SenesTech (SNES) 14 May 182018 Q1 Earnings call transcript

Company Profile

Participants

Robert Blum	IR
Dr. Loretta Mayer	Chair, CEO and Co-Founder
Tom Chesterman	CFO
Brandy Pyzyna	VP of Field and Tech Services
Joe Malinowski	VP of Sales
Elissa Calloway	VP of Manufacturing and Regulatory
Kevin Ellich	Craig-Hallum
Jerry Sweeney	Roth capital
Tony Kamin	Eastwood Partners
Pete Enderlin	MAZ Partners

Call transcript

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Operator

Good afternoon and welcome to the SenesTech Inc. Reports First Quarter 2018 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there’ll be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded. to conference like Blum. to now would turn over the Robert I go Please ahead.

Robert Blum

Pyzyna, VP and Financial you today and period Tom all today you, call Executive conference Manufacturing thank Field Joe Thank of call be Andrea, as Officer on us questions. our At live of of Please open Officer; Loretta XXXX corporate Tech and SenesTech our Malinowski, webcast our the Chesterman, Mayer, results session. that able call. as Calloway, to well conclusion ask Chief With XX, question-and-answer the to we’ll note financial VP Services; the SenesTech; Elissa for Dr. for Co-Founder portion March and listener’s the Company Brandy of the of ended our representing and of Chief update a on are will discuss call today's us the and the joining Sales; prepared remarks, VP Chair, for of Regulatory. both

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Litigation the XXXX. Section provisions and of harbor record pursuant and the Private prepared the the meaning during management of such Section Before made submit beginning forward amended, of are of Securities by within statements this Act contain the looking course the remarks, Securities following statements to conference made for of team with of of Act Statements Act XXXX, the of as the statement. SenesTech we the of Securities call forward-looking XXE Exchange may XXXX, amended XXA as Reform safe

planned, preceded multitude may cautioned results subject or factors the the or with obligation in contained of projected. those forward-looking call forward-looking Officer Executive to occurrence forward-looking Loretta or those expectations, uncertainties the events filings strategies that in as of are the circumstances, publicly me call our and will to of Listeners including any or such risks future this cause future, events future materially and various does by SenesTech. statements, the forward-looking let only in turn payments should, projected or that they or plan and and result risk planned of of results identified Co-Founder as of Exchange other generally Company date information, were receipt from are to over for such describe statements projected assumptions differ results new which to could the such Loretta? the Mayer, Chair, a anticipate, of on Securities expected, that are differ Commission. and statements Dr. eventually as materially All Forward-looking date. speak from made actual on With draft, may words and statements The any are undertake during update management's of the estimates not based future conference said, a otherwise. that and results, as the statements risks Chief

Dr. Loretta Mayer

towards beyond turn going sales, commercialization. of those the Officer. Chief appreciate over the made am to I Tom? the and Chesterman, and all a our to with to our taken join press said, operations, numbers. Thank And discussions truly In much time you, whole I with to Financial Robert, you. release comment good this We for there’s afternoon in embedded that it of that, today, us are to story our call. that Tom And progress you've team

Tom Chesterman

us first for We this results. Thank appreciate just of you, Loretta, We all our today. released and good you. afternoon financial joining quarter to call you

our If visit please need website. you a copy,

SEC. the what it of and to get XX-Q or numbers. our really from the expect you can copy from said, a it's Loretta reiterate file our To about all just not tomorrow We website

conference talked to we critical develop steps. manufacturing, involves the commercial with to level challenge To some need about reiterate, to pricing, right et commercialization last customer definition, right call, build our on we develop need the distribution value the the team, As we need customers. strategy marketing reference including develop for We need fulfillment cetera. channel we develop products proposition, need to and to we a identification,

can story While quarter first of where not critical the about talk do the tell we these we really numbers, are they certainly steps.

