SENESTECH QUARTERLY NEWSLETTER || SPRING 2020 ISSUE 4
Letter from Chief Executive Officer 02 Putting Homeowners in Control 06 Meet Steve Krause 08 Preferred Partner Spotlight 08 Manufacturing Tests its Mettle 09 Listening to the Voices of our Customers 10 Tips from Technical Support 11
03 SYMPTOMS OF SPRING
TREATING FLARE UPS 04 EERIE EDGE ON
RAT BEHAVIOR
GREETINGS!
As you know, this quarter presented a unique challenge to our global economy, which emphasized the importance of public health and safety relative to businesses and residences alike. The COVID-19 pandemic made clear that the importance of public health cannot be overstated and protective measures across industries are critical to everyone’s wellbeing. While we continue to fight the virus and rectify the damage left in its wake, we want to take a moment to highlight the significant strides SenesTech has made to support our customers and Pest Management Professionals (PMPs), elevating the industry with our innovative products and services. Notably, we launched our residential program and opened our Online Store, providing easy, direct access to ContraPest®, complete with a discounted monthly subscription service. The increased demand for ContraPest put our manufacturing capabilities to the test and I’m delighted to report that we passed with flying colors, as you’ll read about from Nick Murphy, our VP of Manufacturing. We also have emphasized the importance of consumer education and rely on Product Manager, Sharon Dinges, to share some important distinctions in treating rat infestations due to reproduction. Additionally, our team continues to release valuable resources from monthly videos to our ContraPest Complete Manual in support of our customers and PMPs. Of course, as the spring season comes into full bloom, so does the peak of rat breeding season. In light of this reality, Nicole Eames, our Technical Support Specialist, offers tips for optimal ContraPest deployment by examining resource availability and reproduction. Brandy Pyzyna, VP of Scientific Operations & Technical Services, highlights the value of our Voice of Customer survey to connect with our customers and understand their pain points for the best possible solutions. As always, we recognize our valuable partnerships in our Preferred Partner Spotlight, which shines this quarter on Pestec and its steadfast commitment to public health. We invite you to check out our Investor Relations page for updated news and announcements, regarding SenesTech’s ongoing evolution. Finally, please welcome SenesTech’s new Executive VP of Sales and Marketing, Steve Krause, PhD, who brings with him more than 25 years of expertise in the public health pest management industry. Learn more about Steve’s background in his featured bio and you’ll see why we are so grateful to have him at the helm of our Sales and Marketing initiatives. Thank you for your support as we continue to provide innovative pest management solutions.
Ken Siegel Ken Siegel 2 SenesTech Quarterly Newsletter Spring 2020 – Issue 4 Chief Executive Officer
ARE YOU TREATING THE UNDERLYING CAUSE OF RAT INFESTATIONS OR JUST THE FLARE-UPS? SHARON DINGES, PRODUCT MANAGER
Ah, spring! The time of year when everything lying dormant over the winter months begins to blossom and bloom. Pollen is everywhere as the trees, shrubs, and flowers spring back to life. If you suffer from allergies this can be an unpleasant time of the year. For years I suffered from a year-round allergic reaction to dust as well as pollen allergies. I would treat my allergic flare-ups by reaching for my favorite antihistamine in an attempt to manage my allergy symptoms. I eventually learned that there was a better way to treat the root cause, the underlying reason for my chronic allergies. Fortunately, by learning to control my underlying food allergies, my seasonal allergies also diminished. There are still times, however, when symptomatic flare-ups occur, and antihistamines are my go-to form of relief.
The warmer weather and easier access to food sources provide the perfect opportunity for rats to breed and rear pups. It is a well-known pattern in the pest management industry that rat populations grow quickly during these warmer months of the year. A comprehensive Integraded Pest Management (IPM) program addresses the need to control both the underlying problem as well as to treat occasional symptomatic flare-ups. After sanitation and exclusion, adding ContraPest to your existing IPM program, is a critical component of a two-pronged approach to controlling rat populations.
With ContraPest, you now have a tool to address both the underlying cause infestations.
