Wilmington, DE and Ashdod, Israel, April 14, 2020 (GLOBE NEWSWIRE) -- Integrity Applications, Inc. (www.integrity-app.com) (OTCQB: IGAP), innovator of GlucoTrack®, a non-invasive device for measuring glucose levels in people with Type 2 diabetes and prediabetes, issued a letter to its shareholders providing an update on its business.
Dear Fellow Shareholders,
We are writing this letter to provide an update on our business and hope it finds you and your families safe and healthy.
We are cautious with our outlook in light of this unprecedented situation, as global implications are still too uncertain to even speculate at this time. However, we are confident in our technology and the market need for our solution, so we continue to move ahead with all strategic initiatives and anticipate limited long-term impact from the coronavirus.
We are pleased to report a year full of accomplishments and growth. During the last 12 months, the Company refocused its business strategy, reduced costs and cash burn rate while increasing operating efficiency and pushing forward with our R&D and clinical programs.
The diabetes market is currently undergoing a major change in priorities. The market understands that the current technology that simply provides a glucose measurement for people suffering with diabetes and prediabetes, is no longer adequate. To effectively manage their disease, a patient ideally needs a cutting edge, user-friendly measurement device that is paired with an equally innovative data platform that can provide useful and easy to understand actionable insights. We see other companies in the market thrive by providing the data platform side of the equation and others by providing innovative measurement devices. However, these companies and their solutions primarily focus on patients suffering from Type 1 diabetes. Integrity, on the other hand, is seeking to provide the preeminent solution for patients with Type 2 diabetes and prediabetes, which represents a significantly larger market than that of Type 1 diabetes.
We are currently developing our own companion applications and cloud-based solution to provide real time, data driven personalized tools to effectively help patients manage their diabetes. While doing so, we will be collecting large amounts of data on patients using GlucoTrack, including their compliance with testing, frequency of testing and other related behavioral trends. We believe that third parties such as insurers, pharmaceutical companies and advertisers would be willing to pay for the de-identified data that we will obtain through our platform, and that this is an opportunity for us to develop an additional revenue source.
We are encouraged by the recent attention received from large, well established companies from varying industries, including pharmaceutical, medical device, electronics and healthcare analytics. We are optimistic that there will be continued interest as the market comes to understand the unique, innovative and revolutionary solution that GlucoTrack offers.
Following our recent capital raise of $15 million in February 2020, the Company is in the best financial position it has ever been since its founding. We continue to strengthen our balance sheet by negotiating legacy payables with deep discounts and extinguishing related liabilities.
Each member of the Board of Directors has volunteered to take all 2019 board fees in shares of the Company’s common stock in lieu of cash. In addition, board members, both current and past, have agreed to voluntary lockup provisions that place restrictions on their ability to sell their shares of the Company. These steps reflect a commitment to building long-term shareholder value.
We continue to invest resources on our intellectual property to protect our existing patents and trademarks, and anticipate additional patents for the existing technology as well as future products in development.
From a commercial standpoint, we continue to support the ongoing efforts in the Netherlands where we are seeing significant progress in our goal of achieving insurance reimbursement. We continue to work with local Key Opinion Leaders and building marketing campaigns to coincide with the expected near-term commercial launch of GlucoTrack in the region.
Now that the Company is in a solid financial position, we have restarted our planning for U.S. trials to seek FDA approval for GlucoTrack. While it is too early to predict or outline timeframes, the Company is committed to moving this process forward as expeditiously as possible.
We are excited about our future and believe that the next 12-18 months will be a very productive time for the Company. We look forward to advancing our technology platform, advancing our R&D and clinical programs, as well as executing on our commercial strategy. With the steps we are taking, we believe the Company will be in position to become a market leader in the management of Type 2 diabetes and prediabetes.
We thank you for your continued support.
David Malka
President
About GlucoTrack®
GlucoTrack® is a truly non-invasive monitoring device that rapidly measures and displays an individual’s glucose level in about a minute without finger pricking or any pain. GlucoTrack® features an ear clip with sensors that clips to the earlobe and measures the user’s glucose level using innovative and patented sensor technologies. The measured signals are analyzed using a proprietary algorithm and then a calculated glucose level is displayed on a small handheld device the size of a small mobile phone. The glucose results are stored in the device and used to estimate HbA1c level using a proprietary algorithm. The device can also display glucose values graphically, enabling the user to monitor glucose levels over time. GlucoTrack® has received approvals for CE Mark in Europe and from the Ministry of Food and Drug Safety in South Korea for type 2 diabetes and prediabetes and is currently available in selected markets in Europe and Asia.
About Integrity Applications, Inc.
Integrity Applications, Inc. (OTCQB: IGAP) was founded in 2001 and is focused on the design, development, and commercialization of non-invasive glucose monitoring technologies for people with type 2 diabetes and prediabetes. The Company has developed GlucoTrack®, a proprietary non-invasive glucose monitoring device designed to obtain glucose level measurements in about a minute without the pain, incremental cost, difficulty, or discomfort of conventional invasive finger stick devices. Integrity Applications Inc. is a Delaware corporation, with headquarters in the United States and an R&D site in Ashdod, Israel. For more information, please visit http://www.integrity-app.com/ and http://www.glucotrack.com.
Investor Contact: investors@integrity-app.com
Media Contact: media@integrity-app.com
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as “expect”, “plan” and “will” are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect Integrity Applications’ actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Factors that may affect Integrity Applications’ results include, but are not limited to, the ability of Integrity Applications to raise additional capital to finance its operations (whether through public or private equity offerings, debt financings, strategic collaborations or otherwise); risks relating to the receipt (and timing) of regulatory approvals (including FDA approval); risks relating to enrollment of patients in, and the conduct of, clinical trials; risks relating to its current and future distribution agreements; risks relating to its ability to hire and retain qualified personnel, including sales and distribution personnel; and the additional risk factors described in Integrity Applications’ filings with the U.S. Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10-K for the year ended December 31, 2019 as filed with the SEC on April 14, 2020.