SenesTech, Inc.

Good evening and welcome to the Synestek Reports third 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 star followed by zero on your telephone keypad. Please note this event is being recorded. I would now like to turn the conference over to Robert Bloom with Lithum Partners. Please go ahead.

All right. Thank you very much, Operator. And as you just mentioned, thank you, everyone, for joining us to discuss the NESTEC's third quarter 2025 financial results. And this is for the period ended September 30th, 2025. With us on the call today is Mr. Joel Fruent, the company's Chief Executive Officer, Mr. Tom Shesterman, the company's Chief Financial Officer. At the conclusion of today's prepared remarks, we will open the call for a question and answer session. 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. 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, They 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, 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 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 the results of the receipt of new information, the occurrence of future events, or otherwise. With that said, let me turn the call over to Joel Fruent, Chief Executive Officer of Synesthek. Joel, please proceed.

Thank you, Robert, and good afternoon, everyone. Thank you all for joining us today for our third quarter 2025 conference call. We once again had a very strong quarter with record quarterly revenues driven by the rapid adoption of our evolved product line, which is showing growth across nearly every one of our key distribution channels and market verticals. E-commerce continues to be our largest channel representing more than 50% of our revenue and was up 55% year over year. And as many of you saw, we had a very exciting announcement as our products are now available at Lowes.com. The intersection of our e-commerce and brick-and-mortar retail sales have the opportunity to be a significant growth driver for us moving forward, and Lowe's fits perfectly into that intersection. But as we have been communicating to you for the past year or so, our objective is clearly not to just grow at any cost. We need to reach profitability and believe we have the pathway to do so in the near term. Yes, high margin revenue growth will be the easiest pathway there, but efficiently managing our expenses will be an equal part of the equation, and we are doing just that. During the quarter, we had a robust 43% increase in year-over-year sales. Gross margins continued in the 63% range, and operating expenses were down 4% compared to last year, and down 12% sequentially. And note that we had more than $100,000 of one-time legal expenses during the quarter that, if removed, would have shown even further OPEX improvements. Overall, our adjusted EBITDA loss, which closely tracks our cash utilization, was the best in our company's history at $1.2 million. This compares favorably to $1.4 million last year in the most recent sequential quarter. With a continued focus on high-margin revenue growth operational efficiency and cost discipline, we are poised to achieve our profitability objectives. Given the strong progress we continue to make, we feel very comfortable with the cash position we have, which at the end of September was more than $10 million. We will continue to execute and make incremental progress towards our profitability objectives, and we see a potential path to the future that may not require further equity offerings. So that's the high-level overview of the quarter. Record revenues, strong gross margins, reduction in our operating expenses, all of those resulting in the best adjusted EBITDA in the company's history. And finally, a strong balance sheet, which will bridge us to profitability. Okay, let's transition to a few key activities that took place since we last spoke in August and some items we are working on, which will hopefully develop in the months to come. First off, as I mentioned a moment ago, our e-commerce business continues to show strong growth. Amazon continues to lead the way here with double-digit monthly growth. We continue to focus on being efficient with our advertising spend, ensuring that we don't spend during seasonally slower times for deployment. To that end, we slowed spends during late July and August and then re-ramped our ad spend in early September. We had a highly successful Labor Day special that really boosted our sales in the month of September and should set the stage for a strong Q4 from Amazon as well. Beyond Amazon, which represents about 50% of our e-commerce revenue, we also are seeing growth from our existing Synestec.com websites, as well as Walmart.com, HomeDepot.com, and TractorSupply.com. And we had the big announcement about Lowe's. that has started carrying our Evolve RAT product. This expansion represents a major milestone in both consumer accessibility and retail distribution possibilities for the company. Launching on Lowes.com is a key component of our planned expansion through the broader retail channels. As we have talked about in the past, many retailers start new products on their e-commerce platform to assess overall potential and then transition to having them placed in their brick-and-mortar locations. We have a compelling case with Lowe's, Walmart, Home Depot, and others that as the e-commerce side of the equation gains traction, we may then expand to in-store offerings in the future. We look forward to this being a large opportunity for us moving forward in the near future. During the quarter, our retail sales were up 254% compared to the year-ago period, driven by expanded adoption that more than doubled its coverage with our ACE hardware, And follow-on orders from Bradley Caldwell, a wholesaler serving over 8,000 retail locations in the Northeast. Beyond e-commerce and retail, we continue to see adoption of our solutions within the municipal markets as well. During the third quarter, municipal revenue grew 139% year-over-year, driven by expanded deployments in New York City, Chicago, and Baltimore, and reflecting increased adoption in diverse urban settings. In September, we announced that Evolve Rat Birth Control would be deployed in another of Chicago's special service areas, this time SSA number 48, or the Old Town area. The new initiative, led by the Old Town Merchants and Residents Association, is focused on improving sanitation and public health in one of Chicago's most historic and vibrant neighborhoods. Planned deployments include strategic alleyways throughout the SSA, which spans key commercial and residential areas. SSA number 33, or the Wicker Park Bucktown Special Service Area of Chicago, has expanded deployments in their area as well. We are working with the other 53 SSAs as they seek to implement an evolved program. On a recent visit to Wicker Park Bucktown, a customer remarked, We now see in a week the rat activity we used to see in a day. It's good to have such simple articulation of EVOLVE's efficacy. These current programs continue to focus on controlled deployments in high-impact areas, laying the groundwork for potential large-scale expansion. And further, the overall awareness of these municipal deployments continue to have a positive impact on other channels, such as retail, e-commerce, and pest control distribution. In New York City, our rat contraceptive pilot program is showing exceptional results. Our team has been in New York supporting the deployment, where they continue to note 100 percent consumption of Evolve. We are working with New York City for reorders to advance the trial. In addition, we are working with local distributors to arrange for long-term supply to the city. While many of the headlines come from e-commerce channels such as Amazon, Home Depot, Walmart, Lowe's, etc., or our deployments in hardware retailers like Ace Hardware, or municipal deployments in New York City or Chicago, the continued utilization of our solutions from pest management professionals, or PMPs, continues. Representing nearly 20% of our third quarter revenues, PMP revenue was up 72% sequentially from the second quarter, as a wide variety of PMP partners are leveraging the unique attributes of fertility control across a wide range of customer applications, including theme parks. One of these theme parks is internationally known and is now in their third monthly order cycle. Our diverse distribution channel was clearly demonstrated during the quarter with near across-the-board growth from our various market verticals and distribution channels. With multiple shots on goal, each of which has shown stable growth and strong upside characteristics, such as a large deployment in a major retailer or a large-scale deployment in a missile area, we feel very good about the future. Before I turn to Tom to review the financials in more detail, With the growth we expect, we have taken important steps to make sure we are structurally ready to meet this growth. Last quarter, we took the important step to increase our production capacity to meet future demand. We have officially completed our move into our new larger facility in the Phoenix area with new automated capabilities designed to increase efficiency. So with that being said, let me turn the call over to Tom to review the financials in more detail. I will then make a few closing comments before we turn it over to your questions. Tom?