Smartbird, Inc.

Tim, and the board for the opportunity to join the company during this watershed moment. I'd also like to thank Mike for helping to ensure a smooth transition and the finance team for their support. I've long admired and been a big fan of the Auburn's brand and mission, and I firmly believe that the strategic transformation plan the team has put into motion is the best path forward for the company and to maximize shareholder value. I look forward to meeting and working with you all in the future. With that, I'll pass it over to Tim.

Thanks, Annie, and welcome to the flock. We are thrilled to have you on the team. As I covered in the last call, I've been focused on four key areas as part of our strategic transformation plan. One, evangelizing the Allbirds brand. Two, helping to establish key strategic partnerships to grow our awareness. Three, working to define our future approach to sustainable innovation and footwear. And lastly, continuing to work closely on an area of deep importance to both me and the business, culture. I'm energized and excited by this work and the potential it has to support the growth of the business and the long-term expansion of the brand's audience. One example of the early fruits of this focus is our Moonshot project. As Joey mentioned, this project to create the world's first net zero shoe to market is a category first with the potential to become a long-term commercial franchise for the brand. I will continue to work to champion this spirit of innovation that has been with us since our founding. To support this focus, Joey and I, together with the board, have made the decision to transition my title from co-founder and co-CEO to co-founder and chief innovation officer. I'm looking forward to supporting Joey as he continues to lead the business as our CEO on a day-to-day basis. While my role has changed, one thing hasn't, and that's my long-term focus and belief in the potential of this brand and business. I know both how far we have come and how much further we can go. From the original Kickstarter campaign, to the launch of Allbirds and the world's most comfortable shoe, and to the recent launch of innovations like the Moonshot project, we have significant opportunities ahead. With a focus on design, innovation, and a clear vision for the role that brands will play in a new sustainable economy, we have significant potential through the strategic transformation underway. Finally, a note of thanks to our flock. Through the seven years Allbirds has been in existence, I have seen you meet every challenge with an unrelenting belief in the long-term potential of our work. At each stage of our evolution, we have been met with new challenges and new opportunities. This moment is no different. I know we will work together as one team to continue executing on our plan together with a focus on innovation, execution, and staying true to what makes our company great. Thank you.

Thank you. And at this time, we will conduct a question and answer session. As a reminder, to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. Please stand by as we queue our question roster. Our first question comes from Lorraine Hutchinson with Bank of America.