Good day, and thank you for standing by. Welcome to Wrap Technologies, Inc. full year and fourth quarter 2025 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. Webcast viewers can type in questions at any time via the webcast Q&A function. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Lou Springer. Please go ahead. Thank you. Good afternoon, and welcome to Wrap Technologies' fourth quarter and fiscal year 2025 earnings conference call. I'm Lou Springer, Vice President of Finance. Joining me today is Scot Cohen, Chief Executive Officer, and Jared Novick, President and Chief Operating Officer. We appreciate your time and continued interest in Wrap. Before we begin, I wanna remind you that certain statements and assumptions in this conference call contain or are based upon forward-looking information and are being made pursuant to the safe harbor provisions of the federal securities regulations. Such forward-looking statements are subject to numerous assumptions, uncertainties, and known or unknown risks, which could cause actual results to differ materially from those anticipated. These factors are more fully discussed in the company's filings with the Securities and Exchange Commission. The forward-looking statements included in this conference call are only made as of the date of this call, and the company is not obligated to publicly update or revise them. Statements made during this call do not constitute an offer to sell or a solicitation of any offer to buy any securities. Securities will be offered only by means of a registration statement and prospectus, which can be found at sec.gov. Unless otherwise stated, all reported results discussed in this call will compare the fourth quarter and full year ended December 31st, 2025, with the fourth quarter and full year ended December 31st, 2024. The earnings release will be available on the Financial Information section of our website at ir.wrap.com. In addition, a replay of this earnings call will be posted to our website after the call. I will now hand it over to Scot. Thanks, Lou. Good afternoon, and thank you for joining us. Nearly ten years ago, this company began with a bold idea, to create a non-lethal device that could change the way law enforcement engages in critical moments. That idea became the BolaWrap, and it drew attention from law enforcement agencies and communities around the world. Our expectations were high, and rightfully so. There was real hope that a new force option could make a meaningful difference. Like many companies introducing innovation into a traditional industry, our journey has not been linear. We invested strategically, experienced leadership changes, and faced realities of operating in a market that does not easily embrace change. Ultimately, we made the decision to slow it down, refocus, and truly understand who we are and what we're here to deliver. Today, I'm proud to say that we have that clarity. We are not solely a device company. We are a solutions company, and the outcomes that we have delivered when our solution has been properly deployed so far has been measurable and meaningful. There have been no serious injuries, no fatalities, and no resulting litigation. That realization led to an even more important discovery. Technology alone is not enough. Our experience shows that the best outcomes occur when the technology, policy, and human factors are fully integrated through training. When these elements come together, performance improves dramatically. Historically, our ability to scale that training was limited. That constraint has now been addressed. We have digitized and effectively productized our training platform. WrapTactics allows us to deliver high-quality training at scale with strong margins. More importantly, early adopters are already reporting significant improvements in real-world outcomes. What we have built is the first known integrated multilayered non-lethal response system, one designed to enable officers to safely close the distance and resolve situations without relying on traditional force options. Our customers have indicated they are no longer looking for just tools. They are looking for solutions. They want outcomes. They want to safely take individuals into custody without injury, without escalation, and without litigation. I wanna be clear about this. We are not positioning ourselves in opposition to lethal or less than lethal tools. Those tools have their place in law enforcement. They have their place on the force continuum. What has been missing and what is increasingly sought after is a fully integrated non-lethal solution that is properly trained, supported, and deployed. We believe we are well-positioned to lead this category. We believe we have the only recognized non-lethal device of its kind in the marketplace today. When combined with our scalable training platform, we offer a complete system created for safer outcomes. The opportunity is much larger than when we thought when we started. This system can be applied not only across the 18,000 agencies in this country or the 200,000 federal agents, but potentially schools, hospitals, correctional facilities, international markets, and security guard markets. Our products extend beyond the officer's belt to integrating with drones and robotic platforms. In many ways, we're relaunching this company. We are no longer solely selling devices. We are delivering a complete non-lethal response. That shift has opened substantial new market opportunities, and we are already