MeritValue

WRAP TECHNOLOGIES, INC.

WRAPdata completeness 88%9 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

WRAP TECHNOLOGIES, INC. earns about -704% on equity, but has diluted owners by 28% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$7.38M1$7.48M2$5.34M3$3.59M3$4.67M4
Net income−$24.4M5−$17.6M6−$30.2M7−$5.88M8−$10.3M8
Operating cash flow−$18.2M9−$14.6M10−$16.7M11−$8.13M12−$10.3M12
Capital expenditure$995,00013$256,00014$230,00015$12,00016$100,00016
Free cash flow (derived)−$19.2M9−$14.9M10−$16.9M11−$8.14M12−$10.4M12
Total debt—————
Cash & equivalents$4.94M17$5.33M17$3.96M18$3.61M19$3.47M19
Diluted shares39.3M41.2M42.3M45.6M50.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$2.28
your share of equity
Profit it earned you last year
−$2.05
Free cash flow it threw off
−$2.06
Debt you’d be carrying
—

10 shares is a claim on $2.28 of net worth that earned you −$2.05 and generated −$2.06 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
-704% avg · 5y
FY21 -59%FY22 -65%FY23 -955%FY24 -2350%FY25 -90%

It earned an average -704% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+28% shares · 5y

Share count is up 28% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001437749-23-005218 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001437749-24-027942 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001641172-25-001416 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2025-12-31 · accession 0001140361-26-011401 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0001437749-23-005218 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001437749-24-027942 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001641172-25-001416 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001140361-26-011401 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001437749-23-005218 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001437749-24-027942 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001641172-25-001416 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001140361-26-011401 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001437749-23-005218 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001437749-24-027942 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001641172-25-001416 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001140361-26-011401 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001437749-24-027942 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-12-31 · accession 0001641172-25-001416 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-12-31 · accession 0001140361-26-011401 (CashAndCashEquivalentsAtCarryingValue)