0001437749-23-031987 | 10-Q | XBRL Viewer

Subsequent Events [Text Block]

16. SUBSEQUENT EVENTS

Appointment of Executive Chairman

On October 12, 2023, the Board of Directors (the “Board”) appointed Scot Cohen, the Company’s current Chairman of the Board, to the position of Executive Chairman, effective October 12, 2023 (the “Effective Date”). Mr. Cohen cofounded the Company in March 2016, and has previously served as the Executive Chairman of the Company from July 2017 until June 2021.

In connection with Mr. Cohen’s appointment as Executive Chairman, the Company and Mr. Cohen entered into an agreement on October 12, 2023 (the “Agreement”). Pursuant to the Agreement, unless earlier terminated pursuant to the terms therein, Mr. Cohen will serve as the Company’s Executive Chairman for an initial term of two years from the effective date of his appointment. As compensation for Mr. Cohen’s services to the Company, the Agreement entitles Mr. Cohen to an annualized base salary of $200,000 (the “Base Salary”) and eligibility to participate in customary benefits offered to other executives of the Company.

The Agreement further provides for:

●

A grant of that number of restricted shares (“RSAs”) of the Company’s Common Stock equal to $675,000 divided by $1.40, representing the closing price of Common Stock as reported on the Nasdaq Capital Market on October 12, 2023 (the “Closing Price”) for the date of grant (the “Grant Date”), which RSAs are subject to certain vesting conditions based on the achievement of certain targets based on total market capitalization of the Company.

●

A nonqualified option to purchase up to that number of shares of Common Stock with a Grant Date fair value equal to $675,000 divided by the Closing Price (the “Option”), an exercise price equal to the Closing Price, and a term of 10 years, which Option vests based on Mr. Cohen’s continued employment with the Company and the achievement of certain budgeted revenue targets established by the Board; and

●

A nonqualified option to purchase up to 2.25% of the number of shares of the Company’s Common Stock that are issued and outstanding (determined on a fully-diluted basis, including, without limitation, any shares issuable upon the conversion or exercise of any outstanding warrants or preferred stock) as of the Effective Date (the “Performance Option”), at an exercise price equal to the Closing Price, and a term of 10 years, which Performance Option vests, subject to Mr. Cohen’s continued employment with the Company through each vesting date, in accordance with the same vesting conditions as provided for in the RSAs.

The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by the full text of the Agreement, a copy of which is filed as Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on October 16, 2023.

Resignations of Michael Parris and Wayne Walker

Effective October 11, 2023 (the “Mr. Parris Resignation Date”), and October 12, 2023 (the “Mr. Walker Resignation Date”), Michael Parris and Wayne Walker, respectively, resigned from their positions as members of the Board. Neither director’s decision to resign was the result of any dispute or disagreements with the Company on any matter relating to the Company’s operations, policies or practices.

Appointment of Rajiv Srinivasan and Timothy Szymanski

On October 12, 2023, Rajiv Srinivasan and Timothy Szymanski were appointed to serve as members of the Board to fill the vacancies created as a result of the resignations of Messrs. Parris and Walker, until the Company’s next annual meeting of stockholders or until their respective successors are duly elected and qualified.

Miami Office Lease

The Company has entered into an 89-month lease for 4,487 square feet of office space in Miami, Florida, starting from November 1, 2023. This leasing arrangement aims to enhance the Company's footprint on the East Coast and in international markets.

In accordance with the Subsequent Events Topic of the FASB ASC 855, we have evaluated subsequent events through the filing date and determined that no additional subsequent events occurred that were reasonably expected to impact the consolidated condensed financial statements presented herein.

Note 9 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	Jul. 29, 2023	Jul. 03, 2023	Sep. 30, 2023	Dec. 31, 2022
Common Stock, Shares Authorized			150,000,000	150,000,000
Preferred Stock, Shares Authorized			5,000,000	5,000,000
Preferred Stock, Par or Stated Value Per Share			$ 0.0001	$ 0.0001
Common Stock, Par or Stated Value Per Share	$ 0.0001		0.0001	$ 0.0001
Proceeds from Issuance of Convertible Preferred Stock	$ 2,036
Dividends Payable, Amount Per Share (in dollars per share)			$ 193
Series A Preferred Stock [Member] \| Registered Direct Offering [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Stock Issued During Period, Shares, New Issues	10,000	10,000
Preferred Stock, Convertible, Conversion Price	$ 1.45	$ 1.45
Preferred Stock, Dividend Rate, Percentage	8.00%	8.00%
Preferred Stock, Stated Value Per Share	$ 1,000
Preferred Stock, Convertible, Shares Issuable	6,896,553

Note 12 - Commitments and Contingencies (Details Textual) - USD ($)		3 Months Ended		9 Months Ended
	Nov. 22, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2016
Contractual Obligation		$ 1,690,000		$ 1,690,000
Professional Services and Technology Acquisition Agreement [Member]
Payments to Acquire Businesses, Gross	$ 700,000
Related Party Technology License Agreement [Member] \| Syzygy Licensing LLC [Member]
Royalty Payments, Percentage of Product Revenue						4.00%
Maximum Royalties to Be Paid Under Agreement						$ 1,000
Royalty Expense		122,000	$ 61,000	185,000	$ 147,000
Royalty Guarantees, Commitments, Amount		$ 95,000		$ 95,000

Note 8 - Warrants

9 Months Ended

Sep. 30, 2023

Warrants [Text Block]

8. WARRANTS

Note 3 - Financial Instruments - Instruments by Significant Investment Category (Details) - Fair Value, Inputs, Level 1 [Member] - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Adjusted Cost	$ 10,000	$ 13,849
Unrealized Gains	0	100
Unrealized Losses	0	0
Market Value	10,000	13,949
US Treasury Securities in Short-term Investments [Member]
Adjusted Cost		9,849
Unrealized Gains		100
Unrealized Losses		0
Market Value		9,949
Certificates of Deposit [Member]
Adjusted Cost	10,000	4,000
Unrealized Gains	0	0
Unrealized Losses	0	0
Market Value	$ 10,000	$ 4,000

Note 10 - Share-based Compensation - Allocation of Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-Based Payment Arrangement, Expense	$ (202)	$ 872	$ 1,648	$ 2,628
Selling, General and Administrative Expenses [Member]
Share-Based Payment Arrangement, Expense	(149)	700	1,404	2,180
Research and Development Expense [Member]
Share-Based Payment Arrangement, Expense	$ (53)	$ 172	$ 244	$ 448

Note 15 - Business Combination - Schedule of Business Combination (Details) - USD ($)	Aug. 09, 2023	Sep. 30, 2023	Dec. 31, 2022
Goodwill		$ 1,611,000	$ 0
Intrensic, LLC [Member]
Cash and cash equivalents	$ 3,000
Accounts receivable	90,000
Inventory	61,000
Net property, plant and equipment	0
Goodwill	1,611,000
Total assets	2,495,000
Liabilities	3,000
Equity	2,492,000
Total liabilities and equity	2,495,000
Payments to Acquire Businesses, Gross	553,588
Equity	1,938,000
Liabilities assumed	3,000
Total	2,495,000
Intrensic, LLC [Member] \| Technology-Based Intangible Assets [Member]
Intangible assets	490,000
Intrensic, LLC [Member] \| Customer Relationships [Member]
Intangible assets	160,000
Intrensic, LLC [Member] \| Trademarks and Trade Names [Member]
Intangible assets	$ 80,000

Note 7 - Accounts Payable and Accrued Liabilities

9 Months Ended

Sep. 30, 2023

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

7. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable includes $122 and $127 due to related party Syzygy Licensing, LLC (“Syzygy”) as of September 30, 2023, and December 31, 2022, respectively. See Note 11 for additional information on this related party.

Accrued liabilities consist of the following:

	September 30, 2023		December 31, 2022
Patent and legal costs	$	61	$	135
Accrued compensation		786		1,100
Warranty costs		109		125
Taxes and other		172		103
Total	$	1,128	$	1,463

Accrued compensation includes $139 and $1,022 in employee bonuses and commissions payable at September 30, 2023 and December 31, 2022, respectively.