beginning to see that impact. I'm now gonna turn it over to Lou, who's gonna walk through the financial results, and then you're gonna hear from Jared to cover our operational progress and growth initiatives. I'll come back to discuss priorities for 2026. Lou, back to you. The financial results in 2025 suggest that our strategy is translating into operational progress. Full year gross revenue grew 15% to $5.2 million, driven by strong second half momentum. Fourth quarter gross revenue increased 62% to $1.4 million, with product sales more than doubling versus the prior year quarter on increased domestic and international demand for BolaWrap. Technology-enabled services revenue reached $1.7 million for the full year, up 85% from $0.9 million in 2024. This likely reflects the growing contribution from training, managed services and software subscriptions. Gross margin expanded from 55% - 58%, suggesting favorable product mix and disciplined cost management. Total operating expenses decreased 10% even as we launched new products and entered new markets. Net loss from operations improved 13% year over year. Net loss was $10.3 million compared to $5.9 million in 2024. The year-over-year change was driven by a $6.4 million reduction in non-cash income from warrant fair value adjustments, as well as a one-time non-cash impairment expense. During the year, we made deliberate decisions about our services portfolio. We retained and invested in the technology-enabled offerings where customer demand is strongest: policy governance, training, virtual reality, and digital evidence management, and exited non-core advisory services. We believe the result is a leaner, more focused business that aligns with our non-lethal response framework. I'll now hand it over to Jared to cover our operational highlights and strategic initiatives. Thanks, Lou. The data behind our non-lethal response framework suggests a compelling story about what happens when agencies are properly supported. In 2025, 78% of agencies that reported a BolaWrap field use had either completed instructors recertification or had embedded master instructor at the agency. Those recertified agencies demonstrated a significantly higher field use success rate. We define a successful field use as an encounter where BolaWrap was deployed and the situation was resolved without escalation to higher level use of force. That data comes from a combination of agency-reported information through our training teams and our internal tracking systems. We track these metrics because they tell us whether our training programs are actually driving the outcomes we're building this business around. This data strongly suggests to us that the ongoing training directly drives field performance, which is the foundation of our non-lethal response framework. The data also suggests our existing customers are demonstrating sustained commitment to their programs. Instructors' recertifications accounted for nearly half of all departments we trained in 2025. Most agencies have not been walking away from their BolaWrap programs, rather they are recommitting to the program. Such retention and reinvestment is what gives us the confidence in the durability of this business. When we look at our agency pipeline, the acceleration is clear. The majority of new agencies that came on board in 2025 did so in the second half of the year. More than 70% of first-time agency orders closed in the second half of the year, measured by the number of initial purchase orders placed by law enforcement agency that had not previously purchased any Wrap product, with Q4 being particularly strong. We track this metric because we believe the rate of new agency acquisition is an important indicator of market penetration and the effectiveness of our market strategy. Those aren't the same kinds of deals we were doing 12 months ago. As we move toward a full fleet-wide deployment, our average deal size increased nearly six-fold from the first half to the fourth quarter, calculated by dividing the total dollar value of all closed won contracts by the total number of individual deals closed within the respective periods. We measure deal size because we believe it reflects the shift of our business from single unit evaluations to agency-wide program adoptions, and is a useful indicator for investors of the trajectory of a revenue per customer relationship. The pipeline suggests to us that agencies are increasingly choosing the complete program over standalone device purchases. That's hardware, training, support, in many cases, evidence management. The trajectory of both deal volume and the deal size is what underpins our confidence in the growth ahead. When it comes to customer traction and field performance, we have over 10,000 active BolaWrap units deployed across domestic agencies today. More than 76% of those are on our current generation BolaWrap 150, meaning the vast majority of our installed base is on the latest hardware. We're also seeing consumable reorder activity for many agencies throughout the year, which we view as a positive signal that devices are being actively used in training and in the field. We track both of these because they tell us our customers are current, they're engaged, and they're actively deploying, which is exactly the foundation we believe is needed for a successful program. We have also restarted domestic manufacturing operations in our Norton, Virginia facility, bringing production in-house with full oversight of quality standards from assembly