10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission File Number: 001-37941

SENESTECH, INC.

(Exact name of registrant as specified in its charter)

Delaware	20-2079805
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
23460 N 19th Ave, Suite 110
Phoenix, AZ	85027
(Address of principal executive offices)	(Zip Code)

(928) 779-4143

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	SNES	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	x	Smaller reporting company	x
Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The number of shares of common stock outstanding as of May 10, 2023: 2,964,485

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SENESTECH, INC.

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2023

TABLE OF CONTENTS

	PART I — FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	1
	Condensed Balance Sheets	1
	Condensed Statements of Operations and Comprehensive Loss	2
	Condensed Statements of Cash Flows	3
	Notes to Condensed Financial Statements	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	20
Item 4.	Controls and Procedures	20
	PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	21
Item 1A.	Risk Factors	21
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	21
Item 3.	Defaults Upon Senior Securities	21
Item 4.	Mine Safety Disclosures	21
Item 5.	Other Information	21
Item 6.	Exhibits	22
	SIGNATURE	23

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PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

SENESTECH, INC.

CONDENSED BALANCE SHEETS

(In thousands, except shares and per share data)

	March 31, 2023		December 31, 2022
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$	2,748	$	4,775
Accounts receivable, net	46		113
Prepaid expenses	450		378
Inventory, net	815		853
Total current assets	4,059		6,119
Right to use assets, operating leases	305		347
Property and equipment, net	259		294
Other noncurrent assets	22		22
Total assets	$	4,645	$	6,782
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	215	$	540
Accrued expenses	584		560
Current portion of operating lease liability	184		180
Deferred revenue	33		44
Total current liabilities	1,016		1,324
Operating lease liability, less current portion	132		179
Total liabilities	1,148		1,503
Commitments and contingencies (see notes)
Stockholders’ equity:
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding	—		—
Common stock, $0.001 par value, 100,000,000 shares authorized, 2,107,339 and 809,648 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	2		1
Additional paid-in capital	127,735		127,481
Accumulated deficit	(124,240)		(122,203)
Total stockholders’ equity	3,497		5,279
Total liabilities and stockholders’ equity	$	4,645	$	6,782

See accompanying notes to condensed financial statements.

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SENESTECH, INC.

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except shares and per share data)

(Unaudited)

	Three Months Ended March 31,
	2023		2022
Revenues, net	$	233	$	195
Cost of sales	141		105
Gross profit	92		90
Operating expenses:
Research and development	387		516
Selling, general and administrative	1,750		1,907
Total operating expenses	2,137		2,423
Loss from operations	(2,045)		(2,333)
Other income (expense):
Interest income	8		2
Interest expense	—		(1)
Other income, net	8		1
Net loss and comprehensive loss	$	(2,037)	$	(2,332)
Weighted average shares outstanding - basic and fully diluted	1,538,514		610,450
Net loss per share - basic and fully diluted	$	(1.32)	$	(3.82)

See accompanying notes to condensed financial statements.

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SENESTECH, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended March 31,
	2023		2022
Cash flows from operating activities:
Net loss	$	(2,037)	$	(2,332)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	36		66
Stock-based compensation	166		224
Bad debt expense	(2)		—
Changes in operating assets and liabilities:
Accounts receivable	69		21
Other assets	(1)		—
Prepaid expenses	28		(29)
Inventory	38		54
Accounts payable	(325)		(89)
Accrued expenses	24		56
Deferred revenue	(11)		—
Net cash used in operating activities	(2,015)		(2,029)
Cash flows from investing activities:
Purchase of property and equipment	(1)		(66)
Net cash used in investing activities	(1)		(66)
Cash flows from financing activities:
Repayments of notes payable	—		(3)
Repayments of finance lease obligations	—		(13)
Payment of employee withholding taxes related to share based awards	(11)		—
Net cash used in financing activities	(11)		(16)
Decrease in cash and cash equivalents	(2,027)		(2,111)
Cash and cash equivalents, beginning of period	4,775		9,326
Cash and cash equivalents, end of period	$	2,748	$	7,215
Supplemental disclosures of cash flow information:
Interest paid	$	—	$	1
Income taxes paid	$	—	$	—

See accompanying notes to condensed financial statements.

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SENESTECH, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1: BASIS OF PRESENTATION

Nature of Business

SenesTech, Inc. (referred to in this report as “SenesTech,” the “Company,” “we” or “us”) was incorporated in the state of Nevada in July 2004. On November 12, 2015, the Company 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 with our product 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.

Going Concern

Our condensed financial statements as of March 31, 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 ContraPest, 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 March 31, 2023, we had an accumulated deficit of $124.2 million and cash and cash equivalents of $2.7 million.

Our ultimate success depends upon the outcome of a combination of factors, including the following: (i) successful commercialization of ContraPest and maintaining and obtaining regulatory approval of our products and product candidates; (ii) market acceptance, commercial viability and profitability of ContraPest 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.

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Based upon our current operating plan, we expect that cash and cash equivalents at March 31, 2023, in combination with anticipated revenue and any additional sales of our equity securities (see Note 10), will be sufficient to fund our current operations for at least the next six months.

While we have evaluated and continue to evaluate our operating expenses and concentrate our resources toward the successful commercialization of ContraPest 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 March 31, 2023, and our operating results and cash flows for the three-month periods ended March 31, 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.

NOTE 2: 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 $2.7 million and $4.8 million as of March 31, 2023 and December 31, 2022, respectively, included within cash and cash equivalents in the condensed balance sheets.

5

Accounts Receivable, Net

Accounts receivable, net consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Accounts receivable	$	50	$	119
Allowance for uncollectible accounts	(4)		(6)
Accounts receivable, net	$	46	$	113

The following is the activity in the allowance for uncollectible accounts (in thousands):

	Three Months Ended March 31,
	2023		2022
Balance as of beginning of period	$	6	$	—
Increase in provision	—		—
Amounts written off, less recoveries	(2)		—
Balance as of end of period	$	4	$	—

Inventory, net

Inventory, net consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Raw materials	$	771	$	772
Work in progress	6		—
Finished goods	56		99
Total inventory	833		871
Less: reserve for obsolescence	(18)		(18)
Inventory, net	$	815	$	853

The following is the activity in the reserve for obsolescence (in thousands):

	Three Months Ended March 31,
	2023		2022
Balance as of beginning of period	$	18	$	29
Increase in reserve	—		—
Amounts relieved	—		(3)
Balance as of end of period	$	18	$	26

6

Prepaid Expenses

Prepaid expenses consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Software licenses	$	113	$	157
Marketing programs and conferences	10		74
Insurance	93		61
Patents	24		39
Professional services	198		41
Other	12		6
Total prepaid expenses	$	450	$	378

Property and Equipment, Net

Property and equipment, net consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Research and development equipment	$	1,563	$	1,558
Office and computer equipment	801		800
Autos	54		54
Furniture and fixtures	41		41
Leasehold improvements	119		119
Total in service	2,578		2,572
Accumulated depreciation and amortization	(2,319)		(2,283)
Total in service, net	259		289
Construction in progress	—		5
Property and equipment, net	$	259	$	294

Accrued Expenses

Accrued expenses consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Compensation, severance and related benefits	$	416	$	497
Legal services	150		36
Product warranty	18		18
Personal property and franchise tax	—		6
Other	—		3
Total accrued expenses	$	584	$	560

NOTE 3: FAIR VALUE MEASUREMENTS

The carrying amounts of our financial instruments, including accounts payable and accrued liabilities, approximate fair value due to their short maturities.