Changes in our estimated product warranty costs were as follows:

	Nine Months Ended September 30,
	2023			2022
Balance, beginning of period	$	125		$	96
Warranty settlements		(8	)		(63	)
Release of warranty provision		(8	)		55
Balance, end of period	$	109		$	88

Note 13 - Related Party Transactions (Details Textual) - USD ($)			3 Months Ended	9 Months Ended
	Aug. 09, 2023	Jun. 29, 2023	Sep. 30, 2023	Sep. 30, 2023	Sep. 30, 2022
Related Party Transaction, Amounts of Transaction			$ 4,500	$ 13,500
Intrensic, LLC [Member]
Business Acquisition, Percentage of Voting Interests Acquired	100.00%
Payments to Acquire Businesses, Gross	$ 553,588
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	1,250,000
Mr. Elwood Norris [Member]
Reimbursement of Expenses to Related Party, Monthly Amount				1,500
Consulting Fees to Related Party, Monthly Amount				7,500
Mr. Elwood Norris [Member] \| Consultant [Member]
Related Party Transaction, Amounts of Transaction			$ 22,500	$ 67,500	$ 67,500
Executive Chairman [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		2,068,966
Proceeds from Issuance or Sale of Equity		$ 3,000,000
Executive Chairman [Member] \| Series A Preferred Stock [Member]
Stock Issued During Period, Shares, New Issues		3,000

Note 1 - Organization, Summary of Significant Accounting Policies and Recent Developments

9 Months Ended

Sep. 30, 2023

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

1. ORGANIZATION, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT DEVELOPMENTS

Organization and Business Description

Wrap Technologies, Inc., a Delaware corporation (the “Company”, “we”, “us”, and “our”), is a publicly traded company with our Common Stock, par value $0.0001 per share (“Common Stock”), listed on the Nasdaq Capital Market (“Nasdaq”) under the trading symbol “WRAP”. The Company is a developer and supplier of public safety products and training services for law enforcement and security personnel. The Company’s primary product is the BolaWrap® remote restraint device. The principal markets for the Company’s proprietary products and services are in North and South America, Europe, Middle East and Asia.

Basis of Presentation

The Company’s unaudited interim condensed consolidated financial statements included herein have been prepared in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. In management’s opinion, the accompanying financial statements reflect adjustments necessary to present fairly the financial position, results of operations, and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the footnotes. The condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “Annual Report”), as filed with the SEC on March 2, 2023. The accompanying condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated balance sheet at December 31, 2022, contained in the Annual Report. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year.

Where necessary, the prior year’s information has been reclassified to conform to the current year presentation.

Principles of Consolidation

The Company has two wholly owned subsidiaries, Wrap Reality, Inc. formed in December 2020 that sells a virtual reality (“VR”) training system primarily targeting law enforcement agencies and Intrensic, LLC which the Company acquired in August 2023 which specializes in Body Worn Camera and Digital Evidence Management solutions. The consolidated financial statements include the accounts of these subsidiaries after elimination of intercompany transactions and accounts.

Business Combinations

The Company accounts for its business combinations under the provisions of Accounting Standards Codification ("ASC") Topic 805-10, Business Combinations ("ASC 805-10"), which requires that the purchase method of accounting be used for all business combinations. Assets acquired and liabilities assumed, including non-controlling interests, are recorded at the date of acquisition at their respective fair values. The estimated fair value of net assets acquired, including the allocation of the fair value to identifiable assets and liabilities, was determined using established valuation techniques. ASC 805-10 also specifies criteria that intangible assets acquired in a business combination must meet to be recognized and reported apart from goodwill. Goodwill represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in a business combination. Acquisition-related expenses are recognized separately from the business combinations and are expensed as incurred.

The estimated fair value of the acquired intangible assets was determined using a method which reflects the present value of the operating cash flows generated by this asset after taking into account the cost to realize the revenue, and an appropriate discount rate to reflect the time value and risk associated with the invested capital.

Certain adjustments to the assessed fair values of the assets and liabilities made subsequent to the acquisition date, but within the measurement period, which is up to one year, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded in income.

Goodwill

Goodwill represents the difference, if any, between the aggregate consideration paid for an acquisition and the fair values of the underlying net assets and liabilities assumed from an acquired business. Goodwill is not amortized, but instead is tested for impairment. The Company tests goodwill for impairment on an annual basis during the fourth quarter, or more frequently if conditions indicate that such impairment could exist. The Company evaluates qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying value and whether it is necessary to perform goodwill impairment process.

Definite-lived Intangible Assets

Definite-lived intangible assets represent certain trade names, patents, licenses, software, acquired technology and customer relationships. Definite-lived intangible assets are recorded at cost less any accumulated amortization and accumulated impairment losses, if any. Definite-lived intangible assets acquired through the business combination are measured at fair value at the acquisition date. The Company amortizes these acquired definite-lived intangibles assets with a finite life on a straight-line basis, over 6 years for technology; 7 years for customer relationships; and 8 years for trademarks and trade names.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions (e.g., stock-based compensation valuation, allowance for doubtful accounts, valuation of inventory and intangible assets, warranty reserve, accrued expense and recognition and measurement of contingencies) that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenue and expense during the reporting period. Actual results could materially differ from those estimates.

Warrants

The Company accounts for warrants as liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own common shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. The Company accounts for the warrants issued in accordance with the guidance contained in ASC 815-40-15-7C, under which the warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the warrants as liabilities at their fair value and adjusts the warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company’s condensed consolidated statement of operations.

Convertible Preferred Stocks

The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with ASC 480 and ASC 815 to determine if those instruments or embedded components of those instruments qualify as derivatives and are subject to bifurcation accounting. The Company determines that the economic characteristics and risks of the embedded derivative instrument are clearly and closely related to the economic characteristics and risks of the host contract. The convertible instruments are accounted for as a single hybrid instrument. Additionally, the convertible instruments do not have any redemption features that would preclude permanent equity classification in accordance with the guidance contained in ASC 480-10-S99.

The Company issued the Warrants, which are classified as liabilities and measured at fair value on a recurring basis, and Convertible Preferred Stocks in one transaction. The issuance proceeds were allocated by using the with-and-without method. Under this method, The Company first allocated the issuance proceeds to the Warrants based on their initial fair value measurement, and then allocated the remaining proceeds to the Convertible Preferred Stocks.

Loss per Share

Basic loss per share (EPS) is computed by dividing net loss, less any dividends, accretion or decretion, redemption or induced conversion, if any, on our Series A Convertible Preferred Stock, by the weighted average number of shares outstanding during the reported period.

In computing diluted EPS, we adjust the numerator used in the basic EPS computation, subject to anti-dilution requirements, to add back the dividends (declared or cumulative undeclared) applicable to the Series A Convertible Preferred Stock. Such add-back would also include any adjustments to equity in the period to accrete the Series A Convertible Preferred Stock to its redemption price, or recorded upon a redemption or induced conversion, if any. We adjust the denominator used in the basic EPS computation, subject to anti-dilution requirements, to include the dilution from potential shares resulting from the issuance of the Series A Convertible Preferred Stock, restricted stock units, and stock options. Stock options and restricted stock units exercisable or issuable for a total of 2,668,750 and 6,396,277 shares of Common Stock were outstanding at September 30, 2023, and 2022, respectively. These securities are not included in the computation of diluted net loss per common share for the periods presented as their inclusion would be antidilutive due to losses incurred by the Company.

Recent Issued Accounting Guidance

The Company has reviewed recently issued, but not yet effective, accounting pronouncements and does not believe the future adoptions of any such pronouncements will be expected to cause a material impact on its financial condition or the results of operations.

In July 2023, the SEC adopted the final rule under SEC Release No. 33-11216, Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure, requiring disclosure of material cybersecurity incidents on Form 8-K and periodic disclosure of a registrant’s cybersecurity risk management, strategy and governance in annual reports. Regulation S-K Item 6 disclosure requirements under this rule will be effective for us in the fourth quarter of 2023. Incident disclosure requirements in Form 8-K will be effective for us on June 15, 2024. We are still evaluating for any impact on our financial statement disclosures from the adoption of this final rule.

Recent Developments

On August 9, 2023, the Company entered into a Membership Interest Purchase Agreement (the “Purchase Agreement”) with Intrensic, LLC, a Delaware limited liability company (“Intrensic”), and certain members of Intrensic, including Kevin Mullins, the Company’s Chief Executive Officer (collectively, “Sellers”). Under the terms of the Purchase Agreement, the Company agreed to purchase, and Sellers agreed to sell, 100% of the membership interests (the “Membership Interests”) of Intrensic for the following consideration upon the consummation of the sale of the Membership Interests (the “Intrensic Closing”): (i) $553,588 in cash, subject to adjustment based upon the outstanding indebtedness of Intrensic and Intrensic’s working capital as of the Intrensic Closing; and (ii) 1,250,000 shares of Common Stock of the Company (collectively, the “Purchase Price”) (the “Intrensic Acquisition”).

Kevin Mullins, a director of the Company and the Company’s Chief Executive Officer, owns approximately 9.53% of the Membership Interests, and as such, has a financial interest in the Intrensic Acquisition.

