FRANKLIN, Mass., March 16 /PRNewswire-FirstCall/ -- Sontra Medical
Corporation (Nasdaq: SONT) announced today financial results for the fourth
quarter and fiscal year ended December 31, 2005. For the three months ended
December 31, 2005, the net loss applicable to common stockholders was
$1,187,000, or $.05 per share, as compared to $1,663,000 or $.08 per share,
for the same period in 2004. For the year ended December 31, 2005, the net
loss applicable to common stockholders was $5,743,000, or $.26 per share, as
compared to $5,774,000, or $.34 per share, in 2004. The Company ended the year
with a total of $4,017,000 in cash and short term investments. On March 7,
2006, the Company completed an equity financing that raised $1.6 million. The
Company expects that its cash on hand at December 31, 2005, combined with
proceeds from the financing completed in March 2006, will be sufficient to
fund operations through at least January 2007.
Recent Product Highlights:
Continuous Transdermal Glucose Monitoring System
* Optimizing performance of telemetry-based glucose flux biosensor and
wireless meter.
* Designed clinical protocols for hospital intensive care unit (ICU)
product; human trials to commence in April 2006.
* Developing portable, low cost 3rd Generation SonoPrep(R) skin permeation
device for diabetes home testing market.
* Achieved ISO 13485 Quality Management System certification for SonoPrep.
SonoPrep and Procedure Tray for Topical Lidocaine
* Developed low cost topical lidocaine gel for use with SonoPrep procedure
tray.
* Introduced Generation 1.75 SonoPrep skin permeation device.
* Completed 2nd Generation SonoPrep device; commercial launch scheduled
for April 2006.
Other SonoPrep Product Applications
* Formed research alliance with HortResearch for evaluating SonoPrep in
sports performance monitoring applications.
* Awarded research grant from U.S. Army for SonoPrep enabled transdermal
delivery of dengue vaccine.
"We have focused a majority of our resources on optimizing the performance
of our continuous transdermal glucose monitor for the hospital ICU market,"
stated Thomas W. Davison, PhD, Sontra's President and Chief Executive Officer.
"The first fully functional transdermal glucose monitors have been built and
are functioning as anticipated in in-house clinical tests that will lead to
extensive clinical testing in the coming months. We have designed human
clinical trials and obtained IRB approvals and expect clinical trials to
commence during the second quarter of 2006. Intensive insulin therapy and
frequent blood glucose testing to maintain tight glycemic control is one of
the most exciting new trends in critical care medicine. The enormous clinical
benefits include reducing mortality and severe complications by up to 50%.
These benefits, combined with significant cost savings that come from reduced
length of stay and less intervention, are expected to create a new market for
critical care continuous glucose monitors that we estimate will exceed $1
billion."
Conference Call Information
Sontra will host a live conference call and listen-only Webcast on
Thursday, March 16, 2006 at 11 a.m. ET to provide a business update and
discuss its fourth quarter and fiscal year 2005 financial results.
To participate in the conference call, please dial: 1-973-409-9259.
A listen-only Webcast and replay of the conference call are available at
http://www.sontra.com.
About Sontra Medical Corporation (http://www.sontra.com)
Sontra Medical Corporation is a technology leader in transdermal science.
Sontra's SonoPrep ultrasound-mediated skin permeation technology combined with
technical competencies in transdermal drug formulation, delivery systems and
biosensors is creating a new paradigm in transdermal drug delivery and
diagnosis. The SonoPrep technology is being developed for several billion
dollar market opportunities, including continuous glucose monitoring and the
transdermal delivery of large molecule drugs and vaccines. Sontra is currently
marketing the SonoPrep device and procedure tray for use with topical
lidocaine to achieve rapid (within five minutes) skin anesthesia.
Investor Relations Contact:
Sean Moran, Sontra Medical CFO
508-530-0334
SonoPrep is a registered trademark of Sontra Medical Corporation. All
other company, product or service names mentioned herein are the trademarks or
registered trademarks of their respective owners.
