Core Insights - Wearable Devices Ltd. has released a significant update for its Mudra Link product, enhancing user experience with gesture-based media control and improved stability [1][6] - The new Media Control feature allows users to manage playback functions through natural hand gestures, eliminating the need for physical buttons [2][3] - The update builds on the previously introduced Gesture Mapper feature, which enables users to customize hand gestures for various digital actions [4][5] Product Features - The Mudra Link update includes gesture-based media control, allowing users to assign gestures like tap or pinch to playback functions [2][3] - The Gesture Mapper feature provides flexibility for users to personalize their interaction style across different applications and devices [4][5] - The firmware upgrade enhances performance and stability, ensuring users benefit from the latest features [6] Company Overview - Wearable Devices Ltd. specializes in AI-powered touchless sensing wearables, focusing on human-computer interaction [7] - The company operates through a dual-channel model, offering products directly to consumers and through enterprise licensing [8] - Wearable Devices aims to set the standard for neural input technology in the rapidly growing extended reality (XR) market [9]

Core Insights - Wearable Devices Ltd. has received approval for a patent titled "Gesture and Voice-Controlled Interface Device," enhancing its intellectual property portfolio and global protection for its innovations in wearable bio-potential sensors [1][2][4] Group 1: Patent and Technology Advancements - The newly allowed patent integrates gesture recognition with voice control, enabling personalized features and combining neural and voice-based user authentication for improved human-machine interaction [2][4] - The patented technology allows hands-free interaction across various applications, such as navigating maps and controlling smart home devices using natural gestures and voice commands [3][4] Group 2: Market Applications and User Experience - In smart home environments, users can control appliances through voice commands and fine-tune settings with gestures, while in clinical settings, medical professionals can interact with digital interfaces without compromising sterility [3][4] - The integration of voice and gesture-based interaction addresses the limitations of traditional voice control, enhancing precision, personalization, and security in user experiences [4] Group 3: Company Overview - Wearable Devices Ltd. specializes in AI-powered neural input technology for consumer and business markets, offering products like the Mudra Band and Mudra Link that facilitate touch-free interaction [5] - The company operates a dual-channel business model, focusing on direct-to-consumer sales and enterprise licensing, aiming to redefine user experiences in the rapidly growing XR market [5]

Core Viewpoint - Wearable Devices Ltd. has announced a warrant inducement transaction that will generate approximately $1.2 million in gross proceeds through the immediate exercise of existing warrants, aimed at enhancing working capital and supporting general corporate purposes [1][2]. Group 1: Warrant Inducement Transaction - The company has entered into a warrant inducement agreement with an institutional investor for the immediate exercise of existing warrants to purchase up to 625,000 ordinary shares (January Warrants) and 205,500 ordinary shares (November Warrants) at a reduced exercise price of $1.45 per share [1]. - The total gross cash proceeds from this transaction are expected to be around $1.2 million, before deducting fees and expenses [1]. - The closing of this transaction is anticipated to occur on or about April 30, 2025, subject to customary closing conditions [2]. Group 2: New Warrants and Private Placement - In exchange for the immediate exercise of the existing warrants, the investor will receive new unregistered warrants to purchase up to 1,661,000 ordinary shares at the same exercise price of $1.45 per share, which will be exercisable upon issuance and will expire five years later [2]. - The private placement of the new warrants will be conducted under an exemption from registration, meaning these securities cannot be offered or sold in the U.S. without an effective registration statement or applicable exemption [3]. Group 3: Company Overview - Wearable Devices Ltd. is a pioneering company focused on revolutionizing human-computer interaction through AI-powered neural input technology, targeting both consumer and business markets [5]. - The company’s flagship products, such as the Mudra Band and Mudra Link, enable touch-free interaction by converting subtle movements into intuitive controls, enhancing experiences in gaming and the expanding AR/VR/XR sectors [5]. - Wearable Devices operates a dual-channel business model, including direct-to-consumer sales and enterprise licensing, positioning itself as a leader in the rapidly growing tech sector [5].