Note 11 - Defined Contribution Plan

9 Months Ended

Sep. 30, 2023

Defined Contribution Plan [Text Block]

11. DEFINED CONTRIBUTION PLAN

The Company has a defined contribution savings plan for all eligible U.S. employees established under the provisions of Section 401(k) of the Internal Revenue Code. This plan was formed on January 1, 2022. Eligible employees may contribute a percentage of their salary subject to certain limitations. The Company’s contributions for each of the three and nine months ended September 30, 2023, and year ended December 31, 2022, was $0.

Note 15 - Business Combination (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

Cash and cash equivalents	$	3
Accounts receivable		90
Inventory		61
Net property, plant and equipment		-
Technology		490
Customer relationships (included in Intangibles)		160
Trademarks and trade names (included in Intangibles)		80
Goodwill		1,611
Total assets	$	2,495

Liabilities		3
Equity		2,492
Total liabilities and equity	$	2,495

Purchase Price:
Cash		554
Equity		1,938
Liabilities assumed		3
Total	$	2,495

Note 5 - Property and Equipment, Net

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment Disclosure [Text Block]

5. PROPERTY AND EQUIPMENT, NET

Property and equipment consisted of the following:

	September 30, 2023			December 31, 2022
Production and lab equipment	$	536		$	513
Tooling		505			448
Computer equipment		587			531
Furniture, fixtures and improvements		190			181
		1,818			1,673
Accumulated depreciation		(1,285	)		(915	)
Property and equipment, net	$	533		$	758

Depreciation expense was $122 and $358 for the three and nine months ended September 30, 2023, respectively, and $121 and $359 for the three and nine months ended September 30, 2022, respectively.

Note 14 - Major Customers and Related Information - Disaggregation of Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues	$ 3,631	$ 1,701	$ 5,544	$ 4,464
Americas [Member]
Revenues	1,347	1,478	3,225	3,484
Europe, Middle East and Africa [Member]
Revenues	2,284	220	2,320	435
Asia Pacific [Member]
Revenues	$ 0	$ 3	$ (1)	$ 545

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 235
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479557/942-235-S99-1

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Cash Flows From Operating Activities:
Net loss	$ (2,783)	$ (3,865)	$ (11,819)	$ (14,082)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			675	574
Share-based compensation			1,648	2,628
Warranty provision			(8)	55
Change in fair value of warrant liabilities	117	(0)	117	0
Non-cash lease expense			80	75
Provision for doubtful accounts			(48)	61
Accounts receivable			(1,353)	1,576
Inventories			(1,780)	(1,396)
Prepaid expense and other current assets			13	268
Accounts payable			(67)	(834)
Operating lease liability			(80)	(65)
Customer deposits			2	(43)
Accrued liabilities and other			(322)	175
Warranty settlement			(8)	(63)
Deferred revenue			32	35
Net cash used in operating activities			(12,918)	(11,036)
Changes in assets and liabilities:
Provision for doubtful accounts			(48)	61
Cash Flows From Investing Activities:
Purchase of short-term investments			(6,145)	(23,119)
Proceeds from maturities of short-term investments			10,000	33,300
Capital expenditures for property and equipment			(133)	(201)
Net cash paid for acquisition of Intrensic			(551)	0
Cash outlay for deposits			(66)	(3)
Net cash provided by investing activities			2,768	9,844
Cash Flows From Financing Activities:
Proceeds from exercise of stock options			0	83
Proceeds from issuance of warrants and convertible preferred stock, net of offering costs			9,754	0
Net cash provided by financing activities			9,754	83
Net decrease in cash and cash equivalents			(396)	(1,109)
Cash and cash equivalents, beginning of period			5,330	4,937	$ 4,937
Change in unrealized gain on short-term investments			(94)	62
Net assets acquired from acquisition			147	0
Warrant liabilities			(7,834)	0
Dividends on convertible preferred stock	(193)		(193)	0
Right-of-use asset and liability recorded during period			0	260
Cash and cash equivalents, end of period	4,934	3,828	4,934	3,828	5,330
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations	$ 4,934	$ 3,828	4,934	3,828	$ 5,330
Convertible Preferred Stock [Member]
Cash Flows From Financing Activities:
Issuance of common stock for acquisition			(2,036)	0
Intrensic, LLC [Member]
Cash Flows From Financing Activities:
Issuance of common stock for acquisition			(1,938)	0
Patents and Trademarks [Member]
Cash Flows From Investing Activities:
Investment in patents and trademarks			(277)	(133)
Intangibles Other than Patents and Trademarks [Member]
Cash Flows From Investing Activities:
Investment in patents and trademarks			$ (60)	$ 0

Note 2 - Revenue and Product Costs (Tables)

9 Months Ended

Sep. 30, 2023

Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]

	Customer		Deferred
	Deposits		Revenue
Balance at January 1, 2023	$	-	$	333
Additions, net		2		229
Transfer to revenue		-		(197	)
Balance at September 30, 2023	$	2	$	365
Current portion	$	2	$	189
Long-term portion	$	-	$	176

Note 6 - Intangible Assets and Goodwill - Schedule of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Balance	$ 0
Acquired goodwill	1,611
Balance	$ 1,611

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Note 2 - Revenue and Product Costs

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Text Block]

2. REVENUE AND PRODUCT COSTS

Revenue consists of product revenue and other revenue. Product sales include BolaWrap products and accessories. Other revenue includes VR revenue, service, training and shipping revenue.

Periodically, certain customers request bill and hold transactions for future delivery as scheduled and designated by them. In such cases, revenue is not recognized until after control, title and risk of ownership has transferred which is generally when the customer has requested such transaction under normal billing and payment terms and has been notified that the product (i) has been completed according to customer specifications, (ii) has passed quality control inspections, and (iii) has been tagged and packed for shipment, separated from other inventory and ready for physical transfer to the customer. The value associated with custodial storage services is deemed immaterial in the context of such contracts and in total, and accordingly, none of the transaction price is allocated to such service.

The timing of revenue recognition may differ from the timing of invoicing to customers. The Company generally has an unconditional right to consideration when customers are invoiced, and a receivable is recorded. A contract asset is recognized when revenue is recognized prior to invoicing, or a contract liability (deferred revenue) when revenue will be recognized subsequent to invoicing. The Company recognizes an asset if there are incremental costs of obtaining a contract with a customer such as commissions. These costs are ascribed to or allocated to the underlying performance obligations in the contract. The Company may receive consideration, per terms of a contract, from customers prior to transferring goods to the customer. The Company records customer deposits as a contract liability. Additionally, the Company may receive payments, most typically for service and warranty contracts, at the onset of the contract and before the services have been performed. In such instances, a deferred revenue liability is recorded. The Company recognizes these contract liabilities as revenue after all revenue recognition criteria are met. The table below details the activity in our contract liabilities during the nine months ended September 30, 2023.

	Customer		Deferred
	Deposits		Revenue
Balance at January 1, 2023	$	-	$	333
Additions, net		2		229
Transfer to revenue		-		(197	)
Balance at September 30, 2023	$	2	$	365
Current portion	$	2	$	189
Long-term portion	$	-	$	176

At September 30, 2023, the Company’s deferred revenue of $365 consisted of $199 related to VR, $6 related to training and $160 related to BolaWrap extended warranties and services. At December 31, 2022, the Company’s deferred revenue of $333 consisted of $198 related to VR, $11 related to training and $124 related to BolaWrap extended warranties and services.

Estimated costs for the Company’s standard warranty, generally one-year, are charged to cost of products sold when revenue is recorded for the related product. Royalties are also charged to the cost of products sold.

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
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-URI https://asc.fasb.org//606/tableOfContent

Note 3 - Financial Instruments (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, after Tax	$ 0	$ 73	$ (0)	$ 62

Note 4 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finished goods	$ 2,921	$ 2,293
Work in process	0	0
Raw materials	2,895	1,682
Inventories - net	$ 5,816	$ 3,975

Note 10 - Share-based Compensation

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Text Block]

10. SHARE-BASED COMPENSATION

On March 31, 2017, the Company adopted, and the stockholders approved, the 2017 Stock Incentive Plan (the “Plan”) authorizing 2,000,000 shares of Common Stock for issuance as awards to employees, directors or consultants. In May 2019, the stockholders ratified an increase in the Plan authorizing an additional 2,100,000 shares of Common Stock; in June 2020 ratified an additional 1,900,000 shares of Common Stock; in June 2021 ratified an additional 1,500,000 shares of Common Stock; and in June 2022 ratified an additional 1,500,000 shares of Common Stock; for a total of 9,000,000 shares subject to the Plan. At September 30, 2023, there were 4,438,539 shares of Common Stock remaining available for grant under the Plan.