the steps now the sales progress April, experience in at process collectively our messaging eight the say mostly about Starting commercial professionals, Melinda results materials. sales few right first Berry the team talk the the Malinowski, pest handles geographically. Seaboard; the Menein, sales about Julia you have handles Jim Forhan but also not Nick Eastern this Midwest; of sales, build and and the years Baker and our who of spear Tracey Flagstaff which handles includes to tip words handles This who states, sales for like Brian Northwest. the over critical XXX Doug inquiries. sales handles of in in seasoned who complete we’ve the efforts. in At is First, team focused Texas success/ to on who point, and VP our a though we’d handles team. So, maybe Carl control the sales these the the and wholly can at is Hawaii; Joe and related [indiscernible] inbound The Southwest industries. was here and adjoining who By of who Mills, Hayes revamp proceedings completed Joe, our recent force

Joe Malinowski

and with how and PMPs PMP on pest management professionals Thanks, Tom. to approaches. their improve integrated or is two The management pest working introduce focused team ContraPest existing sales it with the help can initiatives, new, working distributors, really

now are We added through with which working within of four distributors, two been month. or the last have

Tom? from who beginning PMPs the leveraging can central then PMPs with most we incentive identify develop it the ContraPest visit then benefit it and an effort. needs. individual distributors, directly the consult introduce with start obviously when more how can only works centers, explain that’s ContraPest their call business. ContraPest plans, office, we We to we meets those teaching’s, improve we distribution to and While efforts only we the hold them of PMPs commercially

Tom Chesterman

Joe. you, financials in quarter difference in terms numbers cetera. in We efforts of Thank see have making place shifts all we acquisition. will second These customer the of them you though will as see can't see this all not did terms it acquisition, in the it then, customer et of can’t first it and the are of you in quarter not

capacity. matters. manufacturing our made, turn about a Let’s words now the Manufacturing Regulatory perhaps and capability To about this, I'd to say words of to progress develop and then her commercial and Elissa team about level Calloway, the few talk point, few regulatory VP second like a has

Elissa Calloway

Thank you, Tom.

the last on has on mentioned been I operational call, focus excellence. feeding our As

progress. to of I’d numbers our this increasing size improved reducing cost. the a to reduced to quality and now and QC Aspects control include also batch by exemplify time the processes like the mention goods we’ve XX size of few doubled and sold. We’ve cost liters,

flexibility. Finally, negotiated we’ve both costs retain reduce that but supply contracts still

As by by solid be reduced a XX%. to cost we result, of over these actions goods expect

cost to forward of targeting made the am of the regulatory look improve improvements we I may progress also that further As We’ve another the side. on XX%. goods year, sold by rest

access approval. marketing said lead continuing an prior positive to sales that able could to far is our answer be the result summer. for requests, on been as We’re it our discussions California has preparing there follow-up so also team that and teams additional important numerous comment we’ve process in regulatory, approval experience we’ve One application The before. recognize to feel in we regulatory while are said to to a advancement and will and the hope last

caution is warning, signal EPA finding higher indicate toxicity. level label our to the reflects was word which toxicity reviewed is due registration slight word lower of a one signal the information. ContraPest the to EPA One dynamic, example thermal a a caution when reduced constant have irritation. Our hazard improvement. ContraPest was After assigned undergoing lower acute level, that our evolution a the from to risk

around manmade change ContraPest not example is the the be structure just building. deployed any clarify the Another may to

that Now success collected feedback is we these features evaluate would new application. features use and from our the to next additional investigate. us that some out expanded some like benefits PMPs market is to we've ranging of in we important regulatory began begun request to for Customer The variety heard been have to the have to features and months, have and process of step a which them. we pursue they

Tom Chesterman

Thank you, Elissa.

believe reference over develop about our and to customers We the studies. advancing to is And Field case Tech it this, and now VP turn I’d Pyzyna, is science the like much of about this to to talk as sales about next Services. references. turn it Brandy Let's point,