Core Insights - Wearable Devices Ltd. has announced a significant update to its Mudra Link product, transforming it into a personalized neural wristband controller that enhances user interaction with digital devices [1][5] - The new Mudra Link Gesture Mapper feature allows users to assign specific gestures to input commands, facilitating touchless control across various devices and operating systems [3][4] Product Features - The Mudra Link Gesture Mapper provides functionalities similar to a computer mouse and directional pad, allowing users to customize gestures for various commands, such as mouse clicks and keyboard inputs [4] - This feature aims to replace or augment traditional input methods, promoting more efficient and accessible control across a wide range of applications [4] Company Overview - Wearable Devices Ltd. specializes in AI-powered touchless sensing wearables, focusing on human-computer interaction through innovative technology [6][7] - The company operates a dual-channel model, engaging in direct-to-consumer sales and enterprise collaborations, targeting sectors like gaming, productivity, and extended reality (XR) [8] Market Position - By setting standards for neural input in the XR ecosystem, Wearable Devices is positioned to influence the future of user experiences in rapidly growing technology markets [9]

Core Insights - Wearable Devices Ltd. has received approval for a new patent titled "Gesture and Voice-Controlled Interface Device," enhancing its intellectual property portfolio and protecting its innovations in wearable bio-potential sensors [1][2] - The patented technology integrates gesture recognition with voice control, allowing for personalized user experiences and secure interactions through neural and voice-based authentication [2][4] Group 1: Patent and Technology - The newly allowed patent enables hands-free interaction across various applications, such as navigating maps and controlling smart home devices using gestures and voice commands [3][4] - In multi-user environments, the technology can recognize individual users through unique gesture and voice signatures, providing tailored experiences [3] Group 2: Company Overview - Wearable Devices Ltd. specializes in AI-powered touchless sensing wearables, with products like the Mudra Band and Mudra Link that facilitate intuitive controls through subtle movements [5] - The company operates a dual-channel business model, focusing on direct-to-consumer sales and enterprise licensing, aiming to redefine user experiences in the rapidly growing XR market [5]

Core Insights - Wearable Devices Ltd. is expanding its Large Motor Unit Action Potential Model (LMM) into new markets such as predictive health monitoring and cognitive state analytics, providing real-time physiological insights for health and wellness monitoring [1][2][4] - The LMM technology is designed to continuously learn and adapt, transforming muscle activity signals into actionable insights, which will support the company's entry into health monitoring [3][5] - The company aims to commercialize LMM and establish strategic partnerships in the health sector, reinforcing its position in bio-signal intelligence and neural interface technology [4][5] Technology and Applications - LMM represents a shift from passive monitoring to proactive intelligence, allowing for continuous learning and adaptation of muscle activity signals [3] - The technology is being evaluated for real-world applications, including predictive health monitoring, cognitive state analytics, and performance optimization in various domains [3][6] - Potential applications include detecting early signs of health conditions, monitoring cognitive states like focus and fatigue, and developing custom applications for healthcare and sports [6] Business Model and Market Position - Wearable Devices operates a dual-channel business model, offering both direct-to-consumer sales and enterprise licensing, with products like the Mudra Band and Mudra Link [7] - The company is focused on redefining user experiences in the XR market and driving innovation in the rapidly growing tech sector [7] - By leveraging its AI-powered bio-signal data platform, the company aims to provide businesses with tools to enhance safety, performance, and productivity [6][7]

