Wrap Technologies Inc. (NASDAQ: WRAP) is gaining traction in the non-lethal law enforcement sector as data shows the 10 largest U.S. police departments paid $1.02 billion in settlements and judgments for misconduct cases, many involving excessive force. The company's BolaWrap device, a hand-held remote restraint tool that fires a Kevlar tether, provides an alternative that does not inflict pain, potentially reducing such incidents.
According to a press release, more than 140 police departments in the U.S. and agencies in 19 other countries received BolaWrap products in 2019. The company has fielded over 1,700 requests for demos, training, and quotes from U.S. departments, plus over 600 from international markets. This demand comes as the non-lethal weapons market is projected to grow from $6.32 billion in 2016 to $11.85 billion by 2023, presenting a significant opportunity for Wrap Technologies.
The BolaWrap, invented by chief technology officer Elwood Norris, discharges an eight-foot bola-style tether to restrain individuals at a range of 10-25 feet. It is designed to assist law enforcement in safely controlling encounters, particularly with individuals experiencing mental crises. The company holds five U.S. patents with eight more pending, and has filed patents in 34 additional countries, bolstering its intellectual property position.
Wrap Technologies has scaled production to 1,800 devices per month and plans to double capacity to 3,600 per month. In June 2020, the company raised $12.4 million through a primary share equity placement, with proceeds intended for engineering expansion, product development, and working capital. This financial backing positions the firm to meet growing demand as police departments seek alternatives to lethal force.
The $1.02 billion in payouts from major city police departments underscores the urgency for non-lethal solutions. BolaWrap's pain-free restraint method could help reduce liability and improve community relations. With a strong patent portfolio and increasing adoption, Wrap Technologies is well-positioned to establish a commanding presence in the non-lethal weapons market.
