# EDGAR Filing Document

**Accession Number:** 0001702924
**File Stem:** 0001493152-25-021986
**Filing Date:** 2025-11
**Character Count:** 25968
**Document Hash:** 49310ed3c49543a9e3c847f1f6a71e14
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-25-021986.hdr.sgml**: 20251112

**ACCESSION NUMBER**: 0001493152-25-021986

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20251112

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251112

**DATE AS OF CHANGE**: 20251112

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** WRAP TECHNOLOGIES, INC.
- **CENTRAL INDEX KEY:** 0001702924
- **STANDARD INDUSTRIAL CLASSIFICATION:** ORDNANCE & ACCESSORIES, (NO VEHICLES/GUIDED MISSILES) [3480]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 980551945
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38750
- **FILM NUMBER:** 251473833

**BUSINESS ADDRESS:**
- **STREET 1:** 3480 MAIN HWY, SUITE 202
- **CITY:** MIAMI
- **STATE:** FL
- **ZIP:** 33133
- **BUSINESS PHONE:** 800-583-2652

**MAIL ADDRESS:**
- **STREET 1:** 3480 MAIN HWY, SUITE 202
- **CITY:** MIAMI
- **STATE:** FL
- **ZIP:** 33133

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): November 12, 2025

**WRAP TECHNOLOGIES, INC.**

(Exact name of registrant as specified in its charter)

<u>Delaware</u> <u>001-38750</u> <u>98-0551945</u> <br> (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

<u>3480 Main Hwy</u>, <u>Suite 202</u>

<u>Miami</u>, <u>Florida 33133</u>

(Address of principal executive offices) (Zip Code)

(800) 583-2652

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, par value $0.0001 per share | WRAP | Nasdaq Capital Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2) ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 2.02 Results of Operations and Financial Condition.**

On November 12, 2025, Wrap Technologies, Inc. (the "Company") issued an earnings release to announce the Company's financial results for its fiscal quarter ended September 30, 2025. A copy of the earnings release is attached to this Current Report on Form 8-K as Exhibit 99.1.

The information in this Current Report on Form 8-K, including the information set forth in Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall any exhibit filed herewith be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

**Item 9.01 Financial Statements and Exhibits.**

(d) Exhibits

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Press release dated November 12, 2025](ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **WRAP TECHNOLOGIES, INC.** | **WRAP TECHNOLOGIES, INC.** |
| Date: November 12, 2025 | By: | */s/ Scot Cohen* |
|  |  | Scot Cohen |
|  |  | Chief Executive Officer<br> (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer) |

---

## Exhibit 99.1

**Exhibit 99.1**

**Wrap Reports $2M Gross Revenue in Q3 With Non-Lethal Response Launch**

***241% increase in Gross Revenue, Growth in Product and Subscription Revenue, Cost Reductions and Cash Improvements Mark Continued Progress Post Turnaround***

 

**MIAMI, FL – November 12, 2025 – Wrap Technologies, Inc. (NASDAQ: WRAP)** ("Wrap" or the "Company"), a global leader in non-lethal response and public-safety technology solutions, today announced financial and operating results for the third quarter ended September 30, 2025.

**Highlights of Financial Results:**

● **Revenue Growth:** <br> Total gross revenue for the three months ended September 30, 2025, was $2.0 million, representing an increase of 241% compared to $0.6 million for the same period in 2024. The growth was primarily driven by stronger BolaWrap® product sales and the addition of managed services revenue. Total net revenue for the quarter was $1.5 million, up 151% from the prior-year period. For the nine months ended September 30, 2025, gross revenue totaled $3.8 million compared to $3.6 million in 2024, while net revenue was $3.3 million versus $3.6 million, reflecting the Company's ongoing transition to a more sustainable, service-oriented model.

The $2.0 million in quarterly sales represents the strongest performance in the past 8 quarters which we believe indicates that the Company's core fundamentals are improving, supported by growing demand for its integrated non-lethal solutions.

● **Recurring Subscription Growth:** <br> Recurring subscription sales grew steadily during the quarter ended September 30, 2025, totaling $236,000, which represented approximately 12% of total gross revenue. The increase reflects the Company's continued transition toward a recurring revenue model, supported by growth in WrapReady™, WrapPlus™, and managed service subscriptions, as well as early adoption of training and policy management programs across law enforcement agencies.

● **Margin Expansion:** <br> Gross profit increased 276% to $0.9 million for the quarter ended September 30, 2025, compared to $0.2 million in the same period last year. Gross margin expanded to 59% from 40%, driven by improved pricing discipline, product mix, and operational efficiencies.<br> For the nine-month period ended September 30, 2025, gross profit was $2.0 million, representing a 61% margin, compared to $2.1 million and a 56% margin in 2024.

