CEA Industries Inc.

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Good afternoon, ladies and gentlemen, and welcome to the CEA Industries Q2 2022 earnings conference call. Joining us today are the company's chairman and CEO, Tony McDonald, as well as the company's CFO, Ian Patel. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions at the end. If you would like to ask a question via the phone lines, you may press star one to enter the queue at any time. Should your question be answered and you wish to leave the queue, please press star two. If you have joined via the webcast, please use the ask question button on your webcast viewer window. Before we begin, please be advised that this call may contain statements of a forward-looking nature relating to future events. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. These statements reflect CEA industry's current beliefs and the number of important factors could cause actual results to differ materially from those expressed in this call, including the risk factors set forth in the company's Form 10-K, which was filed with the SEC. Please refer to the SEC filings for a detailed discussion of the risks and uncertainties associated with their business. Also, please note that the company filed its quarterly report on Form 10-Q and issued a press release announcing second quarter results earlier today. These documents can be found on the Investor Relations section of the company's website at ceaindustries.com. If you would like to be added to the company's email distribution list, please send an email to info at ceaindustries.com. It is now my pleasure to turn the floor over to Tony McDonald, Chairman and CEO of CEA Industries. Sir, the floor is yours.

Thank you and good afternoon, everyone. As highlighted in our earnings press release, during the second quarter, we generated over 70% growth on the top line and nearly doubled gross margin compared to Q1. However, the current market environment is significantly different as compared to the prior year. Inflation and the effects of supply chain challenges continue to impact revenue and profitability. Nonetheless, We are navigating the environment and expect to continue driving growth and improving profitability in the second half of the year. Over the first half of 2022, we made significant investments in our sales, marketing, and product development initiatives. Our Q2 results reflect these investments with a solid increase in quarter-over-quarter bookings. We not only expanded contracts with current customers, but also signed multiple new agreements throughout the quarter. One specific contract I'd like to highlight is with Green Brothers Farm, a family-owned and operated farm that is developing a 26-acre site exclusively for indoor cannabis cultivation. We anticipate revenues of approximately $10 million over an estimated two- to three-year period. The initial contract, valued at roughly $1.2 million, is for the first phase of products and services, which is estimated to be completed by the end of the year. While we still have work to do to execute on our organic growth initiatives, we believe the early results from our investments in sales and marketing are encouraging. Also during the second quarter, we established a partnership with Merida Capital, a cannabis-focused private equity firm to be the preferred provider of various products and services for Merida's indoor cultivation facilities. Our subsidiary, Cerner Cultivation Technologies, has worked with Merida on several projects in the past, and our success in effectively building out their facilities is what ultimately drove this formal partnership. We are excited to utilize our expertise in development, design, and engineering to help them build the most efficient and state-of-the-art cultivation facilities in the market. As I have mentioned on past conference calls, we are intensely focused on identifying both organic and inorganic growth opportunities beyond our traditional cannabis end market including the rapidly growing urban indoor farming market. We have also continued to make headway with expanding our offerings at the product level. In July, we launched our partnership with Cleanleaf for their outer control and air filtration products. We are excited about the pipeline we have in development, and we expect new product launches in the coming months. While a few states this year had disappointing outcomes, on cannabis legalization efforts. There are several states we look forward to serving as their cultivation licensing and rules and regulations are finalized, particularly on the East Coast. Rhode Island passed full legalization in May, and Maryland has full legalization on their ballot this November. New Jersey's recreational sales began earlier this year, and the Cannabis Regulatory Commission is still accepting applications for recreational cannabis businesses. New York regulators have approved regulations that will govern adult use sales. The portal to apply for a cultivation and license in New York is expected to go live this month. Mississippi started accepting applications for cultivators in June. This state has a low barrier of entry, so we anticipate several new build-out opportunities. We have been actively marketing in all of these states through trade shows, social media, SEO, and advertising, and we are currently pursuing several leads we have secured over the past few months. At this time, I will pass it over to our Chief Financial Officer, Ian Patel, to cover our second quarter financial highlights before returning for closing remarks. Ian?