SenesTech Quarterly Newsletter - Summer 2019 - Issue 1

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SENESTECH QUARTERLY NEWSLETTER

SUMMER 2019 - ISSUE 1

NEW REGULATORY STATUS FOR OUR FLAGSHIP PRODUCT PG 09

RESOURCES YOU SHOULD CHECK OUT PG 12

WHAT’S IN THIS ISSUE?

LETTER FROM VP OF COMMERCIALIZATION PG 02 PREFERRED PARTNER SPOTLIGHT PG 10 MARKET FEATURES & BRAND OVERVIEW PG 03-07 MANUFACTURING IMPROVEMENTS PG 08 HUMAN RESOURCES SUPPORTIVE INITIATIVES PG 14

SenesTech Quarterly Newsletter Summer 2019 - Issue 1

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GREETINGS! I’m delighted to introduce you to our newsletter and welcome you to SenesTech’s realm of sound science. Each quarter, expect to read exciting updates regarding SenesTech’s direction and details about our product’s impact on key verticals, specif ically municipalities, agricultural, and zoos/animal sanctuaries. Communication is central to our efforts at SenesTech and, for that reason, this newsletter will also deliver developments about current issues challenging our industry. For instance, California Bill AB1788, aims at eradicating secondary exposure to non-target wildlife and other endangered species by bannIng the use of lethal second generation anticoagulant rodenticides (SGARs). Critics of this bill express concern that, left unchecked, rat populations will thrive and reproduce to alarming numbers, threatening the health of California’s residents, businesses, and inf rastructure. This legislation has set the stage for SenesTech to introduce ContraPest fertility control as an optimal alternative to lethal rodenticides. Research has shown that, over time, rats develop a resistance to SGARs; however, this is not the case with ContraPest. For these reasons and more, which our newsletter will detail in facts, f igures, and stunning images, ContraPest fertility control is our industry’s proven, long term solution. I invite you to explore these pages and learn more about the innovation behind ContraPest and the ingenuity driving SenesTech into the future. Thank you! Sincerely,

Edward Albe Senior Vice President of Commercialization 2

SenesTech Quarterly Newsletter Summer 2019 - Issue 1


Business Success Based on Brand MICHELLE KRISTOFF – DIRECTOR OF MARKETING

Brand might seem like the latest buzzword tossed around by businesses and embraced by marketers as the cornerstone of their craft. Buzzword or not, brand is a big deal as it relates to business success.

So, what exactly is a brand?

Defined by the Business Dictionary as a unique design, sign, symbol, words, or a combination of these that stimulates memories, stories and relationships that, when taken into account all together, inspires a consumer’s decision to choose one product or service over another. But a brand is so much more than surface presentation. Ideally, with the right marketing efforts representing message and persona, the image defining a product or company translates as credibility, quality, and satisfaction in the consumer’s mind. Therefore, a brand differentiates a product or service from even a saturated market by offering key benefits and critical value. SenesTech, Inc., built on a research foundation and strengthened by sound science, supports a brand ready for commercial growth that ultimately results in success.

The Meaning Behind the SenesTech Brand A simple breakdown of the SenesTech name reveals the following:

Senes Stemming from the word senescence, or the condition or process of deterioration with age; specifically, menopause, the biological stage that company founders devoted their intense research efforts, leading to the development of an environmentally conscious solution for non-lethal rodenticides.

Tech The shortened version of technology, demonstrating the commitment to the cutting edge of a collection of techniques, skills, methods, and processes essential to commercializing a product or service, allowing advancement in the marketplace through a first-mover competitive advantage.

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Sound Science. MICHELLE KRISTOFF – DIRECTOR OF MARKETING

A research and development company founded in 2004, SenesTech is driven to deliver practical fertility control to wildlife species worldwide. With every step of our evolution, we remain dedicated to sound science and the clear communication of our values to the industry and public.

SenesTech Mission

SenesTech is committed to providing sustainable, humane treatment of animals, improving the quality of all human life, and enhancing environmental stewardship through global application of our effective solution in fertility control technology.

