iPower Inc.

Good afternoon, everyone, and thank you for participating in today's conference call to discuss iPower's financial results for its fiscal second quarter, 2024, ended December 31st, 2023. Joining us are iPower's chairman and CEO, Mr. Lawrence Tan, and the company's CFO, Mr. Kevin Vasily. Mr. Vasily, please go ahead.

Thank you, Operator, and good afternoon, everyone. By now, everyone should have access to our fiscal second quarter 2024 earnings press release, which was issued earlier today at approximately 4 or 5 p.m. Eastern Time. The release is available in the investor relations section of our website at meetipower.com. This call will also be available for webcast replay on our website. Following our prepared remarks, we'll open the call for your questions. Before I introduce Lawrence, I'd like to remind listeners that certain comments made on this conference call and webcast are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, state of the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict, and many of which are outside our control. Our actual results and financial condition may differ materially from those indicated in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC, including our annual report on Form 10-K, which was filed with the SEC on September 15, 2023. not place undue reliance on any forward-looking statements which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to revise or publicly release the results of any revision to any forward-looking statements. With that, I would like to now turn the call over to iPower's Chairman and CEO, Mr. Lawrence Tan.

Lawrence. Thank you, Kevin, and good afternoon, everyone. In our fiscal second quarter, we continued to expand gross margin, drive down operating costs, and generated another period of positive cash flow from operations. We also gained further traction in our super-sweet supply chain business, which represents an exciting opportunity for us as we continue to work through a robust pipeline of prospects with compelling product portfolios. Due to the improvement in the supply chain environment, our largest channel partner has progressively tightened their inventory management as shipping lead times have become more favorable. Although our order volumes were impacted for the quarter, we believe this channel partner's inventory is now at the preferred level and we are well equipped to meet the demand with the high-quality, market-leading products that our customers expect. Over the past several quarters, we have placed a strong emphasis on diversifying revenue, showcased by the launch of our super-sweet supply chain offerings. We have also created a strong brand presence on social commerce channels like TikTok Shop, where we are an improved seller for both short-form reviews and live shopping. Although the sales channel is now in its infancy, the early results are compelling, and we will continue to invest in the channel as it grows both in the U.S. and abroad. As I mentioned earlier, we have building positive momentum in our SuperSuite business, which is growing at a strong clip. The acceleration of revenue alongside a growing pipeline of prospects reflects the strengths of our superior supply chain, warehousing, and merchandising expertise. We are optimistic about this area of our business and hope to have a few more partners in the coming quarters. In addition to evaluating new partners for our super sweet business, we have also continued to pursue additional sales channel in the U.S. to expand our reach, diversify our client base, and explore omni-channel opportunities. For example, we currently have relationships with Home Depot and Lowe's, allowing us to sell products through their captive e-commerce sites. Although we have initiated with a small subset of categories, we believe our portfolio is well aligned with Lowe's and Home Depot's in-store and online customer base. We are optimistic that these partnerships will bring future omnichannel opportunities, specifically in brick and mortar. We look forward to deepening our relationship with Lowe's, Home Depot, and other current partners. as well as expanding into new channels across the United States. Turning to OPEX, we continue to drive material savings in our selling and fulfillment operations. We no longer bear the burden of additional warehousing expenses as we have sold through the bulk of our excess inventory. With the normalizations of supply chain, we can run our business with lower levels of inventory specifically due to faster overseas shipping lead times. As of December 31st, we have brought down inventory level by 23% compared to June 30, 2023. We have also begun to outsource our warehouse stuffing to a third party, lowering our production overhead. We expect to realize cost savings from this initiative over the medium to long run. Looking ahead, We will continue to evaluate each segment of our business to ensure our cost structure is both lean and positioned for future growth. We are seeing early signs of normalized order volume with our largest channel partner and look forward to continue providing them with our high-quality products. These actions coupled with the acceleration of a super-sweet business, will enable us to deliver on our goals with the aim of returning to profitability in 2024. I'll now turn the call over to our CFO, Kevin Vesely, and take you through our financial results in more detail. Kevin? Thanks, Lawrence.