Applied UV, Inc.

Good morning. My name is Holly, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Q3 2021 Applied UV Financial Results Conference Call. At this time, all participants are in the listen-only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Kevin McGrath, Investor Relations for Applied UV. Thank you. You may begin.

Thank you, Holly, and good morning, everyone. Welcome to our third quarter 2021 earnings conference call. I'd like to remind you that our earnings call press release is available in the Investor Relations section of our website at www.applieduv.com. Before we begin, please take a moment to read the forward statements in our earnings press release. During today's call, we make certain predictive statements that reflect our current views about future performance and financial results. We base these statements and certain assumptions and expectations on future events that are subject to risks and uncertainties. Our most recent form, 10-K and 10-Q, lists some of the most important risk factors that could cause actual results to differ from our predictions. Speaking on our call today will be Q Saeed, Chief Executive Officer, and Mike Riccio, CFO of Applied UB. With that, I'll turn the call over to Q. Thank you, Kevin, and good morning, everyone.

Once again, it's my pleasure to be with you this morning to review the highlights of our third quarter performance. Third quarter net sales increased by over 127% to approximately $3.5 million from approximately $1.5 million in the third quarter in 2020. Like so many companies globally, we've experienced continuing logistics and transportation challenges in many regions, which resulted in delays in fulfilling customer orders in the second quarter. As we shared with you in the last call, we anticipate that many of those orders will be shipped to customers in the third quarter, while others are expected to ship in the fourth quarter. Net loss for the third quarter of 2021 with approximately $1 million compared to a net loss of approximately $900,000 last year in the third quarter of 2020. The net loss in 2021 was due primarily to an increase in SG&A costs to improve future operation and expand the disinfection segment of our business. Reviewing our Q3 2021 results against our Q2 2021 results, we reported more than an 88% percent increase in revenue and improvement in gross profit. Our net loss for the third quarter of 2021 improved more than 49 percent. Our net loss per share improved to negative 14 cents inclusive of preferred dividends of $241,500. This compares to a negative 23 cents net loss per share in Q2 of this year as we continue to drive sales and our momentum towards achieving profitable growth. We ended the quarter with approximately $11.7 million of cash available on our balance sheet. We're optimistic about closing this year on a high note with a good momentum heading into 2022. The strong volume momentum is expected to result in Q4, showing better year-over-year sales growth than what we've seen in Q3. We expect continued improvement in some of the logistics issues, and most importantly, we continue to benefit from a growing demand for air purification technology and solutions across a wide range of commercial healthcare and other large public facilities. At the end of Q3 and very early in Q4, we announced two significant strategic acquisitions as a part of our plan to significantly grow our air purification product portfolio and expand our customer base. On September 28th, we closed the acquisition of KISS Science and Technology. The KISS acquisition gave us the opportunity to consolidate all of our air site technologies under the Sterilumin brand and enhance our presence. in some major markets, including food distribution, wineries, and the retail sector. The KISS aerosite systems are purpose-built for perishable food processing and storage, post-harvest, and transportation industries. These industries face the challenge of finding effective ways to reduce spoilage due to ethylene gas, which is often a major issue in wine, beer, and other beverage and food processing facilities. Holly, can you mute the other lines, please?