FLAGSTAFF, Ariz., May 15, 2019 /PRNewswire/ -- SenesTech, Inc.
(NASDAQ: SNES), a developer of proprietary technologies for
managing animal pest populations through fertility control, today
announced financial and operational results for the first quarter
of fiscal 2019, which ended March 31,
2019.
The Company also announced the appointment of Ken Siegel as SenesTech's new Chief Executive
Officer, succeeding the Company's Co-Founder, Dr. Loretta Mayer, who will remain Chair and Chief
Scientific Officer. Today's leadership announcement is part of
SenesTech's ongoing strategic plan to position the Company for
growth and drive the commercialization of ContraPest, its
flagship product. The new approach, launched earlier this year has
begun to gain traction with key municipalities and the
food/agricultural markets.
Mr. Siegel is a seasoned senior executive with over 25 years of
leadership experience at major public and private
corporations. He most recently served as President of Diamond
Resorts International, a leading independent branded vacation
ownership company. Prior to Diamond, he served as Chief
Administrative Officer of Starwood Hotels & Resorts, a global
hospitality company, until its acquisition by Marriott
International in 2016. Siegel's background includes
operations, finance, legal, branding and reputation management,
sustainability and social responsibility, lobbying and regulatory
affairs. He also has extensive experience working with and in
technology businesses and is an expert in the development and
protection of intellectual property assets.
Ken brings tremendous passion to SenesTech's highly effective,
eco-friendly solutions to pest control. He is a recognized
leader in corporate sustainability and social responsibility having
developed Starwood's innovative strategies to mitigate potential
social and economic harms of its business through initiatives that
improved overall economic performance. He is a key proponent
of strategies to "do well by doing good."
"I believe that SenesTech has developed the right product and
technologies for our times," Siegel said. "ContraPest is a highly
effective, proven, and eco-friendly solution to an age-old
problem. With growing environmental and effectiveness
concerns around existing solutions, SenesTech stands alone in
offering a product that addresses a critical need for pest control
without the inherent environmental risks of existing
rodenticides."
Co-Founders Dr. Loretta P. Mayer,
Chair of SenesTech and Chief Scientific Officer, and Dr.
Cheryl A. Dyer, President and Chief
Research Officer, said, "We are excited to have Ken join us in this
leadership role. We know that he shares our commitment to
SenesTech's mission and a passion for our product, ContraPest. We
also know that his extensive executive experience, corporate
relationships and his understanding of the customer are ideally
suited to rapidly drive adoption of ContraPest. With Ken's overall
leadership, we can continue to focus on SenesTech's enduring
vision: sound science, effective solutions."
Mr. Siegel continued, "The awareness and wide availability of
ContraPest is the most it has ever been. The activity over the last
few months, including deployments in large municipalities, such as
Washington DC, St. Louis, Southern
California, San Francisco
and elsewhere confirms that the need for a novel solution to this
persistent problem is evident. Continued successful deployments
will enhance the market penetration of ContraPest and our unique
technology. Targeting our strategic and tactical marketing efforts
directly to the commercial end-user market segments is key to our
future success. I am confident that we can drive substantial growth
in 2019 and beyond."
Recent Developments:
Since the beginning of the year,
SenesTech announced a number of recent developments involving
ContraPest, including:
- A comprehensive roll-out of ContraPest in Washington DC commencing in spring 2019.
ContraPest has been deployed in the first ward with sequential
deployments now planned throughout all eight wards.
- Deployed ContraPest in a major transit agency in Southern California.
- Expanded into additional animal sanctuaries following the
successful deployment at an initial facility in upstate
New York.
- Completed initial deployments in hosted poultry farms and will
begin first commercial application in egg production facilities in
California's central valley.
- Expected expansion of use of ContraPest by St. Louis Gateway
Arch Park Foundation.
- Added ContraPest to Pestec's IPM program for use in popular
locations within the San Francisco Bay
Area.
- Introduced products into the animal care market with ContraPest
provided directly or indirectly to 11 zoos and a wide variety of
animal sanctuaries.
- Removal of the "Restricted Use Only" category from the
ContraPest label was approved by the U.S. Environmental Protection
Agency (EPA) in October 2018. As of
this date, the Company has received follow-on state acceptance for
the new label and removal of restricted use status in 35 states,
including Florida and Washington.
- Launched a new scientific speaker series, showcasing the
scientists and researchers who have made substantial contributions
in rodent/animal behavior, rodent management, fertility control and
other related fields.
- Progression of AB 1788 continues through the California legislature. If passed, AB 1788
would greatly restrict or eliminate the use of second generation
anticoagulant rodenticides (SGARs). This, in turn, could accelerate
the adoption of ContraPest in California.
Financial Results
Revenues from product sales during
Q1 2019 ended March 31, 2019 were
$19,000, compared to $19,000 of revenue from product sales during Q1
2018. Net loss for the quarter was $2.4
million, compared with a net loss of $2.7 million during the first quarter of 2018.