SenesTech Vision

• R educe harmful effects of current rodent management practices, which have historically been ineffective, using proven scientific methods to address one of the root causes of the problem: reproduction • I mprove the health, safety, and well-being of humanity worldwide by reducting the negative impact of rodent pest infestations on food security, disease, and the environment • P rovide value to our stakeholders through the increased use of our products and technology to address current rodent pest issues while expanding our product base to meet the demands of a changing world

SenesTech Values

• Absolute Integrity – We are committed to authentic and virtuous business practices in our dealings with customers, business partners, shareholders, communities, and each other. • Urgency – We approach each day with an acute sense of urgency; always cognizant of the need to turn our vision into reality. • Innovation and Adaptability – We actively seek continuous improvements, being agile in changing circumstances and generating new ideas for development. • People and Diversity – We value and promote diversity in all aspects of business and at all levels. We believe people are our competitive advantage and strive to attract, develop, motivate, and retain the best team members to serve our customers. • Sustainability - We acknowledge that our business has an important role, impacting future generations, by developing and manufacturing products that have a minimal impact on the environment and ecology. All of this gets accomplished under the umbrella of our tagline “Sound Science. Effective Solutions.”

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SenesTech Quarterly Newsletter Summer 2019 - Issue 1


Effective Solutions. Sound Beginnings

“Sound Science” represents SenesTech’s 2004 inception, when two scientists collaborated to make a difference in this world. At the heart of it, Sound Science is the methodology of going from a concept that the world’s scientific community has imagined, to developing a formulation for practical application. Since science is ever evolving, the principles developed in our viable product allow us to continuously utilize new scientific discoveries to develop the most optimal product for the market and to solve our customers rodent problems. “Effective Solutions” stems from the history of rodent control and pest management. For years, traditional rodenticides have worked short term by killing rats. However, you can never kill them all and it only takes a breeding pair and their young to rebound the population, producing 15,000 new rats in just over a year. The reality is that rats are biologically designed to reproduce at a high rate, resulting in rat infestations emerging in a short period of time (3-4 months). Due to the principles of sound science, our team has discovered that some of the rats develop rodenticide resistance and, as such, are selected for their potential to birth rodenticide-resistant pups. Through the development of a fertility control contraceptive, we have successfully produced an effective long-term sustainable solution of a non-lethal approach that targets both male and female rats. As the SenesTech brand continues to grow, our customers recognize this company for its commitment to sound science in pursuit of positive impact.

Dr. Loretta Mayer

Dr. Cheryl Dyer SenesTech Quarterly Newsletter Summer 2019 - Issue 1

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SenesTech and New Markets

MICHELLE KRISTOFF – DIRECTOR OF MARKETING ContraPest is a product with wide-ranging applicability, which has opened the door of opportunity for SenesTech in our commercialization plan, focusing our efforts on specialized verticals: animal housing markets, commercial markets, and food markets.

Animal Markets

SenesTech understands the difficult balance required to manage pests in the human-animal conflict in a responsible and safe way. We must create a balanced management strategy as we provide for human needs, while at the same time being good stewards of our animal populations. Secondary exposure (animals consuming poisoned rodents) has become an increasing concern with nontarget animals, especially in environments where other animals or wildlife reside. SenesTech’s goal has always been to provide a better environment for animals, which is why we developed ContraPest. The animal housing markets that have specifically emerged this year are animal research facilities, animal sanctuaries, and zoos.

Food Markets Today’s consumers have demanded a new emphasis on food safety and the humane treatment of protein production animals, and the industry must answer with newer and better solutions in their facilities. One key emphasis area is more effective vector control, and inspection audits by regulatory agencies and third-parties. Rodents are an increasing health hazard and present a challenge to these industries owing to their potential to cause product and financial losses. These concerns are compounded by the increasing global demand for food, concerns for humane conditions for production animals, the increasing demands of biosecurity programs, and reducing the risk of infectious disease transmission.

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SenesTech Quarterly Newsletter Summer 2019 - Issue 1


Commercial Markets When commercial buildings provide the critical infrastructure of our economy, nothing is more essential than effectively managing rodent control within these physical structures. However, building management is not the only factor to consider when selecting optimal products for your rodent management program. Managing the risk of exposure is critical to the health and wellbeing of the people who work in and around these properties. Additionally, construction of new buildings frequently displaces rats that migrate into adjacent properties. The urban rodent management challenge captures all of the issues of commercial buildings and must integrate that management with the human pressures of behavior, health, and sanitation. No one wants to live with rat infestations. We have been fortunate to have been invited into some of the largest and most challenging cities of the US to develop strategies and products that, ultimately, deliver the right solution for municipalities and commercial business success – all while keeping control of daily operations. Washington, D.C., and St. Louis have proven to be successful municipality deployments, paving the way for other locations.

