of Select Interior Concepts, a publicly traded company focused on the building product space.
−Removed: Prior to that, from July 2012 to May 2018, he was Chief Executive Officer of United Subcontractors, led a transformation of the business through organic growth and strategic transactions that resulted in USI achieving double digit EBITDA margins and an eventual sale, creating significant value for shareholders.
−Removed: From 2004 to 2012, Mr.
−Removed: Varner served as the President and Chief Executive Officer of Aquilex Corporation, a leading provider of specialty services to the energy sector.
−Removed: Under his leadership, the company grew revenues by fivefold and achieved record earnings.
−Removed: Prior to joining in 2004, Mr.
−Removed: Varner served as President for several global businesses in various industries orchestrating their growth in new markets through expansion of service and product offerings.
−Removed: He is a graduate of The Citadel in Charleston, South Carolina, and has served on various philanthropic, industry and community boards.
−Removed: He has also served as a director of Bartlett Holdings, Aquilex Inc., USI and The Identity Group, and currently serves on the Board of Directors of Acousti Engineering, a portfolio company of Ardian, a global private equity firm.
+Added: TJ Kennedy, age 51, was appointed as a director of the Company in April 2021, and Chief Executive Officer of the Company in April 2022.
+Added: Prior to his appointment as the Company’s Chief Executive Officer, Mr.
+Added: Kennedy served as the Chief Executive Officer, president, and member of the board of directors of Qumu, Inc.
+Added: QUMU) (“
+Added: Qumu ”) from July 2020 to April 2022.
+Added: Qumu was acquired in 2023 by Enghouse Systems.
+Added: From January 2019 to July 2020, Mr.
+Added: Kennedy served as the Chief Executive Officer and member of the board of directors of Allerio, Inc., and a director of the Public Safety Network from January 2018 to July 2020.
+Added: From July 2013 to January 2018, Mr.
+Added: Kennedy served as the President/Deputy Executive Director of FirstNet – the First Responder Network Authority and independent authority of the US federal government.
+Added: FirstNet was the federal authority created by the US Congress to build out the first nationwide public safety broadband network for first responders in the world.
+Added: Kennedy negotiated the public private partnership that was a result of the $100B IDIQ contract with the US federal government.
+Added: Kennedy holds a Bachelor of Science in Health Promotion and Education from the University of Utah, and a Master of Business Administration from Johns Hopkins University.
+Added: Kevin Mullins , age 53, began serving as the Company’s President on April 18, 2022.
+Added: Prior to being appointed as the Company’s President, Mr.
+Added: Mullins served as the President and Chief Executive Officer of Intrensic, LLC since 2015, which provides digital evidence and video management software solutions for law enforcement agencies.
+Added: Mullins has also served on the board of directors of SaferMobility, LLC since 2013, a provider of a campus security solution that delivers personal safety through an easy-to-use smartphone application that connects directly to your security or law enforcement teams.
+Added: Mullins received a Bachelor of Arts in Business Administration from Virginia’s College at Wise, Virginia, and a Master in Business Administration from the University of Virginia in Charlottesville, Virginia.
+Added: Chris DeAlmeida , age 45, was appointed as Chief Financial Officer of the Company in July 2022.
+Added: DeAlmeida is an accomplished senior financial executive, with experience in financial management and analysis, financial reporting, and mergers and acquisitions activity.
+Added: Prior to his appointment, Mr.
+Added: DeAlmeida was Chief Financial Officer of Encore Dredging Partners since January 2020, and acted as a consulting partner at BCH Group since 2018.
+Added: Additional roles include Executive Vice President, Chief Financial Officer, Chief Accounting Officer and Treasurer at Orion Group Holdings, Inc.
+Added: ORN) from 2012 to 2018, Vice President Accounting and Finance at Orion Group Holdings, Inc.
+Added: from 2007 to 2012 and Investor Relations at Continental Airlines, Inc.
+Added: UAL) from 2005 to 2007.
+Added: DeAlmeida holds a Bachelor of Science in Finance from the University of Houston at Clear Lake.
Glenn Hickman, age 34, was appointed as the Company’s Chief Operating Officer (“
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Hickman was responsible for establishing Axon’s first manufacturing line in Shenzhen, China, and an optics engineering team in Finland.
−Removed: Hickman graduated with distinction from Stanford University, receiving his Bachelor and Master of Science in Mechanical Engineering, and his MBA with honors from Northwestern University’s Kellogg School of Management with a double major in Strategy and Marketing.
−Removed: Barnes age 67, cofounded the Company with Messrs.
−Removed: Elwood Norris and Scot Cohen in March 2016, and currently serves as Chief Financial Officer, Secretary and Treasurer.
−Removed: He served as Manager until the Company’s incorporation in March 2017 when he was appointed President and Chief Financial Officer.
−Removed: He served as a member of the Company’s Board of Directors from March 2017 to November 2018.
−Removed: In January 2018 he was appointed to the additional positions of Secretary and Treasurer and resigned as President.
−Removed: He has served as the President of Sunrise Capital, Inc., a private venture capital and financial and regulatory consulting firm, since 1984.
−Removed: He was Chief Financial Officer of Parametric Sound Corporation (now Turtle Beach Corporation) from 2010 to February 2015, and from February 2015 to February 2017 served as Vice President Administration at Turtle Beach Corporation.
−Removed: Since 1999, he has been Manager of Syzygy Licensing LLC, a private technology invention and licensing company he owns with Mr.
−Removed: Elwood Norris.
−Removed: He previously practiced as a certified public accountant and management consultant with Ernst & Ernst, Touche Ross & Co., and as a principal in J.
−Removed: McDonald & Co.
−Removed: Ltd., Phoenix, Arizona.
−Removed: He graduated from the University of Nebraska with a Bachelor of Arts Degree in Business Administration in 1976 and is a certified public accountant (status:
−Removed: Pending his planned retirement, Mr.
−Removed: Barnes will continue to serve as Chief Financial Officer, Treasurer and Secretary of the Company until the earlier of his retirement or the naming of his replacement by the Company.
−Removed: In this regard, the Board of Directors has commenced a formal search to identify a highly qualified candidate to serve in the capacity of Chief Financial Officer.
−Removed: Executive officers serve at the discretion of the board of directors.
−Removed: We employ 68 full-time employees with 47 in the United States and three located in the United Kingdom.
−Removed: In addition to our three executive officers, we had 19 persons engaged in sales, marketing, sales support and training, 21 in production, 15 in research and development and 10 in administration.
+Added: Hickman graduated with distinction from Stanford University, receiving his Bachelor and Master of Science in Mechanical Engineering, and his MBA with honors from Northwestern University’s Kellogg School of Management with a double major in Strategy and Marketing. 
+Added: We employ 69 full-time employees with 66 in the US, two located in the United Kingdom and one located in Australia.
+Added: In addition to our four executive officers, we had 16 persons engaged in sales, marketing, sales support and training, 28 in production, 13 in research and development and 8 in administration.
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.
−Removed: We are dedicated to preserving operational excellence and remaining an employer of choice.
−Removed: We provide and maintain a work environment that is designed to attract, develop and retain top talent through offering our employees an engaging work experience that contributes to their career development.
−Removed: We recognize that our success is based on the collective talents and dedication of those we employ, and we are highly invested in their success. 
+Added: In 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.
+Added: Our employees are offered an engaging work experience that contributes to their professional growth and career advancement.
+Added: 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.
Available Information
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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.