Wearable Devices announced its financial results for the six months ended June 30, 2024. The company reported revenue of $394 thousand, up from $12 thousand in the same period in 2023, primarily due to sales of its Mudra Band for Apple Watch and B2B collaborations. Despite this, the net loss increased to $4.2 million, or $(0.21) per share, from $3.9 million, or $(0.26) per share, due to higher operating expenses.
Key highlights include:
- Introduction of new features for Mudra Band, including touchless gesture control and ChatGPT integration.
- Preorders for Mudra Link, an AI neural interface wristband for Android, with a launch expected in Q1 2025.
- Expanded device support, including Apple Vision Pro.
- Collaboration with Qualcomm and integration with Snapdragon Spaces XR.
- Reseller agreements in South Korea and China, and strengthened presence in the defense sector.
Wearable Devices ha annunciato i suoi risultati finanziari per i sei mesi terminati il 30 giugno 2024. L’azienda ha registrato un fatturato di 394 mila dollari, in aumento rispetto ai 12 mila dollari nello stesso periodo del 2023, principalmente grazie alle vendite del Mudra Band per Apple Watch e alle collaborazioni B2B. Tuttavia, la perdita netta è aumentata a 4,2 milioni di dollari, ovvero $(0,21) per azione, rispetto a 3,9 milioni di dollari, ovvero $(0,26) per azione, a causa dell’aumento delle spese operative.
Tra i punti salienti ci sono:
- Introduzione di nuove funzionalità per il Mudra Band, incluso il controllo gestuale senza tocco e l’integrazione con ChatGPT.
- Preordini per il Mudra Link, un bracciale interfaccia neurale AI per Android, con lancio previsto nel primo trimestre del 2025.
- Supporto ampliato per i dispositivi, incluso Apple Vision Pro.
- Collaborazione con Qualcomm e integrazione con Snapdragon Spaces XR.
- Accordi di rivendita in Corea del Sud e Cina, e presenza rafforzata nel settore della difesa.
Wearable Devices anunció sus resultados financieros para los seis meses que terminaron el 30 de junio de 2024. La compañía reportó ingresos de 394 mil dólares, un aumento desde los 12 mil dólares en el mismo período de 2023, principalmente debido a las ventas de su Mudra Band para Apple Watch y colaboraciones B2B. A pesar de esto, la pérdida neta aumentó a 4,2 millones de dólares, o $(0,21) por acción, desde 3,9 millones de dólares, o $(0,26) por acción, debido a mayores gastos operativos.
Los puntos destacados incluyen:
- Introducción de nuevas funciones para Mudra Band, incluyendo control por gestos sin contacto e integración con ChatGPT.
- Reservas para Mudra Link, una pulsera de interfaz neural AI para Android, con lanzamiento previsto para el primer trimestre de 2025.
- Apoyo ampliado para dispositivos, incluido Apple Vision Pro.
- Colaboración con Qualcomm e integración con Snapdragon Spaces XR.
- Acuerdos de reventa en Corea del Sur y China, y presencia reforzada en el sector de defensa.
Wearable Devices는 2024년 6월 30일로 종료된 6개월 동안의 재무 결과를 발표했습니다. 회사는 2023년 같은 기간의 12,000달러에서 증가한 394,000달러의 수익을 보고했으며, 주로 Apple Watch용 Mudra Band 판매와 B2B 협력 덕분입니다. 그럼에도 불구하고, 순손실은 운영비 증가로 인해 390만 달러에서 420만 달러, 즉 주당 $(0.21)로 증가했습니다.
주요 하이라이트는 다음과 같습니다:
- 비접촉 제스처 제어 및 ChatGPT 통합을 포함한 Mudra Band의 새로운 기능 도입.
- 2025년 1분기 출시 예정인 Android용 AI 신경 인터페이스 손목 밴드 Mudra Link의 사전 주문.
- Apple Vision Pro를 포함한 장치 지원 확대.
- Qualcomm과의 협력 및 Snapdragon Spaces XR과의 통합.
- 한국과 중국에서의 재판매 계약 및 방산 부문에 대한 강화된 존재감.
