ISELIN, N.J., May 20, 2016 /PRNewswire/ -- Echo Therapeutics, Inc. (NASDAQ: ECTE), a medical device company focused on non-invasive continuous glucose monitoring (CGM) and associated technologies, today announced its financial results for the quarter ended March 31, 2016. Echo's Quarterly Report on Form 10-Q, as filed with the SEC, may be accessed on the SEC's website, www.sec.gov.
First Quarter 2016 Financial Results
Echo's net loss for the first quarter of 2016 was $2.6 million, or ($0.23) per share, compared to $8.3 million, or ($0.72) per share, for the first quarter of 2015. The operating loss for the first quarter of 2016 was $1.7 million compared to $2.5 million for the first quarter of 2015. Research and development (R&D) expenses were $0.7 million for the first quarter of 2016 compared to $0.8 million for the first quarter of 2015. The decrease in R&D expenses was primarily attributable to capitalized software development costs related to an Application Programming Interface (API) used with our CGM. Selling, general and administrative (S,G&A) expenses were $0.9 million during the first quarter of 2016 compared to $1.5 million during the first quarter of 2015. The decrease in S,G&A expenses was primarily due to declines in legal fees, salaries and benefits.
During the first quarter, Echo entered into a Securities Purchase Agreement with certain institutional and other accredited investors for the sale of up to $5,145,000 of secured convertible notes and warrants to purchase common stock in two tranches. The initial closing of $1,787,000 occurred on January 29, 2016. The second tranche closing of $3,358,000 occurred on May 3, 2016.
Recent Corporate Highlights:
- In May 2016, Echo completed the software transfer of its application program interface (API) and software application (App) to its strategic partner Medical Technologies Innovation Asia (MTIA). The new API and App will greatly simplify MTIA's integration of its own Chinese CGM App for use in the upcoming China Food and Drug Administration (CFDA) clinical trial.
- In March 2016, Echo's team visited China where testing of the Company's CGM showed linearity between locally manufactured sensors and U.S. produced sensors, marking the successful technology transfer to MTIA.
- During the first quarter of 2016, Echo made significant progress in the development and initial internal clinical testing of the NextGen sensor element, hydrogel and other key components of the Company's next generation CGM. Improvements include a higher sensitivity to glucose with increased consistency, a shorter warm-up time, and resistance to acetaminophen interference. The new streamlined design, that includes a flexible target base and transmitter housing, is more consumer-friendly and substantially less expensive than the prior version. A working prototype of the next generation CGM system is scheduled for June 2016.
"During the first quarter, we made substantial progress toward the completion of our NextGen CGM system while we continued to support MTIA's preparations for the upcoming CFDA clinical trial," said Scott W. Hollander, Echo's President and CEO. "With several important milestones still ahead, we look forward to increased shareholder value and commercialization of our CGM in China in the next year."
About Echo Therapeutics
Echo Therapeutics is developing its non-invasive, wireless, continuous glucose monitoring (CGM) system. A significant opportunity exists for the Company's CGM to be used in the outpatient diabetes market and in the fitness, weight loss and personal lifestyle wearable-health space. A longer-term opportunity also exists in the hospital settings. Echo developed its needle-free skin preparation device as a platform technology that allows for enhanced skin permeation enabling extraction of analytes, such as glucose, and enhanced 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 clinical studies, the safety and efficacy of Echo's CGM System, the failure of future development and preliminary marketing efforts related to Echo's 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 Echo's 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 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, 2015, 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
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SOURCE Echo Therapeutics, Inc.