Check-Cap Ltd. (CHEK): Business Model Canvas [Dec-2025 Updated]

You're looking at Check-Cap Ltd. (CHEK) right now, and honestly, it's a textbook case of a company betting the farm on a pivot. As someone who's mapped out hundreds of these transitions, what stands out is the tension between the legacy medical device-which, by the way, is forecasted to bring in $0 million in revenue in 2025 while burning about -$17 million in EBIT-and the new, dominant embodied AI focus driven by the MBody AI merger. This Business Model Canvas reflects that dual reality: one side chasing regulatory approval for a patient-friendly colon screening alternative, and the other aggressively pursuing multi-million-dollar enterprise AI deployments. If you want to see exactly how this high-stakes transformation is structured across its key partners, resources, and revenue streams, dive into the details below; it's a fascinating map of near-term risk versus massive upside potential.

Check-Cap Ltd. (CHEK) - Canvas Business Model: Key Partnerships

You're looking at the partnerships that define Check-Cap Ltd. (CHEK) as it transitions into the combined entity, MBody AI Ltd. The structure of these alliances is critical, especially given the recent reverse merger, which fundamentally shifts the business focus toward embodied AI while retaining the legacy medical assets.

The most significant partnership is the merger itself, which is now approved by shareholders. This isn't just a collaboration; it's a complete structural change. Current MBody AI equityholders will own 90% of the issued and outstanding ordinary shares of the combined company on a fully diluted basis, with former Check-Cap equityholders retaining 10%. This transaction, agreed upon on September 12, 2025, saw 98.01% of Check-Cap votes cast in favor of the deal, signaling strong alignment on the new strategic direction.

The legacy business, centered on the C-Scan system, still relies on a network of clinical partners, though the most recent specific data points are historical, reflecting the path to this new structure. The company previously secured Investigational Device Exemption (IDE) approval from the FDA in March 2021 to begin a pivotal U.S. study, intending to start in late 2021 or Q1 2022. This required engaging clinical sites, which form the basis of the gastroenterology center partnerships for validation.

Here's a look at the key entities involved in the current and historical operational structure:

• MBody AI Corp.: Primary merger partner, now driving the core business focus on embodied AI for the autonomous workforce.
• Ghost Kitchen Franchise Partners: Synergy expected with Check-Cap's existing Ghost Kitchen franchise rights in New Jersey.
• Clinical Research Organizations (CROs): Essential for legacy C-Scan system trials, such as the EU post-approval study initiated in March 2018.
• Hardware Manufacturers: Necessary for the integration of the autonomous workforce systems developed by the MBody AI side.
• Gastroenterology Centers: Required for validation and future rollout of the C-Scan technology, which uses an ultra-low dose X-ray capsule for colorectal cancer screening.

The financial health Check-Cap Ltd. carried into this merger highlights the necessity of the MBody AI partnership. As of September 15, 2025, the company reported total assets of $377,000 against total liabilities of $1,827,000, resulting in a working capital deficit of -$1,546,000. The enterprise value was noted at $-11.8M. The market reacted strongly to the merger news on September 15, 2025, with the stock soaring 360% in premarket trading.

The terms of the merger agreement also established financial obligations between the parties, which are critical partnership contingencies. If the Merger Agreement is terminated due to Check-Cap shareholders failing to approve the deal at the Annual General Meeting on October 17, 2025, Check-Cap agreed to reimburse MBody AI up to ILS 8.314 million in expenses. A separate termination fee of ILS 4.989 million is payable under specific conditions.

The legacy C-Scan system, which is intended for candidates at average-risk for Colorectal Cancer (CRC) who decline colonoscopy, is a key asset retained by the new entity. The P/E ratio for Check-Cap Ltd. as of December 1, 2025 (TTM) stood at -0.428, indicating negative earnings prior to the merger's full integration. Furthermore, the short interest ratio (days to cover) was 1.42, with short interest having decreased by 12.93% versus the previous month, suggesting some improving sentiment ahead of the final closing.

