Wearable Devices Ltd. (the “Company” or “Wearable Devices”)
(Nasdaq: WLDS, WLDSW), a technology growth company specializing in
artificial intelligence (“AI")-powered touchless sensing wearables,
today announced its financial results for the six months ended June
30, 2024.
First Half 2024 Financial Results and
Recent Company Highlights:
- Recognized initial revenue from the
sale of business-to-consumer (B2C) focused Mudra Band for Apple
Watch and business-to-business (B2B) collaborations, totaling
$394 thousand.
Mudra Band:
- Enhanced product
proposition for flagship product: We have introduced two
major new features for our Mudra Band: touchless gesture control
for Apple Watch, allowing users to manage tasks hands-free, and
integration with ChatGPT, enabling users to interact with AI
directly via predefined gestures and voice commands on their Apple
Watch. These innovations enhance convenience, accessibility, and
AI-powered functionality for on-the-go multitasking.
- Announced new innovative
and disruptive product- the Mudra Link: Currently
receiving preorders for Mudra Link, the first AI neural interface
wristband for Android and beyond, providing advanced neural input
technology for Android users. Official launch expected in the first
quarter of 2025.
- Expanded market potential
with range of new supported devices: Now supports the
Apple Vision Pro, in addition to other Apple devices including Mac,
iPad, Apple TV and iPhone, allowing Apple users to extend their
gesture control experience.
Global B2B collaborations:
- Signed an agreement with Qualcomm
Technologies (“Qualcomm”) to collaborate in elevating extended
reality (“XR”) experiences with Mudra neural technology and
successfully completed the first phase of integration of Mudra
technology with Qualcomm's Snapdragon Spaces XR developer
platform.
- Fortune 500 consumer electronics
corporation has purchased a special license for a state-of-the-art
Mudra Development Kit (“MDK”) to evaluate certain deep-level
capabilities of the MDK for developing next-generation user
interfaces.
- Announced successful demonstrations
of the Mudra technology on Lenovo's ThinkReality XR headset, at the
Augmented World Expo (AWE) 2024.
- Signed reseller agreement to
enhance licensing program presence in South Korea and China.
- Strengthened presence in the
defense sector and delivered custom touchless technology to global
defense company as part of an ongoing collaboration.
In the first half of 2024, Wearable Devices
continued recognizing revenue from the sale of Mudra Band for Apple
Watch, the Company’s flagship B2C product, which began shipping
towards the end of 2023. Revenues for the six months ended June 30,
2024 were $394 thousand, increasing from approximately $12 thousand
compared to the six months ended June 30, 2023. Net loss increased
to $4.2 million, or $(0.21) per basic and diluted share, in the six
months ended June 30, 2024, compared to net loss of $3.9 million,
or $(0.26) per basic and diluted share, for the six months ended
June 30, 2023, primarily related to an increase in the Company’s
operating expenses associated with its continued efforts to scale
its business activity.
Asher Dahan, Chairman of the Board and Chief
Executive Officer of Wearable Devices, commented, “In the first
half of 2024, we increased the delivery of our flagship B2C
product, the Mudra Band for Apple Watch. After an extended preorder
period during which the Mudra Band generated strong customer
interest, we began shipping the product towards the end of 2023 and
are pleased to have reached this important milestone.
Subsequent to the close of the first half of
2024, we announced the launch of our new Mudra Link wristband,
bringing our state-of-the-art neural input Mudra technology to a
broader range of operating system platforms, including iOS,
Android, Windows, and macOS. This has been a major initiative for
our business, and the logical next step in our growth trajectory.
With preorders now open and an official launch planned for the
first half of 2025, we expect the Mudra Link to significantly
expand our addressable market as we tap into the large and
expanding population of Android, Windows, and macOS users.
We continue to invest in our business, as
reflected in the modest increases in research and development,
sales and marketing, and general and administrative expenses in the
period. We’re still in the early stages of growth in the broader
wearables industry, and Wearable Devices is well positioned to be a
leader in the space given our patented AI-based neural input
interface technology.”
About Wearable Devices Ltd.
Wearable Devices Ltd. is a growth company
developing AI-based neural input interface technology for the B2C
and B2B markets. The Company’s flagship product, the Mudra Band for
Apple Watch, integrates innovative AI-based technology and
algorithms into a functional, stylish wristband that utilizes
proprietary sensors to identify subtle finger and wrist movements
allowing the user to “touchlessly” interact with connected devices.