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Streamlining Manufacturing JANSEN COLELLA – MANUFACTURING MANAGER

At SenesTech, part of our commitment to sound science demands meaningful contributions to Corporate Social Responsibility. To that end, our team has developed an innovative system designed to recycle wastewater that would otherwise be wasted during our water treatment processes.

Turning a Challenge Into a Triumph The production of ContraPest involves a water treatment process based on a sensitive ratio. Maintaining this ratio resulted in unnecessary waste.

Simply put, for every single gallon of purified, usable water produced, an estimated two gallons of water was diverted down the drain as part of the purification procedure. When you consider the fact that this wastewater has already undergone the first round of purification, which effectively makes it purer than household tap water, dumping it down the drain seems to be an ineffective use of resources. Unfortunately, wasting water is a necessary evil in many manufacturing processes which can challenge Corporate Social Responsibility efforts, especially those relative to the environment and conservation. Flexing some sound science muscles, SenesTech proved more than ready to rise to the occasion and transform this challenge into an opportunity.

SenesTech Makes a Splash

The SenesTech solution features a 60-gallon reservoir spliced into the line connected to critical production equipment. By rerouting the wastewater line, we are able to recycle 60 gallons of water and use it to clean the production system, post-production. This simple fix saves water that would have otherwise been wasted, resulting in an approximate 33% reduction in manufacturing’s total water waste. Future projections for this water recycling system estimates a total 50-60% reduction in wasted water -- just by building a larger reservoir. Equipped with a larger reservoir, our team is already looking at possible ways to integrate this water into gray water systems. As far as our team is concerned, when it comes to Corporate Social Responsibility, the sky’s the limit.

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SenesTech Quarterly Newsletter Summer 2019 - Issue 1


ContraPest®: New Non-RUP Status CHARMONTE WATKINS – DIRECTOR OF REGULATORY AFFAIRS An exciting development for SenesTech: a status change from RUP (Restricted Use Product) to Non-RUP, signaling positive implications for ContraPest’s increased accessibility to PMPs and other markets, in addition to our current verticals: municipalities, agricultural, and zoos/animal sanctuaries.

Why Does This Matter?

To understand the significance of this status change, take a look at the limitations of our initial RUP designation and the increasingly stringent RUP requirements determined by the EPA, set to launch in 2020.

The Rundown on Restricted Use Products

As the name suggests, a Restricted Use Product (RUP) requires additional training, education, licenses, and costs for manufacture, PMPs, and applicators on both the federal and state level. For this reason, many PMPs don’t or won’t use or apply RUP products due to these additional requirements, which, of course, potentially limited the deployment of ContraPest, restricting its availability to certain markets.

Non-RUP = New Markets

As of October 2018, ContraPest was reclassified on the federal level. Now, as a non-RUP, our pool of customers has expanded to include grounds maintenance, HOAs, vets/animal care, and other non-PMP professionals, dependent upon state regulations. Despite this status change, SenesTech remains committed to the opinion that only professionals apply ContraPest for best results. However, this non-RUP status decreases the burden on states and municipalities that often require sales and volume reporting of RUP products.

Non-RUP in the Nick of Time In the past, RUP training/licensing permitted states to determine their own individual standards, which naturally varied greatly and did not necessarily allow reciprocity between states. However, more stringent and standardized RUP licensing is on the horizon, with the EPA requiring training for private and commercial applicators in 2020.

A few key requirements include: • • • • • • •

Adds Category, limits use, limits amounts of RUP to be sold/used to applicator Adds labeling comprehension requirements Sets max time between recertification to 5 years Allows for universal state-to-state reciprocity because of standardized training Raises minimum age of applicator to 18 years old Requires RUP dealers to keep records of sales Requires states to submit training requirements to EPA for approval

What are the Implications for Non-RUP Contrapest?

The proposed restrictions will potentially result in fewer PMPs renewing their RUP license or even meeting the requirements to do so. PMPs not already licensed will have even less reason to apply for the new licensing. At the moment, a total of 42 states have removed ContraPest from their lists of RUP products. Two states have accepted the new EPA stamped non-RUP labeling materials, but chose to leave ContraPest on their list of state restricted use pesticides. SenesTech Quarterly Newsletter Summer 2019 - Issue 1

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Pestmaster Services - Preferred Partner ®

AMANDA SILVA – GUEST CONTENT WRITER Collaboration is the key to our success at SenesTech. We really could not do what we do without our preferred partners. That is why we embrace the opportunity to highlight them whenever possible. To that end, allow us to introduce Pestmaster Services -- “Pest Management with environmentality.”

