EX-99.1 2 body_exh99-1.htm EXHIBIT 99. 1 PRESS RELEASE Exhibit 99. 1 Press Release
FOR IMMEDIATE RELEASE   Exhibit 99.1
 
Sontra Medical Reports First Quarter 2006 Results and Business Update

Franklin, MA - May 11, 2006 -- Sontra Medical Corporation (NASDAQ: SONT) announced financial results today for the first quarter ended March 31, 2006. For the three months ended March 31, 2006, the net loss applicable to common stockholders was $1,229,000, or $.05 per share, as compared to $1,293,000 or $.06 per share, for the same period in 2005. The Company ended the quarter with a total of $4,323,000 in cash and short term investments.
 
“We have made 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. “A majority of Sontra’s resources are focused on the development of this product. Glucose monitoring prototypes systems are currently being tested and validated at Sontra’s in-house scientific laboratories. We have commenced enrollment in a clinical study consisting of patients with diabetes and healthy volunteers. The primary goals of the first study will be to evaluate the reliability of our glucose monitoring system and develop a glucose prediction algorithm that will be tested in a second hospital critical care study to be conducted at Tufts-New England Medical Center, the Boston Medical Center, Beth Israel Deaconess Hospital and Rhode Island Hospital. Intensive insulin therapy and frequent blood glucose testing to maintain tight glycemic control is one of the most exciting new trends in critical care medicine. The enormous clinical benefits include reducing mortality and severe complications by up to 50%. These benefits, combined with significant cost savings that come from reduced length of stay and less intervention, are expected to create a new market for critical care continuous glucose monitors that we estimate will exceed $1 billion.”
 
About Sontra Medical Corporation (www.sontra.com)
 
Sontra Medical Corporation is a technology leader in transdermal science. Sontra’s SonoPrep ultrasound-mediated skin permeation technology combined with technical competencies in transdermal drug formulation, delivery systems and biosensors is creating a new paradigm in transdermal drug delivery and diagnosis. The SonoPrep technology is being developed for several billion dollar market opportunities, including continuous glucose monitoring and the transdermal delivery of large molecule drugs and vaccines. Sontra is currently marketing the SonoPrep device and procedure tray for use with topical lidocaine to achieve rapid (within five minutes) skin anesthesia.
 
Investor Relations Contact:
Sean Moran, Sontra Medical CFO
508-530-0334
© 2006 Sontra Medical Corporation. 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 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 Annual Report on Form 10-KSB. 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.

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SONTRA MEDICAL CORPORATION  
Consolidated Statements of Loss  
(Unaudited)  
            
 
  Three Months Ended
   
 March 31,
   
 2006
 
2005
  
Revenue:
              
    Product revenue
  
$
14,526
  
$
116,053
  
    Licensing revenue
    
12,501
   
-
 
     Total revenue
    
27,027
   
116,053
 
               
 Cost of product revenue
    
30,513
   
80,154
 
    Gross (loss) profit
    
(3,486
)
  
35,899
 
               
Operating Expenses:
              
  Research and development
    
763,358
   
906,300
 
  Selling, general and administrative
    
495,061
   
473,809
 
    Total operating expenses
    
1,258,419
   
1,380,109
 
               
        Loss from operations
    
(1,261,905
)
  
(1,344,210
)
               
Interest income
    
39,318
   
53,030
 
Interest expense
    
(5,154
)
  
-
 
        Net loss
    
(1,227,741
)
  
(1,291,180
)
               
Accretion of dividend on Series A Convertible Preferred Stock
    
(1,447
)
  
(1,447
)
Net loss applicable to common shareholders
  
$
(1,229,188
)
$
(1,292,627
)
               
Net loss per common share, basic and diluted
  
$
(0.05
)
$
(0.06
)
               
Basic and diluted weighted average common shares outstanding
    
23,597,289
   
22,131,657
 
 
 
SONTRA MEDICAL CORPORATION
Consolidated Balance Sheets
   
As of,
  
   
March 31,
  
December 31,
 
 
 
2006
 
2005
  
   
(Unaudited)
      
ASSETS:
          
Current Assets:
              
  Cash and cash equivalents
  
$
2,023,187
  
$
1,016,792
  
  Short term investments
    
2,300,000
   
3,000,000
 
  Accounts receivable
    
11,590
   
1,129
 
  Inventory, net of reserve for obsolescence
    
49,010
   
31,250
 
  Prepaid expenses and other current assets
    
104,320
   
65,468
 
    Total current assets
    
4,488,107
   
4,114,639
 
               
Property and Equipment, at cost:
              
  Computer equipment
    
245,365
   
241,324
 
  Office and laboratory equipment
    
593,576
   
593,576
 
  Furniture and fixtures
    
14,288
   
14,288
 
  Manufacturing equipment
   
490,455
   
224,888
 
  Leasehold improvements
    
177,768
   
177,768
 
     
1,521,452
   
1,251,844
 
Less - accumulated depreciation and amortization
    
(933,943
)
  
(894,658
)
Net property and equipment
    
587,509
   
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
  
$
5,097,565
  
$
4,708,085
  
               
LIABILITIES AND STOCKHOLDERS' EQUITY
              
               
Current Liabilities:
              
  Accounts payable
  
$
229,714
  
$
210,208
  
  Deferred revenue
    
32,499
   
45,000
 
  Current portion of note payable
    
55,059
   
53,653
 
  Accrued expenses
    
185,697
   
416,936
 
    Total current liabilities
    
502,969
   
725,797
 
               
Note Payable, net of current portion
    
134,740
   
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 March 31, 2006 and December 31, 2005
              
   (preference in liquidation of $77,738)
    
77,738
   
76,291
 
               
  Common stock, $0.01 par value, authorized 60,000,000 shares, issued and outstanding
              
   27,103,491 shares at March 31, 2006 and 22,261,830 shares at December 31, 2005
    
271,035
   
222,618
 
  Additional paid-in capital
    
34,458,521
   
32,658,192
 
  Deferred stock-based compensation
    
-
   
(4,159
)
  Accumulated deficit
    
(30,347,438
)
  
(29,119,697
)
    Total stockholders' equity
    
4,459,856
   
3,833,245
 
               
        Total liabilities and stockholders' equity
  
$
5,097,565
  
$
4,708,085