Good afternoon, and welcome to the Wrap Technologies Fourth Quarter 2021 Earnings Conference Call. My name is Paul Manley and I'm Vice President of Investor Relations. Today, we'll provide a report on our progress and performance during the fourth quarter and full year and an update on our strategy and the executive search process. Joining me on the call today are Wayne Walker, Chairman of our Board of Directors and Jim Barnes, our Chief Financial Officer. I'd like to take a moment now to remind you that certain statements made during the call today constitute forward-looking statements made to pursuant within the meaning of the Safe Harbor provisions of the Private Securities and Litigation Act of 1995, as amended. 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 press release and in our filings with the SEC. The forward-looking statements made today are as of the date of this call, and we do not undertake any obligation to update the forward-looking statements. With that I'd like to turn the call over to you, Wayne.

Thank you, Paul. And good afternoon, everyone. I want to start by thanking our entire team at Wrap to helping the organization take a significant step forward during fiscal year 2021. We invested heavily in research and development to increase innovation, to expand our product portfolio, and lay a foundation for long-term value creation. Perhaps the biggest output of the year was the fourth quarter introduction of our next generation BolaWrap 150, which is the first upgrade in our original BolaWrap 100 device. The launch of the BolaWrap 150 was an important achievement for us and assign that Wrap is executing and maturing as an enterprise. Thanks to intense innovation, we enhanced many features based on feedback from law enforcement officers using our products in the field. The updates we applied to the BolaWrap 150 include; one, switching to electronic development and deployment from mechanical; two, reducing discharge steps down to two steps from three; three, incorporating an LED indicator to indicate when a device is ready; four, increasing battery life and power retention; five, improving durability and water resistance; and six, making it smaller and lighter with an enhanced grip. We are excited about the level of engagement and interest in the BolaWrap 150. And we believe many customers held off on orders in recent months awaiting this next generation. We will talk more about customer demand in a few moments. As many of you know, our other main product is WRAP Reality. We continue to raise awareness for the product during Q4, including across domestic and international markets. The WRAP Reality training platform is very comprehensive, and we feel it can help us make virtual reality a new trading tool for law enforcement. To demonstrate the benefits to prospective customers, we have been presenting an interactive simulation-based learning…

Thanks, Wayne. Good afternoon, everyone. I'll move straight into discussing the financial highlights for 2021 and the fourth quarter. First, we generated record quarterly revenue of 2.4 million in the fourth quarter of 2021 that represented 73% growth over Q4 2020. Revenues for the full year were 7.7 million a 96% increase over revenues of 3.9 million in 2020. International revenues represented 60% of 2021 revenues compared to 64% for 2020. Domestic revenues grew by 120% over the prior year with positive momentum driven in part by BolaWrap success stories documented on bodycam footage. While market penetration is still small, with significant room for growth in a larger addressable market, we believe BolaWrap, and our related virtual reality training product is making and can continue to make a difference in modern, safer policing. International revenues grew by 83% in 2021 but we believe growth was negatively impacted by pandemic-related travel restrictions severely restricting our ability to demo and train distributors and customers in 2020 and 2021. International pandemic-related restrictions are lessening in 2022, but it may take time to schedule and build momentum. We also cannot predict at this time, the impact recent geopolitical conflicts and sanctions will have on our international operations. We have consistently flagged that our revenue growth could be lumpy as we bounce pandemic travel restrictions and limitations and now face uncertainties related to international conflicts. Our international business tends to be large national law enforcement agencies as the end-user and they are especially sensitive to geopolitical events. We are focused on managing our business for continued growth, especially with the late 2021 launch of the new BolaWrap 150. Our gross margin for the fourth quarter was 30%, compared to 33% for Q4 of 2020. The reduced margin was primarily the result of product mix from…

In the past few months have obviously been a period of change in transition at Wrap but amiss the uncertainty. Our team has maintained its focus and produce strong results. We also now have clear priorities for the early part of fiscal year 2022. One, identifying a highly qualified Chief Executive Officer; two, adding new talent to our executive leadership team; three, empowering new management to develop and put out a clear strategic plan; four, shifting our emphasis from intense R&D to sales and distribution of the BolaWrap 150; and five, expanding training programs and relationships across domestic and international markets. We look forward to provide updates on these priorities in the coming weeks and months. With respect to our outlook, we expect to achieve top-line growth in fiscal 2022. We feel like there's a strong pent-up demand for the BolaWrap 150. However, geopolitical headwinds, and supply chain issues can make quarterly sales choppier than we otherwise would like. Bigger picture and in closing, we are incredibly optimistic about Wrap's long-term potential now that the Board has assessed the company's strategy is start a search for a new CEO. We firmly believe that the right growth focus plan and the right management team can help Wrap be an increasingly important player in our $60 billion addressable market. The steps we're now taking will hopefully be the catalyst in strong value creation quarters and years down the road. Thank you for your time today and for your ongoing interest in Wrap.

Thank you, Wayne, and thank you everyone for joining our call today. Due to our CEO transition, we will not be doing a formal Q&A session this quarter. If you do have any follow-up questions, please do not hesitate to email me at pmanley@wrap.com and I will respond in a timely manner. Have a great evening.