FRANKLIN, Mass., May 10 /PRNewswire-FirstCall/ -- Sontra Medical
Corporation (Nasdaq SC: SONT) announced today financial results for the first
quarter ended March 31, 2004. For the three months ended March 31, 2004, the
net loss applicable to common stockholders was $1,403,000, or $.11 per share,
as compared to $951,000, or $.10 per share, for the same period in 2003.
The Company's cash balance increased from $4,869,000 at December 31, 2003
to $6,273,000 at March 31, 2004. On January 15, 2004, the Company received a
$1.5 million payment from Bayer Health Care LLC's Diagnostic Division pursuant
to a license agreement executed in July 2003 for Sontra's non-invasive glucose
monitoring technology. Also during the first quarter, Sontra realized net
proceeds of $1,036,000 from the exercise of warrants to purchase common stock
issued in 2003.
First Quarter 2004 Highlights:
* In February, the FDA granted the Company the first 510(k) marketing
clearance for SonoPrep(R) for use in electrophysiology applications.
* In early March, the Company submitted a 510(k) application for a second
indication, seeking marketing clearance to use SonoPrep and its topical
lidocaine procedure tray to achieve rapid skin anesthesia. This FDA
submission was supported by data from three clinical studies involving
approximately 500 patients that demonstrates that rapid skin anesthesia
with 4% lidocaine was achieved within five minutes following a skin
pretreatment with SonoPrep.
* During the quarter, the Company received approximately $2.54 million
from a licensing payment and the exercise of warrants.
"We made solid progress during the first quarter in developing and
expanding the value of our product pipeline," stated Thomas W. Davison, PhD,
Sontra's President and Chief Executive Officer. "SonoPrep skin permeation
technology clearly improves the clinical utility of topical lidocaine because
existing products addressing this $100 million market require up to a 60-
minute waiting period compared to five minutes following a skin pretreatment
with SonoPrep before effective skin anesthesia is achieved. We expect to
launch our product for this indication during the third quarter of 2004,
assuming FDA 510(k) marketing clearance. Additionally, during 2004 we plan to
conduct clinical studies demonstrating that SonoPrep enables transdermal
delivery of vaccines and other pain drugs."
About Sontra Medical Corporation
Sontra Medical Corporation is the pioneer of SonoPrep, a non-invasive
ultrasound-mediated skin permeation technology that enables transdermal
diagnosis and drug delivery. Sontra's products under development include: a
continuous non-invasive glucose monitor developed in collaboration with Bayer
Diagnostics; a rapid onset (less than 5 minutes) topical anesthetic delivery
system and the use of SonoPrep for the transdermal delivery of large molecule
drugs and biopharmaceuticals. For additional information, please visit the
Company's website at http://www.sontra.com.
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 future operating and
financial results, including the sufficiency of cash balances to fund
operations, the expected benefits, efficacy and market opportunity of the
SonoPrep device and technology and related applications, and the expected
timing of the commercial availability of the SonoPrep device and lidocaine
procedure tray. 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: Sontra's success depends on its ability to execute on its
business strategy; Sontra may face difficulties or delays in obtaining
regulatory approvals to market products resulting from development efforts;
Sontra may experience adverse results in product development, clinical trials
and commercialization efforts; Sontra may fail to obtain and maintain patent
protection for discoveries; Sontra's business strategy depends, in part, upon
strategic partners to develop and commercialize products based on our work;
and Sontra requires substantial funding to conduct research and development
and to expand commercialization activities in accordance with its business
plans. 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 Quarterly Report on Form 10-QSB. 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
(Unaudited)
For the Three Months Ended
March 31,
2004 2003
Revenues $- $-
Operating Expenses:
Research and development 675,907 541,352
General and administrative 527,494 418,433
Total operating expenses 1,203,401 959,785
Loss from operations (1,203,401) (959,785)
Interest income 14,229 9,106
Net loss (1,189,172) (950,679)
Accretion of dividend and beneficial
conversion feature on Series A
Convertible Preferred Stock (213,434) -
Net loss applicable to common
shareholders $(1,402,606) $(950,679)
Net loss per common share, basic and diluted $(0.11) $(0.10)
Basis and diluted weighted average
common shares outstanding 12,711,051 9,360,938
SONTRA MEDICAL CORPORATION
Consolidated Balance Sheets
As of
March 31, December 31,
2004 2003
(Unaudited)
Assets:
Current Assets:
Cash and cash equivalents $6,272,650 $4,868,933
Accounts receivable - 1,500,000
Prepaid expenses and other current assets 114,728 66,075
Total current assets 6,387,378 6,435,008
Property and Equipment, at cost
Computer equipment 174,847 171,272
Office and laboratory equipment 407,735 405,285
Furniture and fixtures 14,288 14,288
Manufacturing equipment 180,608 144,695
Leasehold improvements 166,289 166,289
943,767 901,829
Less-Accumulated depreciation and
amortization (534,835) (498,341)
Net property and equipment 408,932 403,488
Other Assets:
Restricted cash 48,746 48,746
Other assets 2,000 2,000
Total other assets 50,746 50,746
Total assets $6,847,056 $6,889,242
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $126,001 $136,810
Accrued expenses 283,600 465,092
Total current liabilities 409,601 601,902
Commitments
Stockholders' Equity:
Series A Convertible Preferred Stock, $0.01 par value,
authorized 7,000,000 shares, issued and
outstanding 2,987,500 shares at March 31,
2004 and 6,495,000 shares at December 31,
2003 (preference in liquidation of
$3,105,148) 3,105,148 6,628,842
Common stock, $0.01 par value, authorized
40,000,000 shares, issued and outstanding
14,521,635 shares at March 31, 2004 and
10,102,992 shares at December 31, 2003 145,216 101,030
Additional paid-in capital 22,802,718 17,952,721
Deferred stock-based compensation (404,076) (372,874)
Accumulated deficit (19,211,551) (18,022,379)
Total stockholders' equity 6,437,455 6,287,340
Total liabilities and stockholders' equity $6,847,056 $6,889,242
Contacts:
Sean Moran, CFO or Evan Smith, CFA / Erica Pettit
Sontra Medical Corporation KCSA Worldwide
Tel: 508-553-8850 Tel: 212-896-1251 / 212-896-1248
SOURCE Sontra Medical Corporation
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Related links:
http://www.sontra.com
CONTACT:
Sean Moran, CFO of Sontra Medical
Corporation, +1-508-553-8850; or Evan Smith, CFA,
+1-212-896-1251, or Erica Pettit, +1-212-896-1248 both of KCSA
Worldwide
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