Wrap Technologies Inc (WRAP) 2023 Q3 法說會逐字稿

Good afternoon, and welcome to the Wrap Technologies' third-quarter 2023 earnings conference call. We'll get started in about five minutes as we let people file into the room. Thank you.

下午好，歡迎參加 Wrap Technologies 2023 年第三季財報電話會議。我們將在大約五分鐘後開始，讓人們魚貫進入房間。謝謝。

Good afternoon, and welcome to the Wrap Technologies' third-quarter 2023 earnings conference call. My name is [JD Metfessel], and I'm the Director of Strategy and Communications for Wrap Technologies. Joining me today is Wrap Technologies' Chief Executive Officer, Kevin Mullins; and our Chief Financial Officer, Chris DeAlmeida.

下午好，歡迎參加 Wrap Technologies 2023 年第三季財報電話會議。我叫 [JD Metfessel]，是 Wrap Technologies 的策略與傳播總監。今天加入我的是 Wrap Technologies 執行長 Kevin Mullins；以及我們的財務長 Chris DeAlmeida。

Following the prepared remarks, we will have a few questions submitted from shareholders. I would like to remind everyone that this call will be recorded and made available for replay via a link in the Investor Relations section of the company's website site at ir.wrap.com. Additionally, the company asked that all interested parties register on the Investor Relations website at ir.wrap.com to continue to receive alerts and stock information.

在準備好的發言之後，我們將收到股東提出的一些問題。我想提醒大家，這次電話會議將會被錄音，並可透過公司網站 ir.wrap.com 投資人關係部分的連結重播。此外，該公司要求所有有興趣的各方在投資者關係網站 ir.wrap.com 上註冊，以繼續接收警報和股票資訊。

As a reminder to listeners, certain statements made during the call today constitute forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Act of 1995 as amended.

提醒聽眾，今天電話會議中所做的某些陳述構成根據 1995 年《私人證券訴訟法》修訂版的安全港條款所做的前瞻性陳述。

Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. These risks and uncertainties are described in our earnings release and more fully in our filings with the SEC. The forward looking statements today are made as of the date of this call, and we do not undertake any obligation to update the forward-looking statements.

此類前瞻性陳述受到已知和未知的風險和不確定性的影響，可能導致實際結果與此類陳述有重大差異。這些風險和不確定性在我們的收益報告中進行了描述，並在我們向 SEC 提交的文件中進行了更全面的描述。今天的前瞻性陳述是在本次電話會議之日做出的，我們不承擔更新前瞻性陳述的任何義務。

Now I would like to turn the call over to our CEO, Kevin Mullins. Kevin?

現在我想將電話轉給我們的執行長凱文馬林斯 (Kevin Mullins)。凱文？

Good afternoon and thank you for joining us. It is an honor to shed light on Wraps' commendable strides and achievements throughout the third quarter of 2023. The past quarter stands as a testament of our relentless dedication to excellence and our pursuit of innovation.

下午好，感謝您加入我們。我們很榮幸能夠介紹 Wraps 在 2023 年第三季取得的值得稱讚的進步和成就。

Our third-quarter performance brims with milestones, not merely in financial terms, but as a clear indication of our expanding global influence, significant demand from international avenues, particularly the African continent, coupled with a robust deployment order from the Northeast sector of the United States sentiments, are dominant market stature.

我們第三季的業績充滿了里程碑，不僅在財務方面，而且清楚地表明我們不斷擴大的全球影響力、來自國際管道（特別是非洲大陸）的巨大需求，以及來自聯合國東北部門的強有力的部署訂單各國的情緒，都是主導市場的身價。

In our ongoing endeavor to consistently elevate the standards, Wrap Reality continues to see significant demand leading to the second consecutive quarter of record sales. This success stems from our content focus of our training platform and rolling out new scenarios monthly, reinforcing the unparalleled caliber of our product ensemble. Furthermore, we are enthusiastically embarking on an officer mental health and wellness initiative, which we will continue to develop over the coming months.