Brandy Pyzyna

Tom. you, Thank

one this our at trial. were population qualitatively or tools rigor some rodenticide legal with when conference results seen. last the the completed, let in outlined that facility areas go we while trial I work other in the share care is of we But used populations the pest to than what approach showed to used where that plus as In beyond compared the me with work, explosive showed where throughout continued demonstrated we have at We alone. used with an ContraPest management tools, was scientific alone. rebound, monitor the of call. controlled part were production were new to protein rodenticide just to used of the facility The only better animal the management helps the legal ContraPest an data areas growths treated methods areas population population tool This efficacy giving magnify is lock reduced a IPM rat ContraPest Cameras professionals in with when their pest protocol. rat integrated results conjunction use saw same in specifics. This

step the trial in where Once areas this to about we interface. best will understand development. as Think towards urban a listened more for environment, be and also trial. private period deploying this are the of in first to longer one have and field ContraPest or and practices a citywide deploy diverse We a the environment the developing over new long-term how customers preparing optimizing ContraPest

master the are support manager, partners. et customers, urban include our we training cetera. best and pest We previously transit mentioned, In addition, commercial pest retail to practices to with transit professionals, want in and and implementations also and supporting agencies management national major the settings pest chain this provide our continuing does as

Tom Chesterman

Brandy. Thank you,

last indicator of is Let's mentioned number turn I leading distribution had books, the out for metrics. time is have. agreements hitting that recognized we there revenue to the which a

expanded four ContraPest mentioned have Flagstaff can't wait. was from via from shipment supplying inventory just for supplying four direct we that distributors all those As PMPs now before, the either or are

ContraPest. expanding are order gotten regional deployment and the PMPs. leading stocking PMPs. and just finished of and press we're with an articulated whom all final these PMPs, of Another six whatever some last national the had in their needed number is from few scope months previously We indicator shipped In now within another have they of of We stories negotiations we the APE. this and the to we've release, success assessment

I'd Now back to our like Co-Founder and this, it to with over CEO turn Loretta. to

Dr. Loretta Mayer

and of appreciate did group this lot that Thank of day. We a every hard you, tremendous Tom. here work people I attack really problem this

are of adaptation understanding not almost can dehydration, rapid it. The the to great species mammalian with rat As and of rapidly, to before, on adaption we it's matter gift most looking matter key development poisoning, I'm the breeding market we adjust on learning, the successful rat. because commercial to farming now win. To from the ContraPest the situation Tom now I it's commercial any voice of at great to as said going a team. the changing is we've just the are about flooding, idea of of leave deal we with have earth, to job. doing responding, a experience you learning of to now really heard The the and adapt of customer. that and The to a environment They and all name track work what's have it's success. is that of a a

for timely some supporting strategic sale components funding needed the to product. it's form for this still partnerships our to While to landscape of political lookout me and and our social next much as business,

outcry at the difficult. those deal such to other is this disruptive and of We But to wildlife looking Hawaii, California continue both are in in a it's And technologies know we're Massachusetts. or very There who humans wildlife public between and to as sides to our better the pay are attention to have It legislative involved in vocal. through sides demand are greater three many states see as case, new be a looking both it's are leaders processes. have to I helps who see whether I been probably to us and They would this and intersection species. emerge beginning lucky this ours, through very with coin. ContraPest think people not because pretty particular understanding of

Here we and disease gap lethal areas of managing rodent a infestations, and ourselves that's exposed gap is and production the pets, food our domestic the through SenesTech, the the damage other that home. at use such view as between travelling wildlife which and are rodenticide side minding as and in areas in

of and from to sides things Without is tool bring of you to can so I this demand, with we help ContraPest, the that What opportunities noted myself So issued opens organization to bring and and both harvest interest. the are first. together a and have reducing get capacity patent to we feral low one anchor How and interest who reproductive pushing that great selling some cats, focus all we request organizational do of other calls am sides capacity the folks do dogs, have Xst find in of ContraPest of public financial pigs, both our public understand me partners, go believe reducing every need and need may be I reproductive on that where dedicating help a from squirrels diverting perspective? that and in hanging is together. day an next. to that it May that balance we do who emails recent fruit There’s our and revenue this the the attention that that so the need from mammals, goods, for now press species release on lot the

to creating board Dumont an Company SenesTech curve Marc world by in a recently into J our approved encountering when which has introducing and is disruptive the of a over is to not let and SenesTech EPA product to getting and traditionally is technology spending One from questions. and are determination any Marc money and and turn certain if. defined prevail. those that experienced interesting The XXXX through identified innovation is reached the we I the really for efforts resistance its to comments is approval at substantial of said, with absolutely SenesTech determined and appreciate product, for the me making is because bottom manufacturing everyday traditional technology is members, market. disruptive patented get Andrea, market. SenesTech, indeed really win the here the call time you

