Wearable Devices Invests in the Future of AI: Leverages its Strong Cash Position to Launch ai6 Labs - Bridging Intent to Digital Reality

Rhea-AI Summary

Wearable Devices (Nasdaq: WLDS) launched ai6 Labs, a closed-loop neural AI ecosystem aiming to bridge human intent and digital reality using non-invasive Electromyography and Mudra innovation.

The company said it raised more than $20 million in 2025 and plans to deploy cash to accelerate AI research, commercialization, and rapid MVP testing.

Positive

• Raised >$20M in 2025 to fund AI initiatives
• Launched ai6 Labs to centralize research, commercialization, and AI acceleration
• Large MUAP Model / Brain-AI Bus development targets scalable neural-data architecture

Negative

• None.

Key Figures

Capital raised 2025: more than $20 million October Warrants proceeds: $3.3 million November Warrants proceeds: $10.8 million +5 more

8 metrics

Capital raised 2025 more than $20 million Cash raised in 2025 to fund ai6 Labs and AI initiatives

October Warrants proceeds $3.3 million Maximum cash to company if October Warrants exercised (Form F-1, Feb 23, 2026)

November Warrants proceeds $10.8 million Maximum cash to company if November Warrants exercised (Form F-1, Feb 23, 2026)

Shares in F-1 resale 7,043,500 Ordinary Shares Ordinary shares registered for resale via Form F-1 dated Feb 23, 2026

New Warrants dilution 29.1% Potential share of fully diluted capital from New Warrants (6-K, Jan 15, 2026)

F-3 warrant shares 3,322,000 Ordinary Shares Shares issuable upon exercise of New Warrants under Form F-3 shelf

F-3 warrant proceeds $5.7 million Maximum cash if all 3,322,000 New Warrants exercised at $1.71

Neurorehab pilot budget $750,000 Approved budget for Soroka Medical Center neurorehabilitation pilot (6-K, Dec 11, 2025)

Market Reality Check

Price: $0.7854 Vol: Volume 128,719 vs 20-day ...

low vol

$0.7854 Last Close

Volume Volume 128,719 vs 20-day average 247,850 (relative volume 0.52), indicating subdued trading into this AI update. low

Technical Shares at $0.7854 are well below the 200-day MA of $2.02 and sit 93.11% under the 52-week high, just 0.69% above the 52-week low.

Peers on Argus

Momentum scanner flagged a sector move with 2 peers (RIME, BOXL) moving up 4.35–...

2 Up 1 Down

Momentum scanner flagged a sector move with 2 peers (RIME, BOXL) moving up 4.35–8.84% and AXIL down 3.27%. Argus notes 2 peer stocks moving up with a median gain of 6.6%, suggesting broader Technology/Consumer Electronics dynamics even as WLDS traded around -1.21% ahead of this news.

Previous AI Reports

5 past events · Latest: Feb 18 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 18	AI platform launch	Positive	+2.0%	Announced ai6 Labs platform to address AI intent-capture infrastructure gap.
Feb 17	Developer platform	Positive	-1.7%	Launched Mudra Experience Studio for unified neural input across XR and AI.
Jan 07	AI glasses tie-up	Positive	-11.6%	Partnered with Rokid to enable Mudra Link neural control for AR glasses.
Dec 24	Partnership update	Positive	-5.1%	Detailed Rokid bundle plan and specs for neural-controlled AI/AR glasses.
Nov 24	China roadshow	Positive	+5.3%	Launched China technical roadshow targeting AI smart-glasses manufacturers.

Pattern Detected

AI-tagged announcements are generally positive in tone, but price reactions have been mixed: 3 divergences vs 2 alignments, with several selloffs following upbeat AI and partnership news.

Recent Company History

Over recent months, WLDS has issued multiple AI-focused updates, from Rokid smart-glasses collaborations (Nov 24, 2025; Dec 24, 2025) to a China technical roadshow and the launch of ai6 Labs and Mudra Experience Studio in Feb 2026. These events emphasize neural input, XR integration, and AI infrastructure. Price reactions around these AI-tagged releases have averaged about -2.21%, showing that upbeat strategic news has not consistently translated into positive short-term moves.

Historical Comparison

-2.2% avg move · In the past year WLDS issued 5 AI-tagged updates, averaging a -2.21% next-day move. This cash-backed...

AI

-2.2%

Average Historical Move AI

In the past year WLDS issued 5 AI-tagged updates, averaging a -2.21% next-day move. This cash-backed ai6 Labs expansion fits the same AI narrative, where strong strategic positioning has not always produced positive short-term price reactions.

AI news shows a progression from technical roadshows and Rokid partnerships toward a fuller neural-AI stack: Mudra-based input, developer tools, and now ai6 Labs as an integrated ecosystem leveraging the company’s strengthened cash resources.

