(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Large accelerated filer | o | Accelerated filer | o | ||||||||
x | Smaller reporting company | ||||||||||
Emerging growth company |
September 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | (unaudited) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Prepaid expenses | |||||||||||
Inventory, net | |||||||||||
Total current assets | |||||||||||
Right to use assets, operating leases | |||||||||||
Property and equipment, net | |||||||||||
Other noncurrent assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses | |||||||||||
Current portion of operating lease liability | |||||||||||
Current portion of note payable | |||||||||||
Deferred revenue | |||||||||||
Total current liabilities | |||||||||||
Operating lease liability, less current portion | |||||||||||
Note payable, less current portion | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (see notes) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues, net | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Loss from operations | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest expense | ( | ||||||||||||||||||||||
Miscellaneous expense, net | ( | ( | |||||||||||||||||||||
Other income (expense), net | ( | ( | |||||||||||||||||||||
Net loss and comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted average shares outstanding - basic and diluted | |||||||||||||||||||||||
Net loss per share - basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation | |||||||||||
Bad debt expense | ( | ||||||||||
Loss on sale of property and equipment | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ||||||||||
Prepaid expenses | ( | ( | |||||||||
Inventory | |||||||||||
Other assets | ( | ||||||||||
Accounts payable | ( | ||||||||||
Accrued expenses | |||||||||||
Deferred revenue | ( | ||||||||||
Net cash used in operating activities | ( | ( | |||||||||
Cash flows from investing activities: | |||||||||||
Purchase of property and equipment | ( | ( | |||||||||
Proceeds received from sale of property and equipment | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuances of common stock, net | |||||||||||
Proceeds from (repayments of) notes payable, net | ( | ||||||||||
Repayments of finance lease obligations | ( | ||||||||||
Payment of employee withholding taxes related to share based awards | ( | ||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
Supplemental cash flow information is as follows: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes | |||||||||||
Non-cash investing and financing activities: | |||||||||||
Note payable incurred for the purchase of certain equipment | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
Accounts receivable | $ | $ | |||||||||
Allowance for uncollectible accounts | ( | ( | |||||||||
Accounts receivable, net | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Balance as of beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Increase in provision | |||||||||||||||||||||||
Amounts written off, less recoveries | ( | ( | ( | ( | |||||||||||||||||||
Balance as of end of period | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Raw materials | $ | $ | |||||||||
Work in progress | |||||||||||
Finished goods | |||||||||||
Total inventory | |||||||||||
Less: reserve for obsolescence | ( | ( | |||||||||
Inventory, net | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Balance as of beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Increase in reserve | |||||||||||||||||||||||
Amounts relieved | ( | ( | |||||||||||||||||||||
Balance as of end of period | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Software licenses | |||||||||||
Professional services | |||||||||||
Insurance | |||||||||||
Patents | |||||||||||
Marketing programs and conferences | |||||||||||
Other | |||||||||||
Total prepaid expenses | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Research and development equipment | $ | $ | |||||||||
Office and computer equipment | |||||||||||
Autos | |||||||||||
Furniture and fixtures | |||||||||||
Leasehold improvements | |||||||||||
Total in service | |||||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Total in service, net | |||||||||||
Construction in progress | |||||||||||
Property and equipment, net | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Compensation, severance and related benefits | $ | $ | |||||||||
Legal services | |||||||||||
Product warranty | |||||||||||
Personal property and franchise tax | |||||||||||
Other | |||||||||||
Total accrued expenses | $ | $ |
2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
Total principal payments | ||||||||
Less: current portion of note payable | ( | |||||||
Note payable, less current portion | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Finance lease cost: | |||||||||||||||||||||||
Amortization of right-of-use asset | $ | $ | $ | $ | |||||||||||||||||||
Interest on lease liability | |||||||||||||||||||||||
Total finance lease cost | $ | $ | $ | $ |
2023 | $ | |||||||
2024 | ||||||||
Total operating lease payments | ||||||||
Less: imputed interest | ( | |||||||
Total operating lease liabilities | $ |
Number of Options | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Term (years) | ||||||||||||||||||
Three months ended September 30, 2023: | ||||||||||||||||||||
Outstanding as of June 30, 2023 | $ | |||||||||||||||||||
Granted | — | |||||||||||||||||||
Exercised | — | |||||||||||||||||||
Forfeited | ( | — | ||||||||||||||||||
Expired | — | |||||||||||||||||||
Outstanding as of September 30, 2023 | (1) | |||||||||||||||||||
Nine months ended September 30, 2023: | ||||||||||||||||||||
Outstanding as of December 31, 2022 | ||||||||||||||||||||
Granted | ||||||||||||||||||||
Exercised | — | |||||||||||||||||||
Forfeited | ( | — | ||||||||||||||||||
Expired | ( | — | ||||||||||||||||||
Outstanding as of September 30, 2023 | (1) | |||||||||||||||||||
Exercisable as of September 30, 2023 |
Expected volatility | % | ||||
Expected dividend yield | |||||
Expected term (in years) | |||||
Risk-free interest rate | % |
Number of Units | Weighted Average Grant-Date Fair Value Per Unit | ||||||||||
Unvested balance as of December 31, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | |||||||||||
Unvested balance as of September 30, 2023 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Research and development | $ | $ | $ | $ | |||||||||||||||||||
Selling, general and administrative (1) | |||||||||||||||||||||||
Total stock-based compensation expense | $ | $ | $ | $ |
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total | ||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||
2023 | |||||||||||||||||||||||||||||
Balances as of December 31, 2022 | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||
Issuance of common stock upon exercise of warrants | ( | — | |||||||||||||||||||||||||||
Issuance of common stock for service | — | — | |||||||||||||||||||||||||||
Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes | — | ( | — | ( | |||||||||||||||||||||||||
Net loss | — | — | — | ( | ( | ||||||||||||||||||||||||
Balances as of March 31, 2023 | ( | ||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||
Issuance of common stock, net of issuance costs | — | ||||||||||||||||||||||||||||
Net loss | — | — | — | ( | ( | ||||||||||||||||||||||||
Balances as of June 30, 2023 | ( | ||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||
Modification of terms related to certain warrants | — | — | |||||||||||||||||||||||||||
Issuance of common stock upon exercise of warrants, net | — | — | |||||||||||||||||||||||||||
Net loss | — | — | — | ( | ( | ||||||||||||||||||||||||
