May 2014

May 2014 Check-Cap Creating a new standard of colon 3D imagery Non Confidential EFTA00605809 Company Overview Ow Founded - 2005 Corporate Headquarters - Carmel, Israel Employees - 35 Investors — Overall $25m Raised through March 3152 2014: GE Ventures, Pontifax Ventures, Jacobs Investment (Qualcomm), Counterpoint, Docor, BXR Partners, Emigrant Saving Bank, Biomedix (BMDX:TASE) & more. Cash $3.2m as of May 2014 Current Burn Rate - - $400k Target Bridge - $6-8m Insider Participation - $3-4m Most Recent Valuation (2012) - $64m 2 iliircap EFTA00605810 A patient friendly screening method First imaging capsule for Colorectal Cancer screening (CRC) I No bowel cleansing required Designed for increased compliance Cap EFTA00605811 Check-Cap Our vision To become the leading supplier of colon cancer screening technology and significantly reduce global mortality from CRC. ti EFTA00605812 "The most preventable, yet least prevented cancer" —Journal of the National Cancer Institute EFTA00605813 The importance of CRC screening Structural Tests - enable both Polyp Detection and Cancer Prevention Stool / Blood Tests - enable Cancer Detection Highly Survivable in Early stages Spell to other er-porM1 Mama trMa, Mood fig/ vessel Illustration courtesy of the Notional Cancer Institute Stage I 93% Stage II 72-85% Stage III 44-83% Stage IV 8% Testing Compliance Key Less than 50% of the recommended population in the U.S is screened for CRC, while less than 30% is screened in Europe. 6 qiiirCap EFTA00605814 Compelling Market Size Target population of 365 million people aged 50 to 75 in U.S, Europe and Japan. > 36 million require screening annually.(1) Population between 50.75 2015 2016 2017 2018 2019 2020 USA 89,545 90,996 92,179 93,182 94,297 95,618 Europe 233,971 236,374 239,113 242.268 245,372 248,526 Japan 41,397 41,071 40,889 40,843 40,814 41,002 TOTAL 364,913 368,441 372,181 376,293 380,483 385,147 op • i r r > $18 billion total market opportunity per annumm (1) Assumes one screening for members of the target population every 1O years. (2) Based on an average selling price of $5OO. 7 EFTA00605815 Attractive Market Opportunity Poorly Addressed by Current Methods Check-Cap Offers a Differentiated Solution • Current technologies may compromise accuracy or patient safety and comfort • Colonoscopies involve significant risks and require aggressive bowel cleansing • Patient compliance levels far below those recommended by physician societies • Does not require uncomfortable bowel cleansing_necessary for other methods • Innovative and proprietary technology platform avoids traditional issues • Designed to be attractive to physicians and patients, increasing patient compliance 8 EFTA00605816 Reasons for Avoiding Existing CRC Screening Procedures Computed Tomographic Colonography Camera pill a %.a Embarrassment 11% Concern over pain 13% Fasting requirements 15% Other reasons 8% Laxative Preparation 32% Insertion of tube 21% Check-Cap imaging capsule addresses all these concerns 9 Source: Mayo Clinic Proc. 2007;82(6):666-671. Figure 1, Most troubling part of colon testing. Responses to the question, "What do you feel is the most troublesome part of colon testing?' EFTA00605817 Current Primary Modalities Detection of polyps > 50% (Cancer Prevention vs Detection) O O 00 oZS t.) CU Li- Colonoscopy Safety Comfort X v bowel cleansing n Cross Infection n Embarrassment Pre-Cancerous Efficacy* 1 Sensitivity - 95% Specificity - 95% Computed Tomographic v Insufflation Radiation y bowel cleansing Sensitivity - 85% Colonography (CTC) X Pain Specificity - 95% ssfa.- O) Optic Capsules Ni& Fecal Occult Blood Test \I Stool DNA In clinical trials Blood Tests In clinical trials Vt X_ bowel cleansing Sensitivity - 70% Specificity - 85% 1 V 1 V X Sensitivity - 23% Specificity - 97% Sensitivity - 42% Specificity - 87% x Sensitivity - 50% Specificity - 90% Key Competitors OLYMPUS PENTAX PHILIPS SIEMENS OLYMPUS GleING I exact stierces epigenomics dip Imaging Capsule io In clinical trials 1 V / Target Sensitivity > 80% Target Specificity > 90% EFTA00605818 / The Check-Cap Solution EFTA00605819 Check-Cap -maging Technology tittering X-ray Fluorescence Less contrast = Less Absorption - Increase in Comptons Compton backscattered flux of photons detected by the capsule are attenuated by the colon contents in direct proportion to their distance traveled in the colon contents, as some of the photons are absorbed by the contrast agent Capsule in Capsule In Standby Mode The x-ray Florescence flux detected by the capsule's detectors depends monotonically on the distance traveled in the colon contents mixed with the contrast agent 12 EFTA00605820 3D Capsule Technology vs. Optics EFTA00605821 3P Image Reconstruction I Cap CapScanViewer 1 OA STUDY - Nov. 2014 Erasmus MC University Hospital, Rotterdam ID-AB20 166585 Dr. Amer Pil" Bookmarks 2 45 O • itl Psptay cottons v trans line (4; Ground Piano o measurements (i) tcokmarks Standart 30 It — qua The data viewer EFTA00605822 