Are there any changes to the company’s balance sheet strength or debt levels that could affect leverage ratios?

Fundamental take‑away: The Q2 2025 release emphasizes “cost reductions, cash‑flow improvements and strategic repositioning.” Those three themes almost always translate into a stronger balance sheet: operating‑expense cuts lift EBITDA and free‑cash‑flow, which management can use to (1) replenish the cash reserve and (2) pay down existing debt. Although the release does not disclose the exact cash‑on‑hand or debt‑to‑equity figures, the language implies that the company is moving from a cash‑burn profile to a cash‑generation profile. In practice, such an operational pivot typically reduces net debt and improves leverage ratios (e.g., Debt/EBITDA and Net‑Debt/Equity) even if the actual debt balance is unchanged—because the denominator (EBITDA) is expanding while cash‑burn is being curtailed. In other words, the leverage headline is likely improving, which reduces financial risk and could support a higher valuation multiple.

Trading implication: If the balance‑sheet improvements are confirmed by the upcoming detailed 10‑Q (look for a rising cash‑balance line and a lower long‑term debt line), the stock may benefit from a “credit‑quality” upgrade in the eyes of both equity and fixed‑income investors. Expect the equity to react positively to a tighter debt‑to‑EBITDA ratio, especially in a sector where many peers still carry high leverage. Technically, WRAP has been trading around its 20‑day SMA and is poised to break above the recent resistance near $8.50 on volume‑supported upside; a breakout paired with a confirmed balance‑sheet upgrade could push the stock toward the $9‑$9.50 range. Conversely, a weak cash‑flow or a surprise debt increase would invalidate the upside thesis and could see the stock retest its 50‑day moving average near $7.80. Actionable: Monitor the next filing for exact cash and debt numbers; if cash rises >10% YoY and long‑term debt falls or stays flat, consider a long position with a stop just below the 20‑day SMA (≈$7.70). If the balance sheet shows no improvement, stay on the sidelines or consider a short‑term sell‑off on any upside breakout.