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NOTE 4: 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 are as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Operating lease cost	$	56	$	56
Finance lease cost:
Amortization of right-of-use asset	$	—	$	16
Interest on lease liability	—		1
Total finance lease cost	$	—	$	17

As of March 31, 2023, maturities of operating lease liabilities are follows (in thousands):

2023	$	149
2024	186
Total operating lease payments	335
Less imputed interest	(19)
Total operating lease liabilities	$	316

NOTE 5: 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 October 12, 2022, when our stockholders approved an increase to the total number of authorized shares to 348,614 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 of generally five years. Certain stock option awards provide for accelerated vesting upon a change in control.

As of March 31, 2023, we had 164,522 shares of common stock available for issuance under the 2018 Plan.

8

Stock Options

The following table summarizes the stock option activity for the periods indicated as follows:

	Number of Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (years)
Outstanding as of December 31, 2022	280,810		$	17.00	3.9
Granted	—		—		—
Exercised	—		—		—
Forfeited	(326)		—		—
Expired	(36)		—		—
Outstanding as of March 31, 2023	280,448	(1)	17.11		4.4
Exercisable as of March 31, 2023	98,406		32.22		—

(1) - Includes options related to 99,000 shares that are inducement awards and not granted under the 2018 Plan.

9

Restricted Stock Units

The following table summarizes restricted stock unit activity for the three months ended March 31, 2023:

	Number of Units	Weighted Average Grant-Date Fair Value Per Unit
Outstanding as of December 31, 2022	18,799	$	2.71
Granted	—	—
Vested	(18,799)	2.71
Forfeited	—	—
Outstanding as of March 31, 2023	—	—

The stock-based compensation expense was recorded as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Research and development	$	4	$	1
Selling, general and administrative	162		223
Total stock-based compensation expense	$	166	$	224

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 March 31, 2023, the total compensation cost related to unvested options not yet recognized was $403,000, which will be recognized over a weighted average period of 24 months, assuming the employees and non-employees complete their service period required for vesting.

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NOTE 6: STOCKHOLDERS’ EQUITY

Activity in equity during the three-month periods ended March 31, 2023 and 2022 was as follows (dollars in thousands):

	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Total
	Shares	Amount
2023
Balances as of December 31, 2022	809,648	$	1	$	127,481	$	(122,203)	$	5,279
Stock-based compensation	—	—		166		—		166
Issuance of common stock upon exercise of warrants	1,230,000	1		(1)		—		—
Issuance of common stock for service	54,466	—		100		—		100
Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes	13,225	—		(11)		—		(11)
Net loss	—	—		—		(2,037)		(2,037)
Balances as of March 31, 2023	2,107,339	$	2	$	127,735	$	(124,240)	$	3,497
2022
Balances as of December 31, 2021	610,364	$	1	$	122,542	$	(112,508)	$	10,035
Stock-based compensation	—	—		221		—		221
Issuance of common stock for service	250	—		3		—		3
Net loss	—	—		—		(2,332)		(2,332)
Balances as of March 31, 2022	610,614	$	1	$	122,766	$	(114,840)	$	7,927

During the three months ended March 31, 2023, the following shares of common stock were issued:

•1,230,000 shares pursuant to the exercise of previously outstanding prefunded warrants, which were issued in November 2022 with an exercise price of $3.50 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 date of issuance; and

•13,225 shares pursuant to the vesting of restricted stock units.

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NOTE 7: COMMON STOCK WARRANTS

The following table summarizes the common stock warrant activity for the three months ended March 31, 2023:

	Shares	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (years)
Outstanding as of December 31, 2022	4,414,810	$	6.58	3.0
Issued	—	—		—
Exercised	(1,230,000)	3.50		—
Expired	—	—		—
Outstanding as of March 31, 2023	3,184,810	7.78		2.8

During the three months ended March 31, 2023, 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 $3.50 per share.

NOTE 8: LOSS PER SHARE

Basic loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted loss per share attributable to common stockholders is computed by dividing the loss attributable to common stockholders by the weighted average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury stock and if-converted methods. For purposes of the computation of diluted loss per share attributable to common stockholders, common stock purchase warrants, and common stock options are considered to be potentially dilutive securities but have been excluded from the calculation of diluted loss per share attributable to common stockholders because their effect would be anti-dilutive given the net loss reported for the three months ended March 31, 2023 and 2022. Therefore, basic and diluted loss per share attributable to common stockholders are the same for each period presented.

The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted loss per share attributable to common stockholders (in common stock equivalent shares):

	Three Months Ended March 31,
	2023		2022
Common stock warrants	$	3,184,810	$	226,572
Restricted stock units	—		33
Common stock options	280,448		72,366
	$	3,465,258	$	298,971

NOTE 9: CONTINGENCIES

Legal Proceedings

In July 2020, Kennan E. Kaeder, 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 the following individuals as defendants: Loretta Mayer, Cheryl Dyer, Thomas C. Chesterman, Kim Wolin, Grover Wickersham, Marc Dumont, Bob Ramsey, Matthew Szot, Julia Williams, and Bill Baker. We do not believe that all of the defendants have yet been served. Furthermore, Loretta Mayer and Cheryl Dyer have separately settled with the Plaintiff.

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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.

NOTE 10: SUBSEQUENT EVENTS

On April 12, 2023, we consummated a registered direct offering with certain institutional investors and issued an aggregate of 857,146 shares of our common stock for $1.75 per share for gross proceeds of $1.5 million, before deducting fees payable to the placement agent and other estimated offering expenses payable by us. 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).

In connection with the registered direct offering, the following warrants were issued:

•Series C warrants to the investors in the offering 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 five and one-half years from the date of issuance, or October 12, 2028.

•Placement agent warrants to purchase up to 64,286 shares of our common stock. The placement agent warrants will be exercisable immediately upon issuance, with an exercise price per share of $2.1875 per share, and expire five years following the date of issuance, or April 10, 2028.

We have evaluated subsequent events from the balance sheet date through May 11, 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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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations –

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our condensed financial statements and related notes.

Forward-Looking Statements

The statements contained in this Quarterly Report on Form 10-Q that are not historical are 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, (the “Exchange Act”). All statements other than statements of historical facts contained or incorporated herein by reference in this Quarterly Report on Form 10-Q, including statements regarding our future operating results, future financial position, business strategy, objectives, goals, plans, prospects, markets, and plans and objectives for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “suggests,” “targets,” “contemplates,” “projects,” “predicts,” “may,” “might,” “plan,” “would,” “should,” “could,” “can,” “potential,” “continue,” “objective,” or the negative of those terms, or similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. Specific forward-looking statements in this Quarterly Report on Form 10-Q include statements regarding:

•our expectation that we will continue to incur significant expenses and generate operating losses for the foreseeable future;

•our expectation that cash and cash equivalents at March 31, 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 six months;

•our belief that sales increased in part due to continued focus of our internet sales initiatives, enhanced strategic partnership and collaborations with key distributors and Pest Management Professionals (“PMP”s);

•our belief that the increased sales activity from our field sales organization was due in part to the launch of our new Elevate product offering;

•our successful commercialization of ContraPest;

•our belief that if we encounter continued issues or delays in the commercialization of ContraPest, our prior losses and 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;

•our ability to enter into strategic partnerships to enable us to penetrate additional target markets and geographical locations;

•our expectation that our expenses will continue or increase in connection with our ongoing activities, particularly as we focus on marketing and sales of ContraPest;

•our ability to maintain and obtain regulatory approval for our product and product candidates;

•our ability to gain market acceptance, commercial viability and profitability of ContraPest and other products;

•our ability to market our products and establish an effective sales force and marketing infrastructure to generate significant revenue;

•the success of our research and development;

•our ability to retain and attract key personnel to develop, operate, and grow our business;

•our ability to meet our working capital needs;

•our estimates or expectations related to our revenue, cash flow, expenses, capital requirements and need for additional financing;

•our plans for our business, including for research and development;

14

•our belief the claims against us do not have merit and our intention to aggressively defend against these accusations;

•our belief the litigation against us is not likely to have a material effect on our operations;

•our financial performance, including our ability to fund operations; and

•developments and projections relating to our projects, competitors and our industry, including legislative developments and impacts from those developments.