The Company generally recognizes share-based compensation expense on the grant date and over the period of vesting or period that services will be provided. In April 2023 the Company recognized severance acceleration of $178 of share-based compensation expense resulting from the resignation of the Company’s Chief Executive Officer and Chief Operating Officer due to a reduction in force that resulted in changes in the composition of the executives of the Company. In January 2022 the Company recognized severance acceleration of $242 of share-based compensation expense resulting from the resignation of the Company’s Chief Executive Officer as part of a management transition plan.

Stock Options

The following table summarizes stock option activity for the nine months ended September 30, 2023:

				Weighted Average
	Options on Common Shares			Exercise Price		Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding January 1, 2023		5,491,399		$	3.72		5.96	$	92
Granted		60,000		$	1.34
Exercised		(250	)	$	1.50
Forfeited, cancelled, expired		(3,329,476	)	$	5.54
Outstanding September 30, 2023		2,221,673		$	3.56		7.65	$	10
Exercisable September 30, 2023		1,033,504		$	4.37		7.02	$	-

At September 30, 2023, there were 1,529,275 service-based stock options outstanding, and 692,398 performance-based stock options outstanding, which performance-based stock options were granted in April 2022 to the Company’s former Chief Executive Officer and President, subject to future market capitalization targets. 1,207,698 of the 2,221,673 stock options granted included in the table above were granted in April 2022 outside the Plan as an employment inducement grant but are subject to the terms and conditions of the Plan.

The Company uses the Black-Scholes option pricing model to determine the fair value of service-based options granted. The following table summarizes the assumptions used to compute the fair value of options granted to employees and non-employees:

	For the Nine Months
	Ended September 30,
	2023			2022
Expected stock price volatility		49	%		49	%
Risk-free interest rate		3.64	%		1.17	%
Expected dividend yield		0	%		0	%
Expected life of options		6.66			3.46
Weighted-average fair value of options granted	$	0.55		$	1.25

Estimated volatility is a measure of the amount by which the Company’s stock price is expected to fluctuate each year during the expected life of awards. The Company’s estimated volatility was based on an average of the historical volatility of peer entities whose stock prices were publicly available. The Company’s calculation of estimated volatility is based on historical stock prices of these peer entities over a period equal to the expected life of the awards. The Company uses the historical volatility of peer entities due to the lack of sufficient historical data of its stock price. The Company records forfeitures as they are incurred.

The risk-free interest rate assumption is based upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is appropriate for the term of the options. The dividend yield of zero is based on the fact that the Company has never paid cash dividends and has no present intention to pay cash dividends. The Company calculates the expected life of the options using the Simplified Method for the employee stock options as the Company does not have sufficient historical exercise data.

The Company used the Monte Carlo Simulation Model to value at the grant date the aggregate of 1,614,230 market condition performance options granted in April 2022 to the Company’s former Chief Executive Officer and President. The assumptions used in the Monte Carlo Simulation were stock price on date of grant of $2.89, contract term of 10 years, expected volatility of 49% and risk-free interest rate of 2.9%. Vesting is based on sustained market capitalization of $250 million, $500 million and $1 billion and resulted in implied service periods ranging from approximately 4 to 7 years. At September 30, 2023, 921,832 of the 1,614,230 market condition performance options granted in April 2022 were cancelled.

Stock option expense was $(169) and $399 for the three and nine months ended September 30, 2023, respectively, and $308 and $1,448 for the three and nine months ended September 30, 2022, respectively.

Restricted Stock Units

The Plan provides for the grant of restricted stock units (“RSUs”). RSUs are settled in shares of the Company’s Common Stock as the RSUs become vested. The following table summarizes RSU activity for the nine months ended September 30, 2023:

	Service-Based RSU's			Weighted Average Grant Date Fair Value		Weighted Average Vesting Period (Years)
Unvested at January 1, 2023		922,057		$	2.88		2.11
Granted - service based		686,394		$	1.33
Vested		(862,993	)	$	2.87
Forfeited and cancelled		(298,381	)	$	2.47
Unvested at September 30, 2023		447,077		$	2.00		1.74

RSU expense was $(33) and $1,249 for the three and nine months ended September 30, 2023, respectively, and $564 and $1,180 for the three and nine months ended September 30, 2022, respectively.

Share-Based Compensation Expense

The Company recorded share-based compensation for options and RSUs in its statements of operations for the relevant periods as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2023			2022		2023		2022
Selling, general and administrative	$	(149	)	$	700	$	1,404	$	2,180
Research and development		(53	)		172		244		448
Total share-based expense	$	(202	)	$	872	$	1,648	$	2,628

As of September 30, 2023, total estimated compensation cost of stock options granted and outstanding but not yet vested was $1,168 which is expected to be recognized over the weighted average period of 2.73 years.

As of September 30, 2023, total estimated compensation cost of RSUs granted and outstanding but not yet vested was $757 which is expected to be recognized over the weighted average period of 1.61 years.

Note 10 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended						3 Months Ended		9 Months Ended
	Jun. 30, 2022	Apr. 30, 2022	Jan. 31, 2022	Jun. 30, 2021	Jun. 30, 2020	May 31, 2019	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Mar. 31, 2017
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number							2,221,673		2,221,673		5,491,399
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross									60,000
Share-Based Payment Arrangement, Expense							$ (202)	$ 872	$ 1,648	$ 2,628
Performance Shares [Member] \| Chief Executive Officer and President [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross		1,207,698
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate									0.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term									6 years 7 months 28 days	3 years 5 months 15 days
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate									49.00%	49.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate									3.64%	1.17%
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount							1,168		$ 1,168
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition									2 years 8 months 23 days
Restricted Stock Units (RSUs) [Member]
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount							$ 757		$ 757
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition									1 year 7 months 9 days
The 2017 Stock Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized	9,000,000											2,000,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized	1,500,000			1,500,000	1,900,000	2,100,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant							4,438,539		4,438,539
Share-Based Payment Arrangement, Accelerated Cost		$ 178	$ 242
The 2017 Stock Incentive Plan [Member] \| Service-based Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number							1,529,275		1,529,275
The 2017 Stock Incentive Plan [Member] \| Performance Shares [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number							692,398		692,398
The 2017 Stock Incentive Plan [Member] \| Performance Shares [Member] \| Chief Executive Officer and President [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross		1,614,230					1,614,230
Share Price		$ 2.89
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term		10 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate		49.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		2.90%
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures in Period		921,832
The 2017 Stock Incentive Plan [Member] \| Performance Shares [Member] \| Chief Executive Officer and President [Member] \| Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Requisite Service Period		4 years
The 2017 Stock Incentive Plan [Member] \| Performance Shares [Member] \| Chief Executive Officer and President [Member] \| Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Requisite Service Period		7 years
The 2017 Stock Incentive Plan [Member] \| Performance Shares [Member] \| Chief Executive Officer and President [Member] \| Share-Based Payment Arrangement, Tranche One [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vesting, Sustained Market Capitalization		$ 250,000
The 2017 Stock Incentive Plan [Member] \| Performance Shares [Member] \| Chief Executive Officer and President [Member] \| Share-Based Payment Arrangement, Tranche Two [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vesting, Sustained Market Capitalization		500,000
The 2017 Stock Incentive Plan [Member] \| Performance Shares [Member] \| Chief Executive Officer and President [Member] \| Share-Based Payment Arrangement, Tranche Three [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vesting, Sustained Market Capitalization		$ 1,000,000
The 2017 Stock Incentive Plan [Member] \| Share-Based Payment Arrangement, Option [Member]
Share-Based Payment Arrangement, Expense							$ 169	308	$ 399	$ 1,448
The 2017 Stock Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member]
Share-Based Payment Arrangement, Expense							$ (33)	$ 564	$ 1,249	$ 1,180

Note 6 - Intangible Assets and Goodwill - Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
2023 (9 months)	$ 164
2024	655
2025	650
2026	427
2027	180
Thereafter	840
Total amortizable	$ 2,916	$ 2,225

Note 6 - Intangible Assets and Goodwill (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	September 30, 2023			December 31, 2022
Amortizable intangible assets:
Patents	$	841		$	575
Trademarks		241			150
Purchased software and technology		2,452			1,962
Customer Relationships		160			-
		3,694			2,687
Accumulated amortization		(778	)		(462	)
Total amortizable		2,916			2,225
Indefinite life assets (non-amortizable)		403			344
Total intangible assets, net	$	3,319		$	2,569

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

2023 (3 months)	$	164
2024		655
2025		650
2026		427
2027		180
Thereafter		840
Total estimated amortization expense	$	2,916

Schedule of Goodwill [Table Text Block]

Balance at January 1, 2023	$	-
Acquired goodwill		1,611
Balance at September 30, 2023	$	1,611

