Sales up 122%
Company Launches New Elevate Bait System™ with
ContraPest®
PHOENIX, May 12, 2022
/PRNewswire/ -- SenesTech, Inc. (NASDAQ: SNES, "SenesTech" or the
"Company"), (www.senestech.com) the rodent fertility control
experts and inventors of the only EPA registered contraceptive for
male and female rats, ContraPest®, today announced
record first quarter 2022 product sales, more than double compared
to last year's first quarter. The Company continues to see strong
growth from its recent marketing initiatives, including its
award-winning "Operation Rat Race" campaign which has driven an
increase in e-commerce sales, as well as accelerating close rates
through its field sales team. Additionally, the Company has
launched the novel and patent pending Elevate Bait System™ with
ContraPest ("Elevate"), the first product of its kind specifically
designed to address rat problems in above-ground locations.
In addition to SenesTech's sales and marketing strategy to drive
increased awareness and recognition of ContraPest, the Company
continues to experience improving market conditions from favorable
legislative changes, growing environmental sensitivity, and an
emerging preference for "earth-friendly" choices. The sequential
revenue growth during the first quarter represents eight out of the
last nine quarters having double or 2X revenue growth since Chief
Executive Officer Ken Siegel joined
the company in 2019 to launch commercialization efforts.
Following the EPAs approval of Elevate in March 2022, which was received ahead of internal
expectations and allows for broad deployment options, the Company
began its pre-launch marketing campaign. The product is
available for sale with initial deliveries beginning next week to
key agricultural and commercial accounts in most states. These
customers have requested a system that can better meet their needs
of addressing roof rats that reside above ground, especially in the
rafters of barns, granaries and storage and manufacturing
facilities. In preparation for the Company's EPA submission
for Elevate, SenesTech conducted extensive trials to prove the
effectiveness of the system, providing potential customers the
necessary data to make informed purchasing decisions, which should
help to accelerate adoption of the system. The Elevate
system, with its suspended bait station is revolutionary within the
pest control industry, which typically utilizes traditional bait
boxes to deliver pesticides and other products. The system is
designed to permit easy drop in and replacement of new 8 oz bottles
of ContraPest, reducing servicing time and cost.
"I am pleased with yet another quarter of record sales, more
than doubling from the year ago period," said Ken Siegel, SenesTech's Chief Executive Officer.
"Our commercial sales organization is doing a great job driving
product awareness, lead generation and close rates, but equally
important, we are driving down our customer acquisition costs and
increasing our lifetime customer values. I believe the market is
increasingly recognizing the benefits of ContraPest as an effective
tool against rat infestation."
Mr. Siegel continued, "In addition to continued adoption of our
existing ContraPest product, I believe the introduction of Elevate
will be a defining moment where innovation enables us to accelerate
our penetration into a number of key markets, particularly
agriculture. Customers in this market segment have repeatedly asked
us to find a solution that allows us to target roof rats where they
live, eat and breed which most times is in the rafters of their
various buildings and structures. As the only bait station
specifically designed to target roof rats in an elevated location,
Elevate has the capability to be a game-changer for us in this
market."
"With growing market awareness and adoption for our solution
highlighted by record quarterly sales, coupled with the
introduction of the Elevate system, we are off to a strong start in
fiscal 2022. I believe ContraPest is the right product for pest
control with significant growth potential based on its efficacy,
environmental and regulatory requirements, as well as social
trends. While we look forward to the continuation of the recent
trends in the quarters to come, we have in place the necessary
elements to accelerate growth even more," Siegel concluded.
First Quarter 2022
Highlights
- Revenue during Q1 2022 was approximately $195,000 compared to approximately $88,000 in Q1 2021, an increase of 122%.
- Gross profit during Q1 2022 was approximately $90,000 or 46% of total revenue, compared to
approximately $38,000, or 43% of
total revenue in Q1 2021.
- Net loss during Q1 2022 was $(2.3)
million, compared with a net loss of $(1.8) million for Q1 2021.
- Adjusted EBITDA loss, which is a non-GAAP measure of operating
performance, for Q1 2022 was $(2.0)
million compared to $(1.6)
million in Q1 2021.
- Cash at the end of March 2022 was
approximately $7.2 million.
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: Thursday, May
12, 2022, 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/.
Replay: A teleconference replay of the call will be
available for seven days at (877) 344-7529 or (412) 317-0088,
replay access code 6656470. 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
We are "The Pest Control Difference" for the 21st
century. We are rodent fertility control specialists fueled by our
passion to create a healthy environment by virtually eliminating
rodent pest populations. We keep an inescapable truth in mind. Two
rats and their descendants can be responsible for the birth of up
to 15,000 pups after a year. We invented ContraPest®,
the only U.S. EPA registered contraceptive for male and female
rats. ContraPest® fits seamlessly into all integrated
pest management programs, greatly improving the overall goal of
effective rat management. We strive for clean cities, efficient
businesses and happy households – with a product that was designed
to be effective and sustainable without killing rats. At
SenesTech, we don't just eliminate rats. We make a better
world.