through final inspection. This gives us control over the products our officers rely on and the capacity to scale as demand grows. I'd like to talk a minute about our drone-related technologies. The Counter-UAS market represents a particularly compelling growth factor. Our collaboration with Vector demonstrated an air-to-air drone interdiction using mechanical entanglement, adapting our patented BolaWrap technology for aerial applications. We believe that milestone validated the underlying Counter-UAS principles of mechanical entanglement. Since then, we have accelerated that development on multiple fronts. As an example, the 1KC wide area kinetic anti-drone cassette extends our Counter-UAS portfolio further with a modular multi-drone interdiction capability designed for defense and homeland security operations. We also introduced the concept of Drone as a First Responder and interdiction platform, a purpose-built payload designed to transform standard drones from passive observers into an active non-lethal response tool. We have also expanded our manufacturing partnership with K-Form to support rapid prototyping, engineering refinement, and scalable domestic production of these systems. Our distribution agreement with distributor partners across India, Canada, and Panama include pre-orders for the DFR-X system alongside BolaWrap and Wrap Reality systems. Therefore, this sales activity suggests that our international demand is emerging. As a result of all these R&D efforts coming to market, we are optimistic that the new offerings position us to compete meaningfully in drone-related markets to supply and support both defense and public safety applications. When it comes to our federal and government access, our strategic partnership with Carahsoft Technology as a master government aggregator makes our portfolio of solutions available through the NASPO ValuePoint and OMNIA Partners procurement vehicles, contract vehicles across federal, state, and local agencies. Select TAA compliant products in our Made in America manufacturing efforts comply with the increased need for procurement of those solutions that government customers require. Wrap Federal is also positioning our portfolio for DoD, DHS, and other federal customers at a time when we see a need for non-lethal response with our core BolaWrap technologies, particularly well-suited for this moment in our nation. Our execution plan for 2026 is focused on five key priorities. First, non-lethal response at scale. We are expanding agency-wide deployments through integrated platforms that bundle BolaWrap hardware, training subscriptions in WrapTactics and Wrap Reality, policy support, and WrapVision. This programmatic approach is intended to dive deeper customer relationships with higher retention and expanding revenue per agency. Second, federal and defense market entry positions us for a portfolio that we aim to have with DoD, DHS, and other federal customers. We have made a deliberate decision to invest resources in our government and policy engagement efforts. The national conversation around the use of force continues to evolve, and we believe our non-lethal response framework directly addresses one of the most pressing challenges in this space. Third, we're gonna continue our UAS development. We see autonomous systems and drone-related technology evolving in public safety. We believe non-lethal response solutions are the logical place to start in having actual activity from these autonomous systems when we are developing those technologies to meet that emerging need. Fourth, we see recurring revenue growth. Scaling subscription-based digital and VR training, digital evidence management, and technology-enabled services designed to build a more predictable, higher margin revenue base for us. Finally, we see international expansion as our fifth item. Current trends suggest broad-based interest in non-lethal response solutions globally. Our distributor network and the centralized procurement dynamics in many international markets support the potential for large-scale deployments. I'll now hand it back to Scot to discuss our growth outlook for 2026. Thanks, Jared. Since stepping into the CEO role over two years ago, I've been cautious about providing forward-looking guidance until now. We simply didn't have the visibility required to do so responsibly, but today it's changed. For the first time, we have visibility into our pipeline. Based on our goals, we're targeting 100% revenue growth this year. Our projection stems from the pace of the business, including sales bookings from the fourth and first quarter, and the quality of pipeline we are seeing through the rest of this year. This target reflects several key drivers, including continued growth in agency-wide deployments, expansion of subscription-based recurring revenue, and continued international momentum. While the timing of these orders can influence the quarterly results, the contracts we are pursuing for 2026 and 2027 have the potential to increase this business dramatically. This is the direction we're taking this company. We are aligned on our strategy, our investments, and our execution around leading the global shift towards non-lethal response. To our shareholders, thank you for the belief in us over the years. We are fully aligned with you, and we are committed to building long-term wealth while delivering solutions that make a difference in this world. We are confident in where we're going, and we're excited what lies ahead. Thank