Product Sales Break $1
Million
Sales Increase 77% for the Year
PHOENIX, March 16,
2023 /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 2022 financial results, with products sales
increasing 77% compared to the prior year.
Joel Fruendt, SenesTech's new
Chief Executive Officer, commented, "Breaking $1 million is a tremendous milestone. This was
fueled in part by considerable progress during 2022 expanding
ContraPest into key market verticals, while also launching novel
new products such as the Elevate Bait System™ with ContraPest
("Elevate") to address significant new market opportunities. My
goal for 2023 is to build off this improved base, to execute key
initiatives to drive revenue growth, and to improve our operating
efficiencies while continuously developing new product options that
fit our customers' needs. Following my appointment in mid-November,
we have already taken quick and decisive steps to achieve these
goals."
Sales growth during the year and the fourth quarter was led by
strong performance in the Company's e-commerce platform, which made
up approximately 46% of 2022 product sales, as well as continued
traction with zoos and animal sanctuaries and pest management
professionals, which increased more than 100% during the fourth
quarter. In December 2022, the
Company announced that the City of Los
Angeles had ordered and has now deployed ContraPest broadly
at the Los Angeles Zoo as part of their Integrated Pest Management
or "IPM" program, with a deployment plan that is expected to exceed
250 bait stations. Overall, 22 zoos, including 2 of the top 10 in
the United States, are now using
ContraPest.
"Further, we expect two more of the top 10 zoos to order during
the first quarter of 2023. Besides being a target market in their
own right, zoos and sanctuaries are the ultimate influencers in all
things animal, so this continues to be a focus segment for us,"
said Nicole Williams, SenesTech's
Chief Revenue Officer.
The Company is also achieving initial success, having secured
significant contracts with government agencies, most recently with
the County of Santa Clara. After
an initial deployment, the County of Santa Clara announced that it intended to
expand deployment broadly throughout the county – most recently to
Los Gatos. 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 using commonly used
second-generation anticoagulant poisons under many
circumstances.
"Santa Clara County is the
latest of the announced deployments in the government market, a
vertical that we expect to grow in 2023," continued Ms.
Williams.
Looking forward, the recent launch of the novel and patent
pending Elevate is expected to drive growth in key market
verticals, including with agricultural customers, to better meet
their needs of addressing roof rats that reside above ground,
especially in the rafters of barns, granaries, and storage and
manufacturing facilities. Sales during the fourth quarter in
poultry facilities continued to be hindered by the avian influenza
outbreak, or bird flu, which has impacted poultry operators across
the United States.
"Elevate is unique in the industry in that it targets roof rats,
a prevalent pest in the agricultural industry. As the bird flu
abates, and as we continue to expand our sales force and focus on
agricultural opportunities, we expect Elevate to drive accelerated
growth in 2023," continued Ms. Williams.
Recently, SenesTech has announced a series of improvements
focused on the expansion and restructuring of the sales
organization and commercialization efforts to further build upon
the record revenue during the fourth quarter and fiscal year 2022.
In addition to the appointment of regulated vector and pest control
industry veteran Joel Fruendt as CEO
in November 2022, the Company also
announced the appointment of Nicole
Williams as Chief Revenue Officer and the expansion of its
field sales organization. Ms. Williams was previously Chief
Strategy Officer.
"One of my first key steps to drive revenue growth in 2023 has
been the re-deployment and re-focusing of the Company's direct
sales efforts to enhance our customer acquisition capabilities,
while also putting sales reps closer to the customers to benefit
from the surge in acceptance of ContraPest during the past year. We
have expanded our field sales organization to seven reps, each
deployed by geography, with leadership in both the Eastern and
Western half of the United States.
We are also enhancing the customer experience by increasing product
options, awareness and education. For example, we have just
introduced a second tank size to meet customer needs. We are
focused on taking the foundation built in 2022 and accelerating
beyond the current growth rates," added Mr. Fruendt.
In February 2023, the New York State Department of Environmental
Conservation approved ContraPest for General Use, removing
"Restricted Use Pesticide" (RUP) from the label of ContraPest. This
expands the market for ContraPest dramatically in New York, as it no longer requires application
by specially licensed pest control companies and eliminates
restrictive handling and paperwork. New York now becomes the
49th state to remove the RUP label from ContraPest and joins
Washington D.C. and major U.S.
Territories using ContraPest under the General Use label,
validating years of effective and incident-free experience.
"Every day, it seems, there is more validation of ContraPest as
effective, sustainable, and easy to use. Academic studies, field
studies, and customer feedback all agree: successful pest
management requires population control, and ContraPest works to
control pest populations, making IPM more effective," concluded Mr.
Fruendt.
Year End 2022 Highlights
- Revenue during 2022 was $1.0
million compared to $600,000
in 2021, an increase of 70%. Product sales, which exclude grant
revenue, were up 77%.
- Gross profit during 2022 was $464,000 or 46% of total revenue, compared to
$244,000, or 42% of total revenue
(excluding grant revenue), in 2021.
