Business Context and Reporting Period
This Form 8-K Current Report was filed by Wrap Technologies, Inc. on May 17, 2024. The report addresses regulatory compliance issues regarding the company's continued listing on the Nasdaq Capital Market. The company is incorporated in Delaware and its common stock trades under the symbol WRAP.
Key Financial Metrics
The filing text does not provide specific financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on regulatory status and delinquency in filing periodic reports.
Material Changes and Compliance Status
- Delinquent Filings: The company is not in compliance with Nasdaq Listing Rule 5250(c)(1) due to the failure to file its Annual Report on Form 10-K for the year ended December 31, 2023, and its Quarterly Report on Form 10-Q for the three months ended March 31, 2024.
- Regulatory Notices: An initial notice regarding the 10-K delinquency was received on April 18, 2024. A subsequent notice regarding the 10-Q delinquency was received on May 17, 2024.
- Immediate Impact: The Nasdaq notice has no immediate effect on the listing of the company's common stock.
Outlook, Risks, and Management Commentary
- Compliance Plan Deadline: The company must submit a plan to regain compliance to Nasdaq by June 17, 2024.
- Extension Possibility: If the plan is accepted, Nasdaq may grant an exception of up to 180 calendar days from the original 10-K due date, extending the deadline to file delinquent reports until October 14, 2024.
- Risks: Management states there can be no assurance that the company will regain compliance with Nasdaq rules or maintain compliance with other continued listing requirements.
- Management Action: The company is currently evaluating its options for regaining compliance.
Investor Verification Checklist
- Verify the status of the Form 10-K for the year ended December 31, 2023, and the Form 10-Q for the quarter ended March 31, 2024.
- Monitor the submission of the compliance plan to Nasdaq by the June 17, 2024 deadline.
- Watch for any further communications from Nasdaq regarding the acceptance of the compliance plan or potential delisting proceedings.
- Review the press release dated May 24, 2024 (Exhibit 99.1) for additional details on the company's response.