Echo Therapeutics, Inc. Announces 2012 Financial Results

           Echo Therapeutics, Inc. Announces 2012 Financial Results

PR Newswire

PHILADELPHIA, March 18, 2013

PHILADELPHIA, March 18, 2013 /PRNewswire/ --Echo Therapeutics, Inc. (Nasdaq:
ECTE), a company developing its needle-free Symphony^® CGM System as a
non-invasive, wireless, transdermal continuous glucose monitoring system,
today announced financial results for the year ended December 31, 2012.
Echo's Annual Report on Form 10-K, as filed with the SEC, will be available by
visiting the Investors section of Echo's website at www.echotx.com.

(Logo: http://photos.prnewswire.com/prnh/20120801/NE50071LOGO )

Recent Corporate Highlights:

  oEcho was granted International Standards Organization (ISO) 13485:2003
    certification of its quality system. ISO 13485:2003 is an internationally
    recognized standard that prescribes consistent processes for the
    development, design and manufacturing of medical devices and represents an
    important step toward attaining CE Mark approval and marketing Symphony in
    the European Union.
  oEcho added key marketing, regulatory and manufacturing executives to its
    management team as part of the company's plan to finalize the development
    and commercialization of Symphony and other products contemplated in its
    growth strategy.
  oEcho completed a $3.5 million public offering in December 2012 and a
    nearly $11.8 million public offering in February 2013. Echo also
    voluntarily prepaid the $3 million outstanding balance under its $20
    million credit facility with Platinum-Montaur Life Sciences, LLC.
  oEcho participated in various major medical conferences and symposia. In
    2012, Echo presented data in oral presentations at the American Diabetes
    Association (ADA) Scientific Sessions and at the Annual Diabetes
    Technology Meeting. In January of this year, Echo presented data during a
    poster presentation at the Society of Critical Care Medicine's (SCCM)
    Critical Care Congress. In February, Echo exhibited at the International
    Conference on Advanced Technology & Treatments for Diabetes (ATTD).
  oIn 2012, Echo successfully completed two clinical trials of Symphony in
    critically ill patients that showed that Symphony consistently and
    effectively monitors patient glucose levels and has the potential to be an
    important tool for the tracking and trending of glucose in the hospital
    setting.
  oEcho received multiple patents that provide its products with long-term
    market protection. Echo currently holds 8 U.S. patents and at least 70
    foreign patents, and has at least 25 patent applications pending in the
    U.S. and foreign countries.

"As anticipated, much of 2012 was focused on the aggressive product
development and testing of the Symphony CGM System as exemplified by what we
believe are favorable clinical trial results and the addition of experienced
senior marketing, regulatory and manufacturing management team members,"
commented Patrick T. Mooney, M.D., Chairman and Chief Executive Officer of
Echo Therapeutics. "Additionally, we raised significant capital through a
series of public offerings. With a strengthened balance sheet, simplified
capital structure, and experienced management team, Echo is focused on the
continued, accelerated pace of product finalization and clinical validation
necessary for regulatory clearance of Symphony in both Europe and the U.S."

Fiscal Year 2012 Financial Results

For fiscal year 2012, the Company was principally involved with the product
development and clinical studies of its Symphony CGM System. Echo's net loss
for fiscal year 2012 was $12.3 million, or ($0.31) per share, compared to
$16.7 million, or ($0.49) per share during 2011. The operating loss for the
year ended December 31, 2012 was $15.0 million compared to $8.3 million for
the year ended December 31, 2011. Research and development expenses were $8.7
million for the year ended December 31, 2012 compared to $3.8 million for the
year ended December 31, 2011. The increase in research and development
expenses was primarily related to increased development, regulatory and
clinical expenses, as well as manufacturing preparation costs. General and
administrative expenses were $6.4 million during 2012 compared to $4.9 million
in 2011. The increase in general and administrative expenses was primarily
due to increased personnel costs, legal costs, and expenses related to the
addition of our corporate office. Echo reported a cash balance of
approximately $3.7 million as of December 31, 2012.

Conference Call


Management will host a conference call today starting at 9:00 AM EDT. To
listen and/or participate in the call, please dial (877) 317-6789 and
reference conference number 10026357. The archived audiocast will be
available for fourteen days following the call by visiting the Events section
of Echo's website at www.echotx.com.

