SenesTech(SNES) - 2021 Q3 - Quarterly Report

Financial Performance - Total revenue for the three months ended September 30, 2021, was $183,000, a 137% increase compared to $77,000 for the same period in 2020[12] - Gross profit for the nine months ended September 30, 2021, was $156,000, compared to $79,000 for the same period in 2020, reflecting a 97% increase[12] - Net loss for the nine months ended September 30, 2021, was $5,774,000, slightly improved from a net loss of $5,865,000 for the same period in 2020[15] - The company reported net losses of $2.3 million for the three months ended September 30, 2021, compared to $1.9 million for the same period in 2020, reflecting an increase in losses of approximately 21.1%[182] - The net operating loss for the three months ended September 30, 2021, was $(2,253,000), compared to $(1,912,000) in the same period of 2020, indicating a worsening loss situation[201] - The net loss attributable to common shareholders for the nine months ended September 30, 2021, was $(5,774,000), compared to $(6,279,000) for the same period in 2020, showing a slight improvement[201] Cash and Assets - Cash at the end of the period on September 30, 2021, was $11,083,000, significantly up from $2,717,000 at the end of the same period in 2020[15] - Total assets increased to $13,720,000 as of September 30, 2021, compared to $6,022,000 as of December 31, 2020[9] - As of September 30, 2021, the company had an accumulated deficit of $110.0 million and cash and cash equivalents of $11.1 million[33] Liabilities and Debt - Total liabilities decreased to $1,428,000 as of September 30, 2021, from $2,138,000 as of December 31, 2020[9] - The Company reported total short-term debt of $49,000 and total long-term debt of $673,000 as of September 30, 2021[86] - The company received a loan of $646,000 under the Paycheck Protection Program, which was fully forgiven and recorded as other income for the nine months ended September 30, 2021[89] Research and Development - Research and development expenses for the nine months ended September 30, 2021, were $1,424,000, up from $902,000 for the same period in 2020, indicating a 58% increase[12] - Total operating expenses increased to $2,330,000 for the three months ended September 30, 2021, from $1,948,000 in 2020, primarily due to higher research and development and administrative costs[201] - Research and development expenses include costs related to scientific trials, regulatory compliance, and process improvement[55] Stock and Equity - The company issued common stock resulting in net proceeds of $12,421,000 for the nine months ended September 30, 2021, compared to $5,741,000 for the same period in 2020[15] - The weighted average common shares outstanding for the three months ended September 30, 2021, were 12,190,257, compared to 3,398,832 for the same period in 2020[12] - The company raised net proceeds of $89.3 million from sales of common stock and other financing through September 30, 2021[33] - The company issued 7,091,600 shares of common stock during the nine months ended September 30, 2021, generating net proceeds of approximately $10.0 million from public offerings and registered direct offerings[147] Product and Market - The company’s product, ContraPest®, targets the reproductive systems of rats, providing a non-lethal pest control solution[17] - ContraPest is the first and only non-lethal fertility control product approved by the EPA for rodent population management[22] - The company has received registration for ContraPest in all 50 states and the District of Columbia[23] - The company continues to seek regulatory approvals to broaden the marketability of ContraPest beyond the United States[24] Future Outlook - The company expects cash and cash equivalents, along with anticipated revenue, to fund operations for at least the next 12 months[36] - The company expects to continue incurring significant expenses and operating losses for at least the next 12 months[183] - The company plans to achieve a gross margin of 50% or greater by improving its cost structure and reducing its year-over-year burn rate[188] - The company continues to develop its supply chain and is investigating other applications of its core technology for new product candidates[190] Inventory and Expenses - Total inventory as of September 30, 2021, was $1.007 million, a decrease from $1.068 million as of December 31, 2020[45] - Stock-based compensation expense for the three months ended September 30, 2021, was $214,000, compared to $162,000 for the same period in 2020[59] - Rent expense for the nine months ended September 30, 2021, was $166, compared to $202 for the same period in 2020, indicating a decrease of approximately 17.8%[171] Impact of COVID-19 - The COVID-19 pandemic has caused significant delays in field studies and sales efforts, impacting the company's operational results[173][184]