YOKNE’AM ILLIT,
“Partnerships represent a key part of our business, and we expect our B2B offerings to be a significant driver of revenue for us as we grow. At the beginning of 2024, we launched the B2B Mudra Developer Kit, or MDK, providing our B2B customers with enhanced capabilities and additional features that improve on our traditional Mudra Inspire B2B offering. The MDK allows OEMs to design new, customized gestures along with existing hand and wrist signals to create a user interface specifically tailored to their needs. Subsequent to the end of the year, we announced a collaboration agreement with Qualcomm, a Fortune 500 company, for the development of products using the Qualcomm Snapdragon Spaces XR Developer Platform, and we announced an agreement at the end of 2023 with a leading global defense company to design neural gesture technology for situations where silent activation is crucial. We anticipate interest in our B2B product to grow as the market for wearable devices and AI-based technology expands, with more and more customers recognizing the value that our products can add to their operations.
“Our B2C product, the
2023 and Recent Business Highlights
- Signed collaboration agreement with Qualcomm to elevate XR experiences with Mudra neural technology
- Showcased neural input technology at leading industry conferences, including CES 2024, MWC 2024, SPIE AR VR MR 2024, Tiny ML Summit 2023, and XR Fair Tokyo 2023
- Opened new
U.S. -based office inSilicon Valley to expand the Company’s presence and foster relationships in the tech and wearables markets
- Released MDK for B2B customers allowing OEMs to create a user interface specifically tailored to their operational needs
- Successfully delivered first manufacturing batch of the
Mudra Band for Apple Watch
- Filed patent application with the
U.S. Patent and Trademark Office for touchless pinch-to-zoom technology for augmented and virtual reality
- Expanded marketing and sales effort with the launch of new
Mudra Band website
- Completed first stage of deployment testing for a leading XR glasses OEM, satisfying criteria outlined in memorandum of understanding
- Introduced revolutionary spatial depth control allowing for depth navigation that adds another dimension to user interaction
- Received purchase order from a leading Japanese industrial automation company for the MDK
Joined Open XR and Kronos Group as a voting member to help influence and drive industry growth
Full Year 2023 Financial Highlights:
- Research and Development Expenses: Research and development expenses increased 46% to
$3.3 million in the full year of 2023 compared to the full year of 2022 as the Company continued to focus on creating disruptive, industry leading technology that leverages AI and proprietary algorithms, software and hardware.
- Sales and Marketing Expenses: Sales and marketing expenses increased 47% to
$2.0 million in the full year of 2023 compared to the full year of 2022 related to the Company driving awareness of its technology and products across various channels including participation at multiple leading industry conferences.
- Net Loss: Net loss increased to
$(7.8 million) , or$(0.48) per diluted share, for the year endedDecember 31, 2023 , as compared to a net loss of$(6.5 million) , or$(0.53) per diluted share, for the year endedDecember 31, 2022 .
- Cash Position: Cash and Deposits at
December 31, 2023 were$4.9 million .
- Inventory: Inventory significantly increased to
$1.0 million the end of 2023, as part of the completion of the transition phase from R&D to production and to serve our planned B2C business growth in 2024.
For further details on the Company's financial results for the year ended December 31, 2023, please refer to the company's annual report on Form 20-F which is being filed with the
About Wearable Devices Ltd.
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 and advantages of our
Investor Contact:
IMS Investor Relations
203.972.9200
wearabledevices@imsinvestorrelations.com
CONSOLIDATED BALANCE SHEETS | |||||||||||||||
2023 | 2022 | ||||||||||||||
Assets | in thousands | ||||||||||||||
CURRENT ASSETS: | |||||||||||||||
Cash and cash equivalents | 810 | 10,373 | |||||||||||||
Short term bank deposits | 4,045 | - | |||||||||||||
Governmental grant receivable | 108 | 54 | |||||||||||||
Other receivables and prepaid expenses | 757 | 543 | |||||||||||||
Inventories | 1,032 | 6 | |||||||||||||
TOTAL CURRENT ASSETS | 6,752 | 10,976 | |||||||||||||
NON-CURRENT ASSETS: | |||||||||||||||
Long-term bank deposits | 54 | - | |||||||||||||
Right-of-use assets | 592 | 180 | |||||||||||||
Property and equipment, net | 194 | 68 | |||||||||||||
TOTAL NON-CURRENT ASSETS | 840 | 248 | |||||||||||||
TOTAL ASSETS | 7,592 | 11,224 | |||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||
CURRENT LIABILITIES: | |||||||||||||||
Accounts payable | 410 | 156 | |||||||||||||
Advance payments | 312 | 353 | |||||||||||||
Deferred revenues | - | 12 | |||||||||||||