The following table summarizes the ownership structure post-merger, which is the ultimate partnership agreement defining the future resource allocation:

The successful shareholder vote on November 17, 2025, also approved a reverse share split within a ratio range of 1-for-14 to 1-for-100, which passed with 97.64% of votes in favor. This action is a necessary step to meet Nasdaq compliance requirements, a key objective of the partnership.

Check-Cap Ltd. (CHEK) - Canvas Business Model: Key Activities

You're looking at the core actions MBody AI Ltd. (formerly Check-Cap Ltd.) is focused on right now, post-merger. It's a pivot from a medical device company to an embodied AI infrastructure provider, and the key activities reflect that shift, though legacy R&D continues.

Developing and optimizing the proprietary MBody AI Orchestrator platform

The primary activity centers on scaling the MBody AI Orchestrator platform. This platform is described as the 'brains of autonomy,' a proprietary AI stack designed for real-time learning, adaptation, and optimization across intelligent systems. The activity involves ensuring this platform remains hardware-agnostic, allowing it to coordinate robotic and intelligent devices from any manufacturer.

The operational impact of this activity is quantified by reported customer results:

• Reported labor reduction of up to 40 percent.
• Reported uptime improvement of up to 80 percent.
• The platform is being scaled across global enterprise deployments, including Fortune 500 enterprises and blue-chip brands.

Securing multi-year, multi-million-dollar enterprise AI deployments

A critical activity is converting platform capability into recognized revenue through large contracts. MBody AI has been actively securing these deals, which are the lifeblood of the new entity's revenue stream.

Key figures related to this activity include:

This sales momentum is driving rapid global adoption, establishing MBody AI as a market leader in embodied artificial intelligence.

Ongoing research and development (R&D) for the C-Scan medical device

Check-Cap Ltd.'s legacy R&D for the C-Scan capsule-based screening technology continues as part of the combined entity's activities. C-Scan is designed as a non-invasive, preparation-free test utilizing ultra-low-dose X-rays to detect polyps. While specific 2025 R&D expenditure figures are not available, the commitment to this legacy business is part of the post-merger structure.

The C-Scan technology targets a significant potential market opportunity:

• Potential Market Opportunity in the United States (for age 45-74, screened every 10 years at an estimated $1K cost): $12B.
• Potential Market Opportunity in Europe: $28B.
• Potential Market Opportunity in China: $54B.

Managing the reverse merger and corporate transition to MBody AI Ltd.

The core activity in late 2025 involved finalizing the reverse merger, which was approved by Check-Cap shareholders with 98.01% of votes in favor. This transition fundamentally changed the company's focus and structure.

Financial and structural metrics of the transition:

• Merger Agreement Date: September 12, 2025.
• Post-Merger Ownership Split: Current MBody AI equityholders own 90%; Check-Cap equityholders retain 10%.
• New Entity Name: MBody AI Ltd..
• Ticker Symbol Change: From CHEK to MBAI, effective December 2, 2025.
• Check-Cap's Pre-Merger Market Capitalization: Approximately $9.71 million or $4.39 million.
• Check-Cap's Historical Financial Stress Indicator (EBITDA TTM): -$9.3 million.
• Check-Cap's Forecasted Annual EBIT for 2025-12-31: -17MM.
• Nasdaq Compliance Issue: Stockholders' equity below the minimum requirement of $2,500,000.

The combined entity's market capitalization as of December 1, 2025, was just under $11 million.

Obtaining private placement financing to support the combined entity

A stated activity was to use commercially reasonable efforts to secure a private placement financing following the merger agreement. This financing is intended to support the growth strategy of the combined MBody AI Ltd. entity.

The status of this financing as of late 2025 is that the companies agreed to pursue it, but no specific dollar amount raised by the combined entity in a post-merger private placement is reported in the available data. However, investor interest in the new structure was high, with engagement described as surging into hundreds of millions of dollars.

The company's liquidity position, which this financing aims to address, is reflected in the pre-merger current ratio of 0.15.

Check-Cap Ltd. (CHEK) - Canvas Business Model: Key Resources

Proprietary embodied Artificial Intelligence (AI) stack and algorithms

The combined entity, MBody AI Ltd., will operate in the embodied-AI market, which Morgan Stanley forecasts to reach $40 Trillion by 2050. MBody AI specializes in developing proprietary AI technology for intelligent systems, with investor inquiries reaching hundreds of millions of dollars.