These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and situations that are difficult to predict and that may cause our own, or our industry’s, actual results to be materially different from the future results that are expressed or implied by these statements. Accordingly, actual results may differ materially from those anticipated or expressed in such statements as a result of a variety of factors, including those discussed in Item 1A-“Risk Factors” of Part I of our Annual Report on Form 10-K, for the year ended December 31, 2022, filed with the SEC on March 17, 2023, and those contained from time to time in our other filings with the SEC. A number of factors could cause our actual results to differ materially from those indicated by the forward-looking statements. Such factors include, among others, the following:

•the successful commercialization of our products;

•market acceptance of our products; and

•regulatory approval and regulation of our products and other factors and risks identified from time to time in our filings with the SEC, including this Quarterly Report on Form 10-Q.

All forward-looking statements included herein are based on information available to us as of the date hereof and speak only as of such date. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. The forward-looking statements contained in or incorporated by reference into this Quarterly Report on Form 10-Q reflect our views as of the date of this Quarterly Report on Form 10-Q about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results, performance or achievements to differ significantly from those expressed or implied in any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, performance or achievements.

We are subject to the information requirements of the Exchange Act, and we file or furnish reports, proxy statements and other information with the SEC. Such reports and other information we file with the SEC are available free of charge at www.senestech.com as soon as practicable after such reports are available on the SEC’s website at www.sec.gov. The SEC’s website contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

Overview

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 our 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.

Through March 31, 2023, we received net proceeds of $93.6 million from our sales of common stock, preferred stock and warrant exercises and issuance of convertible and other promissory notes, an aggregate of $1.7 million from licensing fees and an aggregate of $2.7 million in net product sales. As of March 31, 2023, we had an accumulated deficit of $124.2 million and cash and cash equivalents of $2.7 million.

We have incurred significant operating losses every year since our inception, with net losses of $2.0 million and $2.3 million for the three months ended March 31, 2023 and 2022, respectively. We expect to continue to incur significant expenses and generate operating losses for at least the next six months.

15

Our ultimate success depends upon the outcome of a combination of factors, including the following: (i) successful commercialization of ContraPest and maintaining and obtaining regulatory approval of our products and product candidates; (ii) market acceptance, commercial viability and profitability of ContraPest 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 March 31, 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 six months. In April 2023, we consummated a registered direct offering with certain institutional investors and issued an aggregate of 857,146 shares of our common stock for $1.75 per share for gross proceeds of $1.5 million, before deducting fees payable to the placement agent and other estimated offering expenses payable by us.

While we have evaluated and continue to evaluate our operating expenses and concentrate our resources toward the successful commercialization of ContraPest 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.

Results of Operations

The following table summarizes our results of operations for the periods presented (in thousands):

	Three Months Ended March 31,				% Increase (Decrease)
	2023		2022
Revenues, net	$	233	$	195	19	%
Cost of sales	141		105		34	%
Gross profit	92		90		2	%
Operating expenses:
Research and development	387		516		(25)	%
Selling, general and administrative	1,750		1,907		(8)	%
Total operating expenses	2,137		2,423		(12)	%
Loss from operations	(2,045)		(2,333)		(12)	%
Other income, net	8		1		700	%
Net loss	$	(2,037)	$	(2,332)	(13)	%

Revenues

Sales, net of sales discounts and promotions, were $233,000 for the first quarter of 2023, compared to $195,000 for the first quarter of 2022. Sales increased by $38,000, in part, due to continued focus on our internet sales initiatives, augmenting our existing pull through sales strategy, where demand from the consumer market encourages, or pulls, resellers and pest management professionals to offer our products, as well as enhanced strategic partnerships and collaborations with key distributors and PMP. In addition, we saw increased sales activity from our field sales organization, including the launch of our new Elevate product offering.

Cost of Sales

Cost of sales consist primarily of the cost of products sold, including scrap and reserves for obsolescence, and was $141,000, or 60.4% of net sales, for the first quarter of 2023, compared to $105,000, or 53.8% of net sales, for the first quarter of 2022. The increase in cost of sales as a percentage of net sales during the first quarter of 2023 was driven by the scrapping of defective tanks no longer used in our products, which totaled $42,000.

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Gross Profit

Gross profit for the first quarter of 2023 was $92,000, for a gross profit margin of 39.6%, compared to a gross profit of $90,000, or a gross profit margin of 46.2%, for the first quarter of 2022. The lower gross profit margin was the direct result of scrapping defective tanks no longer used in our products. Excluding the cost associated with the scrapped inventory, gross profit margin is 57.8% for the first quarter of 2023.

Research and Development Expenses

Research and development expenses consisted of the following (in thousands):

	Three Months Ended March 31,				Increase (Decrease)
	2023		2022
Personnel related (including stock-based compensation)	$	242	$	241	$	1
Professional fees	44		90		(46)
Depreciation	28		46		(18)
Facility-related	26		26		—
Other	47		113		(66)
Total	$	387	$	516	$	(129)

Research and development expenses were $387,000 for the first quarter of 2023, compared to $516,000 for the first quarter of 2022. The $129,000 decrease was primarily due to lower consulting and legal fees required for research and development purposes, lower depreciation as several assets became fully depreciated in 2023, and lower expenses related to field and product improvement studies.

Selling, General and Administrative Expenses

Selling, general and administrative expenses consisted of the following (in thousands):

	Three Months Ended March 31,				Increase (Decrease)
	2023		2022
Personnel related (including stock-based compensation)	$	903	$	1,070	$	(167)
Professional fees	452		436		16
Insurance	86		166		(80)
Travel and entertainment	74		46		28
Office supplies/IT	71		83		(12)
Marketing	54		20		34
Facility-related	38		39		(1)
Other	72		47		25
Total	$	1,750	$	1,907	$	(157)

Selling, general and administrative expenses were $1.8 million for the first quarter of 2023, as compared to $1.9 million for the first quarter of 2022. The decrease of $157,000 was primarily due to lower personnel-related expenses, both lower stock-based compensation and lower headcount, combined with lower insurance and software-related license costs. This decrease was partially offset by higher digital marketing advertising costs and travel and entertainment expenses as we continue to focus efforts on the commercialization of our products, as well as higher legal related to selling, general and administrative and software license costs.

Other Income, Net

Other income for the first quarter of 2023 consisted of interest income of $8,000, which was $6,000 higher than the first quarter of 2022 due to higher interest rates of the comparable periods. Additionally, we had interest expense of $1,000 for the first quarter of 2022 related to certain notes payable and finance leases that expired in 2022.

17

Liquidity and Capital Resources

Liquidity

Since our inception, we have sustained significant operating losses in the course of our research and development activities and commercialization efforts 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. 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; and debt financing, consisting primarily of convertible notes.

Through March 31, 2023, we have received net proceeds of $93.6 million from our sales of common stock, preferred stock and warrant exercises and issuance of convertible and other promissory notes, an aggregate of $1.7 million from licensing fees and an aggregate of $2.7 million in net product sales. As of March 31, 2023, we had an accumulated deficit of $124.2 million and cash and cash equivalents of $2.7 million. And, in April 2023, we received net proceeds of $1.2 million from the sale of common stock.