The Company also markets a B2B product, which utilizes the same
technology and functions as the Mudra Band and is available to
businesses on a licensing basis. Wearable Devices Is committed to
creating disruptive, industry leading technology that leverages AI
and proprietary algorithms, software, and hardware to set the input
standard for the Extended Reality, one of the most rapidly
expanding landscapes in the tech industry. The Company’s ordinary
shares and warrants trade on the Nasdaq market under the symbols
“WLDS” and “WLDSW”, respectively.
Forward-Looking Statement Disclaimer
This press release contains “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, that are intended to be covered by the “safe
harbor” created by those sections. Forward-looking statements,
which are based on certain assumptions and describe our future
plans, strategies and expectations, can generally be identified by
the use of forward-looking terms such as “believe,” “expect,”
“may,” “should,” “could,” “seek,” “intend,” “plan,” “goal,”
“estimate,” “anticipate” or other comparable terms. For example, we
are using forward-looking statements when we discuss our growth
trajectory; the launch of the Mudra Link and its benefits and
advantages, including significant potential increase in the
Company’s total available market; future investment in our
business; and our position as a leader in the space of wearable
devices. All statements other than statements of historical facts
included in this press release regarding our strategies, prospects,
financial condition, operations, costs, plans and objectives are
forward-looking statements. Forward-looking statements are neither
historical facts nor assurances of future performance. Instead,
they are based only on our current beliefs, expectations and
assumptions regarding the future of our business, future plans and
strategies, projections, anticipated events and trends, the economy
and other future conditions. Because forward-looking statements
relate to the future, they are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict
and many of which are outside of our control. Our actual results
and financial condition may differ materially from those indicated
in the forward-looking statements. Therefore, you should not rely
on any of these forward-looking statements. Important factors that
could cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements
include, among others, the following: the trading of our ordinary
shares or warrants and the development of a liquid trading market;
our ability to successfully market our products and services; the
acceptance of our products and services by customers; our continued
ability to pay operating costs and ability to meet demand for our
products and services; the amount and nature of competition from
other security and telecom products and services; the effects of
changes in the cybersecurity and telecom markets; our ability to
successfully develop new products and services; our success
establishing and maintaining collaborative, strategic alliance
agreements, licensing and supplier arrangements; our ability to
comply with applicable regulations; and the other risks and
uncertainties described in our annual report on Form 20-F for the
year ended December 31, 2023, filed on March 15, 2024 and our other
filings with the SEC. We undertake no obligation to publicly update
any forward-looking statement, whether written or oral, that may be
made from time to time, whether as a result of new information,
future developments or otherwise.
IMS Investor Relations 203.972.9200
wearabledevices@imsinvestorrelations.com
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|
|
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED) |
|
|
U.S. dollars (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
2024 |
|
2023 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
3,103 |
|
810 |
|
Short-term bank deposits |
|
57 |
|
4,045 |
|
Account receivable |
|
47 |
|
- |
|
Governmental grant receivable |
|
7 |
|
108 |
|
Other receivables and prepaid expenses |
|
306 |
|
757 |
|
Inventories |
|
1,218 |
|
1,032 |
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
4,738 |
|
6,752 |
|
|
|
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
Long-term bank deposits |
|
- |
|
54 |
|
Right-of-use assets |
|
458 |
|
592 |
|
Property and equipment, net |
|
176 |
|
194 |
|
|
|
|
|
|
|
TOTAL NON-CURRENT ASSETS |
|
634 |
|
840 |
|
|
|
|
|
|
|
TOTAL ASSETS |
|
5,372 |
|
7,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED) |
|
|
|
|
|
