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Check Cap Check - Cap Reports Second Quarter 2021 Financial Results and Corporate Update ISFIYA , Israel , Aug. 5 , 2021 / PRNewswire / -- Check - Cap Ltd. ( the " Company " or " Check - Cap " ) ( NASDAQ : CHEK ) , ( NASDAQ : CHEKZ ) , a clinical stage medical diagnostics company advancing the development of C - ScanⓇ , the first and only patient - friendly , preparation - free screening test to detect polyps before they may transform into colorectal cancer ( CRC ) , today announced financial results and provided a corporate update for the second quarte and six months ended June 30 , 2021 . Second Quarter and Recent Highlights : • Strengthened balance sheet through gross proceeds of $ 35 million in a registered direct offering of ordinary shares and warrants , completed on July 2 , 2021. The Company believes that it has sufficient capital to fund i ongoing operations and plans , including the U.S. pivotal study , until well into 2023 . • The Company continues to expand its entire production process to meet its target manufacturing capacity , including expansion of the Company's manufacturing space . In addition , the remediation of the technical issues associated with a single source supplier has been mostly completed and the Company expects the supplier to return to normal operations in the coming weeks . " Strengthening our entire production process with the expansion of our production capabilities ahead of the 2022 U.S. pivotal trial is the Company's highest priority , " said Alex Ovadia , Chief Executive Officer of Check - Cap . " We believe that the technical issues associated with the single source supplier are nearing full resolution and we are continuing to focus our efforts on the initiation of our pivotal trial . " Mr. Ovadia added , " We recently strengthened our cash position with a $ 35 million financing completed in July 202 and through a total of $ 19.2 million in proceeds from warrant exercises during the first quarter of 2021. We believ that we are well positioned to fund our ongoing clinical development of C - Scan® , including the Company's U.S. pivotal study , and general corporate purposes , until well into 2023. " Financial Results for the Second Quarter Ended June 30 , 2021 Research and development expenses were $ 2.8 million for the three months ended June 30 , 2021 , compared to $ 2.1 million for the same period in 2020. The increase is primarily due to a $ 0.3 million increase in material and subcontractors ' expenses and a $ 0.3 million increase in salary and related expense . General and administrative expenses were $ 1.1 million for the three months ended June 30 , 2021 , compared to $ 0.9 million for the same period in 2020. The increase is primarily due to a $ 0.2 million increase in other general expenses . Operating loss was $ 3.9 million for the three months ended June 30 , 2021 , compared to $ 2.9 million for the same period in 2020 . Finance income was $ 5,000 for the three months ended June 30 , 2021 , compared to $ 61,000 for the same period in 2020 . Net loss was $ 3.9 million for the three months ended June 30 , 2021 , compared to $ 2.9 million for the same period in 2020 . Cash and cash equivalents , restricted cash and short - term bank deposits as of June 30 , 2021 were $ 29.3 million , compared with $ 34.0 million as of March 31 , 2021 and $ 18.1 million as of December 31 , 2020. During the first quarter of 2021 , certain warrant holders exercised warrants to purchase an aggregate 24,204,682 ordinary share which had been issued in 2020 , at exercise prices ranging from $ 0.75- $ 0.80 , which generated total gross proceed of approximately $ 19.2 million to the Company . On June 30 , 2021 , the Company entered into a definitive agreement for the purchase and sale of 25,925,926 of the Company's ordinary shares and accompanying short- term warrants to purchase up to an aggregate of 25,925,926 of the Company's ordinary shares in a registered direct offering . The registered direct offering , which was consummated on July 2 , 2021 , resulted in gross proceed ! to the Company of $ 35.0 million or approximately $ 31.8 million net of offering expenses . The Company believes that it has sufficient capital to fund its ongoing operations and plans until well into 2023 . The number of outstanding ordinary shares as of June 30 , 2021 was 70,473,641 . On July 2 , 2021 , the Company completed a registered direct offering and issued 25,925,926 ordinary shares . As of August 5 , 2021 , the number the Company's outstanding ordinary shares was 96,403,624 .