Regulatory & Risk Context

Active S-3 Shelf · $5.7 million

Shelf Active

Active S-3 Shelf Registration 2025-10-27

$5.7 million registered capacity

An effective Form F-3 shelf allows resale of 3,322,000 warrant shares, with WLDS receiving no resale proceeds but potentially up to $5.7 million in cash if New Warrants at $1.71 are fully exercised. The prospectus highlights dilution risk and a 4.99% (or 9.99%) beneficial ownership cap on certain warrants.

Market Pulse Summary

This announcement underscores WLDS’s strategy to deploy more than $20 million raised in 2025 into ai...

Analysis

This announcement underscores WLDS’s strategy to deploy more than $20 million raised in 2025 into ai6 Labs, a neural-AI ecosystem built on Mudra and Electromyography technology. Prior AI-related news has produced mixed price reactions, averaging about -2.21%. Alongside this growth vision, investors should monitor warrant-driven dilution from registered resales like the 3,322,000 shares under the Form F-3 and upcoming capital-structure decisions highlighted in recent filings.

Key Terms

electromyography, extended reality, brain-computer interfaces, form f-1, +4 more

8 terms

electromyography medical

"powered by non-invasive Electromyography technology and Mudra innovation."

Electromyography (EMG) is a medical test that records the tiny electrical signals muscles make when they contract, using sensors placed on or in the muscle—think of it as checking the wiring and signals between nerves and muscles. Investors care because EMG is a key tool for diagnosing neuromuscular conditions and evaluating treatments or devices; clear EMG results can influence clinical adoption, regulatory decisions and the commercial prospects of related healthcare products.

extended reality technical

"seamless gesture control in extended reality (“XR”), and non-invasive"

Extended reality (XR) is the umbrella term for technologies that blend, layer, or replace the physical world with computer-generated visuals and sounds — including virtual reality, augmented reality, and mixed reality. For investors, XR matters because it can create new products, services, and revenue streams across gaming, shopping, training and remote work; like adding a digital layer to everyday life, it changes how customers interact with brands and can drive hardware, software and content sales while also bringing adoption and regulation risks.

brain-computer interfaces medical

"gesture control in extended reality (“XR”), and non-invasive Brain-Computer Interfaces advancements,"

Devices and systems that read brain activity and convert those signals into commands a computer can understand, allowing communication or control without physical movement. Think of them as a translator between your thoughts and a machine; they matter to investors because they create new markets (medical treatments, accessibility tools, and consumer products) but also carry high research costs, long development timelines, regulatory hurdles, and ethical risks that can affect returns.

form f-1 regulatory

"registers for the resale by a selling shareholder of up to 7,043,500 Ordinary Shares, pursuant to a Form F-1 prospectus"

A Form F-1 is the document a non-U.S. company files with U.S. regulators when it wants to sell stock or other securities to U.S. investors. It lays out the company’s business, finances, risks and how the offering will work, acting like a product manual and ingredient list so investors can judge what they’re buying. For investors, it’s a key source of verified information used to compare opportunities and assess potential reward and risk.

form f-3 regulatory

"filed a post-effective amendment to its Form F-3 registration statement to deregister any remaining unsold ordinary shares"

Form F-3 is a U.S. securities filing that lets eligible foreign companies pre-register and then quickly sell shares or other securities to raise money, because they already meet ongoing reporting and size tests. For investors it signals that the company is up-to-date with regulatory disclosure and has an efficient way to issue new securities — similar to a pre-approved credit line — which can mean faster capital raises but also potential dilution of existing holdings.

rule 144 regulatory

"or can sell them under Rule 144. Wearable Devices has now terminated the related offerings"

Rule 144 is a U.S. securities regulation that sets conditions under which restricted or insider-held shares can be legally resold to the public, such as required holding periods, availability of public information, limits on how much can be sold at once, and certain filing requirements. For investors it matters because it determines when previously locked-up shares can enter the market — like a release valve that can increase supply, affect share price, and signal insider intent.

reverse share splits financial

"authorize one or more reverse share splits of up to 3:1 at the Board’s discretion"

A reverse share split is a corporate action that combines multiple existing shares into fewer, proportionally more valuable shares — for example, turning ten $1 shares into one $10 share. Investors keep the same overall ownership value but see the per‑share price rise, which can improve a stock’s image, meet listing rules, or change trading liquidity and investor perception, much like exchanging many small coins for a single larger bill.

rsu financial

"plus new RSU grants for the CEO, Chief Scientific Officer/President, and non-executive directors."