在我們不斷努力不斷提高標準的過程中，Wrap Reality 繼續看到巨大的需求，導致連續第二季的銷售創紀錄。這項成功源自於我們對培訓平台內容的關注以及每月推出的新場景，增強了我們產品組合無與倫比的品質。此外，我們正在熱情地開展一項軍官心理健康和保健計劃，我們將在未來幾個月繼續發展該計劃。

We're also seeing good progress with sales with the recently acquired intrinsic platform in the third quarter. Early feedback shows the solution integrates well into our market and product set, which promises steady growth for us. With today's focus on clear transparency and strong responsibility, our improved products meet the changing needs of today's market and transform Wrap as a complete solutions provider.

我們也看到最近收購的內在平台在第三季的銷售取得了良好進展。早期反饋表明該解決方案很好地融入了我們的市場和產品組合，這有望為我們帶來穩定成長。憑藉當今對明確透明度和強烈責任感的關注，我們改進的產品滿足了當今市場不斷變化的需求，並將 Wrap 轉變為完整的解決方案提供者。

Our achievements in Q3 highlight the strong plans we have, our dedication to being the best, and a bright future we see ahead. As we move throughout this year, we're optimistic about our earnings in the coming months, thanks to great results from Wrap's products.

我們在第三季度所取得的成就凸顯了我們擁有的強有力的計劃、我們致力於成為最好的人以及我們所看到的光明未來。隨著今年的進展，我們對未來幾個月的收入感到樂觀，這要歸功於 Wrap 產品的出色表現。

This quarter shows how hard we work to grow our presence in the market. With strong demand, our Q3 sales are testament to our reach, both locally and internationally. We've had another record sales period with Wrap Reality, and we're starting to see good success from our new intrinsic platform as well. We're heading into the last full quarter with hope and excitement. We made some updates to our sales process to better meet our customers' growing needs. Looking ahead, Wrap is set for strong growth. Our commitment to constant innovation and understanding the needs of international law enforcement positions us as a top choice for public safety tech worldwide.

本季度展示了我們為擴大市場影響力所做的努力。由於需求強勁，我們第三季的銷售額證明了我們在本地和國際上的影響力。我們的 Wrap Reality 又創下了銷售紀錄，我們的新內在平台也開始取得良好的成功。我們滿懷希望和興奮地進入最後一個完整季度。我們對銷售流程進行了一些更新，以更好地滿足客戶不斷增長的需求。展望未來，Wrap 必將實現強勁成長。我們致力於不斷創新並了解國際執法的需求，這使我們成為全球公共安全技術的首選。

Our past success is just beginning. In 2024 and the years that follow, we plan to expand our global reach, offer more products, and strengthen our relationships with law enforcement groups. Everyone is sensing the positive direction of Wrap. With our team's energy and strong financial position, we're ready to achieve even more. Our goal is clear; it's to make real improvements in public safety. Thanks to our shareholders trust and our team's hard work, we are preparing for great things ahead.

我們過去的成功才剛開始。 2024 年及接下來的幾年，我們計劃擴大我們的全球影響力，提供更多產品，並加強我們與執法團體的關係。大家都感受到了Wrap的正面方向。憑藉我們團隊的活力和強勁的財務狀況，我們已準備好取得更大的成就。我們的目標很明確；這是為了真正改善公共安全。感謝股東的信任和團隊的辛勤工作，我們正在為未來的偉大事業做好準備。

Lastly, a massive thank you to everyone who has been with us on this journey, our partners, our stakeholders, and our dedicated team. Together, we're working towards the same and more transparent future in public safety.

最後，衷心感謝所有與我們一路同行的人、我們的合作夥伴、我們的利害關係人以及我們敬業的團隊。我們共同致力於公共安全領域的相同且更透明的未來。

I'll now turn the call over to Chris for an in-depth exploration of our financial performance for this quarter. Chris?

