SenesTech (SNES) Risk Analysis

Until such time, if ever, as we can generate sufficient product revenues, we expect to finance our cash needs primarily through the sale of equity securities and debt financings, and possibly through credit facilities and government and foundation grants. We may also seek to raise capital through third-party collaborations, strategic alliances, and similar arrangements. We currently do not have any committed external funding. Raising funds in the future may present additional challenges, and future financing may not be available in sufficient amounts or on terms acceptable to us, if at all. The terms of any financing arrangements we enter into may adversely affect the holdings or the rights of our stockholders, and the issuance of additional securities by us, or the possibility of such issuance, may cause the market price of our shares to decline. Certain of our agreements with investors and our outstanding warrants contain provisions that impose limitations on our ability to participate in certain variable rate transactions, which may limit our opportunities to obtain financing in sufficient amounts or on acceptable terms. The sale of additional equity or convertible debt securities would dilute all of our stockholders. Our various warrants contain other terms that may affect our fundraising. In connection with any future equity offering, we may agree to amend the terms of certain of our outstanding warrants. Any such amendments may, among other things, decrease the exercise prices or increase the term of exercise of those warrants. The incurrence of indebtedness through credit facilities would result in increased fixed payment obligations and, potentially, the imposition of restrictive covenants. Those covenants may include limitations on our ability to incur additional debt, making capital expenditures or declaring dividends, and may impose limitations on our ability to acquire, sell, or license intellectual property rights and other operating restrictions that could adversely impact our ability to conduct our business. If we raise additional funds through collaborations, strategic alliances, or licensing arrangements or other marketing or distribution arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs, or product candidates or grant licenses on terms that may not be favorable to us. If we are unable to expand our operations or otherwise capitalize on our business opportunities, our business, financial condition, and results of operations could be materially adversely affected. If we are unable to raise additional funds when needed, we may be required to delay, limit, reduce, or terminate our product development or commercialization efforts, or grant others rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves.

Our stock could be subject to wide fluctuation in response to many risk factors listed in this section, and others beyond our control, including the following: - market acceptance and commercialization of our products;- our being able to timely demonstrate achievement of milestones, including those related to revenue generation, cost control, cost-effective source supply, and regulatory approvals;- our ability to remain listed on Nasdaq;- results and timing of our submissions with the regulatory authorities;- failure or discontinuation of any of our development programs;- regulatory developments or enforcements in the United States and non-U.S. countries with respect to our products or our competitors' products;- failure to achieve pricing acceptable to the market;- regulatory actions with respect to our products or our competitors' products;- actual or anticipated fluctuations in our financial condition and operating results or our continuing to sustain operating losses;- competition from existing products or new products that may emerge;- announcements by us or our competitors of significant acquisitions, strategic arrangements, joint ventures, collaborations or capital commitments;- issuance of new or updated research or reports by securities analysts;- announcement or expectation of additional financing efforts, particularly if our cash available for operations significantly decreases;- fluctuations in the valuation of companies perceived by investors to be comparable to us;- stock price and volume fluctuations attributable to inconsistent trading volume levels of our shares;- disputes or other developments related to proprietary rights, including patents, litigation matters and our ability to obtain patent protection for our technologies;- entry by us into any material litigation or other proceedings;- sales of our common stock by us, our insiders, or our other stockholders;- exercise of outstanding warrants;- market conditions for equity securities; and - general economic and market conditions unrelated to our performance. Furthermore, the capital markets can experience extreme price and volume fluctuations that may affect the market prices of equity securities of many companies. These broad market and industry fluctuations, as well as general economic, political, and market conditions such as recessions, interest rate changes, or international currency fluctuations, may negatively impact the market price of shares of our common stock. In addition, such fluctuations could subject us to securities class action litigation, which could result in substantial costs and divert our management's attention from other business concerns, which could seriously harm our business. You may not realize any return on your investment in us and may lose some or all of your investment.

We cannot predict the extent to which an active market for our common stock will continue to develop or be sustained, or how the development of such a market might affect the market price for our common stock. Market conditions in effect at the time you acquire shares of our common stock may not be indicative of the price at which our common stock will trade in the future. Investors may not be able to sell their common stock at or above the price they acquired it.

The trading market for our common stock may depend on the research, reports and other information that securities or industry analysts, or other third-party sources of information, publish about us or our business. We do not have any control over these analysts or other third-party sources of information. From time to time inaccurate or unfavorable research or other information about our business, financial condition, results of operations and stock ownership may be published. We cannot assure that analysts will cover us or provide favorable coverage. If one or more of the analysts who cover us downgrade our stock or change their opinion of our stock, our stock price could decline. If one or more of these analysts cease coverage of us or fail to regularly publish reports on us, we could lose visibility in the financial markets, which could cause our stock price or trading volume to decline. If incorrect or misleading information is disseminated publicly by third parties about us, our stock price could decline.