This press release contains forward-looking statements, which address a
variety of subjects including, for example, the expected technological
advances and availability of the second-generation SonoPrep device, the
expected benefits and efficacy of the SonoPrep device in connection with
diagnostics, vaccine delivery, glucose monitoring and transdermal drug
delivery, Sontra's expected ability to develop, market and sell products based
on its technology, including a continuous transdermal glucose monitor for the
hospital ICU market; the expected market opportunities, distribution and
market acceptance of the SonoPrep device and technology, the expected size of
the market for the continuous transdermal glucose monitor for the hospital
ICU; and Sontra's business, research, product development, regulatory
approval, marketing and distribution plans and strategies. Statements that
are not historical facts, including statements about our beliefs and
expectations, are forward-looking statements. Such statements are based on our
current expectations and are subject to a number of factors and uncertainties,
which could cause actual results to differ materially from those described in
the forward-looking statements. The following important factors and
uncertainties, among others, could cause actual results to differ materially
from those described in these forward-looking statements: our technology is
new and we may experience adverse results in research and development efforts,
product development, clinical trials, product evaluations, commercialization
efforts, product distribution and market acceptance; markets for our products
may develop slower than expected, or not at all; our sales cycle is lengthy
and we are still developing sales and marketing strategies which may or may
not prove effective; the SonoPrep device may not prove effective in connection
with diagnostics, vaccine delivery, glucose monitoring and/or transdermal drug
delivery; we may experience difficulties or delays in obtaining regulatory
approvals to market products resulting from development efforts or
difficulties or delays associated with sources of regulatory-approved
transdermal drugs and vaccines; failure to obtain and maintain patent
protection for discoveries or commercial limitations imposed by patents owned
or controlled by third parties would have an adverse effect on us; we depend
upon strategic partners and third-party distributors to develop,
commercialize, market and sell products based on our work; and we require
substantial additional funding to conduct research and development and to
expand commercialization, distribution and marketing activities. For detailed
information about factors that could cause actual results to differ materially
from those described in the forward-looking statements, please refer to
Sontra's filings with the Securities and Exchange Commission, including
Sontra's most recent Annual Report on Form 10-KSB. Forward-looking statements
represent management's current expectations and are inherently uncertain. We
do not undertake any obligation to update forward-looking statements made by
us.
SONTRA MEDICAL CORPORATION
Consolidated Statements of Loss
For the Years Ended For the Three Months Ended
December 31, December 31,
2005 2004 2005 2004
Revenue:
Product revenue $170,660 $33,565 $1,642 $18,811
Licensing revenue 5,000 - 5,000 -
Total revenue 175,660 33,565 6,642 18,811
Cost of product
revenue 251,482 16,680 5,414 10,356
Gross (loss) profit (75,822) 16,885 1,228 8,455
Operating Expenses:
Research and
development 3,794,888 3,039,450 851,067 974,665
Selling, general
and administrative 2,055,833 2,423,806 374,492 731,845
Total operating
expenses 5,850,721 5,463,256 1,225,559 1,706,510
Loss from
operations (5,926,543) (5,446,371) (1,224,331) (1,698,055)
Other income
(expense), net
Interest income 207,699 86,189 44,548 36,929
Interest expense (18,292) - (5,483) -
Other income, net 189,407 86,189 39,065 36,929
Net loss (5,737,136) (5,360,182) (1,185,266) (1,661,126)
Accretion of dividend
and beneficial
conversion feature on
Series A Convertible
Preferred Stock (5,867) (413,901) (1,478) (1,449)
Net loss applicable
to common
shareholders $(5,743,003) $(5,774,083) $(1,186,744) $(1,662,575)
Net loss per common
share, basic and
diluted $(0.26) $(0.34) $(0.05) $(0.08)
Basic and diluted
weighted average
common shares
outstanding 22,205,025 16,763,798 22,260,449 19,840,477
SONTRA MEDICAL CORPORATION
Consolidated Balance Sheets
As of December 31,
2005 2004
ASSETS
Current Assets:
Cash and cash equivalents $1,016,792 $2,565,244
Short term investments 3,000,000 6,950,000
Accounts receivable 1,129 16,821
Legal settlement receivable - 250,000
Inventory, net of reserve for obsolescence 31,250 152,642
Prepaid expenses and other current assets 65,468 69,492
Total current assets 4,114,639 10,004,199
Property and Equipment, at cost:
Computer equipment 241,324 206,970
Office and laboratory equipment 593,576 492,377
Furniture and fixtures 14,288 14,288
Manufacturing equipment 224,888 182,210
Leasehold improvements 177,768 174,698
1,251,844 1,070,543
Less-accumulated depreciation and amortization (894,658) (655,242)
Net property and equipment 357,186 415,301
Other Assets:
Restricted cash 29,248 38,997
Deposits and other assets 207,012 2,000
Total other assets 236,260 40,997
Total assets $4,708,085 $10,460,497
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $210,208 $358,530
Deferred revenue 45,000 -
Current portion of note payable 53,653 -
Accrued expenses 416,936 759,051
Total current liabilities 725,797 1,117,581
Note Payable, net of current portion 149,043 -
Commitments
Stockholders' Equity:
Series A Convertible Preferred Stock,
$0.01 par value, authorized 7,000,000 shares,
issued and outstanding 73,334 shares at
December 31, 2005 and 2004 (preference in
liquidation of $76,291) 76,291 76,291
Common stock, $0.01 par value, authorized
60,000,000 shares, issued and outstanding
22,261,830 shares at December 31, 2005 and
21,935,732 shares at December 31, 2004 222,618 219,358
Additional paid-in capital 32,658,192 32,674,740
Deferred stock-based compensation (4,159) (244,912)
Accumulated deficit (29,119,697) (23,382,561)
Total stockholders' equity 3,833,245 9,342,916
Total liabilities and stockholders'
equity $4,708,085 $10,460,497
SOURCE Sontra Medical Corporation
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Related links:
http://www.sontra.com
CONTACT:
Sean Moran, CFO of Sontra Medical,
+1-508-530-0334
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