OneSpaWorld Holdings Limited

and earnings growth across the global expanse of our operations, always seeking to enhance value for our One Spa World stakeholders. Our performance during the initial return to service confirms that we are positioned powerfully to capitalize on the strength of our team, operating platform, and business model to drive long-term profitable growth as cruise ship and destination resort spa operations fully resume. With that, I will hand the call over to Steven, who will comment on our third quarter 2021 results and liquidity position.

Steven. Thank you, Leonard. Good morning, ladies and gentlemen.

Thank you for joining us today. As Leonard mentioned, the third quarter saw sales and operating performance accelerate from the second quarter of the year, reflecting our team's expert ability to prepare, and returns to service under extraordinary conditions. I will now share just a few of the third quarter 2021 highlights. For the third quarter, total revenues were $43.6 million compared to $1.8 million in the third quarter of 2020. The three months ended September 30th, 2021 revenues were derived primarily from our 78 health and wellness centers onboard ships having resumed voyages and our 45 open and operating destination resort health and wellness centers. Cost of services were $33.2 million compared to $7.2 million in the 2020 third quarter. The increase was primarily attributable to costs associated with the increased service revenue of $34.8 million in the quarter from our operating health and wellness centers at sea and on land, and increased costs related to the resumption of operations at our health and wellness centers at sea and on land. Cost of products were $8.4 million compared to $1.5 million in the 2020 third quarter. The increase was primarily attributable to costs associated with increased product revenue of $8.1 million in the quarter from our operating health and wellness centers at sea and on land, together with a $2 million inventory reserve recorded in the current quarter to reflect the write-down of inventory that is expected to expire due to the extended pause in operations caused by the COVID-19 pandemic. Net loss was $12.3 million compared to a net loss of $47.5 million in the third quarter of 2020. The $35.2 million improvement was primarily a result of a $7.2 million reduction in our loss from operations, plus the $28.2 million positive change in the fair value of warrants. The change in fair value of warrants is the result of changes in market prices deriving the value of the financial instruments. Adjusted EBITDA, which includes the negative impact of the $2 million inventory reserve was a loss of $4.6 million as compared to an adjusted EBITDA loss of $12.2 million in the third quarter of 2020. We ended the quarter with total liquidity of $47.6 million. At quarter end, $13.6 million remained available under the ATM program, and as of today, $10 million remains available under that program. Availability under our line of credit was $13 million at quarter end. The cash burn rate for the quarter of $12.7 million was slightly above our expectations, driven by the timing of receipts. We expect cash burn between $8 and $10 million in the fourth quarter as revenue generated from an increasing number of voyages offset some of the higher cash expenditure in anticipation of these sailings. As it relates to our outlook for 2021, Due to the ongoing business disruption and uncertainty surrounding the continued impact to our business from the COVID-19 pandemic, we will continue to not provide guidance. Notwithstanding the foregoing, we expect to record a sequential improvement in revenue and profitability in the fourth quarter as compared to the third quarter 2021 results and generate positive cash flow from operations in December. We continue to expect to incur a net loss on a gap and adjusted basis for the fourth quarter and fiscal year. With that, we'll open up the call for questions. Operator, please.