Trial Clinical Data Reconstruction (3D) EFTA00605823 Clinical Proof of Concept "The Check-Cap novel imaging technology has been proven to be safe and feasible in our preliminary clinical experience. It has successfully demonstrated imaging of prep-less human colon at ultra-low dose compared to existing X-Ray based modalities. These results underpin the great potential of Check-Cap imaging technology to become a very appealing tool for screening of pre-cancerous polyps and colorectal cancer. Once efficacy is demonstrated, this clearly could make a fantastic impact on screening and consequently on survival rates from this disease" > Professor Nadir Arber, Head of Integrated Cancer Prevention Center, Tel Aviv Sourasky Medical Center, Israel 16 EFTA00605824 Clinical proof of concept — Demonstrated Capabilities - 3D imaging and representation (with no preparation) - Reliable correlation between Compton Backscattering & X-Ray Florescence data, leading to clinical diameters values - Automatic scan in motion triggered by predefined Activation Algorithm settings - Colon segment position data with high accuracy - All subjects reported smooth passage of capsule along the GI tract - Acceptable surface imaging using ultra low dose accumulated during procedure - Contrast material (oral) well tolerated by subjects Quantitative colon surface detection and reconstruction along movement track Results of studies suggest procedure is safe and uneventful Results of first studies indicate that the current lower limit for visible feature size is 5- 6 mm, and —10mm polyps should be well within the imaging capability of the Check-Cap capsule. We believe that improvements in hardware and algorithm should enable us to decrease the lower limit of visible feature size to 2 mm, to provide high detection rate for 5 mm polyps & very high detection rate for 10 mm polyps. 17 EFTA00605825 Clinical Trial Data Reconstruction Stages (fused CMT and XRF) - PP100204_P42-Scan01 Reconstruction Stages (fused CMT and XRF) 1. Preprocessed 3. Tubed 3D Reconstruction ellitill e 4. Path 3D reform 2. Fillet 3D Reconstruction 18 EFTA00605826 Commercializable Tracking System ELS III — Preliminary concept II ego Check-Cap 3D VIEWER Check-App - Patient Interface Receiver Unit including Position Tracking System Disposable Patch on Patient's Back Data Download Capsule in Colon S Receiver I2F EFTA00605827 X-ray radiation control mSv 16 14 12 10 8 6 4 2 0 Low Energy Low Radiation Exposure Typical Organ Radiation Doses from Various Radiologic Studies As reference. below is Data from the National Council on Radiation Protection and Measurements. 'Ionizing Radiation Exposure of the Population of the United States' March 3. 2009: CT procedure Range for effective dose (msv) Chest 4-18 Abdomen and pelvis 3-25 Virtual colonoscopy 5-15 Whole-body screening 5-15 Angrography. heart 5-32 Check-Cap Dental Lateral Chest Screening Adult Barium Enema Imaging Radiography Radiography Mammography Abdominal CT giiircap EFTA00605828 Clinical Data Generation Motility Clinical Trial Completed Sample size - 60 subjects. Site — Hamburg, Germany. End points: GI Motility information for Activation Algorithm. CE Pivotal trial Sample size — 40-60 subjects. Sites — 2 in Israel, 1 in the Netherlands, possibly 1 more. End points: Safety — Continued. Feasibility — Continued. Image resolution, Polyp Imaging First clinical cases of the Imaging Capsule Completed • FDA Pivotal trial Clinical Proof of Concept Completed Sample size - 10 subjects. Site — Tel Aviv Medical Center. End points: Safety — Demonstrated. Feasibility — Demonstrated. Sample size — 800 subjects. Sites — 10 in the US, 5 in Europe. End points: Safety — Continued. Feasibility — Continued. Image resolution, Polyp Imaging. Sensitivity & Specificity in detection of polyps 10 mm & above, 6-9 mm: A i. • I I Compared to upuLai culuilustupy. B. Possibly on specific segments: Clinical surveillance. Patients negative FOBT when additional info is needed. Patients with incomplete colonoscopy. Patients who cannot tolerate prep. Patients with tortuous anatomy etc. EFTA00605829 Anticipated Development, Clinical & Financial Roadmap Product Development C.E Trials & European Market US Trials & Regulations 2nd Gen Capsule Development Inc. cost reduction and optimization Q3-Q4 2013 2014 Clinical Activation & Clinical Reconstruction algorithm op (Design freeze @ O4/14) TLV Hospital TLV & Erasmus (NL) Clinical Proof of Concept (5 par.) Clinical AA (10 par.) CE Pivotal (50-60 par.) US Protocol, site selection and study design Request for FDA trial initiation Post marketing in Europe (200 participants) US Pivotal Trial 800 participants EFTA00605830 Reimbursement Aspects Current Status Covered for CRC screening*: FOBT Barium Enema Flexible Sigmoidoscopy Optical Colonoscopy Not Covered for CRC Screening Yet: CTC (Covered by some private insurers) Stool DNA Colon - Capsule Endoscopy: Given's capsule received FDA clearance Cost effectiveness models have been designed for