SenesTech, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable improvements in revenue and gross profit compared to the same periods in 2023. Revenues for the third quarter reached $482,000, a 34% increase from $360,000 in Q3 2023. For the nine months, revenues totaled $1,356,000, up 51% from $898,000 in the prior year. The growth is primarily attributed to the successful launch of the Evolve product line, which accounted for approximately 68% of Q3 revenues and 63% of revenues for the nine-month period.

Gross profit for Q3 2024 was $315,000, reflecting a gross margin of 65.4%, compared to $176,000 and a 48.8% margin in Q3 2023. For the nine months, gross profit was $699,000, with a margin of 51.5%, up from $410,000 and a 45.7% margin in the same period last year. The increase in gross profit margin was influenced by a higher proportion of sales to distributors and a reduction in the cost of sales.

Operating expenses decreased to $1,862,000 for Q3 2024 from $2,127,000 in Q3 2023, and for the nine months, they fell to $5,691,000 from $6,406,000. This reduction was mainly due to lower personnel-related costs resulting from a reduced headcount and decreased stock-based compensation. Research and development expenses increased slightly, reflecting a realignment of personnel and higher facility costs.

Despite these improvements, SenesTech reported a net loss of $1,513,000 for Q3 2024, an improvement from a loss of $1,947,000 in Q3 2023. For the nine months, the net loss was $4,929,000, down from $5,977,000 in the same period last year. The company’s accumulated deficit as of September 30, 2024, stood at $134.8 million.

As of September 30, 2024, cash and cash equivalents were $2,518,000, a decrease from $5,395,000 at the end of 2023. The company anticipates that its current cash, along with expected revenue and potential equity sales, will be sufficient to fund operations for at least the next four months. However, additional financing will be necessary to achieve anticipated revenue and margin targets.

In July 2024, SenesTech executed a 1-for-10 reverse stock split and has been exploring strategic partnerships to enhance market penetration. The company continues to focus on building its sales and marketing infrastructure to support the commercialization of its fertility control products.