• Wearable Devices’ proprietary Surface Nerve Conductance technology enables touchless control through subtle finger movements, positioning the company at the forefront of the emerging neural input category
• Recent partnership with Japanese e-commerce leader Media Exceed expands global distribution for Mudra Band and Mudra Link products into one of the world’s most tech-savvy consumer markets
• The company’s dual-channel strategy combines direct-to-consumer sales with enterprise licensing, targeting high-growth sectors including AR/VR/XR and smart environments

Wearable technology is evolving, including traditional input methods giving way to more intuitive, natural interfaces. While most wearable devices still rely on touchscreens, voice commands, or basic gestures that require line-of-sight interaction, a fundamental shift is occurring toward neural input systems that can interpret the subtlest human intentions. This evolution reflects a broader trend in human-computer interaction: the movement away from devices that require users to adapt their behavior toward technology that adapts to natural human movement patterns.

Current wearable interfaces often create friction in user experience. Smartwatch users must stop what they’re doing to tap screens or perform exaggerated gestures. AR and VR headset users struggle with controllers that break immersion or hand tracking that fail in low-light conditions. Voice commands work inconsistently in noisy environments, while traditional gesture recognition requires users to be within specific camera ranges.

The breakthrough lies in neural input technology that can detect and interpret the electrical signals generated by muscle contractions and nerve activity, even when movements are so subtle they’re barely perceptible. This approach promises to eliminate the friction between human intention and digital response, creating truly seamless interaction experiences.

That’s exactly the market opportunity Wearable Devices (NASDAQ: WLDS) is addressing with its AI-powered neural input technology platform.

Proprietary Technology Creates Competitive Moat

Wearable Devices has developed what may be the industry’s most advanced neural input solution through its proprietary Surface Nerve Conductance (“SNC”) sensors. Unlike traditional gesture recognition systems that rely on cameras or accelerometers, SNC technology captures nerve signals directly from the ulnar, radial, and median nerves, achieving 96% accuracy using deep learning AI for signal pattern matching.

The company’s flagship products, the Mudra Band for Apple Watch users and the Mudra Link for Android and Windows devices, demonstrate this technology’s practical applications. The SNC sensors convert neural signals into digital actions through enhanced signal processing using deep learning neural networks, enabling pre-built gestures including continuous tap, double tap, and discrete gestures that can be customized per use case.

This technological approach addresses critical pain points in existing gesture control systems. The key innovation lies in the elimination of line-of-sight gesture requirements, which addresses critical pain points in current AR and VR implementations. Users can control devices while their hands are in pockets, under tables, or in any position, making the technology practical for real-world applications where traditional gesture control fails.

The Mudra Link’s recognition at CES 2025, where it received an Innovation Award in the XR Technologies and Accessories category, validates the market’s recognition of neural input as a transformative technology category.

Strategic Market Expansion Accelerates Growth

Wearable Devices recently announced a collaboration with Media Exceed Co., Ltd., a leading e-commerce company to distribute its products in Japan. This partnership represents more than simple market expansion; it’s strategic entry into one of the world’s most technologically sophisticated consumer markets.

Japan’s consumer electronics market has historically served as a proving ground for innovative interface technologies. The country’s early adoption of mobile interfaces, gaming peripherals, and robotic interaction systems makes it an ideal testing ground for neural input technology. The non-exclusive reseller agreement will support both drop shipping and wholesale models, providing operational flexibility while Media Exceed’s e-commerce expertise ensures proper market positioning.

CEO Asher Dahan emphasized the strategic importance of this expansion: “This collaboration aligns with our strategic goal of expanding our global footprint and making our products more accessible to users worldwide.” The partnership with Media Exceed demonstrates Wearable Devices’ commitment to building sustainable distribution channels rather than relying solely on direct sales.

Dual-Channel Strategy Maximizes Market Opportunity

Wearable Devices operates through a sophisticated dual-channel model that captures value across both consumer and enterprise markets. The direct-to-consumer channel serves individual users seeking enhanced experience in gaming, productivity, and extended reality applications. Meanwhile, the enterprise licensing channel targets businesses developing immersive and interactive environments.

This approach is particularly strategic given the different adoption cycles in consumer versus enterprise markets. Consumer adoption often drives initial awareness and validates use cases, while enterprise partnerships provide the scale and stability necessary for sustained growth. The company partnered with Qualcomm for XR experiences development and TCL-RayNeo for AR glasses technology integration, demonstrating its ability to secure high-profile enterprise collaborations.

The enterprise channel also provides valuable data for technology refinement. Business applications often involve more consistent usage patterns and clearer success metrics than consumer applications, enabling Wearable Devices to optimize its algorithms and expand its gesture vocabulary based on real-world usage data.

The company has demonstrated significant traction with over 1,000 Mudra Bands shipped for Apple Watch since Q4 2023, proving technology readiness and establishing brand awareness. Additional enterprise partnerships include agreements with defense contractors for silent activation of tactical equipment and integration with OPPO’s MR Glass Developer Edition.

Technology Integration Drives Market Leadership

Wearable Devices’ positioning in the neural input category extends beyond hardware to encompass the software and AI algorithms necessary for reliable signal interpretation. The company’s approach integrates proprietary sensors with advanced machine learning systems that can adapt to individual users’ unique neural patterns and movement signatures.

This technological integration is crucial because neural input systems must account for significant variation between users. Factors including hand size, muscle development, skin conductance, and even emotional state can affect signal quality and interpretation. Wearable Devices’ AI-powered approach enables personalized calibration that improves accuracy over time.

The company’s focus on setting standards for neural input in the XR ecosystem positions it to benefit from the broader adoption of augmented and virtual reality technologies. As major technology companies invest heavily in metaverse and spatial computing initiatives, neural input technology becomes increasingly valuable for creating natural, immersive user experiences.

The timing appears strategic as major technology platforms begin incorporating neural input capabilities into their roadmaps. Apple’s ongoing development of brain-computer interface research, Meta’s investment in neural wristbands, and Google’s exploration of gesture-based interfaces all validate the neural input category that Wearable Devices is pioneering.

For more information, visit www.WearableDevices.co.il.

NOTE TO INVESTORS: The latest news and updates relating to WLDS are available in the company’s newsroom at https://ibn.fm/WLDS

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