Europe SB & ESO capsules are covered Our Strategy • Collect information about expected increase in screening adherence rate (expected increase > 25%) • Collect information about direct and indirect Costs (expected decrease > 15%) • Emphasized findings are limited to intra-colon only (as opposed to CTC) • Utilize capsule endoscopy value story to demonstrate cost effectiveness • Penetrate private insurers first as differentiating service • Work with ACG, AGA, ACS to achieve reimbursement as quickly as possible * All Medicare beneficiaries age 50 and older are covered; However, when an individual is at high risk, there is no minimum age required to receive a screening colonoscopy or a barium enema rendered in place of that screening colonoscopy. EFTA00605831 Reimbursement Aspects ea Original Bride Cost-effectiveness of capsule endoscopy in screening for colorectal cancer kW/Nets n•V tut cs. C Hawn. A. Sub. S WS.. ihlorrini ---rar.r.-iv ore dr? urn. redo.. op/ tint. 'Cava fo• gets V.r ror ea' rt.'s; Roan Ray mondiad taw* NW sm.., Aar 'aria:. Sabre...ad and study arm Caplideendoscopy rancopy and cipauk adman was d 16 le t Minim Cdon • hn recent shmvn acapUble and $2, 244 pa hIc- war favtrd. regret twit t t r ... until colonoscopy adherence was decreased to 83%, corresponding to a 17% difference in adherence between the two strategies." Cost of treating CRC is $14 billion annually in the US and $99 billion globally * 17% increase in adherence = capsule endoscopv more cost effective than screening colonoscopy EFTA00605832 New Health Care Law One benefit of the new health care law: Free colon cancer tests 1 in 3 U.S. adults have never been screened but will now have coverage for this and other preventive services Published: November 07. 2013 10:30 AM If you've put off getting screened for colon cancer because you didn't have health insurance, there's good news. Under the new health care law. colorectal screening tests are availble at no cost to you. About a third of U.S. adults ages 50 to 75 have never been screened for colon cancer or are not up to date with screening recommendations, according to a new survey from the Centers for Disease Control and Prevention. And more than half of those people had no health insurance. But through the new health law, more Americans will have access to health coverage and preventive services such as colorectal cancer screening tests. During a colonoscopy. doctors can detect and remove polyps (shown here in red). 25 EFTA00605833 Bridge Financing • Target raise: US$6m. Minimum: US$4m; Maximum: US$8m • Terms highly attractive: Discount 25 25% Interest 5% Warrant coverage 100% * * Warrants for four years, at 120% of Offering price 26 EFTA00605834 Intellectual Property Check-Cap has received patent grants from the U.S. patent office as well as from China, EPO, Japan, Hong Kong and India for the core technology — "Intra lumen polyp detection". Our granted patents (2010-11) cover an ingestible capsule with a radiation source and radiation detectors that, when used in conjunction with a radio opaque contrast agent, is adapted to detect clinically relevant findings in the colon. Utilizing X-ray florescence and Compton back scatterings, the capsule is able to measure the distance between the capsule and the colon wall and to distinguish between gas and clinically significant findings in the gastrointestinal tract. EFTA00605835 Company Leadership Management Team • Guy Neev - CEO since March 2008. 14 years of executive management experience. Chief Executive Officer at Cappella. Business unit manager at Boston Scientific. • Alex Ovadia - VP of since January 2013. 11 years of experience in managing complex projects at Philips Medical. 10 years of development management positions at Elbit Systems. • Yoav Kimchy - Founder and CTO since Feb 2005. 12 years of executive experience Vice President at V-Target Ltd. Director of cardiovascular research at Impulse Dynamics Ltd. • Lior Torem - CFO Since Mar 2010. Strong Chief Financial Officer experience in both private and public companies. CFO at Tigo Energy Vice President of finance at Actelis Networks Inc 28 EFTA00605836 Scientific Advisors Dr. Douglas K. Rex - Professor of Medicine, Indiana University School of Medicine rIll Dr. Perry Pickhardt - Professor of Medicine, University of Wisconsin Medical School Dr. Peter Fitzgerald - Professor of Cardiology, Stanford University Medical School Dr. Nadir Arber — Professor of Medicine, Tel Aviv Medical Center Steve Hanley - Former President, Covidien's Imaging Solutions unit *Partial list 29 EFTA00605837 Summary • Target Bridge raise: US $6-8m • Innovative disruptive technology with clear competitive advantage • Very attractive market opportunity • Feasibility & safety clinically proven • Well defined regulatory pathway • Core patents granted in all major territories • Seasoned management & advisory teams • Leading and committed investors Oos p 30 VIEW. (T334-App • PM. WNW< 30 OFop EFTA00605838 Thank You es EFTA00605839