cbdMD, Inc.

Good afternoon. Welcome to the CBDMD Inc's December 31st, 2020 first quarter earnings call and update. This afternoon, the company issued a press release that provided an overview of its first quarter fiscal 2021 results, which followed the filing of its quarterly report form 10Q. Today's conference call is being recorded and will be available online at cbdmd.com in accordance with CBDMD's retention policies. All participants on this call will be in a listen-only mode. The call will be followed by a question-and-answer session. At this time, I would now like to turn the conference over to Ronan Kennedy, the company's Chief Financial Officer. Ronan, please go ahead.

Thank you, Paul, and thank you all for joining the CBDMD's December 31, 2020, first quarter fiscal 2021 earnings call and update. On the call today, we also have our chairman and co-CEO, Marty Sumacrest, as well as our chief marketing officer, Ken Cohn. Following the Safe Harbor statements, Marty and Ken will provide an overview of our business, and I'll provide a summary of the quarterly financial results. Following that, we'll open up the call for questions. We'd like to remind everyone that various remarks about future expectations, plans, and prospects constitute forward-looking statements for purposes of Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. CBDMD cautions that these forward-looking statements are subject to risk and uncertainties that may cause our actual results to differ materially from those indicated, including risks described in the company's quarterly report on Form 10-Q for the quarter ending December 31, 2020, and your report on Form 10-K for the year ending September 30, 2020, and our other filings with the SEC, all of which can be viewed on the company's website at cbdmd.com or on the SEC's website at www.sec.gov. Any forward-looking statements made on this conference call speak only as of today's date, Tuesday, February 9, 2021, and CBDMD does not intend to update any of these forward-looking statements to reflect events or circumstances that would occur after today's date, except as may be required by federal securities laws. With that, I'd like to turn the call over to CBDMD's chairman and co-CEO, Marty Sumacrest.

Ronan, thank you, and welcome to everyone who's joining us this afternoon. On our last earnings call, I said I believe CBDMD was one of the most powerful CBD companies in the world. I believe today's record results back up that statement. With approximately 80% of our net sales last quarter coming from e-commerce channel, I believe we can now add that we're one of CBD industry's most powerful e-commerce brands as well. Our brand's online success has fueled our e-commerce business, which continues to drive our sales growth. Based on a recent report from SimilarWeb, cbdmd.com ranks at the top as one of the most visited CBD websites in the world. As we push ahead into fiscal 2021, we believe our plan to expand our reach into a new product category such as the launch of CBDMD Botanicals, our beauty and skincare brand, will help continue to drive our sales as well as diversify and expand our customer demographics. Despite the COVID-19 pandemic, we continued to show record net sales results, 12.3 million for the quarter, end of December 31, 2020, which was a year-over-year quarterly net sales growth of 22%. At the same time, we also reported record quarterly gross profit margins of 72%. We remain focused on our core competency, which is our direct-to-consumer e-commerce engine, which increased 41% year-over-year and 13% sequentially on a quarterly basis. We have one of the strongest balance sheets in the CBD industry, $28.8 million in cash at the end of last quarter and virtually no debt. We reduced our year-over-year quarterly operating loss by 71% and our non-gash-adjusted quarterly operating loss by 90%. We continue to find efficiencies in our operations. We decreased our total quarterly operating expenses by 15% year-over-year and 2% sequentially, while at the same time making significant investments in regulatory and R&D initiatives. We remain confident that we'll continue to gain market share of total addressable global CBD market, while at the same time delivering on a positive non-GAAP adjusted operating income during this fiscal year. With respect to regulatory matters, CBDMD continues to show leadership in the industry. This commitment was evident by our recent announcement that we've retained former FDA official Dr. Sybil Swift as our regulatory consultant to oversee our upcoming GMP audits and prepare the company for its products for future certifications. The addition of Dr. Swift demonstrates to our customers and our continued commitment to the quality and safety of our products. Dr. Swift's involvement also demonstrates to the FDA and to other global regulatory authorities that CBDMD's commitment to achieving the highest regulatory standards and a science-based approach will be instrumental in strengthening our position as CBD industry's leader in regulatory and GMP compliance. we're pleased to announce that Adara Acquisition Corp., a newly formed blank check company, or SPAC, priced its initial public offering of $100 million yesterday. Today, the units commenced trading on the NYSE American Stock Exchange under ticker symbol ADRA.U. CBDMD is an investor in Adara Sponsor LLC, the primary sponsor of Adara Acquisition Corp. Now it's my pleasure to introduce Ken Cohn, our Chief Marketing Officer, who will talk about our brands and marketing strategies. Ken, go ahead.