Page 1

Check Cap Check - Cap Reports Third Quarter 2021 Financial Results and Corporate Update ISFIYA , Israel , Nov. 3 , 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 firs 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 third quarter and nine months ended September 30 , 2021 . Third Quarter and Recent Highlights : • Strengthened balance sheet through gross proceeds of $ 35 million in a registered direct offering completed i July 2021. The Company believes that it has sufficient capital to fund its ongoing operations and plans , including the U.S. pivotal study , until well into 2023 . • Strengthened clinical team with the appointment of Dr. Hanit Brenner - Lavie as Vice President of Clinical Affairs and by additional qualified clinical employees . Dr. Brenner - Lavie is leading the Company's overall clinical strategy and its implementation , including the execution of the planned U.S. pivotal trial . • Expanded C - Scan manufacturing capacity and on - premise production line . • Continued patient enrollment and data collection at Israeli sites , to further enable optimization of C - Scan's functionality and patient experience ahead of the U.S. pivotal trial . • Granting of new U.S. patent covering the C - Scan® proprietary tracking technology that enables real time tracking of the capsule and its activation only when it moves throughout the colon . This functionality allows for optimal scanning along the gastrointestinal ( GI ) tract while maintaining low energy consumption during the procedure . The patent also covers the capsule positioning data recording for the C - Scan analysis suite , which enables gastroenterologists to make a clinical decision and generate a report with their diagnosis and recommendations . This patent will expire in May 2034. Corresponding patents were issued in Japan and Chin and patents were approved for granting in Europe and Israel . " This past quarter we have been actively focused on meeting our critical objectives to advance towards the initiation of the U.S. pivotal trial , " said Alex Ovadia , chief executive officer of Check - Cap . " The expansion of our manufacturing capacity and the entire production process is expected to secure the robust supply chain of C - Scal devices during the trial . The hire of Dr. Brenner has further strengthened our clinical team to support initiation an management of the planned U.S pivotal trial . " Mr. Ovadia added , " In addition , our team has continued to build and fortify our patent portfolio ahead of global product commercialization . The recent granting of the patent covering our proprietary tracking technology along with our total patent portfolio secure our exclusive rights to our technology worldwide and enhances shareholder value . " Financial Results for the Third Quarter Ended September 30 , 2021 Research and development expenses were $ 3.0 million for the three months ended September 30 , 2021 , compared to $ 2.7 million for the same period in 2020. The increase is primarily due to a $ 0.3 million increase in salary and related expense and a $ 0.1 million increase in material and subcontractors ' expenses , offset in part by a $ 0.1 million grant received from the Israel Innovation Authority , which reduced research and development expenses . General and administrative expenses were $ 1.2 million for the three months ended September 30 , 2021 , compared to $ 1.0 million for the same period in 2020. The increase is primarily due to a $ 0.15 million increase in other general expenses and a $ 0.05 million increase in salary and related expense . Operating loss was $ 4.3 million for the three months ended September 30 , 2021 , compared to $ 3.6 million for the same period in 2020 . Finance income was $ 22,000 for the three months ended September 30 , 2021 , compared to $ 13,000 for the same period in 2020 . Net loss was $ 4.2 million for the three months ended September 30 , 2021 , compared to $ 3.6 million for the same period in 2020 . Cash and cash equivalents , restricted cash and short - term bank deposits as of September 30 , 2021 were $ 56.8 million , compared with $ 29.3 million as of June 30 , 2021 and $ 18.1 million as of December 31 , 2020. During the