Accrued payroll and other employment related accruals | 579 | 416 | |||||||||||||
Accrued expenses | 190 | 145 | |||||||||||||
Lease liabilities | 297 | 68 | |||||||||||||
TOTAL CURRENT LIABILITIES | 1,778 | 1,150 | |||||||||||||
Lease Liabilities | 278 | 94 | |||||||||||||
TOTAL LIABILITIES | 2,066 | 1,244 | |||||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||||
SHAREHOLDERS' EQUITY: | |||||||||||||||
Ordinary shares, | 57 | 43 | |||||||||||||
Additional paid-in capital | 26,692 | 23,346 | |||||||||||||
Accumulated losses | (21,223 | ) | (13,409 | ) | |||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 5,526 | 9,980 | |||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 7,592 | 11,224 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||||||
Year ended | |||||||||||
2023 | 2022 | 2021 | |||||||||
in thousands (except per share amounts) | |||||||||||
Revenues | 82 | 45 | 142 | ||||||||
Expenses: | |||||||||||
Cost of revenues | (62 | ) | (10 | ) | (10 | ) | |||||
Research and development, net | (3,316 | ) | (2,271 | ) | (1,411 | ) | |||||
Sales and marketing expenses, net | (2,008 | ) | (1,370 | ) | (665 | ) | |||||
General and administrative expenses | (2,882 | ) | (1,948 | ) | (628 | ) | |||||
Initial public offering expenses | - | (904 | ) | (97 | ) | ||||||
OPERATING LOSS | (8,186 | ) | (6,458 | ) | (2,669 | ) | |||||
FINANCING INCOME (EXPENSES),net | 372 | (38 | ) | 55 | |||||||
NET LOSS AND TOTAL COMPREHENSIVE LOSS | (7,814 | ) | (6,496 | ) | (2,614 | ) | |||||
Net loss per ordinary shares, basic and diluted | (0.48 | ) | (0.53 | ) | (0.27 | ) | |||||
Weighted average number of ordinary shares outstanding basic and diluted | 16,201,238 | 12,277,224 | 9,709,590 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
Year ended | |||||||||||
2023 | 2022 | 2021 | |||||||||
in thousands | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net loss | (7,814 | ) | (6,496 | ) | (2,614 | ) | |||||
Adjustments required to reconcile net loss to net cash used in operating activities | |||||||||||
Depreciation | 68 | 23 | 11 | ||||||||
Accrued interest on convertible securities | - | - | 20 | ||||||||
Accrued interest on deposits | (45 | ) | - | - | |||||||
Share based compensation expenses | 241 | 790 | 299 | ||||||||
Unrealized gain from foreign currency derivative activities | (68 | ) | - | - | |||||||
Changes in operating assets and liabilities items: | |||||||||||
Decrease (increase) in accounts receivable | - | 8 | (8 | ) | |||||||
Decrease (increase) in inventories | (1,026 | ) | 5 | 9 | |||||||
Decrease (increase) in governmental grants receivables | (54 | ) | 8 | (11 | ) | ||||||
Increase in other receivables and prepaid expenses | (136 | ) | (496 | ) | (30 | ) | |||||
Increase (decrease) in advance payments | (41 | ) | 79 | 63 | |||||||
Increase (decrease) in deferred revenues | (12 | ) | (12 | ) | 9 | ||||||
Increase in accounts payables | 254 | 84 | 40 | ||||||||
Increase in accrued payroll and other employment related accruals | 163 | 194 | 119 | ||||||||
decrease in advance payments on governmental grant | - | - | (42 | ) | |||||||
Increase in accrued expenses | 36 | 99 | 32 | ||||||||
Net cash used in operating activities | (8,434 | ) | (5,714 | ) | (2,103 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchase of property and equipment | (194 | ) | (48 | ) | (36 | ) | |||||
Investment in deposits, net | (4,054 | ) | - | - | |||||||
Prepayments of leasing | - | (18 | ) | - | |||||||
Net cash used in investing activities | (4,248 | ) | (66 | ) | (36 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from issuance of shares issued in the public offering, net of issuance cost | 1,670 | - | - | ||||||||
Proceeds from issuance of units of ordinary shares and warrants in connection with the initial public offering, net of issuance expenses | - | 14,319 | - | ||||||||
Proceeds from issuance of ordinary shares and warrants, net of issuance cost | - | - | 2,925 | ||||||||
Proceeds from issuance of SAFEs | - | 500 | - | ||||||||
Refund to SAFE investors | - | (100 | ) | - | |||||||
Proceeds from credit line | - | 800 | - | ||||||||
Repayment of credit line | - | (800 | ) | - | |||||||
Proceeds from issuance of ordinary shares as a result of exercise of warrants | 1,449 | 160 | - | ||||||||
Exercise of options | - | - | 1 | ||||||||
Payment on behalf of issued shares | - | - | 12 | ||||||||
Net cash provided by financing activities | 3,119 | 14,879 | 2,938 | ||||||||
Net increase (decrease) in cash and cash equivalents | (9,563 | ) | 9,099 | 799 | |||||||
Cash and Cash Equivalents at the beginning of year | 10,373 | 1,274 | 475 | ||||||||
Cash and cash equivalents at the end of year | 810 | 10,373 | 1,274 | ||||||||
Supplemental Disclosure: | |||||||||||
Interest on credit line | - | 40 | - | ||||||||
Interest received from deposits | (305 | ) | - | - | |||||||
Conversion of SAFEs to equity | - | 400 | - | ||||||||
Right-of-use asset recognized against lease liability | 644 | 229 | - |
Source:
2024 GlobeNewswire, Inc., source