MIAMI - Wrap Technologies, Inc. (NASDAQ:WRAP), a company specializing in public safety solutions, has been notified by the Nasdaq Stock Market that it is currently noncompliant with Nasdaq Listing Rule 5250(c)(1). This rule requires timely filing of periodic financial reports with the Securities and Exchange Commission (SEC).
The company, known for its BolaWrap remote restraint device, failed to file its Quarterly Report on Form 10-Q for the quarter ending March 31, 2024. Previously, on April 18, 2024, Wrap Technologies also did not file its Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
To address these issues, the company must submit a compliance plan by June 17, 2024. If accepted by Nasdaq, Wrap Technologies may be granted up to 180 days from the Form 10-K's original filing deadline to submit both the Form 10-K and Form 10-Q, which would extend the deadline to October 14, 2024.
The Nasdaq notification does not immediately affect the listing of the company's common stock. Still, if Wrap Technologies fails to regain compliance within the given timeframe, it risks having its stock delisted from the Nasdaq exchange.
Wrap Technologies has made a name for itself in the public safety sector with products like the BolaWrap, Wrap Reality virtual reality training system, and Intrensic evidence management solution. These innovations are designed to enhance the capabilities of law enforcement and public safety organizations worldwide.
The recent compliance issue is a significant development for Wrap Technologies and its investors. It is important to note that this article is based on a press release statement from the company. As the situation evolves, further updates from Wrap Technologies or Nasdaq will provide additional details on the company's compliance status and the potential implications for its stock listing.
InvestingPro Insights
As Wrap Technologies navigates its current compliance challenges with Nasdaq, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Wrap Technologies holds a market capitalization of $69.86 million, indicating a relatively small size within the public safety solutions sector.
Despite a notable revenue growth of 32.06% over the last twelve months as of Q1 2023, the company's financial metrics reveal some challenges. Specifically, the firm's P/E ratio stands at -4.33, reflecting market skepticism about its earnings potential.
Adding to the concerns, Wrap Technologies' stock has experienced a significant decline, with a 58.1% drop in price total return over the last three months. This volatility is echoed in the InvestingPro Tip that mentions the stock's price movements are quite volatile, which could be a red flag for risk-averse investors. Furthermore, the company is quickly burning through cash, a critical factor for investors to consider, especially given the recent noncompliance notice from Nasdaq.
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