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
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) DATASOURCE: Sontra Medical Corporation
CONTACT: Harry G. Mitchell, CFO of Sontra Medical Corporation,
+1-508-530-0311, Web site: http://www.sontra.com/
Copyright