Business Risks and Challenges - The company has not yet entered into any commercial arrangements for licensing its technology, which could adversely affect future business and financial condition [56]. - The company estimates a three-to-five-year period from initial contact with a B2B company to signing a licensing agreement, with no agreements signed as of March 19, 2025 [56]. - The company faces significant risks related to the competitive nature of the consumer electronics industry, which may hinder market acceptance of its technology and products [54]. - The company has a limited operating history and may never achieve sufficient revenue or profitability [53]. - The company relies on a limited number of suppliers and contract manufacturers, which poses risks to its production capabilities [43]. - The wearable computing market is still in early growth stages, and if it does not grow as expected, the company's business could be harmed [50]. - The company may need to raise additional capital to grow its business, which could result in dilution for existing shareholders [50]. - The company has not yet mass-produced any product planned for global consumers, which raises concerns about its ability to manufacture at competitive costs [53]. - The company’s products may experience quality problems that could lead to adverse publicity, product recalls, and warranty claims, negatively impacting revenue and brand reputation [66]. - The company’s ability to develop and introduce new gesture input functions is critical for future success, and delays could adversely affect its financial condition [62]. - The development cycles for new products with consumer electronics customers may take approximately 1 to 3 years after an initial agreement, impacting revenue realization [69]. - The company is subject to risks related to supply chain disruptions due to reliance on a limited number of suppliers and contract manufacturers, which could adversely affect revenue and operating results [73]. - Key components in products come from limited or sole sources, making the company susceptible to supply shortages and long lead times, potentially harming product delivery and relationships with channel partners [75]. - Increased competition for highly skilled personnel in Israel may lead to significant costs and challenges in attracting and retaining qualified employees, impacting future growth [79]. - The company may struggle to accurately forecast consumer demand, leading to inventory management challenges that could negatively impact revenue [124]. - The company has incurred accumulated losses of approximately $29.1 million as of December 31, 2024, raising substantial doubt about its ability to continue as a going concern [117]. - The company expects competition in the input methods and peripheral devices market to intensify, with significant competitors including Apple, Meta, and Google [109]. - Economic downturns may adversely affect consumer discretionary spending, impacting demand for the company's products and services [110]. - The company may face challenges in sustaining revenue growth rates due to increasing competition and potential slowing demand for its products and services [127]. - The company may not be able to sustain its recent revenue growth, and future performance may not be indicative of past results [127]. - The company faces risks from natural disasters and manmade problems, which could disrupt operations and adversely affect financial condition [114]. - The company has never paid cash dividends and does not anticipate doing so in the foreseeable future, relying on future operational results and cash flow for any potential distributions [132]. Regulatory and Compliance Issues - The company collects and processes sensitive personal information, which subjects it to regulatory scrutiny and potential liabilities related to privacy and data protection [80]. - Non-compliance with data protection regulations like GDPR could result in fines up to 4% of annual worldwide turnover or €20 million (approximately $21 million), adversely affecting business operations [82]. - The California Consumer Privacy Act (CCPA) imposes additional compliance costs and potential liabilities, which may increase operational challenges for the company [81]. - The company’s reliance on third-party service providers for data management increases the risk of data breaches, which could harm brand reputation and lead to litigation [80]. - Future changes in privacy laws and regulations may increase compliance costs and restrict the company's ability to operate in certain jurisdictions, impacting overall business strategy [84]. - The company faces significant challenges in complying with complex international data privacy and cybersecurity laws, which are costly and resource-intensive [86]. - Compliance with the Sarbanes-Oxley Act is critical, and failure to maintain effective internal controls could adversely affect investor confidence and market price [202]. - The company is required to document and evaluate internal controls to comply with Section 404 of the Sarbanes-Oxley Act, which may involve additional costs and resources [203]. - A material weakness in internal control over financial reporting could lead to regulatory sanctions and a decline in the price of the company's securities [204]. Financial Performance and Capital Needs - The company has commenced shipment of the Mudra Band, its first B2C consumer product, starting in December 2023, and plans to launch the Mudra Link in September 2024, with shipments beginning in Q1 2025 [216]. - In 2024, the company reported revenues of $522 thousand, a significant increase from $82 thousand in 2023, while comprehensive and net losses were $7.9 million and $7.8 million, respectively [221]. - The company may need to raise additional capital to fund growth, which could result in dilution for existing shareholders [118]. - The company has broad discretion in the allocation of net proceeds from the exercise of Warrants and its recent public offering, which closed on January 30, 2025 [133]. - The company received a notification from Nasdaq on October 24, 2023, regarding non-compliance with the Minimum Bid Price Requirement, with a closing bid price below $1.00 for 30 consecutive business days [136]. - On January 16, 2025, the company was notified of non-compliance with the