Check-Cap's legacy portfolio of patents and proprietary medical technology

Check-Cap Ltd. has more than 50 granted patents worldwide covering key strategic aspects of its deep tech foundations.

External detector array and ingestible X-ray capsule technology (C-Scan)

A patent covering C-Scan's proprietary tracking technology, titled 'Position Estimation of Imaging Capsule in Gastrointestinal Tract,' will expire in May 2034, subject to maintenance and renewal.

Experienced AI and robotics engineering teams from MBody AI

The merger integrates MBody AI, which develops artificial intelligence systems for autonomous operations.

Cash reserves and working capital, which was shrinking at $1.54 million pre-merger

Prior to the merger, Check-Cap Ltd.'s working capital was reported at a negative $1,546,000. Total liabilities stood at $1,827,000 against total assets of $377,000. The company was also noted to have a Nasdaq compliance issue regarding minimum stockholders' equity to address by October 20, 2025.

Here's the quick math on the financial state preceding the merger vote:

The transaction structure itself reallocates ownership significantly:

• MBody AI shareholders will own 90% of the combined company.
• Check-Cap shareholders will retain 10% on a fully diluted basis.
• Authorized ordinary shares for Check-Cap remained at 18,000,000 with nominal value NIS 48.0 prior to closing conditions.

Check-Cap Ltd. (CHEK) - Canvas Business Model: Value Propositions

For AI Customers: Hardware-agnostic embodied AI platform for autonomous workforce coordination

The combined entity, operating under the MBody AI name and ticker symbol MBAI effective December 2, 2025, positions its Orchestrator platform as the value driver for enterprise clients.

• Organizations using the platform report up to 40 percent labor reduction.
• Reported uptime improvement stands at 80 percent in customer environments.
• MBody AI shareholders will own 90% of the combined company post-merger.
• Former Check-Cap equityholders retain 10% ownership on a fully diluted basis.
• Investor interest supporting the growth strategy has totaled 'hundreds of millions' of dollars.

For Medical Customers: Preparation-free, non-invasive screening for colorectal cancer (C-Scan)

The C-Scan system offers a patient-centric approach to colorectal cancer screening, leveraging an ultra-low-dose X-ray capsule.

The value proposition is quantified by direct patient feedback and clinical performance metrics:

For Medical Customers: Patient-friendly alternative to traditional colonoscopy, improving compliance

The preparation-free nature directly addresses barriers to screening adherence. The company's stockholders' equity, based on unaudited statements for the six months ended June 30, 2025, significantly exceeds $2.5 million.

• C-Scan is non-invasive and requires no sedation or unpleasant bowel preparation.
• The system uses natural motility to propel the capsule through the gastrointestinal tract.

Check-Cap Ltd. (CHEK) - Canvas Business Model: Customer Relationships

You're looking at the customer relationships for Check-Cap Ltd. (CHEK) right now, and honestly, it's less about the legacy medical device and more about the incoming embodied AI business from MBody AI. The relationship structure is bifurcated: one path is for established, large-scale enterprise AI clients, and the other is the winding-down, long-term commitment to the clinical trial investigators for the C-Scan technology.

Dedicated enterprise sales and support for large-scale AI deployments

The customer base for the future entity, which will operate as MBody AI Ltd. post-merger, is enterprise-focused. These aren't individual patients; these are large organizations looking for operational efficiency via the MBody AI Orchestrator platform. This platform is hardware-agnostic, meaning it integrates with diverse robotic and intelligent devices across sectors like hospitality, logistics, retail, and data centers. The sales effort is clearly targeting major players, as evidenced by deployments already underway at Fortune 500 clients.

The value proposition being sold directly impacts customer operations, which is why the reported metrics are so compelling. If you're selling infrastructure that promises tangible returns, your relationship management has to be top-tier. Here's a quick look at the claimed performance metrics driving these enterprise relationships:

The relationship here is clearly one of a critical service provider, not a vendor. They are selling integration backbone services, so the support structure must be dedicated and deeply embedded to maintain the reported uptime improvements. If onboarding takes 14+ days, churn risk rises, especially when you're promising immediate ROI.

