Integrity Applications Issues Shareholder Update Letter

Wilmington, DE and Ashdod, Israel, Feb. 18, 2021 (GLOBE NEWSWIRE) -- Integrity Applications, Inc. (www.integrity-app.com) (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,

2020 was an important operational year for the Company, even in light of the widespread effects of the COVID-19 pandemic. We hope all of you have stayed healthy and safe during these difficult times. This pandemic has exposed the need for the adoption of innovative digital health technologies for chronic diseases and we believe more than ever that the GlucoTrack platform that we are building will be well suited for addressing the critical market need as it relates to those suffering with diabetes and prediabetes.

Talent development, recruiting and organizational health have been a critical focus of the Company over the last 12 months. We are thrilled to have attracted high-quality individuals to the Company, each of whom bring extensive experience in their respective fields. We have bolstered our Senior Management with the recruitment of Erez Ben-Zvi, a highly experienced MedTech development professional who joined us last year as Vice President of Product, and recently took on the additional role of General Manager, and Shalom Shushan, a seasoned executive who joined us as Chief Technology Officer. Paul V. Goode PhD, who has a decorated career developing innovative medical technologies, including at DexCom and MiniMed, joined our board of directors. Several highly talented and accomplished executives joined the Company as senior advisors to the Board. These include Yair Briman, the former CEO of Philips Healthcare Informatics, Daniel McCaffrey MBA MA, a world-renowned behavioral scientist and digital health expert currently at Samsung Health and formerly of Dexcom, and Dr. Alexander Raykhman PhD, a measurement and artificial intelligence expert. We intend to continue to invest in our talent and to expand and strengthen all areas within the company.

We continue to manage our burn rate and reduce debt that had accumulated under prior management. Together with the $15,000,000 capital raise completed in 2020, the company has entered 2021 with a strong balance sheet and cash position.

The Company has performed a top-down analysis of the current GlucoTrack model to identify areas of potential enhancement, as it relates to the platform, integrations, sensor technologies, accuracy as well as costs to manufacture. The result of this comprehensive review is an accelerated development plan for the next generation GlucoTrack, what we refer to as GT 2.0. GT 2.0 will be a completely wireless and rechargeable earclip to be paired with a smartphone, with more capabilities and features, increased accuracy, significantly greater margins for the Company and lower cost to the end-user as compared to the current model GlucoTrack. Management is executing and GT 2.0 is now under development.

As previously reported, we have made significant progress towards receiving insurance reimbursement in the Netherlands. With our new accelerated development plan for GT 2.0, with all of the expected advantages over the current GlucoTrack model, it made clear to us that introducing GT 2.0 rather than the current version will serve the diabetes market and the Company more effectively. We are currently working with our European partners on the roadmap for distribution of GT 2.0 when completed and ready to market.

In addition to the European markets, the Company is now focused on the U.S. market as well, including building out its U.S. go-to-market strategy and planning the required FDA clinical trials and field testing to support its entrance into the market. The Company is currently in the process of identifying clinical sites in the U.S., interviewing Contract Research Organizations (CRO’s), and forming its Scientific and Medical Advisory Boards. We intend to build out a team to support the U.S. activities, while continuing our technology development in our R&D facility located in Israel.

We are optimistic about the future and expect the next 12-18 months to be an exciting, event driven period for the Company and we look forward to updating you on an ongoing basis on our progress.