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
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-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Dec. 31, 2021	40,851,945
Balance at Dec. 31, 2021	$ 4		$ 91,025	$ (49,759)	$ (6)	$ 41,264
Share-based compensation expense	$ 0		(2,628)	0	0	(2,628)
Dividends on convertible preferred stock						0
Common shares issued upon vesting of restricted stock units (in shares)	218,133
Net loss	$ 0		0	(14,082)	0	(14,082)
Common shares issued upon exercise of stock options (in shares)	55,500
Common shares issued upon exercise of stock options	$ 0		83	0	0	83
Share-based compensation expense	0		2,628	0	0	2,628
Net unrealized gain (loss) on short-term investments	0		0	0	62	62
Net loss for the period	$ 0		0	(14,082)	0	(14,082)
Balance (in shares) at Sep. 30, 2022	41,125,578
Balance at Sep. 30, 2022	$ 4		93,736	(63,841)	56	29,955
Balance (in shares) at Jun. 30, 2022	40,992,161
Balance at Jun. 30, 2022	$ 4		92,856	(59,976)	(17)	32,867
Share-based compensation expense	$ 0		(872)	0	0	(872)
Common shares issued upon vesting of restricted stock units (in shares)	127,917
Common shares issued upon vesting of restricted stock units	$ 0		0	0	0	0
Net loss	$ 0		0	(3,865)	0	(3,865)
Common shares issued upon exercise of stock options (in shares)	5,500
Common shares issued upon exercise of stock options	$ 0		8	0	0	8
Share-based compensation expense	0		872	0	0	872
Net unrealized gain (loss) on short-term investments	0		0	0	73	73
Net loss for the period	$ 0		0	(3,865)	0	(3,865)
Balance (in shares) at Sep. 30, 2022	41,125,578
Balance at Sep. 30, 2022	$ 4		93,736	(63,841)	56	29,955
Balance (in shares) at Dec. 31, 2022	41,175,993	0
Balance at Dec. 31, 2022	$ 4	$ 0	94,333	(67,376)	94	27,055
Share-based compensation expense	0	0	(1,648)	0	0	(1,648)
Dividends on convertible preferred stock	$ 0	$ 0	0	(193)		(193)
Convertible preferred stock issued, net of offering costs (in shares)	0	10,000
Convertible preferred stock issued, net of offering costs	$ 0	$ 2,036	0	0	0	2,036
Common shares issued upon vesting of restricted stock units (in shares)	862,993	0
Common shares issued upon vesting of restricted stock units	$ 0	$ 0	0	0	0	0
Issuance of common stock for acquisition (in shares)	1,250,000	0
Issuance of common stock for acquisition	$ 0	$ 0	1,938	0	0	1,938
Net loss	$ 0	$ 0	0	(11,819)	0	$ (11,819)
Common shares issued upon exercise of stock options (in shares)	250	0				250
Common shares issued upon exercise of stock options	$ 0	$ 0	0	0	0	$ 0
Share-based compensation expense	0	0	1,648	0	0	1,648
Settlement – US Treasury bills	0	0	0	0	(94)	(94)
Net unrealized gain (loss) on short-term investments						(0)
Net loss for the period	$ 0	$ 0	0	(11,819)	0	(11,819)
Balance (in shares) at Sep. 30, 2023	43,289,236	10,000
Balance at Sep. 30, 2023	$ 4	$ 2,036	97,919	(79,388)	0	20,571
Balance (in shares) at Jun. 30, 2023	41,910,687
Balance at Jun. 30, 2023	$ 4	0	96,182	(76,411)	0	19,775
Share-based compensation expense	0	0	(201)	(1)	0	(202)
Dividends on convertible preferred stock	$ 0	$ 0	0	(193)	0	(193)
Convertible preferred stock issued, net of offering costs (in shares)	0	2,036
Convertible preferred stock issued, net of offering costs		$ 10,000	0	0	0	2,036
Common shares issued upon vesting of restricted stock units (in shares)	128,549	0
Common shares issued upon vesting of restricted stock units	$ 0	$ 0	0	0	0	0
Issuance of common stock for acquisition (in shares)	1,250,000	0
Issuance of common stock for acquisition	$ 0	$ 0	1,938	0	0	1,938
Net loss	0	0	0	(2,783)	0	(2,783)
Share-based compensation expense	(0)	(0)	201	1	(0)	202
Net unrealized gain (loss) on short-term investments						0
Net loss for the period	$ 0	$ 0	0	(2,783)	0	(2,783)
Balance (in shares) at Sep. 30, 2023	43,289,236	10,000
Balance at Sep. 30, 2023	$ 4	$ 2,036	$ 97,919	$ (79,388)	$ 0	$ 20,571

Note 7 - Accounts Payable and Accrued Expenses - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Patent and legal costs	$ 61	$ 135
Accrued compensation	786	1,100
Warranty costs	109	125
Taxes and other	172	103
Total	$ 1,128	$ 1,463

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 4,934,000	$ 5,330,000
Short-term investments	10,000,000	13,949,000
Accounts receivable and contract assets, net	4,321,000	2,830,000
Inventories, net	5,816,000	3,975,000
Prepaid expense and other current assets	762,000	775,000
Total current assets	25,833,000	26,859,000
Property and equipment, net	533,000	758,000
Operating lease right-of-use asset, net	205,000	285,000
Intangible assets, net	3,319,000	2,569,000
Goodwill, net	1,611,000	0
Other assets	166,000	100,000
Total assets	31,667,000	30,571,000
Current liabilities:
Accounts payable	1,546,000	1,419,000
Accrued liabilities	1,128,000	1,463,000
Customer deposits	2,000	0
Deferred revenue- short term	189,000	166,000
Operating lease liability - short term	116,000	108,000
Warrants – short term	7,834,000	0
Total current liabilities	10,815,000	3,156,000
Long-term liabilities:
Deferred revenue- long term	176,000	167,000
Operating lease liability - long term	105,000	193,000
Total long-term liabilities	281,000	360,000
Total liabilities	11,096,000	3,516,000
Commitments and Contingencies
Stockholders' equity:
Preferred stock	0	0
Common stock - 150,000,000 authorized; par value $0.0001 per share; 43,289,236 and 41,175,993 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	4,000	4,000
Additional paid-in capital	97,919,000	94,333,000
Accumulated deficit	(79,388,000)	(67,376,000)
Accumulated other comprehensive loss	0	94,000
Total stockholders' equity	20,571,000	27,055,000
Total liabilities and stockholders' equity	31,667,000	30,571,000
Convertible Preferred Stock [Member]
Stockholders' equity:
Preferred stock	$ 2,036,000	$ 0

Note 2 - Revenue and Product Costs (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Contract with Customer, Liability	$ 365	$ 333
Virtual Reality Training [Member]
Contract with Customer, Liability	199	198
Training [Member]
Contract with Customer, Liability	6	11
Extended Product Warranties [Member]
Contract with Customer, Liability	$ 160	$ 124

Note 10 - Share-based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Options on Common Shares, Outstanding (in shares) \| shares	5,491,399
Outstanding, weighted average exercise price (in dollars per share) \| $ / shares	$ 3.72
Outstanding, remaining contractual term (Year)	7 years 7 months 24 days	5 years 11 months 15 days
Outstanding, aggregate intrinsic value \| $	$ 10	$ 92
Options on Common Shares, Granted (in shares) \| shares	60,000
Granted, weighted average exercise price (in dollars per share) \| $ / shares	$ 1.34
Options on Common Shares, Exercised (in shares) \| shares	(250)
Exercised, weighted average exercise price (in dollars per share) \| $ / shares	$ 1.50
Options on Common Shares, Forfeited, cancelled, expired (in shares) \| shares	(3,329,476)
Forfeited, cancelled, expired, weighted average exercise price (in dollars per share) \| $ / shares	$ 5.54
Options on Common Shares, Outstanding (in shares) \| shares	2,221,673	5,491,399
Outstanding, weighted average exercise price (in dollars per share) \| $ / shares	$ 3.56	$ 3.72
Options on Common Shares, Exercisable (in shares) \| shares	1,033,504
Exercisable, weighted average exercise price (in dollars per share) \| $ / shares	$ 4.37
Exercisable, remaining contractual term (Year)	7 years 7 days
Exercisable, aggregate intrinsic value \| $	$ 0

Note 11 - Defined Contribution Plan (Details Textual) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 0	$ 0	$ 0

Note 16 - Subsequent Events (Details Textual) - Subsequent Event [Member]	Oct. 12, 2023 USD ($)	Nov. 01, 2023 ft²
Office Space in Miami, Florida [Member]
Lessee, Operating Lease, Term of Contract (Month)		89 months
Area of Real Estate Property \| ft²		4,487
Executive Chairman [Member]
Salary and Wage, Officer, Excluding Cost of Good and Service Sold	$ 200,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Grant Date Fair Value	$ 675,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period	10 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Percentage of Outstanding Stock Maximum	2.25%
Executive Chairman [Member] \| Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Granted	$ 675,000

Note 7 - Accounts Payable and Accrued Liabilities (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Former CEO Payable [Member]
Employee-related Liabilities	$ 139
Commissions Payable [Member]
Employee-related Liabilities		$ 1,022
Syzygy Licensing LLC [Member]
Accounts Payable	$ 122	$ 127

Note 3 - Financial Instruments

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Text Block]

3. FINANCIAL INSTRUMENTS

Assets and liabilities recorded at fair value on a recurring basis in the Condensed Consolidated Balance Sheets and assets and liabilities measured at fair value on a non-recurring basis or disclosed at fair value, are categorized based upon the level of judgment associated with inputs used to measure their fair values. The accounting guidance for fair value provides a framework for measuring fair value and requires certain disclosures about how fair value is determined. Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The accounting guidance also establishes a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based upon whether such inputs are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions made by the reporting entity. The three-level hierarchy for the inputs to valuation techniques is briefly summarized as follows:

Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and

Level 3—Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.

