Wrap Enters U.S. Army xTechCounter Strike C-UAS Competition with Project MERLIN Innovation

Rhea-AI Summary

Wrap Technologies (NASDAQ: WRAP) has submitted its Counter-Unmanned Aircraft System (C-UAS) technology solution, Project Merlin-1KC, to the U.S. Army's xTechCounter Strike competition. The patent-pending system features a modular, platform-agnostic defeat solution designed to physically disable hostile Group 1 drones using lightweight tethered projectiles.

The Merlin-1KC system, with an anticipated retail cost of less than $60 per shot, can be integrated across multiple platforms and demonstrates a 6:1 multi-kill capability in testing. Wrap's current production capacity stands at 18,000-20,000 units, with potential surge capacity to 75,000 units monthly within 90 days of award. The company maintains an 85% U.S.-based supply chain with plans to achieve 100% Made-in-USA status.

Positive

• Cost-effective solution at less than $60 per shot against expensive enemy drones (6:1 kill ratio)
• Significant manufacturing capacity with 18,000-20,000 units currently, scalable to 75,000 monthly
• 85% U.S.-based supply chain with roadmap to 100% Made-in-USA status
• Potential expansion beyond law enforcement into military markets

Negative

• Product still in development phase with pending patents
• No guaranteed selection in the Army competition or subsequent contracts

Insights

Defense Technology Analyst

Wrap's entry into military drone defense market shows promising potential with cost-effective counter-UAS technology leveraging existing manufacturing capabilities.

Wrap Technologies is making a strategic expansion from law enforcement into the military defense sector with its Project Merlin-1KC submission to the U.S. Army's xTechCounter Strike competition. This counter-unmanned aerial system (C-UAS) technology represents a significant potential growth avenue beyond the company's established BolaWrap® product line.

The company's approach addresses a critical battlefield challenge: the asymmetric cost advantage of offensive drones. Current counter-drone systems typically cost orders of magnitude more than the threats they target, creating unsustainable economics for defenders. Wrap's solution aims to flip this cost equation with units priced at $60 per shot, enabling a favorable 6:1 kill ratio against enemy drones based on their testing.

The technical approach is noteworthy - rather than relying on expensive electronic warfare or directed energy, Merlin uses physical entanglement via tethered projectiles. This mechanical approach offers advantages in contested electromagnetic environments where jamming might be ineffective. The platform-agnostic design allowing integration across multiple deployment methods (vehicles, drones, soldier-worn) creates versatility that defense customers value.

Wrap's manufacturing readiness appears robust, with current capacity for 18,000-20,000 units monthly and surge capability to 75,000 units. This production foundation, built on experience manufacturing over 150,000 BolaWrap cartridges, provides credibility to their military market entry. The 85% U.S.-based supply chain with plans for complete domestic sourcing aligns with DOD procurement preferences.

For investors, this represents a potential diversification of revenue streams and access to the substantial defense procurement ecosystem. Success in the competition could lead to cash prizes, experimentation opportunities, and potential DOD or NATO contracts - creating multiple paths for monetization beyond Wrap's traditional law enforcement market.

The patent pending Merlin platform and Wide Area Kinetic Anti-Drone Cassette are anticipated to meet or exceed DOD and U.S. Army requirements by providing scalable, low-cost, and rapidly deployable defense against unmanned aerial threats, reinforcing Wrap’s long-term growth strategy in military and allied markets.

MIAMI, Sept. 17, 2025 (GLOBE NEWSWIRE) -- Wrap Technologies, Inc. (NASDAQ: WRAP) (“Wrap” or the “Company”), a global leader in innovative public safety and defense solutions, today announced the successful submission of its C-UAS as a technology solution for the U.S. Army’s xTechCounter Strike¹ competition.

The U.S. Army initiative seeks innovative C-UAS technologies to help protect U.S. and allied forces against the rapid proliferation of small drones on the battlefield. Selected participants may be eligible for cash prizes, invitations to live experimentation events, and potential follow-on contracting opportunities with the Department of Defense and NATO partners.