Balances as of September 31, 2023 | $ | $ | ( | $ | |||||||||||||||||||||||||
2022 | |||||||||||||||||||||||||||||
Balances as of December 31, 2021 | $ | $ | ( | $ | |||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||
Issuance of common stock for service | — | — | |||||||||||||||||||||||||||
Net loss | — | — | — | ( | ( | ||||||||||||||||||||||||
Balances as of March 31, 2022 | ( | ||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||
Issuance of common stock for service | — | — | |||||||||||||||||||||||||||
Net loss | — | — | — | ( | ( | ||||||||||||||||||||||||
Balances as of June 30, 2022 | ( | ||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||
Net loss | — | — | — | ( | ( | ||||||||||||||||||||||||
Balances as of September 30, 2022 | $ | $ | ( | $ |
Shares | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Term (years) | |||||||||||||||
Outstanding as of December 31, 2022 | $ | ||||||||||||||||
Issued | |||||||||||||||||
Exercised | ( | — | |||||||||||||||
Expired | ( | — | |||||||||||||||
Outstanding as of September 30, 2023 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Common stock warrants | |||||||||||||||||||||||
Stock options | |||||||||||||||||||||||
Restricted stock units | |||||||||||||||||||||||
Three Months Ended September 30, | % Increase (Decrease) | Nine Months Ended September 30, | % Increase (Decrease) | ||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Revenues, net | $ | 360 | $ | 250 | 44 | % | $ | 898 | $ | 722 | 24 | % | |||||||||||||||||||||||
Cost of sales | 184 | 128 | 44 | % | 488 | 374 | 30 | % | |||||||||||||||||||||||||||
Gross profit | 176 | 122 | 44 | % | 410 | 348 | 18 | % | |||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Research and development | 379 | 452 | (16) | % | 1,147 | 1,399 | (18) | % | |||||||||||||||||||||||||||
Selling, general and administrative | 1,748 | 2,289 | (24) | % | 5,259 | 6,473 | (19) | % | |||||||||||||||||||||||||||
Total operating expenses | 2,127 | 2,741 | (22) | % | 6,406 | 7,872 | (19) | % | |||||||||||||||||||||||||||
Loss from operations | (1,951) | (2,619) | (26) | % | (5,996) | (7,524) | (20) | % | |||||||||||||||||||||||||||
Other income (expense), net | 4 | (27) | (115) | % | 19 | (23) | (183) | % | |||||||||||||||||||||||||||
Net loss | $ | (1,947) | $ | (2,646) | (26) | % | $ | (5,977) | $ | (7,547) | (21) | % |
Three Months Ended September 30, | Increase (Decrease) | Nine Months Ended September 30, | Increase (Decrease) | ||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Personnel (including stock-based compensation) | $ | 231 | $ | 284 | $ | (53) | $ | 687 | $ | 787 | $ | (100) | |||||||||||||||||||||||
Professional fees | 34 | 68 | (34) | 112 | 216 | (104) | |||||||||||||||||||||||||||||
Depreciation | 28 | 24 | 4 | 84 | 103 | (19) | |||||||||||||||||||||||||||||
Facilities | 28 | 29 | (1) | 79 | 82 | (3) | |||||||||||||||||||||||||||||
Other | 58 | 47 | 11 | 185 | 211 | (26) | |||||||||||||||||||||||||||||
Total | $ | 379 | $ | 452 | $ | (73) | $ | 1,147 | $ | 1,399 | $ | (252) |
Three Months Ended September 30, | Increase (Decrease) | Nine Months Ended September 30, | Increase (Decrease) | ||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Personnel (including stock-based compensation) | $ | 880 | $ | 952 | $ | (72) | $ | 2,673 | $ | 3,137 | $ | (464) | |||||||||||||||||||||||
Professional fees | 365 | 639 | (274) | 1,236 | 1,539 | (303) | |||||||||||||||||||||||||||||
Insurance | 121 | 143 | (22) | 299 | 454 | (155) | |||||||||||||||||||||||||||||
Marketing | 81 | 261 | (180) | 199 | 506 | (307) | |||||||||||||||||||||||||||||
Travel and entertainment | 53 | 46 | 7 | 180 | 152 | 28 | |||||||||||||||||||||||||||||
Facilities | 39 | 38 | 1 | 116 | 116 | — | |||||||||||||||||||||||||||||
Other | 209 | 210 | (1) | 556 | 569 | (13) | |||||||||||||||||||||||||||||
Total | $ | 1,748 | $ | 2,289 | $ | (541) | $ | 5,259 | $ | 6,473 | $ | (1,214) |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash and cash equivalents, beginning of period | $ | 4,775 | $ | 9,326 | |||||||
Net cash provided by (used in): | |||||||||||
Operating activities | (5,547) | (6,339) | |||||||||
Investing activities | (114) | (163) | |||||||||
Financing activities | 3,031 | (32) | |||||||||
Decrease in cash and cash equivalents | (2,630) | (6,534) | |||||||||
Cash and cash equivalents, end of period | $ | 2,145 | $ | 2,792 |
Exhibit Number | Description | |||||||
4.33* | ||||||||
10.29* | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.INS | Inline XBRL Instance Document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
SENESTECH, INC. | ||||||||
Date: November 9, 2023 | By: | /s/ Joel L. Fruendt | ||||||
Joel L. Fruendt | ||||||||
President and Chief Executive Officer | ||||||||
Date: November 9, 2023 | By: | /s/ Thomas C. Chesterman | ||||||
Thomas C. Chesterman | ||||||||
Executive Vice President, Chief Financial Officer, Treasurer and Secretary | ||||||||
Dated: November 9, 2023 | /s/ Joel L. Fruendt | ||||
Joel L. Fruendt | |||||
President and Chief Executive Officer |
Dated: November 9, 2023 | /s/ Thomas C. Chesterman | ||||
Thomas C. Chesterman | |||||
Executive Vice President, Chief Financial Officer, Treasurer and Secretary |
Dated: November 9, 2023 | /s/ Joel L. Fruendt | ||||
Joel L. Fruendt | |||||
President and Chief Executive Officer |
Dated: November 9, 2023 | /s/ Thomas C. Chesterman | ||||
Thomas C. Chesterman | |||||
Executive Vice President, Chief Financial Officer, Treasurer and Secretary |
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 5,899,060 | 809,648 |
Common stock, shares outstanding (in shares) | 3,279,485 | 809,648 |
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Statement [Abstract] | ||||
Revenues, net | $ 360 | $ 250 | $ 898 | $ 722 |
Cost of sales | 184 | 128 | 488 | 374 |
Gross profit | 176 | 122 | 410 | 348 |
Operating expenses: | ||||
Research and development | 379 | 452 | 1,147 | 1,399 |
Selling, general and administrative | 1,748 | 2,289 | 5,259 | 6,473 |
Total operating expenses | 2,127 | 2,741 | 6,406 | 7,872 |
Loss from operations | (1,951) | (2,619) | (5,996) | (7,524) |
Other income (expense): | ||||
Interest income | 4 | 1 | 19 | 4 |
Interest expense | 0 | 0 | 0 | (1) |
Miscellaneous expense, net | 0 | (28) | 0 | (26) |
Other income (expense), net | 4 | (27) | 19 | (23) |
Net loss | (1,947) | (2,646) | (5,977) | (7,547) |
Comprehensive loss | $ (1,947) | $ (2,646) | $ (5,977) | $ (7,547) |
Weighted average shares outstanding - basic (in shares) | 4,176,592 | 610,648 | 3,037,790 | 610,578 |
Weighted average shares outstanding - diluted (in shares) | 4,176,592 | 610,648 | 3,037,790 | 610,578 |
Net loss per share - basic (in dollars per share) | $ (0.47) | $ (4.33) | $ (1.97) | $ (12.36) |
Net loss per share - diluted (in dollars per share) | $ (0.47) | $ (4.33) | $ (1.97) | $ (12.36) |
