Digital Brands Group, Inc.

Greetings, and welcome to Digital Brands Group Incorporated's first quarter 2021 earnings conference call. At this time, our participants are on a listen-only mode. A brief question and answer session will follow the presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host today, Mr. Reid Galman. Please proceed, sir.

Thank you. Good day, everyone, and welcome to the Digital Brands Group first quarter fiscal year 2021 earnings conference call webcast. As mentioned, all participants will be in listen-only mode. This earnings call may contain forward-looking statements as defined in Section 27A of the Securities Act of 1933 as amended, including statements regarding, among other things, the company's business strategy, and growth strategy. Expressions which identify forward-looking statements speak only as of the date the statement is made. These forward-looking statements are based largely on our company's expectations and are subject to a number of risks and uncertainties, some of which cannot be predicted or quantified and are beyond our control. Future developments and actual results could differ materially from those set forth and contemplated by the underlying forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the forward-looking information will prove to be accurate. On the conference call today are Hill Davis, Chief Executive Officer, Reid Yeoman, Chief Financial Officer, and Laura Dowling, our Chief Marketing Officer. I'll now turn it over to Hill Davis, our Chief Executive Officer, to introduce the call. Thank you.

Welcome, everyone, and good morning. Our first quarter 2021 results are a reflection of a combination of factors, which are limited cash, limited inventory, minimal marketing spend, and the continued effects of COVID-19 impact on Bailey 44. We expect to see improved operating results in the second quarter, which is done in almost three days, and significantly improved operating results in the third quarter and fourth quarter of 2021, now that we have sufficient cash and inventory to support expected levels of operations. Since our IPO this May, which bolstered our balance sheet with cash for working capital, we have been able to, one, ship inventory for distilled, which started to arrive at our warehouse in late May, with the majority arriving this mid-July to mid-September. Two, ship Bailey 44 product to wholesale accounts starting mid-May, with a significant acceleration in wholesale booking orders for this fall that are in line with pre-pandemic wholesale levels. And let me repeat that. Ship Bailey 44 product to wholesale accounts starting mid-May with a significant acceleration in wholesale booking orders for this fall that are in line with pre-pandemic wholesale levels. And three, develop a marketing and advertising plan, including an Amazon marketing strategy, which we are rolling out starting mid-July with the majority of the spend starting this fall. Additionally, we closed our acquisition of Harper and Jones as part of the IPO. We were not able to include operating results of Harper and Jones in our Q1 earnings as it was not acquired at that point. For the first quarter of 2021, Harper and Jones had $903,000 in revenue and $60,000 in EBITDA. Finally, we announced the nine binding LOI to acquire stateside, which if the acquisition is consummated, will be accretive to revenue and operating results. The stateside acquisition and our goal to acquire additional accretive acquisitions, as noted in our S-1, would not have been possible if we had not gone public. I'm going to turn it over to Reed Joven, our CFO, to report the first quarter results.