SUBSEQUENT EVENTS	9 Months Ended
Sep. 30, 2014
Subsequent Events
Note 15. SUBSEQUENT EVENTS	Management has evaluated events subsequent to September 30, 2014. In addition to the items discussed in Notes 1, 5 and 14, there are no subsequent events that require adjustment to or disclosure in the Financial Statements, other than the following. As described in Note 1, on October 2, 2014, the Company announced that it had retained PwC as a financial and restructuring consultant to assist the Company in exploring financial and strategic alternatives that could sufficiently address its liquidity needs and allow it to resume operations. Such financial and strategic alternatives include, but are not limited to, a sale and/or license of intellectual property and other assets, a merger or sale of the Company in entirety, other business combination, a capital transaction and/or a voluntary petition for reorganization or liquidation pursuant to the U.S. Bankruptcy Code. With PwC’s support of the process, the Company continues to proceed in an orderly and timely manner to consider possible financial and strategic alternatives for the Company and their implications. However, no assurances can be given as to whether any particular financial or strategic alternative will be recommended or undertaken or, if so, upon what terms and conditions. If the Company is unable to identify an acceptable financial or strategic alternative that sufficiently addresses the Company’s liquidity or operational needs, the Company could be forced to file for protection under the U.S. Bankruptcy Code. The engagement agreement between Echo and PwC stated that the Company agreed to pay PwC a $50,000 retainer upon the execution of the agreement and apply this dollar sum to PwC’s final billing. Additionally, PwC would render invoices on a regular basis and that were to be paid within five business days if the Company does not file a petition for relief under Chapter 11 of the U.S. Bankruptcy Code. On November 5, 2014, PwC supplied the Company with a progress billing invoice for $240,740 related to their advisory services. As of November 18, 2014, the Company has deemed it prudent to withhold payment as a result of their desire to gain greater detail regarding the description of services rendered. Accordingly, the Company anticipates that PwC will pursue all remedies available to it up and to including legal action. On October 2, 2014, the Company commented on the recent unauthorized public statements relating to the Company that have been made by Michael M. Goldberg M.D. and Shepard M. Goldberg (“the Goldbergs”), two members of the Company’s Board of Directors that were either designated or nominated to the Company’s Board by an affiliate of Platinum Management (NY) LLC. The press release stated that in prior weeks, the Goldbergs had engaged in numerous unauthorized public communications targeted at the Company’s stockholders, the trading markets and the media. These communications included an unauthorized public investor conference call during which the Goldbergs made a presentation relating to the Company, unauthorized press releases discussing the Company and other unauthorized statements by which the Goldbergs have sought to relay to the Company‘s stockholders information relating to the Company, its prospects and its financing and strategic alternatives. Stockholders were further advised that all such communications by the Goldbergs have been made solely in their individual capacities and not as authorized representatives of the Company or the Company’s Board. The Company specifically disclaimed (i) any responsibility for the Goldbergs’ public statements, communications and other unauthorized actions; (ii) any responsibility for the accuracy of any of the information relating to the Company, its prospects or its financing and strategic alternatives that is disseminated by the Goldbergs or those that may be acting in concert with the Goldbergs; and (iii) any obligation to correct any false and misleading statements and disclosures that may be issued by the Goldbergs or those that may be acting in concert with the Goldbergs. Under Section 5.6 of the Platinum Securities Purchase Agreement, at the reasonable request of Platinum Partners, the Company is required to prepare and file with the SEC a Proxy Statement and seek stockholder approval of the issuance of the Common Stock underlying the Series E Preferred Stock and the warrants. The Company is required to file the Proxy Statement as promptly as reasonably practicable, but in any event no later than 30 business days following the receipt of the request. Thereafter, as promptly as reasonably practicable, but in any event no later than three business days after the Proxy Statement becomes definitive, the Company is required to duly call, give notice to stockholders, convene and hold the Special Meeting, which shall be held no later than 45 business days following the request. On July 9, 2014, Platinum Partners delivered to the Company a Notice of Request to Call a Special Meeting of Stockholders, in which Platinum Partners requested pursuant to Section 5.6 of the Platinum Stock Purchase Agreement that the Company call a special meeting of stockholders to seek stockholder approval of the issuance of 1,748,613 shares of the Common Stock upon the conversion of the 1,748,613 shares of Series E Preferred Stock (the “Special Meeting”). On October 16, 2014, the Company filed a Revised Preliminary Proxy Statement regarding the Special Meeting to consider and act upon a proposal to approve the issuance by the Company of 1,748,613 shares of its Common Stock, to Platinum Partners Value Arbitrage Fund L.P. (“PPVA”) and Platinum Partners Liquid Opportunity Master Fund, L.P. (“PPLO” and, together with PPVA, “Platinum”) upon the conversion by Platinum of 1,748,613 shares of Series E Convertible Preferred Stock of the Company, par