BASIS OF PRESENTATION |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Nature of Business SenesTech, Inc. (subsequently referred to in this report as “we,” “us,” “our,” or “our company”) was incorporated in the state of Nevada in July 2004. On November 12, 2015, we subsequently reincorporated in the state of Delaware. Our corporate headquarters and manufacturing site are in Phoenix, Arizona. We have developed and are commercializing a global, proprietary technology for managing animal pest populations, initially rat populations, through fertility control. Our first product is known as ContraPest®. ContraPest is a liquid bait containing the active ingredients 4-vinylcyclohexene diepoxide and triptolide. ContraPest limits reproduction of male and female rats beginning with the first breeding cycle following consumption. ContraPest is being marketed for use in controlling Norway and roof rat populations. In addition to the U.S. Environmental Protection Agency registration of ContraPest, we must obtain registration from the various state regulatory agencies prior to selling in each state. To date, we have received registration for ContraPest in all 50 states and the District of Columbia, 49 of which have approved the removal of the Restricted Use designation, as well as the District of Columbia and five major U.S. territories. We are pursuing additional products including EvolveTM, a soft bait containing the active ingredient cottonseed oil. Evolve limits reproduction of male and female rats after one to two breeding cycles following consumption. Evolve is being developed as a minimum risk pesticide under the U.S. Environmental Protection Agency Federal Insecticide, Fungicide, and Rodenticide Act, Section 25(b). For further information see Note 10. Going Concern Our condensed financial statements as of September 30, 2023 were prepared under the assumption that we would continue as a going concern. The reports of our independent registered public accounting firm that accompanies our financial statements for each of the years ended December 31, 2022 and December 31, 2021 contain a going concern qualification in which such firm expressed substantial doubt about our ability to continue as a going concern, based on the financial statements at that time. Specifically, we have incurred operating losses since our inception, and we expect to continue to incur significant expenses and operating losses for the foreseeable future. These prior losses and expected future losses have had, and will continue to have, an adverse effect on our financial condition. If we encounter continued issues or delays in the commercialization of fertility control products, our expected future losses could have an adverse effect on our financial condition and negatively impact our ability to fund continued operations, obtain additional financing in the future and continue as a going concern. There are no assurances that such financing, if necessary, will be available to us at all or will be available in sufficient amounts or on reasonable terms. Our financial statements do not include any adjustments that may result from the outcome of this uncertainty. If we are unable to generate additional funds in the future through additional financings, sales of our products, licensing fees, royalty payments or from other sources or transactions, we will exhaust our resources and will be unable to continue operations. Liquidity and Capital Resources Since our inception, we have sustained significant operating losses in the course of our research and development and commercialization activities and expect such losses to continue for the near future. We have generated limited revenue to date from product sales, research grants and licensing fees received under a former license agreement. We have primarily funded our operations to date through the sale of equity securities, including convertible preferred stock, common stock and warrants to purchase common stock. We have also raised capital through debt financing, consisting primarily of convertible notes and government loan programs, and, to a lesser extent, payments received in connection with product sales, research grants and licensing fees. As of September 30, 2023, we had an accumulated deficit of $128.2 million and cash and cash equivalents of $2.1 million. Our ultimate success depends upon the outcome of a combination of factors, including the following: (i) successful commercialization of fertility control products and maintaining and obtaining regulatory approval of our products and product candidates; (ii) market acceptance, commercial viability and profitability of fertility control products and other products; (iii) the ability to market our products and establish an effective sales force and marketing infrastructure to generate significant revenue; (iv) the success of our research and development; (v) the ability to retain and attract key personnel to develop, operate and grow our business; and (vi) our ability to meet our working capital needs. Based upon our current operating plan, we expect that cash and cash equivalents at September 30, 2023, in combination with anticipated revenue and any additional sales of our equity securities, will be sufficient to fund our current operations for at least the next three months. While we have evaluated and continue to evaluate our operating expenses and concentrate our resources toward the successful commercialization of fertility control products in the United States, additional financing will be needed before achieving anticipated revenue targets and margin targets. If we are unable to raise necessary capital through the sale of our securities, we may be required to take other measures that could impair our ability to be successful and operate as a going concern. In any event, additional capital is needed in order to fund our operating losses and research and development activities before we become profitable. We may never achieve profitability or generate positive cash flows, and unless and until we do, we will continue to need to raise capital through equity or debt financing. If such equity or debt financing is not available at adequate levels or on acceptable terms, we may need to delay, limit or terminate commercialization and development efforts or discontinue operations. Condensed Financial Statements Our accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with the U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, the unaudited condensed financial statements include all material adjustments, all of which are of a normal and recurring nature, necessary to present fairly our financial position as of September 30, 2023, and our operating results and cash flows for the three- and nine-month periods ended September 30, 2023 and 2022. The accompanying financial information as of December 31, 2022 is derived from audited financial statements. Interim results are not necessarily indicative of results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 17, 2023. Recent Accounting Pronouncements There have been no new accounting pronouncements not yet effective or adopted in the current year that we believe have a significant impact, or potential significant impact, to our condensed financial statements. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and classification of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The significant estimates in our financial statements include the valuation of inventory, common stock warrants, and stock-based awards, such as stock options and restricted stock units. Actual results could differ from such estimates. Comprehensive Loss We have no other comprehensive income items for the periods presented. As a result, our net loss and comprehensive loss were the same for the periods presented and a separate statement of comprehensive loss is not included in the accompanying condensed financial statements. Reclassification To conform with the 2023 presentation, we have reclassified the Loss on sale of property and equipment of $28,000 and Proceeds received from sale of property and equipment of $4,000 from Purchases of property and equipment in the condensed statement of cash flows for the nine months ended September 30, 2022. These reclassifications had no impact on our condensed statement of operations and comprehensive loss for the nine months ended September 30, 2022.