Restricted stock units (RSUs) are a form of company shares given to employees as part of their compensation, usually with certain restrictions or conditions, such as remaining with the company for a set period. When these restrictions lift, employees receive actual shares that they can sell or hold. For investors, RSUs can impact a company's stock supply and reflect the company's commitment to attracting and retaining talent.

AI-generated analysis. Not financial advice.

This initiative harnesses the Company’s robust resources, including more than $20 million raised in 2025, to lead advancements in next-generation neural AI ecosystems and the potential acceleration of key AI breakthroughs

Yokneam Illit, Israel, Feb. 24, 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, recently announced the launch of ai6 Labs - the synergistic, closed-loop ecosystem dedicated to seamlessly bridging human intent with digital reality.

ai6 Labs pioneers a revolutionary neural AI ecosystem powered by non-invasive Electromyography technology and Mudra innovation. Unlike fragmented research efforts or isolated products, this integrated platform combines deep foundational research, commercialization, and rapid AI experimentation into a virtuous cycle that accelerates innovation, redefining touchless, intent-driven human-machine interaction and positioning Wearable Devices at the forefront of the next era in computing.

The ecosystem is built on three powerful, interconnected pillars:

• The Foundation Layer: Establishing a deep-tech foundation by decoding human intent through advanced neural research. Powered by the Large MUAP Model, we are building a Brain-AI Bus - a high-speed neural data highway connecting biological intent to AI. By converting "neural bits" into machine-readable data this architecture deciphers intentions and behaviors to provide AI agents with deep user insights, creating a technological moat through scalable personalization and predictive interaction.
   
• Revenue and Ecosystem Growth: Driving commercialization and revenue growth by transforming internal research outcomes into market-leading products - potentially enabling scalable monetization.
   
• AI Accelerator: Operating as a high-velocity innovation engine, testing bold AI concepts continuously across verticals such as agentic workflows, edge AI, and beyond – with the goal of rapidly graduating successful Minimum Viable Products into the product pipeline to minimize risk while maximizing breakthrough potential.

This virtuous cycle – where the foundation layer generates core IP, it is then being monetized through real-world products, and the AI accelerator fuels continuous innovation – has the potential to create unparalleled synergies, turning biological signals into actionable digital commands faster, more scalable, and more intuitively than ever before.

Asher Dahan, Chief Executive Officer of Wearable Devices, said: "We're excited to pioneer ai6 Labs - the first true ecosystem bridging intent to reality. For years, we've led with Mudra's non-invasive technology while others were still conceptualizing. Now, seeing the market surge with AI wearable devices, seamless gesture control in extended reality (“XR”), and non-invasive Brain-Computer Interfaces advancements, it's evident the world has finally arrived at this vision. This is the perfect inflection point, and we're confident ai6 Labs will produce many exciting breakthroughs and lasting value."

Mr. Dahan added: “In 2025, we significantly strengthened our cash position, raising over $20 million. We plan to efficiently utilize these resources to accelerate key AI breakthroughs.”

About Wearable Devices

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/virtual reality/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 Statements 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 potential benefits of our technology and products, that ai6 Labs puts us at the forefront of the next era in computing and that ai6 Labs will produce many exciting breakthroughs and lasting value, our belief that the current market environment represents an inflection point, and our plans to utilize our cash resources, including funds raised in 2025, to accelerate key AI breakthroughs and support our strategic AI initiatives. 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, 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 Relations Contact:

Michal Efraty
IR@wearabledevices.co.il

FAQ

What is ai6 Labs and why did Wearable Devices (WLDS) launch it on February 24, 2026?

ai6 Labs is a closed-loop neural AI ecosystem linking human intent to digital systems. According to the company, it unifies deep research, commercialization, and an AI accelerator to speed MVP development and productization.

How much cash did Wearable Devices (WLDS) raise in 2025 to support ai6 Labs?

The company raised more than $20 million in 2025 to fund AI work. According to the company, those resources will be used to accelerate research, commercialization, and rapid AI experimentation.

What is the Large MUAP Model or Brain-AI Bus referenced by Wearable Devices (WLDS)?

The Large MUAP Model is described as a neural-data architecture converting biological signals into machine-readable data. According to the company, it aims to create a high-speed "Brain-AI Bus" for intent-driven AI agents.

How will ai6 Labs affect Wearable Devices (WLDS) product commercialization and revenue?

ai6 Labs is intended to convert internal research into market products to enable monetization. According to the company, the ecosystem will graduate MVPs into the product pipeline to drive commercialization and potential revenue growth.

What technologies power Wearable Devices (WLDS) ai6 Labs for touchless interaction?

ai6 Labs uses non-invasive Electromyography and Mudra innovation to decode intent and gestures. According to the company, these technologies aim to enable scalable, touchless, intent-driven human-machine interaction across XR and edge AI.