The Company’s short-term investments consisting of U.S. Treasury bill securities and Certificate of Deposits are classified as Level 1 because they are valued using quoted market prices.

The following table shows the Company’s short-term investments by significant investment category as of September 30, 2023, and December 31, 2022.

	As of September 30, 2023
	Adjusted		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
Level 1:
Certificate of Deposits		10,000		-		-		10,000
Total Financial Assets	$	10,000	$	-	$	-	$	10,000

	As of December 31, 2022
	Adjusted		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
Level 1:
U.S. Treasury securities in short-term investments		9,849		100		-		9,949
Certificate of Deposits		4,000		-		-		4,000
Total Financial Assets	$	13,849	$	100	$	-	$	13,949

Unrealized gains or losses resulting from our short-term investments are recorded in accumulated other comprehensive gain or loss as they are classified as available for sale. During the three and nine months ended September 30, 2023, no gain (loss) was recorded to other comprehensive gain (loss). During the three and nine months ended September 30, 2022, a $73 gain and $62 gain was recorded to other comprehensive gain (loss), respectively.

The warrant liabilities are measured at fair value on a recurring basis. The subsequent measurement of the warrant liabilities as of September 30, 2023, is classified as Level 3 due to the use of an observable market quote in a non-active market and the management’s assumption of the expected stock price volatility.

The following table presents the fair value in the beginning of the period, the changes in the fair value, and the fair value at the end of the period of warrant liabilities (in thousands):

Level 3:	September 30, 2023		December 31, 2022
Fair value at inception or the beginning of the period	$	7,717		-
Change in fair value of warrant liabilities		117		-
Fair value as of September 30, 2023	$	7,834		-

The Company uses the modified Black-Scholes option pricing model to determine the fair value of warrant liabilities. The following table summarizes the assumptions used to compute the fair value of Warrants:

	As of September 30, 2023			As of December 31, 2022
Expected stock price volatility		100	%		-	%
Risk-free interest rate		4.49	%		-	%
Dividends yield		0	%		-	%
Expected life of warrants		4.75			-
Exercise price	$	1.45		$	-

Our other financial instruments also include accounts receivable, accounts payable, accrued liabilities and business acquisition liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the balance sheet.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Note 7 - Accounts Payable and Accrued Liabilities - Changes in Product Warranty Costs (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Balance	$ 125	$ 96
Warranty settlements	(8)	(63)
Warranty provision	(8)	55
Balance	$ 109	$ 88

Note 6 - Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Text Block]

6. INTANGIBLE ASSETS AND GOODWILL

Intangible Assets, net

Intangible assets, net consisted of the following:

	September 30, 2023			December 31, 2022
Amortizable intangible assets:
Patents	$	841		$	575
Trademarks		241			150
Purchased software and technology		2,452			1,962
Customer Relationships		160			-
		3,694			2,687
Accumulated amortization		(778	)		(462	)
Total amortizable		2,916			2,225
Indefinite life assets (non-amortizable)		403			344
Total intangible assets, net	$	3,319		$	2,569

Amortization expense was $150 and $317 for the three and nine months ended September 30, 2023, respectively, and $72 and $215 for the three and nine months ended September 30, 2022, respectively.

At September 30, 2023, future amortization expense is as follows:

2023 (3 months)	$	164
2024		655
2025		650
2026		427
2027		180
Thereafter		840
Total estimated amortization expense	$	2,916

Goodwill

The table below summarizes the changes in the carrying amount of goodwill:

Balance at January 1, 2023	$	-
Acquired goodwill		1,611
Balance at September 30, 2023	$	1,611

Note 10 - Share-based Compensation (Tables)

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

				Weighted Average
	Options on Common Shares			Exercise Price		Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding January 1, 2023		5,491,399		$	3.72		5.96	$	92
Granted		60,000		$	1.34
Exercised		(250	)	$	1.50
Forfeited, cancelled, expired		(3,329,476	)	$	5.54
Outstanding September 30, 2023		2,221,673		$	3.56		7.65	$	10
Exercisable September 30, 2023		1,033,504		$	4.37		7.02	$	-

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	For the Nine Months
	Ended September 30,
	2023			2022
Expected stock price volatility		49	%		49	%
Risk-free interest rate		3.64	%		1.17	%
Expected dividend yield		0	%		0	%
Expected life of options		6.66			3.46
Weighted-average fair value of options granted	$	0.55		$	1.25

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

	Service-Based RSU's			Weighted Average Grant Date Fair Value		Weighted Average Vesting Period (Years)
Unvested at January 1, 2023		922,057		$	2.88		2.11
Granted - service based		686,394		$	1.33
Vested		(862,993	)	$	2.87
Forfeited and cancelled		(298,381	)	$	2.47
Unvested at September 30, 2023		447,077		$	2.00		1.74

Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award [Table Text Block]

	Three Months Ended September 30,					Nine Months Ended September 30,
	2023			2022		2023		2022
Selling, general and administrative	$	(149	)	$	700	$	1,404	$	2,180
Research and development		(53	)		172		244		448
Total share-based expense	$	(202	)	$	872	$	1,648	$	2,628

Note 5 - Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Property and equipment, gross	$ 1,818	$ 1,673
Accumulated depreciation	(1,285)	(915)
Property and equipment, net	533	758
Production and Lab Equipment [Member]
Property and equipment, gross	536	513
Tooling [Member]
Property and equipment, gross	505	448
Computer Equipment [Member]
Property and equipment, gross	587	531
Furniture and Fixtures [Member]
Property and equipment, gross	$ 190	$ 181

Note 12 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Text Block]

12. COMMITMENTS AND CONTINGENCIES

Related Party Technology License Agreement

The Company is obligated to pay royalties and development and patent costs pursuant to an exclusive Amended and Restated Intellectual Property License Agreement dated as of September 30, 2016, with Syzygy, a company owned and controlled by stockholder/consultant Mr. Elwood Norris and stockholder/consultant Mr. James Barnes. The agreement provides for royalty payments of 4% of revenue from products employing the licensed ensnarement device technology up to an aggregate of $1,000 in royalties or until September 30, 2026, whichever occurs earlier. The Company recorded $122 and $185 for royalties during the three and nine months ended September 30, 2023, respectively, and $61 and $147 for royalties during the three and nine months ended September 30, 2022, respectively. The maximum payout still available under this arrangement is $95 as of September 30, 2023.

Service Provider Agreement

Pursuant to the Professional Services and Technology Acquisition Agreement (the “Agreement”) entered into with Lumeto, Inc. and Spatial Industries Group, Inc. (collectively, “Service Provider”) on November 22, 2022, as amended on April 2, 2023, the Service Provider provided to the Company certain technology, services, and perpetual licenses for use within the Company’s Wrap Reality virtual simulation training platform (the “Technology, Services, and License”) in consideration for a cash payment of $700 to the Service Provider, which was completed as of June 30, 2023. The Company has no ongoing or future commitments, responsibilities, or obligations related to this matter.

Purchase Commitments

At September 30, 2023, the Company was committed for approximately $1,690 for future component deliveries that are generally subject to modification or rescheduling in the normal course of business.

Indemnifications and Guarantees

Our officers and directors are indemnified as to personal liability as provided by the Delaware law and the Company’s articles and bylaws. The Company may also undertake indemnification obligations in the ordinary course of business related to its operations. The Company is unable to estimate with any reasonable accuracy the liability that may be incurred pursuant to any such indemnification obligations now or in the future. Because of the uncertainty surrounding these circumstances, the Company’s current or future indemnification obligations could range from immaterial to having a material adverse impact on its financial position and its ability to continue in the ordinary course of business. The Company has no liabilities recorded for such indemnities.

