Natural Health Trends Corp.

Greetings, and welcome to Natural Health Terms Corp. Second Quarter 2022 Earnings Conference Call. At this time, all participants are on listen-only mode. If anyone should require operator assistance during a conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kim Orlando, with Addo Investor Relations. Thank you. You may begin.

Thank you, and welcome to Natural Health Trends' second quarter 2022 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 filings 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, Michelle. And thanks to everyone for joining us this morning to discuss our second quarter 2022 financial results. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer. In the second quarter, we continued to face significant COVID-related disruptions as lockdowns and social restrictions, along with supply chain bottlenecks, persisted in Greater China. Despite these challenges, we generated revenue of $13.4 million, an increase of 16%, compared to the first quarter of 2022. The increase over prior quarter can be attributed to a well-attended virtual event held in late June, as well as a promotional incentive to which our members strongly responded. We recognized $16.2 million net sales in the second quarter of 2021, The year-over-year comparison was especially challenging given that a year ago, our first major in-person event since the initial coronavirus outbreak was held in Macau, and we were able to hold multiple other in-person activities. It is admittedly difficult to replicate online the excitement and energy that comes from live events. We appreciate and recognize that our teams continue to work hard and adapt to the ever-changing regulations and social restrictions. Collaborating with our leaders, we implemented a new virtual training system which incorporates company-sponsored product training and member-led business, motivational, and leadership training to better support the ongoing development and engagement of our members. Turning to our markets outside of China and Hong Kong, We managed to return to growth in our European market, fueled by our business in Sweden. In April, we held a successful product training event with more than 150 attendees. Additionally, in-person and virtual activities coupled with sales initiatives designed at the local level continue to be key elements of our strategy to support the markets of North America, India, Peru, Mexico, Japan, and CIS. These activities included leadership development trainings, product education sessions, and incentive trips. In May, we celebrated Peru's fifth anniversary, joining 250-plus members on a virtual session to commemorate the milestone. Despite the general global economic downturn impacting many of our markets, we remain committed to the fundamentals of our business and to driving future growth through new local-level promotional initiatives, ongoing leader development and training, technology advancements to enhance the user experience, and provide insights for improved business management and market expansion. In summary, we are pleased with the second quarter financial performance to achieve sequential top-line growth and deliver bottom-line profitability due to our ongoing efforts to manage costs in alignment to sales. With that, I'd like to turn the call over to our CFO, Scott Davidson, to discuss our financial results in greater detail. Scott?