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BALANCE SHEET COMPONENTS |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS Cash and Cash Equivalents Highly liquid investments with maturities of three months or less as of the date of acquisition are classified as cash equivalents, of which we had $2.1 million and $4.8 million as of September 30, 2023 and December 31, 2022, respectively, included within cash and cash equivalents in the condensed balance sheets. Accounts Receivable, Net Accounts receivable, net consisted of the following (in thousands):
The following was the activity in the allowance for uncollectible accounts (in thousands):
Inventory, net Inventory, net consisted of the following (in thousands):
The following was the activity in the reserve for obsolescence (in thousands):
Prepaid Expenses Prepaid expenses consisted of the following (in thousands):
Property and Equipment, Net Property and equipment, net consisted of the following (in thousands):
Accrued Expenses Accrued expenses consisted of the following (in thousands):
Note Payable In August 2023, we arranged financing for the purchase of certain equipment. The note payable has an annual interest rate of 9.1% with a term of 5 years and is secured by the underlying equipment. As of September 30, 2023, future principal payments were as follows (in thousands):
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTSThe carrying amounts of our financial instruments, including accounts payable and accrued liabilities, approximate fair value due to their short maturities. Note payable is recorded at amortized cost, which approximates fair value. |
LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES We have operating leases for our corporate headquarters and our manufacturing and research facility, which expire in 2024. We were obligated under finance leases for certain research and computer equipment, of which the last arrangement expired in June 2022. The components of lease cost were as follows (in thousands):
As of September 30, 2023, maturities of operating lease liabilities were as follows (in thousands):
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LEASES | LEASES We have operating leases for our corporate headquarters and our manufacturing and research facility, which expire in 2024. We were obligated under finance leases for certain research and computer equipment, of which the last arrangement expired in June 2022. The components of lease cost were as follows (in thousands):
As of September 30, 2023, maturities of operating lease liabilities were as follows (in thousands):
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STOCK-BASED COMPENSATION |
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION In 2018, our stockholders approved the adoption of the SenesTech, Inc. 2018 Equity Incentive Plan (the “2018 Plan”). The 2018 Plan has since been amended and restated on certain occasions, most recently on June 26, 2023, when our stockholders approved an increase to the total number of authorized shares to 848,614 shares. Stock options are generally issued with a per share exercise price equal to the fair market value of our common stock at the date of grant. Options granted generally vest immediately, or ratably over a 12- to 36-month period coinciding with their respective service periods, with terms generally of five years. Certain stock option awards provide for accelerated vesting upon a change in control. As of September 30, 2023, we had 496,330 shares of common stock available for issuance under the 2018 Plan. Stock Options The following table presents the outstanding stock option activity:
(1) Includes options related to 99,000 shares that are inducement awards and not granted under the 2018 Plan. The weighted average grant date fair value of options granted during the nine months ended September 30, 2023 was $1.24 per share, based on the following assumptions used in the Black-Scholes option pricing model:
The expected volatility assumption is based on the calculated volatility of our common stock at the date of grant based on historical prices over the most recent period commensurate with the term of the award. The expected dividend yield assumption is based on our history and expected dividend payouts: we have not, and do not expect to, pay dividends. The expected term assumption is the contractual term of the options for non-employees. The risk-free interest rate assumption is determined using the U.S. treasury yields for bonds with a maturity commensurate with the term of the award. Restricted Stock Units The following table presents the unvested restricted stock unit activity:
The stock-based compensation expense was recorded as follows (in thousands):
(1) Includes $44,000 and $100,000 related to stock issued in exchange for marketing services for the three and nine month periods ended September 30, 2023, respectively. The allocation between research and development and selling, general and administrative expense was based on the department and services performed by the employee or non-employee. At September 30, 2023, the total compensation cost related to unvested options not yet recognized was $382,000, which will be recognized over a weighted average period of 1.3 years, assuming the employees and non-employees complete their service period required for vesting.
