Wrap Technologies, Inc. has entered the third quarter of 2026 with international orders totaling approximately $1.2 million from customers in Brazil and India, providing an early commercial foundation for the period. The orders, placed by distributors on behalf of two public safety agencies in Brazil and an additional distributor in India, underscore continued adoption of the BolaWrap 150 and reflect growing worldwide demand for the company’s non-lethal public safety technologies. Management believes the repeat purchasing activity indicates customers are moving beyond initial evaluations to expand deployments following operational experience with the product.

Landmark ATF Ruling Removes Regulatory Barrier

On June 15, 2026, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) issued Ruling 2026-2, formally classifying the BolaWrap 150 as an instrument of restraint rather than a firearm or an "any other weapon" (AOW). This ruling supersedes prior ATF classifications and, in management’s view, removes a longstanding federal classification that previously complicated procurement, distribution, and adoption in certain markets. Following the ruling, WRAP has experienced increased interest from both domestic and international customers, which management believes could represent an important catalyst for future adoption.

International Commercial Momentum

Brazil has emerged as one of WRAP’s fastest-growing international markets, with recent follow-on orders supporting broader deployment across multiple public safety agencies. In India, a distributor order booked to open the third quarter establishes a commercial foothold in one of the world’s largest public safety markets. WRAP continues to build its international channel through experienced regional partners that provide localized sales, training, deployment, and long-term customer support.

2026 Growth Outlook

Wrap Technologies reaffirmed its previously stated target of approximately 100% year-over-year revenue growth in 2026. This outlook reflects management’s current expectations regarding international adoption, repeat customer activity, improving regulatory conditions, and a growing commercial pipeline.

"We are entering the third quarter with meaningful commercial momentum already in place," said Scot Cohen, Chief Executive Officer of WRAP. "Opening the quarter with significant international orders is encouraging on its own, but what matters more is what those orders represent — repeat customers expanding their deployments and new markets adopting our technology, independent of the additional interest generated by the ATF’s decision."

Wrap Technologies announced that the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has issued Ruling 2026-2, formally classifying the BolaWrap 150 as an instrument of restraint rather than a firearm or weapon under federal law. Effective July 2, 2026, the ruling determines that the device is not a "firearm" under the Gun Control Act and not an "any other weapon" under the National Firearms Act. This reclassification removes federal regulatory ambiguity that previously complicated procurement across multiple market segments, potentially unlocking an estimated $3 billion in global addressable spend.

The ruling, signed by ATF Director Robert Cekada, supersedes any prior ATF classification of the BolaWrap 150. It grounds the decision in the U.S. Supreme Court's 2025 decision in Bondi v. VanDerStok. By affirming that the device is not an instrument of offensive or defensive combat, the ATF has categorized it as "merely an instrument of restraint." This distinction is expected to significantly reduce the sales cycle for both domestic and international buyers by eliminating weapons-compliance burdens and Federal Firearms License (FFL) dealer requirements.

Procurement Categories and Market Impact

The reclassification opens four primary procurement categories that were previously structurally inaccessible or difficult to navigate. The company projects that the removal of regulatory friction will compress the sales process from months to weeks.

Operational and Financial Implications

Under the new restraint classification, the procurement sequence is expected to compress to standard equipment evaluation and purchase order issuance through safety-equipment budget lines. Wrap Technologies projects the following operational changes:

• Domestic sales cycle: Reduced from 3–9 months to 4–8 weeks.
• International sales cycle: Reduced from 4–6 months to as little as 4–8 weeks.
• Addressable opportunity: An estimated $3 billion or more in global addressable spend.

Scot Cohen, Founder & CEO of Wrap Technologies, stated that the ruling confirms the device's status as a restraint tool designed to give officers control before an encounter escalates. He believes the decision removes a federal classification framework that complicated procurement and may improve the company's ability to compete in previously inaccessible segments.