0001437749-23-005218 | 10-K | XBRL Viewer

Lessee, Operating Leases [Text Block]

9. LEASES

The Company determines if an arrangement is a lease at inception. The guidance in FASB ASC Topic 842, Leases defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. Operating lease right of use (“ROU”) assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. The Company’s leases do not provide an implicit rate. Due to a lack of financing history or ability, the Company uses an estimate of low-grade debt rate published by the Federal Reserve Bank as its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The ROU asset includes any lease payments made and excludes lease incentives and initial direct costs incurred.

For leases beginning on or after January 1, 2019, lease components are accounted for separately from non-lease components for all asset classes. On January 21, 2022, the Company’s lease was amended to extend the expiration date to July 31, 2025. Upon execution of the amendment, which was deemed a lease modification, the Company reassessed the lease liability using the discount rate determined at the modification date and recorded an additional ROU asset for the same amount. The Company’s lease contains renewal provisions and escalating rental clauses and generally requires the Company to pay utilities, insurance, taxes and other operating expenses. The renewal provisions of the existing lease agreement were not included in the determination of the operating lease liabilities and the ROU assets. The Company also reassessed the lease classification and concluded that the lease continues to be an operating lease.

Amortization of ROU operating lease assets was $101 and $88 for the years ended December 31, 2022 and 2021, respectively.

Operating lease expense for capitalized operating leases included in operating activities was $118 and $95 for the years ended December 31, 2022 and 2021, respectively. Operating lease obligations recorded on the balance sheet at December 31, 2022 are:

Operating lease liability- short term	$	108
Operating lease liability - long term		193
Total Operating Lease Liability	$	301

Future lease payments included in the measurement of lease liabilities on the balance sheet at December 31, 2022 for future periods are as follows:

2023	$	121
2024		126
2025		75
Total future minimum lease payments		322
Less imputed interest		(21	)
Total	$	301

The weighted average remaining lease term is 2.58 years, and the weighted average discount rate is 5.0%.

Certain leases contain provisions for payment of real estate taxes, insurance and maintenance costs by the Company. These expenses are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. The Company had $39 and $29 variable lease expenses during year ended December 31, 2022 or 2021.

The Company had $11 and $0 short-term lease expense during year ended December 31, 2022, or 2021. The Company does not have any finance leases.

Note 18 - Subsequent Events	12 Months Ended
Dec. 31, 2022
Notes to Financial Statements
Subsequent Events [Text Block]	18. SUBSEQUENT EVENTS The Company has evaluated other events subsequent to December 31, 2022 through the date the accompanying financial statements were filed with the Securities and Exchange Commission and noted that there have been no other events or transactions which would affect the Company’s financial statements for the year ended December 31, 2022.

Note 18 - Subsequent Events

12 Months Ended

Dec. 31, 2022

Subsequent Events [Text Block]

18. SUBSEQUENT EVENTS

The Company has evaluated other events subsequent to December 31, 2022 through the date the accompanying financial statements were filed with the Securities and Exchange Commission and noted that there have been no other events or transactions which would affect the Company’s financial statements for the year ended December 31, 2022.

Note 8 - Accounts Payable and Accrued Liabilities

12 Months Ended

Dec. 31, 2022

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable includes $127 and $228 due to related party Syzygy Licensing, LLC (“Syzygy”) as of December 31, 2022 and 2021, respectively.

Accrued liabilities consist of the following:

	December 31,
	2022		2021
Patent and legal costs	$	135	$	28
Accrued compensation		1,100		628
Warranty costs		125		96
Taxes and other		103		72
	$	1,463	$	824

Accrued compensation includes $1,022 and $305 in employee bonuses and commissions payable at December 31, 2022 and 2021, respectively.

Changes in our estimated product warranty costs were as follows:

	Year Ended December 31,
	2022			2021
Balance, beginning of period	$	96		$	48
Warranty settlements		(181	)		(62	)
Warranty provision		210			110
Balance, end of period	$	125		$	96

Note 4 - Financial Instruments

12 Months Ended

Dec. 31, 2022

Financial Instruments Disclosure [Text Block]

4. FINANCIAL INSTRUMENTS

Assets and liabilities recorded at fair value on a recurring basis in the 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 cash equivalent Money Market Funds and short-term investments consisting of US Treasury bill securities are classified as Level 1 because they are valued using quoted market prices.

The following table shows the Company’s cash and cash equivalents, Money Market Funds and short-term investments by significant investment category as of December 31, 2022 and 2021.

	As of December 31, 2022
	Adjusted		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
Level 1:
Money Market Funds	$	3,004	$	-	$	-	$	3,004
US Treasury securities in short-term investments		9,849		100		-		9,949
Certificate of Deposits		4,000		-		-		4,000
Total Financial Assets	$	16,853	$	100	$	-	$	16,953

	As of December 31, 2021
	Adjusted		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Level 1:
Money Market Funds	$	1,670	$	-	$	-		$	1,670
US Treasury securities in short-term investments		29,989		-		(6	)		29,983
Total Financial Assets	$	31,659	$	-	$	(6	)	$	31,653

Unrealized gains or losses resulting from our short-term investments are recorded in accumulated other comprehensive gain or loss. During the year ended December 31, 2022 and 2021, $100 and $(21) was recorded to accumulated other comprehensive loss and gain, respectively.

Our 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 sheets.

Note 14 - Commitments and Contingencies (Details Textual) - USD ($)		12 Months Ended
	Nov. 22, 2022	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2016
Contractual Obligation, Total		$ 3,626,000
Professional Services and Technology Acquisition Agreement [Member]
Payments to Acquire Businesses, Gross	$ 700,000	700,000
Professional Services and Technology Acquisition Agreement [Member] \| February 13 Delviery [Member]
Business Combination, Contingent Consideration, Liability, Total	125,000	125,000
Professional Services and Technology Acquisition Agreement [Member] \| Final Delivery of Technology, Services, and License [Member]
Business Combination, Contingent Consideration, Liability, Total	$ 125,000	125,000
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		274,000	$ 278,000
Royalty Guarantees, Commitments, Amount		$ 280,000

Note 6 - Property and Equipment, Net

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment Disclosure [Text Block]

6. PROPERTY AND EQUIPMENT, NET

Property and equipment consisted of the following:

	December 31,
	2022			2021
Production and lab equipment	$	513		$	500
Tooling		448			273
Computer equipment		531			467
Furniture, fixtures and improvements		181			176
		1,673			1,416
Accumulated depreciation		(915	)		(440	)
Property and equipment, net	$	758		$	976

Depreciation expense was $475 and $297 for the years ended December 31, 2022 and 2021, respectively. As part of product line exit costs unamortized production tooling costs of $106 were written off in the second quarter of 2021.

Note 12 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended						12 Months Ended
	Jun. 30, 2022	Apr. 30, 2022	Jan. 31, 2022	Jun. 30, 2021	Jun. 30, 2020	May 31, 2019	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2017
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance							5,491,399	3,935,883
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross							4,153,885
Share-Based Payment Arrangement, Expense							$ 3,225	$ 5,356
Employment Inducement Grant [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross		1,049,145
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross							4,153,885
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate							0.00%	0.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term							5 years 11 months 15 days	5 years 8 months 26 days
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate							49.00%	50.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate							2.47%	0.90%
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount							$ 3,327
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition							3 years 4 months 17 days
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period		175,173					988,850	398,662
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount							$ 1,900
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition							2 years 1 month 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							1,556,291
Share-Based Payment Arrangement, Accelerated Cost			$ 242
The 2017 Stock Incentive Plan [Member] \| Service-based Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance							3,877,169
The 2017 Stock Incentive Plan [Member] \| Performance-based Options [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding, Ending Balance							1,614,230
The 2017 Stock Incentive Plan [Member] \| Share-Based Payment Arrangement, Option [Member]
Share-Based Payment Arrangement, Expense							$ 1,770	$ 2,608
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
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%
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] \| Restricted Stock Units (RSUs) [Member]
Share-Based Payment Arrangement, Expense							$ 1,455	$ 2,748

