Product Sales up 57% year-over-year
PHOENIX, Nov. 14,
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 third quarter 2022
financial results, with products sales increasing 57% compared to
the third quarter of the prior year.
"We continue to make progress in the deployment of ContraPest
across a wide variety of industry verticals with particularly
strong growth from our e-commerce platform," commented Ken Siegel, SenesTech's Chief Executive Officer.
"In just the first few weeks of the fourth quarter, we have
received new large-scale orders from municipalities, zoos and
sanctuaries, and various agribusiness locations. These deployments,
coupled with continued strong growth in our e-commerce platform,
positions us well to end 2022 on a strong trajectory."
Sales growth during the quarter was led by strong increases in
the Company's e-commerce platform, which made up more than 50% of
the third quarter product sales, continued traction within zoos and
animal sanctuaries, and the launch of the novel and patent pending
Elevate Bait System™ with ContraPest ("Elevate") as both new and
existing customers add the system to their pest management
programs. Sales, however, were impacted during the quarter by the
outbreak of the avian influenza, or bird flu, which has impacted
poultry operators across the U.S. and thus delayed expected
deployments of Elevate with certain customers during the quarter.
While the bird flu has impacted poultry farms, the Company has
transitioned to other agribusinesses and recently deployed
ContraPest in its first pork protein production facility.
The Company's e-commerce platform continues to be a key driver
of growth for SenesTech, with 173% year-over-year growth in product
sales through the platform. The e-commerce growth is being driven
by its marketing initiatives, including the award-winning
"Operation Rat Race" campaign, which is driving consistent
increases in traffic, as well as increased website
functionality.
Elevate, the first product of its kind specifically designed to
address rat problems in above-ground locations, launched late in
the second quarter and is ideally suited for the agribusiness
segment, where third quarter sales increased 27% compared to the
third quarter of the prior year. The Company believes Elevate will
help key agricultural customers better meet their needs of
addressing roof rats that reside above ground, especially in the
rafters of barns, granaries and storage and manufacturing
facilities. 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-ounce bottles of ContraPest, reducing
servicing time and cost.
Zoos and sanctuaries continued to be a strong contributor for
ContraPest with sales growth increasing 32% compared to the third
quarter of the prior year. Currently, ContraPest has been deployed
in more than 122 such locations, including two of the top zoos in
the U.S., with another "top ten" zoo expected in the fourth quarter
of 2022.
Orkin recently released their Top 50 Rattiest Cities List,
naming the cities with the highest number of new rodent treatments
performed in the U.S. This list provides SenesTech with a fresh
opportunity to market to municipalities named among the rattiest
cities in the U.S. While municipal deployments have been sporadic
during the year, the county of Santa
Clara, California recently finished its independent study on
the use of ContraPest with positive results and planned expansion
of deployments in the coming quarters. As part of this, surrounding
cities, including San Jose in the
Bay Area, are expected to deploy ContraPest in the fourth quarter.
Overall, California continues to
lead geographically with nearly a third of all product sales
occurring in the state driven by tailwinds from the recently
implemented Ecosystems Protection Act of 2021, which bans the use
of commonly used second-generation anticoagulant poisons under many
circumstances.
The Company also separately announced the appointment of
Joel Fruendt as Chief Executive
Officer, replacing Ken Siegel, who
will remain as an executive director on the board of directors and
is expected to retire at the end of the year. Mr. Fruendt and Mr.
Siegel will address interested parties on a conference call to
discuss the quarter's results and the transition, information
below.
"I believe that SenesTech has developed an effective,
sustainable, and earth-friendly tool for integrated pest management
that focuses on fertility control as a method to reduce overall
rodent populations. The industry is in need of an IPM tool which
reduces reliance on lethal chemicals and offers a sustainable
solution, and ContraPest is the answer," said Mr. Fruendt.
Third Quarter 2022 Highlights
- Revenue during Q3 2022 was approximately $250,000 compared to approximately $183,000 in Q3 2021, an increase of 36%. Product
sales, which exclude grant revenue, were up 57%.
- Gross profit during Q3 2022 was approximately $122,000 or 52% of total revenue, compared to
approximately $77,000, or 48% of
total revenue, in Q3 2021.
- Net loss during Q3 2022 was $(2.6)
million, compared with a net loss of $(2.3) million for Q3 2021.
- Adjusted EBITDA loss, which is a non-GAAP measure of operating
performance, for Q3 2022 was $(2.5)
million compared to $(2.0)
million in Q3 2021.
- Cash at the end of September 2022
was approximately $2.8 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: Monday,
November 14, 2022, at 11:00 am
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 9489792. 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/rV0emGvy2oN.
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 belief that we continue to
make progress in the deployment of ContraPest across a wide variety
of industry verticals with particularly strong growth from our
e-commerce platform; our belief that our deployments of ContraPest,
coupled with continued strong growth in our e-commerce platform,
positions us well to end 2022 on a strong trajectory; our belief
that new and existing customers will add Elevate to their pest
management programs; our belief that our e-commerce platform
continues to be a key driver of growth for us; our belief that
Elevate is ideally suited for the agribusiness segment; our belief
that Elevate will help key agricultural customers better meet their
needs of addressing roof rats that reside above ground, especially
in the rafters of barns, granaries and storage and manufacturing
facilities; our belief that the Elevate system is revolutionary
within the pest control industry; our belief that Santa Clara, California has plans of expansion
of ContraPest deployments in the coming quarters; our belief that
surrounding cities, including San
Jose in the Bay Area, are expected to deploy ContraPest in
the fourth quarter; our belief that tailwinds from the recently
implemented Ecosystems Protection Act of 2021 has driven product
sales in California; and Mr.