minimum stockholders' equity requirement, reporting approximately $1,695,000 in stockholders' equity as of June 30, 2024, below the required $2,500,000 [137]. - The company incurs significant costs as a public entity, including compliance with SEC and Nasdaq requirements, which increases legal and financial expenses [190]. - Future merger and acquisition activities may require substantial management attention and could lead to increased capital requirements and dilution of shareholders [191]. Market and Product Development - The company aims to commercialize its technology by licensing it for integration into the hardware and software of partner companies' products, estimating a three-to-five-year period from introduction to licensing agreement [222]. - The Total Addressable Market (TAM) includes wearable computers, face computers (AR/VR), and home digital devices, positioning Mudra as a universal input interface for all digital devices [230]. - The Mudra technology utilizes proprietary sensors and AI algorithms to enable control of digital devices through subtle finger movements and hand gestures without physical contact [219]. - The company has expanded its brand to include neurotech and brain-computer interface sensors, targeting additional verticals such as Industry 4.0 and digital health [223]. - The Mudra platform is designed to track neural signals on the wrist, allowing for natural gesture-based control of digital devices [224]. - The company has been recognized at CES 2024 and CES 2025 for its innovative products, with the Mudra Band being included in the "Best of CES 2024" list and the Mudra Link winning a CES 2025 Honoree Award [220]. - The company operates under the "Push-Pull" strategy, engaging both B2B and B2C markets to create demand for its products [229]. - The company has developed a proprietary Mudra SNC sensor for gesture control and monitoring neural activity, enhancing user interaction with digital devices [232]. - The company is focused on human-centered design, utilizing consumer feedback to continuously improve product offerings and user experience [232]. - A large database of hand and finger gestures is being built through anonymized data, providing insights into user trends and behaviors [232]. - The company aims to redefine user interfaces for wearable computing as the market shifts towards devices worn on the body rather than traditional desktop computers [233]. - The evolution of input devices has transitioned from punch-cards in the 1950s to advanced gesture recognition technologies in the 2000s, indicating a significant technological advancement in user interaction [234]. - The company is committed to leveraging data to enhance customer experience by understanding user interactions with platform features [232]. - The platform supports flexible gesture development tailored to user needs, which is crucial for the adoption of wearable computing solutions [232]. - The company’s engineering and product teams are dedicated to integrating machine learning and AI to improve product functionality and user engagement [232]. Intellectual Property and Legal Risks - The company faces risks in protecting its intellectual property rights globally, which could adversely affect its business and financial condition [151]. - Legal systems in certain countries may not favor the enforcement of patents and trade secrets, making it difficult to stop competitors from marketing infringing products [153]. - The costs associated with filing, prosecuting, and defending patents can be prohibitively expensive, potentially impacting the company's ability to protect its intellectual property [152]. - The company may be subject to litigation from third parties claiming infringement of their intellectual property rights, which could result in significant liability and operational disruptions [156]. - Changes in patent laws or their interpretation could increase uncertainties and costs surrounding the prosecution of patent applications and enforcement of issued patents [160]. - The company may face claims challenging the inventorship of its intellectual property, which could result in substantial costs and loss of valuable rights if not successfully defended [161]. Geopolitical and Operational Risks - The ongoing conflict in Israel has led to heightened security concerns and potential disruptions to business operations, with significant uncertainty regarding its duration and escalation [163]. - As of today, the conflict has had no material impact on the company's operations, and its offices are functioning as usual [168]. - The company currently has sufficient supply of materials for regular operations, with no anticipated material delays [170]. - The company has accrued approximately $2.4 million in grants from the Israeli Innovation Authority for research and development activities, with royalty obligations of 3.0%-3.5% on sales from products developed under these programs [178]. - The company may face increased royalty payments if it manufactures outside of Israel, which could increase its liability to the Israeli Innovation Authority to between 100% and 150% of the grants received [179]. - The company is required to comply with the Israeli Research Law regarding past grants, which restricts the transfer of know-how and manufacturing rights outside of Israel without prior approval [180]. - The company may not be able to enforce non-competition agreements under Israeli law, potentially leading to increased competition [182]. - Israeli corporate law may impede mergers or acquisitions, requiring special approvals and lengthy processes for such transactions [183]. - Israeli tax law may impede potential mergers or acquisitions due to tax deferral conditions and restrictions on share dispositions [184]. - The company faces risks associated with global operations, including currency exchange fluctuations and compliance with various international laws [192]. - Operating margins may decline due to rising product costs driven by competition, labor costs, and inflationary pressures [195]. - Sales of a significant number of shares could depress the market price of Ordinary Shares, impacting the company's ability to raise capital [196]. - The market price of Ordinary Shares and Warrants is likely to be volatile, influenced by various external factors beyond the company's control [197].