Our ultimate success depends upon the outcome of a combination of factors, including the following: (i) successful commercialization of ContraPest and maintaining and obtaining regulatory approval of our products and product candidates; (ii) market acceptance, commercial viability and profitability of ContraPest 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 activities; (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 March 31, 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 six to nine months. We have evaluated and will continue to evaluate our operating expenses and will concentrate our resources toward the successful commercialization of ContraPest in the United States. However, if anticipated revenue targets and margin targets are not achieved or expenses are more than we have budgeted, we may need to raise additional financing before that time. If we need more financing, including within the next six to nine months, and we are unable to raise the 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, we may require additional capital in order to fund our operating losses and research and development activities before we become profitable and may opportunistically raise capital. 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.

Additional Funding Requirements

We expect our expenses to continue or increase in connection with our ongoing activities, particularly as we focus on marketing and sales of ContraPest. In addition, we will continue to incur costs associated with operating as a public company.

In particular, we expect to incur substantial and increased expenses as we:

•work to maximize market acceptance for, and generate sales of, our products, including by conducting field demonstrations for potential lead customers;

•explore strategic partnerships to enable us to penetrate additional target markets and geographical locations;

•manage the infrastructure for sales, marketing and distribution of ContraPest and any other product candidates for which we may receive regulatory approval;

•seek additional regulatory approvals for ContraPest, including to more fully expand the market and use for ContraPest and, if we believe there is commercial viability, for our other product candidates;

•further develop our manufacturing processes to contain costs while being able to scale to meet future demand of ContraPest and any other product candidates for which we receive regulatory approval;

18

•continue product development of ContraPest and advance our research and development activities and, as our operating budget permits, advance the research and development programs for other product candidates;

•maintain and protect our intellectual property portfolio; and

•add operational, financial and management information systems and personnel, including personnel to support our product development and commercialization efforts and operations as a public company.

We will need additional financing to fund these continuing and additional expenses.

Cash Flows

The following table summarizes our sources and uses of cash for each of the periods presented (in thousands):

	Three Months Ended March 31,
	2023		2022
Cash and cash equivalents, beginning of period	$	4,775	$	9,326
Net cash used in:
Operating activities	(2,015)		(2,029)
Investing activities	(1)		(66)
Financing activities	(11)		(16)
Decrease in cash and cash equivalents	(2,027)		(2,111)
Cash and cash equivalents, end of period	$	2,748	$	7,215

Cash Flows from Operating Activities—Cash flows from operating activities are generally determined by the amount and timing of cash received from customers and payments made to vendors, as well as the nature and amount of non-cash items, including depreciation and amortization and stock-based compensation included in operating results during a given period.

During the three months ended March 31, 2023, operating activities used $2.0 million of cash, primarily resulting from our net loss of $2.0 million offset by changes in our operating assets and liabilities of $178,000 and by non-cash charges of $200,000, consisting primarily of stock-based compensation and depreciation and amortization expense. Our net loss was primarily attributable to research and development activities and our selling, general and administrative expenses, as we generated limited product revenue during the period. Net cash used by changes in our operating assets and liabilities for the three months ended March 31, 2023 of $178,000 consisted primarily of a net decrease in accounts payable and accrued expenses of $301,000, partially offset by decreases in accounts receivable of $69,000, inventory of $38,000 and prepaid expenses of $28,000.

During the three months ended March 31, 2022, operating activities used $2.0 million of cash, primarily resulting from our net loss of $2.3 million, changes in our operating assets and liabilities of $13,000 and by non-cash charges of $290,000, consisting primarily of stock-based compensation and depreciation and amortization expense. Our net loss was primarily attributable to research and development activities and our selling, general and administrative expenses, as we generated limited product revenue during the period. Net cash used by changes in our operating assets and liabilities for the three months ended March 31, 2022 of $13,000 consisted primarily of decreases in inventory of $54,000 and accounts receivable of $21,000, offset by a net decrease in accounts payable and accrued expenses of $33,000 and an increase in prepaid expenses of $29,000.

Cash Flows from Investing Activities—Cash flows used in investing activities primarily consist of the purchase of property and equipment, offset by any proceeds received in connection with sales of property and equipment. During the three months ended March 31, 2023 and 2022, cash flows used in investing activities consisted of property and equipment purchases of $1,000 and $66,000, respectively.

Cash Flows from Financing Activities—Financing activities provide cash for both day-to-day operations and capital requirements as needed. During the three months ended March 31, 2023, net cash used in financing activities consisted of the payment of employee withholding taxes of $11,000. During the three months ended March 31, 2022, net cash used in financing activities consisted of repayments notes payable and finance lease obligations of $16,000.

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Critical Accounting Policies and Estimates

There have been no material changes to the Company’s critical accounting policies and estimates as previously disclosed in Item 7 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 17, 2023.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We periodically conduct evaluations (pursuant to Rule 13a-15(b) of the Exchange Act), under the supervision and with the participation of management, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e)) as of the end of the period covered by this report.

These disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports that are filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Our disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that this information is accumulated and communicated to management, including the principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

Based on the evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the period covered by this quarterly report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

20

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

For information regarding legal proceedings in which we are involved, see Note 9 - Contingencies under the subsection titled “Legal Proceedings” in our Notes to Condensed Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Item 1A. Risk Factors

There have been no material changes to our risk factors set forth in Part I, Item 1A, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 17, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Pursuant to a marketing services agreement, dated March 10, 2023, between us and Outside The Box Capital Inc. (“OTB”), we issued 54,466 shares of common stock to OTB for the performance of its marketing services. Such issuance was undertaken in reliance upon the exemption from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Rule 506 of Regulation D promulgated thereunder.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

21

Item 6. Exhibits

Exhibit Number	Description
4.28*	Form of Series C Warrant (Form 8-K filed April 12, 2023, Exhibit 4.28 (File no. 001-37941)).
4.29*	Form of Series Placement Agent Warrant (Form 8-K filed April 12, 2023, Exhibit 4.29 (File no. 001-37941)).
10.26*	Form of Securities Purchase Agreement (Form 8-K filed April 12, 2023, Exhibit 10.26 (File no. 001-37941)).
10.27*	Separation Agreement between SenesTech, Inc. and Nicole Williams dated April 21, 2023 (Form 8-K filed April 24, 2023, Exhibit 10.27 (File no. 001-37941)).
31.1	Certification of Chief Executive Officer.
31.2	Certification of Chief Financial Officer.
32.1	Certification of Chief Executive Officer.
32.2	Certification of Chief Financial Officer.
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).

*    Incorporated by reference as indicated.

22

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SENESTECH, INC.
	(Registrant)
Date: May 11, 2023	By:	/s/ Thomas C. Chesterman
		Thomas C. Chesterman
		Chief Financial Officer, Treasurer and Secretary
		(duly authorized officer and principal financial officer)

23

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

RULE 13(a)-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Joel L. Fruendt, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of SenesTech, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 11, 2023	/s/ Joel L. Fruendt
	Joel L. Fruendt
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

RULE 13(a)-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Thomas C. Chesterman, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of SenesTech, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 11, 2023	/s/ Thomas C. Chesterman
	Thomas C. Chesterman
	Chief Financial Officer, Treasurer and Secretary

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Joel L. Fruendt, President and Chief Executive Officer of SenesTech, Inc., certify that:

1.To my knowledge, the Quarterly Report on Form 10-Q of SenesTech, Inc. for the fiscal quarter ended March 31, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.To my knowledge, the information contained in such Quarterly Report on Form 10-Q report fairly presents, in all material respects, the financial condition and results of operations of SenesTech, Inc.

Dated: May 11, 2023	/s/ Joel L. Fruendt
	Joel L. Fruendt
	President and Chief Executive Officer

This certification accompanies the Quarterly Report on Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of SenesTech, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Quarterly Report on Form 10-Q), irrespective of any general incorporation language contained in such filing.