Operator

session. comes now Thank you. Instructions] And the first go ahead. Please question-and-answer Ellich our We’ll Kevin begin from Craig-Hallum. [Operator question of

Kevin Ellich

just placed if who off start any are could us orders new to distributors, stocking wondering with they wanted they the tell I Tom, yet? you and have two

Tom Chesterman

programs But preferred specific named working in we’re orders. are are is stocking They These time. case region. remain that distributors their do overtime more have them them this typically don’t them. would to market have work at but just point, What customers they with to this hope to progress they they the both public be not certainly with at to at of not develop within We -- working and also PMPs them. to being with their that partner, with beginning we’re a both will and with this

Kevin Ellich

more they say? Are do or scale you regional, national what in

Tom Chesterman

These are regional both distributors.

Kevin Ellich

message the guess direction I strategic mediums the customers. the to the release, the using you really is I to are the And are and PMPs? out attract new messaging that it change then guys on going focused you or press you changing really in in just guess,

Tom Chesterman

distribution Univar both. own example, working its has started We’ve It's system. through in-house for

we and directly through by attributable read other and PMPs. are forms But that. PCT the are Magazine through also then that working are working We

a direct phase we is the call, are into into marketing probably last see on beginning action call conference that we over campaign in went but we, bit to little entering And that to call. last the phase time use Tracy education and now very So will recognition, jargon. the more to detail little the conference next marketing are better and go the

Kevin Ellich

that Was be is about updating this or should forward? effective models there going quarter as something enough thinking in that we or G&A QX we

Tom Chesterman

and is we what necessarily we media. to to that G&A because tried a paying it, to the There we and do newsworthy. for, say but That is which are more is huge but not hit to get to more tried stuff not we earned have earned it's

wouldn't effort. I anticipate be impact So, there G&A a will this from

Kevin Ellich

come added the half. and the control Two it? Did within over more pest they from new questions. you've that new industry are sales month The or people they four to last

Tom Chesterman

it. themselves are the supplying are They either in PMPs They having pest to with industry from PMPs. having experience all control extensive seasoned been professionals far new or been

Kevin Ellich

then about here. Hawaii, flexion especially read why in with be guess feedlots, update on what Can we about? potential back going California, What progress are I comments in on we last in putting strategic And mammals animals we a what the your and terms dealing to then of an combination wildlife? thinking and should get cattle focusing Massachusetts maybe

Tom Chesterman

of but to So I’ll first Loretta. answer that the it turn part over then

up cases doing with agriculture, we In terms working. to very of and the that’s marketing agriculture, market. on on market focused other We is and pretty and many campaign we this quarter and right something will can now, our laser on messaging and best market. develop But in to PMP implement at as PMP tell the feedlots of sales the approach some focus separate getting is a you in need to cases, be and focus way cattle current come that

that want diluted anyway. So, don't stop to it we or

Dr. Loretta Mayer

species, our to think will realm mentioned In greatest. no do at mice, much of and So next I I control kind fertility is obvious so and that question is be that’s we thanks is the have The add of one we what about will that natural look the as we next for species market. that’s ideal the big have so to a to the demand next where work there.

be is to clearly some So, to serve cause return product animals, to highest deal ready of financial companion and but great would the species that cost being the of compared damage. the extensive that a time other

feral at data the push. be success and that. is the will combining We Again, early here looking in have pig, real pigs

ticks HSUS major and they For a Deer are deer. that are organization but diseases would carrying are like be a public. some highly looking other example also concerned cause particularly of as at activist,

at what will you parallel Mice along on doing next, but And is probably that an is addressing. sure update it so will their be we those next the absolute will So, somewhere as the will studies able be pig because I'll for then but to lines. to that, be in looking we be pigs. be canine in be may arena metabolism one close