現在我將把電話轉給克里斯，讓他深入探討我們本季的財務表現。克里斯？

Good afternoon, everyone. Thank you, Kevin. Our third-quarter performance solidifies the strength and relevance of our offerings in the market both domestic and international sales have responded positively positioning Wrap for consistent growth. During the third quarter, we had record quarterly revenue as a result of continued strong demand for our solutions as we gain traction worldwide.

大家下午好。謝謝你，凱文。我們第三季的業績鞏固了我們產品在市場上的實力和相關性，國內和國際銷售都做出了積極的回應，為 Wrap 的持續成長奠定了積極的基礎。在第三季度，隨著我們在全球範圍內獲得關注，對我們的解決方案的持續強勁需求導致我們的季度收入創下歷史新高。

In the Americas, our revenues were relatively in line with the prior-year period. However, our international revenues showed strong improvement year on year, driven by a large order, which we announced. This is a reflection of the strong foundation we have built in these markets. For the third quarter, we have record gross profit, both in terms of dollars and as a percent of revenue. Our gross profit for the third quarter increased by 139% from the prior-year period, going from $910,000 to $2.18 million. Our efforts to increase production efficiency and manage costs for our BolaWrap 150 product have paid off. And this is clearly reflected in our gross margin of 60%.

在美洲，我們的營收與去年同期基本持平。然而，在我們宣布的大訂單的推動下，我們的國際收入較去年同期出現強勁成長。這反映了我們在這些市場上建立的堅實基礎。第三季度，我們的毛利（無論是以美元計算還是收入百分比）均創歷史新高。我們第三季的毛利比去年同期成長了 139%，從 91 萬美元增至 218 萬美元。我們為提高 BolaWrap 150 產品的生產效率和管理成本所做的努力已獲得回報。這清楚地反映在我們 60% 的毛利率上。

Operating expenses for the third quarter increased by 2% from the same period last year, mainly due to one-time items related to certain legal expenses, the financing that we completed, and the one-time costs associated with the Intrensic acquisition. If we exclude these one-time items, our operational expense for Q3 2023 decreased by 15%, reflecting our ongoing commitment to maintaining operational efficiency and financial discipline.

第三季營運費用較去年同期成長2%，主要是因為與某些法律費用、我們完成的融資相關的一次性項目以及與Intrensic收購相關的一次性費用。如果我們排除這些一次性項目，我們 2023 年第三季的營運費用將下降 15%，這反映了我們對維持營運效率和財務紀律的持續承諾。

Our net loss for the third-quarter 2023 improved significantly from the second quarter and on a year-over-year basis. Excluding the one-time items I mentioned earlier, our net loss was just under $2 million, which is a significant 50% improvement over the prior-year period. Going forward, we will continue to maintain tight controls on costs while we focus on revenue growth.

我們 2023 年第三季的淨虧損較第二季和年比都有顯著改善。除去我之前提到的一次性項目，我們的淨虧損略低於 200 萬美元，比去年同期顯著改善了 50%。展望未來，我們將繼續嚴格控製成本，同時專注於收入成長。

Looking at our balance sheet, it remains healthy and robust as of September 30, 2023, with cash and cash equivalents and short-term investments totaling approximately $15 million compared to $19 million at the end of 2022.

從我們的資產負債表來看，截至 2023 年 9 月 30 日，我們的資產負債表仍然健康穩健，現金和現金等價物以及短期投資總額約為 1,500 萬美元，而 2022 年底為 1,900 萬美元。

On the note of key performance indicators, I'm pleased to share that the total number of trained law enforcement agencies has grown by 14%, and certified officer and structures have increased by 14% from the prior-year period. These are continued promising indicators of our ability to expand our footprint and influence in the public safety market.

關於關鍵績效指標，我很高興地告訴大家，受過訓練的執法機構總數比去年同期成長了 14%，認證官員和機構也增加了 14%。這些都是我們擴大在公共安全市場的足跡和影響力的能力的持續有希望的指標。

In summary, our solid financials, ongoing operational enhancements, our recent acquisition, and market growth sets us up for a promising end of 2023. With these strategies and our strong financial position, we're well-placed for future success and increasing shareholder value.

