PHOENIX, Aug. 12, 2020 /PRNewswire/ -- SenesTech, Inc.
(NASDAQ: SNES), a developer of proprietary, next generation
technologies for managing animal pest populations through fertility
control, today announced financial and operational results for the
second quarter of fiscal year 2020, which ended on June 30, 2020.
Ken Siegel, CEO of SenesTech,
commented, "I am pleased with the steady progress SenesTech made
during the quarter in face of the severe headwinds of COVID-19.
During the second quarter, we reported revenue growth, advancement
of key pilot programs for the municipal and poultry industries,
progress in the positioning of ContraPest as a highly effective
tool when included as part of an integrated pest management
strategy, creation of our direct-to-consumer online platform, and
advancement toward making the product more user friendly and
available for use in an increasing numbers of applications."
"The second quarter marked our highest revenue quarter over the
past six quarters which excludes product donated to Washington D.C. for their assistance in
helping us conduct studies in the District. Washington D.C. has indicated it will be
deploying ContraPest on a widespread basis as their budget permits.
We likewise have made progress in additional municipalities and
poultry facilities with confirmation from program directors that
ContraPest will be added to their repertoire in the third quarter.
At the same time, our new e-commerce platform has enabled us to tap
the direct to consumer market, that although small, is showing
significant month to month growth."
"We remain focused on executing on our vision of completely
revamping SenesTech towards becoming a long-term and sustainable
commercial sales organization. We are putting in place the
necessary tools and infrastructure to accomplish this goal and are
confident that the aggressive actions we have taken over the past
12 months will continue to show in our economic performance in the
near future."
This Quarter's Highlights
- Revenue during the second quarter of 2020 was approximately
$71,000 compared to approximately
$24,000 in the second quarter of
2019.
- After concluding an initial deployment with demonstrated
success, the Company arranged to provide ContraPest to Washington DC to help the District rapidly
scale ContraPest.
- Despite challenges posed by COVID-19 restrictions, key field
deployment projects continued successfully in poultry and municipal
applications.
- On a GAAP basis, net loss for the second quarter of 2020 was
$(1.6) million, compared with a net
loss of $(2.3) million for second
quarter of 2019.
- Adjusted EBITDA loss, which is a non-GAAP measure of operating
performance, for the second quarter of 2020 was $(1.4) million versus $(2.0) million in the second quarter of
2019.
- The Company applied for and received a loan of $645,700 pursuant to the Paycheck Protection
Program ("PPP") of the CARES Act. The loan is subject to
forgiveness to the extent proceeds are used for qualifying
expenses, which the Company believes will be the case.
- In April 2020, the Company closed
a public offering of units consisting of common stock, warrants to
purchase shares of common stock and pre-funded warrants to purchase
shares of common stock, with net proceeds of $4.3 million.
- Cash balance at the end of the second quarter was $4.7 million.
As previously reported, in response to the uncertainty created
by the novel coronavirus (COVID-19), the Company implemented a
number of staff and salary reductions, operational safeguards and
greatly reduced business travel and in-office presence.
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, August 12, 2020
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/.
Replay: A teleconference replay of the call will be
available for three days at (877) 344-7529 or (412) 317-0088,
confirmation #10147160. 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 is changing the model for
pest management by targeting one of the root causes of the problem:
reproduction.
ContraPest® is an innovative technology with an approach that
targets the reproductive capabilities of both sexes in rat
populations, inducing egg loss in female rats and impairing sperm
development in males. Using a proprietary bait delivery method,
ContraPest® is dispensed in a highly palatable liquid formulation
that promotes sustained consumption by rat communities. ContraPest®
is designed, formulated and dispensed to be low hazard for handlers
and non-target species such as wildlife, livestock and pets, where
the active ingredients break down rapidly.
We believe ContraPest® will establish a new paradigm in rodent
control, resulting in a decreased reliance on lethal options. 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 continued or additional success of
deployments and success of our products; the ability to receive
forgiveness on PPP loans; the potential impact and effects of the
COVID-19 pandemic on the Company's business, results of operations
and financial performance; any measures the Company has and may
take in response to COVID-19 and any expectations the Company may
have with respect thereto; the Company's strategy and target
marketing and markets; continuing the Company's vision; expected
benefits of the Company's initiatives and continuation of those
initiatives; the continuation or expansion of the use of
ContraPest; demand for ContraPest; the Company's expectation
regarding costs, expenses and cash and continuing its cost
improvement plan; 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.
