Revenue Growth Up 44%; Net Loss Improved by
Almost $700,000
Company to Begin Shipments of Evolve Soft Bait
Next Week
Expected to Be a Key Driver of Revenue
Growth
PHOENIX, Nov. 9, 2023
/PRNewswire/ -- SenesTech, Inc. (NASDAQ: SNES, "SenesTech" or the
"Company"), (www.senestech.com) the leader in fertility control to
manage animal pest populations, today announced financial results
for the third quarter of 2023.
"We accelerated our growth trajectory during the third quarter
with strong 44% year-over-year growth in revenues driven by the
initiatives we have undertaken to drive sales, improve our product
quality, and expand our product options," commented Joel Fruendt, SenesTech's President and Chief
Executive Officer. "We expect this growth to further accelerate as
we launch our Evolve Soft Bait, the first and only soft bait
developed to control pest populations using a breakthrough
technology that targets the rat population where it starts, by
restricting fertility through nonlethal methods. We have received
pre-orders and expect to start shipping product next week."
Sales growth during the third quarter was led by increases in
nearly every key market segment, including agribusiness, zoos and
sanctuaries, and commercial. The Company also continued to
experience sequential revenue growth and an improvement of its
return on marketing investment within its e-commerce platform
following the successful reconfiguration of those operations
earlier this year. Overall, the various initiatives led to an
improvement of nearly $700,000 in its
net loss and Adjusted EBITDA loss compared to the year-ago
period.
Fruendt continued, "We have made several operational
improvements to drive revenue growth more efficiently, with an
objective of reaching profitability in the near future."
The launch of the Evolve Soft Bait is expected to be a
significant step in expanding SenesTech's reach within key market
verticals, including 'big box' retailers, key e-commerce channels,
and pest management professionals. Evolve is highly palatable
to rats, easy to deploy, and offers diverse placement in many
different and complex environments, including municipalities,
parks, recreation facilities, sports venues, food processing
facilities, correctional facilities, subways, medical facilities,
agribusiness, zoos, and residential locations. Importantly, Evolve
is priced competitively to currently available rodenticide
alternatives.
"Our initial focus will be on the commercial market and key
industry distributors. In addition, we have established our vendor
account with Amazon and are pursuing the process of selling through
their portal, as well as other e-commerce providers. Finally, we
are initiating discussions with key big box retailers to offer
Evolve on their shelves," added Fruendt.
The introduction of Evolve continues SenesTech's recent string
of innovative product offerings designed to provide customers
with the effectiveness of fertility control in the format that fits
their needs. In July 2023, the
Isolate Bait System was launched as a more efficient and
easier-to-use liquid bait system, which integrates both the tank
and tray as a single unit. In October, Isolate represented over a
third of all unit sales. Last year, the Company introduced Elevate,
an easily deployed system for mounting in the rafters of barns,
granaries, attics, lofts, and storage and manufacturing facilities.
Year-to-date, nearly 5,500 Elevate systems have been deployed in
various agricultural settings.
"Product innovation is key to our future success. Building upon
the recent introductions of the Isolate and Elevate bait systems
for ContraPest, Evolve was developed to offer customers a soft bait
product that has similar efficacy to ContraPest, but in a format
that is easier to deploy and in a format they can use daily in
their integrated pest management programs," Fruendt continued. "A
key differentiating feature for Evolve is the opportunity to
distribute through key big box retailers and e-commerce providers.
We are in active negotiations, with a goal to develop partnerships
that will dramatically increase the adoption of the Evolve solution
and to set SenesTech up for tremendous success in the future."
Q3 2023 Highlights
- Revenue during Q3 2023 was $360,000 compared to $250,000 in Q3 2022, an increase of 44%.
- Gross profit during Q3 2023 was $176,000, for a gross profit margin of 49%,
compared to $122,000, or a gross
profit margin of 49%, in Q3 2022.
- Net loss during Q3 2023 was $1.9
million, compared with a net loss of $2.6 million for Q3 2022.