總之，我們穩健的財務狀況、持續的營運增強、最近的收購和市場成長為我們在2023 年底創造了充滿希望的前景。做好了充分準備。

For Q3 2023, Wrap's notable milestones with record revenues and an all-time high in gross profit. These accomplishments reflect our company's resilience and adaptability immense industry dynamics. Furthermore, our strategic efforts have been successful in improving the net loss position, a trend we would anticipate will persist.

2023 年第三季度，Wrap 實現了顯著的里程碑，收入創紀錄，毛利創歷史新高。這些成就反映了我們公司的韌性和適應巨大行業動態的能力。此外，我們的策略努力已成功改善淨虧損狀況，我們預期這一趨勢將持續下去。

Looking ahead to Q4 and 2024, our recent achievements set a solid foundation. We are confident in sustaining this growth trajectory, capitalizing on our record financials, and further improving our overall financial performance. With a focus on innovation and market expansion, Wrap is poised for a robust performance underpinning our commitment to shareholder value creation.

展望第四季和 2024 年，我們最近的成就奠定了堅實的基礎。我們有信心維持這一成長軌跡，利用我們創紀錄的財務狀況，並進一步改善我們的整體財務表現。 Wrap 專注於創新和市場擴張，並有望取得強勁的業績，鞏固我們對股東價值創造的承諾。

With that, I'll turn the call back over to Kevin to discuss our outlook in more detail.

這樣，我會將電話轉回凱文，更詳細地討論我們的前景。

Thank you, Chris. As we conclude another pivotal quarter, I'm proud to share that the dedication, resilience, and strategic efforts of the entire Wrap Technologies team have been the driving force behind our continued success. We've navigated the challenges and harness the opportunities, reinforcing our position in the market as we continue to earn the trust of our clientele.

謝謝你，克里斯。在我們結束另一個關鍵季度時，我很自豪地與大家分享，整個 Wrap Technologies 團隊的奉獻精神、韌性和策略性努力一直是我們持續成功的驅動力。我們應對挑戰並抓住機遇，鞏固我們的市場地位，繼續贏得客戶的信任。

The outlook for our future has never been brighter. With a deep understanding of the industry, we are experiencing strong demand for our solutions. This demand isn't just a testament of the quality of our products, but also reflection of the evolving needs of a world where technology plays an increasingly pivotal role. Our vision for the future is clear. It continued to grow at a high trajectory, remain at the forefront of innovation, and further solidify our market leadership. With the continued support of our stakeholders and the relentless efforts of our team, we are poised to achieve these goals and exceed expectations.

我們未來的前景從未如此光明。憑藉對產業的深入了解，我們的解決方案需求強勁。這種需求不僅證明了我們產品的質量，也反映了技術發揮越來越重要作用的世界不斷變化的需求。我們對未來的願景是明確的。它繼續高速成長，保持在創新的前沿，並進一步鞏固了我們的市場領導地位。在利害關係人的持續支持和我們團隊的不懈努力下，我們準備好實現這些目標並超越預期。

I'll now turn the call back to JD to facilitate the Q&A and preselected questions we have received from investors.

現在我將把電話轉回京東，以方便我們從投資者那裡收到的問答和預選問題。

Thank you, Kevin. The following questions were submitted from shareholders and interested parties. Kevin, with the record-breaking revenue this quarter, largely driven by international orders, particularly from the North African region, can you elaborate on what factors contributed to this success and whether it is sustainable in the long term?

謝謝你，凱文。股東和利害關係人提出了以下問題。 Kevin，本季營收破紀錄，主要是由國際訂單推動的，特別是來自北非地區的訂單，您能否詳細說明一下是什麼因素促成了這一成功以及它是否具有長期可持續性？

There are multiple factors contributing to our growing success. Speaking for BolaWrap in both the domestic and the international markets, there's a commonality. Agencies, law enforcement, political leaders, and all of society are looking for solutions to bridge communities with those charge to protect them. Looking back at the pandemic, looking back at high-profile negative situations, we've had civil unrest. We've had geopolitical events that have changed policy and perception.