CONTACT:
Investors: Robert
Blum, Joe Dorame, Joe Diaz, Lytham Partners, LLC,
602-889-9700, senestech@lythampartners.com
Company: Tom Chesterman, Chief Financial Officer,
SenesTech, Inc.,
928-779-4143
SENESTECH,
INC.
|
CONDENSED BALANCE
SHEETS
|
(In thousands,
except shares and per share data)
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
2020
|
|
2019
|
ASSETS
|
(Unaudited)
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash
|
$
4,718
|
|
$
1,936
|
Accounts receivable
trade, net
|
45
|
|
26
|
Accounts
receivable-other
|
-
|
|
123
|
Prepaid
expenses
|
284
|
|
257
|
Inventory
|
1,135
|
|
1,180
|
Deposits
|
18
|
|
20
|
Total current
assets
|
6,200
|
|
3,542
|
|
|
|
|
Right to use
asset-operating leases
|
573
|
|
699
|
Property and
equipment, net
|
564
|
|
738
|
Total
assets
|
$
7,337
|
|
$
4,979
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
114
|
|
$
123
|
Accounts
payable
|
640
|
|
265
|
Accrued
expenses
|
399
|
|
1,193
|
Total current
liabilities
|
1,153
|
|
1,581
|
|
|
|
|
Long-term debt,
net
|
714
|
|
137
|
Operating lease
liability
|
577
|
|
694
|
Total
liabilities
|
2,444
|
|
2,412
|
|
|
|
|
Commitments and
contingencies (See note 12)
|
-
|
|
-
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock, $0.001
par value, 100,000,000 shares authorized, 3,398,832 and
1,414,671 shares issued and
outstanding at June 30, 2020 and December 31, 2019,
respectively
|
3
|
|
1
|
Additional paid-in
capital
|
105,117
|
|
98,433
|
Accumulated
deficit
|
(100,227)
|
|
(95,867)
|
Total stockholders'
equity
|
4,893
|
|
2,567
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
7,337
|
|
$
4,979
|
|
The accompanying
notes are an integral part of these financial
statements.
|
SENESTECH,
INC.
|
CONDENSED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
(In thousands,
except shares and per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months
|
|
For the Six
Months
|
|
Ended June
30,
|
|
Ended June
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Sales
|
$
71
|
|
$
24
|
|
$
108
|
|
$
43
|
Cost of
sales
|
43
|
|
21
|
|
65
|
|
33
|
Gross
profit
|
28
|
|
3
|
|
43
|
|
10
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
226
|
|
463
|
|
522
|
|
927
|
Selling, general and
administrative
|
1,427
|
|
1,831
|
|
3,472
|
|
3,735
|
Total operating
expenses
|
1,653
|
|
2,294
|
|
3,994
|
|
4,662
|
|
|
|
|
|
|
|
|
Net operating
loss
|
(1,625)
|
|
(2,291)
|
|
(3,951)
|
|
(4,652)
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
-
|
|
11
|
|
2
|
|
26
|
Interest
expense
|
(7)
|
|
(11)
|
|
(15)
|
|
(24)
|
Other income
(expense)
|
3
|
|
2
|
|
18
|
|
(3)
|
Total other income
(expense)
|
(4)
|
|
2
|
|
5
|
|
(1)
|
|
|
|
|
|
|
|
|
Net loss and
comprehensive loss
|
(1,629)
|
|
(2,289)
|
|
$
(3,946)
|
|
$
(4,653)
|
Deemed
dividend-warrant price protection-revaluation adjustment
|
-
|
|
-
|
|
414
|
|
-
|
Net loss attributable
to common shareholders
|
$
(1,629)
|
|
$
(2,289)
|
|
$
(4,360)
|
|
$
(4,653)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic and fully diluted
|
2,760,875
|
|
1,227,628
|
|
2,186,089
|
|
1,201,917
|
|
|
|
|
|
|
|
|
Net loss per common
share - basic and fully diluted
|
$
(0.59)
|
|
$
(1.86)
|
|
$
(1.99)
|
|
$
(3.87)
|
|
The accompanying
notes are an integral part of these financial
statements.
|
SenesTech
Inc.
|
Itemized
Reconciliation Between Net Loss and Non-GAAP Adjusted
EBITDA
|
For the Three and
Six Months Ended June 30, 2020 and 2019
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
For the Three
Months
|
|
For the Six
Months
|
|
|
|
Ended June
30,
|
|
Ended June
30,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net Loss (As
Reported, GAAP)
|
(1,629)
|
|
(2,289)
|
|
(3,946)
|
|
(4,653)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
Interest expense
(income), net
|
7
|
|
-
|
|
13
|
|
(2)
|
|
Stock-based
compensation
|
140
|
|
219
|
|
291
|
|
471
|
|
Reserve for future
severance payments
|
-
|
|
-
|
|
(51)
|
|
-
|
|
(Gain) loss on sale
of assets
|
(3)
|
|
2
|
|
(18)
|
|
2
|
|
Change in fair value
of derivative
|
-
|
|
(4)
|
|
-
|
|
1
|
|
Depreciation
expense
|
71
|
|
102
|
|
102
|
|
213
|
|
|
Total of non-GAAP
adjustments
|
215
|
|
319
|
|
337
|
|
685
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Loss
(Non-GAAP)
|
(1,414)
|
|
(1,970)
|
|
(3,609)
|
|
(3,968)
|
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SOURCE SenesTech, Inc.