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STOCKHOLDERS' EQUITY |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY On August 18, 2023, at a special meeting of stockholders, our stockholders approved an amendment to our amended and restated certificate of incorporation, as amended, to effect a reverse stock split (the “Reverse Stock Split”) of our issued and outstanding common stock by a ratio of not less than 1-for-2 and not more than 1-for-12. The exact ratio of the Reverse Stock Split will be set within this range as determined by our board of directors in its sole discretion prior to the time of the Reverse Stock Split and will be publicly announced by us prior to the effective time. On July 21, 2023, our board of directors approved a public offering of shares of our common stock, together with Series D and Series E warrants to purchase shares of our common stock for aggregate gross proceeds of up to $7.5 million. See Form S-1 filed with the SEC on July 21, 2023 (File No. 333-273370). No shares have yet been issued pursuant to this filing. Activity in equity during the nine month periods ended September 30, 2023 and 2022 was as follows (dollars in thousands):
During the nine months ended September 30, 2023, the following shares of common stock were issued: •315,000 shares pursuant to the exercise of warrants. A certain warrant holder was induced to exercise warrants related to 2,934,575 shares by reducing the exercise price to the then current market price of our common stock (the “Warrant Inducement”). The original warrants had an exercise price of $3.165 per share and a weighted average remaining life of 2.3 years. These warrants were exercised for $0.7202 per share for gross proceeds of $2.1 million, before deducting $326,000 of issuance costs and $657,000 related to the modification of the terms of the warrants to induce exercise. Of the 2,934,575 shares issued, 2,619,575 shares are held in abeyance and not considered outstanding, at which time such shares will become outstanding. The balance of the shares held in abeyance will be held in abeyance until notice from the stock holder that the balance, or portion thereof, may be issued in compliance with a beneficial ownership limitation provision in the warrants. See Note 10 for a discussion of outstanding abeyance shares. In connection with the Warrant Inducement transaction, new warrants to purchase 5,869,150 shares of our common stock were issued, which are discussed in Note 7. •857,146 shares pursuant to a registered direct offering with certain institutional investors for $1.75 per share for gross proceeds of $1.5 million, before deducting issuance costs of $290,000. The shares were offered and sold pursuant to a prospectus, dated May 6, 2022, and a prospectus supplement, dated April 10, 2023, in connection with a takedown from our shelf registration statement on Form S-3 (File No. 333-261227). •1,230,000 shares pursuant to the exercise of previously outstanding prefunded warrants, which were issued in November 2022 with an exercise price of $1.54 per share. •54,466 restricted shares in exchange for marketing services to be performed through September 2023, with the total value of services to be recognized based on the stock price on the date of issuance. •13,225 shares pursuant to the vesting of restricted stock units. COMMON STOCK WARRANTSThe following table presents the common stock warrant activity:
During the nine months ended September 30, 2023: •In August, warrants were issued to the investor in the Warrant Inducement transaction discussed in Note 6 to purchase up to 5,869,150 shares of our common stock. These warrants are exercisable immediately with an exercise price of $0.7202 per share, and 3,012,006 expiring August 24, 2028 (5-Year Warrants) and 2,857,144 expiring September 24, 2024 (13-Month Warrants). We estimated the fair value of the 5-Year Warrants to be $1.5 million using a Black-Scholes model based on the following significant inputs: common stock price of $0.682 per share; volatility of 98%; term of 5 years; dividend yield of 0%; and risk-free rate of 4.4%. The fair value of the 13-Month Warrants was estimated to be $930,000 using the Black-Scholes model based on the following significant inputs: common stock price of $0.682 per share; volatility of 122%; term of 1.1 year; dividend yield of 0%; and risk-free rate of 4.4%. •In August, placement agent warrants were issued to purchase up to 146,729 shares of our common stock. The placement agent warrants are exercisable immediately upon issuance, with an exercise price per share of $0.9003 per share, and expire August 24, 2028. We estimated the fair value of these warrants to be $72,000 using a Black-Scholes model based on the following significant inputs: common stock price of $0.682 per share; volatility of 98%; term of 5 years; dividend yield of 0%;and risk-free interest rate of 5.4%. •In August, warrants representing 2,934,575 shares of common stock were exercised for $0.7202 per share. The terms of these warrants were modified in order to induce exercise. See Warrant Inducement discussion in Note 6. We recorded additional equity costs of $657,000 related to the warrant exercise transaction, which was calculated as the difference between the fair value of the warrants immediately prior to modification and immediately after modification using the Black-Scholes model based on the following significant inputs: common stock price of $0.682 per share; volatility of 96%; term of 2.3 years; dividend yield of 0%; and risk-free rate of 5.0%. •In April, Series C warrants were issued to the investors in the offering discussed in Note 6 to purchase up to 857,146 shares of our common stock. The Series C warrants are exercisable immediately with an exercise price of $1.62 per share and expire October 12, 2028. We estimated the fair value of these warrants to be $1.1 million using a Black-Scholes model based on the following significant inputs: common stock price of $1.38 per share; volatility of 164%; term of 5.5 years; dividend yield of 0%; and risk-free interest rate of 3.4%. •In April, placement agent warrants were issued to purchase up to 64,286 shares of our common stock. The placement agent warrants are exercisable immediately upon issuance, with an exercise price per share of $2.1875 per share, and expire April 10, 2028. We estimated the fair value of these warrants to be $82,000 using a Black-Scholes model based on the following significant inputs: common stock price of $1.38 per share; volatility of 165%; term of 5 years; dividend yield of 0%;and risk-free interest rate of 3.5%. •In February, prefunded warrants representing 1,230,000 shares of common stock were exercised. Such prefunded warrants were issued in November 2022 with an exercise price of $1.54 per share.
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COMMON STOCK WARRANTS |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMON STOCK WARRANTS | STOCKHOLDERS’ EQUITY On August 18, 2023, at a special meeting of stockholders, our stockholders approved an amendment to our amended and restated certificate of incorporation, as amended, to effect a reverse stock split (the “Reverse Stock Split”) of our issued and outstanding common stock by a ratio of not less than 1-for-2 and not more than 1-for-12. The exact ratio of the Reverse Stock Split will be set within this range as determined by our board of directors in its sole discretion prior to the time of the Reverse Stock Split and will be publicly announced by us prior to the effective time. On July 21, 2023, our board of directors approved a public offering of shares of our common stock, together with Series D and Series E warrants to purchase shares of our common stock for aggregate gross proceeds of up to $7.5 million. See Form S-1 filed with the SEC on July 21, 2023 (File No. 333-273370). No shares have yet been issued pursuant to this filing. Activity in equity during the nine month periods ended September 30, 2023 and 2022 was as follows (dollars in thousands):
During the nine months ended September 30, 2023, the following shares of common stock were issued: •315,000 shares pursuant to the exercise of warrants. A certain warrant holder was induced to exercise warrants related to 2,934,575 shares by reducing the exercise price to the then current market price of our common stock (the “Warrant Inducement”). The original warrants had an exercise price of $3.165 per share and a weighted average remaining life of 2.3 years. These warrants were exercised for $0.7202 per share for gross proceeds of $2.1 million, before deducting $326,000 of issuance costs and $657,000 related to the modification of the terms of the warrants to induce exercise. Of the 2,934,575 shares issued, 2,619,575 shares are held in abeyance and not considered outstanding, at which time such shares will become outstanding. The balance of the shares held in abeyance will be held in abeyance until notice from the stock holder that the balance, or portion thereof, may be issued in compliance with a beneficial ownership limitation provision in the warrants. See Note 10 for a discussion of outstanding abeyance shares. In connection with the Warrant Inducement transaction, new warrants to purchase 5,869,150 shares of our common stock were issued, which are discussed in Note 7. •857,146 shares pursuant to a registered direct offering with certain institutional investors for $1.75 per share for gross proceeds of $1.5 million, before deducting issuance costs of $290,000. The shares were offered and sold pursuant to a prospectus, dated May 6, 2022, and a prospectus supplement, dated April 10, 2023, in connection with a takedown from our shelf registration statement on Form S-3 (File No. 333-261227). •1,230,000 shares pursuant to the exercise of previously outstanding prefunded warrants, which were issued in November 2022 with an exercise price of $1.54 per share. •54,466 restricted shares in exchange for marketing services to be performed through September 2023, with the total value of services to be recognized based on the stock price on the date of issuance. •13,225 shares pursuant to the vesting of restricted stock units. COMMON STOCK WARRANTSThe following table presents the common stock warrant activity:
During the nine months ended September 30, 2023: •In August, warrants were issued to the investor in the Warrant Inducement transaction discussed in Note 6 to purchase up to 5,869,150 shares of our common stock. These warrants are exercisable immediately with an exercise price of $0.7202 per share, and 3,012,006 expiring August 24, 2028 (5-Year Warrants) and 2,857,144 expiring September 24, 2024 (13-Month Warrants). We estimated the fair value of the 5-Year Warrants to be $1.5 million using a Black-Scholes model based on the following significant inputs: common stock price of $0.682 per share; volatility of 98%; term of 5 years; dividend yield of 0%; and risk-free rate of 4.4%. The fair value of the 13-Month Warrants was estimated to be $930,000 using the Black-Scholes model based on the following significant inputs: common stock price of $0.682 per share; volatility of 122%; term of 1.1 year; dividend yield of 0%; and risk-free rate of 4.4%. •In August, placement agent warrants were issued to purchase up to 146,729 shares of our common stock. The placement agent warrants are exercisable immediately upon issuance, with an exercise price per share of $0.9003 per share, and expire August 24, 2028. We estimated the fair value of these warrants to be $72,000 using a Black-Scholes model based on the following significant inputs: common stock price of $0.682 per share; volatility of 98%; term of 5 years; dividend yield of 0%;and risk-free interest rate of 5.4%. •In August, warrants representing 2,934,575 shares of common stock were exercised for $0.7202 per share. The terms of these warrants were modified in order to induce exercise. See Warrant Inducement discussion in Note 6. We recorded additional equity costs of $657,000 related to the warrant exercise transaction, which was calculated as the difference between the fair value of the warrants immediately prior to modification and immediately after modification using the Black-Scholes model based on the following significant inputs: common stock price of $0.682 per share; volatility of 96%; term of 2.3 years; dividend yield of 0%; and risk-free rate of 5.0%. •In April, Series C warrants were issued to the investors in the offering discussed in Note 6 to purchase up to 857,146 shares of our common stock. The Series C warrants are exercisable immediately with an exercise price of $1.62 per share and expire October 12, 2028. We estimated the fair value of these warrants to be $1.1 million using a Black-Scholes model based on the following significant inputs: common stock price of $1.38 per share; volatility of 164%; term of 5.5 years; dividend yield of 0%; and risk-free interest rate of 3.4%. •In April, placement agent warrants were issued to purchase up to 64,286 shares of our common stock. The placement agent warrants are exercisable immediately upon issuance, with an exercise price per share of $2.1875 per share, and expire April 10, 2028. We estimated the fair value of these warrants to be $82,000 using a Black-Scholes model based on the following significant inputs: common stock price of $1.38 per share; volatility of 165%; term of 5 years; dividend yield of 0%;and risk-free interest rate of 3.5%. •In February, prefunded warrants representing 1,230,000 shares of common stock were exercised. Such prefunded warrants were issued in November 2022 with an exercise price of $1.54 per share.
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LOSS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOSS PER SHARE | LOSS PER SHARE Basic loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period, which includes prefunded warrants and shares held in abeyance from date of issuance. Diluted loss per share is computed by dividing the loss attributable to common stockholders by the weighted average number of common shares used in the basic loss per share calculation plus potentially dilutive securities outstanding during the period determined using the treasury stock method. Stock options, warrants and restricted stock units are considered to be potentially dilutive securities but have been excluded from the calculation of diluted loss per share because their effect would be anti-dilutive given the net losses reported for all periods presented. Therefore, basic and diluted loss per share are the same for each period presented. The following shares were excluded from the calculation of diluted net loss per share:
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CONTINGENCIES |
9 Months Ended |
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Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Legal Proceedings In July 2020, our former corporate general counsel (the “Plaintiff”) commenced an action against us in the Superior Court of the State of California, for the County of San Diego. The complaint alleges, among other things, that we breached the Plaintiff’s employment contract with us, as well as the implied covenant of good faith and fair dealing, by refusing to issue him the balance of stock options he claims we owe him. In September 2021, the Plaintiff served us and also named 10 individuals as defendants, consisting of current and former directors and employees. We do not believe that all of the defendants have yet been served. Furthermore, two individually named defendants have separately settled with the Plaintiff. The Plaintiff alleges that such individuals agreed to knowingly and wrongfully withhold the stock options owed to him and are knowingly in receipt of stolen property. The Plaintiff seeks compensatory damages in excess of $500,000, treble damages, and reasonable attorneys’ fees. We do not believe the claims described above have merit and intend to aggressively defend against these accusations. The Plaintiff has agreed to mediation to resolve the issues. We do not believe that this litigation is likely to have a material effect on our operations.
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SUBSEQUENT EVENTS |
9 Months Ended |
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Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSIn connection with the Warrant Inducement discussed in Note 6, of the 2,934,575 shares issued, 2,619,575 shares were held in abeyance and not considered outstanding until certain conditions are met, at which time such shares will become outstanding. The balance of the shares in abeyance will be held in abeyance until notice from the stock holder that the balance, or potion thereof, may be issued in compliance with a beneficial ownership limitation provision in the warrants. In October 2023, the conditions were met and the stock holder provided notice to release 351,575 shares from abeyance which became outstanding. As of November 9, 2023, there were 3,631,060 shares of common stock outstanding and 2,268,000 shares held in abeyance. In November 2023, we launched our latest product, Evolve, a soft bait containing the active ingredient cottonseed oil. Evolve limits reproduction of male and female rats after one to two breeding cycles following consumption. Evolve is being marketed for use in controlling rat populations as a minimum risk pesticide under the U.S. Environmental Protection Agency Federal Insecticide, Fungicide, and Rodenticide Act, Section 25(b). We must obtain registration from the various state regulatory agencies that do not accept the federal exemption. To date, we are authorized to sell Evolve in 12 states. We have evaluated subsequent events from the balance sheet date through November 9, 2023, the date at which the condensed financial statements were issued, and determined that there were no additional items that require adjustment to or disclosure in the condensed financial statements.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
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Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
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Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2023 |
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Pay vs Performance Disclosure | ||||||||
Net loss | $ (1,947) | $ (1,993) | $ (2,037) | $ (2,646) | $ (2,569) | $ (2,332) | $ (5,977) | $ (7,547) |
Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Financial Statements | Condensed Financial StatementsOur accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with the U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, the unaudited condensed financial statements include all material adjustments, all of which are of a normal and recurring nature, necessary to present fairly our financial position as of September 30, 2023, and our operating results and cash flows for the three- and nine-month periods ended September 30, 2023 and 2022. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There have been no new accounting pronouncements not yet effective or adopted in the current year that we believe have a significant impact, or potential significant impact, to our condensed financial statements.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and classification of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The significant estimates in our financial statements include the valuation of inventory, common stock warrants, and stock-based awards, such as stock options and restricted stock units. Actual results could differ from such estimates.
