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SenesTech(SNES) - 2024 Q3 - Quarterly Results
SNESSenesTech(SNES)2024-11-12 21:06

Revenue Growth - Revenues reached 1.4millioninthefirstninemonthsof2024,a511.4 million in the first nine months of 2024, a 51% increase compared to the same period in 2023[1] - Revenues for the three months ended September 30, 2024, increased to 482,000, up 34% from 360,000inthesameperiodof2023[19]−E−commercesalesincreasedapproximately20360,000 in the same period of 2023[19] - E-commerce sales increased approximately 20% in Q3 2024 compared to Q3 2023, representing about 35% of year-to-date 2024 sales[2] Gross Margin and Profit - Gross margin improved to 65% in Q3 2024 from 49% in Q3 2023, with gross profit dollars increasing by 79%[1] - Gross profit for the nine months ended September 30, 2024, was 699,000, representing a 70% increase compared to 410,000forthesameperiodin2023[19]OperatingExpenses−Operatingexpensesdecreasedby12410,000 for the same period in 2023[19] Operating Expenses - Operating expenses decreased by 12% in Q3 2024 compared to Q3 2023, reflecting tight expense control[1] - Selling, general and administrative expenses decreased to 1,411,000 for the three months ended September 30, 2024, down 19% from 1,748,000inthesameperiodof2023[19]−TotaloperatingexpensesfortheninemonthsendedSeptember30,2024,were1,748,000 in the same period of 2023[19] - Total operating expenses for the nine months ended September 30, 2024, were 5,691,000, down 11% from 6,406,000inthesameperiodof2023[19]ProductPerformance−EvolveRatproductcontributedapproximately526,406,000 in the same period of 2023[19] Product Performance - Evolve Rat product contributed approximately 52% of Q3 2024 revenue, with sales increasing by 11% compared to Q2 2024[2] - Evolve Mouse, launched in May 2024, contributed 17% of Q3 2024 revenue[2] - New product packaging launched for Evolve uses 87% less plastic than traditional pails, enhancing gross margins[3] Financial Loss and Adjusted EBITDA - The net loss for the three months ended September 30, 2024, was 1,513,000, a reduction of 22% compared to a net loss of 1,947,000inthesameperiodof2023[19]−AdjustedEBITDAlossforthethreemonthsendedSeptember30,2024,was1,947,000 in the same period of 2023[19] - Adjusted EBITDA loss for the three months ended September 30, 2024, was 1,418,000, an improvement from a loss of 1,787,000inthesameperiodof2023[20]FutureOutlook−TheCompanyexpectstoachievecashflowbreakevenintheneartermduetoacceleratingrevenuegrowthandimprovedgrossmargins[4]−TheCompanyisnegotiatingwithNewYorkCityforaratcontraceptionpilotprogram,respondingtocityrequests[3]OtherFinancialMetrics−ResearchanddevelopmentexpensesforthethreemonthsendedSeptember30,2024,roseto1,787,000 in the same period of 2023[20] Future Outlook - The Company expects to achieve cash flow breakeven in the near term due to accelerating revenue growth and improved gross margins[4] - The Company is negotiating with New York City for a rat contraception pilot program, responding to city requests[3] Other Financial Metrics - Research and development expenses for the three months ended September 30, 2024, rose to 451,000, a 19% increase from 379,000intheprioryear[19]−WeightedaveragesharesoutstandingforthethreemonthsendedSeptember30,2024,increasedsignificantlyto729,400from34,805inthesameperiodof2023[19]−LosspershareforthethreemonthsendedSeptember30,2024,was379,000 in the prior year[19] - Weighted average shares outstanding for the three months ended September 30, 2024, increased significantly to 729,400 from 34,805 in the same period of 2023[19] - Loss per share for the three months ended September 30, 2024, was (2.07), compared to (55.93)inthesameperiodof2023[19]−OtherincomeforthethreemonthsendedSeptember30,2024,increasedto(55.93) in the same period of 2023[19] - Other income for the three months ended September 30, 2024, increased to 34,000, compared to $4,000 in the same period of 2023[19]