Senestech (SNES) Lytham Partners Fall 2024 Investor Conference summary

Business overview and market opportunity

• Focuses on rodent control through fertility management, offering a humane, sustainable alternative to poisons and traps.

• U.S. rodenticide market exceeds $1 billion annually, with significant public health and infrastructure impacts from rodents.

• Fertility control solutions can improve pest management efficacy by over 90% and are applicable to other mammalian pests.

• Traditional methods are increasingly ineffective due to rat reproduction rates and regulatory restrictions on poisons.

• Company is the only manufacturer of EPA-registered rat birth control, positioning it uniquely for municipal and commercial contracts.

Product innovation and efficacy

• Evolve, a new soft bait product launched in January 2024, is driving record revenues and rapid adoption.

• Evolve and ContraPest products have demonstrated up to 90% population reduction in field and lab studies.

• Evolve is EPA-designated as minimum-risk, uses cottonseed oil, and is safe for non-target species.

• Mouse fertility control product launched in May 2024, doubling the addressable market.

• Product formats and systems are designed for ease of use, shelf life, and compatibility with existing pest management practices.

Financial performance and growth

• Achieved 70% CAGR in recent years; first half 2024 revenue up 62% year-over-year to $874,000.

• Evolve accounts for over 59% of total sales; e-commerce and distributor channels represent over 65% of sales.

• Gross margin improved to 54% from 47% year-over-year; cash position bolstered by $2M warrant transaction.

• Adjusted EBITDA loss at historic low, with cashflow breakeven targeted for early 2025.

• Exploring additional financing options, including ATM issuances and cashflow-based lending.