FRANKLIN, Mass., Aug. 11 /PRNewswire-FirstCall/ -- Sontra Medical
Corporation (Nasdaq: SONTD) announced financial results today for the
second quarter ended June 30, 2006. For the three months ended June 30,
2006, the net loss was $1,610,216, or $.59 per share of common stock, as
compared to $1,752,835 or $.79 per share of common stock, for the same
period in 2005. For the six months ended June 30, 2006, the net loss was
$2,839,404, or $1.12 per share of common stock, as compared to $3,045,462
or $1.37 per share of common stock, for the same period in 2005. As of June
30, 2006, the Company had a total of $3,011,531 in cash and short-term
investments.
On July 24, 2006, the Company's Board of Directors approved a 1-for-10
reverse stock split. The reverse stock split was effective at 5:00 p.m. on
August 10, 2006, and the Company's common stock began trading on a split
adjusted basis on August 11, 2006. All share and per share information
presented herein has been retroactively restated to reflect the reverse
stock split.
"We have continued to make steady progress in the development of our
continuous glucose monitor for the hospital critical care market," stated
Thomas W. Davison, PhD, Sontra's President and Chief Executive Officer.
"Recently, we reported the completion of the first clinical study to verify
the performance of our Continuous Transdermal Glucose Monitor (CTGM) in a
24-hour study on patients with diabetes and healthy volunteers. Our
preliminary analysis of results demonstrated that the wireless glucose flux
sensor accurately detected transdermal glucose to predict real-time changes
in blood glucose levels for the 24-hour period. The primary goals of the
study were to validate the design and operation of the wireless sensor and
monitor system and collect data sets that will lead to the development of a
blood glucose prediction algorithm. We are currently preparing to initiate
clinical studies on patients in critical care settings to demonstrate the
promise of Sontra's technology to address the major unmet clinical need for
a continuous and non-invasive blood glucose monitor to support intensive
insulin therapy.
About Sontra Medical Corporation (http://www.sontra.com)
Sontra Medical Corporation is a technology leader in transdermal
science and is developing a non-invasive, continuous transdermal glucose
monitor ("CTGM") for principal use in the Intensive Care Market. Through
its platform technology, the SonoPrep(R) Permeation System, combined with
technical competencies in transdermal drug formulation, analysis, delivery
systems and biosensors, the Company is creating a new paradigm in
transdermal drug delivery and diagnosis. The CTGM and other company
products are being developed for several billion dollar market
opportunities, all utilizing skin permeation, chemistry and biosensor
technology developed by the Company. In addition, the Company is developing
products for transdermal delivery of large molecule drugs and vaccines.
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 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.
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.
Investor Relations Contacts:
Harry G. Mitchell, CFO
508-530-0311
hmitchell@sontra.com
SONTRA MEDICAL CORPORATION
Consolidated Balance Sheets
As of,
June 30, December 31,
2006 2005
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $711,531 $1,016,792
Short term investments 2,300,000 3,000,000
Accounts receivable - 1,129
Inventory, net of reserve for
obsolescence 44,509 31,250
Prepaid expenses and other current assets 71,840 65,468
Total current assets 3,127,880 4,114,639
Property and Equipment, at cost:
Computer equipment 248,175 241,324
Office and laboratory equipment 593,576 593,576
Furniture and fixtures 14,288 14,288
Manufacturing equipment 522,796 224,888
Leasehold improvements 177,768 177,768
1,556,603 1,251,844
Less-Accumulated depreciation and
amortization (981,347) (894,658)
Net property and equipment 575,256 357,186
Other Assets:
Restricted cash 19,949 29,248
Deposits and other assets 2,000 207,012
Total other assets 21,949 236,260
Total assets $3,725,085 $4,708,085
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $225,457 $210,208
Deferred revenue 19,999 45,000
Current portion of note payable 56,501 53,653
Accrued expenses 321,999 416,936
Total current liabilities 623,956 725,797
Note Payable, net of current portion 120,063 149,043
Commitments
Stockholders' Equity:
Series A Convertible Preferred Stock,
$0.01 par value, authorized 7,000,000
shares, issued and outstanding 73,334
shares at June 30, 2006 and December 31,
2005 (preference in liquidation
of $79,201) 79,201 76,291
Common stock, $0.01 par value,
authorized 60,000,000 shares, issued and
outstanding 2,714,190 shares at June 30,
2006 and 2,226,183 shares at December 31,
2005 27,142 22,262
Additional paid-in capital 34,830,914 32,858,548
Deferred stock-based compensation - (4,159)
Accumulated deficit (31,956,191) (29,119,697)
Total stockholders' equity 2,981,066 3,833,245
Total liabilities and
stockholders' equity $3,725,085 $4,708,085
The accompanying notes are an integral part of these consolidated financial
statements.
(Reflects 1-for-10 reverse stock split on August 11, 2006)
Sontra Medical Corporation
Consolidated Statements of Loss
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
Revenue:
Product revenue $12,414 $32,350 $26,940 $148,403
Licensing revenue 12,500 - 25,001 -
Total revenue 24,914 32,350 $2,500 51,941
Cost of product revenue 21,777 16,706 52,290 96,859
Gross (loss) profit 3,137 15,644 (349) 51,544
Operating Expenses:
Research and
development 922,884 1,039,495 1,686,243 1,945,796
Selling, general and
administrative 725,955 784,967 1,221,015 1,253,775
Total operating
expenses 1,648,839 1,824,462 2,907,258 3,199,571
Loss from
operations (1,645,702) (1,808,818) (2,907,607) (3,148,027)
Other Income
(Expense):
Interest income 41,765 59,451 81,083 107,480
Interest expense (4,816) (2,005) (9,970) (2,005)
Other income, net 36,949 57,446 71,113 105,475
Net loss (1,608,753) (1,751,372) (2,836,494) (3,042,552)
Accretion of dividend
on Series A Convertible
Preferred Stock (1,463) (1,463) (2,910) (2,910)
Net loss applicable
to common
shareholders $(1,610,216) $(1,752,835) $(2,839,404) $(3,045,462)
Net loss per common
share, basic and
diluted $(0.59) $(0.79) $(1.12) $(1.37)
Basic and diluted
weighted average
common shares
outstanding 2,714,021 2,219,230 2,534,678 2,216,214
The accompanying notes are an integral part of these consolidated
financial
statements.
(Reflects 1-for-10 reverse stock split on August 11, 2006)
SOURCE Sontra Medical Corporation
 back to top
Related links:
http://www.sontra.com
CONTACT:
Harry G. Mitchell, CFO of Sontra Medical
Corporation, +1-508-530-0311, hmitchell@sontra.com
|
