ORGANIZATION AND BASIS OF PRESENTATION

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Note 1. ORGANIZATION AND BASIS OF PRESENTATION

Echo Therapeutics, Inc. is a transdermal medical device company with expertise in advanced skin permeation technology that is initially focused on continuous glucose monitoring and needle-free drug delivery.  Echo is developing its Prelude® SkinPrep System as a platform technology to allow for significantly enhanced and painless skin permeation that will enable two important applications:

·   Analyte extraction, with the Symphony® tCGM System for needle-free, continuous glucose monitoring in hospital patients and diabetics as the first application.

·   Needle-free drug delivery.

The accompanying consolidated financial statements include the accounts of the Company and its only wholly-owned subsidiary, Sontra Medical, Inc., a Delaware corporation. All significant inter-company balances and transactions have been eliminated in consolidation.