The impact of closing the eat-in trade for restaurants and in store reductions in produce sales at supermarkets has reduced the supply of food in close proximity to the eateries. As a result the rats have had to expand the geographical range in which they forage. Since the number of bait stations depend on the area being treated this is an increase in the available market for ContraPest. Current customers will have to buy more stations to keep the rat population under control.
The impact of the contraceptive is very good, with over 85% reductions in rat populations in several studies.
Revenue in the first quarter increased by 95% on a year over year basis. The operating loss was in line with our estimate but it is becoming more difficult to reach the potential customers. Existing customers have not reduced their orders but PMP orders have been slow to materialize. Direct to consumer sales have shown encouraging results.
The overall impact of COVID-19 on SenesTech (NASDAQ:SNES) is a reduction in the potential applications of ContraPest. As a result the company in a cost reduction mode. Since SG&A is the largest expense area headcount control and salary reductions have been implemented. The recent moves to add cash have been successful and SenesTech believes in can survive on the current (May 2020) burn rate well into 2021.
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