Kevin Ellich

to be, just Loretta it seem your doesn’t you the the ask going a markets study was canine answer into Is would have for would seems that yes. products? you because like like -- for jump I just canines you if run could to it and with separate right -- could

Dr. Loretta Mayer

Well, strategy physiologic would canine in and however one foremost and to its reproductive ingredients of it first needs. species look very at of that data formulated the has active our animal the we successful. for preliminary we are to be already have and Every successful was

requirement do rodents example, food XX% that a liquid to their that. body get some eat. For up day. need from the of to Mice drink they their have to They weight

rodents are Dogs differences So, seasonal Pigs strategy. use in there, can breeders. see two you alone. a right different again

to species, the formulation, for it move have and efficacy, So every regulatory into market. we single do

approval would fertility FDA an and animals control So for an companion stray EPA. example for be dog feral requiring

but groups amount that and each foundations to work with has tremendous fair is group can for be animal of a done, So a there there system. that us that welfare there provide of one is

that's So we partnership. at looking are why

Operator

capital. Our comes Roth from next question Jerry of Sweeney

Jerry Sweeney

you is at the it There talked of and appear and now in-house right the being more obviously what do is because Is it Is the sales? distributors of PMPs some is more pull. you out key is like if the to to code, and about looking driving push have and curious it that? additional is largest then more data? got no ends it some you've a or the as learning distributors get obviously Is both steep doubt PMPs, the we the have just you [indiscernible] more inspection, on-board, you've do there it it you're education? to could just curve structure commercialization does cracking think having But what around

Tom Chesterman

important to those because the think there, We market. of important same best et believe I we streets that to the will message we as and the said, parts we as it’s clear -- work get feet that other part message the what cetera. get to and message. we on as the it be of and to is the on you all the consistently most all Jerry, and with make message of Yes, That's to remain PMPs and need are a meetings, the consistency. on long now out great are We’ve really very have distributors, And PMP cracking question that executing the code. giving the is

beginning to get are We those.

value might reception very you? really success it their PMPs it’s be to might would to Joe, little the we've it’s think from. if integrated Joe, you pest as the of into I talk indicative a going think because integrating where bit come talk is of instructive, we ContraPest and about gotten management, positive about I

Dr. Loretta Mayer

Joe.

Joe Malinowski

be too. Jerry, great I'll call. happy Great question.

back what I Tom want to go First, referenced earlier. to

a process been manufacturers team put selection a PMP or that regional worked team rep have that we in the of the has one in for seasoned the either or field, in as distribution marketplace. the very-very experienced First competitor on individual or management that the even we have account a

field the a PMPs very in XX team are PMP a network, out, the warriors, the the their marketing they the time with have integrated distributors focused PMPs short they is to message, they’re the to but team anywhere after in really as either laser driven meetings respect also the pointed, connection is to daily with with pest it And to her PMPs. distribution With and an they’re a to program. message, consistent is the team. Tracy very pointed a the basis, is about ContraPest where truly on with Tom thanks it session. we’ve period our on message seasoned very holding So, adding management XX And road meeting XX from a will distributors or several training and

it's a to a of So, most education, people combination message, and asking buy. focused laser follow-up importantly

combination it's have So, a your Jerry hopefully answered and I really question to your satisfaction.

Jerry Sweeney

And I it rat knocked of proposition is do definitely then a ContraPest think keeping you rodenticide more adding -- of down. mean value population there’s with the

longer So, end learning do it a because annuity, it sort customers' is you think curve on customers' customers has a down? bit use actual operator? the it’s is of continuous but the it for population the keeping PMP talking benefit obviously this Is the maybe a the cost, little it or -- or ContraPest aspect, is term also

Tom Chesterman

forward And you times more to so as show of And happening overall groundswell many, more. improve was without. Loretta yet, definitely but the PMP that fees don't includes to messages hearing I need But IPM with maybe them faster get that’s to and mean products it's to and from most PR -- time to is you where is market the a talk of Loretta, which at that the really show business. the has get you mentioning both. particular pull. campaign, mean product are to you I need service. ContraPest faster in many the I have see the that buy think is service happening bit their alluded moving push how also that and and that’s how about we and same and the much you a before, the we our to the end customer specifically and works better get you to can them the this call. because three their thanks mentioned you it's Jerry, those are providing the on this user that part states going Brandy of we’re

