SenesTech(US:SNES)2024-11-12 22:23Financial Performance - For the third quarter of 2024, net sales were $482,000, a 34% increase from $360,000 in the same quarter of 2023, driven by the launch of the Evolve product line [83]. - Evolve products accounted for approximately 68%, or $330,000, of revenues in the third quarter of 2024, while ContraPest product revenues declined [83]. - For the nine months ended September 30, 2024, sales reached $1,356,000, a 51% increase from $898,000 in the same period of 2023, with Evolve products representing 63%, or $849,000, of total revenues [84]. - Gross profit for the third quarter of 2024 was $315,000, resulting in a gross profit margin of 65.4%, compared to $176,000 and 48.8% in the third quarter of 2023 [87]. - The company incurred a net loss of $1.5 million for the third quarter of 2024, a 22% decrease from a net loss of $1.9 million in the same quarter of 2023 [83]. Operating Expenses - Total operating expenses for the third quarter of 2024 were $1.86 million, a 12% decrease from $2.13 million in the same quarter of 2023 [83]. - Cost of sales for the third quarter of 2024 was $167,000, or 34.6% of net sales, down from $184,000, or 51.2% of net sales, in the third quarter of 2023 [85]. - Research and development expenses for Q3 2024 were $451,000, an increase of $72,000 from $379,000 in Q3 2023, primarily due to realignment of personnel focus and increased facility costs [90]. - For the nine months ended September 30, 2024, research and development expenses totaled $1,288,000, up $141,000 from $1,147,000 in the same period of 2023 [91]. - Selling, general and administrative expenses for Q3 2024 were $1.4 million, a decrease of $337,000 from $1.7 million in Q3 2023, mainly due to lower personnel-related expenses and professional fees [93]. - For the nine months ended September 30, 2024, selling, general and administrative expenses were $4.4 million, down $856,000 from $5.3 million in the same period of 2023 [94]. Cash and Financing - As of September 30, 2024, the company had an accumulated deficit of $134.8 million and cash and cash equivalents of $2.5 million [77]. - The company expects cash and cash equivalents to be sufficient to fund operations for at least the next four months, contingent on achieving revenue targets [100]. - The company anticipates needing additional financing to achieve future revenue and margin targets [81]. - Cash flows from operating activities used $4.8 million during the nine months ended September 30, 2024, driven by a net loss of $4.9 million [105]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was $2.0 million from warrant exercises and $25,000 from notes payable, offset by $29,000 in repayments [109]. - In comparison, net cash provided by financing activities for the nine months ended September 30, 2023, was $3.0 million from common stock issuance and $44,000 from notes payable, with $11,000 paid for employee withholding taxes [109]. Future Outlook - The company expects to continue incurring significant operating losses for at least the next six months [78]. - The company anticipates ongoing expenses related to marketing and sales of fertility control products, necessitating additional financing [101]. Miscellaneous - Other income for Q3 2024 included $29,000 in miscellaneous income and $11,000 in interest income, compared to $4,000 in interest income in Q3 2023 [95]. - There have been no material changes to critical accounting policies and estimates as disclosed in the Annual Report for the year ended December 31, 2023 [110].