Wearable Devices Ltd. (NASDAQ:WLDS) stock surged Thursday after the company disclosed a $4 million financing agreement, unveiled a newly granted U.S. patent, and reported improved first-half results.

The Israel-based firm said it entered into a direct offering with a single institutional investor for 1 million ordinary shares priced at $4 each. The company said proceeds from the deal will be used for working capital and corporate needs.

It also issued unregistered warrants for another 1 million shares, carrying the same strike price and exercisable for five years. The transaction is expected to close Sept. 12, subject to routine approvals.

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On Wednesday, the company announced a U.S. patent for its Gesture and Voice Controlled Interface Device. The system integrates hand gestures, voice commands and biometric verification, creating a multi-layered approach to user interaction. The patent disclosure contributed to an after-hours rally, with WLDS up more than 18% at $6.12.

Revenue for the first half of 2025 reached $294,000, its first commercial sales milestone. Growth came from the Mudra Link neural wristband and steady sales of the Mudra Band for Apple (NASDAQ:AAPL) Watch.

Net loss narrowed to $3.7 million from $4.2 million a year earlier as the company reined in research and administrative expenses.

Beyond consumer devices, the company highlighted defense-related projects involving touchless neural control systems. In Asia, it formed a distribution partnership with Japan’s Media Exceed Co., positioning itself to tap a market eager for human-machine interface innovations. Executives said both moves strengthened the company’s patent portfolio and long-term commercialization strategy.

For investors seeking to track the broader market sentiment in the automation and artificial intelligence sectors, the Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ) and the ARK Innovation ETF (NYSE:ARKK) are relevant options.

Price Action: WLDS shares are trading higher by 64.67% to $8.530 at last check Thursday.

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