SenesTech, Inc.

Good afternoon, and welcome to the SNES Tech first quarter fiscal year 2025 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. Please note, this event is being recorded. I would now like to turn the conference over to Robert Bloom with Listen Partners. Please go ahead. All right.

Thanks so much, and thank you all for joining us today to discuss the Nestec's first quarter 2025 financial results for the period ended March 31, 2025. With us on the call today are Joel Fruent, the company's chief executive officer, and Tom Chesterman, the company's chief financial officer. As the operator indicated at the conclusion of today's remarks, we will open the call for a question and answer session. If you dial into the conference call through the traditional teleconference line, you can press star, then one to ask a question. If you are listening through the webcast portal and would like to ask a question, you can submit your question through the ask a question feature in the webcast player. And if you're not able to get to your question today, we'll do our best to respond at a later date. 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, anticipated, 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 risks 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 and Exchange Commission. All forward-looking statements contained during this conference call speak only of the date 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 the 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 Fruent, Chief Executive Officer. Joel? Please proceed.

Thank you, Robert, and good afternoon, everyone. Thank you all for joining us today for our first quarter 2025 conference call. As you all can see from the press release, we continue to make remarkable strides transitioning and expanding customers towards our high-margin Evolve product line, including both our rat and mouse products. During the quarter, evolved revenue grew 40% compared to the year-ago period, driven by success in our e-commerce platforms, improved adoption by pest management professionals, and deployments in major U.S. cities. Perhaps more important, though, is that gross margins increased to nearly 65% during Q1 compared to just 33% last year. resulting in gross profit dollars increasing by an impressive 132%. Evolve continues to change the game for Synestec, and Evolve is changing the game in major U.S. cities, as we see deployments wrapping significantly across the United States. After the quarter closed, we announced deployment of Evolve Red in the Wicker Park Bucktown Special Service Area of Chicago. The new deployment in Wicker Park has crews installing bait boxes with evolved rats in alleys behind several major thoroughfares in the Chicago neighborhoods. As many of you have seen, the deployment has garnered extensive media coverage, and we actually have a dedicated informational website for the residents and business owners to see where deployments have occurred. Visit our website at www.evolverotanbirthcontrol.com backslash wickerpark to see our interactive map. Also in April, we began deployment in New York City following the approval in September of last year by the City Council to launch a rat contraceptive pilot program. Our team was in New York two weeks ago supporting the initial deployment, and it is going very well. Beyond New York and Chicago, we have also received orders from the City of Baltimore, Los Angeles County, many in the Boston area, and Waukesha, Wisconsin. Extended deployments in these municipalities should be key contributors to growth for us going forward. Finally, a major development, our pest control partner Pest Tech just started a large deployment in San Francisco. Our team was out there recently to help with the deployment, and it is a substantial opportunity. We are just now turning the corner on these large municipal opportunities, and it's very exciting news for us. Beyond the municipal deployments, we also continue to gain significant traction through our e-commerce platforms. In just the past 12 months, we have expanded our e-commerce presence from selling exclusively on our Synestek family of websites to offering Evolve on Amazon.com, Walmart.com, and TractorSupply.com. During Q1, e-commerce driven sales have increased by more than 107% due to these added locations. Enhanced website functionality on our own websites, as well as targeted marketing strategies. Evolved improved form factor, economical price point, proven efficacy, and lengthy shelf life have allowed for this to be much more conducive to e-commerce compared to our historical ContraPest product line. As our presence continues to expand, we will see e-commerce continue to substantially grow moving forward. With strong growth in municipal deployments, our e-commerce and international markets during Q1, which we expect to continue in the future. Another key driver we expect to contribute to growth later this year is our international operations. We believe we are tracking for a strong second half of the year with shipments planned for a number of new countries. To date, we have signed agreements for distribution of evolving 12 separate countries and territories, having just signed exclusive agreements in Indonesia and the Philippines. Approval and commercial product shipments have occurred in Hong Kong, the United Arab Emirates, the Maldives, and the Netherlands. We expect reorders for these in the coming quarters as well. Additionally, we have deployments expected for later this year in key markets including Australia and New Zealand following expected regulatory approvals there. Again, international has regulatory processes that need to be worked through, but when orders are placed, they're typically for larger container size orders that can significantly drive our growth. With strong progress, while strong progress has been made in municipal e-commerce and internationally, one area where we're not gaining as much progress as quickly as I hoped is brick and mortar retail. The process is lengthy. to achieve shelf space, and often, such as the case with Walmart, they want to see how your product performs online before committing to placing it in the store. So growth in e-commerce can actually be the proof point for brick and mortar retails in some ways. Progress is being made, though. With Ace Hardware, we began selling to individual stores. Recently, though, we have been getting orders from their regional service centers, also known as distribution centers. intended for sale in an ACE network. We are also getting orders from retailers' warehouses for use in the warehouses themselves. Let me come back to the topic of gross margins and gross profit dollars. As I mentioned at the beginning, our business has been truly transformed by Evolve. Evolve inherently carries gross margins higher than ContraPest, which has dramatically increased our blended margins to a new record of 65 percent during the current quarter. With a focus on achieving profitability, this is a key component. And beyond the gross margin and profit improvements, we continue to improve our overall operational efficiencies. As we announced in March, we have implemented additional initiatives designed to further reduce expenses by $2 million on an annualized basis. As the initiatives were implemented in late March, the financial improvement should be more evident during the quarters to come. 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. Put differently, we need revenue of just over $1.5 million quarterly to reach breakeven. A few large municipal or international orders coupled with the continued growth we have seen in e-commerce certainly puts that within our sight. With that, let me turn the call over to Tom to expand on the financials in more detail. I will then wrap up with a few comments before turning it over to questions. Tom?