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Comprehensive Loss | Comprehensive Loss We have no other comprehensive income items for the periods presented. As a result, our net loss and comprehensive loss were the same for the periods presented and a separate statement of comprehensive loss is not included in the accompanying condensed financial statements.
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Cash and Cash Equivalents | Cash and Cash Equivalents Highly liquid investments with maturities of three months or less as of the date of acquisition are classified as cash equivalents, of which we had $2.1 million and $4.8 million as of September 30, 2023 and December 31, 2022, respectively, included within cash and cash equivalents in the condensed balance sheets.
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BALANCE SHEET COMPONENTS (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accounts receivable, net and activity in allowance for uncollectible accounts | Accounts receivable, net consisted of the following (in thousands):
The following was the activity in the allowance for uncollectible accounts (in thousands):
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Schedule of inventory, net and activity in reserve for obsolescence | Inventory, net consisted of the following (in thousands):
The following was the activity in the reserve for obsolescence (in thousands):
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Schedule of prepaid expenses | Prepaid expenses consisted of the following (in thousands):
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Schedule of property and equipment, net | Property and equipment, net consisted of the following (in thousands):
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Schedule of accrued expenses | Accrued expenses consisted of the following (in thousands):
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Schedule of maturities of notes payable | As of September 30, 2023, future principal payments were as follows (in thousands):
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LEASES (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of lease cost | The components of lease cost were as follows (in thousands):
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Schedule of future minimum operating lease payments | As of September 30, 2023, maturities of operating lease liabilities were as follows (in thousands):
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STOCK-BASED COMPENSATION (Tables) |
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock option activity | The following table presents the outstanding stock option activity:
(1) Includes options related to 99,000 shares that are inducement awards and not granted under the 2018 Plan.
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Schedule of fair value of options granted, assumptions | The weighted average grant date fair value of options granted during the nine months ended September 30, 2023 was $1.24 per share, based on the following assumptions used in the Black-Scholes option pricing model:
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Schedule of restricted stock unit activity | The following table presents the unvested restricted stock unit activity:
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Schedule of stock-based compensation expense | The stock-based compensation expense was recorded as follows (in thousands):
(1) Includes $44,000 and $100,000 related to stock issued in exchange for marketing services for the three and nine month periods ended September 30, 2023, respectively.
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STOCKHOLDERS' EQUITY (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stockholders' equity activity | Activity in equity during the nine month periods ended September 30, 2023 and 2022 was as follows (dollars in thousands):
|
COMMON STOCK WARRANTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of common stock warrant activity | The following table presents the common stock warrant activity:
|
LOSS PER SHARE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of outstanding potentially dilutive securities | The following shares were excluded from the calculation of diluted net loss per share:
|
BASIS OF PRESENTATION (Details) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2023
USD ($)
state
territory
|
Sep. 30, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of states registration received | state | 50 | ||
Number of states approved removal of RUP designation | state | 49 | ||
Number of major U.S. territories registration received | territory | 5 | ||
Accumulated deficit | $ 128,180 | $ 122,203 | |
Cash and cash equivalents | 2,145 | $ 4,775 | |
Loss on sale of property and equipment | 0 | $ 28 | |
Proceeds received from sale of property and equipment | $ 0 | $ 4 |
BALANCE SHEET COMPONENTS - Narrative (Details) - USD ($) $ in Thousands |
Aug. 31, 2023 |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash and cash equivalents | $ 2,145 | $ 4,775 | |
Notes Payable | |||
Debt Instrument [Line Items] | |||
Debt, annual interest rate | 9.10% | ||
Debt, term | 5 years |
BALANCE SHEET COMPONENTS - Schedule of accounts receivable, net (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Accounts receivable | $ 85 | $ 119 | ||||
Allowance for uncollectible accounts | (2) | $ (4) | (6) | $ (5) | $ (12) | $ 0 |
Accounts receivable, net | $ 83 | $ 113 |
BALANCE SHEET COMPONENTS - Schedule of allowance for uncollectible accounts (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance as of beginning of period | $ 4 | $ 12 | $ 6 | $ 0 |
Increase in provision | 2 | 0 | 2 | 12 |
Amounts written off, less recoveries | (4) | (7) | (6) | (7) |
Balance as of end of period | $ 2 | $ 5 | $ 2 | $ 5 |
BALANCE SHEET COMPONENTS - Schedule of inventory, net (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Raw materials | $ 670 | $ 772 | ||||
Work in progress | 5 | 0 | ||||
Finished goods | 46 | 99 | ||||
Total inventory | 721 | 871 | ||||
Less: reserve for obsolescence | (18) | $ (18) | (18) | $ (19) | $ (22) | $ (29) |
Inventory, net | $ 703 | $ 853 |
BALANCE SHEET COMPONENTS - Schedule of activity in reserve for obsolescence (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Inventory, Valuation Reserves [Roll Forward] | ||||
Balance as of beginning of period | $ 18 | $ 22 | $ 18 | $ 29 |
Increase in reserve | 0 | 0 | 0 | 0 |
Amounts relieved | 0 | (3) | 0 | (10) |
Balance as of end of period | $ 18 | $ 19 | $ 18 | $ 19 |
BALANCE SHEET COMPONENTS - Schedule of prepaid expenses (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Software licenses | $ 138 | $ 157 |
Professional services | 95 | 41 |
