MIAMI - Wrap Technologies, Inc. (NASDAQ:WRAP), a provider of advanced public safety solutions, announced today that it has received a notification from the Nasdaq Stock Market LLC for non-compliance with its listing rules. The notice was issued because the company failed to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, within the prescribed timeframe.
The Nasdaq Listing Rule 5250(c)(1) requires timely filing of periodic financial reports as a condition for continued listing. The company's inability to meet this deadline has triggered a warning from Nasdaq, but has no immediate impact on the trading of its common stock.
Wrap Technologies now has 60 days to submit a plan to regain compliance. If the plan is accepted, Nasdaq may allow until October 14, 2024, for the company to file the overdue report and avoid delisting. In the event that Nasdaq rejects the plan, Wrap Technologies can appeal the decision before a Nasdaq Hearings Panel.
This development comes as Wrap Technologies continues to market its suite of public safety products, including the BolaWrap remote restraint device, the Wrap Reality virtual reality training system, and the Intrensic evidence management solution. The company emphasizes its commitment to creating tools that support law enforcement agencies in maintaining public safety with minimal harm.
Despite this compliance setback, Wrap Technologies remains focused on its mission to deliver innovative solutions that address the challenges facing public safety organizations worldwide. The company's approach to product development is guided by a principle of causing no harm, aiming to foster stronger community relations through safer outcomes.
The information regarding the Nasdaq non-compliance notice and the company's products is based on a press release statement from Wrap Technologies.
InvestingPro Insights
As Wrap Technologies, Inc. navigates through its recent Nasdaq non-compliance issue, investors and stakeholders are closely monitoring its financial health and market performance. According to InvestingPro data, Wrap Technologies holds a market capitalization of 88.43 million USD, which provides a sense of the company's size in the competitive public safety sector.
Despite a robust revenue growth of 32.06% in the last twelve months as of Q3 2023, the company's P/E ratio stands at -5.52, reflecting investor concerns about its profitability in the near term.
An InvestingPro Tip highlights that Wrap Technologies is quickly burning through cash, a critical point for investors considering the company's future sustainability and its ability to continue investing in innovative public safety solutions.
Moreover, analysts contributing to InvestingPro do not anticipate the company will be profitable this year, which aligns with the negative operating income margin of -172.59% reported in the last twelve months as of Q3 2023.
On the trading front, Wrap Technologies' stock has experienced significant volatility. The price has seen a large uptick of 51.82% over the last six months, yet it has also faced a substantial decline of -35.6% over the last three months, indicating a turbulent period for the stock. This could be of interest to potential investors looking for entry points or current shareholders considering their position.
For those looking for a deeper dive into Wrap Technologies' financials and market performance, InvestingPro provides additional insights and metrics. With a total of 12 InvestingPro Tips available, investors can gain a more nuanced understanding of the company's financial health. To access these tips and more detailed analytics, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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