$WLDS

Wearable Devices Ltd.

CIK:0001887673|SEC Filings

Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2025

Dec. 31, 2024

Dec. 31, 2023

Income Statement [Abstract]

Revenues

$ 647

$ 522

$ 82

Cost of revenues

(594)

(362)

^[1]

(62)

Impairment of product sales inventory

(201)

(75)

^[1]

GROSS PROFIT(LOSS)

(148)

Research and development, net (Note 7.A)

(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 (in Dollars per share)

^[2]

$ (6.53)

$ (72.6)

$ (115.2)

Net loss per ordinary shares, diluted (in Dollars per share)

^[2]

$ (6.53)

$ (72.6)

$ (115.2)

Weighted average number of ordinary shares and pre-funded warrants outstanding basic (in Shares)

^[2]

1,238,719

108,563

67,505

Weighted average number of ordinary shares and pre-funded warrants outstanding diluted (in Shares)

^[2]

1,238,719

108,563

67,505

[1]

Reclassified

[2]

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 (the “Reverse Share Splits”). See also Note 1c.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
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

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
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 (Note 3)	778	1,226
TOTAL CURRENT ASSETS	19,530	5,516
NON-CURRENT ASSETS:
Right-of-use assets (Note 5)	393	330
Property and equipment, net (Note 4)	67	130
TOTAL NON-CURRENT ASSETS	460	460
TOTAL ASSETS	19,990	5,976
CURRENT LIABILITIES:
Accounts payable	62	157
Advance payments	47	83
Convertible promissory note (Note 6)		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 (Note 7)
SHAREHOLDERS’ EQUITY (Note 10):
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