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Thomas C. Chesterman, Chief Financial Officer, Treasurer and Secretary of SenesTech, Inc., certify that:

1.To my knowledge, the Quarterly Report on Form 10-Q of SenesTech, Inc. for the fiscal quarter ended March 31, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.To my knowledge, the information contained in such Quarterly Report on Form 10-Q report fairly presents, in all material respects, the financial condition and results of operations of SenesTech, Inc.

Dated: May 11, 2023	/s/ Thomas C. Chesterman
	Thomas C. Chesterman
	Chief Financial Officer, Treasurer and Secretary

This certification accompanies the Quarterly Report on Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of SenesTech, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Quarterly Report on Form 10-Q), irrespective of any general incorporation language contained in such filing.

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2023	May 10, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-37941
Entity Registrant Name	SENESTECH, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-2079805
Entity Address, Address Line One	23460 N 19th Ave,
Entity Address, Address Line Two	Suite 110
Entity Address, City or Town	Phoenix
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85027
City Area Code	(928)
Local Phone Number	779-4143
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	SNES
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		2,964,485
Entity Central Index Key	0001680378
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 2,748	$ 4,775
Accounts receivable, net	46	113
Prepaid expenses	450	378
Inventory, net	815	853
Total current assets	4,059	6,119
Right to use assets, operating leases	305	347
Property and equipment, net	259	294
Other noncurrent assets	22	22
Total assets	4,645	6,782
Current liabilities:
Accounts payable	215	540
Accrued expenses	584	560
Current portion of operating lease liability	184	180
Deferred revenue	33	44
Total current liabilities	1,016	1,324
Operating lease liability, less current portion	132	179
Total liabilities	1,148	1,503
Commitments and contingencies (see notes)
Stockholders’ equity:
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.001 par value, 100,000,000 shares authorized, 2,107,339 and 809,648 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	2	1
Additional paid-in capital	127,735	127,481
Accumulated deficit	(124,240)	(122,203)
Total stockholders’ equity	3,497	5,279
Total liabilities and stockholders’ equity	$ 4,645	$ 6,782

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CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 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)	2,107,339	809,648
Common stock, shares outstanding (in shares)	2,107,339	809,648

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CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenues, net	$ 233	$ 195
Cost of sales	141	105
Gross profit	92	90
Operating expenses:
Research and development	387	516
Selling, general and administrative	1,750	1,907
Total operating expenses	2,137	2,423
Loss from operations	(2,045)	(2,333)
Other income (expense):
Interest income	8	2
Interest expense	0	(1)
Other income, net	8	1
Net loss	(2,037)	(2,332)
Comprehensive loss	$ (2,037)	$ (2,332)
Weighted average shares outstanding - basic (in shares)	1,538,514	610,450
Weighted average shares outstanding - diluted (in shares)	1,538,514	610,450
Net loss per share - basic (in dollars per share)	$ (1.32)	$ (3.82)
Net loss per share - diluted (in dollars per share)	$ (1.32)	$ (3.82)

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CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net loss	$ (2,037)	$ (2,332)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	36	66
Stock-based compensation	166	224
Bad debt expense	(2)	0
Changes in operating assets and liabilities:
Accounts receivable	69	21
Other assets	(1)	0
Prepaid expenses	28	(29)
Inventory	38	54
Accounts payable	(325)	(89)
Accrued expenses	24	56
Deferred revenue	(11)	0
Net cash used in operating activities	(2,015)	(2,029)
Cash flows from investing activities:
Purchase of property and equipment	(1)	(66)
Net cash used in investing activities	(1)	(66)
Cash flows from financing activities:
Repayments of notes payable	0	(3)
Repayments of finance lease obligations	0	(13)
Payment of employee withholding taxes related to share based awards	(11)	0
Net cash used in financing activities	(11)	(16)
Decrease in cash and cash equivalents	(2,027)	(2,111)
Cash and cash equivalents, beginning of period	4,775	9,326
Cash and cash equivalents, end of period	2,748	7,215
Supplemental disclosures of cash flow information:
Interest paid	0	1
Income taxes paid	$ 0	$ 0

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BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

Nature of Business

SenesTech, Inc. (referred to in this report as “SenesTech,” the “Company,” “we” or “us”) was incorporated in the state of Nevada in July 2004. On November 12, 2015, the Company 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 with our product 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.

Going Concern

Our condensed financial statements as of March 31, 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 ContraPest, 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 March 31, 2023, we had an accumulated deficit of $124.2 million and cash and cash equivalents of $2.7 million.

Our ultimate success depends upon the outcome of a combination of factors, including the following: (i) successful commercialization of ContraPest and maintaining and obtaining regulatory approval of our products and product candidates; (ii) market acceptance, commercial viability and profitability of ContraPest 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 March 31, 2023, in combination with anticipated revenue and any additional sales of our equity securities (see Note 10), will be sufficient to fund our current operations for at least the next six months.

While we have evaluated and continue to evaluate our operating expenses and concentrate our resources toward the successful commercialization of ContraPest 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 March 31, 2023, and our operating results and cash flows for the three-month periods ended March 31, 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.

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BALANCE SHEET COMPONENTS

3 Months Ended

Mar. 31, 2023

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 $2.7 million and $4.8 million as of March 31, 2023 and December 31, 2022, respectively, included within cash and cash equivalents in the condensed balance sheets.

Accounts Receivable, Net

Accounts receivable, net consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Accounts receivable	$	50	$	119
Allowance for uncollectible accounts	(4)		(6)
Accounts receivable, net	$	46	$	113

The following is the activity in the allowance for uncollectible accounts (in thousands):

	Three Months Ended March 31,
	2023		2022
Balance as of beginning of period	$	6	$	—
Increase in provision	—		—
Amounts written off, less recoveries	(2)		—
Balance as of end of period	$	4	$	—

Inventory, net

Inventory, net consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Raw materials	$	771	$	772
Work in progress	6		—
Finished goods	56		99
Total inventory	833		871
Less: reserve for obsolescence	(18)		(18)
Inventory, net	$	815	$	853

The following is the activity in the reserve for obsolescence (in thousands):

	Three Months Ended March 31,
	2023		2022
Balance as of beginning of period	$	18	$	29
Increase in reserve	—		—
Amounts relieved	—		(3)
Balance as of end of period	$	18	$	26

Prepaid Expenses

Prepaid expenses consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Software licenses	$	113	$	157
Marketing programs and conferences	10		74
Insurance	93		61
Patents	24		39
Professional services	198		41
Other	12		6
Total prepaid expenses	$	450	$	378

Property and Equipment, Net

Property and equipment, net consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Research and development equipment	$	1,563	$	1,558
Office and computer equipment	801		800
Autos	54		54
Furniture and fixtures	41		41
Leasehold improvements	119		119
Total in service	2,578		2,572
Accumulated depreciation and amortization	(2,319)		(2,283)
Total in service, net	259		289
Construction in progress	—		5
Property and equipment, net	$	259	$	294

Accrued Expenses

Accrued expenses consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Compensation, severance and related benefits	$	416	$	497
Legal services	150		36
Product warranty	18		18
Personal property and franchise tax	—		6
Other	—		3
Total accrued expenses	$	584	$	560

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FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2023
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.

