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SNES: Results for the Washington DC project are very encouraging. ContraPest deployment in San Francisco and Los Angeles have been initiated. 2Q19 financials were close to our expectations.

By Ian Gilson, PhD, CFA

NASDAQ:SNES

READ THE FULL SNES RESEARCH REPORT

On Nov. 12, 2019, SenesTech (NASDAQ:SNES) reported its third quarter results. In general the numbers were in line with our estimates with revenue of $0.04 million (Est. $0.04 million) and, adjusted for non reoccurring professional and legal fees, the operating loss was $2.4 million (est. $2.1 million).

The company is continuing its focus on commercial opportunities rather than cities although implementation of ContraPest treatment in San Francisco and Los Angeles are in their early stages. St. Louis Zoo will add a third location after one location showed a high consumption of the contraceptive and a 50% decline in rat population.

Senestech has launched a program with a major retailer after initial results were encouraging.

Many of the 15 zoos and sanctuaries currently using ContraPest are also serviced by PMPs and the company is changing its selling and marketing strategies to reflect this.

The two founders of the company, Doctors Loretta Mayer and Cheryl Dyer are leaving their roles as Chief Science Officer and Chief Research Officer. Their combined compensation has been reported to be over $570,000.

The company's largest project, the deployment of a large number of bait stations, in Washington DC, has reported that cameras at one location had shown a 77% reduction in the proportion of juveniles to adults after the addition of ContraPest to DC Health's current rodent control program. At the site the consumption of the contraceptive was 61%. The total rat population should decline with this level of consumption.

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