Dr. Loretta Mayer

as say will what able I get I think, we of poison state is from our do a as I we this be the use approved Again, are in lot to of is biggest soon and the Tom, there. ranges get groups can rats Probably there. calls a And on Hawaii and problematic are environment is around becoming out registration California the way. help where to California. for lethal rates again the customers environment extraordinary. from water favored their from is And where I the demand are of reproductive our tropical

again have two. this is we So, to bridge between where the

is to the to not able bullet, silver we hand no situation. end in a move closer are we user, not customer all with it are your us So, the going all be we PMP your a solve better hand of to problems but environmental will

and rapidly. customers So in are in hard information that case the these because states they its mostly getting pushing the out to PMPs the

Operator

Instructions] Kamin Please go Eastwood comes from Tony ahead. of next question And our [Operator Partners.

Tony Kamin

for are had the with about you mentioned as got at relationships metrics, you Tom, number people example. thinking of that should distributors you look have

quarter you've you in call? new about kind doing distribution through time quarterly of be thing will now. with for the been of guess wrapped talk you're so of Do do become also points distribution up that And affiliated period you? what anticipate to in more those I what, where that you line reasonable think those that a So in line trials for example may be some relationships that to will having with third the look halfway at as you guidance that next able but cities

Tom Chesterman

of relationships, the in So are as still agreements terms part yes, first and far we as distribution pursuing some others.

in this if Eric cover cover some are like to some -- more have we working others, we the one areas would We with within depth. that

going you with success good were progress But on have some see have master pursue PMPs will I well. in as the agreements further sales agreements large got we that the think some we PMPs those, we've now. to and significant the some in had continuing now people the street see I right that relationships doubt team no or you some and are to overlying also with further

question to large Brandy contracts, that's We've that Turning talked will of have converted ago up into going cities, to end is probably We're not got with paper a with being of but publish are long that about on. one your it. compelling into had smaller that are some and a ones that's will entering about, we turned and them continue probably fairly the on some that science also so and there be now concluded some already just now others one the commercial trials the included. have

progressed. -- So, the answer these of be will definitely is all they yes from

Tony Kamin

Given the I of been showing think you level biggest the is would have growth. some everyone just think revenue; watching of sort for the concern however, I be Company

you're halfway understand you of quarter you through in just I see think guidance, you'll that an but you quarter, the careful very want terms that over do improvement to that again Given this reported? are be probably directionally you

Tom Chesterman

customer Yes, promotions. of quarter. accelerate to out -- are I'm guidance into what terms the and the new to talking so But will We the in acquisition, terms customer -- the don’t revenue sorry. in problem. over the in metrics. programs of may tank of Joe Those shipped talking I about and is some of be not going progress to may that able again progress There go be were that DSM turn the specific number first show

into customers quarter acquired tank So the that see so terms the in translated may you of second you other you will cetera. those -- et everything -- shipped but see the not metrics, in revenue

Tony Kamin

it order -- having stable you those distributors can how the rate? first lag do that, many identify? of have of the is a you six time that of a customers takes In between Is now terms there of metrics month anything seeing a potentially or before sense are sort this at a it more time months you kind sort of of lag

Tom Chesterman

record It's lots not a of having really wouldn’t it scientists room good The track are of proper terms statistical in data. the this is definitely and a see analysis, varies. in

for usages. this try It had all. I of and going two we're you've that these tried one how are lag last take a But out. had there product said When a as are people and respect that's PMPs part the months. or down We to location an month response rebound. I implemented seeing, on a how everywhere as types quickly as they of and couple because is is, they're know much effect standalone a year, what have it there takes that looking one very at lot a rats -- what IPM overtime. long, so, for that PMPs doing they a trying how out because we population we ContraPest was long the due a say quicker at as to long stay out to Some didn’t they to populations definitely it of I'm and that will What it with got it of is different

effective much quickly and is much see to more how able without. more they’re so, And their ContraPest with IPM

Tony Kamin

Okay.

