Wrap Technologies enters U.S. Army counter-drone competition

September 17, 2025 7:02 AM EDT

Wrap Technologies Inc. (NASDAQ: WRAP) announced it submitted its counter-unmanned aircraft system for the U.S. Army's xTechCounter Strike competition, according to a company press release.

The Miami-based public safety technology company submitted Project Merlin-1KC, a system designed to disable small drones using tethered projectiles that entangle rotor blades. The system targets Group 1 drones without using electronic warfare or directed energy methods.

The U.S. Army competition seeks innovative counter-drone technologies to protect forces against small unmanned aerial threats. Selected participants may receive cash prizes, invitations to testing events, and potential contracting opportunities with the Department of Defense and NATO partners.

The Merlin-1KC system can integrate across multiple platforms including unmanned vehicles, turrets, vehicle mounts, and soldier-worn launchers. Company demonstrations showed multi-shot capabilities with ratios up to 6:1 against hostile drones. The system has an anticipated cost of less than $60 per shot.

Wrap's current production capacity can deliver 18,000 to 20,000 units monthly, with surge potential to 75,000 units within 90 days. The company operates with an 85% U.S.-based supply chain and plans to achieve 100% domestic production.

"We believe our MERLIN system represents a breakthrough in C-UAS offensive and defensive battlefield capacity," said Jared Novick, president and chief operating officer. "It is designed to flip the cost curve by providing the Army and allied forces with a sustainable and scalable solution against the growing threat of unmanned systems."

The submission represents Wrap's expansion beyond its primary law enforcement market, where it produces BolaWrap devices used by over 1,000 agencies across the U.S. and in 60 countries. The company has manufactured over 150,000 BolaWrap cartridges worldwide.



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