Rat populations also experience a seasonal surge of activity during the spring and summer.
PREVENTION Proactive protocals
SANITATION Fixing conditions that attract
FERTILITY CONTROL
Reduction of rat fertility
�
and the flare-ups associated with rat
PHYSICAL Traps.
BIOLOGICAL
Introduction of Predators
CHEMICAL
Use of lethal methods
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THE STUFF OF SCIENCE FICTION:
PANDEMIC PUSHES RAT FO TO AN EERIE EDGE MICHELLE KRISTOFF
As if fighting the global pandemic presented by COVID-19 wasn’t challenging enough, an unintended consequence of the virus has reared its ugly head… or, more accurately, heads. Many heads. As cities have locked down, trash cans near businesses and public venues are less full than normal. With their usual food sources depleted by the widespread closures of bars and restaurants, rats in big cities such as Seattle, New Orleans, and Chicago are adapting to the new normal in order to survive. Their emergence due to the sudden scant supply of food scraps is increasingly accompanied by disturbing behaviors. Claudia Riegel, head of New Orleans’ pest control board, calls this a “difficult time to be a rat.” Rats are scavenging during the day at alarming rates. This more aggressive form of rat foraging includes reports of cannibalism, fights, and infanticide. According to urban rodentologist, Bobby Corrigan, featured in NBC’s article “Starving, angry and cannibalistic: America’s rats are getting desperate amid coronavirus pandemic,” rats are amassing their own armies and the result is grim: “A restaurant all of a sudden closes now, which has happened by the thousands in not just New York City but coast to coast and around the world, and those rats that were living by that restaurant, some place nearby, and perhaps for
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decades having generations of rats that depended on that restaurant food, well, life is no longer working for them, and they only have a couple of choices… So these rats are fighting with one another, now the adults are killing the young in the nest and cannibalizing the pups.” The current social distancing efforts being enforced by municipalities keep rats safe from human encounters. This has also resulted in the increased
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Starving, angry and cannibalistic: America’s rats are getting desperate amid coronavirus pandemic
daytime sightings of rats we’re witnessing. With the anticipated population boom expected when the economy is once again open for business, we now need to consider what the numbers might look like if the population is left unchecked. Author Charles Mudede recently visited a park in Seattle where he was shocked to observe rats seeming to frolic freely, without fear at all. He
SenesTech Quarterly Newsletter Spring 2020 – Issue 4
ORAGING BEHAVIOR – DIRECTOR OF MARKETING
remarked: “What a wonderful opportunity COVID-19, a virus the rats obviously know nothing about, has presented. It’s almost a vacation from the monsters of their world.”
We are changing the paradigm of pest management by targeting the root of the problem: reproduction.
Of course, as vectors of disease, rats have a monstrous reputation as far as history and humankind are concerned. The latest chapter, represented by the coronavirus, is no exception, particularly as rats begin invading homes in search of food. As Corrigan reminds us about the rat species, “It is a wild animal. It is going to go forage around the house. If there is a baby in a crib with a milk bottle, they are going to follow that odor. They can chew on wires; they can bring their own viruses in. Rats in the house is serious.” If you think the problem will stop once COVID-19 is resolved and restaurants reopen, think again. As soon as food is readily available to the rats, they will begin reproducing again and we will undoubtedly see a massive explosion in rat populations.
It’s no wonder that pest control remains an essential service. Perhaps from the shadow of this pandemic, we have the chance to shed more light on the importance of rat fertility control, ensuring that our message resonates with our customers, whether municipal, commercial or residential. SenesTech Quarterly Newsletter Spring 2020 – Issue 4
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SENESTECH PUTS HOME Advancing our commitment to public health, SenesTech has put homeowners in charge of their own destiny by launching residential resources, including offering ContraPest as a direct order product from our newly established e-commerce platform, the SenesTech Online Store.
The residential pages include: • • • • •
What Rat is That? Before You Deploy ContraPest Family and Pet Safety Where Should I Place Bait Stations? Do I Need to Wear Personal Protective Equipment (PPE)? • Understanding the Importance of Integrated Pest Management • What Should I Expect After I Deploy ContraPest?