Significant Accounting Policies (Policies)	12 Months Ended
Significant Accounting Policies (Policies)	Dec. 31, 2022
Accounting Policies [Abstract]
Organization and Business Description [Policy Text Block]	Organization and Business DescriptionWrap 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, the Middle East and Asia.
Consolidation, Policy [Policy Text Block]	Principles of ConsolidationThe Company has one wholly owned subsidiary, Wrap Reality, Inc. formed in December 2020 that sells a virtual reality (“VR”) training system primarily targeting law enforcement agencies. The consolidated financial statements include the accounts of this subsidiary after elimination of intercompany transactions and accounts.
Use of Estimates, Policy [Policy Text Block]	Basis of Presentation and Use of EstimatesThe accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the US of America (“US GAAP”). The preparation of financial statements in conformity with accounting principles generally accepted in the US of America requires management to make estimates and assumptions (e.g., share-based compensation valuation, allowance for doubtful accounts, valuation of inventory and intangible assets, warranty reserve, accrued costs, valuation allowance related to deferred tax assets 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 revenues and expenses during the reporting period. Actual results could materially differ from those estimates.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentrations of RiskCredit Risk – Financial instruments that potentially subject the Company to concentration of credit risk consisted primarily of cash, cash equivalents, US treasury bills and accounts receivable from customers. The Company maintains its cash and cash equivalent deposits at two domestic financial institutions. The Company is exposed to credit risk in the event of default by a financial institution to the extent that cash and cash equivalents are in excess of the amount insured by the Federal Deposit Insurance Corporation. The Company places its cash and cash equivalents with high-credit quality financial institutions and are managed within established guidelines to mitigate risks. To date, the Company has not experienced any losses on its cash and cash equivalents.Concentrations of Accounts Receivable and Revenue – The Company has a limited number of domestic and international customers. The Company may experience concentrations in both accounts receivable and revenue due to the timing of sales and collections of related payments (see Note 17).Concentration of Suppliers – The Company assembles its BolaWrap products in-house using components and subassemblies from a limited number of suppliers and contract suppliers. In particular, a single supplier is currently the sole manufacturer of the BolaWrap battery assembly, and another single supplier is the sole manufacturer of the propulsion component for BolaWrap cassettes. Other parts are solely sourced from other suppliers. If supplier shortages or logistic delays occur, or quality problems arise, production schedules could be significantly delayed or costs significantly increased, which could in turn have a material adverse effect on the Company’s financial condition, results of operation and cash flows.Impact of COVID-19 – In December 2019, a novel strain of coronavirus (“COVID-19”) emerged in China. In March 2020, the World Health Organization declared the outbreak as a pandemic. The extent to which the coronavirus impacts our operations will continue to depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the outbreak, new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact, among others. In particular, the continued spread of the coronavirus globally and emergence of new strains could adversely impact our operations, including our manufacturing, logistics and supply chain. Our operations could be negatively affected if employees are quarantined as the result of exposure to a contagious illness. Similarly, travel restrictions resulting from the rapid spread of contagious illnesses may have a material adverse effect on our business and results of operations.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash EquivalentsThe Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents consist primarily of amounts invested in Money Market Funds and US (“US”) Treasury bills and are stated at fair value.
Investment, Policy [Policy Text Block]	Short-Term InvestmentsThe Company’s short-term investments consist of US Treasury bills with original maturities beyond three months at the date of purchase and one year or less from the balance sheet date. As of December 31, 2021, all of the Company’s short-term investments were classified as available-for-sale and are carried at estimated fair value with any unrealized gains and losses, unrelated to credit loss factors, included in other comprehensive income in our consolidated statements of stockholders’ equity.
Share-Based Payment Arrangement [Policy Text Block]	Share-Based CompensationThe Company follows the fair value recognition provisions issued by the FASB in ASC Topic 718, Stock Compensation (“ASC 718”) and has adopted Accounting Standards Update (“ASU”) 2018-07 for share-based transactions with non-employees. Share-based compensation expense recognized during 2022 and 2021 includes stock option and restricted stock unit compensation expense. The grant date fair value of stock options is determined using the Black-Scholes option-pricing model. The grant date is the date at which an employer and employee or non-employee reach a mutual understanding of the key terms and conditions of a share-based payment award and approved by the Company’s Board of Directors. The Black-Scholes option-pricing model requires inputs including the market price of the Company’s Common Stock on the date of grant, the term that the stock options are expected to be outstanding, the implied stock volatilities of several publicly traded peers over the expected term of stock options, risk-free interest rate and expected dividend. Each of these inputs is subjective and generally requires significant judgment to determine. The grant date fair value of restricted stock units is based upon the market price of the Company’s Common Stock on the date of the grant. We determine the amount of share-based compensation expense based on awards that we ultimately expect to vest and account for forfeitures as they occur. The fair value of share-based compensation is amortized to compensation expense over the vesting term.
Earnings Per Share, Policy [Policy Text Block]	Loss per ShareBasic loss per common share is computed by dividing net loss for the period by the weighted-average number of shares of Common Stock outstanding during the period. Diluted net loss per common share reflects the potential dilution of securities that could share in the earnings of an entity. The Company’s losses for the periods presented cause the inclusion of potential Common Stock instruments outstanding to be antidilutive. Stock options and restricted stock units exercisable or issuable for a total of 6,413,546 and 5,596,853 shares of Common Stock were outstanding at December 31, 2022 and 2021, 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.
Accounts Receivable [Policy Text Block]	Accounts Receivable and Allowance for Credit LossesASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The expected credit losses are developed using an estimated loss rate method that considers historical collection experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The estimated loss rates are applied to accounts receivables with similar risk characteristics such as the length of time the balance has been outstanding and the location of the customer. In certain instances, the Company may identify individual accounts receivable assets that do not share risk characteristics with other accounts receivables, in which case the Company records its expected credit losses on an individual asset basis. If an accounts receivable asset is evaluated on an individual basis, the Company excludes those assets from the portfolios of accounts receivables evaluated on a collective basis. F-8 Table of Contents At December 31, 2022 and 2021, the Company had an allowance for credit losses related to accounts receivable of $205 and $134, respectively. If a major customer’s creditworthiness deteriorates, or actual defaults exceed our historical experience, such estimates could change and impact our future reported financial results.
Inventory, Policy [Policy Text Block]	InventoriesInventories are valued 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. Inventory is comprised of raw materials, assemblies and finished products intended for sale to customers. The Company evaluates the need for reserves for excess and obsolete inventories determined primarily based upon estimates of future demand for the Company’s products.At December 31, 2022 and 2021 the Company had no reserve for obsolescence.
Property, Plant and Equipment, Policy [Policy Text Block]	Property, Equipment and DepreciationProperty and equipment is stated at cost. Depreciation on property and equipment is computed over the estimated useful lives of three years using the straight-line method. On any retirement or disposition of property and equipment, the related cost and accumulated depreciation or amortization is removed, and a gain or loss recorded.
Business Combinations Policy [Policy Text Block]	Business CombinationsTransactions in which the Company obtains control of a business are accounted for according to the acquisition method as described in ASC 805, Business Combinations. The assets acquired and liabilities assumed are recognized and measured at their fair values as of the date control is obtained. The Company measures goodwill as the excess of consideration transferred, which the Company also measures at fair value, over the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed. Acquisition related costs in connection with a business combination are expensed as incurred. Contingent consideration is recognized and measured at fair value at the acquisition date and until paid is re-measured on a recurring basis and classified as a liability.
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]	Intangible AssetsIntangible assets consist of (a) capitalized legal fees and filing costs related to obtaining patents and trademarks, (b) tradenames and software, (c) purchased software, and (d) the purchase cost of indefinite-lived website domains. The estimated useful lives of identifiable intangible assets with definite useful lives have been estimated to be between one and twenty years. Purchased website domain costs with an indefinite useful life are not subject to amortization, but are subject to an annual impairment test, by comparing their carrying amount with their corresponding fair value. For any given intangible asset with an indefinite useful life, if its fair value exceeds its carrying amount no impairment loss shall be recognized.The carrying value of intangibles is periodically reviewed and impairments, if any, are recognized when the future undiscounted cash flows realized from the assets is less than its carrying value.
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]	Impairment of Long-Lived AssetsLong-lived assets and identifiable intangibles held for use are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of undiscounted expected future cash flows is less than the carrying amount of the asset or if changes in facts and circumstances indicate, an impairment loss is recognized and measured using the asset’s fair value. The Company did not recognize any other impairment loss during the years ended December 31, 2022 and 2021.
Classification and Valuation of Warrants [Policy Text Block]	Classification and Valuation of WarrantsThe Company accounts for warrants as either equity or liabilities based upon the characteristics and provisions of each particular instrument. Warrants valued and classified as equity are recorded as additional paid-in capital based on the issue date fair value and no further adjustment to valuation is made. As of December 31, 2022, the Company has no warrants or other derivative financial instruments that require separate accounting as liabilities and periodic revaluation.
Advertising Cost [Policy Text Block]	Advertising and Promotion CostsAdvertising costs are charged to expense as incurred and were $426 and $145 for the years ended December 31, 2022 and 2021, respectively. The Company also incurred product promotion costs for demonstration products delivered to prospective customers of $688 and $924 for the years ended December 31, 2022 and 2021, respectively. Advertising and promotion costs are included in selling, general and administrative expenses in the accompanying statements of operations.
Demonstration and Training Costs [Policy Text Block]	Demonstration and Training CostsThe Company maintains a demonstration and training department as a part of its sales and marketing activities and does not charge for product demonstrations or training. Training is not a condition or requirement of sale as most sales are made through distributors to their end customers. The Company conducts local and regional in-person, webinar and on-line demonstrations and use of force and escalation training to support law enforcement agencies with no purchase requirement. Such training, when provided, may occur before or after initial or subsequent purchase or field deployment of the Company’s products. The Company believes that law enforcement trainers and officers that have seen demonstrations or have been trained about its products are more supportive of their departments purchase and deployment of product.
Research and Development Expense, Policy [Policy Text Block]	Research and Development CostsResearch and development costs are expensed as incurred.
Contract Manufacturers Policy [Policy Text Block]	Contract ManufacturersThe Company employs contract manufacturers for production of certain components and sub-assemblies. The Company may provide parts and components to such parties from time to time but recognizes no revenue or markup on such transactions.
Lessee, Leases [Policy Text Block]	LeasesThe Company adopted ASC Topic 842, Leases (“Topic 842”) on January 1, 2019. In accordance with the guidance in Topic 842, the Company recognizes lease liabilities and corresponding right-of-use-assets for all leases with terms of greater than 12 months. Leases with a term of 12 months or less will be accounted for in a manner similar to the guidance for operating leases prior to the adoption of Topic 842. Refer to Note 9, Leases for more information.
Revenue from Contract with Customer [Policy Text Block]	Revenue RecognitionThe Company adopted ASC Topic 606, Revenue from Contracts with Customers on January 1, 2018. The Company enters into contracts that include various combinations of products, accessories, software and services, each of which are generally distinct and are accounted for as separate performance obligations. Product sales include BolaWrap products and accessories. Other revenue includes VR revenues, service, training and shipping revenues.A performance obligation is a promise in a contract to transfer a distinct good or service to a customer and is the unit of account in Topic 606. For contracts with a single performance obligation, the entire transaction price is allocated to the single performance obligation. For contracts with multiple performance obligations, the Company allocates the contract transaction price to each performance obligation using the Company’s estimate of the standalone selling price (“SSP” or “SSPs”) of each distinct good or service in a contract. The Company determines SSPs based on the relative SSP. If the SSP is not observable through past transactions, the Company estimates the SSP considering available information such as market conditions and internally approved pricing guidelines related to the performance obligations.Most of the Company’s products and accessories are sold through domestic and international distributors. Performance obligations to deliver products and accessories are generally satisfied at the point in time the Company ships the product, as this is when the customer obtains control of the asset under our standard terms and conditions. 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 Company has elected to recognize shipping costs as an expense in cost of revenue when control has transferred to the customer.Time-based VR system contracts generally include setup, training and the use of software and hardware for a fixed term, generally one to five years and support and upgrade services during the same period. The Company does not sell time-based arrangements without setup, training and support services and therefore revenues for the entire arrangement are recognized on a straight-line basis over the term. When hardware is bundled and not sold separately the Company allocates the contract transaction price to each performance obligation using the SSP of each distinct good and service in the contract.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 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.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 cost of products sold.
Shipping and Handling Costs [Policy Text Block]	Shipping and Handling CostsShipping and handling costs are included in cost of revenues. Shipping and handling costs invoiced to customers are included in revenue. Actual shipping and handling costs were $296 and $167 for the years ended December 31, 2022 and 2021, respectively. Actual revenues from shipping and handling were $109 and $88 for the years ended December 31, 2022 and 2021, respectively.
Exit Activity Expenses [Policy Text Block]	Exit Activity ExpenseDuring 2021 the Company recorded $747 of product line exit costs related to the wind down and closure of the BolaWrap 100 product line related to a shift in production efforts to a new BolaWrap 150 generation product requiring new tooling, new production equipment and processes and additional licensing. These non-cash inventory costs included end of life raw material write offs of $641 and tooling retirement costs of $106.The $747 of exit costs were recorded as a component of cost of revenues. There was no such expense recorded during the year ended December 31, 2022. Development and start-up expense of new products are expensed as incurred except for capitalized equipment and tooling.
Standard Product Warranty, Policy [Policy Text Block]	Warranty ReservesThe Company warrants its products and accessories to be free from defects in materials and workmanship for a period of one year from the date of purchase. The warranty is generally limited. The Company currently provides direct warranty service. International market warranties are generally similar to the US market.The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenues are recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period. The warranty reserve was $125 and $96 at December 31, 2022 and 2021. Actual warranty costs could differ from estimates.
Segment Reporting, Policy [Policy Text Block]	Segment InformationASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. The Company operates as a single segment and will evaluate additional segment disclosure requirements as it expands its operations.
Income Tax, Policy [Policy Text Block]	Income TaxesNo income tax expense was recorded for the periods ended December 31, 2022 and 2021 due to losses incurred. Deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes.The Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry-forward period under the Federal tax laws. Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the realizability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimates.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting GuidanceIn October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”), to require that an acquirer recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”). At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The amendments in ASU 2021-08 should be applied prospectively and are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We do not expect the adoption of ASU 2021-08 to have a material impact on our consolidated financial statements and related disclosures.The Company has reviewed other 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.

