Burbank medical device company Imaging3 Inc. has filed for Chapter 11 bankruptcy, the company announced Tuesday.
The company has been unable to obtain Federal Drug Administration approval for its main technology, a medical imaging device that produces 3D images of the human body. Revenue from its other business selling remanufactured medical imaging devices has also lagged.
Imaging3 reported $20.8 million in debt and $453,000 in assets in its bankruptcy filing. It posted a $17.9 million loss last year.
The filing represents a huge turnaround in fortune for a once-hot company. Shares rocketed in late 2009 to a high of $1.95 in anticipation of possible FDA approval of its 3D imaging product, briefly pushing the company’s market capitalization higher than $700 million. But shares have plummeted since it received a rejection letter in October 2010. The company had not re-applied for approval as of its last quarterly report.
Its over-the-counter shares were trading at around one-tenth of a cent Tuesday, down from a close of more than three-tenths of a cent Monday.