Roof Rat
Norway Rat
The residential pages within the SenesTech website directs and educates our customers on where to place bait stations for optimal use and efficacy.
The new residential site comes complete with Starter Bundle Kits for our homeowner customers. 6
SenesTech Quarterly Newsletter Spring 2020 – Issue 4
EOWNERS IN CONTROL
The “Where to Place Bait Stations” graphic is organized for effective visual direction.
Consumers will find step-by-step guidance on how to get started, what to expect after deployment, descriptions of the two major rats and many more – leaving no questions unanswered.
Safety and health are the #1 concern of our customers which is addressed within the residential pages.
MEET STEVE KRAUSE, BS, MBA, PhD With more than 25 years of experience in the global agriculture and Public Health pest management markets, Steve’s resume features a variety of positions in sales, marketing, and business management. From Paramount Pest, Abbott Labs, and Valent BioSciences, where Steve most recently served as Director, Global Public Health.
EXECUTIVE VICE PRESIDENT, SALES & MARKETING
Backed by a proven track record of integrating new biorational-based product solutions into operational programs, Steve is an integrated pest management specialist and spearheaded a program with the World Health Organization to launch a new class of pesticide to the global B2B and B2G vector control markets. A recipient of Abbott’s Summit Award for sales excellence, Steve and his team were recognized for halting the transmission of the Zika virus in Miami with a Chicago Innovation Award 2017. Steve is formally trained in biological sciences and marketing, with a BS from James Madison University, a PhD from the University of Wisconsin, and an MBA from Loyola University Chicago.
Pestec—Preferred Partner Spotlight AMANDA SILVA, GUEST CONTENT WRITER As always, the SenesTech team is eager to celebrate our strategic collaborations with other pest management professionals. These partnerships prove invaluable to our own education and support our role within the pest control industry. This quarter, we’re pleased to introduce you to Pestec, a company on a mission “to discover, develop and deliver the best services to improve the places we live and work.”
mutually benefit pest management stakeholders, local communities, and the planet, Pestec delivers on its mission. Founded in 1985 in Contra Costa County by Mr. Luis Agurto Sr., Pestec quickly grew its residential and commercial pest control business in the San Francisco Bay Area. Today, the second generation of the Agurto family is now doing their part to spread IPM across the world.
The Pestec team provides services to promote proper building maintenance and public health by directly suppressing and preventing disease vectors, pests, and their underlying causes. By following an IPM approach and emphasizing transparency to 8
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MANUFACTURING TESTS ITS METTLE BY
MEETING INCREASED PRODUCT DEMAND NICK MURPHY, VP OF MANUFACTURING
As the spring season comes into full bloom, so does the peak of rat mating season. In order to stay ahead of the increased demand for ContraPest, SenesTech’s manufacturing team ensures the following: • All divisions are required to ensure all Planned Maintenance is complete and all equipment is running properly. • All divisions are required to inventory all product materials needed for production to ensure we have an adequate supply for making and testing product batches. • All divisions are required to inventory materials needed for packaging and shipping finished goods to customers. • All divisions are required to ensure they have all shop supplies needed to conduct day to day operations and handle any unforeseen repairs or situations that may arise. • All personnel training for annual retraining or new hires must be complete. • All divisions must ensure all safety items are in place and ready for use if needed.
Every effort made by SenesTech’s manufacturing division supports the timely production and delivery of our rat fertility control products, providing our customers and PMPs with the solutions they need when they need them.
WELCOME TO OUR INVESTOR ROOM The SenesTech Investor Room provides a portal for all existing and future investors to keep current on investorrelated activities, by providing an easily accessible location for updated information on the SNES stock, SEC filings, Annual Report, Corporate Governance, Press Releases, Events, investor alerts, and overall movements within the investor arena. All published material is time stamped with the date it happened and updated as new pieces are published for the market. Stakeholders across the board are able to stay up to date or reach out to our investor relations partner, Lytham Partners, for additional information.
