Wrap Technologies Enters US Army xTech C-UAS Contest With Merlin-1KC Drone-Disabling System

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.