Co-development and strategic collaboration with initial AI clients

While the search results don't detail specific co-development agreements, the nature of deploying an AI orchestration layer across complex environments like factories or hospitals implies a high degree of strategic collaboration, especially with initial clients. You don't just plug in a system that coordinates robotics and sensors without deep partnership. The fact that the platform is hardware-agnostic suggests that initial clients might be key partners in testing and validating integration across varied hardware ecosystems. The relationship is built on customizing the unified intelligent network to specific operational needs.

The success of the MBody AI platform hinges on proving scalability and reliability across different physical environments. This means the initial client cohort acts as a de facto extension of the development team, helping to refine the self-learning network. The relationship is cemented by the promise of turning their physical spaces into fully intelligent, self-optimizing environments.

Long-term engagement with clinical investigators for medical device R&D

For the legacy C-Scan technology, the customer relationship shifts entirely to clinical partners and investigators. As of late 2025, the financial reality shows a projected annual revenue of $0 million and a forecasted annual EBIT loss of -$17 million, meaning commercial customer acquisition is not the focus. The relationship is now purely about R&D continuity and fulfilling the merger's strategic pivot.

The engagement is focused on the U.S. pivotal trial for the preparation-free screening test. You need to keep these key medical partners engaged to maintain the asset's value, even if the focus shifts. Key elements of this relationship include:

• Initiation of the U.S. pivotal trial at Mayo Clinic in Rochester, Minnesota.
• Engagement with expert gastroenterologists like Dr. Elizabeth Rajan, the principal investigator at the Mayo Clinic site.
• The ongoing need to advance participation of additional experienced clinical trial centers.
• The historical goal of reaching patients deterred by colonoscopy due to invasiveness and bowel cleansing requirements.

This relationship is maintained through scientific collaboration and fulfilling the terms of the trial protocol, not through sales commissions. It's a commitment to the science that underpins the original company.

Investor relations focused on communicating the transformational merger strategy

The most active customer relationship for Check-Cap Ltd. in late 2025 is undeniably with its shareholders and the broader capital markets. The primary focus of investor relations has been communicating the definitive agreement to be acquired by MBody AI via a reverse merger, announced in September 2025. This communication was critical for maintaining market confidence and achieving deal closure. The results of this communication effort were dramatic:

• Share price increased by more than 300% following the merger announcement.
• Trading volumes reached the hundreds of millions of dollars in the immediate aftermath.
• Dozens of leading investors and investment banks expressed immediate interest in the combined company's growth strategy.
• Check-Cap shareholders approved merger-related proposals with over 98% of votes cast by November 14, 2025.
• The post-closing ownership structure allocates 90% to MBody AI principals and 10% to current Check-Cap shareholders.

The relationship management here involved navigating Nasdaq compliance issues, as the company reported its stockholders' equity significantly exceeded the minimum of $2.5 million as of June 30, 2025, which helped regain compliance with Listing Rule 5550(b)(1). The Board is actively evaluating potential financing opportunities, which is a direct result of this strong inbound interest from the investment community. Finance: draft 13-week cash view by Friday.

Check-Cap Ltd. (CHEK) - Canvas Business Model: Channels

You're looking at the channels for Check-Cap Ltd., which, as of late 2025, has completed its transformational merger and now operates under the name MBody AI, trading on Nasdaq under the ticker MBAI. This shift from a clinical-stage medical device company to an embodied AI focus significantly redefines how they reach customers and secure capital.

The channels reflect this pivot, moving from a pure medical device sales approach to one emphasizing enterprise AI solutions and leveraging the public market for funding following the shareholder approval of the merger, which reached 98% in November 2025.

Direct enterprise sales teams targeting Fortune 500 companies for AI solutions

This channel is now central, supporting the expansion of the MBody AI Orchestrator platform across enterprises. While specific sales team metrics aren't public, the financial context suggests a pre-revenue or early-stage commercialization phase for this new focus, with the forecasted annual revenue for the entity on 2025-12-31 standing at 0MM. The company's market capitalization as of early December 2025 was reported around $9.7m or 11.30M, indicating a relatively small enterprise footprint being built.