有多種因素促成我們不斷取得成功。對 BolaWrap 來說，國內和國際市場都有一個共同點。各機構、執法部門、政治領袖和全社會都在尋找解決方案，在社區與那些被指控者之間架起橋樑，以保護他們。回顧這場大流行病，回顧備受矚目的負面情況，我們經歷過內亂。我們經歷了改變政策和看法的地緣政治事件。

Everyone's looking for a solution to lower use of force, be able to deescalate situations. How do we increase subject safety, mitigate liability, any injury to officer, liability to the agency, to the municipality, and BolaWrap is really the answer that everyone is seeking. It's the outcome that everyone is seeking. And we see this in the US, and we see this in every country around the world. So demand is growing and it's our job at Wrap Technologies and meet that demand.

每個人都在尋找減少使用武力、緩和局勢的解決方案。我們如何提高受試者安全，減輕責任，對官員的任何傷害，對機構、市政當局的責任，BolaWrap 確實是每個人都在尋求的答案。這是每個人都在尋求的結果。我們在美國看到了這一點，在世界各地的每個國家也看到了這一點。因此，需求不斷成長，滿足這項需求就是 Wrap Technologies 的工作。

From the standpoint of our new body camera platform, we live in a video world now. It's the consensus of most of public safety that every agency will be required to wear body camera in the next five years, at least that that did the consensus within the US market. Internationally, we're seeing many countries that have felt they could not afford a body-worn camera solution or the process is too complex or the upload ability might not work within that geographic territory. We solve those issues. Our solution is infinitely scalable. It's openly integrated, and it's affordable for agencies, allowing them to be able to move forward. With our VR training solution, studies show that VR learners are 4 times faster. They're more comfortable; they retain at higher levels.

從我們新的隨身相機平台的角度來看，我們現在生活在一個視訊世界中。大多數公共安全部門的共識是，未來五年內每個機構都將被要求佩戴隨身攝影機，至少在美國市場上是這樣的。在國際上，我們看到許多國家認為他們買不起隨身相機解決方案，或者流程太複雜，或者上傳能力可能無法在該地理區域內使用。我們解決這些問題。我們的解決方案是無限可擴展的。它是公開整合的，並且機構負擔得起，使他們能夠繼續前進。研究表明，借助我們的 VR 培訓解決方案，VR 學習者的速度提高了 4 倍。他們更舒服；他們保留在更高的水平。

With Wrap Reality, we've created a new content at extraordinary levels. We're putting new scenarios out roughly every month. Recent scenarios, additions deal with the unhoomed, with LBO identification, with command control, showing that we listen to our partner agencies, and we provide enable content at the fastest possible levels. So we're reaching out. We're meeting the demand and where our customers are. So to raise the question, absolutely. We are sustainably positioned to meet whatever the growth cycle is, and that's the excitement within Wrap Technologies right now.

透過 Wrap Reality，我們創造了非凡水準的新內容。我們大約每個月都會推出新的場景。最近的場景，新增內容涉及未受約束的人員、槓桿收購識別和命令控制，這表明我們聽取了合作夥伴機構的意見，並且我們以盡可能快的速度提供支援內容。所以我們正在伸出援手。我們正在滿足需求以及我們的客戶所在的位置。所以提出這個問題，絕對是。我們能夠可持續地滿足任何成長週期，這就是 Wrap Technologies 目前令人興奮的地方。

Thank you, Kevin. Additionally, how has the integration of Wrap Intrensic impacted the company's operational efficiency, and what tangible benefits can shareholders expect from this acquisition?

謝謝你，凱文。此外，Wrap Intrensic 的整合對公司的營運效率有何影響？

It's provided a major impact. The acquisition of Intrensic really solidifies Wrap Technologies as a solutions provider. Now, we have the ability to provide a suite of products packaged together so that we become a budgetary item for each agency. We have a nonlethal solution with BolaWrap. We have a world-class VR training solution with Wrap Reality. And now we have a body camera platform.

