SenesTech Announces 2023 Financial Results

by

in

YTD 2024 total revenue up more than 80% compared to YTD 2023 driven by orders for Evolve™ soft bait

PHOENIX, Feb. 21, 2024 /PRNewswire/ — SenesTech, Inc. (NASDAQ:SNES, “, SenesTech”, or the “, Company”, )), the rodent fertility control experts and inventors of the only EPA-registered contraceptive for male and female rats, ContraPest®, today announced 2023 financial results.

“During 2023, we executed on a number of key initiatives that will be the foundation to drive growth into the future, most notably was the development of Evolve, our all-new soft bait product that was launched on a limited basis at the end of 2023,” commented Joel Fruendt, President and CEO of SenesTech. “Since the full launch of Evolve in January 2024, we have seen a significant uptick in interest and orders from a wide range of sales channels and geographies. For instance, we were recently approved as a vendor for a major nationwide hardware retailer; we have signed distribution and stocking agreements for grain management and open field agricultural applications; and we have expanded our geographical reach outside the United States, including Hong Kong, Macau, the United Arab Emirates, Singapore, Australia, New Zealand and The Netherlands.”

Year-to-date 2024 total revenue (through mid-February 2024) is up more than 80% compared to the same period in 2023, driven by orders for Evolve, which represented more than 50% of total revenue and included international revenue for the first time in the Company’s history.

“It is increasingly clear that Evolve is a game changing product that will be a key driver to our revenue growth in 2024,” Fruendt continued.

Looking back at 2023, revenue was $1.2 million compared to $1.0 million in 2022, an increase of 17%. Growth during the year was driven primarily by agribusiness and new distribution agreements and was slowed temporarily in the fourth quarter due to the allocation of resources required for the launch of Evolve. Revenue rapidly increased once full launch happened in January 2024.

Following the successful launch of Evolve for rats, the Company is working on an enhanced form factor and dosing of a soft bait contraceptive product for mice. The product is expected to utilize the same active ingredient with its documented record of efficacy and be designated under the EPA’s minimum risk rules.

“A product for the control of mice is a logical extension of our rodent fertility control solutions,” Fruendt continued. “Our product development team is hard at work with a goal to have a product on the market by mid-2024.”

Tom Chesterman, CFO of SenesTech, added, “We continue to focus on driving operational efficiencies across the organization. Over the course of 2023, we improved operating expenses by nearly $2.0 million compared with 2022. We also improved the balance sheet through a $5.0 million public offering of common stock and warrants in November 2023, of which $1.0 million in warrants have been exercised so far. We are optimistic that as we continue to execute our business plan, the remaining warrants will be a source of cash over the coming quarters.”

Year End 2023 Highlights

Revenue during 2023 was $1.2 million compared to $1.0 million in 2022, an increase of 17%.
 
Gross profit during 2023 was $539,000 compared to $464,000 in 2022, with gross profit margin at 45.2% in 2023 compared to 45.5% in 2022. Gross profit margin for 2023 excluding the impact from new product introductions was 49.3%.
 
Net loss during 2023 was $7.7 million, compared to a net loss of $9.7 million for 2022, an improvement of $1.9 million.
 
Adjusted EBITDA loss, which is a non-GAAP measure of operating performance, for 2023 was $6.9 million compared to $8.5 million in 2022, an improvement of $1.5 million.
 
Cash at the end of December 2023 was $5.4 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: Wednesday, February 21, 2024, 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 https://app.webinar.net/KODd6Vn6ApQ or 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 3232725. 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 committed to improving the health of the world by humanely managing animal pest populations through fertility control. We are experts in fertility control to manage animal pest populations. We invented ContraPest, the only U.S. EPA-registered contraceptive for male and female rats, and Evolve, an EPA-designated minimum-risk contraceptive currently offered for rats. ContraPest and Evolve fit seamlessly into all integrated pest management programs, significantly improving the overall goal of effective pest management. We strive for clean cities, efficient businesses and happy households – with a product designed to be humane, effective and sustainable.

For more information visit https://senestech.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 our execution on a number of key initiatives during 2023, will be the foundation to drive growth into the future, most notably was the development of Evolve, our …

Full story available on Benzinga.com


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *