SenesTech Announces 2022 Financial Results
SenesTech, Inc. (NASDAQ: SNES) reported strong financial results for 2022, with product sales exceeding $1 million and an overall increase of 77% year-on-year. Revenue reached $1.0 million, a 70% rise from 2021, while gross profit was $464,000. Despite these gains, the company posted a net loss of $9.7 million. The fourth quarter saw revenue of $297,000, up 54%, with product sales increasing 76%. Significant growth was driven by the e-commerce platform and contracts with zoos and government agencies. The recent launch of the Elevate Bait System™ is expected to create further opportunities, particularly within agricultural markets.
- Product sales increased by 77%, exceeding $1 million in 2022.
- Revenue growth of 70% year-on-year, totaling $1.0 million.
- Strong performance in e-commerce, accounting for 46% of sales.
- Significant contracts secured with zoos and government agencies.
- Approval of ContraPest for General Use in New York, expanding market access.
- Net loss increased to $9.7 million in 2022 from $8.3 million in 2021.
- Gross profit margin decreased from 52% in Q4 2021 to 39% in Q4 2022.
Product Sales Break
Sales Increase
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
"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
The Company is also achieving initial success, having secured significant contracts with government agencies, most recently with the
"
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
"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
Recently,
"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
In
"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
Year End 2022 Highlights
- Revenue during 2022 was
compared to$1.0 million in 2021, an increase of$600,000 70% . Product sales, which exclude grant revenue, were up77% . - Gross profit during 2022 was
or$464,000 46% of total revenue, compared to , or$244,000 42% of total revenue (excluding grant revenue), in 2021. - Net loss during 2022 was
, compared with a net loss of$9.7 million for 2021.$8.3 million - Adjusted EBITDA loss, which is a non-GAAP measure of operating performance, for 2022 was
compared to$8.5 million in 2021.$7.8 million - Cash at the end of
December 2022 was .$4.8 million
Q4 2022 Highlights
- Revenue during Q4 2022 was
compared to$297,000 in Q4 2021, an increase of$193,000 54% . Product sales, which exclude grant revenue, were up76% . - Gross profit during Q4 2022 was
or$116,000 39% of total revenue, compared to , or$88,000 52% of total revenue, in Q4 2021. - Net loss during Q4 2022 was
, compared with a net loss of$2.1 million for Q4 2021.$2.5 million - Adjusted EBITDA loss, which is a non-GAAP measure of operating performance, for Q4 2022 was
compared to$1.6 million in Q4 2021.$2.2 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:
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
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
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
CONTACT:
Investors: Robert Blum, Lytham Partners, LLC, 602-889-9700, senestech@lythampartners.com
Company: Tom Chesterman, Chief Financial Officer,
BALANCE SHEETS (In thousands, except share and per share data) (Unaudited) | |||
As of | |||
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 |
STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (Unaudited) | ||||
Years Ended | ||||
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) |
Itemized Reconciliation Between (In thousands) (Unaudited) | ||||
Years Ended | ||||
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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