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YOKNE’AM ILLIT, Israel, March 12, 2026 (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, 2025. The Company reported revenue growth for the year, driven in part by a 28.5% increase in sales of its Mudra Link and Mudra Band products, reflecting growing adoption of its gesture-control technology and continued expansion of its business-to-client (“B2C”) segment.
Management Commentary
“We are pleased to conclude 2025 with steady momentum in our B2C sector, driven by the Mudra Link and Mudra Band. This performance reflects our growing foothold in the global wearable tech market, a dynamic sector where demand for intuitive, touchless interfaces continues to expand,” said Asher Dahan, Chairman of the board of directors and Chief Executive Officer of Wearable Devices. “Our operational progress is supported by an exceptionally strong financial foundation. Throughout 2025, we raised approximately $24.4 million in gross proceeds from equity offerings, resulting in a cash balance of $18.4 million at year-end.
This financial strength is the engine that allows us to scale our B2C activities while investing in the innovation that will define the industry’s future, providing the capital needed to expand our development platform - an initiative we expect to drive significant business-to-business (“B2B”) transactions by making our neural technology easily accessible through AI-driven tools.
Throughout the full year of 2025, we achieved a significant milestone with the sustained delivery and commercial availability of the Mudra Link, our universal gesture control wearable, alongside continued revenue from the Mudra Band for Apple Watch. The transition from a pre-order phase to a fully operational commercial model has allowed us to capture steady customer interest and establish a solid baseline for our B2C products. We believe that this commercial traction serves as the real-world validation of our technology, providing the data and market presence necessary to fuel our broader ecosystem.
Building on this B2C success, we are proud to introduce the Mudra Experience Studio (“Studio”) - a critical milestone that transforms our neural technology into a universal language for extended reality (“XR”) and AI developers. By providing AI-assisted development tools and a single codebase, the Studio solves gesture fragmentation across major spatial computing and mobile platforms. This accessibility is our primary bridge to high-scale B2B opportunities, enabling original equipment manufacturers to integrate our technology into the next generation of smart glasses and digital environments without the need for platform-specific hardware adjustments.”
Mr. Dahan continued: “Our forward-looking vision is being realized through ai6 Labs, a synergistic ecosystem dedicated to bridging human intent with digital reality. Supported by the capital raised this year, ai6 Labs operates across three pillars: deepening foundational neural research, rapid product monetization, and an AI accelerator for bold concepts. Furthermore, we continue to protect our market leadership through a robust intellectual property portfolio. Our IP portfolio currently includes 12 patents: four registered U.S. patents, one registered Chinese patent and additional pending patents: one in the United States, five in China and one in South Korea. This combination of financial resources, AI-driven innovation, and patent protection positions us at the forefront of the next era in computing.”
Full Year 2025 Financial Highlights:
2025 and Recent Business Highlights:
About Wearable Devices Ltd.
Wearable Devices Ltd. (Nasdaq: WLDS, WLDSW) is a growth company pioneering human-computer interaction through its AI-powered neural input touchless technology. Leveraging proprietary sensors, software, and advanced AI algorithms, the Company’s consumer products - the Mudra Band and Mudra Link - are defining the neural input category both for wrist-worn devices and for brain-computer interfaces. These products enable touch-free, intuitive control of digital devices using gestures across multiple operating systems.
Operating through a dual-channel model of direct-to-consumer sales and enterprise licensing and collaborations, Wearable Devices empowers consumers with stylish, functional wearables for enhanced experiences in gaming, productivity, and XR. In the business sector, the Company provides enterprise partners with advanced input solutions for immersive and interactive environments, from augmented reality/VR/XR to smart environments. By setting the standard for neural input in the XR ecosystem, Wearable Devices is shaping the future of seamless, natural user experiences across some of the world’s fastest-growing tech markets. The newly launched ai6 Labs ecosystem accelerates this vision by integrating research, products, and AI breakthroughs. Wearable Devices’ ordinary shares and warrants trade on the Nasdaq Capital 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 the benefits, capabilities, advantages and expected demand, momentum, growth of and ability to expand our products and technology and our market leadership and that the combination of financial resources, AI-driven innovation, and patent protection positions us at the forefront of the next era in computing. 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: our use of proceeds from the offering; 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, 2024, filed on March 20, 2025 and our other filings with the Securities and Exchange Commission. 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.
