FRANKLIN, Mass., Nov. 20 /PRNewswire-FirstCall/ -- Sontra Medical
Corporation (Nasdaq: SONT) announced financial results today for the third
quarter ended September 30, 2006. For the three months ended September 30,
2006, the net loss applicable to common stockholders was $1,389,882, or
$.49 per common share, as compared to $1,510,797 or $.68 per common share,
for the same period in 2005. For the nine months ended September 30, 2006,
the net loss applicable to common stockholders was $4,229,286, or $1.60 per
common share, as compared to $4,556,259 or $2.05 per common share, for the
same period in 2005. As of September 30, 2006, the Company had a total of
$1,677,256 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 have been retroactively restated to reflect the reverse
stock split. The Company expects that cash and short term investments of
$1,677,256 at September 30, 2006 ($1,216,029 at November 20, 2006) will be
sufficient to meet its cash requirements through December 2006. Currently,
the Company is meeting with several potential private investors to raise
capital to meet its working capital and its forecasted operating costs and
expenses beyond December 31, 2006. The Company has engaged a financial
consultant to provide introductions to potential investors. Over the past
year, the Company has experienced a decline in investors interested in
making an investment in the Company. If we do not raise additional capital
by December 31, 2006 (as debt or equity), then we will run out of cash and
will be unable to continue operations. We are continuing to pursue
additional capital through several potential identified investors but have
not received a commitment for financing at this time. If we do not raise
additional capital, the Board of Directors of the Company may decide to
initiate an orderly wind-down of business operations or to file for
bankruptcy protection under the United States Bankruptcy Code. In the event
that we wind-down our business or file for bankruptcy, there would likely
be little or no proceeds available for our stockholders.
"While we have worked, and continue diligently working, to raise
additional cash for the Company's development and working capital needs, we
have also remained focused on the development and on-going clinical
evaluations of our Symphony Continuous Glucose Monitor (CTGM)," stated
Thomas W. Davison, PhD, Sontra's President and Chief Executive Officer. Dr.
Davison added, "Clinical trials of our Symphony Continuous Transdermal
Glucose Monitor (CTGM) are underway at a major Boston, Massachusetts
Medical Center. The study has enrolled 30 patients and preliminary data
analysis verified that the Symphony system is effective for continuous
glucose monitoring in patients undergoing open heart surgery in the
operating room and cardiac care unit. Recently, we expanded this clinical
trial to enroll up to 65 cardiac surgery patients. Assuming we are
successful in obtaining the necessary capital to continue the Company's
operations, we expect to initiate a multi-center clinical study in the
first quarter of 2007 that will enroll critically ill patients in surgical
and medical intensive care units."
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 owns
technology for transdermal delivery of large molecule drugs and vaccines.
Any statements contained in this press release that do not describe
historical facts may constitute forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995. Any
forward-looking statements contained herein are based on current
expectations, but are subject to a number of risks and uncertainties. The
factors that could cause actual future results to differ materially from
current expectations include, but are not limited to, risks and
uncertainties relating to the Company's ability to develop, market and sell
products based on its technology, including a continuous transdermal
glucose monitor for the hospital ICU market; the expected size of the
market for the continuous transdermal glucose monitor for the hospital ICU
market; the expected benefits and efficacy of the SonoPrep device in
connection with diagnostics, vaccine delivery, glucose monitoring and
transdermal science; the availability of substantial additional funding to
continue our operations and to conduct research and development, clinical
studies and future product commercialization; and, the Company's business,
research, product development, regulatory approval, marketing and
distribution plans and strategies. These and other factors are identified
and described in more detail in our filings with the SEC, including,
without limitation, our respective annual reports on Form 10-KSB for the
year ended December 31, 2005, our most recent quarterly reports on Form
10-QSB, and our current reports on Form 8-K. We do not undertake to update
these 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,
September 30, December 31,
2006 2005
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $677,256 $1,016,792
Short term investments 1,000,000 3,000,000
Accounts receivable 44 1,129
Inventory, net of reserve for
obsolescence 48,410 31,250
Prepaid expenses and other current
assets 61,455 65,468
Total current assets 1,787,165 4,114,639
Property and Equipment, at cost:
Computer equipment 248,175 241,324
Office and laboratory equipment 600,426 593,576
Furniture and fixtures 14,288 14,288
Manufacturing equipment 522,797 224,888
Leasehold improvements 177,768 177,768
1,563,454 1,251,844
Less-Accumulated depreciation and
amortization (1,030,112) (894,658)
Net property and equipment 533,342 357,186
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 $2,342,456 $4,708,085
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $153,781 $210,208
Deferred revenue 7,499 45,000
Current portion of note payable 57,982 53,653
Accrued expenses 368,799 416,936
Total current liabilities 588,061 725,797
Note Payable, net of current portion 104,999 149,043
Commitments
Stockholders' Equity:
Series A Convertible Preferred
Stock, $0.01 par value, authorized
7,000,000 shares, issued and outstanding
73,334 shares at September 30, 2006 and
December 31, 2005 (preference in
liquidation of $80,679) 80,679 76,291
Common stock, $0.01 par value, authorized
60,000,000 shares, issued and outstanding
2,976,295 shares at September 30, 2006 and
2,226,183 shares at December 31, 2005 29,763 22,262
Additional paid-in capital 34,883,548 32,858,548
Accumulated deficit (33,344,594) (29,123,856)
Total stockholders' equity 1,649,396 3,833,245
Total liabilities and
stockholders' equity $2,342,456 $4,708,085
(Reflects 1-for-10 reverse stock split effective August 11, 2006)
Sontra Medical Corporation
Consolidated Statements of Loss
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
Revenue:
Product revenue $10,679 $ 20,615 $ 37,619 $169,018
Licensing revenue 12,500 - 37,501 -
Total revenue 23,179 20,615 75,120 169,018
Operating Expenses:
Cost of product
revenue 9,445 149,209 61,734 246,068
Research and
development 803,754 998,026 2,489,996 2,943,821
Selling, general
and administrative 622,518 427,564 1,843,535 1,681,341
Total operating
expenses 1,435,717 1,574,799 4,395,265 4,871,230
Loss from
operations (1,412,538) (1,554,184) (4,320,145) (4,702,212)
Other Income
(Expense):
Interest income 28,604 50,670 109,687 163,151
Interest expense (4,469) (5,804) (14,439) (12,809)
Other income, net 24,135 44,866 95,248 150,342
Net loss (1,388,403) (1,509,318) (4,224,897) (4,551,870)
Accretion of dividend
on Series A Convertible
Preferred Stock (1,479) (1,479) (4,389) (4,389)
Net loss applicable
to common
shareholders $(1,389,882) $(1,510,797) $(4,229,286) $(4,556,259)
Net loss per common
share, basic and
diluted $(0.49) $(0.68) $(1.60) $(2.05)
Basic and diluted weighted
average common shares
outstanding 2,839,201 2,223,396 2,640,691 2,218,635
(Reflects 1-for-10 reverse stock split effective August 11, 2006)
SOURCE Sontra Medical Corporation
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Related links:
http://www.sontra.com
CONTACT:
Harry G. Mitchell, CFO of Sontra Medical
Corporation, +1-508- 530-0311, hmitchell@sontra.com
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