Good morning, and welcome to the SenesTech, Inc. Reports First Quarter Fiscal Year 2020 Results Conference Call. [Operator Instructions] Please also note, today’s event is being recorded. At this time, I’d like to turn the conference call over to Robert Blum with Lytham Partners. Please go ahead.

Thank you very much, Jamie, and thank you all for joining us today. On today’s call as Jamie indicated, we will discuss SenesTech’s first quarter 2020 financial results for the period ended March 31, 2020. With us on the call representing the company today are Mr. Ken Siegel, the company’s Chief Executive Officer; and Mr. Tom Chesterman, 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. At the conclusion of today’s prepared remarks, we will – I’m sorry, before we begin with prepared remarks, we submit for the record the following statements. Statements made by the management team of SenesTech during the course of this conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies and are generally preceded by words such as may, future, plan or planned, will or should, expected, anticipates, draft, eventually or projected. Listeners are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements, including the 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 our filings with the Securities and Exchange Commission. All forward-looking statements contained during this conference call speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. The company does not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise. With that said, let me turn the call over to Ken Siegel, Chief Executive Officer of SenesTech. Ken, please proceed.

Great. Thanks, Robert and good morning, everyone. I hope you are all – you and all your family are well safe and healthy. When we spoke with you on March 16, we were in the early stages of the COVID-19 pandemic and obviously a lot has changed since then. The key factor for us, as with nearly every other company is managing through the uncertainties created by the virus, despite or in some cases because of the virus, we took a number of significant actions to protect the company. And we’re actually able to continue to drive forward with some of our key initiatives. And I’ll touch on that in a moment. As everyone is well aware, the need to have the necessary capital and runway to allow us to achieve our goals and objectives is critical. To address this, in March we substantially reduced our burn rate through some painful but necessary payroll reductions. As part of this, all of our executives and our Board of Directors agreed to a 25% reduction in their salary and fees. Combined, this brought our burn rate down to $6.5 million on an annualized basis. We expect it to drop further in October when some legacy severance payments are completed. Second, we applied for and received a PPP loan of approximately $650,000, which was funded in April. It was also a significant factor enabling us to tap the capital markets in April to provide us an additional approximately $5 million in cash. I’ll ask Tom to review our liquidity position in a bit, but it currently stands at more than $6.4 million in cash on the balance sheet on a pro forma basis as at the end of March. So we believe we’re positioned from a cash perspective given our current run rate…

Thank you, Ken, and greeting to all. As a reminder, our full press release on earnings is available on our website. Furthermore, we expect to be filing our 10-Q shortly, where you can find the complete financial picture for the quarter. Let’s start with revenue. Revenue for the first quarter was $37,000 compared with $19,000 for the first quarter of 2019. The good spin on this is that it represents over 90% growth year-over-year. The not so good spin is that it’s still a small base from which we’re growing. Orders from the pest management professionals in the first quarter were expectedly low, but some of this was offset by orders coming in from our direct online sales channel, which continues to develop nicely. From an OpEx side, the operating expenses for the quarter were about even with the first quarter of last year as the cuts mentioned by Ken didn’t occur until late in the quarter. The change that is evident is that we have well balanced, increases in SG&A with decreases in R&D. The R&D that continues is really focused on improving manufacturing processes and pursuing potential label changes from the EPA. Turning now to the bottom line. On a GAAP basis, net operating loss for the first quarter was $2.3 million, compared with a net operating loss of $2.4 million in the first quarter of 2019. Due to the price adjustment feature and a certain group of our outstanding warrants, we also recognize a deemed dividend of $414,000 in the quarter. You can read more about this deemed dividend in the 10-Q which will be filed later today. Adjusted EBITDA loss is a non-GAAP measure of operating performance that we think can enhance the understanding of operating performance and trends. For the quarter, EBITDA loss was $2.1…

[Operator Instructions] Ladies and gentlemen, at this time, we do have a question. This question comes from Ian Gilson from Zacks Investment Research. Please go ahead with your question.

Good morning, gentlemen. Of the ongoing projects, as of, let’s say year-end, I’d say, last year, are they all ongoing? Or have we lost any? And if so, would they be renewed when the COVID-19 get to a low level?

Ian its Ken. The projects as of year-end are almost all now back in process. The one that is still on hold is the one that we were doing in retail. Obviously, since most retail stores are shutdown, it was difficult to get in to do staffing. But everything else is up and running and in fact, now that we have people out in the field who are getting the results in real-time.

Okay. As the right migrate to alternative food positions. Does that mean that you can expect your operations under a current contract basis? Or do you have to go out and basically serve for new customers within areas where the rats have moved to?

Great question. So it’s really twofold. Since a lot of the contracts that we would be talking about and certainly where we’re doing the projects are with municipalities, it would come within the existing arrangement. So for example, the work we’re doing in D.C., they would simply move to additional alleyways and locations. Where you have situations in which it is done by private contracting, it would really depend on which pest management professionals are servicing the new areas. But the key piece is while they’re migrating out, which does create additional opportunities for us outside the core areas, one of the biggest worries is simply when they rebound in their historic locations near grocery stores, restaurants, et cetera. And what we’re strongly advising the municipalities is to begin active deployment now, which will reduce fertility before the rebound can occur.

Okay. As we move back to more and more retail restaurants opening up, would there be an increase in activity and therefore, an increase in sales? Or do you basically discontinue on as is?

It would, as they come online, we would expect an increase in sales. And because the product is a contraceptive and not a sterilant, in order to sustain the reductions, they need to continue to deploy the product. So once they have ContraPest in place, they need to continue to use it or the rats will come back.

Okay. So basically, if we look at number of base stations, we would expect that number to increase as commerce opens up. Is that be correct?

Correct. It will increase. And then as population is brought under control, as it’s knocked down, you would start to see a decline in – not in the number, but in the amount of ContraPest deployed in specific areas, but it would then stabilize at a predictable level. That’s what we’re working on in our studies to figure out exactly what it stabilizes that. But at the near-term, would see an increase in the base stations as they attempt to get control over the population.

Okay. Great. Thank you very much.

You are welcome.

Ladies and gentlemen, at this time, we’ll end today’s question-and-answer session. I’d like to turn the conference call back over to management for any closing remarks.

Well, thank you all for joining us. Obviously, it’s an incredibly trying time for everyone. And again, I hope you are all well. I hope you all stay well. And actually, I’m looking forward to next quarter’s call, so we can begin to see whether everything we’re doing on the sales and marketing side, particularly with all the new data we have, begins to translate itself into sales. So thank you all again, and we’ll talk to you in a few months.

Ladies and gentlemen, with that we’ll conclude today’s conference. We do thank you for joining. You may now disconnect your lines.