you. Now it's gonna be time for questions. Lou, do you have the questions together and maybe just start to maybe give us the first one and let's. Do we have questions today? Absolutely. A few came in. The first question up is the company looking at any additional capital raising opportunities? I'll take one. No. As you know, we just raised $5 million. At this moment we're not in the market for additional capital. I will say that. Not saying that we won't raise, but we are definitely not in the market at this time. We will continue to be opportunistic where it makes sense to raise money. Next question. The next question is: Have you launched non-lethal response? If not, what are the plans? I'll take that. We've been soft selling this to our customer base for the last couple of months, and it's being received extremely well. The launch is gonna be in the next 30-45 days. We're gearing up for that launch. It's effectively a relaunch of the company, packaging in service, a meaningful service line into our go-to-market, which has been nonexistent. The next question up. You're guiding towards approximately 100% revenue growth. Where is that confidence coming from? Yeah. I'll take that one again. It's coming from what we're seeing in the business right now. It's what we started seeing in the fourth quarter. We continue to see that in the quarter that we're in. Already, what's looking like a very solid second quarter. It's coming from the results that we're in now and the pipeline. I've never seen, since I've been on the job here as CEO, I haven't seen the quality in our pipeline like we're seeing now. It's just. It's enabled me to put a target out. Quite frankly, that number does not include some of the larger federal opportunities that we're chasing. This is stuff, this is really pipeline that we feel confident about and this does not include some of the larger opportunity sets that we're pursuing now. Thank you. The next question that came in: What's the difference between non-lethal and less lethal, and why does that distinction matter? Hey, Scot, I can take that one. Great. Hey, Lou. You know, when you think about the word less than lethal, although it's accepted in law enforcement, and we understand it to be, you know, not the intentional use of deadly force, the results are different than the label. When we think about other weapons, like electronic weapons or pepper spray or baton, there are documented rates of unintentional fatalities and lethality with less than lethal tools. That's why they have less than lethal. Even though the word less than lethal is commonplace, if you pause and you think about it does not eliminate the actual evidence and outcome of fatalities. Whereas we have fully embraced non-lethal, given our track record of zero fatalities, zero serious injuries. And that distinction matters. It matters because there are many customers that we have, and more recently in conversations at different high levels, that when you have an unintentional outcome, there are severe and disproportionate effects that profoundly impact communities, cities, and America, frankly. By differentiating that stat, that actual evidence of us having a non-lethal response, we believe that is unique, important, and needed, in America, and others are following internationally. It's intentional that we're talking about non-lethal, and we also know it's intentional that it's more than just the tool, more than just the device. It's the underlying policies that support the differences on non-lethal, being proactive but lawful in a non-lethal response, and actually having evidence-based outcomes that justify the title of non-lethal. That difference is very important, and it's how we're building their core offerings in our ecosystem. Thank you. The next question that came in: Where does the drone platform stand? Yeah, I can take that one too. What we've learned is that, you know, the cassettes we sell on the BolaWrap 150 can also be deployed on other platforms. We've shown through demonstrations and trials that you can have multiple cassettes on a platform. We chose a drone platform. We recognize that Drone as a First Responder is increasingly becoming adopted by agencies. It's great. Drone as a First Responder is good. It gives officers situational awareness of emerging threats and environments so they can respond better. When you combine the elements of Drone as a First Responder and you add the non-lethal payload onto it, you're now giving officers an option where they can not just understand the environment and situation, but give them the confidence that non-lethal technology can distract or deter or confuse people safely in a guaranteed non-lethal way, so that follow-on hands-on control and lawful control can ensue. We are out of the lab. We have demonstrated it well on bench-top testing. Engineering is making advancements. We're now out and testing it in controlled scenarios. We have customers and agencies calling and wanting to understand where the timeline is. We understand that we have to get this right and anticipate rolling this out and have accepted pre-orders on the platform and technology. We've partnered with the right technology partners to deliver an integrated solution, and we see this coming to market this year. Great. Thank you. The next question that came in: What is the status of Wrap Federal and your federal government traction? Scot, do you want that or you want me? Why don't you start off and I can add? We're seeing good government traction in conversations