Note 7 - Intangible Assets, Net (Details Textual) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2022	Dec. 31, 2021
Amortization of Intangible Assets		$ 287	$ 182
Impairment, Long-Lived Asset, Held-for-Use, Total	$ 170

Note 14 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Text Block]

14. COMMITMENTS AND CONTINGENCIES

Facility Lease

See Note 9.

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 $274 and $278 for royalties incurred during the years ended December 31, 2022 and 2021, respectively. Maximum payout still available under this arrangement is $280.

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”), which Agreement provides that the Service Provider will provide 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”), we are obligated to pay to the Service Provider (a) a cash payment upon the execution of the Agreement of $700, (b) a cash payment of $125 upon the completion of certain project delivery milestones expected in Q1and (c) a cash payment of $125 upon the final completion and delivery of the final Technology, Services, and License in Q2.

Purchase Commitments

At December 31, 2022 the Company was committed for approximately $3,626 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 arises in the ordinary course of its business.

Litigation

Securities Litigation

On November 15, 2021, the Hon. Dolly M. Gee of the US District Court for the Central District of California (the “Court”) granted the motion to dismiss filed by the Company, David Norris (“Norris”), James A. Barnes (“Barnes”), Thomas Smith (“Smith”), Mike Rothans (“Rothans”) and Marc Thomas (“Thomas”) (collectively, “Defendants”) in the action captioned In re Wrap Technologies, Inc. Securities Exchange Act Litigation (the “Securities Action”). The Court granted Defendants’ motion on the grounds that the complaint failed to identify any statement by Defendants that was either false or made with scienter. Concurrently, the Court granted Plaintiff leave to file a second amended complaint on or before December 6, 2021, noting that a failure to file a second amended complaint by that date would result in dismissal of the Securities Action with prejudice. On December 20, 2021, following Plaintiff’s failure to file a second amended complaint, the Court dismissed the Securities Action with prejudice.

Shareholder Derivative Litigation

On November 13, 2020, Naresh Rammohan filed a shareholder derivative action in the US District Court for the Central District of California against current and former Company officers as well as current and former Company directors alleging unjust enrichment, breach of fiduciary duty, waste of corporate assets, and contribution claims under the Securities Exchange Act of 1934, docketed as Case No. 2:20-cv-10444-DMG-PVCx. The derivative action was dismissed with prejudice by stipulation of the parties on May 3, 2022.

Consolidated Statements of Stockholders' Equity (Parentheticals)	Dec. 31, 2021 $ / shares
Warrants at $6.50 Per Share [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 6.50
Warrants at $8.125 Per Share [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 8.125

Note 16 - Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Text Block]

16. INCOME TAXES

Until its reverse recapitalization on March 31, 2017, the Company was treated as a partnership for federal and state income tax purposes and did not incur income taxes. The Company accounts for income taxes under ASC 740. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is "more likely than not" that some component or all of the benefits of deferred tax assets will not be realized.

The Company did not provide any current or deferred US federal income tax provision or benefit for the periods presented because of operating losses since inception. As of December 31, 2022, the Company has federal net operating loss carryforwards of approximately $51,774 to reduce future taxable income. Approximately $703 will expire in 2037 with the balance having an indefinite carryforward period. Certain changes in stock ownership can result in a limitation on the amount of net operating loss and tax credit carryovers that can be utilized each year. As of December 31, 2022, management has not determined the extent of any such limitations, if any. The Company is subject to taxation in the US and various state jurisdictions. All the Company’s historical tax years are subject to examination by the Internal Revenue Service and various state jurisdictions due to the generation of net operating losses and credit carryforwards.

The Company provided a full valuation allowance on the net deferred tax asset, consisting primarily of net operating loss carry forwards, because management has determined that it is more likely than not that the Company will not earn income sufficient to realize the deferred tax assets during the carry forward period. As a result of the change in future Federal statutory tax rates due to the passing of the Tax Cuts and Jobs Act of 2017, management determined that the deferred tax assets and liabilities should be valued at a federal statutory rate of 21%.

The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements for the periods ended December 31, 2022, and 2021 applicable under FASB ASC 740. The Company did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the balance sheet.

The provision for (benefit from) income taxes consist of the following:

	Year Ended December 31,
	2022			2021
Current tax benefit	$	-		$	-
Deferred tax benefit		3,756			6,409
Change in valuation allowance		(3,756	)		(6,409	)
Income tax benefit (provision)	$	-		$	-

A reconciliation of the provision for income taxes at the federal statutory rate of 21% to the Company’s provision for income tax is as follows:

	Year Ended December 31,
	2022			2021
Income taxes benefit computed at federal statutory rate	$	3,700		$	5,139
State income taxes, net of federal effect		345			480
Permanent differences and other		(289	)		790
Change in valuation allowance		(3,756	)		(6,409	)
Income tax benefit (provision)	$	-		$	-

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities for the periods presented:

	December 31,
	2022			2021
Deferred tax assets:
Net operating losses	$	14,898		$	11,773
Research tax credits		65			60
Stock compensation		1,216			847
Accruals and other		324			211
		16,503			12,891
Deferred tax liabilities:
Depreciation and other		534			678
		534			678
Net deferred tax assets		15,969			12,213
Less valuation allowance		(15,969	)		(12,213	)
Net deferred taxes after valuation allowance	$	-		$	-

In accordance with ASU 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting, the Company recognizes windfall tax benefits associated with the exercise of stock options as a component of tax expense (rather than equity). Accordingly, our federal and state operating loss carryforwards include net windfall tax deductions from stock option exercises and RSU vesting of approximately $(597) and $3,168 during the years ended December 31, 2022 and 2021, respectively.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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Note 6 - Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property and equipment, gross	$ 1,673	$ 1,416
Accumulated depreciation	(915)	(440)
Property and equipment, net	758	976
Production and Lab Equipment [Member]
Property and equipment, gross	513	500
Tooling [Member]
Property and equipment, gross	448	273
Computer Equipment [Member]
Property and equipment, gross	531	467
Furniture and Fixtures [Member]
Property and equipment, gross	$ 181	$ 176

Note 16 - Reconciliations of Federal Statutory Rate to Effective Income Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income taxes benefit computed at federal statutory rate	$ 3,700	$ 5,139
State income taxes, net of federal effect	345	480
Permanent differences and other	(289)	790
Change in valuation allowance	(3,756)	(6,409)
Income tax benefit (provision)	$ 0	$ 0

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

Note 9 - Lease (Tables)

12 Months Ended

Dec. 31, 2022

Lessee, Operating Lease, Disclosure [Table Text Block]

Operating lease liability- short term	$	108
Operating lease liability - long term		193
Total Operating Lease Liability	$	301

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

2023	$	121
2024		126
2025		75
Total future minimum lease payments		322
Less imputed interest		(21	)
Total	$	301