Guided by Their Green Initiatives

Environmentality®, which places a premium on the protection of the environment, is represented by Pestmaster Services’ position and products:

“Our commitment to seeking out cutting edge technologies from science-based products offering sustainable solutions has been a cornerstone of our corporate culture for more than 40 years. The possible risk to humans and pets is minimized because these products target very specific areas and functions of insects and rodents.” Targeted solutions are critical to the work we do at SenesTech, as represented by ContraPest -- a proven solution that targets the reproductive capabilities of Norway and roof rats -- making Pestmaster Services the perfect partner.

Demonstrated Dedication

Founded in 1979, Pestmaster Services is committed to a comprehensive approach to pest management by combining interdependent knowledge of multiple pest categories and how they impact one another. Always keeping the connectedness of the environment at the forefront of their strategies and solutions, Pestmaster Services is eager to demonstrate ways to embrace environmentality as part of their partnerships driving towards success. Offering a variety of pest control solutions based on the best Integrated Pest Management practices, Pestmaster Services stays cutting-edge while remaining committed to the overall and optimal health of its clients and communities.

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As the state of California is set to debate newly introduced legislation entitled Bill AB1788, which would ban the use of anticoagulant rodenticides, Pestmaster Services is working with them for a strong solution to the problem. The intention is to protect from secondary exposure non-target animal species native to California, including but not limited to: birds of prey, bobcats, fishers, mountain lions, and endangered species. Ultimately, Bill AB1788 is written to conserve and keep safe wildlife within California. 10

SenesTech Quarterly Newsletter Summer 2019 - Issue 1


Upcoming Events

RHETT PRINGLE – MARKETING COMMUNICATIONS SPECIALIST Our team is dedicated to sharing the story of SenesTech, educating PMPs on fertility control and how ContraPest can enhance their Integrated Pest Management Protocols, and joining our neighbors in supporting our community events! Stop by to see us at an upcoming event by you!

August 2019 8/8/2019 - Nyo Me Htwe | Rodent Control and Food Safety SenesTech Sound Science Speaker Series | 6:00pm EST

September 2019 9/12/2019 - Lisa Owens Viani | Stakeholders in Pest Management SenesTech Sound Science Speaker Series 9/9 - 9/13/2019 - 12th European Vertibrate Pest Management Conference Clermon-Ferrand, France

October 2019 10/10/2019 - Dr. Michael Kohn | Resistance SenesTech Sound Science Speaker Series 10/15 - 10/18/2019 - NPMA PEST WORLD 2019 San Diego, CA | Booth #933

What is SenesTech’s Sound Science Speaker Series? SenesTech supports its mission and commitment to sound science by hosting speakers on our virtual platform, The Sound Science Speakers Series. Launched in March 2019, we explore global issues affecting our industry, colleagues, and customers.

VISIT BOOTH #933

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Spotlight on SenesTech Resources RHETT PRINGLE – MARKETING COMMUNICATIONS SPECIALIST In an effort to communicate our commitment to sound science, the SenesTech team is shining a spotlight on the resources and tools featured on our website. Part of our mission is to keep our clients informed, not only about our products like ContraPest, but about the evolution of the company as we continue to grow and innovate.

EIGHT POWERFUL TOOLS AND RESOURCES Case Studies

Get a glimpse of ContraPest in action by reading details about its application and effectiveness in our three primary markets: animal, food, and commercial.

Technical Bulletins

These documents help us explain to our clients how ContraPest works by introducing information about rats and rat behavior; for example, bait shyness vs. bait aversion. Understanding the species and some of its habits helps us better demonstrate why ContraPest is an effective, long-term solution for the animal, food, and commercial markets.

Research Studies

By accessing our Research Studies, clients are invited to take a more in-depth look at the science innovating products like ContraPest.

Tech Sheets and Labels

Created to keep things easy for our PMPs, SenesTech publishes Tech Sheets and Labels providing quick references to the information you need now.

Contra

Pest ÂŽ

CITY OF A CASE ST. LOUIS: STUDY

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SenesTech Quarterly Newsletter Summer 2019 - Issue 1


Soundbites of Sound Science/Did You Know?

