Check-Cap (CHEK) Q4 2025 earnings summary

Executive summary

• Achieved net income of $4.1 million in 2025, reversing prior years' losses, primarily due to a non-cash credit loss recovery from the Apollo loan conversion.

• Discontinued C-Scan clinical development and shifted focus to strategic alternatives, including a pending merger with MBody AI and acquisition of Ghost Kitchen franchise rights in New Jersey.

• Entered into a business combination agreement with MBody AI, expected to close in the first half of 2026, with MBody AI shareholders to own 90% of the combined company.

• Substantial doubt remains about the ability to continue as a going concern, dependent on successful merger completion and additional capital raising.

Financial highlights

• Net income for 2025 was $4.1 million, compared to net losses of $25.1 million in 2024 and $17.6 million in 2023.

• Operating loss for 2025 was $2.4 million, down from $9.5 million in 2024, due to lower general and administrative expenses.

• No research and development expenses were incurred in 2025 or 2024, compared to $8.3 million in 2023.

• As of December 31, 2025, accumulated deficit was $165.9 million and shareholders' equity was $3.4 million.

• Cash and cash equivalents at year-end 2025 were $2, with $219,000 in total current assets.

Outlook and guidance

• The merger with MBody AI is anticipated to close in the first half of 2026, subject to regulatory and shareholder approvals.

• The company expects to continue incurring operating losses and will require substantial additional financing to fund operations.

• Future capital needs are expected to be met through the ARC ELOC Facility, equity offerings, or other financing transactions.