Wrap Technologies Receives Nasdaq Notification of Non-Compliance with Listing Rule 5250(c)(1)

Rhea-AI Summary

Wrap Technologies (NASDAQ: WRAP) has received a notification from Nasdaq for non-compliance with Listing Rule 5250(c)(1) due to the late filing of its Q2 2024 Form 10-Q. This follows previous notices for late filings of the 2023 Annual Report and Q1 2024 Form 10-Q. Nasdaq has granted an exception until August 30, 2024, to file the delinquent reports. The company must submit an updated compliance plan by September 3, 2024. Nasdaq may extend the compliance period to October 14, 2024. While there's no immediate effect on WRAP's listing, failure to comply could result in delisting from Nasdaq.

Positive

• None.

Negative

• Received Nasdaq non-compliance notification for late Q2 2024 Form 10-Q filing
• Previously received non-compliance notices for late 2023 Annual Report and Q1 2024 Form 10-Q filings
• Risk of potential delisting from Nasdaq if compliance is not regained
• Multiple financial reporting delays indicating potential internal control issues

Financial Analyst

This notification from Nasdaq is a serious concern for Wrap Technologies. The company's failure to file its Q2 2024 10-Q, following similar delays with its 2023 10-K and Q1 2024 10-Q, indicates potential internal control issues or financial reporting complexities. While Nasdaq has granted an extension until August 30, 2024, for previous filings, the company now needs to update its compliance plan by September 3, 2024. The maximum extension possible is until October 14, 2024. Persistent non-compliance could lead to delisting, which would significantly impact investor confidence and the company's ability to raise capital. This situation suggests underlying operational or financial challenges that investors should carefully monitor.

Legal Expert

The repeated non-compliance with Nasdaq's Listing Rule 5250(c)(1) raises regulatory red flags. Wrap Technologies is now facing a triple filing delinquency, which could attract SEC scrutiny. The company's inability to file timely reports may indicate material weaknesses in financial reporting processes or potential undisclosed issues. While Nasdaq has shown leniency by granting extensions, the accumulation of delinquencies increases the risk of eventual delisting if not resolved promptly. Investors should be aware that this situation could lead to class action lawsuits if any undisclosed material information comes to light once the reports are filed.

TEMPE, Ariz., Aug. 21, 2024 (GLOBE NEWSWIRE) -- Wrap Technologies, Inc. (Nasdaq: WRAP) (“Wrap” or the “Company”), the makers of BolaWrap and the innovative public safety solutions platform, today reports that it has received a letter (the “Notice”) from the Listing Qualifications Department of the Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that it is not in compliance with the requirements of Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”) as a result of not having timely filed its Quarterly Report on Form 10-Q for the six months ended June 30, 2024 (the “Q2 Form 10-Q”), with the Securities and Exchange Commission (“SEC”).

As previously disclosed, on April 18, 2024, the Company received a notice from Nasdaq notifying the Company that as it has not yet filed its Annual Report on Form 10-K (the “Form 10-K”) for the year ended December 31, 2023, the Company is not in compliance with the Listing Rule. Additionally, as previously disclosed, on May 17, 2024, the Company received a notice from Nasdaq notifying the Company that as it has not yet filed its Quarterly Report on Form 10-Q (the “Q1 Form 10-Q”) for the three months ended March 31, 2024, that the Company is not in compliance with the Listing Rule.

The Company previously submitted a plan to Nasdaq to regain compliance with respect to the delinquent Form 10-K and Q1 Form 10-Q (the “Plan”), and Nasdaq granted an exception until August 30, 2024, to file the delinquent Form 10-K and Q1 Form 10-Q. Pursuant to the Notice, the Company is required to submit an update to the Plan to Nasdaq no later than September 3, 2024, to regain compliance with respect to the filing requirements. Nasdaq may grant the Company an additional exception of up to a maximum of 180 calendar days from the filing due date of the Form 10-K to file the Form 10-K, Q1 Form 10-Q and Q2 Form 10-Q, or until October 14, 2024, to regain compliance.

The Notice has no immediate effect on the listing of the Company’s common stock on the Nasdaq. However, if the Company fails to timely regain compliance with the Listing Rule, the Company’s common stock will be subject to delisting from Nasdaq.

About Wrap

Wrap Technologies, Inc. (Nasdaq: WRAP) is a leading global provider of advanced public safety solutions, integrating ultramodern technology, cutting-edge tools, and comprehensive services to address the complex, modern day challenges facing public safety organizations around the world. Guided by a no-harm principle, Wrap is dedicated to developing groundbreaking solutions that empower public safety agencies to safeguard the communities they serve in a manner that fosters stronger relationships. Driving safer outcomes, empowering public safety and communities to move forward together.