它產生了重大影響。收購 Intrensic 確實鞏固了 Wrap Technologies 作為解決方案提供者的地位。現在，我們有能力提供一套打包在一起的產品，使我們成為每個機構的預算項目。我們有 BolaWrap 的非致命解決方案。我們擁有世界一流的 Wrap Reality VR 培訓解決方案。現在我們有了一個隨身相機平台。

Intrensic, with our evidence on cloud solution, it's a cloud-based platform that allows us to be able to infinitely scale. Its digital evidence, its case management, its incident management. So it provides that for all of law enforcement. What's different about Intrensic is that we can do mobile upload, we do video optimization. We're very open source. And then agencies using have one platform with their computer-aided dispatch or their RMS. We're integrating those platforms so we're not that proprietary where -- it allows the agency to be able to ship into move.

Intrensic，根據我們對雲端解決方案的證據，它是一個基於雲端的平台，使我們能夠無限擴展。它的數位證據、案件管理、事件管理。因此它為所有執法部門提供了這一點。 Intrensic的不同之處在於我們可以做行動上傳，我們做影片優化。我們非常開源。然後，各機構使用一個有電腦輔助調度或 RMS 的平台。我們正在整合這些平台，因此我們不是那麼專有——它允許該機構能夠將其交付使用。

It also opens up many additional sales verticals. We think about Intrensic with schools, with universities, with hospitals, with utility workers. Those are just a few. Currently, we sell body-worn cameras into the cannabis industry for security and deliveries. We have our camera platform, operating the mining industry.

它還開闢了許多額外的銷售垂直領域。我們將 Intrensic 與學校、大學、醫院和公用事業工人一起考慮。這些只是少數。目前，我們向大麻產業銷售隨身攝影機，用於安全和送貨。我們有我們的相機平台，經營採礦業。

Yes, body cameras are becoming mandated in public safety, but there's so many other verticals and possibilities that allow us to be able to operate with that. And yes, all of these revenue solutions are reoccurring. So it's a reoccurring revenue model that we all want to see, and we sell solutions. We have the ability to expand Wrap Technologies as a solution provider, not just BolaWrap. BolaWrap is our core technology at this point. We're continuing to seek other revenue opportunities, and that's the advantage and certainly, things that become opened up with the acquisition of Intrensic.

是的，執法記錄器在公共安全中已成為強制要求，但還有許多其他垂直領域和可能性使我們能夠對此進行操作。是的，所有這些收入解決方案都在重複出現。因此，這是我們都希望看到的經常性收入模式，我們銷售解決方案。我們有能力將 Wrap Technologies 擴展為解決方案提供商，而不僅僅是 BolaWrap。 BolaWrap 是我們目前的核心技術。我們正在繼續尋求其他收入機會，這就是優勢，當然，也是收購 Intrensic 後所帶來的機會。

Thank you, Kevin. For Kevin as well. The company has forecasted positive growth for the fourth quarter and into 2024. What specific indicators should shareholders look for that will signify that the company is on track to meet these projections?

謝謝你，凱文。對於凱文也是如此。該公司預計第四季和 2024 年將實現正成長。

I mentioned earlier factors that are driving revenue growth. I feel very positive for our domestic and the international demand now for our suite of products. Without expanding specifically, we are experiencing substantial pipeline growth for each of our product sets, in particular, on the international front as well as some high-value targets domestically. So we've built a sales team. We continue to modify our sales operation to be able to expand and grow.

我之前提到了推動營收成長的因素。我對國內和國際現在對我們的產品套件的需求感到非常積極。在不具體擴張的情況下，我們的每一種產品系列都在經歷大幅的管道成長，特別是在國際方面以及國內的一些高價值目標。所以我們建立了一個銷售團隊。我們不斷修改我們的銷售業務，以便能夠擴大和發展。

Our model is a bit different now that we're operating with high-value partners out there and aligning those with our inside team, with their outside team, with our customer success team and so beginning to click on all cylinders and you see that. And you see that building within our pipeline that combine with this demand for our product.