Strategic partnerships with robot and sensor manufacturers for platform integration

The expansion of the MBody AI Orchestrator platform implies reliance on integration partnerships, though specific partner names or deal volumes aren't detailed in the latest reports. This is the mechanism to scale the AI offering beyond direct sales efforts.

Academic and clinical collaborations for C-Scan system validation and publication

While the focus has shifted, the legacy C-Scan technology's validation history informs the rigor expected in new AI validation. A peer-reviewed article in 2021 highlighted safety and patient satisfaction data from a study involving 40 patients, showing an average satisfaction score of 4.1 out of 5, significantly higher than the 2.8 score for traditional colonoscopy (p=0.001). An earlier U.S. pilot study included 28 evaluable patients.

Nasdaq stock exchange for public equity financing (under the new MBAI ticker)

This channel is critical for capital formation following the corporate transition. The stock trades on Nasdaq under the ticker MBAI, effective December 1, 2025. As of December 5, 2025, the stock price was 1.6630, having moved within a 52-week range of 0.5600 to 3.1300. The forecasted annual EBIT for the entity on 2025-12-31 is -17MM, with a forecasted EPS of -3.53 per share.

Here's a quick look at the scale and activity across these channels as of late 2025:

The company's reliance on the public exchange for capital is clear, given the negative earnings metrics. You should note the following operational aspects related to these channels:

• The transition to the embodied AI focus is supported by a definitive merger agreement finalized in September 2025.
• The C-Scan system was designed for individuals declining or poor candidates for colonoscopy.
• The stock experienced a 1-year price increase of 99.98% as of the last reported trading day.
• The company has never paid dividends and has no current plans to do so.

Finance: draft 13-week cash view by Friday.

Check-Cap Ltd. (CHEK) - Canvas Business Model: Customer Segments

You're looking at the customer segments for Check-Cap Ltd. as the company pivots following the merger completion with MBody AI.

The legacy medical device segment, centered on the C-Scan technology, targets patients and providers, but the immediate focus is on the new embodied AI enterprise market.

Here's a quick look at the financial context surrounding the transition, using the latest available figures:

The new primary customer base is the enterprise sector, where MBody AI claims significant operational impact metrics:

• Reported labor reduction from deployments: up to 40%
• Reported uptime improvement in customer environments: 80%
• Investor interest reported for growth plans: hundreds of millions of dollars

The legacy segment's customer base is defined by specific needs in colorectal screening:

• Healthcare providers and gastroenterology centers using C-Scan technology.
• Patients who are non-compliant with traditional colonoscopy screening.

The investor segment is characterized by their focus on the potential scale of the new market:

• Anticipated size of the embodied AI market by 2050: $40 trillion
• Shareholder vote for the merger: 98% approval received on November 17, 2025

The new entity, MBody AI Ltd., will see Check-Cap Ltd. shareholders retain only a 10% ownership stake on a fully diluted basis, with MBody AI shareholders holding 90%.

Check-Cap Ltd. (CHEK) - Canvas Business Model: Cost Structure

You're looking at the cost side of Check-Cap Ltd.'s structure as it pivots, which means you're seeing a mix of legacy medical device expenses and the new, high-cost AI build-out. Honestly, the legacy business has been a significant drain, which is why the MBody AI merger was necessary.

The primary cost drivers for the legacy C-Scan system and its associated development are substantial. You see this reflected in the operating losses. For the fiscal year 2023, the company reported an Earnings Before Tax (EBT) of approximately -$17.6 million. This aligns closely with the expected scale of the legacy business's annual burn rate you mentioned.

The operational intensity is clear when you look at cash usage. The operational cash flow for 2023 was negative at -$16.9 million. More recently, for the twelve months leading up to the September 2025 merger announcement, the company reported a negative EBITDA of $9.3 million. This ongoing negative cash flow requires constant financing to sustain the research and clinical trial pipeline.

Key cost components for the legacy C-Scan system and clinical trials include:

• Significant R&D expenses to support the ingestible imaging capsule technology.
• Costs related to ongoing clinical trials and regulatory submissions.
• Salaries and overhead for the existing medical technology team.