Regulatory Agencies

The Company is subject to oversight from regulatory agencies regarding firearms that arise in the ordinary course of its business.

Litigation

The Company is subject to litigation and other claims in the ordinary course of business. The Company records a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed and adjusted to include the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel, and other information and events pertaining to a particular matter. At September 30, 2023, we had no provision for liability under existing litigation.

Note 14 - Major Customers and Related Information (Tables)

9 Months Ended

Sep. 30, 2023

Disaggregation of Revenue [Table Text Block]

	For the Three Months				For the Nine Months
	Ended September 30,				Ended September 30,
	2023		2022		2023			2022
Americas	$	1,347	$	1,478	$	3,225		$	3,484
Europe, Middle East and Africa		2,284		220		2,320			435
Asia Pacific		-		3		(1	)		545
Total revenues	$	3,631	$	1,701	$	5,544		$	4,464

Note 5 - Property and Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Table Text Block]

	September 30, 2023			December 31, 2022
Production and lab equipment	$	536		$	513
Tooling		505			448
Computer equipment		587			531
Furniture, fixtures and improvements		190			181
		1,818			1,673
Accumulated depreciation		(1,285	)		(915	)
Property and equipment, net	$	533		$	758

Note 1 - Organization, Summary of Significant Accounting Policies and Recent Developments (Details Textual)		9 Months Ended
	Aug. 09, 2023 USD ($) shares	Sep. 30, 2023 $ / shares shares	Sep. 30, 2022 shares	Jul. 29, 2023 $ / shares	Dec. 31, 2022 $ / shares
Common Stock, Par or Stated Value Per Share \| $ / shares		$ 0.0001		$ 0.0001	$ 0.0001
Number of Wholly-owned Subsidiaries		1
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		2,668,750	6,396,277
Intrensic, LLC [Member]
Business Acquisition, Percentage of Voting Interests Acquired	100.00%
Payments to Acquire Businesses, Gross \| $	$ 553,588
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	1,250,000

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Preferred Stock, Shares Authorized (in shares)	5,000,000	5,000,000
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, Shares, Outstanding (in shares)	43,289,236	41,175,993
Common stock, shares issued (in shares)	43,289,236	41,175,993
Convertible Preferred Stock [Member]
Preferred Stock, Shares Authorized (in shares)	10,000	10,000
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, Shares Issued (in shares)	10,000	0
Preferred Stock, Shares Outstanding (in shares)	10,000	0

Note 3 - Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

	As of September 30, 2023
	Adjusted		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
Level 1:
Certificate of Deposits		10,000		-		-		10,000
Total Financial Assets	$	10,000	$	-	$	-	$	10,000

	As of December 31, 2022
	Adjusted		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
Level 1:
U.S. Treasury securities in short-term investments		9,849		100		-		9,949
Certificate of Deposits		4,000		-		-		4,000
Total Financial Assets	$	13,849	$	100	$	-	$	13,949

Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]

Level 3:	September 30, 2023		December 31, 2022
Fair value at inception or the beginning of the period	$	7,717		-
Change in fair value of warrant liabilities		117		-
Fair value as of September 30, 2023	$	7,834		-

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

	As of September 30, 2023			As of December 31, 2022
Expected stock price volatility		100	%		-	%
Risk-free interest rate		4.49	%		-	%
Dividends yield		0	%		-	%
Expected life of warrants		4.75			-
Exercise price	$	1.45		$	-

Note 2 - Revenue and Product Costs - Contract Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Balance	$ 333
Balance	365
Current portion	189	$ 166
Long-term portion	176	$ 167
Customer Deposits [Member]
Balance	0
Additions, net	2
Transfer to revenue	0
Balance	2
Current portion	2
Long-term portion	0
Deferred Revenue [Member]
Balance	333
Additions, net	229
Transfer to revenue	(197)
Balance	365
Current portion	189
Long-term portion	$ 176

Note 15 - Business Combination

9 Months Ended

Sep. 30, 2023

Business Combination Disclosure [Text Block]

15. BUSINESS COMBINATION

The Company entered into the Purchase Agreement with Intrensic and the Sellers with an effective date of August 9, 2023 (the (“Closing”). The Closing was consummated on August 16, 2023. Under the terms of the Purchase Agreement, the Company agreed to purchase, and Sellers agreed to sell the Membership Interests for the following consideration at Closing: (i) $554 in cash, subject to adjustment based upon the outstanding indebtedness of Intrensic and Intrensic’s working capital as of the Closing; and (ii) 1,250,000 shares of Common Stock of the Company valued at approximately $1,938.

The Company assessed the historical financial information of Intrensic to determine if it would materially impact Wrap's historical financial statements for the purposes of disclosing proforma financial information. The Company determined that in the current or prior reporting periods the acquired business contributed immaterially to the Company’s financial statements . Therefore, a pro forma disclosure of the Company as if the business combination had occurred is not warranted under ASC 805.

The preliminary purchase price is not finalized. The Company is still evaluating the impact of the income tax provision related to the acquisition and assessing the assumed contracts related to deferred revenue.

The table below sets forth the preliminary allocation of the fair value of Intrensic’s net assets acquired and the corresponding line item in the Company’s consolidated balance sheet at the date of acquisition.

Cash and cash equivalents	$	3
Accounts receivable		90
Inventory		61
Net property, plant and equipment		-
Technology		490
Customer relationships (included in Intangibles)		160
Trademarks and trade names (included in Intangibles)		80
Goodwill		1,611
Total assets	$	2,495

Liabilities		3
Equity		2,492
Total liabilities and equity	$	2,495

Purchase Price:
Cash		554
Equity		1,938
Liabilities assumed		3
Total	$	2,495

Legal fees incurred in connection with the transaction totaled approximately $38 and have been expensed as incurred.

Note 6 - Intangible Assets and Goodwill (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Amortization of Intangible Assets	$ 150	$ 72	$ 317	$ 215

Note 4 - Inventories (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Inventory, Current [Table Text Block]

	September 30, 2023		December 31, 2022
Finished goods	$	2,921	$	2,293
Work in process		-		-
Raw materials		2,895		1,682
Inventories - net	$	5,816	$	3,975

Note 9 - Stockholders' Equity

9 Months Ended

Sep. 30, 2023

Equity [Text Block]

9. STOCKHOLDERS' EQUITY

The Company’s authorized capital consists of 150,000,000 shares of Common Stock and 5,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”).

On July 3, 2023, the Company filed a Certificate of Designations (the “Series A COD”) with the State of Delaware, designating 10,000 shares of its Preferred Stock as Series A Convertible Preferred Stock, $0.0001 per share (the “Series A Preferred”). Shares of Series A Preferred are convertible into Common Stock (the “Conversion Shares”) at an initial conversion price of $1.45 (the “Conversion Price”), subject to customary adjustments and price-based as defined in the Series A COD. Holders of Series A Preferred Shares are entitled to dividends of 8% per annum, payable quarterly, subject to adjustment upon the occurrence of certain events in accordance with the terms of the Series A COD. The holders of Series A Preferred have no voting rights on account of the Preferred Shares, other than with respect to certain matters affecting the rights of the Preferred Shares.

On June 29, 2023, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain directors of the Company and certain accredited and institutional investors (collectively, the “Investors”), pursuant to which it agreed to sell to the Investors in a private placement (the “Offering”): (i) the Warrants Note 8 and (ii) an aggregate of 10,000 shares of the Company’s newly designated Series A Convertible Preferred Stock, with par value $0.0001 per share and a stated value of $1,000 per share, initially convertible into up to 6,896,553 shares of the Company’s common stock, par value $0.0001 per share at a conversion price of $1.45 per share, subject to customary adjustments and price-based as defined in the Series A Certificate of Designations (the “Convertible Preferred Stocks”). The customary adjustments include: (i) additional amounts related to declared and unpaid Dividends and any other unpaid amounts due and payable and (ii) make-whole amounts related to the accrual of any additional dividends that would have accrued up to the date of conversion including the one-year anniversary from the date of conversion. Each preferred stock has a stated value of $1,000 per share, and holders thereof are entitled to cumulative dividends of 8% per annum on the stated value, payable quarterly in arrears, subject to adjustment upon the occurrence of certain events in accordance with the terms of the Convertible Preferred Stocks. The holders of Convertible Preferred Stocks have no voting rights on account of the Convertible Preferred Stocks, other than with respect to certain matters affecting the rights of the Convertible Preferred Stocks. $2,036 of the aggregate gross proceeds was allocated to the Convertible Preferred Stocks. In September 2023, the Company authorized and declared $193 dividend which was an accrued in accounts payable as of September 30, 2023.