- Adjusted EBITDA loss, which is a non-GAAP measure of operating
performance, for Q3 2023 was $1.7
million compared to $2.4
million in Q3 2022.
- Cash at the end of September 2023
was $2.1 million.
Use of Non-GAAP Measure
Adjusted EBITDA is a non-GAAP measure. However, this measure is
not intended to substitute for those financial measures reported in
accordance with GAAP. Adjusted EBITDA has been included because
management believes that, when considered together with the GAAP
figures, it provides meaningful information related to our
operating performance and liquidity and can enhance an overall
understanding of financial results and trends. Adjusted EBITDA may
be calculated by us differently than other companies that disclose
measures with the same or similar term. See our attached financials
for a reconciliation of this non-GAAP measure to the nearest GAAP
measure.
Conference Call Details
Date and Time: Thursday, November 9, 2023, at
5:00 pm ET
Call-in Information: Interested parties can access
the conference call by dialing (844) 308-3351 or (412)
317-5407.
Live Webcast Information: Interested parties can
access the conference call via a live Internet webcast, which is
available in the Investor Relations section of the Company's
website at http://senestech.investorroom.com/ or
https://app.webinar.net/J3D79bAZjVx.
Replay: A teleconference replay of the call will be
available for seven days at (877) 344-7529 or (412) 317-0088,
replay access code 6400460. A webcast replay will be available in
the Investor Relations section of the Company's website at
http://senestech.investorroom.com for 90 days or
https://app.webinar.net/J3D79bAZjVx.
About SenesTech
We are committed to improving the health of the world by
humanely managing animal pest populations through fertility
control. We are experts in fertility control to manage animal pest
populations. We invented ContraPest, the only U.S.
EPA-registered contraceptive for male and female rats, and Evolve,
an EPA-designated minimum risk contraceptive currently offered for
rats. ContraPest and Evolve fit seamlessly into all integrated pest
management programs, significantly improving the overall goal of
effective pest management. We strive for clean cities, efficient
businesses and happy households – with a product designed to be
humane, effective and sustainable.
For more information visit https://senestech.com/ and
https://contrapeststore.com.
Safe Harbor Statement
This press release contains "forward-looking statements" within
the meaning of federal securities laws, and we intend that such
forward-looking statements be subject to the safe harbor created
thereby. Such forward-looking statements include, among others, our
expectation that the Evolve Soft Bait solution will be a key driver
to revenue growth; our expectation that our growth will further
accelerate into the future as we launch our Evolve Soft Bait
solution; our expectation that we will start shipping Evolve Soft
Bait product next week; our objective to drive the business towards
profitability; our expectation that the launch of the Evolve Soft
Bait solution will be a significant step in expanding our reach
within key market verticals, including 'big box' retailers, key
e-commerce channels, and leading industry pest management
professionals; our belief that product innovation is key to our
future success; and our goal to develop partnerships that will
dramatically increase the adoption of the Evolve solution and set
us up for tremendous success in the future. Forward-looking
statements may describe future expectations, plans, results, or
strategies and are often, but not always, made through the use of
words such as "believe," "may," "future," "plan," "will," "should,"
"expect," "anticipate," "eventually," "project," "estimate,"
"continuing," "intend" and similar words or phrases. You are
cautioned that such statements are subject to risks, uncertainties
and other factors that could cause actual results to differ
materially from those reflected by such forward-looking statements.
Such factors include, among others, the successful
commercialization of our products; market acceptance of our
products; our financial performance, including our ability to fund
operations; our ability to maintain compliance with Nasdaq's
continued listing requirements; and regulatory approval and
regulation of our products and other factors and risks identified
from time to time in our filings with the Securities and Exchange
Commission, including our Annual Report on Form 10-K for the fiscal
year ended December 31, 2022. All
forward-looking statements contained in this press release speak
only as of the date on which they were made and are based on
management's assumptions and estimates as of such date. Except as
required by law, we do not undertake any obligation to publicly
update any forward-looking statements, whether as a result of the
receipt of new information, the occurrence of future events or
otherwise.
