SenesTech(US:SNES)2020-08-13 22:35Financial Data and Key Metrics Changes - Revenue for Q2 2020 was $71,000, compared to $24,000 in Q2 2019 and $37,000 in Q1 2020, marking significant growth [40] - Total revenue for the first half of 2020 was $108,000, a 150% increase year-over-year from $43,000 in the first half of 2019, and a 90% sequential growth from Q1 2020 [42] - Adjusted EBITDA loss was $1.4 million for Q2 2020, an improvement from a $2.2 million loss in Q1 2020 [49] Business Line Data and Key Metrics Changes - The revenue growth is attributed to the e-commerce channel, which has shown strong results, particularly among DIY customers and smaller pest management professionals [43] - The company has implemented service fees for technical services, which is expected to grow as demand increases [41] Market Data and Key Metrics Changes - The company has added 208 new accounts through July 2020, compared to 63 new accounts added in all of 2019, indicating accelerated growth [25] - The e-commerce platform has enabled the company to tap into the direct-to-consumer market, showing significant month-to-month growth despite COVID-19 [29] Company Strategy and Development Direction - The company has refocused its sales and marketing efforts to drive demand in targeted verticals and launched an e-commerce platform for direct sales [14][29] - The repositioning of ContraPest as part of an integrated pest management strategy aims to improve its effectiveness and acceptance in the market [15][31] - The company is working on new dispensers and formulations to expand the usability of ContraPest, with plans to submit a new dispenser for EPA approval [21][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by COVID-19 but remains optimistic about the company's progress and future economic performance [7][38] - The company has implemented cost-cutting measures, reducing expenses by over $200,000 per month, and raised $4.3 million in capital to fund operations [35][51] Other Important Information - The company has secured new manufacturing space in Phoenix, which is expected to improve efficiency and reduce costs [45][46] - The California AB1788 bill has been reactivated, which could have implications for the industry, although the future remains uncertain [36][60] Q&A Session Summary Question: Expansion in San Francisco - Management is awaiting clearance from San Francisco to announce details regarding the size and implementation of the expansion [56][57] Question: Future of California's AB1788 - Management indicated that amendments to the bill may allow for exemptions, making it potentially more acceptable to the industry [60][61] Question: Headcount and Income Statement - Management clarified that any headcount increases would be for revenue-producing positions, avoiding general administrative additions [66]