Wrap’s submission, Project Merlin-1KC, introduces our patent pending modular, platform-agnostic defeat solution designed to physically disable hostile Group 1 drones. The system deploys lightweight, tethered projectiles that entangle drone rotors, with the goal of neutralizing threats without reliance on electronic warfare or directed energy. We believe these capabilities are particularly valuable in contested environments where traditional countermeasures are less effective.

The Merlin-1KC system is engineered for rapid integration across multiple platforms, including unmanned aerial and ground vehicles, turrets, vehicle mounts, and soldier-worn launchers. Demonstrations have shown cost-effective multi-shot capabilities, enabling multi-shot ratios of up to 6:1 against low-cost hostile drones. Supported by an 85% U.S.-based supply chain today with a desirable DOD goal of 100% Made-In-USA roadmap, Wrap’s current production capacity can deliver up to 18,000–20,000 units, with a surge potential to 75,000 units monthly.

“We believe our MERLIN system represents a breakthrough in C-UAS offensive and defensive battlefield capacity,” said President and Chief Operating Officer of Wrap, Jared Novick. “It is designed to flip the cost curve by providing the Army and allied forces with a sustainable and scalable solution against the growing threat of unmanned systems. We believe our entry in the xTechCounter Strike aligns with our long-term strategy to expand Wrap’s technology portfolio beyond law enforcement, potentially creating new opportunities in defense while leveraging our proven cartridge manufacturing expertise.”

Key Highlights of Project Merlin-1KC:

• Scalable, Low-Cost Defense: With an anticipated retail cost of less than $60 per shot, 1KC sets a roadmap to reverse the current cost imbalance of drone warfare.
• Proven Manufacturing Capacity – Backed by Wrap’s track record of producing over 150,000 BolaWrap® cartridges worldwide.
• Flexible Deployment – MERLIN system integrates across drones, vehicles, turrets, and soldier-worn systems with a simple plug-and-play architecture.
• Rapid Scalability – Surge potential of up to 75,000 monthly units within 90 days of award.
• Operational Effectiveness – Projected multi-kill capability, providing 6:1 or greater effects ratios in testing.
  

Participation in the xTechCounter Strike competition underscores Wrap’s broader vision to support domestic and international defense markets while securing R&D funding partnerships and programs. By adapting our cassette-based technology to counter-UAS applications, we believe Wrap is uniquely positioned to deliver innovative and mission-ready solutions for today’s contested environments.

“We intend for this submission to be the first step in extending Wrap’s proven technology ecosystem into defense,” added Novick. “Our goal is to provide the Army with a reliable, scalable counter-UAS solution while continuing to drive long-term value for our shareholders.”

About Wrap Technologies, Inc.

Wrap Technologies, Inc. (Nasdaq: WRAP) a global leader in innovative public safety technologies and non-lethal tools, delivering cutting-edge technology with exceptional people to address the complex, modern day challenges facing public safety organizations.

Wrap’s BolaWrap^® 150 solution leads in pre-escalation and beyond, providing law enforcement with a safer choice for nearly every phase of a critical incident.

This innovative, patented device deploys a multi-sensory, cognitive disruption that leverages sight, sound and sensation to expand the pre-escalation period and gives officers the advantage and critical time to manage non-compliant subjects before resorting to higher-force options. The BolaWrap 150 is not pain-based compliance. It does not shoot, strike, shock, or incapacitate, instead, it helps officers strategically operate pre-escalation on the force continuum, reducing the risk of injury to both officers and subjects. Used by over 1,000 agencies across the U.S. and in 60 countries, BolaWrap^® is backed by training certified by the International Association of Directors of Law Enforcement Standards and Training (IADLEST), reinforcing Wrap’s commitment to public safety through cutting-edge technology and expert training.

Wrap Reality™ VR is a fully immersive training simulator to enhance decision-making under pressure.