Note 1 - Organization and Summary of Significant Accounting Policies (Details Textual) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares
Common Stock, Par or Stated Value Per Share \| $ / shares	$ 0.0001	$ 0.0001
Number of Wholly-owned Subsidiaries	1
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount \| shares	6,413,546	5,596,853
Accounts Receivable, Allowance for Credit Loss, Ending Balance	$ 205	$ 134
Inventory Valuation Reserves	0	0
Advertising Expense	426	145
Marketing Expense	688	924
Cost of Revenue, Total	4,315	5,734
Revenue from Contract with Customer, Including Assessed Tax	7,481	7,381
Product Line Exit Expense	0	747
Write-off, Inventory Cost		641
Retiring Cost		106
Standard Product Warranty Accrual, Ending Balance	125	96
Shipping and Handling [Member]
Cost of Revenue, Total	296	167
Revenue from Contract with Customer, Including Assessed Tax	$ 109	$ 88

Note 2 - Revenue and Product Costs - Contract Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Balance	$ 265
Balance	333
Current portion	166	$ 155
Long-term portion	167	$ 110
Customer Deposits [Member]
Balance	43
Additions, net	0
Transfer to revenue	(43)
Balance	0
Current portion	0
Long-term portion	0
Deferred Revenue [Member]
Balance	265
Additions, net	301
Transfer to revenue	(233)
Balance	333
Current portion	166
Long-term portion	$ 167

Note 11 - Stockholders' Equity

12 Months Ended

Dec. 31, 2022

Stockholders' Equity Note Disclosure [Text Block]

11. STOCKHOLDERS’ EQUITY

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

During the year ended December 31, 2021, the Company received proceeds of $12,047 from the exercise of 1,815,012 warrants. At December 31, 2021 the Company had outstanding Common Stock purchase warrants exercisable for 1,391,667 shares that expired on June 1, 2022, and had no purchase warrants outstanding at December 31, 2022.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Note 3 - Asset Acquisition

12 Months Ended

Dec. 31, 2022

Business Combination Disclosure [Text Block]

3. ASSET ACQUISITION

On November 22, 2022, Wrap Technologies, Inc. (the “Company”), entered into a Professional Services and Technology Acquisition Agreement (the “Agreement”) with Lumeto, Inc. and Spatial Industries Group, Inc. (collectively, “Service Provider”), pursuant to which Service Provider will provide 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 exchange for (a) a cash payment upon the execution of the Agreement of $700, (b) a cash payment of $125 upon the completion of certain project delivery deadlines, with such delivery deadline projected to be on February 13, 2023, and (c) a cash payment of $125 upon the completion and delivery of the final Technology, Services, and License. Among other things, the Company expects to realize the benefit of an upgraded cloud virtual reality platform as well as capabilities and resources to support its growth of law enforcement and corrections virtual reality training modules and enhanced capabilities. Identified intangible assets associated with this acquisition included software of $700. The useful life of the software is 3 years. There is no assumed residual value for the software.

Note 10 - Debt

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Text Block]

10. DEBT

The Company’s debt at December 31, 2022 and 2021 included operating lease liabilities (see Note 9). The Company’s debt at December 31, 2021 also included business acquisition liabilities.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Note 12 - Share-based Compensation - Information Regarding Stock Options Outstanding (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Exercise Price Range One [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share)	$ 1.50
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share)	$ 2.27
Number outstanding (in shares) \| shares	820,750
Options outstanding, weighted average remaining contractual term (Year)	4 months 20 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 1.62
Options exercisable, number of shares (in shares) \| shares	481,750
Options exercisable, weighted average exercise price (in dollars per share)	$ 1.50
Exercise Price Range Two [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share)	2.55
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share)	$ 3.83
Number outstanding (in shares) \| shares	876,409
Options outstanding, weighted average remaining contractual term (Year)	10 months 13 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 2.92
Options exercisable, number of shares (in shares) \| shares	35,000
Options exercisable, weighted average exercise price (in dollars per share)	$ 3.61
Exercise Price Range Three [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share)	3.85
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share)	$ 5.78
Number outstanding (in shares) \| shares	2,050,010
Options outstanding, weighted average remaining contractual term (Year)	2 years 2 months 8 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 5.24
Options exercisable, number of shares (in shares) \| shares	1,869,613
Options exercisable, weighted average exercise price (in dollars per share)	$ 5.28
Exercise Price Range Four [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share)	5.88
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share)	$ 8.82
Number outstanding (in shares) \| shares	130,000
Options outstanding, weighted average exercise price (in dollars per share)	$ 6.42
Options exercisable, number of shares (in shares) \| shares	78,747
Options exercisable, weighted average exercise price (in dollars per share)	$ 6.36

Note 12 - Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

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

				Weighted Average
	Options on					Remaining		Aggregate
	Common			Exercise		Contractual		Intrinsic
	Shares			Price		Term		Value
Outstanding January 1, 2022		3,935,883		$	5.24		4.79
Granted		4,153,885		$	3.64
Exercised		(55,500	)	$	1.50
Forfeited, cancelled, expired		(2,542,869	)	$	5.79
Outstanding December 31, 2022		5,491,399		$	3.72		5.96	$	92
Exercisable December 31, 2022		2,465,110		$	4.55		2.13	$	92

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

	For the Year Ended
	December 31,
	2022			2021
Expected stock price volatility		49	%		50	%
Risk-free interest rate		2.47	%		0.90	%
Forfeiture rate		0	%		0	%
Expected dividend yield		0	%		0	%
Expected life of options - years		5.96			5.74
Weighted-average fair value of options granted	$	0.88		$	2.57

Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block]

				Weighted
				Average		Weighted				Weighted
				Remaining		Average				Average
Range of		Number		Contractual		Exercise		Number		Exercise
Exercise Prices		Outstanding		Life (Years)		Price		Exercisable		Price
$	1.50 –2.27		820,750		0.39	$	1.62		481,750	$	1.50
$	2.55 –3.83		876,409		0.87	$	2.92		35,000	$	3.61
$	3.85 –5.78		2,050,010		2.19	$	5.24		1,869,613	$	5.28
$	5.88 –8.82		130,000		6.25	$	6.42		78,747	$	6.36

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

				Weighted Average		Weighted Average
	Service-Based			Grant Date		Vesting
	RSU's			Fair Value		Period (Years)
Unvested at January 1, 2021		428,006		$	6.13		2.3
Granted - service based		398,662		$	5.59
Vested		(524,491	)	$	5.55
Forfeited and cancelled		(32,874	)	$	6.10
Unvested at December 31, 2021		269,303		$	6.47		2.0
Granted - service based		988,850		$	2.49
Vested		(268,548	)	$	4.13
Forfeited and cancelled		(67,273	)	$	6.45
Unvested at December 31, 2022		922,057		$	2.88		2.11

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

	For the Year Ended
	December 31,
	2022		2021
Selling, general and administrative	$	2,684	$	4,558
Research and development		541		798
Total share-based expense	$	3,225	$	5,356

Note 17 - Major Customers and Related Information (Tables)

12 Months Ended

Dec. 31, 2022

Disaggregation of Revenue [Table Text Block]

	For the Year
	Ended December 31,
	2022		2021
Americas	$	5,315	$	3,357
Europe, Middle East and Africa		2,487		2,385
Asia Pacific		247		1,987
Total revenues	$	8,049	$	7,729

Note 6 - Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Table Text Block]

	December 31,
	2022			2021
Production and lab equipment	$	513		$	500
Tooling		448			273
Computer equipment		531			467
Furniture, fixtures and improvements		181			176
		1,673			1,416
Accumulated depreciation		(915	)		(440	)
Property and equipment, net	$	758		$	976

Note 9 - Lease - Summary of Operating Lease Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Operating lease liability - short term	$ 108	$ 56
Operating lease liability - long term	193	$ 0
Total Operating Lease Liability	$ 301

Note 5 - Inventories, Net

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Text Block]

5. INVENTORIES, NET

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:

	December 31,
	2022		2021
Finished goods	$	2,293	$	1,027
Work in process		-		2
Raw materials		1,682		537
Inventories - net	$	3,975	$	1,566

As part of product line exit costs end of life raw material costs aggregating $621 were written off during the year ended December 31, 2021.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash Flows From Operating Activities:
Net loss	$ (17,617)	$ (24,449)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	762	478
Share-based compensation	3,225	5,356
Common shares issued for services	0	239
Product line exit expense	0	747
Gain on sale of assets	0	(27)
Warranty provision	210	10
Software impairment charge	0	170
Change in contingent liability	0	(23)
Non-cash lease expense	101	88
Provision for doubtful accounts	72	123
Changes in assets and liabilities:
Accounts receivable	957	(2,111)
Inventories	(2,410)	559
Prepaid expenses and other current assets	93	(109)
Accounts payable	(360)	546
Operating lease liability	(91)	(94)
Customer deposits	(43)	41
Accrued liabilities and other	611	(54)
Warranty settlement	(181)	38
Deferred revenue	68	249
Net cash used in operating activities	(14,603)	(18,223)
Cash Flows From Investing Activities:
Purchase of short-term investments	(30,466)	(55,014)
Proceeds from maturities of short-term investments	46,600	50,005
Capital expenditures for property and equipment	(256)	(995)
Proceeds from long-term deposits	(92)
Proceeds from long-term deposits		4
Net cash provided by (used in) investing activities	14,913	(6,937)
Cash Flows From Financing Activities:
Proceeds from exercise of warrants	0	12,047
Proceeds from exercise of stock options	83	1,678
Repayment of debt	0	(275)
Net cash provided by financing activities	83	13,450
Net (decrease) increase in cash and cash equivalents	393	(11,710)
Cash and cash equivalents, beginning of period	4,937	16,647
Cash and cash equivalents, end of period	5,330	4,937
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Change in unrealized gain on short-term investments	100	(21)
Right-of-use asset and liability recorded during period	234	0
Patents and Trademarks [Member]
Cash Flows From Investing Activities:
Investment in patents and trademarks	(173)	(187)
Intangibles Other than Patents and Trademarks [Member]
Cash Flows From Investing Activities:
Investment in patents and trademarks	$ (700)	$ (750)

