PHILADELPHIA, May 16, 2011 /PRNewswire/ -- Echo Therapeutics, Inc. (OTC BB: ECTE), a company developing its needle-free Symphony tCGM System as a non-invasive, wireless, transdermal continuous glucose monitoring (tCGM) system and its Prelude SkinPrep System for transdermal drug delivery, today announced results for the period ended March 31, 2011. Echo’s Quarterly Report on Form 10-Q is available through Echo’s website at www.echotx.com.
Recent Corporate Highlights:
- Echo closed a series of financings of approximately $6.4M in cash proceeds through private placements of the Company’s stock and warrants. Echo expects to use these proceeds for product development, clinical studies, working capital, and general corporate purposes.
- Echo Therapeutics’ needle-free Symphony tCGM System was featured in the cover story of Assembly Magazine’s January 2011 issue entitled “Medical Device Assembly: Diabetic Devices Drive Growth.” Another article, “New Drug Delivery Device Will Speed Up Numbing, Sans Needle,” featured on the Fast Company magazine website discussed the Prelude SkinPrep System.
- In February 2011, Echo Therapeutics’ partner, Ferndale Pharma Group, LLC, received comments from the U.S. Food and Drug Administration (FDA) on the 510(k) submission of the Prelude SkinPrep System that were deemed minor and were consistent with both companies’ expectations. Currently, the companies are working to address the FDA’s comments.
- In February 2011, Echo Therapeutics announced the appointment of William F. Grieco and James F. Smith to its Board of Directors, making the Board a majority of independent directors which is necessary to obtain a listing on a national exchange. In addition, in March 2011 Echo Therapeutics hired John Garibotto and Kenneth Gary as Vice President of Operations and Vice President of Research, Clinical and New Products, respectively.
“The culmination of significant milestones we accomplished during the first quarter, including the completion of $6.4M of financing and the appointments of John Garibotto and Ken Gary, have positioned us for a very exciting year,” commented Patrick T. Mooney, M.D., Chairman and Chief Executive Officer of Echo Therapeutics. “The significant additional capital and key hires will drive the commercial launch of Prelude and the final development of the Symphony system.”
First Quarter 2011 Financial Results
For the first quarter of 2011, Echo reported approximately $121,000 in licensing revenue compared to $14,000 revenue in the first quarter of 2010. The Company decreased operating expenses by 25% to $1.8 million compared to $2.4 million during the first quarter of 2010. This decrease included a 22% decrease in research and development and a 28% decrease in selling, general and administrative expenses. The net loss and net loss per common share for the first quarter was approximately $4.6 million, or ($0.20) per share, compared to a net loss of $1.9 million, or ($0.07) per share, in the prior year. The Company completed the quarter with cash of approximately $5 million, after the Company raised an additional $4.3 million in cash from the issuance of common stock and warrants during the quarter.
About Echo Therapeutics
Echo Therapeutics is developing the Symphony tCGM System as a non-invasive, wireless, transdermal continuous glucose monitoring system for patients with diabetes and for use in hospital critical care units. Echo is also developing its needle-free Prelude SkinPrep System as a platform technology for enhanced skin permeation for delivery of topical pharmaceuticals.
Cautionary Statement Regarding Forward Looking Statements
The statements in this press release that are not historical facts may constitute forward-looking statements that are based on current expectations and are subject to risks and uncertainties that could cause actual future results to differ materially from those expressed or implied by such statements. Those risks and uncertainties include, but are not limited to, risks related to regulatory approvals and the success of Echo’s and its partners’ ongoing studies, including the efficacy of Echo’s Symphony tCGM and Prelude SkinPrep Systems, the failure of future development and preliminary marketing efforts related to Echo’s Symphony tCGM and Prelude SkinPrep Systems, Echo’s ability to secure additional commercial partnering arrangements, risks and uncertainties relating to Echo’s and its partners’ ability to develop, market and sell diagnostic and transdermal drug delivery products based on its skin permeation platform technologies, including the Symphony tCGM and Prelude SkinPrep Systems, the availability of substantial additional equity or debt capital to support its research, development and product commercialization activities, and the success of its research, development, regulatory approval, marketing and distribution plans and strategies, including those plans and strategies related to its Symphony tCGM and Prelude SkinPrep Systems. These and other risks and uncertainties are identified and described in more detail in Echo’s filings with the Securities and Exchange Commission, including, without limitation, its annual report on Form 10-K for the year ended December 31, 2010, its quarterly reports on Form 10-Q, and its current reports on Form 8-K. Echo undertakes no obligation to publicly update or revise any forward-looking statements.
For More Information:
Patrick T. Mooney, M.D. | Media: Richard Stern | ||
Chairman and Chief Executive Officer | Stern & Co. | ||
(215) 717-4100 | (212) 888-0044 | ||
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Echo Therapeutics, Inc. Condensed Consolidated Balance Sheets | |||
As of, | |||
March 31, 2011 | December 31, 2010 | ||
ASSETS | (Unaudited) | ||
Current Assets: | |||
Cash and cash equivalents | $ 4,994,601 | $ 1,342,044 | |
Other current assets | 322,583 | 621,693 | |
Total current assets | 5,317,184 | 1,963,737 | |
Net property and equipment (including assets under capitalized leases) | 145,358 | 48,034 | |
Other Assets: | |||
Intangible assets, net of accumulated amortization | 9,625,000 | 9,625,000 | |
Restricted cash, deposits and other assets | 9,999 | 275,499 | |
Total other assets | 9,634,999 | 9,900,499 | |
Total assets | $ 15,097,541 | $ 11,912,270 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Current Liabilities: | |||
Accounts payable | $ 493,043 | $ 605,634 | |
Deferred revenue | 325,096 | 405,454 | |
Derivative warrant liability | 3,320,620 | 1,544,996 | |
Accrued expenses and other liabilities | 356,759 | 565,546 | |
Total current liabilities | 4,495,518 | 3,121,630 | |
Deferred revenue, notes payable and capital lease obligation, net of current portion | 46,708 | 88,356 | |
Total liabilities | 4,542,226 | 3,209,986 | |
Stockholders’ Equity: | |||
Perpetual redeemable preferred stock | 2 | 2 | |
Convertible preferred stock, series C & D | 35,109 | 49 | |
Common stock | 336,552 | 311,264 | |
Additional paid-in capital | 86,321,308 | 79,646,385 | |
Common stock subscribed for but not paid for or issued | 285,000 | ||
Accumulated deficit | (76,137,656) | (71,540,416) | |
Total stockholders’ equity | 10,555,315 | 8,702,284 | |
Total liabilities and stockholders’ equity | $ 15,097,541 | $ 11,912,270 | |
Echo Therapeutics, Inc. Condensed Consolidated Statements of Operation | |||
Three Months Ended March 31 | |||
2011 | 2010 | ||
Licensing revenue | $ 121,455 | $ 13,972 | |
Other revenue | 108,087 | ||
Total revenues | 229,542 | 13,972 | |
Operating Expenses: Research and development | 865,950 | 1,113,485 | |
Selling, general and administrative | 918,750 | 1,277,623 | |
Total operating expenses | 1,784,700 | 2,391,108 | |