● **Reduced Operating Expenses:** <br> Operating expenses for the quarter ended September 30, 2025, were $3.6 million, compared to $3.9 million in the same period last year - an improvement of 6% while maintaining strategic investments in growth. For the nine months ended September 30, 2025, operating expenses decreased 11% to $11.5 million, from $13.0 million in the prior-year period.

● **Spending on Growth and Innovation:** <br> Although total expenses remain relatively flat, the composition of spending has shifted toward growth and innovation. Investments are now concentrated in sales, marketing, and research & development (R&D)—areas that directly support future revenue generation. The Company has expanded its domestic and international salesforce, established a significant presence in Washington, D.C. to accelerate federal market expansion, and made responsible R&D investments to advance its non-lethal response ecosystem, including law enforcement capabilities, counter-drone systems, and drone-as-first-responder solutions that we believe together represent a significantly larger addressable market.

● **Improved Operating Results:** <br> Operating loss improved 24% to $2.8 million for the quarter ended September 30, 2025, compared to $3.6 million in the third quarter of 2024. For the nine months ended September 30, 2025, operating loss improved 13% to $9.5 million, from $10.9 million in the prior-year period—demonstrating meaningful progress toward profitability through disciplined execution and operational efficiency.

**Other Recent Highlights:**

● Wrap and Vector Achieved Air-to-Air Interdiction Using BolaWrap® Entanglement Technology, Ushering New Era of CUAS Defense for Military, Homeland Security, and Public Safety Partners

● Wrap and Mithril Defense Achieved Historic First Drone-to-Human Interdiction, Proving Next-Gen Non-Lethal Aerial Response for Public Safety and Defense

● Wrap Launched Next-Generation Drone First Responder Interdiction Solution with a Focus on Non-Lethal Response

● Wrap Achieved Key Milestone in Counter-UAS Development with Successful MERLIN Stage One Testing Conducted by Wrap

● Wrap Partnered with Carahsoft to Expand Public Sector Access to Non-Lethal Public Safety and Counter-UAS Solutions

● Wrap and LETAC USA Announced Innovative Partnership to Help Define Global Standards for Non-Lethal Machine-to-Man Policy and Tactics

● Wrap and STORM Training Group Partnered to Deliver Post-BolaWrap® Arrest & Control Training via WrapTactics™

● Wrap Introduced WrapTactics™: Digital Training Platform Driving BolaWrap® Adoption and Shifting Policing Toward Pre-Escalation Training

● Institutional Investor and Juggernaut Capital Founder John Shulman Joined Wrap's Board of Directors

● Wrap Appointed Internationally Recognized Strategic Communications and Technology Expert Braden Frame as Chief Commercial Officer

● Wrap Appointed Experienced Law Enforcement Leader Joseph Cameron as CRO to Capture Expanding Growth Opportunities

Wrap expects to host a call to discuss these results. Details, including the date, time, and a link to register, are provided below:

● **Date:** Wednesday, November 12, 2025

● **Time:** 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)

● **Webcast Link:** <u>https://edge.media-server.com/mmc/p/fys43zmv</u> 

**About Wrap Technologies, Inc.**

Wrap Technologies, Inc. (Nasdaq: WRAP) a global leader in innovative public safety technologies and non-lethal tools, delivering cutting-edge technology with exceptional people to address the complex, modern day challenges facing public safety organizations.

Wrap's complete public safety portfolio includes the non-lethal BolaWrap 150 device, WrapReality™ immersive training platform, WrapVision™ body-worn camera system, WrapTactics™ training programs, and next-generation CUAS solutions like PAN-DA and the 1KC Kinetic Anti-Drone Cassette, all of which supports the Company's mission to provide safer, scalable, and cost-effective technologies for public safety, defense, and critical infrastructure markets. Wrap's BolaWrap® 150 solution leads in pre-escalation intended to provide law enforcement with a safer choice for nearly every phase of a critical incident. This innovative, patented device deploys a multi-sensory, cognitive disruption that leverages sight, sound and sensation to expand the pre-escalation period and gives officers the advantage and critical time to manage non-compliant subjects before resorting to higher-force options. The BolaWrap 150 is not pain-based compliance. It does not shoot, strike, shock, or incapacitate, instead, it helps officers strategically operate pre-escalation on the force continuum, reducing the risk of injury to both officers and subjects. Used by over 1,000 agencies across the U.S. and in 60 countries, BolaWrap® is backed by training certified by the International Association of Directors of Law Enforcement Standards and Training (IADLEST), reinforcing Wrap's commitment to public safety through cutting-edge technology and expert training.