Tom Chesterman

real I and have sorry integrated actually here, become the good am trend is a PMP more don't solid trend as business. I into we statistical think the getting but I better

Tony Kamin

in of And terms then expenses. other just of on the one side things question final

you’re looks the there it anything you’re sure do lowered. you on read, Is else ramp everything make while your like internal expense to quick doing that waiting for that EBITDA loss can can rebound? revenue side On to the was

Tom Chesterman

be we expenses. Yes, to disciplined have in definitely very, very

so be is make check into that responsibility final of opportunity, the sure a to time revenue to really managers, a our expenses she And opportunities or the has Wolin, to to everything senior sold current Kim truly that’s revenue cost is goods reductions. a and translate that are of one translatable in primary has

on be it. justify continue that. to It try a request you’re again So been to Kim’s able We’ll unless room, in looking an we expense office. Everybody with are go just positive experience hasn’t everybody very the focused that. to around on focused

Operator

comes Partners. next Please from MAZ go Pete of ahead. Enderlin question Our

Pete Enderlin

this the you government? Are In and of point? about interesting manufacturers obviously about an a you other essence comment of and traditional resistance the PMPs encountering rodenticide in release, the have press I their be is resisting. market. or could is wondering similar And resistance at who am products, rodenticide It's comment talking what

Tom Chesterman

be Joe already you respect educated me in is much I are two about approach that and and it that and integrated a standpoint, she as to approach what it’s let strategic am. the they’re have of the how be am standpoint, new business talking does well, strategic this am to has to From a is a extent better some The going it But be here. tactical to because his you focus pointed this on and how explaining of over that’s at just pest put with got it out. from to the turn a Loretta than resistance they was to expectations. the something And and resistance that’s end-user ways. as it as this important I’ll PMPs understand strategic from So, part do management. into in, Mark I going Loretta let to pointed I to unknown. the from to that Loretta tactical team then have to standpoint

Dr. Loretta Mayer

have best here, our that single PMP the new I you PMP the fulcrum of practices to to think that created the innovation them. when every understand kind and learning get takes we is day

So vary they customer is good only controls saying oh, from so get rat, birth to know that’s the I rat yes, rat how things is that. to that better. deliberate the to who wow much their a Their Oh, customer. dead

in is of learning later of when middle So, curve others the you to the the learning like put the a for some in exam want And the us. learn find people middle yourself curve, jump day. in to and quickly, with PMP off

beginning, said And had stop position, critical, never earlier to are that’s think are do looking that, you before. said never think that from helping yes, as a their gap to bag And I you've PMPs understand that’s bridge I strategic And a been we so, into I at. they to we in able something do tool trying that what rising I to need we are have, help and here certainly as have two, it we because what at around takes know that adaptive, they rebound we have the than them. rapid have they are and the the tools is longer the challenge only to been the very are but challenge, to they rats and PMPs getting the

Pete Enderlin

was XXXX rather you more IPM than the making, that And also really standalone been as a a I the and changes the results ContraPest means will essentially focus on show of that guess that of comment product. have

is biggest financial? to Is besides, factors gating maybe organizational the field? So it Is Why so it is is, the it in inertia? that the what seem I Is guess point? question take it this training does just regulatory? long at

Tom Chesterman

is anymore. Well, no gating factors Pete, there

We before takes I there translates team gate. are back are just revenue. and us visit. But the into that’s day many can how communicate it other holding many out think we are nothing is shows is per trying it of a that, to is day while book why a here working, how there hours And PMPs in

it's there strategies other So, the no barriers than now execute we got. on continuing to have are

Pete Enderlin

areas represent quarter, starting in opportunities you would ramp a user but end the forward the think by quicker going best for half? And which especially second the second in

Tom Chesterman

PMP complaining and they're That handle of really The that’s it's each on your not the are Usually, is to -- ones on depends customer this. sales with the the team that’s has actually getting PMP the which receptive the be part that who most PMPs, a discussion. customers, infestation. will not the

property resistance to really, on the complaining those. the the really having poisons of and is also might be So, customer, customer wants use their it it's to minimize but who

individual a very sales it's to type be pitch So, going of approach.

