Check-Cap Reports Second Quarter 2023 Financial Results
ISFIYA,
Financial Results for the Second Quarter Ended June 30, 2023
Research and development expenses, net, were
The increase is primarily due to (i) an increase of approximately
General and administrative expenses were
Impairment of fixed assets was
Operating loss was
Finance income, net, was approximately
Net loss was
Cash and cash equivalents, restricted cash and short-term bank deposits as of June 30, 2023 were
The number of outstanding ordinary shares as of June 30, 2023 was 5,849,216.
Financial Results for the Six Months Ended June 30, 2023
Research and development expenses, net, were
General and administrative expenses were
Impairment of fixed assets was
Operating loss was
Net finance income was
Net loss was
Net cash used in operating activities was
About Check-Cap
Check-Cap is a clinical stage medical diagnostics company aiming to redefine colorectal cancer (CRC) screening through the introduction of C-Scan®, the first and only patient-friendly preparation-free screening test to detect polyps before they may transform into colorectal cancer and enable early intervention and cancer prevention. The Company's disruptive capsule-based screening technology aims to help millions of people to stay healthy through preventive CRC screening. C-Scan uses an ultra-low dose X-ray capsule, an integrated positioning, control and recording system, as well as proprietary software to generate a 3D map of the inner lining of the colon as it travels naturally along the gastrointestinal tract. C-Scan is non-invasive and requires no sedation. It requires no bowel preparation, allowing the patients to continue their daily routine with no interruption. C-Scan is not intended to replace colonoscopy. A positive C-Scan result should be followed by colonoscopy. C-Scan is an investigational device and is not available for sale in
Legal Notice Regarding Forward-Looking Statements
This press release contains "forward-looking statements" about the Company's expectations, beliefs or intentions regarding, among other things, its product development efforts, business, financial condition, results of operations, strategies or prospects. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar expressions, as well as statements in future tense, often signify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of when such performance or results will be achieved. Forward-looking statements are based on information that the Company has when those statements are made or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. For a discussion of these and other risks that could cause such differences and that may affect the realization of forward-looking statements, please refer to the "Forward-looking Statements" and "Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 2022 and other filings with the Securities and Exchange Commission (SEC). Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise
Investor Contacts
Irina Koffler
LifeSci Advisors, LLC
646.970.4681
ikoffler@lifesciadvisors.com
Meirav Gomeh-Bauer
LifeSci Advisors, LLC
+972(0)-54-476-4979
Meirav@lifesciadvisors.com
Media Contact
Mónica Rouco Molina
Account Supervisor -
LifeSci Communications
mroucomolina@lifescicomms.com
CHECK CAP LTD | ||||
CONSOLIDATED UNAUDITED BALANCE SHEETS | ||||
( | ||||
June 30, | December 31, | |||
2023 | 2022 | |||
Unaudited | Audited | |||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ | 2,254 | $ | 4,090 |
Restricted cash | 350 | 352 | ||
Short-term bank deposit | 29,815 | 37,609 | ||
Prepaid expenses and other current assets | 838 | 579 | ||
Total current assets | 33,257 | 42,630 | ||
Non-current assets | ||||
Property and equipment, net | 245 | 1,751 | ||
Operating leases | 223 | 1,060 | ||
Total non-current assets | 468 | 2,811 | ||
Total assets | $ | 33,725 | $ | 45,441 |
Liabilities and shareholders' equity | ||||
Current liabilities | ||||
Accounts payable and accruals | ||||
Trade | $ | 783 | $ | 952 |
Other | 675 | 802 | ||
Employees and payroll accruals | 1,946 | 1,261 | ||
Other current liabilities | 48 | 56 | ||
Operating lease liabilities | 83 | 337 | ||
Total current liabilities | 3,535 | 3,408 | ||
Non-current liabilities | ||||
Royalties provision | - | 94 | ||
Operating lease liabilities | - | 627 | ||
Total non-current liabilities | - | 721 | ||
Shareholders' equity | ||||
Share capital, Ordinary shares, | 83,728 | 83,664 | ||
Additional paid-in capital | 85,075 | 84,941 | ||