About Echo Therapeutics


Echo Therapeutics is developing the Symphony CGM System as a non-invasive,
wireless, transdermal continuous glucose monitoring system. Our target is
patients who could benefit from glucose monitoring in the hospital setting,
including critical care. Significant opportunity also exists for patients
with diabetes to use Symphony in the outpatient setting. Echo is also
developing its needle-free skin preparation component of Symphony, the
Prelude^® SkinPrep System, as a platform technology to enhance drug 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 ongoing
studies, including the safety and efficacy of Echo's Symphony CGM System, the
failure of future development and preliminary marketing efforts related to
Echo's Symphony CGM 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 CGM 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 CGM 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,
2011, 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:
Christine H. Olimpio
Director, Investor Relations and Corporate Communications
(215)
717-4104

Connect With Us:
- Visit our website at www.echotx.com
- Follow us on Twitter at www.twitter.com/echotx
- Join us on Facebook at www.facebook.com/echotx



Echo Therapeutics, Inc



Condensed Consolidated Balance Sheets


                                 December 31,         December 31,

                                 2012                 2011
ASSETS
Current Assets:
Cash and cash equivalents        $   3,747,210     $   8,995,571
Other current assets             1,451,093            567,940
Total current assets             5,198,303            9,563,511
Net property and equipment
(including assets under          1,638,395            317,731
capitalized leases)
Other Assets:
Intangible assets, net of        9,625,000            9,625,000
accumulated amortization
Deferred financing costs         3,549,328            -
Restricted cash, deposits and    10,566               20,565
other assets
Total other assets               13,184,894           9,645,565
Total assets                     $  20,021,592      $  19,526,807
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities:
Accounts payable                 $   2,319,219     $     365,298
Deferred revenue                 90,228               123,708
Derivative warrant liability     5,585,141            1,035,337
Accrued expenses and other       1,583,975            968,120
liabilities
Total current liabilities        9,578,563            2,492,463
Deferred revenue, note payable
and capital lease obligation,    212,423              65,755
net of discount and current
portion
Total liabilities                9,790,986            2,558,218
Commitments
Stockholders' Equity:
Convertible preferred stock,     30,160               30,160
Series C & D
Common stock                     443,737              385,442
Additional paid-in capital       103,658,724          98,116,327
Common stock subscribed for but  -                    6,667
not paid for or issued
Accumulated deficit              (93,902,015)         (81,570,007)
Total stockholders' equity       10,230,606           16,968,589
Total liabilities and            $  20,021,592      $  19,526,807
stockholders' equity
Condensed Consolidated Statements of Operations
                                 Years Ended December 31,
                                 2012                 2011
Licensing revenue                $       5,119  $     302,059
Other revenue                    -                    145,152
Total revenues                   5,119                447,211
Operating Expenses:
Research and development         8,670,710            3,796,127
Selling, general and             6,374,429            4,905,757
administrative
Total operating expenses         15,045,139           8,701,884
Loss from operations             (15,040,020)         (8,254,673)
Other Income (Expense):
Interest income (expense), net   (499,392)            (9,118)
Debt financing costs             (455,000)            -
Gain (loss) on extinguishment of -                    (1,514)
debt
Gain (loss) on disposals of      (21,272)             (1,348)
assets
Gain (loss) on revaluation of    3,683,676            (1,762,938)
derivative warrant liability
Other income (expense), net      2,708,012            (1,774,918)
Net loss                         (12,332,008)         (10,029,591)
Accretion of dividends on Series
B Convertible Perpetual          -                    (157,733)
Redeemable Preferred Stock
Deemed dividend on beneficial
conversion feature of Series D   -                    (1,975,211)
Convertible Preferred Stock
Deemed dividend on repricing of  -                    (4,559,761)
warrants
Net loss applicable to common    $ (12,332,008)       $  (16,722,296)
shareholders
Net loss per common share, basic $              $         (0.49)
and diluted                      (0.31)
Basic and diluted weighted
average common shares            39,550,464           34,174,895
outstanding



SOURCE Echo Therapeutics, Inc.

Website: http://www.echotx.com
 
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