Pete Enderlin

think in second you factor of significant be year? inventory a in stocking will Do the half revenues the that

Tom Chesterman

the it's as will we up. be there I’d as are Right demand now, shortfalls. and picking will Yes, keeps to think so. stocking accelerating avoid be so -- necessary I’d the filling needed, demand but think

Pete Enderlin

any And stocking second that could much is sense add in how half? inventory of there the

Tom Chesterman

Not at this time.

Pete Enderlin

as concerned, not to plan if money ramp begin so is accelerate at year mean sharply what must be the would funding guys run development of on. there end some half? doesn’t the sooner, of going B is the planning as in second the far the if I you contingent Tom, business out

Tom Chesterman

CFO, is is focus going not we is the all to that point need B. moving on the focus at always have. pointers are More planning what there so trigger on on. today and frankly, trend of do contingent the this need executing a we But We fact towards yes, a to on the plan

Pete Enderlin

the been past? Could plan have sort in some a noodle out include licensing B arrangements of as

Tom Chesterman

well. got attorneys. entire Sure, There we've as lot can't alphabet in at for too into looked them of Pete, our different full here a I that forward-looking obviously depth that be I would but mean is alternatives go we've way of --

Operator

Blum for time, I'd this like questions. to Robert over to any webcast turn At the call

Robert Blum

have Yes, with left. of we've had that couple we a here questions the time

as sales you and have preliminary guess we in to SenesTech people now? be when works doing have a there California do might question, First approved

Tom Chesterman

they've be there summer, and as it in had more just regulatory because has expect the Yes, the that Elissa been so they've and that that last can't we question and always far mentioned the forward we than hope got answer. is one specific process but like this

activities precise can't California. we So, a say be the estimate, California, is can begun that, already activities particularly with have planning we forthcoming but in in point we yes,

We cannot product the market very are California. in We restricted.

can educate, and for we get is we signed it we so, to But can we conferences to direct begun And doing which happy approval day? day are plan sales when ourselves And figure the out. in? do, California so up be not to from generally next team are the any we in can we be they process, can get marketing. going approved, provide about to people out from on of many are the California California going part that to How education

Robert Blum

SG&A details Our next can question as you R&D as the provide is, of well expense?

Tom Chesterman

me answer to qualitative revenue The the implication. I've our all what first Yes is standpoint. of let mentioned tied less very expenses more R&D is from are or as that before a specifically

to support to are all goods the reduction tied and some the expenses and sold. so, cost to to extent R&D that supporting And

about we've help R&D that to some something's those is cost of based. directly So and well, R&D that, dollars when talk that sending different with goods some improved Brandy's team our very Elissa as sold, expected to it's mentioned we of that and but When are places make have that. revenue of winning to

say that but So, tomorrow will to specific, detail we're and get more in I going filing any the that to that. our XX-Q specific would be be

Robert Blum

the city? control New you in have comments post recent question do here articles York last on rat Our on the any is,

Dr. Loretta Mayer

of created my biggest an Yes, we’ve to to little with what and PMPs the I major And underground, of management you modifying up it’s the against New in continue against environment there, easier York we most Well, Mayor, the need clearly behavior tremendous New He first is that’s that expanding they’re every City, management a integrated is, population for rodents work. trash think issues and be comment we guess are ever another is public ought we it’s York situation day. test up vast for in that are de and think cities I I Blasio. face system. one again, we on pest faced in

to You worry, everything the strategies, -- need but you stop sanitation hit you exclusion, that’s to lethal from with Mayor. Mr. together Do reproduction. not to cause to got work to route got and

We are there.

but We am my are not I help you. government, to here am help I That’s to from the here comment. you.

Robert Blum

With that, management any closing remarks?

Dr. Loretta Mayer

No?

Tom Chesterman

their Well, I everybody want time. to thank for

in next to achievements updating you to on We’re busy be very terms the is quarterly at resulted going and we call. how quarter forward look of that this

you thank So, very much.

Operator

The now attending for today’s presentation. conference has Thank concluded. you

You may disconnect. now

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