我們的模式有點不同，現在我們正在與高價值合作夥伴合作，並將這些合作夥伴與我們的內部團隊、他們的外部團隊、我們的客戶成功團隊保持一致，因此開始全力以赴，你會看到這一點。您將看到我們的管道中的構建與我們產品的這種需求相結合。

When you think about markets worldwide, we're all looking for that solution, that outcome, and that's what we sell. We're selling that outcome with BolaWrap. We're all looking for way to deescalate situations, again, to lowered uses of force, to bridge a community back to law enforcement. And we do that by providing our technology. It's something that's very unique in the market. We truly don't have competition in that remote restraint business. It's just building the understanding of the market and what our technology is and then driving those opportunities. And that's exactly what we're doing. And that's why we're seeing that substantial pipeline growth.

當你考慮全球市場時，我們都在尋找那種解決方案、那種結果，而這就是我們所銷售的產品。我們透過 BolaWrap 出售這一成果。我們都在尋找方法來緩和局勢，再次減少使用武力，將社區與執法部門連結起來。我們透過提供我們的技術來做到這一點。這是市場上非常獨特的東西。我們在遠端約束業務方面確實沒有競爭。這只是建立對市場和我們的技術的理解，然後推動這些機會。這正是我們正在做的事情。這就是我們看到管道大幅增長的原因。

So very bullish about what our opportunities are. There's a lot of excitement. Everyone can sense that and that we're very much, I believe, at a tipping point with Technologies.

因此非常看好我們的機會。有很多興奮。每個人都能感覺到這一點，我相信我們正處於科技的轉捩點。

Thank you, Kevin. This question is for Chris. Chris, considering the increase in SG&A expenses due to one-time items, what measures are being taken to ensure that operational costs remain in check without compromising strategic growth?

謝謝你，凱文。這個問題是問克里斯的。 Chris，考慮到一次性專案導致 SG&A 費用增加，正在採取哪些措施來確保營運成本在不影響策略成長的情況下得到控制？

Yeah, absolutely. So when we look at 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.

是的，絕對是。因此，當我們審視整體成本結構時，我們在過去幾個月（實際上從四月開始，甚至在那之前）做了很多工作，以減少我們的整體成本足跡，減少我們未來的營運支出。從這個角度來看，研發方面都變得更加嚴格，但主要是SG&A方面。所以我們將繼續這樣做。

We'll continue to hold costs down. We think there's ample opportunity for revenue growth at the cost structure we're at. In the third quarter -- and second quarter, unfortunately -- we had some changes in management, which 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 and versus over the life of the contracts.

我們將繼續壓低成本。我們認為，以我們目前的成本結構來看，收入成長有充足的機會。不幸的是，在第三季和第二季度，我們的管理階層發生了一些變化，這對第三季的遣散費產生了一些影響。當然，我們收購了 Intrensic，這是一次很棒的收購。我們進行了首選的融資交易，不幸的是，其中一些成本只是在一個時期內按照公認會計原則（GAAP）支出，而不是在合約的整個生命週期內支出。

So with that, that's why we had some increased costs. We expect that to not continue 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 and in years, we won't see some increases as we add staff and really trying to fulfill for a market perspective. But the main focus here is revenue and then just keeping costs under control.

因此，這就是我們成本增加的原因。我們預計這一數字不會繼續大幅下降。事實上，我們將保持嚴格的控制並真正監控成長，並在任何成本發生之前讓收入稍微成長。更不用說未來幾年，隨著我們增加員工並真正努力滿足市場需求，我們不會看到任何成長。但這裡的主要焦點是收入，然後是控製成本。

Thank you, Chris. 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.

謝謝你，克里斯。我們的電話問答部分到此結束。感謝您今天加入我們 Wrap Technologies 的 2023 年第三季財報電話會議。如果您有任何其他問題，請透過我們的網站 ir.wrap.com 與我們聯絡。您現在可以斷開連線。