Owlet wants new parents to get some sleep with its high-tech baby accessory.

The Utah based company is out with a new and improved smart sock for babies that tracks their heart rate and oxygen levels while they sleep. According to Owlet, its new version fits more snugly and can be worn on either foot.

The new design also lets the baby's toes breathe. The gadget's defining feature—a sensor placement within the sock—has been improved, and there is now a smartphone application that logs and tracks the data collected.

"It's called pulse oximetry," Owlet CEO and co-founder Kurt Workman told CNBC's "On the Money" this week. "So it's that little red light that they put on your finger in the hospital, and it just shines a light through the skin and can measure the heart rate and oxygen."

Should the child's oxygen level or heart rate exceed an acceptable range, the base monitor sounds an alarm.

Workman has plans to partner with other companies, and integrating Owlet with other devices in ways that will link parents to medical professionals.

"We're collecting the largest data base of infant health that's ever existed, so we believe that that data base will solve some of the biggest challenges with infant health," he said.