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LEASES

3 Months Ended

Mar. 31, 2023

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 are as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Operating lease cost	$	56	$	56
Finance lease cost:
Amortization of right-of-use asset	$	—	$	16
Interest on lease liability	—		1
Total finance lease cost	$	—	$	17

As of March 31, 2023, maturities of operating lease liabilities are follows (in thousands):

2023	$	149
2024	186
Total operating lease payments	335
Less imputed interest	(19)
Total operating lease liabilities	$	316

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 are as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Operating lease cost	$	56	$	56
Finance lease cost:
Amortization of right-of-use asset	$	—	$	16
Interest on lease liability	—		1
Total finance lease cost	$	—	$	17

As of March 31, 2023, maturities of operating lease liabilities are follows (in thousands):

2023	$	149
2024	186
Total operating lease payments	335
Less imputed interest	(19)
Total operating lease liabilities	$	316

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STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2023

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 October 12, 2022, when our stockholders approved an increase to the total number of authorized shares to 348,614 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 of generally five years. Certain stock option awards provide for accelerated vesting upon a change in control.

As of March 31, 2023, we had 164,522 shares of common stock available for issuance under the 2018 Plan.

Stock Options

The following table summarizes the stock option activity for the periods indicated as follows:

	Number of Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (years)
Outstanding as of December 31, 2022	280,810		$	17.00	3.9
Granted	—		—		—
Exercised	—		—		—
Forfeited	(326)		—		—
Expired	(36)		—		—
Outstanding as of March 31, 2023	280,448	(1)	17.11		4.4
Exercisable as of March 31, 2023	98,406		32.22		—

(1) - Includes options related to 99,000 shares that are inducement awards and not granted under the 2018 Plan.

Restricted Stock Units

The following table summarizes restricted stock unit activity for the three months ended March 31, 2023:

	Number of Units	Weighted Average Grant-Date Fair Value Per Unit
Outstanding as of December 31, 2022	18,799	$	2.71
Granted	—	—
Vested	(18,799)	2.71
Forfeited	—	—
Outstanding as of March 31, 2023	—	—

The stock-based compensation expense was recorded as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Research and development	$	4	$	1
Selling, general and administrative	162		223
Total stock-based compensation expense	$	166	$	224

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 March 31, 2023, the total compensation cost related to unvested options not yet recognized was $403,000, which will be recognized over a weighted average period of 24 months, assuming the employees and non-employees complete their service period required for vesting.

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STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

Activity in equity during the three-month periods ended March 31, 2023 and 2022 was as follows (dollars in thousands):

	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Total
	Shares	Amount
2023
Balances as of December 31, 2022	809,648	$	1	$	127,481	$	(122,203)	$	5,279
Stock-based compensation	—	—		166		—		166
Issuance of common stock upon exercise of warrants	1,230,000	1		(1)		—		—
Issuance of common stock for service	54,466	—		100		—		100
Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes	13,225	—		(11)		—		(11)
Net loss	—	—		—		(2,037)		(2,037)
Balances as of March 31, 2023	2,107,339	$	2	$	127,735	$	(124,240)	$	3,497
2022
Balances as of December 31, 2021	610,364	$	1	$	122,542	$	(112,508)	$	10,035
Stock-based compensation	—	—		221		—		221
Issuance of common stock for service	250	—		3		—		3
Net loss	—	—		—		(2,332)		(2,332)
Balances as of March 31, 2022	610,614	$	1	$	122,766	$	(114,840)	$	7,927

During the three months ended March 31, 2023, the following shares of common stock were issued:

•1,230,000 shares pursuant to the exercise of previously outstanding prefunded warrants, which were issued in November 2022 with an exercise price of $3.50 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 date of issuance; and

•13,225 shares pursuant to the vesting of restricted stock units.

COMMON STOCK WARRANTS

The following table summarizes the common stock warrant activity for the three months ended March 31, 2023:

	Shares	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (years)
Outstanding as of December 31, 2022	4,414,810	$	6.58	3.0
Issued	—	—		—
Exercised	(1,230,000)	3.50		—
Expired	—	—		—
Outstanding as of March 31, 2023	3,184,810	7.78		2.8

During the three months ended March 31, 2023, 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 $3.50 per share.

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COMMON STOCK WARRANTS

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

COMMON STOCK WARRANTS

STOCKHOLDERS’ EQUITY

Activity in equity during the three-month periods ended March 31, 2023 and 2022 was as follows (dollars in thousands):

	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Total
	Shares	Amount
2023
Balances as of December 31, 2022	809,648	$	1	$	127,481	$	(122,203)	$	5,279
Stock-based compensation	—	—		166		—		166
Issuance of common stock upon exercise of warrants	1,230,000	1		(1)		—		—
Issuance of common stock for service	54,466	—		100		—		100
Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes	13,225	—		(11)		—		(11)
Net loss	—	—		—		(2,037)		(2,037)
Balances as of March 31, 2023	2,107,339	$	2	$	127,735	$	(124,240)	$	3,497
2022
Balances as of December 31, 2021	610,364	$	1	$	122,542	$	(112,508)	$	10,035
Stock-based compensation	—	—		221		—		221
Issuance of common stock for service	250	—		3		—		3
Net loss	—	—		—		(2,332)		(2,332)
Balances as of March 31, 2022	610,614	$	1	$	122,766	$	(114,840)	$	7,927

During the three months ended March 31, 2023, the following shares of common stock were issued:

•1,230,000 shares pursuant to the exercise of previously outstanding prefunded warrants, which were issued in November 2022 with an exercise price of $3.50 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 date of issuance; and

•13,225 shares pursuant to the vesting of restricted stock units.

COMMON STOCK WARRANTS

The following table summarizes the common stock warrant activity for the three months ended March 31, 2023:

	Shares	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (years)
Outstanding as of December 31, 2022	4,414,810	$	6.58	3.0
Issued	—	—		—
Exercised	(1,230,000)	3.50		—
Expired	—	—		—
Outstanding as of March 31, 2023	3,184,810	7.78		2.8

During the three months ended March 31, 2023, 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 $3.50 per share.

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LOSS PER SHARE

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

LOSS PER SHARE

LOSS PER SHARE

Basic loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted loss per share attributable to common stockholders is computed by dividing the loss attributable to common stockholders by the weighted average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury stock and if-converted methods. For purposes of the computation of diluted loss per share attributable to common stockholders, common stock purchase warrants, and common stock options are considered to be potentially dilutive securities but have been excluded from the calculation of diluted loss per share attributable to common stockholders because their effect would be anti-dilutive given the net loss reported for the three months ended March 31, 2023 and 2022. Therefore, basic and diluted loss per share attributable to common stockholders are the same for each period presented.

The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted loss per share attributable to common stockholders (in common stock equivalent shares):

	Three Months Ended March 31,
	2023		2022
Common stock warrants	$	3,184,810	$	226,572
Restricted stock units	—		33
Common stock options	280,448		72,366
	$	3,465,258	$	298,971

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CONTINGENCIES

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES

CONTINGENCIES

Legal Proceedings

In July 2020, Kennan E. Kaeder, 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 the following individuals as defendants: Loretta Mayer, Cheryl Dyer, Thomas C. Chesterman, Kim Wolin, Grover Wickersham, Marc Dumont, Bob Ramsey, Matthew Szot, Julia Williams, and Bill Baker. We do not believe that all of the defendants have yet been served. Furthermore, Loretta Mayer and Cheryl Dyer 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

3 Months Ended

Mar. 31, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

On April 12, 2023, we consummated a registered direct offering with certain institutional investors and issued an aggregate of 857,146 shares of our common stock for $1.75 per share for gross proceeds of $1.5 million, before deducting fees payable to the placement agent and other estimated offering expenses payable by us. 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).

In connection with the registered direct offering, the following warrants were issued:

•Series C warrants to the investors in the offering 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 five and one-half years from the date of issuance, or October 12, 2028.