Our latest offering and maybe the most fun, the SenesTech Soundbites of Sound Science page offers education about rodents along with a connection to company founders and ContraPest creators, Dr. Loretta Mayer and Dr. Cheryl Dyer. Discover how much you don’t know about rats by scrolling through our Did You Know? slider, complete with images and fast facts. Speaking of facts...

Rat Facts Podcast

Tune in to our Rat Facts Podcast and learn more than you ever wanted to know about the rat species as we share Dr. Mayer and Dr. Dyer’s extensive knowledge about all things rodent-related. Bet you didn’t know that rats are ticklish!

Photo and Video Library

See for yourself all the goings on at SenesTech -- between what it’s like working here to ContraPest deployment and replacement tips.

Newsroom

A quick visit to our newsrooms grants you access to the latest information about SenesTech, along with implications concerning the use of ContraPest in certain areas like California, which is currently considering potentially game-changing legislation regarding the use of traditional rodenticides.

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Human Resources Support TRACEY HAYES – VICE PRESIDENT OF HUMAN RELATIONS

As our employees know, SenesTech is strengthened by our Human Resources department, staffed by talented individuals who are committed to our company’s continual growth. The following represent some of the latest initiatives our HR team has taken to support SenesTech’s innovation and momentum.

HOW HR SUPPORTS A STRONGER SENESTECH Robust Recruitment Integrating LinkedIn allows our HR team to leverage a larger network, giving them access to analytical recruitment tools, and allowing candidates to follow us and stay up to speed on all of SenesTech’s Soundbites of Sound Science. Dedicated In-House Recruitment At the helm, our official Recruitment & Retention Specialist Stacey Smith works closely with our managers to better understand and identify ideal candidates and manage a smooth, seamless recruitment process. Emerging Leaders A way to engage our employees, the Emerging Leaders group introduces a professional development topic to our non-managerial staff members on a monthly basis. Enhanced Educational Opportunities Our HR team has boosted our quarterly ADP trainings by extending education to “brown bag” peer-topeer lunches, covering key topics identified by our staff. SmartSheet was the inaugural offering, with additional future topics already scheduled… stay tuned!

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SenesTech Quarterly Newsletter Summer 2019 - Issue 1


Streamlined Systems for Recruitment and Retention Notably, our brand new Employee Change/Promotion process, featuring updated Recruitment forms, helps keep leadership in the loop about new roles and recently onboarded employees. Enhanced Employee Handbook Updated with the help of Risk Management, our employee handbook is now streamlined to better communicate “critical to know” policies with new employees. By “streamlined,” we mean cut down from 100 pages to a shorter, more reader-friendly format. Policies removed from the handbook have been filed into the HR Policies & Procedures folder, which will be available on the Share Drive soon! Optimized Onboarding Collaborating with Operations and Safety, we have ensured that critical information is communicated to new team members in an engaging, meaningful way during the onboarding process. Watch for more interactive on-boarding materials featuring a “New Hire Syllabus,” in the next few months. Championing a Cultural Evolution A growing company means an evolving company culture. By brainstorming with a small team of individuals from across the company, we are better able to target and implement a transition from a culture of “family” to “community.” In order to facilitate this evolution, we’ve created coming-soon pulse surveys, new Culture Club programming, and have expanded our Mission, Vision & Values. SenesTech Quarterly Newsletter Summer 2019 - Issue 1

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WHAT’S ON THE COVER? When the City of St. Louis, MO decided to renovate the downtown area, they knew they would need a strong integrated pest management program to successfullly transform this area of the city for the public. After hiring Missouri Pest Consultants, and implementing ContraPest throughout the city they were able to gain control of their rat problem successfully. Missouri Pest Consultants said: “I would use this on every account that has rats. Why would you want them to continue to populate while you are trying to solve a problem? It should be your first choice in any sensitive account with pets, children or public use.”

ContraPest®

FOR MORE INFORMATION EMAIL: info@senestech.com CALL: 1-866-886-RATS VISIT: www.senestech.com

ContraPest® is registered federally as a General Use Product when used as directed. However, in some states, due to applicator expertise, it is a Restricted Use Product. Please check with your local state regulator agency to determine restriction status. Read and follow all label instructions for target species Norway and roof rats.

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”Protecta EVO Express® is a registered trademark of Bell Laboratories, Inc. and SenesTech is not related or affiliated with Bell Laboratories, Inc.

SenesTech Quarterly Newsletter Summer 2019 - Issue 1


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