**Wrap Reality™ VR is a fully immersive training simulator to enhance decision-making under pressure.**

As a comprehensive public safety training platform, it provides first responders with realistic, interactive scenarios that reflect the evolving challenges of modern law enforcement. By offering a growing library of real-world situations, Wrap Reality™ is intended to equip officers with the skills and confidence to navigate high-stakes encounters effectively, which we believe leads to safer outcomes for both responders and the communities they serve.

**WrapVision is an all-new body-worn camera and evidence management system built for efficiency.**

Designed for efficiency, security, and transparency to meet the rigorous demands of modern law enforcement, WrapVision captures, stores, and helps manage digital evidence, ensuring operational security, regulatory compliance, and enhanced video picture quality and field of view.

**Trademark Information**

Wrap, the Wrap logo, BolaWrap®, Wrap Reality™ and Wrap Training Academy are trademarks of Wrap Technologies, Inc., some of which are registered in the U.S. and abroad. All other trade names used herein are either trademarks or registered trademarks of the respective holders.

**Cautionary Note on Forward-Looking Statements – Safe Harbor Statement**

This release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expect," "anticipate," "should", "believe", "target", "project", "goals", "estimate", "potential", "predict", "may", "will", "could", "intend", and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Moreover, forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control and include, but are not limited to, statements relating to any projections of revenue or other financial items or any statements regarding the plans and objectives of management for future operations, Wrap's planned future products, technologies, integration, intended product designs and expected benefits therefrom, expected market opportunities and outcomes related to Wrap's products to increase officer and public safety. The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the Company's ability to maintain compliance with the Nasdaq Capital Market's listing standards; the Company's ability to successfully implement training programs for the use of its products; the Company's ability to manufacture and produce products for its customers; the Company's ability to develop sales for its products; the market acceptance of existing and future products; the availability of funding to continue to finance operations; the complexity, expense and time associated with sales to law enforcement and government entities; the lengthy evaluation and sales cycle for the Company's product solutions; product defects; litigation risks from alleged product-related injuries; risks of government regulations; the impact resulting from geopolitical conflicts and any resulting sanctions; the ability to obtain export licenses for counties outside of the United States; the ability to obtain patents and defend intellectual property against competitors; the impact of competitive products and solutions; and the Company's ability to maintain and enhance its brand, as well as other risk factors mentioned in the Company's most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and other Securities and Exchange Commission filings. These forward-looking statements are made as of the date of this release and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.

**Investor Relations Contact:**

(800) 583-2652

<u>ir@wrap.com</u>

**Wrap Technologies, Inc.**

**Condensed Consolidated Balance Sheets**

(in thousands, except par value and share amounts)

(unaudited)

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| **ASSETS** |  |  |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $5965 | $3610 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 1822 | 513 |
| &nbsp;&nbsp;&nbsp;Inventories, net | 5461 | 6170 |
| &nbsp;&nbsp;&nbsp;Prepaids and deposits | 334 | 178 |
| &nbsp;&nbsp;&nbsp;**Total Current Assets** | 13582 | 10471 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 138 | 146 |
| &nbsp;&nbsp;&nbsp;Operating lease right of use assets, net | 2242 | 1964 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 2147 | 2354 |
| &nbsp;&nbsp;&nbsp;Other assets, net | 128 | 186 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Assets** | $18237 | $15121 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | 596 | 609 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 563 | 1403 |
| &nbsp;&nbsp;&nbsp;Customer deposits | 61 | 27 |
| &nbsp;&nbsp;&nbsp;Deferred revenue - short term | 382 | 466 |
| &nbsp;&nbsp;&nbsp;Operating lease liability - short term | 305 | 567 |
| &nbsp;&nbsp;&nbsp;Warrants - short term | - | 10131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Current Liabilities** | 1907 | 13203 |
| &nbsp;&nbsp;&nbsp;Deferred revenue - long term | 18 | 39 |
| &nbsp;&nbsp;&nbsp;Operating lease liability - long term | 2186 | 1629 |
| &nbsp;&nbsp;&nbsp;Total long-term liabilities | $2204 | $1668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities** | $4111 | $14871 |
| **Commitments and Contingencies** |  |  |
| Stockholders' Equity |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock - 5,000,000 authorized; par value $0.0001 per share; 12,707 shares issued and outstanding at September 30, 2025, and December 31, 2024 |  |  |
| &nbsp;&nbsp;&nbsp;Common stock - 150,000,000 authorized; par value $0.0001 per share; 51,497,710 and 47,101,631 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively | $5 | $5 |
| &nbsp;&nbsp;&nbsp;Series A convertible preferred stocks - 10,000 authorized, par value $0.0001 per share; 8,207 shares issued and outstanding at September 30, 2025 and December 31, 2024 |  |  |
| &nbsp;&nbsp;&nbsp;Series B convertible preferred stocks - 4,500 authorized, par value $0.0001 per share, 4,500 and 0 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 126085 | 105326 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (111964) | (105081) |
| &nbsp;&nbsp;&nbsp;**Total Stockholders' Equity** | 14126 | 250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities and Stockholders' Equity** | $18237 | $15121 |