CONTACT:
Investors: Robert Blum, Lytham
Partners, LLC,
602-889-9700, senestech@lythampartners.com
Company: Tom Chesterman, Chief
Financial Officer, SenesTech, Inc., 928-779-4143
SENESTECH,
INC.
BALANCE
SHEETS
(In thousands, except
share and per share data)
(Unaudited)
|
|
|
September
30,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
2,145
|
|
$
4,775
|
Accounts receivable,
net
|
83
|
|
113
|
Prepaid
expenses
|
385
|
|
378
|
Inventory,
net
|
703
|
|
853
|
Total current
assets
|
3,316
|
|
6,119
|
Right to use assets,
operating leases
|
217
|
|
347
|
Property and equipment,
net
|
313
|
|
294
|
Other noncurrent
assets
|
22
|
|
22
|
Total
assets
|
$
3,868
|
|
$
6,782
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
147
|
|
$
540
|
Accrued
expenses
|
671
|
|
560
|
Current portion of
operating lease liability
|
192
|
|
180
|
Current portion of
note payable
|
9
|
|
—
|
Deferred
revenue
|
15
|
|
44
|
Total current
liabilities
|
1,034
|
|
1,324
|
Operating lease
liability, less current portion
|
34
|
|
179
|
Note payable, less
current portion
|
44
|
|
—
|
Total
liabilities
|
1,112
|
|
1,503
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
3
|
|
1
|
Additional paid-in
capital
|
130,933
|
|
127,481
|
Accumulated
deficit
|
(128,180)
|
|
(122,203)
|
Total stockholders'
equity
|
2,756
|
|
5,279
|
Total liabilities and
stockholders' equity
|
$
3,868
|
|
$
6,782
|
SENESTECH,
INC.
STATEMENTS OF
OPERATIONS
(In thousands, except
share and per share data)
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues,
net
|
$
360
|
|
$
250
|
|
$
898
|
|
$
722
|
Cost of
sales
|
184
|
|
128
|
|
488
|
|
374
|
Gross
profit
|
176
|
|
122
|
|
410
|
|
348
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
379
|
|
452
|
|
1,147
|
|
1,399
|
Selling general and
administrative
|
1,748
|
|
2,289
|
|
5,259
|
|
6,473
|
Total operating
expenses
|
2,127
|
|
2,741
|
|
6,406
|
|
7,872
|
Loss from
operations
|
(1,951)
|
|
(2,619)
|
|
(5,996)
|
|
(7,524)
|
Other income
(expense), net
|
4
|
|
(27)
|
|
19
|
|
(23)
|
Net loss
|
$
(1,947)
|
|
$
(2,646)
|
|
$
(5,977)
|
|
$
(7,547)
|
Weighted average shares
outstanding
— basic and diluted
|
4,176,592
|
|
610,648
|
|
3,037,790
|
|
610,578
|
Loss per share — basic
and diluted
|
$
(0.47)
|
|
$
(4.33)
|
|
$
(1.97)
|
|
$
(12.36)
|
SENESTECH,
INC.
Itemized
Reconciliation Between Net Loss and Adjusted EBITDA
(non-GAAP)
(In
thousands)
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net loss (as reported,
GAAP)
|
$
(1,947)
|
|
$
(2,646)
|
|
$
(5,977)
|
|
$
(7,547)
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
Interest income,
net
|
(4)
|
|
(1)
|
|
(19)
|
|
(3)
|
Stock-based
compensation
|
170
|
|
140
|
|
467
|
|
570
|
Reserve for future
severance
|
—
|
|
—
|
|
120
|
|
—
|
Depreciation
expense
|
35
|
|
35
|
|
104
|
|
148
|
Loss on sale of
property and
equipment
|
—
|
|
28
|
|
—
|
|
26
|
Total non-GAAP
adjustments
|
201
|
|
202
|
|
672
|
|
741
|
Adjusted EBITDA loss
(non-GAAP)
|
$
(1,746)
|
|
$
(2,444)
|
|
$
(5,305)
|
|
$
(6,806)
|
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SOURCE SenesTech, Inc.