Wearable Devices .(WLDS) - 2025 Q2 - Quarterly Report

Financial Performance - Total revenues for the six months ended June 30, 2025, were $294,000, a decrease of 25.4% compared to $394,000 for the same period in 2024[10] - Operating loss for the six months ended June 30, 2025, was $3,758,000, compared to an operating loss of $4,221,000 for the same period in 2024, reflecting a 10.9% improvement[10] - Net loss for the six months ended June 30, 2025, was $3,715,000, compared to a net loss of $4,210,000 for the same period in 2024, indicating a 11.8% reduction in losses[10] Cash and Assets - Cash and cash equivalents decreased to $2,064,000 as of June 30, 2025, from $3,089,000 as of December 31, 2024, representing a decline of 33.1%[4] - Total current assets decreased to $4,517,000 as of June 30, 2025, down 18.1% from $5,516,000 as of December 31, 2024[4] Liabilities and Equity - Total liabilities decreased to $974,000 as of June 30, 2025, down 54.0% from $2,116,000 as of December 31, 2024[7] - Shareholders' equity as of June 30, 2025, was $3,813,000, a slight decrease from $3,860,000 as of December 31, 2024[7] Research and Development - Research and development expenses for the six months ended June 30, 2025, were $1,466,000, a decrease of 9.3% compared to $1,616,000 for the same period in 2024[10] Share Issuances and Offerings - The company issued 625,000 ordinary shares associated with a best-efforts offering, raising $2,200,000 during the six months ended June 30, 2025[13] - The weighted average number of ordinary shares outstanding for the six months ended June 30, 2025, was 1,404,346, compared to 254,912 for the same period in 2024, reflecting a significant increase due to share issuances[10] - The Company raised net proceeds of $13.3 million from its initial public offering (IPO) in September 2022 and $1.7 million from a secondary offering in November 2023[24] Compliance and Stockholder Equity - As of June 30, 2024, the Company's stockholders' equity was approximately $1.7 million, which fell below the Nasdaq minimum requirement of $2.5 million[23] - The Company has been granted multiple compliance periods by Nasdaq to meet minimum bid price and stockholders' equity requirements[22] Accumulated Losses and Financing - The Company incurred accumulated losses of $32.8 million as of June 30, 2025, and expects to continue funding operations through external financing[28] Inventory and Write-offs - The Company recorded inventory write-offs of $175 thousand for the period ended June 30, 2025, compared to $0 for the same period in 2024[31] Warrants and Options - The Company had a total of 2,287,833 Ordinary Shares outstanding as of June 30, 2025, following various issuances and exercises of warrants[36] - The Company received gross proceeds of approximately $1.85 million from a private placement, with net proceeds of $1.58 million after expenses[37] - On January 30, 2025, the Company closed a public offering, raising approximately $2.5 million gross ($2.2 million net) from the sale of 86,250 Ordinary Shares and warrants[37] - The Company entered into an inducement exercise agreement resulting in gross proceeds of approximately $1.2 million from the exercise of existing warrants at a reduced price of $1.45 per share[37] - As of June 30, 2025, the Company had 18,542 options outstanding with a weighted average exercise price of $33.39, down from 22,309 options at the beginning of the year[39] - The Company issued 131,375 RSUs to employees and consultants, with a total expense of $934 thousand to be recognized over the vesting periods[43] - The Company approved an increase in the number of shares reserved under the Incentive Plan to 795,252 following board approval on September 9, 2025[45] - The Company has 1,661,000 New Warrants exercisable at $1.45 per share, which were issued as part of an inducement offer[39] - The existing warrants were amended to reduce the exercise price from $10.00 to $4.00 per share[37] Stock Prices - The reported sale prices of the Company's Ordinary Shares and warrants on Nasdaq were $1.03 and $1.88, respectively, as of September 8, 2025[38]