---

**Wrap Technologies, Inc.**

**Condensed Consolidated Statements of Operations and Comprehensive Loss**

(in thousands, except share and per share amounts)

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br> September 30,** | **Three Months Ended<br> September 30,** | **Nine Months Ended<br> September 30,** | **Nine Months Ended<br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Product sales | 1743 | $434 | 2293 | $3012 |
| &nbsp;&nbsp;&nbsp;Managed services | 242 |  | 1241 |  |
| &nbsp;&nbsp;&nbsp;Technology enabled services | 37 | 159 | 265 | 630 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues, gross | 2022 | 593 | 3799 | 3642 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales returns and allowances | (531) | - | (531) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues, net | 1491 | 593 | 3268 | 3642 |
| &nbsp;&nbsp;&nbsp;Cost of revenues | 608 | 358 | 1303 | 1587 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross profit** | 883 | 235 | 1965 | 2055 |
| **Operating Expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 3477 | 3334 | 10887 | 11029 |
| &nbsp;&nbsp;&nbsp;Research and development | 167 | 527 | 619 | 1960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 3644 | 3861 | 11506 | 12989 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations | (2761) | (3626) | (9541) | (10934) |
| **Other income / (expense):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 2 | 21 | 6 | 154 |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities |  | 5600 | 3158 | 12517 |
| &nbsp;&nbsp;&nbsp;Other | (14) | (5) | (14) | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income / (expense), net | (12) | 5616 | 3150 | 12656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net (loss) income** | $(2773) | $1990 | $(6391) | $1722 |
| Less: convertible preferred stock dividends | (164) | (317) | (492) | (1017) |
| **Net (loss) income attributable to common stockholders** | $(2937) | $1673 | $(6883) | $705 |
| Net (loss) income per basic and diluted share of Common Stock | $(0.06) | $0.04 | $(0.14) | $0.02 |
| Weighted average common shares used to compute net loss per basic and diluted shares of Common Stock | 51096292 | 45861208 | 49998057 | 45067793 |
| **Comprehensive (loss) income:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net (loss) income | $(2773) | $1990 | $(6391) | $1722 |
| &nbsp;&nbsp;&nbsp;Comprehensive (loss) income | $(2773) | $1990 | $(6391) | $1722 |

---

**Wrap Technologies, Inc.**

**Condensed Consolidated Statements of Cash Flows**

(in thousands)

(unaudited)

---

| | | |
|:---|:---|:---|
|  | **Nine Months ended September 30,** | **Nine Months ended September 30,** |
|  | **2025** | **2024** |
| **Cash Flows From Operating Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net (loss) income | $(6391) | $1722 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 455 | 646 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposition of assets | 9 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 3073 | 1814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warranty provision | 42 | (37) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities | (3158) | (12517) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash lease expense | (278) | 217 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for doubtful accounts | 35 | (89) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory obsolescence reserve | (397) | 12 |
| &nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (1344) | 2337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 1106 | (529) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (156) | 666 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (13) | 168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability | 295 | (99) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer deposits | 34 | (956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities and other | (876) | (370) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warranty settlement | (13) | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (105) | 130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in other non-current assets | 58 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (7624) | (6919) |
| **Cash Flows From Investing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from maturities of short-term investments |  | 7500 |
| &nbsp;&nbsp;&nbsp;Capital expenditures for property and equipment | (93) | (13) |
| &nbsp;&nbsp;&nbsp;Investment in patents and trademarks | (156) | (124) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by investing activities | (249) | 7363 |
| **Cash Flows From Financing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options |  | 588 |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of Series B convertible preferred stock | 4500 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of warrants and common stock, net of offering costs | 5728 |  |
| &nbsp;&nbsp;&nbsp;Dividends settled in cash | - | (120) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 10228 | 468 |
| **Net increase in cash and cash equivalents** | 2355 | 912 |
| **Cash and cash equivalents, beginning of period** | 3610 | 3955 |
| **Cash and cash equivalents, end of period** | $5965 | $4867 |
| **Supplemental Disclosure of Non-Cash Investing and Financing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Reclassification of warrant liabilities to additional paid in capital | $12151 | $94 |
| &nbsp;&nbsp;&nbsp;Dividends on convertible preferred stock | $(492) | $(1017) |
| &nbsp;&nbsp;&nbsp;Dividends settled with common stock | $492 | $140 |

---