Investor Contact:
Michal Efraty
[email protected]
| WEARABLE DEVICES LTD. AND ITS SUBSIDIARY CONSOLIDATED BALANCE SHEETS | |||||
| December 31 | |||||
| 2025 | 2024 | ||||
| U.S. dollars in thousands | |||||
| Assets | |||||
| CURRENT ASSETS: | |||||
| Cash and cash equivalents | 6,500 | 3,089 | |||
| Short-term bank deposits | 11,922 | 862 | |||
| Accounts receivable | 37 | - | |||
| Governmental grant receivable | - | 17 | |||
| Other receivables and prepaid expenses | 293 | 322 | |||
| Inventories | 778 | 1,226 | |||
| TOTAL CURRENT ASSETS | 19,530 | 5,516 | |||
| NON-CURRENT ASSETS: | |||||
| Right-of-use assets | 393 | 330 | |||
| Property and equipment, net | 67 | 130 | |||
| TOTAL NON-CURRENT ASSETS | 460 | 460 | |||
| TOTAL ASSETS | 19,990 | 5,976 | |||
| Liabilities and Shareholders’ Equity | |||||
| CURRENT LIABILITIES: | |||||
| Accounts payable | 62 | 157 | |||
| Advance payments | 47 | 83 | |||
| Convertible promissory note | - | 770 | |||
| Accrued payroll and other employment related accruals | 629 | 402 | |||
| Accrued expenses | 333 | 392 | |||
| Lease liabilities | 309 | 291 | |||
| TOTAL CURRENT LIABILITIES | 1,380 | 2,095 | |||
| Lease liabilities | 57 | 21 | |||
| TOTAL LIABILITIES | 1,437 | 2,116 | |||
| COMMITMENTS AND CONTINGENCIES | |||||
| SHAREHOLDERS’ EQUITY | |||||
| Ordinary shares no par value: Authorized 500,000,000 as of December 31, 2025 and 50,000,000 as of December 31, 2024; Issued and outstanding 2,882,802 shares as of December 31, 2025 and 235,821 shares as of December 31, 2024 | 67 | 67 | |||
| Additional paid-in capital | 55,695 | 32,895 | |||
| Accumulated losses | (37,209 | ) | (29,102 | ) | |
| TOTAL SHAREHOLDERS’ EQUITY | 18,553 | 3,860 | |||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 19,990 | 5,976 | |||
| WEARABLE DEVICES LTD. AND ITS SUBSIDIARY CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||
| Year ended December 31 | ||||||||
| 2025 | 2024 | 2023 | ||||||
| U.S. dollars in thousands (except per share amounts) | ||||||||
| Revenues | 647 | 522 | 82 | |||||
| Cost of revenues | (594 | ) | **(362 | ) | (62 | ) | ||
| Impairment of product sales inventory | (201 | ) | **(75 | ) | - | |||
| GROSS PROFIT(LOSS) | (148 | ) | 85 | 20 | ||||
| Research and development, net | (3,504 | ) | (2,964 | ) | (3,316 | ) | ||
| Sales and marketing expenses, net | (1,850 | ) | (2,096 | ) | (2,008 | ) | ||
| General and administrative expenses | (2,830 | ) | (2,845 | ) | (2,882 | ) | ||
| OPERATING LOSS | (8,332 | ) | (7,820 | ) | (8,186 | ) | ||
| Financing income (expenses), net | 230 | (52 | ) | 372 | ||||
| LOSS BEFORE TAX EXPENSES | (8,102 | ) | (7,872 | ) | (7,814 | ) | ||
| Tax expenses | (5 | ) | (7 | ) | - | |||
| NET LOSS AND TOTAL COMPREHENSIVE LOSS | (8,107 | ) | (7,879 | ) | (7,814 | ) | ||
| Net loss per ordinary shares, basic and diluted | (6.53 | ) | (72.60 | ) | (115.20 | ) | ||
| Weighted average number of ordinary shares and pre-funded warrants outstanding basic and diluted * | 1,238,719 | 108,563 | 67,505 | |||||
| * The share and per share information in these financial statements reflects the 1-for-20 reverse share split that became effective on October 10, 2024, a 1-for-4 reverse share split of the Company’s issued and outstanding ordinary shares that became effective on March 17, 2025 and an additional 1-for-3 reverse share split that became effective on March 11, 2026. | ||||||||
