SenesTech, Inc.

Good day, and welcome to the Stennis Tech fourth quarter and fiscal year 2024 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad, and to withdraw your question, please press star then two. Please note, today's event is being recorded. And now I'd like to turn the conference over to Robert Bloom with Lithium Partners. Please go ahead.

All right, great. Thanks so much, and thank you all for joining us today. As the operator mentioned, to discuss Synestec's fourth quarter and full year 2024 financial results, and this for the period ended December 31, 2024. With us on the call representing the company today is Mr. Joel Fruent, the company's chief executive officer, Mr. Tom Chesterman, the company's chief financial officer. At the conclusion of today's prepared remarks, we'll open the call for a question and answer session. If you dialed into the call through the traditional teleconference line, as the operator indicated, please press star then one to ask a question. And if you are listening through the webcast player and would like to ask a question, you can submit your question through the ask a question feature in the webcast player. Before we begin with prepared remarks, we submit for the record the following statement. Statements made by the management team of SNES Tech during the course of this conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. And such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results, or strategies and are generally preceded by words such as may, future, plan or planned, will or should, expected, anticipates, draft, eventually, or projected. Listeners are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risk that actual results may differ materially from those projected in the forward-looking statements. as a result of various factors and other risks identified in the company's filings with the Securities Exchange Commission. All forward-looking statements contained during this conference call speak only as of the date in which they were made and are based on management's assumptions and estimates as of such date. The company does not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events, or otherwise. All right, with that said, let me turn the call over to Joel Pruitt, Chief Executive Officer. Joel, please proceed.

Thank you, Robert, and good afternoon, everyone. Thank you all for joining us today for our fourth quarter and year-end conference call. So let's jump right into it. As you saw in the press release, we concluded a truly transformational year for Synestec with record financial results across the board, including quarterly revenues, which were up 70%, and quarterly gross profit margins of 61%. which, when coupled with our improvement in our operational efficiencies through cost reductions, resulted in our smallest quarterly adjusted EBITDA loss in company history as we advanced our progress towards profitability. On top of the record results and efficiencies already implemented to date, we are also implementing additional initiatives effective immediately, which are set to further reduce cash burn by $2 million on an annualized basis. These new savings, coupled with the higher gross margins from Evolve, are anticipated to reduce the revenue threshold for cash flow breakeven to $7 million annually compared to $12 million historically. I will ask Tom to expand more on some of these new initiatives to lower costs in a moment. But let me state up front that our goal is to achieve cash flow breakeven in the near term, which we believe serves as a significant inflection point for the company. To that end, as Tom will touch on momentarily, we believe the strategic financing we just completed this week will provide us the capital necessary to accelerate our progress to cash flow breakeven. But first, back to the dramatically improved financial results announced this past quarter and the progress it highlights towards that goal of cash flow breakeven. The improvements are being driven almost entirely by the introduction of our Evolve soft bait fertility control solution, which was launched a year ago. Its improved form factor, economical price point, proven efficacy, and lengthy shelf life have allowed us to expand distribution into new retail customers and in markets. Evolve continues to be a game changer for Synestec as well as for the industry. As we have communicated to you for a few quarters now, we have identified a number of key growth objectives that will allow us to continue the positive trajectory we are on. Let me take a moment to walk through the updates on each of these. First, during the year, we successfully launched Evolve Rat and Evolve Mouse on numerous online retailers, including Amazon.com, Walmart.com, TractorSupply.com, and DIYPestControl.com. Inclusive of the company's online store at syneztech.com, overall e-commerce sales increased 206% during this year's fourth quarter compared to last year's fourth quarter and represented 55% of Q4 2024 revenue. We are still in the early stages of reach here with tractorsupply.com coming on in just the last few weeks. We also have seen a nice uptick in our municipal programs. As we discussed briefly last quarter, the New York City Council has approved a bill to implement a rat contraception pilot program. I'm pleased to confirm that we received an order from New York City in December 2024 for Evolve Rat, and that will be shipped in April. The product is initially expected to be deployed in a few locations throughout the city and expand from there based on success parameters being met. Beyond the New York City government deployment, we also signed an agreement with Bug Off Pest Control in New York City, as we work directly with customers to implement contraceptive, contraception into their IPM programs. And beyond New York, in January of this year, the City of Baltimore joined other major cities on the Radius Cities list, such as Los Angeles, by integrating Evolve into their integrated pest management strategy. The city placed a substantial initial order for Evolve and is currently deploying the product this quarter as part of its integrated pest management program. Programs have also just begun and orders received in Chicago and the Boston area. While everyone loves to talk about the municipal orders, there are a number of other in-market customers that can be significant growth drivers for us going forward. One of these is the warehousing and distribution sector. Just last week, we announced the shipment of a substantial order to one of the largest warehousing and distribution companies in the Midwest. As you might imagine, the warehousing in the United States is huge. Controlling rodent infestations in facilities that store food supplies present unique challenges, as the use of traditional poisons is often not feasible due to safety concerns. Evolve offers a humane and effective alternative, ensuring the integrity of stored products while maintaining compliance with industry regulations. We are excited to expand into this exciting new vertical. Another key area for us has been to expand our reach internationally. Again, Evolve with its soft bait form factor has permitted this to occur. To date, we have signed distribution agreements in 10 separate countries to distribute EVAL, including a letter of intent signed with Esmar Corporation in India just a few weeks ago. As we have communicated in the past, international distribution often requires country-specific registrations efforts. To date, we have obtained approval and shipped product to Hong Kong, the United Emirates, the Netherlands, and the Maldives. Our distributors in Australia, New Zealand, and India are in the final stages, with large orders already set to be shipped upon approval for both countries. Others continue to work through the registration process, and we expect further approvals during the remainder of the year. Another key initiative we have been working on has been brick and mortar retail chains. During the year, we launched Evolve in Ace Hardware stores, and brought on manufacturers' representative agencies targeting retail, co-op, and big box chains to inventory evolve in their stores. The process is largely driven by longer purchasing cycles by retailers with initial e-commerce proof points considered key determining factors. We just returned from events for Mid-States Distributing, ACE Hardware, and Orgo Hardware Distribution. We saw enthusiasm in orders from individual stores, But more importantly, we are finalizing plans with both to stock their warehouses as a standard product. Our progress on e-commerce and the individual store orders positively influence these discussions. So those are the key drivers that led to the rapid growth this past year and the fourth quarter in particular. Growth in e-commerce, expansion into municipal markets, expansion into new end markets, and expansion internationally. Our team continues to aggressively pursue each of these areas and others to bring our evolved solution to the market. And as I stated at the beginning, as this growth continues, which when coupled with higher gross margins and lower operating expenses, it positions us well to achieve our goal of cash flow breakeven. With that, let me turn the call over to Tom Chesterman, who's going to review the financials in more detail. I will then wrap up with a few closing comments before taking questions. Tom?