Adjusted EBITDA, which is a non-GAAP measure of operating
performance, was $(2.0) million
during Q1 2019, compared to $(1.8)
million during Q1 2018.
Tom Chesterman, Chief Financial
Officer of SenesTech, commented, "Results during the first quarter
reflect temporary disruptions as we implemented our end user sales
and marketing strategy, delays in deployments due to anticipated
seasonal reduction in rodent activity during the quarter and the
transition to the removal of ContraPest's 'restricted use only'
status at the state level. We continued to drive improvements in
our operating expenses and limit our cash utilization. We ended the
quarter with cash, cash equivalents and investments of
approximately $2.9 million and have received accelerating
warrant exercises subsequent to the end of the quarter."
Use of Non-GAAP Measure
Adjusted EBITDA is a non-GAAP
measure. However, this measure is not intended to be a 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: 5:00 pm ET
(2:00 pm PT) on Wednesday, May 15, 2019
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/.
To Ask a Question: The conference call will be moderated
by Lytham Partners, an investor relations firm. There will be three
options to ask a question during the call:
- Questions can be asked live during the call-in portion of the
conference call.
- The live webcast will feature an option to submit questions in
writing during the event.
- If you are unable to attend the event, you can submit a
question in advance to Senestech@LythamPartners.com.
Replay:
A teleconference replay of the call will be available for three
days at (877) 344-7529 or (412) 317-0088, confirmation #10131510. A
webcast replay will be available in the Investor Relations section
of the Company's website at
http://senestech.investorroom.com/ for 90 days.
About SenesTech
SenesTech has developed and is in
the process of commercializing a proprietary technology for
managing animal pest populations, primarily rat populations,
through fertility control. For more information visit the SenesTech
website at www.senestech.com.
Safe Harbor Statement
The foregoing paragraphs
contain forward-looking statements that involve estimates,
assumptions, risks and uncertainties. Any statements about our
expectations, beliefs, plans, objectives, assumptions or future
events or performance are not historical facts and may be
forward-looking. "Forward-looking statements" may be preceded by
words such as "may," "future," "plan" or "planned," "will,"
"should," "expected," "anticipates," "continue," "eventually,"
"believes," or "projected." Forward-looking statements include
statements concerning target marketing and markets; continuing the
Company's vision; deployment of the Company's product; the
continuation or expansion of the use of ContraPest; demand for
ContraPest; the Company's continuing to control expenses and cash;
future financial results; and the Company's execution of its
strategic business plan.
Investors should not unduly rely on forward-looking
statements. Such statements are subject to a multitude of risks and
uncertainties that could cause future circumstances, events, or
results to differ materially from those made in the forward-looking
statements, including as a result of various factors and other
risks, such as market acceptance and demand for the Company's
products, customers completing order commitments, the Company's
ability to reduce costs and execute on its plans and continuing to
believe it is following the best strategy, the Company having
sufficient financing, and other factors identified in the Company's
filings with the Securities and Exchange Commission, including its
annual report on Form 10-K and quarterly reports filed on Form
10-Q. All forward-looking statements speak only as of the date on
which they were made based on management's assumptions as of such
date. The Company does not undertake any obligation to update any
forward-looking statements, whether as a result of the receipt of
new information, the occurrence of future events or
otherwise.
SENESTECH,
INC.
|
BALANCE
SHEETS
|
(In thousands,
except shares and per share data)
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
2019
|
|
2018
|
ASSETS
|
(Unaudited)
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash
|
$
2,946
|
|
$
4,920
|
Accounts
receivable
|
150
|
|
139
|
Prepaid
expenses
|
345
|
|
342
|
Inventory
|
1,335
|
|
1,261
|
Deposits
|
8
|
|
9
|
Total current
assets
|
4,784
|
|
6,671
|
|
|
|
|
Right to use
asset-operating leases
|
76
|
|
-
|
Property and
equipment, net
|
983
|
|
1,083
|
Total
assets
|
$
5,843
|
|
$
7,754
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
202
|
|
$
219
|
Accounts
payable
|
272
|
|
173
|
Accrued
expenses
|
776
|
|
771
|
Total current
liabilities
|
1,250
|
|
1,163
|
|
|
|
|
Long-term debt,
net
|
227
|
|
261
|
Operating lease
liability
|
76
|
|
-
|
Common stock warrant
liability
|
5
|
|
-
|
Deferred
rent
|
15
|
|
16
|
Total
liabilities
|
1,573
|
|
1,440
|
|
|
|
|
Commitments and
contingencies
|
-
|
|
-
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock, $0.001
par value, 100,000,000 shares authorized, 23,560,864 and 23,471,999
shares issued and outstanding at March 31, 2019 and December 31,
2018, respectively
|
24
|
|
24
|
Additional paid-in
capital
|
92,448
|
|
92,128
|
Accumulated
deficit
|
(88,202)
|
|
(85,838)
|
Total stockholders'
equity
|
4,270
|
|
6,314
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
5,843
|
|
$
7,754
|
SENESTECH,
INC.
