2.4.0.80010 - Disclosure - DERIVATIVE WARRANT LIABILITYtruefalsefalse1false falsefalseFrom2013-01-01to2013-06-30http://www.sec.gov/CIK0001031927duration2013-01-01T00:00:002013-06-30T00:00:001true 1ecte_NotesToFinancialStatementsAbstractecte_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0Notes to Financial Statements2false 2ecte_DerivativeWarrantLiabilityTextBlockecte_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00 At June 30, 2013 and December 31, 2012, the Company had outstanding warrants to purchase 1,050,454 and 1,254,004 shares of its Common Stock, respectively. Included in these outstanding warrants at June 30, 2013 and December 31, 2012 are warrants to purchase 700,000 and 736,015 shares, respectively, that are considered to be derivative financial instruments because the warrant agreements contain down round provisions whereby the number of shares covered by the warrants is subject to change in the event of certain future dilutive stock issuances. The fair value of these derivative instruments at June 30, 2013 and December 31, 2012 was approximately $909,000 and $5,585,000, respectively, and is included in Derivative Warrant Liability, a current liability, in the Consolidated Balance Sheet. Changes in fair value of the derivative financial instruments are recognized in the Consolidated Statement of Operations as a gain or loss on revaluation of derivative warrant liability. The Gain on Revaluation of Derivative Warrant Liability for the three and six months ended June 30, 2013 was approximately $2,995,000 and $4,676,000, respectively.  The Gain on Revaluation of Derivative Warrant Liability for the three and six months ended June 30, 2012 was approximately $370,000 and $601,000, respectively.    The Derivative Warrant Liability represents the risk exposure pertaining to the warrants and is based on the fair value of the underlying common stock and the Gain on Revaluation of Derivative Warrant Liability is a result of the change in that fair value.  For the three months ended June 30, 2013, no derivative warrants were exercised and none expired. For the six months ended June 30, 2013, no derivative warrants were exercised and 45,164 expired. For the six months ended June 30, 2012, 11,850 derivative warrants were exercised, which resulted in a reclassification of approximately $42,000 from the Derivative Warrant Liability to Additional Paid-in Capital.    The table below presents the changes in the Level 3 Derivative Warrant Liability measured for the six months ended June 30, 2013 and 2012:   <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 115%"> </td> <td style="line-height: 115%"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%">2013</td> <td style="line-height: 115%"> </td> <td style="line-height: 115%"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%">2012</td> <td style="line-height: 115%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 78%; padding-right: 2.15pt; padding-left: 9pt; text-indent: 9pt; line-height: 115%">Derivative Warrant Liability as of January 1</td> <td style="width: 1%; line-height: 115%"> </td> <td style="width: 1%; line-height: 115%">$</td> <td style="width: 8%; text-align: right; line-height: 115%">5,585,141</td> <td style="width: 1%; line-height: 115%"> </td> <td style="width: 1%; line-height: 115%"> </td> <td style="width: 1%; line-height: 115%">$</td> <td style="width: 8%; text-align: right; line-height: 115%">1,035,337</td> <td style="width: 1%; line-height: 115%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-right: 2.15pt; padding-left: 9pt; text-indent: 27pt; line-height: 115%; font-size: 11pt">Total unrealized losses included in net loss (1)	</td> <td style="line-height: 115%"> </td> <td style="line-height: 115%"> </td> <td style="text-align: right; line-height: 115%">781,682</td> <td style="line-height: 115%"> </td> <td style="line-height: 115%"> </td> <td style="line-height: 115%"> </td> <td style="text-align: right; line-height: 115%"></td> <td style="line-height: 115%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-right: 2.15pt; padding-left: 9pt; text-indent: 27pt; line-height: 115%; font-size: 11pt">Total unrealized gains included in net loss (1)	</td> <td style="line-height: 115%"> </td> <td style="line-height: 115%"> </td> <td style="text-align: right; line-height: 115%">(5,305,000</td> <td style="line-height: 115%">)</td> <td style="line-height: 115%"> </td> <td style="line-height: 115%"> </td> <td style="text-align: right; line-height: 115%">(539,648</td> <td style="line-height: 115%">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-right: 2.15pt; padding-left: 9pt; text-indent: 27pt; line-height: 115%; font-size: 11pt">Total realized gains included in net loss (1)	</td> <td style="line-height: 115%"> </td> <td style="line-height: 115%"> </td> <td style="text-align: right; line-height: 115%">(152,668</td> <td style="line-height: 115%">)</td> <td style="line-height: 115%"> </td> <td style="line-height: 115%"> </td> <td style="text-align: right; line-height: 115%">(61,633</td> <td style="line-height: 115%">)</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-right: 2.15pt; padding-left: 0.75in; text-indent: -0.25in; line-height: 115%; padding-bottom: 1pt">Reclassification of derivative warrant liability to additional paid-in capital for derivative warrants exercised</td> <td style="line-height: 115%; padding-bottom: 1pt"> </td> <td style="line-height: 115%; border-bottom: Black 1pt solid"> </td> <td style="text-align: right; line-height: 115%; border-bottom: Black 1pt solid"></td> <td style="line-height: 115%; padding-bottom: 1pt"> </td> <td style="line-height: 115%; padding-bottom: 1pt"> </td> <td style="line-height: 115%; border-bottom: Black 1pt solid"> </td> <td style="text-align: right; line-height: 115%; border-bottom: Black 1pt solid">(41,520</td> <td style="line-height: 115%; padding-bottom: 1pt">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-right: 2.15pt; padding-left: 9pt; text-indent: 9pt; line-height: 115%">Derivative Warrant Liability as of June 30</td> <td style="line-height: 115%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 115%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">909,155</td> <td style="line-height: 115%"> </td> <td style="line-height: 115%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 115%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">392,536</td> <td style="line-height: 115%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%; border-bottom: Black 1pt solid"> </td> <td style="line-height: 115%"> </td> <td style="line-height: 115%"> </td> <td style="text-align: right; line-height: 115%"> </td> <td style="line-height: 115%"> </td> <td style="line-height: 115%"> </td> <td style="line-height: 115%"> </td> <td style="text-align: right; line-height: 115%"> </td> <td style="line-height: 115%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td colspan="8" style="line-height: 115%; font-size: 11pt">(1)	Included in Gain on Revaluation of Derivative Warrant Liability in the Consolidated Statement of Operations.</td> <td style="line-height: 115%"> </td></tr> </table>falsefalsefalsenonnum:textBlockItemTypenaNote 5. DERIVATIVE WARRANT LIABILITYNo definition available.false0Note 5. DERIVATIVE WARRANT LIABILITYfalseDERIVATIVE WARRANT LIABILITYUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://echotx.com/role/DerivativeWarrantLiability12