Note 2 - Revenue and Product Costs (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Contract with Customer, Liability, Total	$ 333	$ 265
Contract with Customer, Asset, after Allowance for Credit Loss, Total	0	0
Virtual Reality Training [Member]
Contract with Customer, Liability, Total	198	172
Training [Member]
Contract with Customer, Liability, Total	11
Extended Product Warranties [Member]
Contract with Customer, Liability, Total	$ 124	$ 67

Consolidated Balance Sheets (Parentheticals) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
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
Preferred Stock, Shares Issued (in shares)	0	0
Preferred Stock, Shares Outstanding, Ending Balance (in shares)	0	0
Common Stock, Shares Authorized (in shares)	150,000,000	150,000,000
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, Shares, Issued (in shares)	41,175,993	40,851,945
Common Stock, Shares, Outstanding, Ending Balance (in shares)	41,175,993	40,851,945

Note 15 - Related Party Transactions

12 Months Ended

Dec. 31, 2022

15. RELATED PARTY TRANSACTIONS

Commencing in October 2017 the Company began reimbursing Mr. Elwood Norris, a former officer and current stockholder and consultant of the Company, $1.5 per month on a month-to-month basis for laboratory facility expense, for an aggregate of $18 during the years months ended December 31, 2022, and 2021, respectively. Mr. Norris retired as the Company’s Chief Technology Officer effective June 30, 2021 and commencing July 1 was engaged as a month-to-month consultant. A greater than 10% stockholder, Mr. Norris was paid a monthly fee of $7.5 per month for aggregate consulting payments of $90 for the period ended December 31, 2022, and $45 for the six-month period ended December 31, 2021.

See Notes 8 and 14 for additional information on related party transactions and obligations.

Note 4 - Financial Instruments - Instruments by Significant Investment Category (Details) - Fair Value, Inputs, Level 1 [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Adjusted cost	$ 16,853	$ 31,659
Unrealized gains	100	0
Unrealized losses	0	(6)
Market value	16,953	31,653
Money Market Funds [Member]
Adjusted cost	3,004	1,670
Unrealized gains	0	0
Unrealized losses	0	0
Market value	3,004	1,670
US Treasury Securities Considered Cash Equivalents [Member]
Adjusted cost	9,849	29,989
Unrealized gains	100	0
Unrealized losses	0	(6)
Market value	9,949	$ 29,983
Certificates of Deposit [Member]
Adjusted cost	4,000
Unrealized gains	0
Unrealized losses	0
Market value	$ 4,000

Note 2 - Revenue and Product Costs

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Text Block]

2. REVENUE AND PRODUCT COSTS

Revenues consist of product revenue and other revenue. Product sales include BolaWrap products and accessories. Other revenue includes VR revenues, service, training and shipping revenues.

The table below details the activity in our contract liabilities during the year ended December 31, 2022.

	Customer			Deferred
	Deposits			Revenue
Balance at January 1, 2022	$	43		$	265
Additions, net		-			301
Transfer to revenue		(43	)		(233	)
Balance at December 31, 2022	$	-		$	333
Current portion	$	-		$	166
Long-term portion	$	-		$	167

At December 31, 2022, the Company’s deferred revenue of $333 thousand of deferred revenue at December 31, 2022, of which $198 thousand related to VR, $11 thousand was related to training and $124 thousand related to BolaWrap extended warranties and services. At December 31, 2021, the Company’s deferred revenue of $265 consisted of $172 related to VR training and $67 related to extended warranties and services.

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 and amortized consistent with the recognition timing of the revenue for any such underlying performance obligations. The Company had no such assets at December 31, 2022 and 2021. The Company will apply the practical expedient to expense any sales commissions related to performance obligations with an amortization of one year or less when incurred within selling, general and administrative expense.

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.

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Note 8 - Accounts Payable and Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Patent and legal costs	$ 135	$ 28
Accrued compensation	1,100	628
Warranty costs	125	96
Taxes and other	103	72
Accrued Liabilities, Current, Total	$ 1,463	$ 824

Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Dec. 31, 2022	Feb. 28, 2023	Jun. 30, 2022
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 76,245,419
Entity Common Stock, Shares Outstanding (in shares)		41,256,885
Auditor Firm ID	89
Auditor Name	Rosenberg Rich Baker Berman, P.A.
Auditor Location	Somerset, New Jersey
Entity Central Index Key	0001702924
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false

Note 11 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Common Stock, Shares Authorized	150,000,000	150,000,000
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Proceeds from Warrant Exercises	$ 0	$ 12,047
Class of Warrant or Right, Exercised During Period		1,815,012
Class of Warrant or Right, Outstanding	0	1,391,667

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member] Warrants at $6.50 Per Share [Member]	Common Stock [Member] Warrants at $8.125 Per Share [Member]	Common Stock [Member]	Additional Paid-in Capital [Member] Warrants at $6.50 Per Share [Member]	Additional Paid-in Capital [Member] Warrants at $8.125 Per Share [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member] Warrants at $6.50 Per Share [Member]	Retained Earnings [Member] Warrants at $8.125 Per Share [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member] Warrants at $6.50 Per Share [Member]	AOCI Attributable to Parent [Member] Warrants at $8.125 Per Share [Member]	AOCI Attributable to Parent [Member]	Warrants at $6.50 Per Share [Member]	Warrants at $8.125 Per Share [Member]	Total
Balance			$ 4			$ 71,705			$ (25,310)			$ 15			$ 46,414
Balance (in shares) at Dec. 31, 2020			37,554,162
Balance at Dec. 31, 2020			$ 4			71,705			(25,310)			15			46,414
Common shares issued upon exercise of warrants (in shares)	1,661,320	153,692
Common shares issued upon exercise of warrants	$ 0	$ 0		$ 10,798	$ 1,249		$ 0	$ 0		$ 0	$ 0		$ 10,798	$ 1,249
Common shares issued upon exercise of stock options (in shares)			915,404
Common shares issued upon exercise of stock options			$ 0			1,678			0			0			1,678
Common shares issued upon vesting of restricted stock units (in shares)			524,491
Common shares issued upon vesting of restricted stock units			$ 0			0			0			0			0
Common shares issued for services (in shares)			42,876
Common shares issued for services			$ 0			239			0			0			239
Share-based compensation expense			0			5,356			0			0			5,356
Net unrealized gain (loss) on short-term investments			0			0			0			(21)			(21)
Net loss			0			0			(24,449)			0			(24,449)
Net loss for the period			$ 0			0			(24,449)			0			(24,449)
Balance (in shares) at Dec. 31, 2021			40,851,945
Balance			$ 4			91,025			(49,759)			(6)			41,264
Balance at Dec. 31, 2021			$ 4			91,025			(49,759)			(6)			$ 41,264
Common shares issued upon exercise of stock options (in shares)			55,500												55,500
Common shares issued upon exercise of stock options			$ 0			83			0			0			$ 83
Common shares issued upon vesting of restricted stock units (in shares)			268,548
Common shares issued upon vesting of restricted stock units			$ 0			0			0			0			0
Share-based compensation expense			0			3,225			0			0			3,225
Net unrealized gain (loss) on short-term investments			0			0			0			100			100
Net loss			0			0			(17,617)			0			(17,617)
Net loss for the period			$ 0			0			(17,617)			0			(17,617)
Balance (in shares) at Dec. 31, 2022			41,175,993
Balance			$ 4			$ 94,333			$ (67,376)			$ 94			$ 27,055

Note 6 - Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2022	Dec. 31, 2021
Depreciation, Total		$ 475	$ 297
Production Costs, Period Cost	$ 106

Note 17 - Major Customers and Related Information

12 Months Ended

Dec. 31, 2022

Concentration Risk Disclosure [Text Block]

17. MAJOR CUSTOMERS AND RELATED INFORMATION

Major Customers

For the year ended December 31, 2022, revenues from two distributors accounted for approximately 36% and 25% of revenues with no other single customer accounting for more than 10% of total revenues. Accounts receivable from one distributor accounted for 70% of net accounts receivable at December 31, 2022.

For the year ended December 31, 2021, revenues from three distributors accounted for approximately 26%, 19% and 17% of revenues with no other single customer accounting for more than 10% of total revenues. Accounts receivable from three distributors accounted for 48%, 16% and 15% of net accounts receivable at December 31, 2021.

The following table summarizes revenues by geographic region. Revenues are attributed to countries based on customer’s delivery location.

	For the Year
	Ended December 31,
	2022		2021
Americas	$	5,315	$	3,357
Europe, Middle East and Africa		2,487		2,385
Asia Pacific		247		1,987
Total revenues	$	8,049	$	7,729

See Note 1 – Concentrations of Risks for information on reliance on suppliers.

