Natural Health Trends Corp.

Greetings. Welcome to Natural Health Trends Corp's second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. Please note this conference is being recorded. I will now turn the conference over to Michelle Glidewell with Natural Health Trends Corp. Thank you. You may begin.

Thank you, and welcome to Natural Health Trends' second quarter 2025 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 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 second quarter 2025 financial results. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer. Second quarter net sales were $9.8 million, a 6% decrease compared to the second quarter of 2024. It was a challenging quarter due to heightened economic uncertainty because of the evolving trade tensions that continue to weigh heavily on consumer sentiment in our biggest market. Facing an increasingly uncertain global trade environment, we are actively transitioning our U.S.-based supply chain to trusted manufacturing partners in Asia closer to our main markets. We aim to reduce exposure to unpredictable tariffs, streamline logistics by consolidating vendors in transportation lanes, and to lower logistic costs. In addition, this move enhances our access to specialized R&D resources and technical support, while allowing us to maintain strong quality control standards. We believe this strategic realignment positions us to better serve our customers mitigate risk, and drive long-term value creation. Around the world, we continue to execute our programs, promotions, and incentives designed to drive engagement, enhance customer loyalty, and support sales performance. During the quarter, we celebrated the achievements of top performers from multiple markets with incentive trips to the Maldives and Paris. We also executed a dynamic slate of in-person regional and local engagements. including training sessions, product seminars, leadership development programs, and initiatives focused on driving customer acquisitions and retentions. Earlier this month, we celebrated the official launch of our newest market, Columbia. The grand opening event was well attended and filled with energy, reflecting strong enthusiasm for growth across South America. We are excited to welcome Columbia to our global network, and are confident that our proven high-impact products will support healthier lifestyles while also offering individuals the opportunity to build meaningful income and a brighter future. As these economic headwinds persist, we're exercising operational discipline with a continued focus on expense management, protecting margins, inventory control, and, as previously mentioned, supply chain recalibration to mitigate tariff uncertainty. Despite near-term pressures, our long-term fundamentals remain strong. We're investing in our brand programs, incentives, product innovation, and digital enhancements to drive recovery and future growth. We're actively listening and engaging with our field leaders and customers and adjusting tactics to ensure we remain resilient. With that, I'd like to turn the call over to our CFO, Scott Davidson, to discuss our financial results in greater detail. Scott?