PHILADELPHIA (Sept. 23, 2014)—Echo Therapeutics, Inc. (NASDAQ: ECTE), a medical device company, announced that, as it believes that its current liquidity is insufficient to fund its needs beyond Sept. 30, 2014, it has suspended product development, research, manufacturing and clinical programs and operations to conserve liquidity and capital resources.
The actions follow a strategic review of Echo's current financial position, funding alternatives and projected product-development costs and timelines. In August 2014, in an earlier effort to conserve its liquidity and capital resources, Echo reduced overhead costs, cut capital expenses and reduced its workforce.
"We deeply regret the necessity of today's decision, but we do not have the financial resources to support our continued operations. Reducing our workforce of dedicated employees and ceasing active development of Symphony are among the most difficult decisions we have made," said Charles Bernhardt, Echo's Interim Chief Financial Officer.
Any resumption of operations would be dependent on Echo securing additional third-party funding. However, no assurances can be given that Echo will be able to secure funding that will be sufficient to resume operations.
If Echo is unable to address its liquidity needs, it may be required to file for protection under the U.S. Bankruptcy Code.