•Placement agent warrants to purchase up to 64,286 shares of our common stock. The placement agent warrants will be exercisable immediately upon issuance, with an exercise price per share of $2.1875 per share, and expire five years following the date of issuance, or April 10, 2028.

We have evaluated subsequent events from the balance sheet date through May 11, 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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BASIS OF PRESENTATION (Policies)

3 Months Ended

Mar. 31, 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 March 31, 2023, and our operating results and cash flows for the three-month periods ended March 31, 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.

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.

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.

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 $2.7 million and $4.8 million as of March 31, 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)

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of accounts receivable, net and activity in allowance for uncollectible accounts

Accounts receivable, net consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Accounts receivable	$	50	$	119
Allowance for uncollectible accounts	(4)		(6)
Accounts receivable, net	$	46	$	113

The following is the activity in the allowance for uncollectible accounts (in thousands):

	Three Months Ended March 31,
	2023		2022
Balance as of beginning of period	$	6	$	—
Increase in provision	—		—
Amounts written off, less recoveries	(2)		—
Balance as of end of period	$	4	$	—

Schedule of inventory, net and activity in reserve for obsolescence

Inventory, net consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Raw materials	$	771	$	772
Work in progress	6		—
Finished goods	56		99
Total inventory	833		871
Less: reserve for obsolescence	(18)		(18)
Inventory, net	$	815	$	853

The following is the activity in the reserve for obsolescence (in thousands):

	Three Months Ended March 31,
	2023		2022
Balance as of beginning of period	$	18	$	29
Increase in reserve	—		—
Amounts relieved	—		(3)
Balance as of end of period	$	18	$	26

Schedule of prepaid expenses

Prepaid expenses consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Software licenses	$	113	$	157
Marketing programs and conferences	10		74
Insurance	93		61
Patents	24		39
Professional services	198		41
Other	12		6
Total prepaid expenses	$	450	$	378

Schedule of property and equipment, net

Property and equipment, net consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Research and development equipment	$	1,563	$	1,558
Office and computer equipment	801		800
Autos	54		54
Furniture and fixtures	41		41
Leasehold improvements	119		119
Total in service	2,578		2,572
Accumulated depreciation and amortization	(2,319)		(2,283)
Total in service, net	259		289
Construction in progress	—		5
Property and equipment, net	$	259	$	294

Schedule of accrued expenses

Accrued expenses consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Compensation, severance and related benefits	$	416	$	497
Legal services	150		36
Product warranty	18		18
Personal property and franchise tax	—		6
Other	—		3
Total accrued expenses	$	584	$	560

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LEASES (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Schedule of components of lease cost

The components of lease cost are as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Operating lease cost	$	56	$	56
Finance lease cost:
Amortization of right-of-use asset	$	—	$	16
Interest on lease liability	—		1
Total finance lease cost	$	—	$	17

Schedule of future minimum operating lease payments

As of March 31, 2023, maturities of operating lease liabilities are follows (in thousands):

2023	$	149
2024	186
Total operating lease payments	335
Less imputed interest	(19)
Total operating lease liabilities	$	316

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STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of stock option activity

The following table summarizes the stock option activity for the periods indicated as follows:

	Number of Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (years)
Outstanding as of December 31, 2022	280,810		$	17.00	3.9
Granted	—		—		—
Exercised	—		—		—
Forfeited	(326)		—		—
Expired	(36)		—		—
Outstanding as of March 31, 2023	280,448	(1)	17.11		4.4
Exercisable as of March 31, 2023	98,406		32.22		—

(1) - Includes options related to 99,000 shares that are inducement awards and not granted under the 2018 Plan.

Schedule of restricted stock unit activity

The following table summarizes restricted stock unit activity for the three months ended March 31, 2023:

	Number of Units	Weighted Average Grant-Date Fair Value Per Unit
Outstanding as of December 31, 2022	18,799	$	2.71
Granted	—	—
Vested	(18,799)	2.71
Forfeited	—	—
Outstanding as of March 31, 2023	—	—

Schedule of stock-based compensation expense

The stock-based compensation expense was recorded as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Research and development	$	4	$	1
Selling, general and administrative	162		223
Total stock-based compensation expense	$	166	$	224

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STOCKHOLDERS' EQUITY (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Schedule of stockholders' equity activity

Activity in equity during the three-month periods ended March 31, 2023 and 2022 was as follows (dollars in thousands):

	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Total
	Shares	Amount
2023
Balances as of December 31, 2022	809,648	$	1	$	127,481	$	(122,203)	$	5,279
Stock-based compensation	—	—		166		—		166
Issuance of common stock upon exercise of warrants	1,230,000	1		(1)		—		—
Issuance of common stock for service	54,466	—		100		—		100
Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes	13,225	—		(11)		—		(11)
Net loss	—	—		—		(2,037)		(2,037)
Balances as of March 31, 2023	2,107,339	$	2	$	127,735	$	(124,240)	$	3,497
2022
Balances as of December 31, 2021	610,364	$	1	$	122,542	$	(112,508)	$	10,035
Stock-based compensation	—	—		221		—		221
Issuance of common stock for service	250	—		3		—		3
Net loss	—	—		—		(2,332)		(2,332)
Balances as of March 31, 2022	610,614	$	1	$	122,766	$	(114,840)	$	7,927

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COMMON STOCK WARRANTS (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Schedule of common stock warrant activity

The following table summarizes the common stock warrant activity for the three months ended March 31, 2023:

	Shares	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (years)
Outstanding as of December 31, 2022	4,414,810	$	6.58	3.0
Issued	—	—		—
Exercised	(1,230,000)	3.50		—
Expired	—	—		—
Outstanding as of March 31, 2023	3,184,810	7.78		2.8

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LOSS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Schedule of outstanding potentially dilutive securities

The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted loss per share attributable to common stockholders (in common stock equivalent shares):

	Three Months Ended March 31,
	2023		2022
Common stock warrants	$	3,184,810	$	226,572
Restricted stock units	—		33
Common stock options	280,448		72,366
	$	3,465,258	$	298,971

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BASIS OF PRESENTATION (Details) $ in Thousands	Mar. 31, 2023 USD ($) state territory	Dec. 31, 2022 USD ($)
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 | $	$ 124,240	$ 122,203
Cash and cash equivalents | $	$ 2,748	$ 4,775

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BALANCE SHEET COMPONENTS - Schedule of accounts receivable, net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable	$ 50	$ 119
Allowance for uncollectible accounts	(4)	(6)	$ 0	$ 0
Accounts receivable, net	$ 46	$ 113

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BALANCE SHEET COMPONENTS - Schedule of allowance for uncollectible accounts (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance as of beginning of period	$ 6	$ 0
Increase in provision	0	0
Amounts written off, less recoveries	(2)	0
Balance as of end of period	$ 4	$ 0

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BALANCE SHEET COMPONENTS - Schedule of inventory, net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 771	$ 772
Work in progress	6	0
Finished goods	56	99
Total inventory	833	871
Less: reserve for obsolescence	(18)	(18)	$ (26)	$ (29)
Inventory, net	$ 815	$ 853

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BALANCE SHEET COMPONENTS - Schedule of activity in reserve for obsolescence (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Inventory, Valuation Reserves [Roll Forward]
Balance as of beginning of period	$ 18	$ 29
Increase in reserve	0	0
Amounts relieved	0	(3)
Balance as of end of period	$ 18	$ 26

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BALANCE SHEET COMPONENTS - Schedule of prepaid expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Software licenses	$ 113	$ 157
Marketing programs and conferences	10	74
Insurance	93	61
Patents	24	39
Professional services	198	41
Other	12	6
Total prepaid expenses	$ 450	$ 378