Note 9 - Lease - Future Lease Payments (Details) $ in Thousands	Dec. 31, 2022 USD ($)
2023	$ 121
2024	126
2025	75
Total future minimum lease payments	322
Less imputed interest	(21)
Total	$ 301

Note 16 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Net operating losses	$ 14,898	$ 11,773
Research tax credits	65	60
Stock compensation	1,216	847
Accruals and other	324	211
Deferred Tax Assets, Gross, Total	16,503	12,891
Depreciation and other	534	678
Deferred Tax Liabilities, Gross, Total	534	678
Net deferred tax assets	15,969	12,213
Less valuation allowance	(15,969)	(12,213)
Net deferred taxes after valuation allowance	$ 0	$ 0

Note 12 - Share-based Compensation - Summary of Stock Option Valuation Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Forfeiture rate	0.00%	0.00%
Weighted-average fair value of options granted (in dollars per share)	$ 0.88	$ 2.57
Share-Based Payment Arrangement, Option [Member]
Expected stock price volatility	49.00%	50.00%
Risk-free interest rate	2.47%	0.90%
Expected dividend yield	0.00%	0.00%
Expected life of options - years (Year)	5 years 11 months 15 days	5 years 8 months 26 days

Note 12 - Share-based Compensation - Allocation of Share-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based expense	$ 3,225	$ 5,356
Selling, General and Administrative Expenses [Member]
Share-based expense	2,684	4,558
Research and Development Expense [Member]
Share-based expense	$ 541	$ 798

Note 12 - Share-based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Options on Common Shares, Outstanding (in shares)	3,935,883
Outstanding, weighted average exercise price (in dollars per share)	$ 5.24
Outstanding, remaining contractual term (Year)	5 years 11 months 15 days	4 years 9 months 14 days
Options on Common Shares, Granted (in shares)	4,153,885
Granted, weighted average exercise price (in dollars per share)	$ 3.64
Options on Common Shares, Exercised (in shares)	(55,500)
Exercised, weighted average exercise price (in dollars per share)	$ 1.50
Options on Common Shares, Forfeited, cancelled, expired (in shares)	(2,542,869)
Forfeited, cancelled, expired, weighted average exercise price (in dollars per share)	$ 5.79
Options on Common Shares, Outstanding (in shares)	5,491,399	3,935,883
Outstanding, weighted average exercise price (in dollars per share)	$ 3.72	$ 5.24
Outstanding, aggregate intrinsic value	$ 92
Exercisable, shares (in shares)	2,465,110
Exercisable, weighted average exercise price (in dollars per share)	$ 4.55
Exercisable, weighted average contractual term (Year)	2 years 1 month 17 days
Exercisable, aggregate intrinsic value	$ 92

Note 5 - Inventories, Net - Summary of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Finished goods		$ 2,293	$ 1,027
Work in process		0	2
Raw materials		1,682	537
Inventories - net	$ 3,975	$ 3,975	$ 1,566

Note 16 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Year Ended December 31,
	2022			2021
Current tax benefit	$	-		$	-
Deferred tax benefit		3,756			6,409
Change in valuation allowance		(3,756	)		(6,409	)
Income tax benefit (provision)	$	-		$	-

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year Ended December 31,
	2022			2021
Income taxes benefit computed at federal statutory rate	$	3,700		$	5,139
State income taxes, net of federal effect		345			480
Permanent differences and other		(289	)		790
Change in valuation allowance		(3,756	)		(6,409	)
Income tax benefit (provision)	$	-		$	-

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	December 31,
	2022			2021
Deferred tax assets:
Net operating losses	$	14,898		$	11,773
Research tax credits		65			60
Stock compensation		1,216			847
Accruals and other		324			211
		16,503			12,891
Deferred tax liabilities:
Depreciation and other		534			678
		534			678
Net deferred tax assets		15,969			12,213
Less valuation allowance		(15,969	)		(12,213	)
Net deferred taxes after valuation allowance	$	-		$	-

Note 7 - Intangible Assets, Net

12 Months Ended

Dec. 31, 2022

Intangible Assets Disclosure [Text Block]

7. INTANGIBLE ASSETS, NET

Intangible assets consisted of the following:

	December 31,
	2022			2021
Amortizable intangible assets:
Patents	$	575		$	416
Trademarks		150			134
Purchased software		1,962			1,212
Other		-			50
		2,687			1,812
Accumulated amortization		(462	)		(174	)
Total amortizable		2,225			1,638
Indefinite life assets (non-amortizable)		344			344
Total intangible assets, net	$	2,569		$	1,982

Amortization expense was $287 and $182 for the years ended December 31, 2022 and 2021, respectively. An additional impairment charge of $170 for purchased software was recorded in the second quarter of 2021.

At December 31, 2022, annual amortization of intangible assets, based upon the Company’s existing intangible assets and current useful lives, is estimated to be the following:

2023	$	498
2024		518
2025		513
2026		212
2027		42
Thereafter		442
Total estimated amortization expense	$	2,225

Note 12 - Share-based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares	1 Months Ended	12 Months Ended
	Apr. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Awards other than options, unvested (in shares)		269,303	428,006
Awards other than options, unvested, weighted average grant date fair value (in dollars per share)		$ 6.47	$ 6.13
Unvested, vesting period (Year)		2 years 1 month 9 days	2 years	2 years 3 months 18 days
Awards other than options, Granted (in shares)	175,173	988,850	398,662
Awards other than options, granted, weighted average grant date fair value (in dollars per share)		$ 2.49	$ 5.59
Awards other than options, Vested (in shares)			(524,491)
Awards other than options, vested, weighted average grant date fair value (in dollars per share)		$ 4.13	$ 5.55
Awards other than options, Forfeited and cancelled (in shares)		(67,273)	(32,874)
Awards other than options, forfeited and cancelled, weighted average grant date fair value (in dollars per share)		$ 6.45	$ 6.10
Awards other than options, unvested (in shares)		922,057	269,303	428,006
Awards other than options, unvested, weighted average grant date fair value (in dollars per share)		$ 2.88	$ 6.47	$ 6.13

Note 17 - Major Customers and Related Information - Disaggregation of Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2022	Dec. 31, 2021
Americas	$ 8,049	$ 7,729	$ 8,049	$ 7,729
Americas [Member]
Americas	5,315	3,357
Europe, Middle East and Africa [Member]
Americas	2,487	2,385
Asia Pacific [Member]
Americas	$ 247	$ 1,987

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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Note 5 - Inventories, Net (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Inventory, Current [Table Text Block]

	December 31,
	2022		2021
Finished goods	$	2,293	$	1,027
Work in process		-		2
Raw materials		1,682		537
Inventories - net	$	3,975	$	1,566

Note 3 - Asset Acquisition (Details Textual) - Professional Services and Technology Acquisition Agreement [Member] - USD ($) $ in Thousands		12 Months Ended
	Nov. 22, 2022	Dec. 31, 2022
Payments to Acquire Businesses, Gross	$ 700	$ 700
Finite-Lived Intangible Assets Acquired	$ 700
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life	3 years
February 13 Delviery [Member]
Business Combination, Contingent Consideration, Liability, Total	$ 125	125
Final Delivery of Technology, Services, and License [Member]
Business Combination, Contingent Consideration, Liability, Total	$ 125	$ 125

Note 9 - Lease (Details Textual) - USD ($)	12 Months Ended
Note 9 - Lease (Details Textual) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Operating Lease, Right-of-Use Asset, Amortization Expense	$ 101,000	$ 88,000
Operating Lease, Expense	$ 118,000	95,000
Operating Lease, Weighted Average Remaining Lease Term	2 years 6 months 29 days
Operating Lease, Weighted Average Discount Rate, Percent	5.00%
Variable Lease, Cost	$ 39,000	29,000
Short-Term Lease, Cost	$ 11	$ 0

Note 1 - Organization and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

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

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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, the Middle East and Asia.

Principles of Consolidation

The Company has one wholly owned subsidiary, Wrap Reality, Inc. formed in December 2020 that sells a virtual reality (“VR”) training system primarily targeting law enforcement agencies. The consolidated financial statements include the accounts of this subsidiary after elimination of intercompany transactions and accounts.

Basis of Presentation and Use of Estimates

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the US of America (“US GAAP”). The preparation of financial statements in conformity with accounting principles generally accepted in the US of America requires management to make estimates and assumptions (e.g., share-based compensation valuation, allowance for doubtful accounts, valuation of inventory and intangible assets, warranty reserve, accrued costs, valuation allowance related to deferred tax assets 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 revenues and expenses during the reporting period. Actual results could materially differ from those estimates.

Concentrations of Risk

Credit Risk – Financial instruments that potentially subject the Company to concentration of credit risk consisted primarily of cash, cash equivalents, US treasury bills and accounts receivable from customers. The Company maintains its cash and cash equivalent deposits at two domestic financial institutions. The Company is exposed to credit risk in the event of default by a financial institution to the extent that cash and cash equivalents are in excess of the amount insured by the Federal Deposit Insurance Corporation. The Company places its cash and cash equivalents with high-credit quality financial institutions and are managed within established guidelines to mitigate risks. To date, the Company has not experienced any losses on its cash and cash equivalents.

Concentrations of Accounts Receivable and Revenue – The Company has a limited number of domestic and international customers. The Company may experience concentrations in both accounts receivable and revenue due to the timing of sales and collections of related payments (see Note 17).

Concentration of Suppliers – The Company assembles its BolaWrap products in-house using components and subassemblies from a limited number of suppliers and contract suppliers. In particular, a single supplier is currently the sole manufacturer of the BolaWrap battery assembly, and another single supplier is the sole manufacturer of the propulsion component for BolaWrap cassettes. Other parts are solely sourced from other suppliers. If supplier shortages or logistic delays occur, or quality problems arise, production schedules could be significantly delayed or costs significantly increased, which could in turn have a material adverse effect on the Company’s financial condition, results of operation and cash flows.

Impact of COVID-19 – In December 2019, a novel strain of coronavirus (“COVID-19”) emerged in China. In March 2020, the World Health Organization declared the outbreak as a pandemic. The extent to which the coronavirus impacts our operations will continue to depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the outbreak, new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact, among others. In particular, the continued spread of the coronavirus globally and emergence of new strains could adversely impact our operations, including our manufacturing, logistics and supply chain. Our operations could be negatively affected if employees are quarantined as the result of exposure to a contagious illness. Similarly, travel restrictions resulting from the rapid spread of contagious illnesses may have a material adverse effect on our business and results of operations.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents consist primarily of amounts invested in Money Market Funds and US (“US”) Treasury bills and are stated at fair value.

Short-Term Investments

The Company’s short-term investments consist of US Treasury bills with original maturities beyond three months at the date of purchase and one year or less from the balance sheet date. As of December 31, 2021, all of the Company’s short-term investments were classified as available-for-sale and are carried at estimated fair value with any unrealized gains and losses, unrelated to credit loss factors, included in other comprehensive income in our consolidated statements of stockholders’ equity.

