Natural Health Trends Corp.

keypad. Please note this conference is being recorded. At this time, we'll now turn the conference over to Kim Orlando with Addo Investor Relations. Kim, you may begin.

Thank you and welcome to Natural Health Trends fourth quarter and full year 2021 earnings conference call. During today's call, there may be statements made relating to the future results of the company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results, performance, or achievements could differ materially from those anticipated in such forward-looking statements through the result of certain factors, including those set forth in the company's filing with the Securities and Exchange Commission. It should also be noted that today's call will be webcast live and can be found on the investor section of the company's corporate website at naturalhealthtrendscorp.com. Instructions can be found for accessing the archived version of the conference call in today's financial results press release, which was issued at approximately 9 o'clock a.m. Eastern Time. At this time, I'd like to turn the call over to Chris Scharn, President of Natural Health Trends.

Thank you, Kim, and thanks to everyone for joining us this morning to discuss our fourth quarter and full year 2021 financial results. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer. We ended the year on a high note with a strong fourth quarter. Our revenue of $16.1 million increased 13% over the third quarter of 2021. In addition, we achieved our seventh consecutive quarter of positive operating income and net income. The sequential improvement in revenue reflected strength in order volume. given our increased ability to adapt to the ever-changing macroeconomic environment resulting from the pandemic. We are extremely proud of our skilled leaders who have remained flexible and operated through these trying times. As discussed on our last conference call, the third quarter of 2021 was the first quarter since the beginning of the pandemic in which we were unable to organize any in-person events in China, Macau, or Hong Kong. In late December, we were able to cautiously resume some in-person activities. We sponsored a domestic fly-high training in Kunming with over 500 attendees. The event was designed to help motivate and better equip our existing leaders to conduct business amid ongoing government mandated restrictions and lockdowns. While it is still difficult to ensure normal levels of attendance, Demand for our products in the weeks that follow remain at healthy levels. We also held multiple webinars, online training sessions, and events during the quarter to help sustain momentum. Our deferred revenue balance grew by $2.5 million from September 30th to December 31st, 2021. This is a testament to our strong order volume. which increased 29% compared to the third quarter of 2021 and 20% over the fourth quarter of last year. For the full year 2021, our order volume improved 9% over 2020 levels, which was supported by our successful second quarter event held in Macau along with multiple in-person fly-high trainings and road shows throughout the year. We were very pleased to see that our revamped incentive structure and programs have resonated well with our leader base. In addition, our quarter-volume trends demonstrate ongoing strength in demand for our high-quality products, which are designed to improve health and overall wellness. Additionally, we were pleased to unveil a new product, Biotic Trill, which became available for sale in late November and contributed meaningfully to MedCell's Biotech Trio is a daily supplement featuring not only prebiotics but also postbiotics together in one comprehensive formula to help restore beneficial gut bacteria. We look forward to releasing additional innovative products throughout 2022. In regard to our markets outside of Hong Kong and China, We deliver encouraging results in Japan and Malaysia during the fourth quarter with net sales increasing over the prior quarter. In Japan, we achieved triple digit growth in sales over both the prior quarter and year ago period, driven by the persistence of our leaders in the region to grow their business successfully through the pandemic. Japan alone contributed more than half a million dollars of revenue in the fourth quarter which increased by more than $400,000 year over year. Additionally, we remain optimistic that our operations in South America will further expand based on our success in Peru. We continue to direct additional resources to this region, and with the support of our Peruvian leadership team, we are making progress in establishing a presence in Colombia and Bolivia. As the economy continues to recover, We believe we are well positioned to benefit from positive trends as consumers across the globe are increasingly focused on wellness-related products to support a healthy lifestyle. As we look ahead into 2022, the effects of the COVID-19 pandemic and the associated government-mandated restrictions and lockdowns will likely continue to present headwinds to our business. These types of disruptions may adversely affect our ability to hold in-person meetings and events in the future, which are important to our operations. However, in the interim, we believe we can continue to support our order volume due to the unwavering hard work and dedication of our employees, leaders, and members, coupled with our ability to quickly respond and adapt to changing market conditions. In summary, we are very pleased to end the year on a high note. Despite the uncertain operating environment since the onset of the pandemic, we remain focused on managing the elements of our business that are within our control to improve both our operational and financial performance. As such, we are guardedly optimistic we will benefit from a gradual resumption of in-person member events and activities going forward. Thank you again. to all of our loyal leaders, members, preferred customers, employees, and stockholders for your ongoing support of NHG Global. With that, I'd like to turn the call over to our CFO, Scott Davidson, to discuss our financial results in greater detail. Scott?