Wearable Devices Ltd. (NASDAQ: WLDS) received a $750,000 non‑dilutive grant from the Israel Innovation Authority to fund a clinical pilot program with Soroka University Medical Center. The grant will support the validation of the Mudra Link neural wristband, a touch‑free wearable that delivers real‑time biofeedback for patients with impaired grip‑force control after motor‑cortex brain injuries.
The grant comes at a time when Wearable Devices is still operating at a net loss of $7.9 million for 2024 and has generated only $522,000 in revenue that year, up from $82,000 in 2023. The infusion of grant capital therefore represents a meaningful, equity‑free source of cash that can accelerate product development without diluting shareholder ownership, while also providing a tangible milestone that may improve investor confidence in the company’s long‑term viability.
Strategically, the partnership with Soroka University Medical Center provides an independent, clinical setting to validate the Mudra Link’s therapeutic claims. Successful completion of the pilot could open a new revenue stream in the regulated medical device market, complementing the company’s existing consumer and enterprise offerings. The grant also reduces the financial risk associated with the clinical trial, allowing Wearable Devices to focus resources on scaling the technology rather than raising additional capital.
Guy Wagner, President and Chief Scientific Officer, said the pilot “is a critical next step on the path toward establishing Mudra as the standard of care in grip‑force neurorehabilitation worldwide.” He added that the IIA’s support underscores the broader industry interest in low‑cost, home‑based rehabilitation solutions.
While the grant is a positive development, analysts remain cautious, with a consensus “Sell” rating for WLDS. The company’s ongoing net losses and modest revenue growth suggest that the grant will be a step in a longer journey toward profitability rather than an immediate turnaround.
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