- Net loss during 2022 was $9.7
million, compared with a net loss of $8.3 million for 2021.
- Adjusted EBITDA loss, which is a non-GAAP measure of operating
performance, for 2022 was $8.5
million compared to $7.8
million in 2021.
- Cash at the end of December 2022
was $4.8 million.
Q4 2022 Highlights
- Revenue during Q4 2022 was $297,000 compared to $193,000 in Q4 2021, an increase of 54%. Product
sales, which exclude grant revenue, were up 76%.
- Gross profit during Q4 2022 was $116,000 or 39% of total revenue, compared to
$88,000, or 52% of total revenue, in
Q4 2021.
- Net loss during Q4 2022 was $2.1
million, compared with a net loss of $2.5 million for Q4 2021.
- Adjusted EBITDA loss, which is a non-GAAP measure of operating
performance, for Q4 2022 was $1.6
million compared to $2.2
million in Q4 2021.
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,
March 16, 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/.
Replay: A teleconference replay of the call will be
available for seven days at (877) 344-7529 or (412) 317-0088,
replay access code 2860260. 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/5v2Mg0EOqmV.
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; 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, 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)
|
|
|
As of December
31,
|
|
2022
|
|
2021
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
4,775
|
|
$
9,326
|
Accounts receivable,
net
|
113
|
|
77
|
Prepaid
expenses
|
378
|
|
230
|
Inventory,
net
|
853
|
|
1,001
|
Total current
assets
|
6,119
|
|
10,634
|
Right to use assets,
operating leases
|
347
|
|
511
|
Property and equipment,
net
|
294
|
|
334
|
Other noncurrent
assets
|
22
|
|
22
|
Total
assets
|
$
6,782
|
|
$
11,501
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
—
|
|
$
32
|
Accounts
payable
|
540
|
|
333
|
Accrued
expenses
|
560
|
|
578
|
Current portion of
operating lease liability
|
180
|
|
164
|
Deferred
revenue
|
44
|
|
—
|
Total current
liabilities
|
1,324
|
|
1,107
|
Operating lease
liability, less current portion
|
179
|
|
359
|
Total
liabilities
|
1,503
|
|
1,466
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
1
|
|
1
|
Additional paid-in
capital
|
127,481
|
|
122,542
|
Accumulated
deficit
|
(122,203)
|
|
(112,508)
|
Total stockholders'
equity
|
5,279
|
|
10,035
|
Total liabilities and
stockholders' equity
|
$
6,782
|
|
$
11,501
|
SENESTECH,
INC.
STATEMENTS OF
OPERATIONS
(In thousands, except
share and per share data)
(Unaudited)
|
|
|
|
Years Ended December
31,
|
|
|
2022
|
|
2021
|
Revenues:
|
|
|
|
|
Product sales,
net
|
|
$
1,019
|
|
$
576
|
Grant
revenue
|
|
—
|
|
24
|
Total
revenues
|
|
1,019
|
|
600
|
Cost of
sales
|
|
555
|
|
356
|
Gross
profit
|
|
464
|
|
244
|
Operating
expenses:
|
|
|
|
|
Research and
development
|
|
1,859
|
|
1,954
|
Selling, general and
administrative
|
|
8,279
|
|
7,224
|
Total operating
expenses
|
|
10,138
|
|
9,178
|
Loss from
operations
|
|
(9,674)
|
|
(8,934)
|
Other income
(expense):
|
|
|
|
|
Interest
income
|
|
7
|
|
4
|
Interest
expense
|
|
(2)
|
|
(11)
|
Payroll Protection
Program loan forgiveness
|
|
—
|
|
651
|
Miscellaneous income
(expense)
|
|
(26)
|
|
22
|
Other income
(expense), net
|
|
(21)
|
|
666
|
Net loss
|
|
$
(9,695)
|
|
$
(8,268)
|
Weighted average shares
outstanding - basic and diluted
|
|
625,401
|
|
559,591
|
Loss per share - basic
and diluted
|
|
$
(15.50)
|
|
$
(14.77)
|
SenesTech
Inc.
Itemized
Reconciliation Between Net Loss and Adjusted EBITDA
(non-GAAP)
(In
thousands)
(Unaudited)
|
|
|
|
Years Ended December
31,
|
|
|
2022
|
|
2021
|
Net loss (as reported,
GAAP)
|
|
$
(9,695)
|
|
$
(8,268)
|
Non-GAAP
adjustments:
|
|
|
|
|
Interest (income)
expense, net
|
|
(5)
|
|
7
|
Stock-based
compensation expense
|
|
711
|
|
765
|
Payroll Protection
Program loan forgiveness
|
|
—
|
|
(651)
|
Reserve for future
severance payments
|
|
311
|
|
—
|
Loss on sale of
assets
|
|
28
|
|
—
|
Depreciation
expense
|
|
183
|
|
303
|
Total non-GAAP
adjustments
|
|
1,228
|
|
424
|
Adjusted EBITDA loss
(non-GAAP)
|
|
$
(8,467)
|
|
$
(7,844)
|
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SOURCE SenesTech, Inc.