About SenesTech

SenesTech, Inc. engages in developing and commercializing a global, proprietary technology for managing animal pest populations, initially rat populations, through fertility control. ContraPest, the company's initial product, is novel liquid bait in the pest control industry. ContraPest targets the reproductive systems of both male and female Norway and roof rats, which can lead to sustained reductions of the rat population. ContraPest is a liquid bait containing the active ingredients 4-vinylcyclohexene diepoxide (VCD) and triptolide. ContraPest limits the reproduction of male and female rats beginning with the first breeding cycle following consumption. Accordingly, it offers a new tool used in coordination with rodenticides as part of an integrated pest management program, or an alternative to traditional rodenticides altogether. It is an important option in the increasing number of jurisdictions that are restricting the use of second-generation anti-coagulant products. The registration process with the United States Environmental Protection Agency (the EPA) for ContraPest began on August 23, 2015. On August 2, 2016, the EPA granted an unconditional registration for ContraPest as a Restricted Use Product (RUP), due to the need for applicator expertise for deployment. On October 18, 2018, the EPA approved the removal of the RUP designation and was reclassified as a general-use pesticide. ContraPest is registered in all 50 states, 49 of which have approved the removal of the RUP designation, as well as the District of Columbia and five major U.S. territories. In certain cases, the company's registrations are conditional and require completion of testing. The company continues to actively seek to comply with these requirements. On March 10, 2022, the EPA granted a sub-label for ContraPest allowing for an alternative delivery system in a hanging bait station designed to target roof rat habitats and infestations, marketed as Elevate Bait. Integrated Pest Management (IPM) and Fertility Control The most effective, long-term way to manage rats is by using a combination of tools that work together to magnify the efficacy of the pest management protocol; IPM is based upon this concept. An effective IPM program needs to reduce the existing rat population while preventing the population from rebounding. Based on company field research, the addition of ContraPest to an IPM program has demonstrated improved efficacy of more than 90% with sustained population suppression. Maintaining a ContraPest program reduces the reproduction and therefore the risk of future population spikes, known as the rebound effect. Ongoing monitoring of the program locations has indicated that there has been no rebound in the rodent population from the low levels. ContraPest is a highly palatable liquid formulation that reduces fertility in both male and female rats. Rats require 10% of their body weight in water per day.The high-fat content and sweet taste of ContraPest promotes sustained consumption even when other sought-after food sources are present. In both field and laboratory settings, consumption of ContraPest occurs even in the presence of abundant water sources and plentiful food choices, including animal feed, trash and other options. Additionally, ContraPest does not cause illness in rats, and therefore, it does not change behavior or result in bait aversion. Other Applications While its proprietary technology is effective on rat species, the company's technology can be applied to other mammalian species. The company has explored and continues to evaluate fertility control in mice, feral dogs, and other species. This preliminary data indicates potential for the continued development of fertility control technology in general. The size of the rat control market is sufficient for the company's near-term focus. The company remains open to the potential to license its technology to other strategic partners to explore its applicability to other mammalian species. Business Strategy The company's strategies are end user awareness and adoption, and tailored value propositions. Marketing and Sales Approach ContraPest is differentiated in what is otherwise a very crowded rodenticide market. It is the only product registered with the EPA that restricts fertility in both male and female rats and is designed to be non-lethal. As first and second generation anti-coagulants come under increased scrutiny for bioaccumulation and impact on non-target species as they travel up the food chain, their use is being restricted or even banned in select areas across the United States and globally. These increasing restrictions and bans create an opportunity for ContraPest, as industry professionals are looking for effective tools to serve their customers and gain control of rat populations through nontraditional means. Because the pest industry in the United States has demonstrated a reluctance to adopt new technologies, the marketing of ContraPest has primarily been aimed at end-user awareness, creating pull through demand with Pest Management Providers (PMP) by applying pressure for PMPs to use ContraPest as part of their IPM. Additionally, within the company's target verticals, agribusiness, commercial, distributors, e-commerce, pest management, municipalities, and zoos and sanctuaries, many large targets employ internal pest management teams as opposed to contracting with service providers. For these reasons, the end-user is the company's primary target in order to grow market penetration for ContraPest. ContraPest is specifically designed to minimize exposure hazard for handlers and non-targeted species such as wildlife, livestock, and pets. ContraPest can be used as an anchor or enhancement for an IPM program, or as a stand-alone solution to decrease reliance on lethal control options. Three core sales channels drive revenue allowing the company to reach a wider customer base and target different segments of the market. e-Commerce: Because ContraPest is not a retail product, e-commerce provides a hub to push end-users for further education, as well as providing 24/7 availability for purchasing products and managing subscriptions. Field Sales: Field sales allows for personal interaction, consultation, and development of potential customers. Field sales representatives, in charge of regional territories across the United States, focus on the larger account segments, attending trade shows and educational opportunities within target verticals. Distributors and Resellers: Distributors and resellers serve as an expansion of the company's sales team, increasing its reach by leveraging the established networks and connections of these third-party businesses. Additionally, the logistics and marketing support offered through these partners reduces cost and effort required to expand the company's sales. The company's focus is successful commercialization of ContraPest in the United States. Aware of the global need for effective rat fertility control, it evaluates requests and inquiries for licensing and manufacturing ContraPest in other regions on a regular basis. There is a sustained focus on building strategic partnerships for future globalization of ContraPest. Other Potential Products The company has begun work on new formulations of ContraPest - particularly solid and semi-solid variants. Although solid bait is not essential to the company's near-term plans, the non-liquid formulations may expand the potential uses and applications of ContraPest. The company's plan is to accelerate the reformulation process through partnerships with others in the industry that will be able to give it access to proven technologies, thus reducing potential development time. Government Regulation and Product Approval In addition to the EPA registration of ContraPest in the United States, the company must obtain registration from the various state regulatory agencies prior to selling in each state. Intellectual Property and Other Proprietary Rights Patent Filings The company's intellectual property portfolio supporting ContraPest consists of nine international patent filings (in the United States, Europe, Canada, Brazil, Russia, Japan, Mexico, South Korea, and Australia) addressing the ContraPest compound. Claims directed toward the compound include composition-of-matter involving a diterpenoid epoxide or salts thereof in combination with an organic diepoxide, use claims for inducing follicle depletion and for reducing the reproductive capability of a mammalian animal or non-human mammalian population. Issued claims will have a patent term extending to 2033 or longer based on patent term determinations in each of the filing countries. The novelty of ContraPest extends to its method of field distribution and has required innovation to perfect the dosing of the company's product to rodents. The company has filed the U.S. and international patent applications covering its novel bait station device to deliver its rodent bait at individual bait sites that would, if issued, offer patent term protection through at least 2036. License Agreements The company has an exclusive patent license with the University of Arizona for background intellectual property that it plans to employ for future product development in the domestic animal fertility control market. The patent claims in the United States, Australia and New Zealand cover the use of 4-vinylcyclohexene diepoxide to deplete ovarian follicles in individual mammals and mammal populations. The license agreement, signed in 2005, will terminate with the last-to-expire patent claims, which have a term extending to 2026. Trade Secrets and Trademarks The company owns and maintains the ContraPest trademark and intend to register new trademarks for products from its evolving rodenticide product line and for products for mammalian species beyond rodentia. Research and Development The company's research and development expenses were $1.9 million for the year ended December 31, 2022. History SenesTech, Inc. was founded in 2004. The company was incorporated in Nevada in 2004 and reincorporated in Delaware in 2015.