The entire disclosure for equity.

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Note 14 - Major Customers and Related Information

9 Months Ended

Sep. 30, 2023

Concentration Risk Disclosure [Text Block]

14. MAJOR CUSTOMERS AND RELATED INFORMATION

For the three months ended September 30, 2023, revenue from two distributors accounted for approximately 62% and 12% of revenue with no other single customer accounting for more than 10% of total revenue. For the three months ended September 30, 2022, revenue from one distributor accounted for approximately 59% of revenue with no other single customer accounting for more than 10% of total revenue.

For the nine months ended September 30, 2023, revenue from one distributor accounted for approximately 41% of revenue with no other single customer accounting for more than 10% of total revenue. For the nine months ended September 30, 2022, revenue from one distributor accounted for approximately 39% of revenue with no other single customer accounting for more than 10% of total revenue.

At September 30, 2023, accounts receivable from one distributor accounted for 51% of net accounts receivable, with no other single customer accounting for more than 10% of the accounts receivable balance. At December 31, 2022, accounts receivable from one distributor accounted for 70% of net accounts receivable.

The following table summarizes revenue by geographic region. Revenue is attributed to countries based on customer’s delivery location:

	For the Three Months				For the Nine Months
	Ended September 30,				Ended September 30,
	2023		2022		2023			2022
Americas	$	1,347	$	1,478	$	3,225		$	3,484
Europe, Middle East and Africa		2,284		220		2,320			435
Asia Pacific		-		3		(1	)		545
Total revenues	$	3,631	$	1,701	$	5,544		$	4,464

Note 14 - Major Customers and Related Information (Details Textual) - Customer Concentration Risk [Member]	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Revenue Benchmark [Member] \| Distributors [Member]
Number of Major Customers	2	3	3	1
Revenue Benchmark [Member] \| Distributor One [Member]
Concentration Risk, Percentage	62.00%	59.00%	41.00%	39.00%
Revenue Benchmark [Member] \| Distributor Two [Member]
Concentration Risk, Percentage	12.00%
Accounts Receivable [Member] \| Distributors [Member]
Number of Major Customers			3		1
Accounts Receivable [Member] \| Distributor One [Member]
Concentration Risk, Percentage			51.00%		70.00%

Note 6 - Intangible Assets and Goodwill - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Amortizable intangible assets, gross	$ 3,694	$ 2,687
Accumulated amortization	(778)	(462)
Total amortizable	2,916	2,225
Indefinite life assets (non-amortizable)	403	344
Total intangible assets, net	3,319	2,569
Patents [Member]
Amortizable intangible assets, gross	841	575
Trademarks [Member]
Amortizable intangible assets, gross	241	150
Computer Software, Intangible Asset [Member]
Amortizable intangible assets, gross	$ 2,452	$ 1,962

Note 4 - Inventories

9 Months Ended

Sep. 30, 2023

Inventory Disclosure [Text Block]

4. INVENTORIES

Inventory is recorded at the lower of cost or net realizable value. The cost of substantially all the Company’s inventory is determined by the FIFO cost method. Inventories consisted of the following:

	September 30, 2023		December 31, 2022
Finished goods	$	2,921	$	2,293
Work in process		-		-
Raw materials		2,895		1,682
Inventories - net	$	5,816	$	3,975

Note 3 - Financial Instruments - (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Change in fair value of warrant liabilities	$ 117	$ (0)	$ 117	$ 0
Fair Value, Inputs, Level 3 [Member]
Fair value	7,717		0	$ 0	$ 0
Change in fair value of warrant liabilities	117				0
Fair value	$ 7,834		$ 7,834		$ 0

Note 10 - Share-based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Awards other than options, unvested, beginning balance (in shares)	922,057
Awards other than options, unvested, weighted average grant date fair value, beginning balance (in dollars per share)	$ 2.88
Weighted average vesting period (Year)	1 year 8 months 26 days	2 years 1 month 9 days
Awards other than options, Granted (in shares)	686,394
Awards other than options, granted, weighted average grant date fair value (in dollars per share)	$ 1.33
Awards other than options, Vested (in shares)	(862,993)
Awards other than options, vested, weighted average grant date fair value (in dollars per share)	$ 2.87
Awards other than options, Forfeited and cancelled (in shares)	(298,381)
Awards other than options, forfeited and cancelled, weighted average grant date fair value (in dollars per share)	$ 2.47
Awards other than options, unvested, beginning balance (in shares)	447,077	922,057
Awards other than options, unvested, weighted average grant date fair value, beginning balance (in dollars per share)	$ 2.00	$ 2.88

Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2023	Nov. 13, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	000-55838
Entity Registrant Name	Wrap Technologies, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	98-0551945
Entity Address, Address Line One	1817 W 4th Street
Entity Address, City or Town	Tempe
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85281
City Area Code	800
Local Phone Number	583-2652
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	WRAP
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		44,214,169
Entity Central Index Key	0001702924
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Note 7 - Accounts Payable and Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Accrued Liabilities [Table Text Block]

	September 30, 2023		December 31, 2022
Patent and legal costs	$	61	$	135
Accrued compensation		786		1,100
Warranty costs		109		125
Taxes and other		172		103
Total	$	1,128	$	1,463

Schedule of Product Warranty Liability [Table Text Block]

	Nine Months Ended September 30,
	2023			2022
Balance, beginning of period	$	125		$	96
Warranty settlements		(8	)		(63	)
Release of warranty provision		(8	)		55
Balance, end of period	$	109		$	88

Note 3 - Financial Instruments - Fair Value Assumptions (Details)	Sep. 30, 2023	Dec. 31, 2022
Measurement Input, Price Volatility [Member]
Warrants, measurement input	1	0
Measurement Input, Risk Free Interest Rate [Member]
Warrants, measurement input	0.0449	0
Measurement Input, Expected Dividend Rate [Member]
Warrants, measurement input	0	0
Measurement Input, Expected Term [Member]
Warrants, measurement input	4.75	0
Measurement Input, Exercise Price [Member]
Warrants, measurement input	1.45	0

Note 13 - Related Party Transactions

9 Months Ended

Sep. 30, 2023

13. RELATED PARTY TRANSACTIONS

Commencing in October 2017 the Company began reimbursing Mr. Elwood Norris, a former officer, current 10% stockholder and consultant of the Company, $1.5 per month on a month-to-month basis for laboratory facility expense, for an aggregate of $4.5 and $13.5 during the three and nine months ended September 30, 2023, and 2022, respectively. Mr. Norris retired as the Company’s Chief Technology Officer effective September 30, 2021, and commencing July 1, 2021, was engaged as a month-to-month consultant. Mr. Norris was paid a monthly fee of $7.5 per month for aggregate consulting payments of $22.5 and $67.5 during each of the three and nine months ended September 30, 2023, and 2022.

On June 29, 2023, we entered into the Purchase Agreement with certain investors, including Mr. Scot Cohen, the Executive Chairman of the Company, and V4, an entity over which Mr. Cohen exercises control and whose securities are beneficially owned by Mr. Cohen (the “Affiliated Offering”), pursuant to which the Company issued to Mr. Cohen and V4 an aggregate of 3,000 Series A Preferred and warrants to purchase up to an aggregate of 2,068,966 shares of Common Stock for aggregate gross proceeds of $3,000,000 (excluding the proceeds the Company may receive from the exercise of the warrants issued in the Affiliated Offering) (the “Affiliated Proceeds”). The Certificate of Designation for the Series A Preferred provides that Series A Preferred held by a holder who serves as a director, officer or is an employee of the Company shall only be convertible into shares of Common Stock following receipt of approval of a majority of the Company’s stockholders (“Stockholder Approval”). Similarly, any warrant issued to one of our directors may not be exercised prior to date that is the later of (x) the date on which the Company received Stockholder Approval and (y) the date that is six months from the date of issuance). Stockholder Approval was attained at a special meeting of stockholders held on September 19, 2023.

On August 9, 2023, the Company entered into the Purchase Agreement with Intrensic and the Sellers, including Kevin Mullins, a director of the Company and its Chief Executive Officer. Under the terms of the Purchase Agreement, the Company agreed to purchase, and Sellers, including Mr. Mullins, agreed to sell, 100% of the Membership Interests of Intrensic for the following consideration: (i) $554 in cash, subject to adjustment based upon the outstanding indebtedness of Intrensic and Intrensic’s working capital; and (ii) 1,250,000 shares of Common Stock of the Company. Kevin Mullins owns approximately 9.53% of the Membership Interests, and as such, has a financial interest in the sale of Intrensic to the Company.

See Notes 1, 7 and 12 for additional information on related party transactions and obligations.

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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