Energy Focus, Inc.

Greetings. Welcome to the Energy Focus fourth quarter and fiscal year and 2021 conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Brett Moss, with Hayden IR. You may begin.

Thank you, operator, and good morning, everyone. Joining me on the call today is Stephen Sokoloff, Interim Chief Executive Officer and Lead Independent Director, Todd Nestor, Chief Operating Officer and Chief Financial Officer, and Greg Galluccio, Senior Vice President of Product Management and Engineering. Before we begin today's call, I'd like to remind everyone that we'll make forward-looking statements. These statements are based upon information that represents the company's current expectations or beliefs. The results realized may differ materially from those stated. For discussion of these risks, that could affect our results, please refer to the section under the headings risk factors as well as forward-looking statements from the most recent 10-K file of the SEC. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Also, please note that during this call and in accompanying press releases, certain financial metrics are presented on both GAAP and non-GAAP adjusted basis. Reconciliations of adjusted results to the GAAP results are available in the tables attached to the earnings release which is posted on our corporate website at energyfocus.com in the investor relations section of the site. I'll now turn the call over to Stephen. Stephen, the floor is yours.

Thank you, Brett. Good morning, everyone. This is my first call as interim CEO of Energy Focus, but I have been involved with the company for over two years, first joining the board of directors in May of 2019 and then becoming lead independent director in September 2019. During that time, I had become quite familiar with the opportunities and challenges in front of Energy Focus and the talented team that remains in place. The management and engineering team at Energy Focus has historically been entrepreneurial, driving innovation and using creativity to bring new, compelling, and proprietary solutions to market. As a result, the company developed a strong portfolio of differentiated products, as well as bringing a broader product line to market that allowed the company to offer a more complete solution to customers in the retrofit lighting market. Unfortunately, the environment of the last couple of years challenged both our markets as well as the pace of development of our new product portfolio, which you have seen in our results. Now, with the near completion of several exciting new products that we believe represent clear differentiated advantages, The board determined that energy-focused needed leadership more focused on execution in launching and bringing these new products to our core markets and capitalizing on these near-term opportunities. In short, we expect we have the products and the team to succeed, and we are aligning our resources on these opportunities to rebuild a durable competitive advantage in our lighting business. My focus in the near term will be, number one, supporting the team executing on these initiatives, Number two, ensuring the disciplines and business processes to make sure we hit our launch and go-to-market plans. And number three, focusing on cash management and putting the company on a path to profitability. My goal is to position the company well for a permanent CEO that our board is actively searching for to carry that vision and focus forward. Over the past two months since I became interim CEO, we have reorganized the team, driving focus and accountability on our lines of business, as well as engineering operations and sales functions. We are also driving forward our leading new lighting products and addressing supply chain issues for cost and responsiveness. I have also recruited two new outstanding board members. We recently named two new independent directors to our board of directors, both with proven track records for driving growth and accountability. First, Jeff Parker has spent nearly 30 years managing companies in the LED market for display, medical, and lighting applications. His experience includes leadership roles at Lumini, Sora, and Rambus. Brian Legardo is a seasoned financial executive with extensive global experience leading global finance, operations, supply chain, and human resources organizations. Brian spent 12 years in executive roles at Shark Ninja, a global consumer product goods retail and direct-to-consumer e-commerce business, principally as chief financial officer from 2009 until 2017. As I mentioned before, we have realigned our organization to focus on rebuilding our core commercial and military lighting markets. Late last year, we hired Greg Galluccio as Senior Vice President of Product Management and Engineering after a 35-year career in the electrical and lighting business with Underwriters Laboratories, Levitan Manufacturing, and MaxLight. Greg is responsible for directing and implementing our product strategy, engineering, and portfolio management. In a moment, I will introduce Greg to talk about our new lighting products. Before I do that, I will mention that we have now launched our NUVO line of UVC disinfection solutions for mobile, residential, and commercial use. We are in the early stages of market introduction, focusing first on mobile applications with the traveler product built to stand on a table or in a vehicle cup holder, and then our larger tower for stationary office use. We have demonstrated the effectiveness of these products killing pathogens with multiple studies and are enthusiastic about bringing this application of lighting technology to creating a healthy workspace. Now, let me introduce Greg Galluccio to talk about our new lighting products for commercial and military markets.