value $0.01 per share, which would result in Platinum holding more than 20% of the Company’s outstanding shares of Common Stock, triggering the stockholder approval requirement under Nasdaq Marketplace Rule 5365(b). At this time, no Record Date for holders of the Common Stock nor the date of the Special Meeting of Stockholders has been established. If and when a meeting date is established, no other business will be transacted at the Special Meeting. In accordance with Section 222 of the Delaware General Corporation Law, as amended (the “DGCL”), and Section 1.3 of Echo’s Amended and Restated Bylaws, the business transacted at the Special Meeting shall be limited to the purpose stated in this notice of the Special Meeting. On September 29, 2014, Platinum filed with the SEC a Preliminary Proxy Statement on Schedule 14A for the purpose of commencing a proxy contest to purportedly remove, for “cause”, the only duly-elected independent members of Echo’s Board of Directors that were not designated or nominated by Platinum, namely William F. Grieco, Vincent D. Enright and James F. Smith (the “Non-Affiliated Independent Directors”). We believe that the Preliminary Proxy Statement that Platinum filed with the SEC in connection with the special meeting proxy contest is procedurally and substantively deficient and may involve violations of the federal securities laws and rules and regulations governing proxy solicitations. Among other issues, Echo believes that Platinum’s proxy materials filed with the SEC in connection with its purported attempt to remove the three duly-elected Non-Affiliated Independent Directors through a Special Meeting proxy contest contain numerous inaccuracies, misstatements and untruths. In its numerous conclusory statements, the Platinum Group has taken upon itself to declare that “cause” exists to remove the Non-Affiliated Independent Directors even though it has failed to articulate any conduct engaged in by the Non-Affiliated Independent Directors that would support such a determination consistent with the applicable law of the State of Delaware. As described in Note 5, on August 31, 2012, the Company and Montaur entered into a loan agreement pursuant to which Montaur made a credit facility of up to $20,000,000 available to the Company, a substantial portion of which is subject to the successful achievement of certain clinical and regulatory milestones set forth in the Loan Agreement, with an initial available principal amount of $5,000,000. The Company issued to Montaur a Promissory Note dated August 31, 2012, with a maturity date of five years from the date of closing. On March 1, 2013, the Company elected to prepay all outstanding draws under the Montaur Credit Facility. After such date, no principal amount was outstanding under the Credit Facility. On October 28, 2014, the Company sent a letter to Montaur notifying them that the Company was irrevocably cancelling and terminating the loan agreement in accordance with Section 3.1 of the loan agreement as of October 30, 2014 (see Note 5). On November 6, 2014, the Company received a letter from the Listing Qualifications Department of the NASDAQ Stock Market (“Nasdaq”) informing the Company that because the closing bid price for the Company's common stock listed on Nasdaq was below $1.00 for 30 consecutive business days and therefore out of compliance with the minimum closing bid price requirement for continued listing on the Nasdaq Capital Market under Nasdaq Marketplace Rule 5550(a)(2). The letter further provides that, under the Nasdaq rules, the Company has a 180-day compliance period, or until May 5, 2015, to regain compliance with Nasdaq's listing requirements by having the closing bid price of its common stock be at least $1.00 for at least 10 consecutive trading days. In the event that the Company does not regain compliance by May 5, 2015, the Company may be granted an additional 180-day compliance period, provided that the Company (i) meets the continued listing requirement for market value of publicly held shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the bid price requirement, and (ii) provides written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. However, if it appears to the Nasdaq staff that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, the Nasdaq staff will notify the Company that its common stock will be subject to delisting. In the event that the Company does not regain compliance within the requisite time period, it would have the right to appeal a delisting determination. Failure to maintain listing on the Nasdaq Capital Market may have a material adverse effect on the price and/or liquidity of the Company’s common stock. During this process, shares of the Company's common stock will continue to trade on the Nasdaq Capital Market. On November 14, 2014, the Company’s corporate governance counsel withdrew from its representation of the Company effective immediately. On November 17, 2014, the Company’s securities and transactional counsel notified the Company that, after their review of and comment on the Company’s Form 10-Q was completed, their work for Echo would be concluded and they intended to withdraw from further representation. The Company has not retained new outside counsel at this time. Accordingly, the Company is without external legal representation to advise on corporate governance, securities and transactions matters. Such counsel remains integral to the Company’s ability to provide assurance as to the effectiveness of its system of internal controls, to support Management during a time of discord between members of the Board of Directors, and to assist Management in addressing threats of potential litigation against the Company and public allegations of wrongdoing against various members of the Company’s Board that have previously made public by the Company and/or certain members of its Board.

