Item 7.01 Regulation FD Disclosure.
Issuance of Press Release
On November 18, 2021, Wrap Technologies, Inc. (the “Company”) issued a press release announcing that the United States District Court, Central District of California granted the Company's motion to dismiss the consolidated class action securities complaint originally filed in September 2020 (In re Wrap Technologies, inc. Securities Exchange Act Litigation, Case No. 20-8760-DMG (PVCx)) (the "Action"), also granting the lead plaintiff leave to file a second amended complaint by December 6, 2021.
Classification of BolaWrap 150
The Company received a letter from the Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF") in response to its classification request, submitted earlier this year. The response letter from the ATF informed the Company that the BolaWrap 150 will keep the same classification of the original BolaWrap 100. This classification does not change the manner of sale to the Company’s primary target market of law enforcement in the U.S. and is not expected to have an impact on sales domestically or internationally.
Disclaimer.
The information set forth in or incorporated by reference into Item 7.01, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Forward-Looking Statements.
The attached press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to: statements regarding the Company's overall business; total addressable market; and, expectations regarding future sales and expenses. 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. 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: plaintiffs' ability to file an amended complaint in the Action; the Company's ability to successfully implement training programs for the use of its products; the Company's ability to manufacture and produce product for its customers; the Company's ability to develop sales for its new product solution; the acceptance of existing and future products, including the acceptance of the BolaWrap 150; the risk that distributor and customer orders for future deliveries are modified, rescheduled or cancelled in the normal course of business; 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 solution; product defects; litigation risks from alleged product-related injuries; risks of government regulations; the business impact of health crises or outbreaks of disease, such as epidemics or pandemics; the ability to obtain export licenses for countries outside of the US; the ability to obtain patents and defend IP 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, quarterly report on Form 10-Q, and other SEC filings. These forward-looking statements are made as of the date of this press 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.