Natural Health Trends Corp.

Greetings. Welcome to Natural Health Trends Corp. Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. 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 Michelle Gildwell with Natural Health Trends Corp. Thank you. You may begin.

Thank you, and welcome to Natural Health Trends' third quarter 2023 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 can differ materially from those anticipated in such forward-looking statements through the results 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 for accessing the archived version of the conference call can be found 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 Sharn, President of Natural Health Trends.

Thank you, Michelle, and thanks to everyone for joining us this morning. to discuss our third quarter 2023 financial results. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer. For the quarter, we generated revenue of $10.6 million, a decrease of 9%, compared to the third quarter of 2022. The decrease was largely accounted for by changes in deferred revenue, as orders were received later in the quarter this year. Our business is adapting to the economic landscape where Chinese consumers are reluctant to spend or invest, and where overall consumer sentiment is trepid. Yet despite this environment, we are pleased to see that orders taken during the period were roughly flat, even with continued headwinds of a stronger U.S. dollar. Q3 2023 orders compared to Q3 2022 at a constant exchange rate grew by 3%. while year-to-date 2023 orders compared to the same period last year increased 8%. The fact that our members remain responsive to our programs is a positive indicator that the promotions, incentives, and our high-quality product offerings continue to resonate and make an impact. In China and Hong Kong, our members participated in local gatherings and training events to engage and attract customers and to further develop skills such as improved product knowledge and leadership development. We look forward to an upcoming event in this month and the launch of our newest product, Relaxa Pro, a supplement designed to help reduce stress and promote calmness. The product is formulated with clinically proven ashwagandha and other relaxation-inducing ingredients such as lemon balm and magnesium. Turning our focus outside of China and Hong Kong, several of our other markets delivered strong third-quarter performances, mainly Taiwan, Peru, North America, and Japan. Each of these markets achieved an increase in orders taken at a constant exchange rate compared to prior year. Growth was primarily driven through the combination of online training and in-person events, paired with product promotions and incentive qualifications. Successfully re-engaging members in our worldwide activities helps create excitement and momentum around our business model and high-impact product offerings. In Latin America, we are getting closer to launch our business in Colombia in the fourth quarter and will continue to progress the necessary regulatory requirements to operate in Bolivia. We steadily made progress on our digital enhancement initiatives that we believe will be a key driver for future growth by enhancing member productivity and improving the overall shopping experience with us. We look forward to when we can roll out these developments to our members and customers. I'd like to thank our loyal members who remain committed to our products and to helping others achieve improved health and wellness through our product lines as well. Their ability to rise to the challenging economic environment speaks volumes about their perseverance and passion for our mission. We will continue to focus on careful planning and execution of our strategic key initiatives, including digital improvement, new product introductions, and the delivery of exceptional support. With that, I'd like to turn the call over to our CFO, Scott Davidson, to discuss our financial results in greater detail. Scott?