YOKNE’AM ILLIT, Israel, March 19, 2025 (GLOBE NEWSWIRE) -- Wearable Devices Ltd. (Nasdaq: WLDS, WLDSW) (“Wearable Devices” or the “Company”), a technology growth company specializing in artificial intelligence (“AI")-powered touchless sensing wearables, today announced its financial results for the year ended December 31, 2024. Asher Dahan, Chief Executive Officer and Chairman of the Board of Directors of Wearable Devices, commented, “2024 was characterized by strategic capital allocation and the execution ...

Core Insights - Wearable Devices Ltd. has received a notice of allowance for its patent application titled "Gesture and Voice-Controlled Interface Device" from the United States Patent and Trademark Office, which protects its innovative neural measurement technology for various applications [1][5] Group 1: Patent and Technology - The patent covers the company's gesture-controlled interface that can measure real-world physical properties such as weight, torque, and force from the wrist [2] - The technology has multiple applications, particularly in enhancing the experience for individuals with severe disabilities, improving productivity in logistics and industrial settings, and increasing immersion in virtual environments [3] Group 2: Intellectual Property Strategy - The patent is part of the company's broader intellectual property strategy aimed at expanding its core IP globally, allowing for real-time adaptation to future market changes [4] Group 3: Company Overview - Wearable Devices Ltd. specializes in AI-powered touchless sensing wearables, transforming subtle movements into intuitive controls for consumer and business markets [6] - The company operates a dual-channel business model, offering direct-to-consumer sales and enterprise licensing, with products like the Mudra Band and Mudra Link enhancing user experiences in gaming and XR environments [6]

Core Viewpoint - Wearable Devices Ltd. announced a one-for-four reverse share split of its ordinary shares and tradable warrants, effective March 17, 2025, to enhance its stock price and marketability [1][2]. Group 1: Reverse Share Split Details - The reverse share split was approved by shareholders on February 26, 2025, and will adjust the number of issued and outstanding ordinary shares from approximately 3,939,911 to about 984,978, and warrants from 393,043 to 98,261 [2][3]. - The reverse share split will not change any shareholder's percentage ownership interest, except for minor adjustments related to fractional shares [3]. - No fractional ordinary shares or warrants will be issued; instead, they will be rounded to the nearest whole share or warrant [3]. Group 2: Company Overview - Wearable Devices Ltd. specializes in AI-powered touchless sensing wearables, focusing on enhancing human-computer interaction through innovative products like the Mudra Band and Mudra Link [5]. - The company operates a dual-channel business model, including direct-to-consumer sales and enterprise licensing, targeting both consumer and business markets [5]. - Wearable Devices aims to redefine user experiences in the rapidly growing AR/VR/XR sectors by leveraging proprietary sensors and advanced AI algorithms [5].