As a comprehensive public safety training platform, it provides first responders with realistic, interactive scenarios that reflect the evolving challenges of modern law enforcement. By offering a growing library of real-world situations, Wrap Reality™ is intended to equip officers with the skills and confidence to navigate high stakes encounters effectively, which we believe leads to safer outcomes for both responders and the communities they serve.

WrapVision is an all-new body-worn camera and evidence management system built for efficiency.

Designed for efficiency, security, and transparency to meet the rigorous demands of modern law enforcement, WrapVision captures, stores, and helps manage digital evidence, ensuring operational security, regulatory compliance, and superior video picture quality and field of view.

The WrapVision camera, powered by IONODES, boasts seamless cloud integration and adheres to Trade Agreements Act (TAA) compliance requirements and GSA schedule contracts requirements. Crucially, unlike many competitor devices manufactured overseas in foreign, non-compliant, and possibly hostile regions, WrapVision is built right here in North America today, with a critical made-in-America roadmap by the end of 2025. This track helps ensure data integrity and helps eliminate critical concerns over unauthorized access or foreign surveillance risks.

Trademark Information

Wrap, the Wrap logo, BolaWrap^®, Wrap Reality™ and Wrap Training Academy are trademarks of Wrap Technologies, Inc., some of which are registered in the U.S. and abroad. All other trade names used herein are either trademarks or registered trademarks of the respective holders.

Cautionary Note on Forward-Looking Statements – Safe Harbor Statement

This release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “anticipate,” “should”, “believe”, “target”, “project”, “goals”, “estimate”, “potential”, “predict”, “may”, “will”, “could”, “intend”, and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Moreover, forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control and included, but not limited to, statements relating to the expected benefits of the Company’s submission to the U.S. Army xTechCounter Strike C-UAS Competition. The Company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the Company’s ability to maintain compliance with the Nasdaq Capital Market’s listing standards; the Company’s ability to successfully implement training programs for the use of its products; the Company’s ability to manufacture and produce products for its customers; the Company’s ability to develop sales for its products; the market acceptance of existing and future products; the availability of funding to continue to finance operations; the complexity, expense and time associated with sales to law enforcement and government entities; the lengthy evaluation and sales cycle for the Company’s product solutions; product defects; litigation risks from alleged product-related injuries; risks of government regulations; the business impact of health crises or outbreaks of disease, such as epidemics or pandemics; the impact resulting from geopolitical conflicts and any resulting sanctions; the ability to obtain export licenses for counties outside of the United States; the ability to obtain patents and defend intellectual property against competitors; the impact of competitive products and solutions; and the Company’s ability to maintain and enhance its brand, as well as other risk factors mentioned in the Company’s most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and other Securities and Exchange Commission filings. These forward-looking statements are made as of the date of this release and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.

Investor Relations Contact:

(800) 583-2652
ir@wrap.com

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¹ https://xtech.army.mil/competition/xtechcounterstrike/

FAQ

What is Wrap Technologies' Project Merlin-1KC and how does it work?

Project Merlin-1KC is a counter-drone system that uses lightweight tethered projectiles to physically disable hostile Group 1 drones by entangling their rotors, designed to work without relying on electronic warfare or directed energy.

What is the production capacity for Wrap's (NASDAQ: WRAP) Merlin-1KC system?

Wrap can currently produce 18,000-20,000 units, with the ability to scale up to 75,000 units monthly within 90 days of award.

How much does each Merlin-1KC shot cost and what is its effectiveness?

Each shot costs less than $60 and demonstrates a 6:1 kill ratio against enemy drones, making it a cost-effective counter-drone solution.

What platforms can integrate Wrap's Merlin-1KC system?

The system can be integrated across multiple platforms including unmanned aerial and ground vehicles, turrets, vehicle mounts, and soldier-worn launchers.

What percentage of Wrap's Merlin supply chain is U.S.-based?

Currently 85% of the supply chain is U.S.-based, with plans to achieve 100% Made-in-USA status.