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2014

Management has evaluated events subsequent to September 30, 2014. In addition to the items discussed in Notes 1, 5 and 14, there are no subsequent events that require adjustment to or disclosure in the Financial Statements, other than the following.

As described in Note 1, on October 2, 2014, the Company announced that it had retained PwC as a financial and restructuring consultant to assist the Company in exploring financial and strategic alternatives that could sufficiently address its liquidity needs and allow it to resume operations. Such financial and strategic alternatives include, but are not limited to, a sale and/or license of intellectual property and other assets, a merger or sale of the Company in entirety, other business combination, a capital transaction and/or a voluntary petition for reorganization or liquidation pursuant to the U.S. Bankruptcy Code. With PwC’s support of the process, the Company continues to proceed in an orderly and timely manner to consider possible financial and strategic alternatives for the Company and their implications. However, no assurances can be given as to whether any particular financial or strategic alternative will be recommended or undertaken or, if so, upon what terms and conditions. If the Company is unable to identify an acceptable financial or strategic alternative that sufficiently addresses the Company’s liquidity or operational needs, the Company could be forced to file for protection under the U.S. Bankruptcy Code. The engagement agreement between Echo and PwC stated that the Company agreed to pay PwC a $50,000 retainer upon the execution of the agreement and apply this dollar sum to PwC’s final billing. Additionally, PwC would render invoices on a regular basis and that were to be paid within five business days if the Company does not file a petition for relief under Chapter 11 of the U.S. Bankruptcy Code. On November 5, 2014, PwC supplied the Company with a progress billing invoice for $240,740 related to their advisory services. As of November 18, 2014, the Company has deemed it prudent to withhold payment as a result of their desire to gain greater detail regarding the description of services rendered. Accordingly, the Company anticipates that PwC will pursue all remedies available to it up and to including legal action.

On October 2, 2014, the Company commented on the recent unauthorized public statements relating to the Company that have been made by Michael M. Goldberg M.D. and Shepard M. Goldberg (“the Goldbergs”), two members of the Company’s Board of Directors that were either designated or nominated to the Company’s Board by an affiliate of Platinum Management (NY) LLC. The press release stated that in prior weeks, the Goldbergs had engaged in numerous unauthorized public communications targeted at the Company’s stockholders, the trading markets and the media. These communications included an unauthorized public investor conference call during which the Goldbergs made a presentation relating to the Company, unauthorized press releases discussing the Company and other unauthorized statements by which the Goldbergs have sought to relay to the Company‘s stockholders information relating to the Company, its prospects and its financing and strategic alternatives. Stockholders were further advised that all such communications by the Goldbergs have been made solely in their individual capacities and not as authorized representatives of the Company or the Company’s Board. The Company specifically disclaimed (i) any responsibility for the Goldbergs’ public statements, communications and other unauthorized actions; (ii) any responsibility for the accuracy of any of the information relating to the Company, its prospects or its financing and strategic alternatives that is disseminated by the Goldbergs or those that may be acting in concert with the Goldbergs; and (iii) any obligation to correct any false and misleading statements and disclosures that may be issued by the Goldbergs or those that may be acting in concert with the Goldbergs.

Under Section 5.6 of the Platinum Securities Purchase Agreement, at the reasonable request of Platinum Partners, the Company is required to prepare and file with the SEC a Proxy Statement and seek stockholder approval of the issuance of the Common Stock underlying the Series E Preferred Stock and the warrants. The Company is required to file the Proxy Statement as promptly as reasonably practicable, but in any event no later than 30 business days following the receipt of the request. Thereafter, as promptly as reasonably practicable, but in any event no later than three business days after the Proxy Statement becomes definitive, the Company is required to duly call, give notice to stockholders, convene and hold the Special Meeting, which shall be held no later than 45 business days following the request. On July 9, 2014, Platinum Partners delivered to the Company a Notice of Request to Call a Special Meeting of Stockholders, in which Platinum Partners requested pursuant to Section 5.6 of the Platinum Stock Purchase Agreement that the Company call a special meeting of stockholders to seek stockholder approval of the issuance of 1,748,613 shares of the Common Stock upon the conversion of the 1,748,613 shares of Series E Preferred Stock (the “Special Meeting”). On October 16, 2014, the Company filed a Revised Preliminary Proxy Statement regarding the Special Meeting to consider and act upon a proposal to approve the issuance by the Company of 1,748,613 shares of its Common Stock, to Platinum Partners Value Arbitrage Fund L.P. (“PPVA”) and Platinum Partners Liquid Opportunity Master Fund, L.P. (“PPLO” and, together with PPVA, “Platinum”) upon the conversion by Platinum of 1,748,613 shares of Series E Convertible Preferred Stock of the Company, par value $0.01 per share, which would result in Platinum holding more than 20% of the Company’s outstanding shares of Common Stock, triggering the stockholder approval requirement under Nasdaq Marketplace Rule 5365(b). At this time, no Record Date for holders of the Common Stock nor the date of the Special Meeting of Stockholders has been established. If and when a meeting date is established, no other business will be transacted at the Special Meeting. In accordance with Section 222 of the Delaware General Corporation Law, as amended (the “DGCL”), and Section 1.3 of Echo’s Amended and Restated Bylaws, the business transacted at the Special Meeting shall be limited to the purpose stated in this notice of the Special Meeting.

