Echo Therapeutics Announces First Quarter 2013 Financial Results

       Echo Therapeutics Announces First Quarter 2013 Financial Results

PR Newswire

PHILADELPHIA, May 10, 2013

PHILADELPHIA, May 10, 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 quarter ended March 31, 2013.
Echo's Quarterly Report on Form 10-Q, 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

  oIn March, Echo 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 European CE Mark approval.
  oEcho completed a public offering of approximately $10.6 million, after
    expenses, in February. Echo also voluntarily prepaid the $3 million
    outstanding balance of its $20 million credit facility with
    Platinum-Montaur Life Sciences, LLC.
  oEcho participated in various medical and investor conferences and
    symposia. In January, Echo presented data during a poster session at the
    Society of Critical Care Medicine's (SCCM) Annual Meeting and, in
    February, Echo exhibited its Symphony CGM technology at the International
    Conference on Advanced Technologies & Treatments for Diabetes (ATTD). In
    January, management presented to prospective corporate partners and
    investors at the Noble Financial Markets' Ninth Annual Equity Conference
    and at the Biotech Showcase 2013 Conference.
  oEcho appointed Robert F. Doman to its Board of Directors in March. Mr.
    Doman brings over 30 years of executive level, international and domestic
    management, business development, sales and marketing, product development
    and strategic planning experience with specific concentrations in medical
    devices and pharmaceuticals.
  oEcho announced that the U.S. Patent and Trademark Office (USPTO) issued
    U.S. Patent 8,386,027, "Skin Permeation Device for Analyte Sensing or
    Transdermal Drug Delivery," for the skin permeation component of the
    Symphony CGM System. 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.

"Design freeze of our Symphony CGM System and the ISO 13485 certification of
our quality management system in the first quarter validated the progress we
made in 2012. We are on track to conduct our multi-center CE Mark pivotal
trial and to submit our CE Technical File in the near term," commented Patrick
T. Mooney, M.D., Chairman and Chief Executive Officer of Echo Therapeutics.
"With several important milestones still ahead, we look forward to increased
shareholder value and commercializing Symphony in Europe later this year."

First Quarter 2013 Financial Results

Echo's net loss for the first quarter of 2013 was $7.0 million, or ($0.13) per
share, compared to $3.0 million, or ($0.08) per share, for the first quarter
of 2012. Operating loss for the first quarter of 2013 was $5.5 million
compared to $3.2 million for the first quarter of 2012. Research and
development expenses were $3.2 million for the first quarter of 2013 compared
to $1.4 million in the prior year. Research and development expenses increased
primarily as a result of greater engineering and design expenses incurred with
outside contractors and personnel. General and administration expenses were
$2.3 million for the first quarter of 2013 versus $1.9 million in the prior
year. The Company reported a cash balance of approximately $5.2 million as of
March 31, 2013. 

Conference Call


Management will host a conference call today starting at 9:00 AM EDT. To
listen in and/or participate in the call, please dial (877) 317-6789 and
reference the conference number 10028680. 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 System, 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 the Symphony CGM System, 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 System. 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, 2012, 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


                                      March 31,            December 31,

                                     2013                   2012
ASSETS
Current Assets:
Cash and cash equivalents            $   5,170,251       $   3,747,210
Cash restricted pursuant to letters  657,463                407,463
of credit
Deferred financing costs, current    968,004                968,004
portion
Prepaid expenses and other current   231,171                75,626
assets
Total current assets                 7,026,889              5,198,303
Net property and equipment
(including assets under capitalized  1,678,464              1,638,395
leases)
Intangible assets, net of            9,625,000              9,625,000
accumulated amortization
Deferred financing costs, net of     3,307,327              3,549,328
current portion
Restricted cash, deposits and other  10,566                 10,566
assets
Total assets                         $  21,648,246        $  20,021,592
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable                     $   1,499,294       $   2,319,219
Deferred revenue from licensing      67,671                 90,228
arrangements
Capital lease obligations, current   2,591                  2,527
portion
Derivative warrant liability         3,904,155              5,585,141
Accrued expenses and other           1,759,537              1,581,448
liabilities
Total current liabilities            7,233,248              9,578,563
Deferred revenue, note payable and
capital lease obligation, net of     90,917                 212,423
current portion
Total liabilities                    7,324,165              9,790,986
Commitments
Stockholders' Equity:
Convertible preferred stock, Series  30,160                 30,160
C & D
Common stock                         602,449                443,737
Additional paid-in capital           114,581,812            103,658,724
Accumulated deficit                  (100,890,340)          (93,902,015)
Total stockholders' equity           14,324,081             10,230,606
Total liabilities and stockholders'  $  21,648,246        $  20,021,592
equity
Condensed Consolidated Statements of Operations
                                     Three Months Ended March 31,
                                     2013                   2012
Licensing revenue                    $      22,557     $      30,927
Total revenues                       22,557                 30,927
Operating Expenses:
Research and development             3,219,723              1,391,645
Selling, general and administrative  2,299,447              1,859,404
Total operating expenses             5,519,170              3,251,049
Loss from operations                 (5,496,613)            (3,220,122)
Other Income (Expense):
Interest income (expense), net       (3,172,698)            2,809
Gain on revaluation of derivative    1,680,986              231,543
warrant liability
Other income (expense), net          (1,491,712)            234,352
Net loss                             (6,988,325)            (2,985,770)
Net loss per common share, basic and $       (0.13)  $        
diluted                                                     (0.08)
Basic and diluted weighted average   53,734,767             38,742,976
common shares outstanding

SOURCE Echo Therapeutics, Inc.

Website: http://www.echotx.com
 
Press spacebar to pause and continue. Press esc to stop.