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BALANCE SHEET COMPONENTS - Schedule of property and equipment, net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Accumulated depreciation and amortization	$ (2,319)	$ (2,283)
Property and equipment, net	259	294
Depreciable Property, Plant and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2,578	2,572
Property and equipment, net	259	289
Research and development equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,563	1,558
Office and computer equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	801	800
Autos
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	54	54
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	41	41
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	119	119
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 0	$ 5

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BALANCE SHEET COMPONENTS - Schedule of accrued expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Compensation, severance and related benefits	$ 416	$ 497
Legal services	150	36
Product warranty	18	18
Personal property and franchise tax	0	6
Other	0	3
Total accrued expenses	$ 584	$ 560

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LEASES - Schedule of lease cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease cost	$ 56	$ 56
Finance lease cost:
Amortization of right-of-use asset	0	16
Interest on lease liability	0	1
Total finance lease cost	$ 0	$ 17

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LEASES - Schedule of maturities of operating leases liabilities (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Leases [Abstract]
2023	$ 149
2024	186
Total operating lease payments	335
Less imputed interest	(19)
Total operating lease liabilities	$ 316

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STOCK-BASED COMPENSATION - Narrative (Details) - 2018 Equity Incentive Plan - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2018	Oct. 12, 2022
Stock-Based Compensation (Details) [Line Items]
Shares authorized (in shares)			348,614
Common stock, available for issuance (in shares)	164,522
Unrecognized compensation cost	$ 403
Stock Options
Stock-Based Compensation (Details) [Line Items]
Options, term		5 years
Unrecognized compensation cost, period of recognition	24 months
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

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STOCK-BASED COMPENSATION - Schedule of stock option activity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Stock-Based Compensation (Details) [Line Items]
Outstanding (in shares)	280,448	280,810
Number of Options
Beginning Balance (in shares)	280,810
Granted (in shares)	0
Exercised (in shares)	0
Forfeited (in shares)	(326)
Expired (in shares)	(36)
Ending Balance (in shares)	280,448	280,810
Exercisable (in shares)	98,406
Weighted Average Exercise Price Per Share
Beginning Balance (in dollars per share)	$ 17.00
Granted (in dollars per share)	0
Exercised (in dollars per share)	0
Forfeited (in dollars per share)	0
Expired (in dollars per share)	0
Ending Balance (in dollars per share)	17.11	$ 17.00
Exercisable (in dollars per share)	$ 32.22
Weighted Average Remaining Contractual Term (years)
Outstanding	4 years 4 months 24 days	3 years 10 months 24 days
Stock Options, Inducement Awards
Stock-Based Compensation (Details) [Line Items]
Outstanding (in shares)	99,000
Number of Options
Ending Balance (in shares)	99,000

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STOCK-BASED COMPENSATION - Schedule of restricted stock unit activity (Details) - Restricted Stock Units	3 Months Ended
	Mar. 31, 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

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STOCK-BASED COMPENSATION - Schedule of stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Stock-Based Compensation (Details) [Line Items]
Total stock-based compensation expense	$ 166	$ 224
Research and development
Stock-Based Compensation (Details) [Line Items]
Total stock-based compensation expense	4	1
Selling, general and administrative
Stock-Based Compensation (Details) [Line Items]
Total stock-based compensation expense	$ 162	$ 223

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STOCKHOLDERS' EQUITY - Activity in stockholder s' equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Apr. 12, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares)	809,648
Beginning Balance	$ 5,279	$ 10,035
Stock-based compensation	166	221
Issuance of common stock upon exercise of warrants	0
Issuance of common stock for service	100	3
Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes	(11)
Net loss	$ (2,037)	(2,332)
Ending Balance (in shares)	2,107,339
Ending Balance	$ 3,497	$ 7,927
Subsequent Event | Series C, Registered Direct Offering
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock sold, price per share (in dollars per share)			$ 1.75
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares)	809,648	610,364
Beginning Balance	$ 1	$ 1
Issuance of common stock upon exercise of warrants (in shares)	1,230,000
Issuance of common stock upon exercise of warrants	$ 1
Issuance of common stock for service (in shares)	54,466	250
Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes (in shares)	13,225
Ending Balance (in shares)	2,107,339	610,614
Ending Balance	$ 2	$ 1
Additional Paid-In Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	127,481	122,542
Stock-based compensation	166	221
Issuance of common stock upon exercise of warrants	(1)
Issuance of common stock for service	100	3
Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes	(11)
Ending Balance	127,735	122,766
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(122,203)	(112,508)
Net loss	(2,037)	(2,332)
Ending Balance	$ (124,240)	$ (114,840)

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STOCKHOLDERS' EQUITY - Narrative (Details) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Stockholders’ Equity [Line Items]
Exercised (in dollars per share)	$ 3.50
Common Stock
Stockholders’ Equity [Line Items]
Issuance of common stock upon exercise of warrants (in shares)	1,230,000
Issuance of common stock for service (in shares)	54,466	250
Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes (in shares)	13,225

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COMMON STOCK WARRANTS - Schedule of common stock warrant activity for the period (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Shares
Beginning Balance (in shares)	4,414,810
Issued (in shares)	0
Exercised (in shares)	(1,230,000)
Expired (in shares)	0
Ending Balance (in shares)	3,184,810	4,414,810
Weighted Average Exercise Price Per Share
Beginning Balance (in dollars per share)	$ 6.58
Issued (in dollars per share)	0
Exercised (in dollars per share)	3.50
Expired (in dollars per share)	0
Ending Balance (in dollars per share)	$ 7.78	$ 6.58
Weighted Average Remaining Contractual Term (years)
Beginning Balance (in years)	2 years 9 months 18 days	3 years
Ending Balance (in years)	2 years 9 months 18 days	3 years

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COMMON STOCK WARRANTS - Narrative (Details)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Class of Warrant or Right [Line Items]
Exercised (in dollars per share) | $ / shares	$ 3.50
Common Stock
Class of Warrant or Right [Line Items]
Issuance of common stock upon exercise of warrants (in shares) | shares	1,230,000

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LOSS PER SHARE -Schedule of outstanding potentially dilutive securities (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	3,465,258	298,971
Common stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	3,184,810	226,572
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	0	33
Common stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	280,448	72,366

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CONTINGENCIES - Narrative (Details)	1 Months Ended
	Jul. 31, 2020 USD ($)
Superior Court of the State of California, Kennan E. Kaedar Litigation | Minimum | Pending Litigation
Loss Contingencies [Line Items]
Damages sought (in excess of)	$ 500,000

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SUBSEQUENT EVENTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	Apr. 12, 2023	Mar. 31, 2023	Dec. 31, 2022
Subsequent Event [Line Items]
Exercise price (in dollars per share)		$ 7.78	$ 6.58
Subsequent Event | April 2023 Registered Direct Offering
Subsequent Event [Line Items]
Exercise price (in dollars per share)	$ 1.62
Warrants, expiration period	5 years 6 months
Subsequent Event | April 2023 Registered Direct Offering | Maximum
Subsequent Event [Line Items]
Number of warrants (in shares)	857,146
Subsequent Event | Common Stock, Warrants Issued to Placement Agent, April 2023, Registered Direct Offering
Subsequent Event [Line Items]
Exercise price (in dollars per share)	$ 2.1875
Warrants, expiration period	5 years
Subsequent Event | Common Stock, Warrants Issued to Placement Agent, April 2023, Registered Direct Offering | Maximum
Subsequent Event [Line Items]
Number of warrants (in shares)	64,286
Subsequent Event | Series C, Registered Direct Offering
Subsequent Event [Line Items]
Common stock sold (in shares)	857,146
Common stock sold, price per share (in dollars per share)	$ 1.75
Common stock sold, gross proceeds	$ 1.5