| **Reclassified | ||||||||
| WEARABLE DEVICES LTD. AND ITS SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| Year ended December 31 | ||||||||
| 2025 | 2024 | 2023 | ||||||
| U.S. dollars in thousands | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | (8,107 | ) | (7,879 | ) | (7,814 | ) | ||
| Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | 84 | 107 | 68 | |||||
| Interest expenses on convertible promissory note | - | 4 | - | |||||
| Accrued interest on deposits | (150 | ) | (3 | ) | (45 | ) | ||
| Share-based compensation expenses | 1,091 | 182 | 241 | |||||
| Unrealized gain from foreign currency derivative activities | - | 68 | (68 | ) | ||||
| Marketing expenses paid in ordinary shares | - | 100 | - | |||||
| Provision for inventory write-off | 201 | 75 | - | |||||
| Changes in operating assets and liabilities items: | ||||||||
| Increase in accounts receivable | (37 | ) | - | - | ||||
| Decrease (increase) in inventories | 247 | (269 | ) | (1,026 | ) | |||
| Decrease (increase) in governmental grants receivables | 17 | 91 | (54 | ) | ||||
| Decrease (increase) in other receivables and prepaid expenses | 21 | 357 | (136 | ) | ||||
| Decrease in advance payments | (37 | ) | (228 | ) | (41 | ) | ||
| Decrease in deferred revenues | - | - | (12 | ) | ||||
| Increase (decrease) in accounts payable | (95 | ) | (253 | ) | 254 | |||
| Increase (decrease) in accrued payroll and other employment related accruals | 226 | (177 | ) | 163 | ||||
| Increase (decrease) in accrued expenses | (59 | ) | 212 | 36 | ||||
| Net cash used in operating activities | (6,598 | ) | (7,613 | ) | (8,434 | ) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | (20 | ) | (43 | ) | (194 | ) | ||
| Decrease (increase) in deposits, net | (10,910 | ) | 3,240 | (4,054 | ) | |||
| Net cash provided by (used in) investing activities | (10,930 | ) | 3,197 | (4,248 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from issuance of ordinary shares issued in registered direct offerings, best-effort offering and ATM program, net of issuance cost | 13,340 | 1,578 | 1,670 | |||||
| Proceeds from issuance of ordinary shares under inducement offer letter agreements | 8,369 | - | - | |||||
| Proceeds from issuance of ordinary shares as a result of exercise of warrants | - | - | 1,449 | |||||
| Proceeds from issuance of ordinary shares associated with the SEPA | - | 4,353 | - | |||||
| Proceeds from issuance of convertible promissory note | - | 1,920 | - | |||||
| Repayment of convertible promissory note | (770 | ) | (1,156 | ) | - | |||
| Net cash provided by financing activities | 20,939 | 6,695 | 3,119 | |||||
| Net increase (decrease) in cash and cash equivalents | 3,411 | 2,279 | (9,563 | ) | ||||
| Cash and cash equivalents at the beginning of year | 3,089 | 810 | 10,373 | |||||
| Cash and cash equivalents at the end of year | 6,500 | 3,089 | 810 | |||||
| Supplemental Disclosure: | ||||||||
| Interest paid | - | 49 | - | |||||
| Interest received from deposits | (134 | ) | (144 | ) | (305 | ) | ||
| Right-of-use asset recognized against lease liability | 337 | - | 644 | |||||
| Mar-12 | |
| Mar-06 | |
| Mar-02 | |
| Feb-24 | |
| Feb-18 | |
| Feb-17 | |
| Feb-11 | |
| Feb-03 | |
| Jan-07 | |
| Jan-06 | |
| Jan-05 | |
| Dec-24 | |
| Dec-22 | |
| Dec-11 | |
| Nov-28 |
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