Persistent negative free cash flow and the absence of a self-sustaining business model have forced the company to exhaust its capital reserves, with retained earnings losses now totaling -$170.0 million.
| Cash from Operations | -8K | -16.95M | -18.71M | -16.26M | -13.11M | -12.84M | -10.03M | -9.15M | -7.92M | -8.63M | -4.54M | -3.66M | -4.16M |
| Operating CF Margin % | - | - | - | - | - | - | - | - | -3247.13% | -4987.28% | 576.27% | - | - |
| Operating CF Growth % | 99.95% | 9.37% | -15.02% | -24.03% | -2.1% | -27.99% | -9.66% | -15.49% | 8.17% | -90% | -24.17% | 12.09% | - |
| Net Income | -25.15M | -17.57M | -19.11M | -17.2M | -13.85M | -13.84M | -10.59M | -9.77M | -8.83M | -12.29M | -4.08M | -4M | -3.72M |
| Depreciation & Amortization | 161K | 212K | 404K | 205K | 148K | 115K | 147K | 157K | 130K | 92K | 78K | 77K | 73K |
| Stock-Based Compensation | 12K | -57K | 879K | 491K | 408K | 516K | -65K | 726K | 1.21M | 3.72M | 312K | 57K | 31K |
| Deferred Taxes | 0 | 0 | 0 | -539K | 0 | 0 | 0 | 0 | 0 | 0 | -1.43M | -116K | -379K |
| Other Non-Cash Items | 24.97M | 1.73M | -624K | 539K | 7K | 40K | 67K | -165K | -56K | -185K | 312K | 55K | 31K |
| Working Capital Changes | -12 | -1.27M | -258K | 242K | 170K | 322K | 406K | -97K | -380K | 31K | 261K | 265K | -195K |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 497K | -851K | 207K | 362K | -317K | 503K | 416K | 275K | -252K | 334K | 1.34M | 82K | -385K |
| Cash from Investing | -840 | 21.36M | -12.51M | -16.01M | -10.45M | 5.45M | -5.72M | -231K | 4.69M | -5.07M | -45K | 3.4M | -3.54M |
| Capital Expenditures | 0 | -83K | -486K | -1.01M | -379K | -167K | -94K | -231K | -166K | -270K | -45K | -45K | -105K |
| CapEx % of Revenue | - | - | - | - | - | - | - | - | 68.03% | 156.07% | -5.71% | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -840 | 0 | 0 | 0 | 0 | 0 | -5.63M | 0 | 4.86M | -4.8M | 0 | 3.45M | -3.44M |
| Cash from Financing | 0 | 0 | 8.85M | 51.02M | 23.58M | 6.51M | 17.76M | 4.58M | 5.42M | 22.01M | 685K | 647K | 1.57M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 647K | 0 |
| Equity Issued (Net) | 0 | 0 | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 0 | 0 | 1000K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -30K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 19.22M | 0 | 0 | 0 | 196K | 117K | 45K | 685K | 0 | 541K |
| Net Change in Cash | -8.84K | 4.4M | -22.36M | 18.75M | 18K | -887K | 1.93M | -4.64M | 2.25M | 8.32M | -3.9M | 392K | -6.14M |
| Free Cash Flow | -8K | -17.04M | -19.19M | -17.27M | -13.49M | -13.01M | -10.13M | -9.38M | -8.09M | -8.9M | -4.59M | -3.7M | -4.26M |
| FCF Margin % | - | - | - | - | - | - | - | - | -3315.16% | -5143.35% | 581.98% | - | - |
| FCF Growth % | 99.95% | 11.23% | -11.13% | -28% | -3.7% | -28.46% | -7.96% | -15.97% | 9.09% | -94.03% | -23.88% | 13.2% | - |
| FCF per Share | -0.00 | -2.91 | -3.38 | -4.17 | -8.89 | -32.58 | -49.92 | -128.95 | -133.90 | -179.19 | -92.38 | -148.93 | -171.57 |
| FCF Conversion (FCF/Net Income) | 0.00x | 0.97x | 0.98x | 0.95x | 0.95x | 0.93x | 0.95x | 0.94x | 0.90x | 0.70x | 1.11x | 0.92x | 1.12x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 25K | 5K | 33K | 5K | 15K | 5K | 3K | 8K | 0 | 0 | 0 | 0 |
Liquidity and Delisting Risk
According to reported financial statements, the company exhibits a complete breakdown in cash conversion, as net losses of $9.4 million in 2024Q4 contrast with negligible operating cash outflows, suggesting that traditional accrual-based accounting metrics provide little insight into the firm's actual liquidity consumption patterns.
The lack of correlation between net income and operating cash flow suggests that non-cash adjustments and accounting revaluations are heavily distorting the bottom line. Investors should monitor this divergence, as it implies that the reported net loss is not a reliable proxy for the actual cash runway remaining for clinical operations.
Based on the provided quarterly data, the company's free cash flow trajectory remains deeply negative, with consistent outflows that underscore the absence of a self-sustaining business model as the firm continues to exhaust its capital reserves without achieving any commercial revenue milestones or operational scale.
The persistent negative FCF trajectory indicates that the company is entirely dependent on external financing to fund its ongoing R&D and regulatory efforts. This trend warrants further investigation into how much longer the current cash position can support the existing burn rate before additional dilutive measures are required.
As reported in recent filings, working capital fluctuations have become increasingly erratic, with shifts between positive and negative adjustments suggesting that the company is struggling to manage its payables and operational liquidity in the face of mounting regulatory and administrative pressures on its limited cash reserves.
The volatility in working capital changes appears to reflect the company's reactive approach to managing its limited liquidity. This instability may indicate that the firm is prioritizing short-term survival over efficient operational management, which could further complicate its ability to reach critical clinical milestones.
Financial disclosures indicate that the company's cash flow statement is heavily obscured by non-cash items and derivative warrant revaluations, which mask the true underlying cash burn rate and complicate the assessment of the firm's actual financial health and its ability to meet future obligations.
The reliance on non-cash adjustments to reconcile net income to operating cash flow suggests that the headline figures may be misleading for investors attempting to gauge the company's true liquidity position. Analysts should focus on the raw cash usage rather than the adjusted figures to understand the genuine financial risk.
Quick answers to the most common questions about buying CHEK stock.
Check-Cap Ltd. (CHEK) generated $-0.0M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Check-Cap Ltd. (CHEK) reported negative free cash flow of $0.0M in 2024, indicating capital requirements exceeded cash from operations.
Check-Cap Ltd. (CHEK) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.