Freundt's belief that SenesTech has developed an effective,
sustainable, and earth-friendly tool for integrated pest management
that focuses on fertility control as a method to reduce overall
rodent populations and that the industry is in need of an IPM tool
which reduces reliance on lethal chemicals and offers a sustainable
solution, and ContraPest is the answer. 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 and our
Registration Statement on Form S-1, filed with the SEC on
October 24, 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, 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.
|
BALANCE
SHEETS
|
(In thousands,
except shares and per share data)
|
|
|
|
September
30,
|
|
December 31,
|
|
2022
|
|
2021
|
ASSETS
|
(Unaudited)
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash
|
$
2,792
|
|
$
9,326
|
Accounts receivable
trade, net
|
89
|
|
77
|
Prepaid
expenses
|
404
|
|
230
|
Inventory
|
952
|
|
1,001
|
Deposits
|
22
|
|
22
|
Total current
assets
|
4,259
|
|
10,656
|
|
|
|
|
Right to use
asset-operating leases
|
389
|
|
511
|
Property and equipment,
net
|
322
|
|
334
|
Total assets
|
$
4,970
|
|
$
11,501
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
-
|
|
$
32
|
Accounts
payable
|
476
|
|
333
|
Accrued
expenses
|
987
|
|
578
|
Preferred stock, $0.001
par value, 20,000 shares authorized, 12,213 and 0
|
|
|
|
shares issued and
outstanding at September 30, 2022 and December 31, 2021,
respectively
|
-
|
|
-
|
Deferred
Revenue
|
48
|
|
-
|
Total current
liabilities
|
1,511
|
|
943
|
|
|
|
|
Operating lease
liability
|
402
|
|
523
|
Total
liabilities
|
1,913
|
|
1,466
|
|
|
|
|
Commitments and
contingencies (See note 12)
|
-
|
|
-
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock, $0.001
par value, 100,000,000 shares authorized, 12,212,950 and
12,207,283
|
|
|
|
shares issued and
outstanding at September 30, 2022 and December 31, 2021,
respectively
|
12
|
|
12
|
Additional paid-in
capital
|
123,100
|
|
122,531
|
Accumulated
deficit
|
(120,055)
|
|
(112,508)
|
Total stockholders'
equity
|
3,057
|
|
10,035
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
4,970
|
|
$
11,501
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial
statements.
|
SENESTECH,
INC.
|
STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
|
(In thousands,
except shares and per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months
|
|
For the Nine
Months
|
|
Ended September
30,
|
|
Ended September
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
Grant
revenue
|
-
|
|
24
|
|
-
|
|
24
|
Sales
|
$
250
|
|
$
159
|
|
$
722
|
|
$
407
|
|
|
|
|
|
|
|
|
Cost of
sales
|
128
|
|
106
|
|
374
|
|
275
|
Gross
profit
|
122
|
|
77
|
|
348
|
|
156
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
452
|
|
514
|
|
1,399
|
|
1,424
|
Selling, general and
administrative
|
2,289
|
|
1,816
|
|
6,473
|
|
5,173
|
Total operating
expenses
|
2,741
|
|
2,330
|
|
7,872
|
|
6,597
|
|
|
|
|
|
|
|
|
Net operating
loss
|
(2,619)
|
|
(2,253)
|
|
(7,524)
|
|
(6,441)
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
1
|
|
2
|
|
4
|
|
5
|
Interest
expense
|
-
|
|
(2)
|
|
(1)
|
|
(10)
|
Payroll Protection
Program loan forgiveness
|
-
|
|
-
|
|
-
|
|
650
|
Other
income
|
(28)
|
|
-
|
|
(26)
|
|
22
|
Total other
income
|
(27)
|
|
-
|
|
(23)
|
|
667
|
|
|
|
|
|
|
|
|
Net loss and
comprehensive loss
|
$
(2,646)
|
|
$
(2,253)
|
|
$
(7,547)
|
|
$
(5,774)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic and fully diluted
|
12,212,950
|
|
12,190,257
|
|
12,211,561
|
|
10,850,197
|
|
|
|
|
|
|
|
|
Net loss per common
share - basic and fully diluted
|
$
(0.22)
|
|
$
(0.18)
|
|
$
(0.62)
|
|
$
(0.53)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Nine Months Ended September 30, 2022 and 2021
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
For the Three
Months
|
|
For the Nine
Months
|
|
|
|
Ended September
30,
|
|
Ended September
30,
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net Loss (As Reported,
GAAP)
|
$
(2,646)
|
|
$
(2,253)
|
|
$
(7,547)
|
|
$
(5,774)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
Interest expense
(income), net
|
(1)
|
|
-
|
|
(3)
|
|
5
|
|
Stock-based
compensation
|
139
|
|
214
|
|
570
|
|
550
|
|
Paycheck Protection
Program loan forgiveness
|
-
|
|
-
|
|
-
|
|
(650)
|
|
Reserve for future
severance payments
|
-
|
|
-
|
|
-
|
|
(39)
|
|
(Gain) loss on sales of
assets
|
(28)
|
|
-
|
|
(26)
|
|
(1)
|
|
Depreciation
expense
|
35
|
|
78
|
|
148
|
|
229
|
|
|
Total of non-GAAP
adjustments
|
145
|
|
292
|
|
689
|
|
94
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Loss
(Non-GAAP)
|
$
(2,501)
|
|
$
(1,961)
|
|
$
(6,858)
|
|
$
(5,680)
|
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SOURCE SenesTech, Inc.