Wrap's BolaWrap® solution encompasses an innovative and patented hand-held remote restraint device, strategically engineered with Wrap’s no-harm guiding principle to proactively deter escalation by deploying a Kevlar® tether that safely restrains individuals from a distance. Combined with BolaWrap® training, certified by the esteemed International Association of Directors of Law Enforcement Standards and Training (IADLEST), Wrap enables officers from over 900 agencies across the US and 60 countries around the world, with the expertise to effectively use BolaWrap® as an early intervention measure, mitigating potential risks and injuries, averting tragic outcomes. Saving lives with each wrap.

Wrap Reality™, the Company’s advanced virtual reality training system, is a fully immersive training simulator and comprehensive public safety training platform equips first responders with the discipline and practice to prevent escalation, de-escalate conflicts, and apply appropriate tactical use-of-force measures to better perform in the field. By offering a growing range of real-life scenarios, Wrap Reality™ addresses the dynamic nature of modern law enforcement situations for positive public safety outcomes. Building safer communities one decision at a time.

Wrap’s Intrensic solution is a comprehensive, secure and efficient body worn camera and evidence collection and management solution designed with innovative technology to quickly capture, safely handle, securely store, and seamlessly track evidence, all while maintaining full transparency throughout the process. With meticulous consolidation and professional management of evidence, confidence in law enforcement and the justice system soars, fostering trust and reliability in court outcomes. Intrensic’s efficient system streamlines the entire process seamlessly, empowering all public safety providers to focus on what matters. Expediting justice with integrity.

Connect with Wrap:
Wrap on Facebook
Wrap on Twitter
Wrap on LinkedIn

Trademark Information 

Wrap, the Wrap logo, BolaWrap®, Wrap Reality™ and Wrap Training Academy are trademarks of Wrap Technologies, Inc., some of which are registered in the U.S. and abroad. All other trade names used herein are either trademarks or registered trademarks of the respective holders.

Cautionary Note on Forward-Looking Statements - Safe Harbor Statement

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “anticipate,” “should”, “believe”, “target”, “project”, “goals”, “estimate”, “potential”, “predict”, “may”, “will”, “could”, “intend”, and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Moreover, forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control. The Company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the Company’s ability to retain its listing on the Nasdaq Capital Market; the Company’s ability to successful implement training programs for the use of its products; the Company’s ability to manufacture and produce product for its customers; the Company’s ability to develop sales for its products; the acceptance of existing and future products; the availability of funding to continue to finance operations; the complexity, expense and time associated with sales to law enforcement and government entities; the lengthy evaluation and sales cycle for the Company’s product solution; product defects; litigation risks from alleged product-related injuries; risks of government regulations; the business impact of health crises or outbreaks of disease, such as epidemics or pandemics; the impact resulting from geopolitical conflicts and any resulting sanctions; the ability to obtain export licenses for counties outside of the United States; the ability to obtain patents and defend IP against competitors; the impact of competitive products and solutions; and the Company’s ability to maintain and enhance its brand, as well as other risk factors mentioned in the Company’s most recent annual report on Form 10-K, quarterly report on Form 10-Q, and other SEC filings. These forward-looking statements are made as of the date of this press release and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.

Wrap’s headquarters are in Tempe, Arizona.

For more information, please visit wrap.com.

Investor Relations Contact:

800.583.2652
ir@wrap.com

Media Relations Contact:

Stephen Estes
stephen@outlierpartners.com

FAQ

Why did Wrap Technologies (WRAP) receive a Nasdaq non-compliance notification?

Wrap Technologies (WRAP) received a Nasdaq non-compliance notification for failing to timely file its Q2 2024 Form 10-Q, violating Listing Rule 5250(c)(1).

What is the deadline for Wrap Technologies (WRAP) to submit an updated compliance plan to Nasdaq?

Wrap Technologies (WRAP) must submit an updated compliance plan to Nasdaq by September 3, 2024.

What is the maximum extension Nasdaq may grant Wrap Technologies (WRAP) to regain compliance?

Nasdaq may grant Wrap Technologies (WRAP) an extension until October 14, 2024, to file the delinquent reports and regain compliance.

What are the potential consequences for Wrap Technologies (WRAP) if it fails to regain compliance with Nasdaq listing rules?

If Wrap Technologies (WRAP) fails to regain compliance with Nasdaq listing rules, its common stock may be subject to delisting from the Nasdaq stock exchange.