ToughBuilt Industries, Inc.

Greetings. Welcome to the Tufts-built fourth quarter and full year 2021 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. 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 your host, Martin Galskian, CFO. Thank you. You may begin.

Good morning and thank you all for joining us today to discuss TuffBuild's fourth quarter and full year 2021 financial and operating results. Again, my name is Martin Gostian and I am the Chief Financial Officer of TuffBuild. Joining me on today's call is Michael Panosian, President and Chief Executive Officer of TuffBuild. Michael will begin today's discussion by providing operational and financial highlights from the fourth quarter and full year. I will then review our financial performance for the same period. Michael will conclude the discussion with our growth plans for 2022 and beyond. Before turning the call over to Michael, I would like to remind you that any forward-looking statements made by management are covered under the U.S. private Securities Delegation Reform Act of 1995 and are subject to the changes, risks, and uncertainties described in the press release and in our US security filings. In addition, during the course of the call, we may refer to non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States and that may be different from non-GAAP financial measures used by other companies. Investors are encouraged to review Tough Build's current report on Form 8K, furnished with the SEC for Tough Build's reasons for including those non-GAAP financial measures in its earnings releases and presentations. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP Financial measures are contained in our earnings press release issued earlier today, unless otherwise noted therein. I will now turn the call to Michael.

Thank you, Martin, and thank you all for joining us on today's call. 2021 was a very strong year for TuffBuild, culminating in record revenues of $70 million, an approximately 78% year-over-year increase compared to 2020. The fourth quarter revenue came in at a record 24.7 million, representing a 105% increase compared to the prior year. Please keep in mind that based on seasonality, the fourth quarter is typically the highest volume period of the year. Revenue growth in the fourth quarter, as well as for the full year in 2021, was driven by a combination of onboarding new retailers, the introduction of new SKUs, and continued demand for our existing products. Tuffield continues to be a leader known for innovation and for developing some of the most unique products for the construction and home improvement industry. We believe that much of our success is due to our ability to attract the best talent Our unique platform has proven to be a tremendous draw for professionals eager to join an organization known for its creativity and ability to quickly and efficiently bring ideas from concept to shelves in a matter of months. Our 2021 results are a testament to the importance of establishing a platform of strong teams, demonstrated by our numerous product launches, including our first technology-enabled tool, the ToughBuild LaserLine. One of ToughBuild's major differentiating features, which we are confident will result in continued demand for our products, is the integration of technology which empowers our customers to expedite projects, automate processes and track information all in one place to help combat logistic related costs in 2022 we are negotiating improved shipping rates as well as working with our large retail partners to implement direct import ordering where possible Direct import ordering would result in our retail partners taking Tuffbuilt products directly from ports and shipping to their own warehouses. This would significantly decrease our shipping costs by shifting several supply chain steps from Tuffbuilt to our partners. This is a win-win scenario in which our larger partners can leverage their existing logistics infrastructure to ship at cheaper rates. while allowing us to focus on designing and manufacturing innovative products, thereby enabling more lines of products to be shipped. Based on our current inventory and accounts receivable levels as well as the revenue we expect to generate from new product lines in 2022, we expect our cash burn to significantly decrease in the second half of 2022. I will now turn the call back to Martin to cover our financial results in greater detail. Martin?