Wrap Technologies, Inc. (NASDAQ:WRAP) Q3 2023 Earnings Call Transcript

Chris DeAlmeida: Absolutely. So, when we look at our, our cost structure overall, we’ve done quite a bit over the last few months, really since April, even before that, to reduce our overall cost footprint, reduce our OpEx going forward both on the R&D side, getting tighter from that perspective, but mainly on the SG&A side. So we’ll continue to do that. We’ll continue to hold cost down. We think there’s ample opportunity for revenue growth at the cost structure. We’re at in the third quarter — in the second quarter, unfortunately, we had some changes in management, which has made some severance impacts in the third quarter, of course, we did the Intrensic acquisition, which is a wonderful acquisition. We did the preferred financing transaction.

And some of those costs unfortunately just get expensed per GAAP in one period versus over the life of the contracts. So with that, that’s why we had some increased costs. We expect that to not continue, that to go down dramatically. And really we’ll keep tight controls and really monitor the growth and let revenue run a little bit before any costs happen. Not saying down the road in years, we won’t see some increases as we add staff and really try to fulfill from a market perspective. But the main focus here is revenue and then just keeping cost under control.

Unidentified Company Representative: That concludes our Q&A portion of the call. Thank you for joining us today for Wrap Technologies’ third quarter 2023 earnings conference call. If you have any additional questions, please reach out to us via our website at ir.wrap.com. You may now disconnect.