|
STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
|
(In thousands,
except shares and per share data)
|
(Unaudited)
|
|
|
|
|
|
For the Three
Months
|
|
Ended March
31,
|
|
2019
|
|
2018
|
|
|
|
|
Net Sales
|
$
19
|
|
$
19
|
Cost of
sales
|
12
|
|
19
|
Gross
profit
|
7
|
|
-
|
|
|
|
|
Operating
expenses:
|
|
|
|
Research and
development
|
464
|
|
634
|
Selling, general and
administrative
|
1,904
|
|
2,028
|
Total operating
expenses
|
2,368
|
|
2,662
|
|
|
|
|
Net operating
loss
|
(2,361)
|
|
(2,662)
|
|
|
|
|
Other income
(expense):
|
|
|
|
Interest
income
|
15
|
|
6
|
Interest
expense
|
(13)
|
|
(22)
|
Other income
(expense)
|
(5)
|
|
13
|
Total other income
(expense)
|
(3)
|
|
(3)
|
|
|
|
|
Net loss and
comprehensive loss
|
$
(2,364)
|
|
$
(2,665)
|
|
|
|
|
Loss per share
attributable to common shareholders, basic and diluted
|
$
(0.10)
|
|
$
(0.16)
|
|
|
|
|
Weighted average
common shares outstanding - basic and fully diluted
|
23,518,400
|
|
16,496,385
|
SENESTECH,
INC.
|
STATEMENTS OF CASH
FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
For the Three
Months
|
|
Ended March
31,
|
|
2019
|
|
2018
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net loss
|
$
(2,364)
|
|
$
(2,665)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Gain on
investments
|
-
|
|
(18)
|
Bad debts
expense
|
-
|
|
5
|
Depreciation and
amortization
|
111
|
|
117
|
Stock-based
compensation
|
252
|
|
698
|
Loss on remeasurement
of common stock warrant liability
|
5
|
|
-
|
(Increase) decrease
in current assets:
|
|
|
|
Accounts
receivable
|
(11)
|
|
9
|
Prepaid
expenses
|
(3)
|
|
(75)
|
Inventory
|
(74)
|
|
(247)
|
Deposits
|
1
|
|
2
|
Increase (decrease)
in current liabilities:
|
|
|
|
Accounts
payable
|
99
|
|
(22)
|
Accrued
expenses
|
37
|
|
(116)
|
Deferred
rent
|
(1)
|
|
(6)
|
Net cash used in
operating activities
|
(1,948)
|
|
(2,318)
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Proceeds received on
sale of securities
|
-
|
|
798
|
Purchase of property
and equipment
|
(11)
|
|
(3)
|
Net cash provided by
(used in) investing activities
|
(11)
|
|
795
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Repayments of notes
payable,
net
|
(32)
|
|
(26)
|
Repayments of notes
payable, related parties
|
-
|
|
(6)
|
Repayments of capital
lease obligations
|
(19)
|
|
(18)
|
Proceeds from the
exercise of warrants
|
36
|
|
-
|
Net cash provided by
financing activities
|
(15)
|
|
(50)
|
|
|
|
|
NET CHANGE IN
CASH
|
(1,974)
|
|
(1,573)
|
CASH AT BEGINNING OF
PERIOD
|
4,920
|
|
2,101
|
CASH AT END OF
PERIOD
|
$
2,946
|
|
$
528
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
INFORMATION:
|
|
|
|
Interest
paid
|
$
13
|
|
$
22
|
Income taxes
paid
|
$
-
|
|
$
-
|
|
|
|
|
NON-CASH INVESTING
AND FINANCING ACTIVITIES:
|
|
|
|
Purchases of
equipment under capital lease obligations
|
$
-
|
|
$
10
|
Common stock issued
on accrued bonus
|
$
32
|
|
$
-
|
SenesTech
Inc.
|
Itemized
Reconciliation Between Net Loss and Non-GAAP Adjusted
EBITDA
|
For the Three
Months Ended March 31, 2019 and 2018
|
(Unaudited)
|
|
|
|
|
|
|
(in
thousands)
|
For the Three
Months
|
|
|
|
Ended March
31,
|
|
|
|
2019
|
|
2018
|
Net Loss (As
Reported, GAAP)
|
(2,364)
|
|
(2,665)
|
|
|
|
|
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
Interest and
dividends
|
(2)
|
|
16
|
|
Stock-based
compensation
|
252
|
|
698
|
|
Gain on
investments
|
-
|
|
(13)
|
|
Change in fair value
of derivative
|
5
|
|
-
|
|
Amortization and
accretion:
|
|
|
|
|
|
Amortization of
discounts on investments
|
-
|
|
5
|
|
Depreciation
expense
|
111
|
|
117
|
|
|
Total of non-GAAP
adjustments
|
366
|
|
823
|
|
|
|
|
|
|
Adjusted EBITDA Loss
(Non-GAAP)
|
(1,998)
|
|
(1,842)
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/senestech-announces-financial-results-and-appointment-of-ken-siegel-as-chief-executive-officer-300850919.html
SOURCE SenesTech, Inc.