Insurance | 44 | 61 |
Patents | 17 | 39 |
Marketing programs and conferences | 6 | 74 |
Other | 85 | 6 |
Total prepaid expenses | $ 385 | $ 378 |
BALANCE SHEET COMPONENTS - Schedule of accrued expenses (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Compensation, severance and related benefits | $ 521 | $ 497 |
Legal services | 135 | 36 |
Product warranty | 15 | 18 |
Personal property and franchise tax | 0 | 6 |
Other | 0 | 3 |
Total accrued expenses | $ 671 | $ 560 |
BALANCE SHEET COMPONENTS - Schedule of notes payable maturities (Details) - Notes Payable $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
2023 | $ 3 |
2024 | 9 |
2025 | 10 |
2026 | 11 |
2027 | 12 |
Thereafter | 8 |
Total principal payments | 53 |
Less: current portion of note payable | (9) |
Note payable, less current portion | $ 44 |
LEASES - Schedule of lease cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 55 | $ 55 | $ 166 | $ 167 |
Finance lease cost: | ||||
Amortization of right-of-use asset | 0 | 0 | 0 | 27 |
Interest on lease liability | 0 | 0 | 0 | 1 |
Total finance lease cost | $ 0 | $ 0 | $ 0 | $ 28 |
LEASES - Schedule of maturities of operating leases liabilities (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Leases [Abstract] | |
2023 | $ 50 |
2024 | 186 |
Total operating lease payments | 236 |
Less: imputed interest | (10) |
Total operating lease liabilities | $ 226 |
STOCK-BASED COMPENSATION - Narrative (Details) - 2018 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2023 |
Dec. 31, 2018 |
Jun. 26, 2023 |
|
Stock-Based Compensation (Details) [Line Items] | |||
Shares authorized (in shares) | 848,614 | ||
Common stock, available for issuance (in shares) | 496,330 | ||
Unrecognized compensation cost | $ 382 | ||
Stock Options | |||
Stock-Based Compensation (Details) [Line Items] | |||
Options, term | 5 years | ||
Weighted average grant date fair value (in dollars per share) | $ 1.24 | ||
Unrecognized compensation cost, period of recognition | 1 year 3 months 18 days | ||
Minimum | Stock Options | |||
Stock-Based Compensation (Details) [Line Items] | |||
Options, vesting period | 12 months | ||
Maximum | Stock Options | |||
Stock-Based Compensation (Details) [Line Items] | |||
Options, vesting period | 36 months |
STOCK-BASED COMPENSATION - Schedule of fair value option assumptions (Details) - 2018 Equity Incentive Plan - Stock Options |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Stock-Based Compensation (Details) [Line Items] | |
Expected volatility | 128.00% |
Expected dividend yield | 0.00% |
Expected term (in years) | 5 years |
Risk-free interest rate | 5.30% |
STOCK-BASED COMPENSATION - Schedule of restricted stock unit activity (Details) - Restricted Stock Units |
9 Months Ended |
---|---|
Sep. 30, 2023
$ / shares
shares
| |
Number of Units | |
Beginning Balance (in shares) | shares | 18,799 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (18,799) |
Forfeited (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 0 |
Weighted Average Grant-Date Fair Value Per Unit | |
Beginning Balance (in dollars per share) | $ / shares | $ 2.71 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 2.71 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending Balance (in dollars per share) | $ / shares | $ 0 |
STOCK-BASED COMPENSATION - Schedule of stock-based compensation expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Stock-Based Compensation (Details) [Line Items] | |||||||
Total stock-based compensation expense | $ 170 | $ 140 | $ 467 | $ 570 | |||
Issuance of common stock for service | $ 100 | $ 1 | $ 3 | ||||
Research and development | |||||||
Stock-Based Compensation (Details) [Line Items] | |||||||
Total stock-based compensation expense | 5 | 1 | 12 | 5 | |||
Selling, general and administrative | |||||||
Stock-Based Compensation (Details) [Line Items] | |||||||
Total stock-based compensation expense | 165 | $ 139 | 455 | $ 565 | |||
Issuance of common stock for service | $ 44 | $ 100 |
COMMON STOCK WARRANTS - Schedule of common stock warrant activity for the period (Details) - $ / shares |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Shares | ||
Beginning Balance (in shares) | 4,414,810 | |
Issued (in shares) | 6,937,311 | |
Exercised (in shares) | (4,164,575) | |
Expired (in shares) | (13,629) | |
Ending Balance (in shares) | 7,173,917 | 4,414,810 |
Weighted Average Exercise Price Per Share | ||
Beginning Balance (in dollars per share) | $ 6.58 | |
Issued (in dollars per share) | 0.88 | |
Exercised (in dollars per share) | 1.54 | |
Expired (in dollars per share) | 527.05 | |
Ending Balance (in dollars per share) | $ 2.00 | $ 6.58 |
Weighted Average Remaining Contractual Term (years) | ||
Outstanding (in years) | 4 years 10 months 24 days | 3 years |
Issued (in years) | 4 years 10 months 24 days |
LOSS PER SHARE -Schedule of outstanding potentially dilutive securities (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 259,380 | 0 | 3,320,332 | 10,170 |
Common stock warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 259,380 | 0 | 3,277,507 | 0 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 0 | 0 | 42,825 | 10,170 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 0 | 0 | 0 | 0 |
CONTINGENCIES - Narrative (Details) - Superior Court of the State of California, Kennan E. Kaedar Litigation - Pending Litigation |
1 Months Ended | |
---|---|---|
Sep. 30, 2021
defendant
|
Jul. 31, 2020
USD ($)
|
|
Loss Contingencies [Line Items] | ||
Number of defendants | 10 | |
Number of defendants, separately settled with plaintiff | 2 | |
Minimum | ||
Loss Contingencies [Line Items] | ||
Damages sought (in excess of) | $ | $ 500,000 |
SUBSEQUENT EVENTS - Narrative (Details) |
1 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Nov. 09, 2023
shares
|
Nov. 09, 2023
state
shares
|
Oct. 31, 2023
shares
|
Aug. 31, 2023
shares
|
Sep. 30, 2023
shares
|
Dec. 31, 2022
shares
|
|
Subsequent Event [Line Items] | ||||||
Warrants, exercised (in shares) | 4,164,575 | |||||
Common stock, shares outstanding (in shares) | 3,279,485 | 809,648 | ||||
Warrant Inducement Transaction, Modified | ||||||
Subsequent Event [Line Items] | ||||||
Warrants, exercised (in shares) | 2,934,575 | |||||
Warrants, held in abeyance (in shares) | 2,619,575 | |||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Warrants, held in abeyance (in shares) | 2,268,000 | |||||
Warrants, outstanding, released from abeyance (in shares) | 351,575 | |||||
Common stock, shares outstanding (in shares) | 3,631,060 | 3,631,060 | ||||
Subsequent Event | Evolve | ||||||
Subsequent Event [Line Items] | ||||||
Number of states authorized to sell product | state | 12 |
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