Wearable Devices Announces 1H 2022 Financial Results

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Wearable Devices Ltd., a growth company developing a non-invasive neural input interface technology for B2B and B2C customers, today announced its financial results for the six months ended June 30, 2022.

Wearable Devices continued its investment in research and development activities and together with the expenses incurred in connection with the Company’s initial public offering (IPO), the Company’s net loss increased to $(2,051,000), or $(0.18) per diluted share, for the six months ended June 30, 2022, as compared to a net loss of $(640,000), or $(0.08) per diluted share for the six months ended June 30, 2021.

As previously announced, on September 15, 2022, the Company closed its IPO of 3,750,000 units. Each unit was offered at a public offering price of $4.25 and consisted of one ordinary share and two warrants to purchase one ordinary share each, at an initial exercise price of $4.00 per ordinary share. In addition, the underwriter for the IPO partially exercised its over-allotment option with respect to 1,125,000 warrants to purchase 1,125,000 ordinary shares. The gross proceeds of the offering were approximately $16 million before deducting underwriting discounts, commissions and offering expenses.

Commenting on the IPO and the upcoming goals of the Company, Mr. Asher Dahan, Chairman of the Board and Chief Executive Officer of Wearable Devices, said, “We are thankful to all our investors and very excited about the successful IPO, which is an important step as we bring to market revolutionary solutions that enable the user’s hand to become a universal input device for touchless interaction with technology. We believe that neural-based interfaces will become as common to interaction with wearable computing and digital devices in the near future as the touchscreen is a universal input method for smartphones. This IPO enables us to drive the development of our innovative technology for B2B customers and transition to production on our B2C wearable Mudra wrist band for controlling digital devices using subtle finger movements. 

With the Metaverse widely considered to be the future of the internet, we believe the neural control interface market is positioned for growth given that user interfaces frequently dictate the pace of technology advancements. On the B2B side, more than 100 companies have purchased our Mudra Inspire development kit, and 30 of those are multinational technology companies. These companies are exploring various input and control use-cases for their products, across multiple countries and industry sectors, including consumer electronics manufacturers, consumer electronics brands, electronic components manufacturers, IT services and software development companies, industrial companies, and utility providers. Our objective with these companies is to commercialize the Mudra technology by licensing it for integration in the hardware and software of these companies’ products and services. 

On the B2C side of our business, we are launching a smart band for the Apple Watch which allows users to control the watch and operate applications using same-hand touchless finger movements.  We plan to utilize IPO proceeds in part to deliver pre-orders of our Mudra Band and to solidify production capabilities and volumes. In parallel, we intend to increase our marketing efforts to further expand global awareness of our brand,” said Dahan.