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 of a continued trend for municipalities specifying the
use of fertility control in their requests for proposal; our belief
the introduction of Elevate will be a defining moment where
innovation enables us to accelerate our penetration into a number
of key markets, particularly agriculture; our belief that
deployments to new customers, such as wildlife preserves and
correctional facilities, are expected to drive continued growth in
the coming years; our belief that our enactment of package and
promotional discounts, to accelerate initial adoption and
first-time purchase will drive longer term purchase renewals as the
benefits of ContraPest are recognized by customers; our belief that
ContraPest is the right product for pest control with significant
growth potential based on efficacy and environmental, regulatory,
and social trends; our belief that 2021 provided a strong
foundation for future growth; our drivers for accelerating revenue
growth; our expectation as we look to 2022 and beyond that we will
build on the foundation and momentum created in 2021, with two
important additional drivers to watch: one, Elevate is expected to
further accelerate our penetration into agricultural opportunities,
as it provides an additional, often requested, method of delivery
for ContraPest; and two, we are seeing enhanced interest from major
PMPs to begin utilizing ContraPest as part of an integrated pest
management program; and our belief that we are well positioned to
continue to expand the strong track record of growth 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 impacts and
implications of the COVID-19 pandemic, the successful
commercialization of our products, market acceptance of our
products, 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, 2021. 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.
SENESTECH,
INC.
|
BALANCE
SHEETS
|
(In thousands,
except shares and per share data)
|
|
|
|
March 31,
|
|
December 31,
|
|
2022
|
|
2021
|
ASSETS
|
(Unaudited)
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash
|
$
7,215
|
|
$
9,326
|
Accounts receivable
trade, net
|
56
|
|
77
|
Prepaid
expenses
|
259
|
|
230
|
Inventory
|
947
|
|
1,001
|
Deposits
|
22
|
|
22
|
Total current
assets
|
8,499
|
|
10,656
|
|
|
|
|
Right to use
asset-operating leases
|
471
|
|
511
|
Property and equipment,
net
|
334
|
|
334
|
Total assets
|
$
9,304
|
|
$
11,501
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
16
|
|
$
32
|
Accounts
payable
|
244
|
|
333
|
Accrued
expenses
|
634
|
|
578
|
Total current
liabilities
|
894
|
|
943
|
|
|
|
|
Operating lease
liability
|
483
|
|
523
|
Total
liabilities
|
1,377
|
|
1,466
|
|
|
|
|
Commitments and
contingencies (See note 12)
|
-
|
|
-
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock, $0.001
par value, 100,000,000 shares authorized, 12,212,283 and
12,207,283
|
|
|
|
shares issued and
outstanding at March 31, 2022 and December 31, 2021,
respectively
|
12
|
|
12
|
Additional paid-in
capital
|
122,755
|
|
122,531
|
Accumulated
deficit
|
(114,840)
|
|
(112,508)
|
Total stockholders'
equity
|
7,927
|
|
10,035
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
9,304
|
|
$
11,501
|
|
|
|
|
|
|
|
|
SENESTECH,
INC.
|
STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
|
(In thousands,
except shares and per share data)
|
(Unaudited)
|
|
|
|
|
|
For the Three
Months
|
|
Ended March
31,
|
|
2022
|
|
2021
|
|
|
|
|
Sales
|
$
195
|
|
$
88
|
|
|
|
|
Cost of
sales
|
105
|
|
50
|
Gross
profit
|
90
|
|
38
|
|
|
|
|
Operating
expenses:
|
|
|
|
Research and
development
|
516
|
|
455
|
Selling, general and
administrative
|
1,907
|
|
1,422
|
Total operating
expenses
|
2,423
|
|
1,877
|
|
|
|
|
Net operating
loss
|
(2,333)
|
|
(1,839)
|
|
|
|
|
Other income
(expense):
|
|
|
|
Interest
income
|
2
|
|
2
|
Interest
expense
|
(1)
|
|
(5)
|
Other
income
|
-
|
|
21
|
Total other
income
|
1
|
|
18
|
|
|
|
|
Net loss and
comprehensive loss
|
$ (2,332)
|
|
$
(1,821)
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic and fully diluted
|
12,209,005
|
|
8,137,038
|
|
|
|
|
Net loss per common
share - basic and fully diluted
|
$
(0.19)
|
|
$ (0.22)
|
SENESTECH
INC.
|
ITEMIZED
RECONCILIATION BETWEEN NET LOSS AND NON-GAAP ADJUSTED
EBITDA
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
For the Three
Months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ended March
31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss (As Reported,
GAAP)
|
|
$
(2,332)
|
|
$
(1,821)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (income)
expense, net
|
|
(1)
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
224
|
|
155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
66
|
|
73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total of non-GAAP
adjustments
|
|
289
|
|
231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Loss
(Non-GAAP)
|
|
$
(2,043)
|
|
$
(1,590)
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE SenesTech, Inc.