On September 29, 2014, Platinum filed with the SEC a Preliminary Proxy Statement on Schedule 14A for the purpose of commencing a proxy contest to purportedly remove, for “cause”, the only duly-elected independent members of Echo’s Board of Directors that were not designated or nominated by Platinum, namely William F. Grieco, Vincent D. Enright and James F. Smith (the “Non-Affiliated Independent Directors”). We believe that the Preliminary Proxy Statement that Platinum filed with the SEC in connection with the special meeting proxy contest is procedurally and substantively deficient and may involve violations of the federal securities laws and rules and regulations governing proxy solicitations. Among other issues, Echo believes that Platinum’s proxy materials filed with the SEC in connection with its purported attempt to remove the three duly-elected Non-Affiliated Independent Directors through a Special Meeting proxy contest contain numerous inaccuracies, misstatements and untruths. In its numerous conclusory statements, the Platinum Group has taken upon itself to declare that “cause” exists to remove the Non-Affiliated Independent Directors even though it has failed to articulate any conduct engaged in by the Non-Affiliated Independent Directors that would support such a determination consistent with the applicable law of the State of Delaware.

As described in Note 5, on August 31, 2012, the Company and Montaur entered into a loan agreement pursuant to which Montaur made a credit facility of up to $20,000,000 available to the Company, a substantial portion of which is subject to the successful achievement of certain clinical and regulatory milestones set forth in the Loan Agreement, with an initial available principal amount of $5,000,000. The Company issued to Montaur a Promissory Note dated August 31, 2012, with a maturity date of five years from the date of closing. On March 1, 2013, the Company elected to prepay all outstanding draws under the Montaur Credit Facility. After such date, no principal amount was outstanding under the Credit Facility. On October 28, 2014, the Company sent a letter to Montaur notifying them that the Company was irrevocably cancelling and terminating the loan agreement in accordance with Section 3.1 of the loan agreement as of October 30, 2014 (see Note 5).

On November 6, 2014, the Company received a letter from the Listing Qualifications Department of the NASDAQ Stock Market (“Nasdaq”) informing the Company that because the closing bid price for the Company's common stock listed on Nasdaq was below $1.00 for 30 consecutive business days and therefore out of compliance with the minimum closing bid price requirement for continued listing on the Nasdaq Capital Market under Nasdaq Marketplace Rule 5550(a)(2). The letter further provides that, under the Nasdaq rules, the Company has a 180-day compliance period, or until May 5, 2015, to regain compliance with Nasdaq's listing requirements by having the closing bid price of its common stock be at least $1.00 for at least 10 consecutive trading days. In the event that the Company does not regain compliance by May 5, 2015, the Company may be granted an additional 180-day compliance period, provided that the Company (i) meets the continued listing requirement for market value of publicly held shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the bid price requirement, and (ii) provides written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. However, if it appears to the Nasdaq staff that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, the Nasdaq staff will notify the Company that its common stock will be subject to delisting. In the event that the Company does not regain compliance within the requisite time period, it would have the right to appeal a delisting determination. Failure to maintain listing on the Nasdaq Capital Market may have a material adverse effect on the price and/or liquidity of the Company’s common stock. During this process, shares of the Company's common stock will continue to trade on the Nasdaq Capital Market.

On November 14, 2014, the Company’s corporate governance counsel withdrew from its representation of the Company effective immediately. On November 17, 2014, the Company’s securities and transactional counsel notified the Company that, after their review of and comment on the Company’s Form 10-Q was completed, their work for Echo would be concluded and they intended to withdraw from further representation. The Company has not retained new outside counsel at this time. Accordingly, the Company is without external legal representation to advise on corporate governance, securities and transactions matters. Such counsel remains integral to the Company’s ability to provide assurance as to the effectiveness of its system of internal controls, to support Management during a time of discord between members of the Board of Directors, and to assist Management in addressing threats of potential litigation against the Company and public allegations of wrongdoing against various members of the Company’s Board that have previously made public by the Company and/or certain members of its Board.