in the business and the pipeline that we're developing there. We know that our partner Carahsoft offers to do business with the government, federal government, you need to have contract vehicles, and we know that Carahsoft is a great partner in providing established government contracting mechanisms to reach out to our technology and our solution set. We have contract vehicles in place today for that. We also know that as we look at our sales efforts and level of resources, we see opportunity not only in the U.S. federal side for federal enforcement, but also adjacent markets like the Department of Defense and others for our drone-related technologies. We've staffed up appropriately and are building opportunities to meet known government requirements that align with our capabilities. Do you wanna add anything else, Scot? Yeah. The federal government's helping in some of the international activity as well, where we're connecting to the embassies and some of the different groups that our country has spread throughout the world. We're seeing deal flow when we've got agencies overseas straight through the embassy. I think we got one or maybe two orders that way this year, so far this year, and we're gonna be pursuing them. The connectivity between our government and other governments is really a balance that we're trying to strike, and we're inserting ourselves in the middle of plenty of those conversations, which is just, I feel like, getting us much more connected to our government and international governments. I feel like leveraging the United States' footprint globally is a strategy that we're going to really lean into this year and next. Great. Thank you. To that end, what does the international pipeline look like, and what regions have the most potential or have shown the most interest? I'll take that one. Look, what's interesting about it is a lot of the big opportunities we've been chasing for quite some time that you guys have been hearing about, they haven't gone anywhere. In fact, none of them have really. They're just frightfully slow, but this quarter we actually you could see that we've announced entry into new markets. So it is slow overseas. We're but the pipeline, the opportunity set is just growing. As a result of us transforming from a device company into a response, I think to all our surprise, we're seeing interest in not just our BolaWraps. We're seeing interest in the body cam. We're seeing interest in the way we're training. They're very interested in this response. We start getting in talks with our drone program. I think we're gonna see all this come together. We're just selling more to the same customer. I see us being able to get more out of the pipeline by having a bigger service offering. That's already transpiring. I mean, we're seeing it now. Great. We have the last two questions here. The first is, management insiders have been buying stock. Can you speak to the alignment with shareholders? Well, I'll take that one. I've been involved with hundreds of public companies, and plenty of private ones. I've yet to see. I think management in the last two years, maybe two and a half years, has put close to $8 million, between $7 million and $8 million out of, I think, $25 million invested just in the last two and a half years. I'm pretty close on that number. It's a hell of a commitment from management and insiders, showing complete alignment with shareholders. Yeah, I'm proud of that. We've got our money where our mouth is. This is not a lifestyle business for us. This is not just a job. We are fully invested, and we'll continue to support this business financially until we don't have to anymore. Great. Thank you. The last question, what catalysts should investors be watching for over the next 12 months? Advancements in our Counter-UAS business, you're gonna see that. As we work towards full commercialization, expansion of the tactics program, for sure, WrapTactics and the adoption. You're gonna see more recurring revenue come from this company as a result of going to market with tactics. You're gonna see much more federal engagement through Wrap Federal. We're staffing up and bringing in more talent. It's a massive opportunity for that, and we are putting the right people in place to execute on it. We're already seeing international deployments in places like South America and Asia Pacific. We're seeing it now. Even now, I think we just referenced that in the last press release. Legislative momentum. We are pushing federally. We're pushing at state levels. We're looking to get language both federally and state to state. We're pushing hard legislatively. This is a bipartisan issue. This is not a left issue. This is not a right issue. This is just straight up the middle. It's about safety. People are very interested in it on both sides of the aisle. I think communities are interested. We're leaning into it because we see that it's being well received. I can just tell you, when we pivoted from the device to this response, the engagement is dramatically different. That speaks to the political environment, and that's where we're starting to spend meaningful time, and we'll continue to do so. Great. Thank you. That concludes our question and answer portion. On behalf of Scot, Jared, and the entire Wrap team, thank you for your engagement and support. We look forward to updating you on our progress. This concludes Wrap Technologies's 2025 earnings conference call. Thank you. Thank you for participating, and you may now disconnect.