Wearable Devices a annoncé ses résultats financiers pour les six mois se terminant le 30 juin 2024. La société a rapporté des revenus de 394 000 dollars, en hausse par rapport à 12 000 dollars au cours de la même période en 2023, principalement en raison des ventes de son Mudra Band pour Apple Watch et des collaborations B2B. Cependant, la perte nette a augmenté à 4,2 millions de dollars, soit $(0,21) par action, contre 3,9 millions de dollars, soit $(0,26) par action, en raison d’une augmentation des frais d’exploitation.
Les points clés incluent :
- Introduction de nouvelles fonctionnalités pour le Mudra Band, y compris le contrôle gestuel sans contact et l’intégration de ChatGPT.
- Précommandes pour Mudra Link, un bracelet d’interface neurale AI pour Android, avec un lancement prévu au premier trimestre 2025.
- Support élargi pour les dispositifs, y compris Apple Vision Pro.
- Collaboration avec Qualcomm et intégration avec Snapdragon Spaces XR.
- Accords de revente en Corée du Sud et en Chine, et renforcement de la présence dans le secteur de la défense.
Wearable Devices hat die finanzielle Ergebnisse für die sechs Monate bis zum 30. Juni 2024 bekannt gegeben. Das Unternehmen berichtete von Einnahmen von 394.000 US-Dollar, gegenüber 12.000 US-Dollar im gleichen Zeitraum 2023, hauptsächlich aufgrund des Verkaufs seiner Mudra Band für die Apple Watch und B2B-Zusammenarbeiten. Trotz dessen stieg der Nettoverlust auf 4,2 Millionen US-Dollar oder $(0,21) pro Aktie, nach 3,9 Millionen US-Dollar oder $(0,26) pro Aktie, wegen höherer Betriebskosten.
Wichtige Höhepunkte umfassen:
- Einführung neuer Funktionen für die Mudra Band, einschließlich berührungsloser Gestensteuerung und ChatGPT-Integration.
- Vorbestellungen für Mudra Link, ein KI-neuronales Interface-Armband für Android, mit einem erwarteten Start im 1. Quartal 2025.
- Erweiterte Geräteunterstützung, einschließlich Apple Vision Pro.
- Zusammenarbeit mit Qualcomm und Integration mit Snapdragon Spaces XR.
- Wiederverkäufervereinbarungen in Südkorea und China sowie eine verstärkte Präsenz im Verteidigungssektor.
Positive
- Revenue increased to $394 thousand, up from $12 thousand in the same period in 2023.
- Introduction of new features for Mudra Band, enhancing its functionality.
- Preorders for Mudra Link, expected to expand market reach in Q1 2025.
- Expanded device support, including Apple Vision Pro.
- Collaboration with Qualcomm and integration with Snapdragon Spaces XR.
- Reseller agreements in South Korea and China.
Negative
- Net loss increased to $4.2 million, or $(0.21) per share, from $3.9 million, or $(0.26) per share.
- Higher operating expenses associated with scaling business activities.
Company announces revenue growth from commercial sales of its Mudra Band for Apple Watch and B2B collaborations
YOKNE’AM ILLIT, Israel, Sept. 23, 2024 (GLOBE NEWSWIRE) — 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
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
[email protected]
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 ended June 30, 2024 |
Six months ended June 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 |
FAQ
What were Wearable Devices’ revenues for the first half of 2024?
Wearable Devices reported revenues of $394 thousand for the first half of 2024.
What was Wearable Devices’ net loss for the first half of 2024?
Wearable Devices had a net loss of $4.2 million, or $(0.21) per share, for the first half of 2024.
What new features were introduced for the Mudra Band?
The Mudra Band now includes touchless gesture control and integration with ChatGPT.
When is the Mudra Link expected to launch?
The Mudra Link is expected to launch in the first quarter of 2025.
Which new devices does Wearable Devices’ technology support?
Wearable Devices’ technology now supports Apple Vision Pro, Mac, iPad, Apple TV, and iPhone.
What collaborations has Wearable Devices announced?
Wearable Devices announced collaborations with Qualcomm and a Fortune 500 consumer electronics
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