WHY WE LISTEN FOR:
THE VOICE OF CUSTOMER A BRANDY PYZYNA, VP OF SCIENTIFIC OPERATIONS & TECHNICAL SERVICES
SenesTech is committed to connecting with our customers’ needs and wants in order to provide products that solve their problems and exceed their expectations.
Questions asked center around global concerns like:
To that end, we have created and distributed our Voice of Customer survey. However, we see this questionnaire as more than a survey. It’s our authentic effort to truly understand how our customers feel about a particular product and why?
By reviewing their responses, we can transform this feedback into constructive criticism, which provides us with benefits like:
By reviewing the feedback on the Voice of Customer survey, we are given critical information that will help us modify existing products or create future products targeting customers’ stated pain point.
Why are customers happy? What makes customers unsatisfied?
CLEARER UNDERSTANDING OF OUR CUSTOMERS IMPROVED SERVICE BETTER RECOGNITION AND MANAGEMENT OF SENESTECH BRAND KEEPING AHEAD OF DEVELOPMENT ISOLATING OUR MARKETING NICHE The Voice of Customer survey was created to support SenesTech’s clear goals for capturing data, which results in quantitative reports and actionable recommendations for improvements.
Our customer testimonials reflect the unbiased opinions of SenesTech’s products, establishing credibility and educating future customers on what they can expect. 10
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AND VALUE KEY TESTIMONIALS TECH TIPS
Tips from SenesTech’s Technical Support Team NICOLE EAMES, TECHNICAL SUPPORT SPECIALIST One of the reasons most of us celebrate spring is for the warmer temperatures, new growth and abundant vegetation. Just as we take heart in these signs of life after a long winter, so do rats, rejoicing in these new resources for food and harborage. No wonder spring also represents the peak of rat breeding season.
REFRAIN FROM THROWING LOOSE FOOD OR FOOD SCRAPS TO ANIMALS.
Each year, the number of litters and young per litter will depend on resource availability; since resources are more abundant during the spring season, we see an increase in rat populations. Given that pregnancy and lactation require a great deal of energy, these resources are key to the survival of both female and her litter.
REMOVE BIRD FEEDERS
However, food availability is only part of the equation when it comes to rat infestations harborage will determine whether a rat population establishes itself at a particular location. This is why proper sanitation is critical and requires the removal or securing of food resources. Follow these additional tips to avoid a rat infestation on site:
KEEP FOOD CONTAINED TO A TROUGH OR OTHER DEVICE. REMOVE UNEATEN FEED AT NIGHT.
REMOVE HARBORAGE KEEP PLANT GROWTH TRIMMED AND CUT BACK REMOVE JUNK OR CLUTTER SHIFT STORED ITEMS THAT HAVE NOT BEEN MOVED IN MONTHS; DISPOSE OF ANY UNNECESSARY ITEMS Finally, for the ultimate preventive maintenance measure, deploy ContraPest to combat this seasonal root cause of infestations -reproduction. Start the season off right by reducing the first litters of the year and minimizing the coordinated population booms.
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SENESTECH GIVES CONTROL TO HOMEOWNERS Advancing our commitment to public health, SenesTech has put homeowners in charge of their own destiny by launching residential resources, including offering ContraPest as a direct order product from our newly established e-commerce platform, the SenesTech Online Store.
Visit: www.store.senestech.com
White SenesTech has created something extraordinary. We have created a product that significantly reduces population size of rats in effect helping foster a healthier and more sustainable world. The icon to the left is meant to represent the work we do at SenesTech. We offer a liquid, contraceptive solution to rodent overpopulation. We tackle the core of the problem; reproduction. We care about others’ pest problems and want to help them find a solution.
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 regulatory agency to determine restriction status. Read and follow all label instructions for target species Norway and roof rats. **PROTECTA EVO EXPRESS® is a registered trademark of Bell Laboratories, Inc. and SenesTech is not related or affiliated with Bell 12 SenesTech Quarterly Newsletter Spring 2020 – Issue 4 Laboratories, Inc.