Accumulated deficit | (138,613) | (127,293) | ||
Total shareholders' equity | 30,190 | 41,312 | ||
Total liabilities and shareholders' equity | $ | 33,725 | $ | 45,441 |
CHECK CAP LTD | |||||||||
CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS | |||||||||
( | |||||||||
Six months ended June 30, | Three months ended June 30, | ||||||||
2023 | 2022 | 2023 | 2022 | ||||||
Research and development expenses, net | $ | 8,151 | $ | 7,673 | $ | 4,480 | $ | 3,545 | |
General and administrative expenses | 2,762 | 3,100 | 1,583 | 1,343 | |||||
Impairment of fixed assets | 1,364 | - | 1,364 | - | |||||
Operating loss | 12,277 | 10,773 | 7,427 | 4,888 | |||||
Finance Income , net | 957 | 132 | 549 | 81 | |||||
Loss before income tax | 11,320 | 10,641 | 6,878 | 4,807 | |||||
Net loss for the period | $ | 11,320 | $ | 10,641 | $ | 6,878 | $ | 4,807 | |
Loss per share: | |||||||||
Net loss per ordinary share basic and diluted | $ | 1.94 | $ | 1.94 | $ | 1.18 | $ | 0.82 | |
Weighted average number of ordinary shares outstanding - basic and diluted | 5,847,392 | 5,497,548 | 5,848,565 | 5,840,089 |
CHECK CAP LTD. | |||||||||||||||||
CONSOLIDATED UNAUDITED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | |||||||||||||||||
( | |||||||||||||||||
Number of | Additional | Total | |||||||||||||||
Ordinary | paid-in | Accumulated | shareholders' | ||||||||||||||
Shares (1) | Amount | capital | deficit | equity | |||||||||||||
Balance as of January 1, 2023 | 5,844,463 | $ | 83,664 | $ | 84,941 | $ | (127,293) | $ | 41,312 | ||||||||
Share-based compensation | - | - | 156 | - | 156 | ||||||||||||
Net loss | - | - | - | (4,442) | (4,442) | ||||||||||||
RSUs vesting | 3,375 | 46 | (46) | - | - | ||||||||||||
Balance as of March 31, 2023 | 5,847,838 | $ | 83,710 | $ | 85,051 | $ | (131,735) | $ | 37,026 | ||||||||
Share-based compensation | - | - | 42 | - | 42 | ||||||||||||
RSUs vesting | 1,378 | 18 | (18) | - | - | ||||||||||||
Net loss | - | - | - | (6,878) | (6,878) | ||||||||||||
Balance as of June 30, 2023 | 5,849,216 | $ | 83,728 | $ | 85,075 | $ | (138,613) | $ | 30,190 | ||||||||
Balance as of January 1, 2022 | 4,840,089 | $ | 68,787 | $ | 90,089 | $ | (108,185) | $ | 50,691 | ||||||||
Issuance of ordinary shares and warrants in March 2022 registered | 1,000,000 | 14,815 | (5,965) | - | 8,850 | ||||||||||||
Share-based compensation | - | - | 250 | - | 250 | ||||||||||||
Net loss | - | - | - | (5,834) | (5,834) | ||||||||||||
Balance as of March 31, 2022 | 5,840,089 | $ | 83,602 | $ | 84,374 | $ | (114,019) | $ | 53,957 | ||||||||
Share-based compensation | - | - | 274 | - | 274 | ||||||||||||
Net loss | - | - | - | (4,807) | (4,807) | ||||||||||||
Balance as of June 30, 2022 | 5,840,089 | $ | 83,602 | $ | 84,648 | $ | (118,826) | $ | 49,424 |
CHECK-CAP LTD. | |||||
CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS | |||||
( | |||||
Six months ended | |||||
June 30, | |||||
2023 | 2022 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net loss | $ | (11,320) | $ | (10,641) | |
Adjustments required to reconcile net loss to net cash used in operating activities: | |||||
Depreciation | 190 | 159 | |||
Impairment of fixed assets | 1,364 | - | |||
Share-based compensation | 198 | 525 | |||
Financial income, net | (323) | (239) | |||
Changes in assets and liabilities items: | |||||
Increase in prepaid and other current assets and non-current assets | (255) | (152) | |||
Increase (decrease) in trade accounts payable, accruals and other current liabilities | (270) | 320 | |||
Increase (decrease) in employees and payroll accruals | 686 | (293) | |||
Decrease in royalties provision | (94) | (25) | |||
Net cash used in operating activities | $ | (9,824) | $ | (10,346) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchase of property and equipment | (83) | (323) | |||
Changes in short-term deposits | 8,069 | (13,000) | |||
Net cash provided by (used in) investing activities | $ | 7,986 | $ | (13,323) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Issuance of ordinary shares in the registered direct offerings, net of issuance expenses | - | 8,850 | |||
Net cash provided by financing activities | $ | - | $ | 8,850 | |
Net increase in cash, cash equivalents and restricted cash | (1,838) | (14,819) | |||
Cash, cash equivalents and restricted cash at the beginning of the period | 4,442 | 26,807 | |||
Cash, cash equivalents and restricted cash at the end of the period | $ | 2,604 | $ | 11,988 |
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SOURCE Check-Cap Ltd.