U.S. dollars (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
2024 |
|
2023 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
Accounts payables |
|
175 |
|
410 |
|
Advance payments |
|
101 |
|
312 |
|
Accrued payroll and other employment related accruals |
|
641 |
|
579 |
|
Convertible promissory note |
|
1,934 |
|
- |
|
Accrued expenses |
|
386 |
|
190 |
|
Lease liabilities |
|
296 |
|
297 |
|
TOTAL CURRENT LIABILITIES |
|
3,533 |
|
1,788 |
|
Lease liabilities |
|
144 |
|
278 |
|
TOTAL LIABILITIES |
|
3,677 |
|
2,066 |
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
Ordinary shares, NIS 0.01 par value: |
|
58 |
|
57 |
|
Authorized 50,000,000 as of June 30, 2024 and December 31, 2023;
issued and outstanding 20,887,428 shares as of June 30, 2024 and
20,387,428 shares as of December 31, 2023 |
|
Additional paid-in capital |
|
27,070 |
|
26,692 |
|
Accumulated losses |
|
(25,433) |
|
(21,223) |
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS’ EQUITY |
|
1,695 |
|
5,526 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
5,372 |
|
7,592 |
|
|
|
|
|
|
|
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS (UNAUDITED) |
|
|
|
|
|
U.S. dollars (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months endedJune 30,2024 |
|
|
Six monthsendedJune 30,2023 |
|
|
|
|
|
|
|
|
U.S. dollars |
in thousands |
|
|
(except per share amounts) |
|
|
|
|
|
|
Revenues |
|
394 |
|
|
12 |
Expenses: |
|
|
|
|
|
Cost of revenues |
|
(315) |
|
|
(3) |
Research and development,
net |
|
(1,616) |
|
|
(1,560) |
Sales and marketing
expenses |
|
(1,083) |
|
|
(1,050) |
General and administrative
expenses |
|
(1,601) |
|
|
(1,453) |
OPERATING
LOSS |
|
(4,221) |
|
|
(4,054) |
FINANCING INCOME,
NET |
|
11 |
|
|
158 |
|
|
|
|
|
|
NET LOSS AND TOTAL
COMPREHENSIVE LOSS |
|
(4,210) |
|
|
(3,896) |
|
|
|
|
|
|
Net loss per ordinary
share, basic and diluted |
|
(0.21) |
|
|
(0.26) |
|
|
|
|
|
|
Weighted average
number of ordinary shares outstanding basic and
diluted |
|
20,392,984 |
|
|
15,254,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) U.S. dollars (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
June 30, |
|
|
2024 |
|
|
2023 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
Net loss |
|
(4,210) |
|
|
(3,896) |
|
|
|
|
|
|
|
|
Adjustments required to reconcile net loss to net cash used
in operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
54 |
|
|
23 |
|
Accrued interest on deposits |
|
39 |
|
|
*(19) |
|
Interest expenses on convertible promissory note |
|
14 |
|
|
- |
|
Share based compensation expenses |
|
112 |
|
|
109 |
|
Unrealized gain from foreign currency derivative activities |
|
61 |
|
|
- |
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities items: |
|
|
|
|
|
|
Increase in inventory |
|
(186) |
|
|
(6) |
|
Increase in accounts receivables |
|
(47) |
|
|
- |
|
Decrease (increase) in governmental grants receivables |
|
101 |
|
|
(29) |
|
Decrease (increase) in other receivables and prepaid expenses |
|
380 |
|
|
(95) |
|
(Decrease) increase in advance payments |
|
(211) |
|
|
20 |
|
Decrease in deferred revenues |
|
- |
|
|
(12) |
|
Decrease in accounts payable |
|
(236) |
|
|
(44) |
|
Increase in accrued payroll and other employment related
accruals |
|
62 |
|
|
163 |
|
Increase in accrued expenses |
|
206 |
|
|
48 |
|
Net cash used in operating activities |
|
(3,861) |
|
|
(3,738) |
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
Purchase of property and equipment |
|
(36) |
|
|
(93) |
|
Proceeds (investments) associated with deposits, net |
|
4,003 |
|
|
*(2,036) |
|
Net cash (used in) provided by investing activities |
|
3,967 |
|
|
(2,129) |
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
Proceeds from issuance of
convertible promissory note |
|
1,920 |
|
|
- |
|
Proceeds from issuance of
ordinary shares as a result of exercise of warrants |
|
- |
|
|
1,448 |
|
Proceeds from issuance of
ordinary shares associated with the SEPA |
|
267 |
|
|
|
|
Net cash provided by financing activities |
|
2,187 |
|
|
1,448 |
|
|
|
|
|
|
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH
EQUIVALENTS |
|
2,293 |
|
|
(4,419) |
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD |
|
810 |
|
|
10,373 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
3,103 |
|
|
5,954 |
|
|
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION: |
|
|
Interest received from deposits |
110 |
|
|
|
159 |
|
Right-of-use asset recognized against lease liability |
- |
|
|
|
446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Reclassified |
|
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