Share-Based Compensation

The Company follows the fair value recognition provisions issued by the FASB in ASC Topic 718, Stock Compensation (“ASC 718”) and has adopted Accounting Standards Update (“ASU”) 2018-07 for share-based transactions with non-employees. Share-based compensation expense recognized during 2022 and 2021 includes stock option and restricted stock unit compensation expense. The grant date fair value of stock options is determined using the Black-Scholes option-pricing model. The grant date is the date at which an employer and employee or non-employee reach a mutual understanding of the key terms and conditions of a share-based payment award and approved by the Company’s Board of Directors. The Black-Scholes option-pricing model requires inputs including the market price of the Company’s Common Stock on the date of grant, the term that the stock options are expected to be outstanding, the implied stock volatilities of several publicly traded peers over the expected term of stock options, risk-free interest rate and expected dividend. Each of these inputs is subjective and generally requires significant judgment to determine. The grant date fair value of restricted stock units is based upon the market price of the Company’s Common Stock on the date of the grant. We determine the amount of share-based compensation expense based on awards that we ultimately expect to vest and account for forfeitures as they occur. The fair value of share-based compensation is amortized to compensation expense over the vesting term.

Loss per Share

Basic loss per common share is computed by dividing net loss for the period by the weighted-average number of shares of Common Stock outstanding during the period. Diluted net loss per common share reflects the potential dilution of securities that could share in the earnings of an entity. The Company’s losses for the periods presented cause the inclusion of potential Common Stock instruments outstanding to be antidilutive. Stock options and restricted stock units exercisable or issuable for a total of 6,413,546 and 5,596,853 shares of Common Stock were outstanding at December 31, 2022 and 2021, 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.

Accounts Receivable and Allowance for Credit Losses

ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The expected credit losses are developed using an estimated loss rate method that considers historical collection experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The estimated loss rates are applied to accounts receivables with similar risk characteristics such as the length of time the balance has been outstanding and the location of the customer. In certain instances, the Company may identify individual accounts receivable assets that do not share risk characteristics with other accounts receivables, in which case the Company records its expected credit losses on an individual asset basis. If an accounts receivable asset is evaluated on an individual basis, the Company excludes those assets from the portfolios of accounts receivables evaluated on a collective basis.

At December 31, 2022 and 2021, the Company had an allowance for credit losses related to accounts receivable of $205 and $134, respectively. If a major customer’s creditworthiness deteriorates, or actual defaults exceed our historical experience, such estimates could change and impact our future reported financial results.

Inventories

Inventories are valued 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. Inventory is comprised of raw materials, assemblies and finished products intended for sale to customers. The Company evaluates the need for reserves for excess and obsolete inventories determined primarily based upon estimates of future demand for the Company’s products.

At December 31, 2022 and 2021 the Company had no reserve for obsolescence.

Property, Equipment and Depreciation

Property and equipment is stated at cost. Depreciation on property and equipment is computed over the estimated useful lives of three years using the straight-line method. On any retirement or disposition of property and equipment, the related cost and accumulated depreciation or amortization is removed, and a gain or loss recorded.

Business Combinations

Transactions in which the Company obtains control of a business are accounted for according to the acquisition method as described in ASC 805, Business Combinations. The assets acquired and liabilities assumed are recognized and measured at their fair values as of the date control is obtained. The Company measures goodwill as the excess of consideration transferred, which the Company also measures at fair value, over the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed. Acquisition related costs in connection with a business combination are expensed as incurred. Contingent consideration is recognized and measured at fair value at the acquisition date and until paid is re-measured on a recurring basis and classified as a liability.

Intangible Assets

Intangible assets consist of (a) capitalized legal fees and filing costs related to obtaining patents and trademarks, (b) tradenames and software, (c) purchased software, and (d) the purchase cost of indefinite-lived website domains. The estimated useful lives of identifiable intangible assets with definite useful lives have been estimated to be between one and twenty years. Purchased website domain costs with an indefinite useful life are not subject to amortization, but are subject to an annual impairment test, by comparing their carrying amount with their corresponding fair value. For any given intangible asset with an indefinite useful life, if its fair value exceeds its carrying amount no impairment loss shall be recognized.

The carrying value of intangibles is periodically reviewed and impairments, if any, are recognized when the future undiscounted cash flows realized from the assets is less than its carrying value.

Impairment of Long-Lived Assets

Long-lived assets and identifiable intangibles held for use are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of undiscounted expected future cash flows is less than the carrying amount of the asset or if changes in facts and circumstances indicate, an impairment loss is recognized and measured using the asset’s fair value. The Company did not recognize any other impairment loss during the years ended December 31, 2022 and 2021.

Classification and Valuation of Warrants

The Company accounts for warrants as either equity or liabilities based upon the characteristics and provisions of each particular instrument. Warrants valued and classified as equity are recorded as additional paid-in capital based on the issue date fair value and no further adjustment to valuation is made. As of December 31, 2022, the Company has no warrants or other derivative financial instruments that require separate accounting as liabilities and periodic revaluation.

Advertising and Promotion Costs

Advertising costs are charged to expense as incurred and were $426 and $145 for the years ended December 31, 2022 and 2021, respectively. The Company also incurred product promotion costs for demonstration products delivered to prospective customers of $688 and $924 for the years ended December 31, 2022 and 2021, respectively. Advertising and promotion costs are included in selling, general and administrative expenses in the accompanying statements of operations.

Demonstration and Training Costs

The Company maintains a demonstration and training department as a part of its sales and marketing activities and does not charge for product demonstrations or training. Training is not a condition or requirement of sale as most sales are made through distributors to their end customers. The Company conducts local and regional in-person, webinar and on-line demonstrations and use of force and escalation training to support law enforcement agencies with no purchase requirement. Such training, when provided, may occur before or after initial or subsequent purchase or field deployment of the Company’s products. The Company believes that law enforcement trainers and officers that have seen demonstrations or have been trained about its products are more supportive of their departments purchase and deployment of product.

Research and Development Costs

Research and development costs are expensed as incurred.

Contract Manufacturers

The Company employs contract manufacturers for production of certain components and sub-assemblies. The Company may provide parts and components to such parties from time to time but recognizes no revenue or markup on such transactions.

Leases

The Company adopted ASC Topic 842, Leases (“Topic 842”) on January 1, 2019. In accordance with the guidance in Topic 842, the Company recognizes lease liabilities and corresponding right-of-use-assets for all leases with terms of greater than 12 months. Leases with a term of 12 months or less will be accounted for in a manner similar to the guidance for operating leases prior to the adoption of Topic 842. Refer to Note 9, Leases for more information.

Revenue Recognition

The Company adopted ASC Topic 606, Revenue from Contracts with Customers on January 1, 2018. The Company enters into contracts that include various combinations of products, accessories, software and services, each of which are generally distinct and are accounted for as separate performance obligations. Product sales include BolaWrap products and accessories. Other revenue includes VR revenues, service, training and shipping revenues.

A performance obligation is a promise in a contract to transfer a distinct good or service to a customer and is the unit of account in Topic 606. For contracts with a single performance obligation, the entire transaction price is allocated to the single performance obligation. For contracts with multiple performance obligations, the Company allocates the contract transaction price to each performance obligation using the Company’s estimate of the standalone selling price (“SSP” or “SSPs”) of each distinct good or service in a contract. The Company determines SSPs based on the relative SSP. If the SSP is not observable through past transactions, the Company estimates the SSP considering available information such as market conditions and internally approved pricing guidelines related to the performance obligations.

Most of the Company’s products and accessories are sold through domestic and international distributors. Performance obligations to deliver products and accessories are generally satisfied at the point in time the Company ships the product, as this is when the customer obtains control of the asset under our standard terms and conditions. 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 Company has elected to recognize shipping costs as an expense in cost of revenue when control has transferred to the customer.

Time-based VR system contracts generally include setup, training and the use of software and hardware for a fixed term, generally one to five years and support and upgrade services during the same period. The Company does not sell time-based arrangements without setup, training and support services and therefore revenues for the entire arrangement are recognized on a straight-line basis over the term. When hardware is bundled and not sold separately the Company allocates the contract transaction price to each performance obligation using the SSP of each distinct good and service in the contract.

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 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.

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 cost of products sold.

Shipping and Handling Costs

Shipping and handling costs are included in cost of revenues. Shipping and handling costs invoiced to customers are included in revenue. Actual shipping and handling costs were $296 and $167 for the years ended December 31, 2022 and 2021, respectively. Actual revenues from shipping and handling were $109 and $88 for the years ended December 31, 2022 and 2021, respectively.

Exit Activity Expense

During 2021 the Company recorded $747 of product line exit costs related to the wind down and closure of the BolaWrap 100 product line related to a shift in production efforts to a new BolaWrap 150 generation product requiring new tooling, new production equipment and processes and additional licensing. These non-cash inventory costs included end of life raw material write offs of $641 and tooling retirement costs of $106.

The $747 of exit costs were recorded as a component of cost of revenues. There was no such expense recorded during the year ended December 31, 2022. Development and start-up expense of new products are expensed as incurred except for capitalized equipment and tooling.

Warranty Reserves

The Company warrants its products and accessories to be free from defects in materials and workmanship for a period of one year from the date of purchase. The warranty is generally limited. The Company currently provides direct warranty service. International market warranties are generally similar to the US market.

The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenues are recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period. The warranty reserve was $125 and $96 at December 31, 2022 and 2021. Actual warranty costs could differ from estimates.

Segment Information

ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. The Company operates as a single segment and will evaluate additional segment disclosure requirements as it expands its operations.

Income Taxes

No income tax expense was recorded for the periods ended December 31, 2022 and 2021 due to losses incurred. Deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes.

The Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry-forward period under the Federal tax laws. Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the realizability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimates.

Recently Issued Accounting Guidance

In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”), to require that an acquirer recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”). At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The amendments in ASU 2021-08 should be applied prospectively and are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We do not expect the adoption of ASU 2021-08 to have a material impact on our consolidated financial statements and related disclosures.

The Company has reviewed other 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.

Note 17 - Major Customers and Related Information (Details Textual) - Customer Concentration Risk [Member]	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue Benchmark [Member] \| Distributors [Member]
Number of Major Customers	2	3
Revenue Benchmark [Member] \| Distributor One [Member]
Concentration Risk, Percentage	36.00%	26.00%
Revenue Benchmark [Member] \| Distributor Two [Member]
Concentration Risk, Percentage	25.00%	19.00%
Revenue Benchmark [Member] \| Distributor Three [Member]
Concentration Risk, Percentage		17.00%
Accounts Receivable [Member] \| Distributors [Member]
Number of Major Customers	2
Accounts Receivable [Member] \| Distributor One [Member]
Concentration Risk, Percentage	70.00%	48.00%
Accounts Receivable [Member] \| Distributor Two [Member]
Concentration Risk, Percentage		16.00%
Accounts Receivable [Member] \| Distributor Three [Member]
Concentration Risk, Percentage		15.00%

Note 4 - Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

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

	As of December 31, 2022
	Adjusted		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
Level 1:
Money Market Funds	$	3,004	$	-	$	-	$	3,004
US Treasury securities in short-term investments		9,849		100		-		9,949
Certificate of Deposits		4,000		-		-		4,000
Total Financial Assets	$	16,853	$	100	$	-	$	16,953

	As of December 31, 2021
	Adjusted		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Level 1:
Money Market Funds	$	1,670	$	-	$	-		$	1,670
US Treasury securities in short-term investments		29,989		-		(6	)		29,983
Total Financial Assets	$	31,659	$	-	$	(6	)	$	31,653

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

Note 7 - Intangible Assets, Net - Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
2023	$ 498
2024	518
2025	513
2026	212
2027	42
Thereafter	442
Total amortizable	$ 2,225	$ 1,638

Note 8 - Accounts Payable and Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Accrued Liabilities [Table Text Block]

	December 31,
	2022		2021
Patent and legal costs	$	135	$	28
Accrued compensation		1,100		628
Warranty costs		125		96
Taxes and other		103		72
	$	1,463	$	824

Schedule of Product Warranty Liability [Table Text Block]

	Year Ended December 31,
	2022			2021
Balance, beginning of period	$	96		$	48
Warranty settlements		(181	)		(62	)
Warranty provision		210			110
Balance, end of period	$	125		$	96

Note 16 - Income Taxes - Income Tax Expense (Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Current tax benefit	$ 0	$ 0
Deferred tax benefit	3,756	6,409
Change in valuation allowance	(3,756)	(6,409)
Income tax benefit (provision)	$ 0	$ 0

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

Note 12 - Share-based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Text Block]

12. 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 December 31, 2022, there were 1,556,291 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 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.

The following table summarizes stock option activity for the year ended December 31, 2022:

				Weighted Average
	Options on					Remaining		Aggregate
	Common			Exercise		Contractual		Intrinsic
	Shares			Price		Term		Value
Outstanding January 1, 2022		3,935,883		$	5.24		4.79
Granted		4,153,885		$	3.64
Exercised		(55,500	)	$	1.50
Forfeited, cancelled, expired		(2,542,869	)	$	5.79
Outstanding December 31, 2022		5,491,399		$	3.72		5.96	$	92
Exercisable December 31, 2022		2,465,110		$	4.55		2.13	$	92

At December 31, 2022, there were 3,877,169 service-based stock options outstanding, and 1,614,230 performance-based stock options outstanding, which performance-based stock options were granted in April 2022 to the Company’s Chief Executive Officer and President, subject to future market capitalization targets. 1,049,145 of the 4,153,885 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 Year Ended
	December 31,
	2022			2021
Expected stock price volatility		49	%		50	%
Risk-free interest rate		2.47	%		0.90	%
Forfeiture rate		0	%		0	%
Expected dividend yield		0	%		0	%
Expected life of options - years		5.96			5.74
Weighted-average fair value of options granted	$	0.88		$	2.57

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 US 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 newly appointed Chief Executive Officer and a newly appointed 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.

Stock option expense was $1,770 and $2,608 for the years ended December 31, 2022 and 2021, respectively.

The following table summarizes information about stock options outstanding at December 31, 2022:

				Weighted
				Average		Weighted				Weighted
				Remaining		Average				Average
Range of		Number		Contractual		Exercise		Number		Exercise
Exercise Prices		Outstanding		Life (Years)		Price		Exercisable		Price
$	1.50 –2.27		820,750		0.39	$	1.62		481,750	$	1.50
$	2.55 –3.83		876,409		0.87	$	2.92		35,000	$	3.61
$	3.85 –5.78		2,050,010		2.19	$	5.24		1,869,613	$	5.28
$	5.88 –8.82		130,000		6.25	$	6.42		78,747	$	6.36

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 years ended December 31, 2022 and 2021:

				Weighted Average		Weighted Average
	Service-Based			Grant Date		Vesting
	RSU's			Fair Value		Period (Years)
Unvested at January 1, 2021		428,006		$	6.13		2.3
Granted - service based		398,662		$	5.59
Vested		(524,491	)	$	5.55
Forfeited and cancelled		(32,874	)	$	6.10
Unvested at December 31, 2021		269,303		$	6.47		2.0
Granted - service based		988,850		$	2.49
Vested		(268,548	)	$	4.13
Forfeited and cancelled		(67,273	)	$	6.45
Unvested at December 31, 2022		922,057		$	2.88		2.11

A total of 175,173 RSUs 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.

RSU expense was $1,455 and $2,748 for the years ended December 31, 2022 and 2021, respectively.

Share-Based Compensation Expense

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

	For the Year Ended
	December 31,
	2022		2021
Selling, general and administrative	$	2,684	$	4,558
Research and development		541		798
Total share-based expense	$	3,225	$	5,356

As of December 31, 2022, total estimated compensation cost of stock options granted and outstanding but not yet vested was $3,327 which is expected to be recognized over the weighted average period of 3.38 years. As of December 31, 2022, total estimated compensation cost of RSUs granted and outstanding but not yet vested was $1,900 which is expected to be recognized over the weighted average period of 2.11 years.

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 5,330	$ 4,937
Short-term investments	13,949	29,983
Accounts receivable and contract assets, net	2,830	3,859
Inventories, net	3,975	1,566
Prepaid expenses and other current assets	775	868
Total current assets	26,859	41,213
Property and equipment, net	758	976
Operating lease right-of-use asset, net	285	51
Intangible assets, net	2,569	1,982
Other assets	100	9
Total assets	30,571	44,231
Current liabilities:
Accounts payable	1,419	1,779
Accrued liabilities	1,463	824
Customer deposits	0	43
Deferred revenue- short term	166	155
Operating lease liability - short term	108	56
Total current liabilities	3,156	2,857
Long-term liabilities:
Deferred revenue- long term	167	110
Operating lease liability - long term	193	0
Total long-term liabilities	360	110
Total liabilities	3,516	2,967
Commitments and contingencies (Note 9 and 13)
Stockholders' equity:
Preferred stock - 5,000,000 authorized; par value $0.0001 per share; none issued and outstanding	0	0
Common stock - 150,000,000 authorized; par value $0.0001 per share; 41,175,993 and 40,851,945 shares issued and outstanding each period, respectively	4	4
Additional paid-in capital	94,333	91,025
Accumulated deficit	(67,376)	(49,759)
Accumulated other comprehensive loss	94	(6)
Total stockholders' equity	27,055	41,264
Total liabilities and stockholders' equity	$ 30,571	$ 44,231

Note 15 - Related Party Transactions (Details Textual) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction, Amounts of Transaction		$ 18,000	$ 18,000
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	$ 45,000	$ 90,000

Note 7 - Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2022

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

	December 31,
	2022			2021
Amortizable intangible assets:
Patents	$	575		$	416
Trademarks		150			134
Purchased software		1,962			1,212
Other		-			50
		2,687			1,812
Accumulated amortization		(462	)		(174	)
Total amortizable		2,225			1,638
Indefinite life assets (non-amortizable)		344			344
Total intangible assets, net	$	2,569		$	1,982

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

2023	$	498
2024		518
2025		513
2026		212
2027		42
Thereafter		442
Total estimated amortization expense	$	2,225

Note 13 - Defined Contribution Plan (Details Textual) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 0

Amount of contribution received by defined benefit plan from employer which increases plan assets.

Note 7 - Intangible Assets, Net - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Amortizable intangible assets, gross	$ 2,687	$ 1,812
Accumulated amortization	(462)	(174)
Total amortizable	2,225	1,638
Indefinite life assets (non-amortizable)	344	344
Total intangible assets, net	2,569	1,982
Patents [Member]
Amortizable intangible assets, gross	575	416
Trademarks [Member]
Amortizable intangible assets, gross	150	134
Computer Software, Intangible Asset [Member]
Amortizable intangible assets, gross	1,962	1,212
Other Intangible Assets [Member]
Amortizable intangible assets, gross	$ 0	$ 50

Note 13 - Defined Contribution Plan

12 Months Ended

Dec. 31, 2022

Defined Contribution Plan [Text Block]

13. 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 the year ended December 31, 2022 was $0 respectively.

Note 5 - Inventories, Net (Details Textual) $ in Thousands	12 Months Ended
Note 5 - Inventories, Net (Details Textual) $ in Thousands	Dec. 31, 2021 USD ($)
Product Line Exit Costs [Member]
Inventory Write-down	$ 621

Note 2 - Revenue and Product Costs (Tables)

12 Months Ended

Dec. 31, 2022