SenesTech(US:SNES)2024-05-10 20:57Financial Data and Key Metrics Changes - Revenue during the first quarter was $415,000, an increase of 78% compared to $233,000 in Q1 of 2023, and a 41% increase sequentially from Q4 of 2023 [35][49] - Net loss during the quarter was $1.8 million compared to a net loss of $2 million in Q1 of 2023, an improvement of $200,000 [38] - Adjusted EBITDA loss for Q1 of 2024 was $1.7 million compared to $1.8 million in Q1 of 2023, marking the smallest quarterly adjusted EBITDA loss in company history [38] Business Line Data and Key Metrics Changes - Evolve, the new soft bait product, contributed more than 50% of first quarter revenue, indicating its significant impact on sales [9][35] - The company has expanded manufacturing capabilities to meet demand, with current capacity at about 1,000 pounds per day, soon to increase to 2,000 pounds, and a clear path to 4,000 pounds per day [36] Market Data and Key Metrics Changes - The introduction of Evolve has effectively doubled the addressable market opportunity, with U.S. rodent and pest management product sales exceeding $1 billion annually [28][51] - The international channel has seen substantial interest, with six key international exclusive distribution agreements signed since Evolve's launch [29] Company Strategy and Development Direction - The company is focusing on a six-channel strategy for distribution, including e-commerce, international, agribusiness, pest management, industrial, and retail [52] - A significant opportunity has been identified in the industrial channel, with agreements being finalized for an industrial rep agency to assist in distribution [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the acceptance of Evolve by remaining states, which is expected to accelerate growth in Q2 [3] - The company is optimistic about the potential for Evolve to become the product of choice for rodent population control, especially as regulatory approvals expand [4][16] Other Important Information - The company has expanded its warehouse space in Phoenix to accommodate increased raw materials and finished goods [19] - Evolve has been designed to address the root cause of rodent overpopulation, focusing on reproductive control rather than traditional extermination methods [34] Q&A Session Summary Question: What should we expect in the coming quarter for the mouse product sales outlook? - Management is in contact with major pest control companies and anticipates that as Evolve proves effective in the field, these companies will consider supply agreements [42] Question: Do you expect the Amazon store to cannibalize sales from your own website? - Management believes that the Amazon channel will be strong, but customers will still prefer to buy directly from the company, indicating a neutral pricing strategy [45]