SenesTech(US:SNES)2025-11-10 22:28Revenue and Sales Performance - Revenues for Q3 2025 were $690,000, a 43% increase from $482,000 in Q3 2024, driven primarily by Evolve product sales [103]. - Evolve product sales accounted for approximately 85% of Q3 2025 revenues, up from 69% in Q3 2024, indicating strong market adoption [105]. - For the nine months ended September 30, 2025, revenues were $1.8 million, a 33% increase from $1.356 million in the same period of 2024 [103]. - Evolve product sales represented approximately 83% of revenues for the nine months ended September 30, 2025, compared to 63% in the same period of 2024 [106]. Profitability and Loss - Gross profit for Q3 2025 was $433,000, representing a margin of 62.8%, compared to $315,000 and a margin of 65.4% in Q3 2024 [110]. - The net loss for Q3 2025 was $1.298 million, a 14% improvement compared to a net loss of $1.513 million in Q3 2024 [103]. - The company incurred a net loss of $1.3 million for Q3 2025, continuing to rely on equity sales for funding operations [118]. Operating Expenses - Operating expenses for Q3 2025 totaled $1.78 million, a 4% decrease from $1.86 million in Q3 2024 [103]. - Research and development expenses for Q3 2025 were $400,000, a decrease of $51,000 (11.3%) from $451,000 in Q3 2024, primarily due to cost containment efforts [112]. - For the nine months ended September 30, 2025, research and development expenses totaled $1.2 million, down $43,000 (3.3%) from $1.3 million in the same period of 2024, driven by overall reductions in spending [113]. - Selling, general and administrative expenses for Q3 2025 were $1.4 million, consistent with Q3 2024, with increases in legal fees and franchise fees offsetting cost containment efforts [114]. - For the nine months ended September 30, 2025, selling, general and administrative expenses increased to $4.5 million, up $131,000 (3.0%) from $4.4 million in the same period of 2024, primarily due to higher legal fees [115]. Cash Flow and Financing - Cash flows from financing activities for the nine months ended September 30, 2025, included net proceeds of $10.5 million from warrant exercises and $2.7 million from common stock issuance [131]. - Cash used in investing activities for the nine months ended September 30, 2025, totaled $3.0 million for held-to-maturity investments and $125,000 for property and equipment purchases [129]. - The Warrant Inducement Transaction resulted in the issuance of 1,458,872 shares of common stock at an exercise price of $4.15 per share, generating gross proceeds of $6.3 million [132]. - The new warrants issued relate to 2,188,308 shares of common stock with an exercise price of $5.25 per share, expiring 15 months after the effective date of the resale registration statement [132]. - Placement agent warrants were issued to purchase up to 72,944 shares of common stock at an exercise price of $5.4219 per share [132]. Financial Position and Future Outlook - As of September 30, 2025, the company reported an accumulated deficit of $140.7 million and cash and cash equivalents totaling $10.2 million [119]. - The company expects cash and cash equivalents, along with anticipated revenue, to be sufficient to fund operations for the next 12 months [120]. - The company believes existing cash and investments will be sufficient for the foreseeable future [133]. - The company’s ability to continue as a going concern will depend on generating sufficient revenues, reducing operating costs, or obtaining additional funding if break-even or profitability is not achieved [133]. Market Opportunity - The market opportunity for non-poison rodent control is significant and growing, driven by regulatory restrictions on traditional rodenticides [102]. Accounting Policies - There have been no material changes to critical accounting policies and estimates as disclosed in the Annual Report for the year ended December 31, 2024 [134]. - No quantitative or qualitative disclosures about market risk were applicable [135].