The transition to an embodied AI focus under the MBody AI umbrella introduces a new, high-fixed-cost category. While exact figures for the combined entity aren't fully public yet, the structure implies heavy investment here:

Costs associated with maintaining public company status on Nasdaq are a fixed overhead. Check-Cap Ltd. faced specific compliance pressures that required immediate capital allocation. The minimum stockholders' equity requirement under Nasdaq Listing Rule 5550(b)(1) was $2.5 million. The company regained compliance with the minimum bid price requirement (closing at $1.00 or greater for ten consecutive trading days) on September 29, 2025, which involved monitoring and potentially market support activities.

The MBody AI transaction itself carried specific financial obligations and potential fees, which are part of the cost structure surrounding the strategic pivot:

• Reimbursement to MBody AI if Check-Cap shareholders failed to approve the merger: up to ILS 8.314 million.
• Nonrefundable termination fee payable to MBody AI under specific conditions: ILS 4.989 million.
• The dilution of existing Check-Cap shareholders to 10% ownership in the combined entity represents a significant cost in terms of control and future equity value capture.

Finance: draft 13-week cash view by Friday.

Check-Cap Ltd. (CHEK) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of the Check-Cap Ltd. (CHEK) business model as of late 2025, which is heavily influenced by the pending merger with MBody AI. Honestly, the picture is split between the legacy medical device business and the new AI focus.

For the core, legacy Check-Cap business-the one focused on the C-Scan ingestible capsule-the expectation for 2025 is quite clear. The forecasted annual revenue for the legacy Check-Cap business in 2025-12-31 is $0 million (0MM). This suggests that, as of this point in 2025, the C-Scan system has not yet generated commercial revenue, which makes sense given its clinical-stage status and the focus shifting to the merger.

The primary, near-term revenue driver is now tied to the MBody AI platform. We're seeing reports of multi-year, multi-million-dollar contracts being announced for AI platform licensing and deployment. This is the new engine. To be fair, while specific contract values aren't itemized in the public filings I see, the investor interest surrounding this pivot is massive; inquiries have reportedly reached hundreds of millions of dollars. This signals a significant potential for future capital infusion, which is a key component of funding operations right now, effectively acting as a pre-revenue funding stream.

The C-Scan system itself, the ingestible imaging capsule for colorectal cancer screening, represents potential future revenue, but it's contingent. The revenue stream here is entirely dependent on achieving the necessary regulatory approvals to move from clinical-stage development to commercial sales or licensing agreements. As of now, there are no concrete 2025 revenue figures tied to this specific product line.

Then there's the interesting, non-core side hustle: Ghost Kitchen franchise operations. Check-Cap entered into an Asset Purchase Agreement to acquire rights to a contract granting exclusive Ghost Kitchen franchise rights in New Jersey. The revenue structure here is defined: Check-Cap receives 50% of all initial franchise fees and 50% of ongoing royalties paid by New Jersey franchisees. While the global ghost kitchen industry is estimated to hit $78.45-$88.42 billion in revenue for 2025, Check-Cap's specific revenue from this stream is based only on the fee/royalty split in one state, and the actual dollar amount for 2025 isn't publically disclosed yet.

To give you a quick snapshot of the financial context surrounding these revenue expectations and funding activities, here's the math on what we do know for 2025 projections:

The company's financial health also points to the need for external funding, as it received a Nasdaq deficiency letter for not maintaining a minimum of $2,500,000 in stockholders' equity. This underscores the importance of the MBody AI merger closing and any subsequent private placements or offerings to shore up the balance sheet. The C-Scan technology itself remains a key asset, but its revenue realization is deferred.

Here are the key activities that feed into or are funded by these revenue/financing streams:

• Securing multi-year, multi-million-dollar contracts for the AI platform.
• Shareholder approval for the transformational merger with MBody AI, which is a major step in realizing the new revenue model.
• Actively evaluating potential investments to fortify the combined company's balance sheet.
• Generating revenue via the 50% royalty share from New Jersey Ghost Kitchen operations.

Finance: draft 13-week cash view by Friday.