ToughBuilt Industries, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Tough Built third quarter 2022 earnings call. During the presentation, all participants will be in a listen-only mode. If at any time during the conference you need to reach an operator, please press star zero. As a reminder, today's conference is being recorded. I would now like to turn the call over to Martin Galston, Chief Financial Officer. Please go ahead.

Good morning and thank you all for joining us today to discuss Tuftsville's third quarter 2022 financial and operating results. Again, my name is Martin Galfian and I am the Chief Financial Officer of Tuftsville. Joining me on today's call is Michael Panosian, President and Chief Executive Officer of Tuftsville. Michael will begin today's discussion by providing operational and financial highlights from the third quarter. I will then review our financial performance for the same period. Michael will conclude the discussion with our plans for the remainder of 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 Security Litigation Reform Act of 1995 and are subject to the changes, risks, and uncertainties described in the press release and in our U.S. 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 the Tuffield's current report on Form 8-K, furnished with the SEC for Tuffield's reasons for including those non-GAAP financial measures in its earnings release and presentation. 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. The third quarter of 2022 was strong for Tuftsville, culminating in revenue $30.2 million. an approximate 76% year-over-year increase compared to Q3 2021. As a result of strong revenue numbers and our expansion efforts, we expect to see both store and online revenues continue to grow year-over-year. In July 2022, we announced that we entered into an agreement with Ace Hardware USA and International to sell 35 Tough Build products in which ACE will distribute utilizing 15 regional service centers to reach 5,500 individual ACE stores. In August 2022, we announced that we have started to sell 93 Tuffbuilt products on Amazon Italy and Amazon Germany. We also announced our entry into supply agreement with many top retailers in Spain hardware market. Finally, in August, we announced the launch of our all-new Reload Utility Knife, a groundbreaking new cutting tool. September was a particularly busy month, with major expansion in both our networks and our tool lines. During the month, we announced our entry into the global measuring and marking $1.4 billion market segment with a family of tape measures and chalk reels. We also announced that we entered into an agreement with two major wholesale tool distributors in Switzerland, marking an expansion of European distribution that includes more than 250 retailers. We also announced major expansion for our network of storefronts in Great Britain, confirming new and expanding agreements with more than 900 collective retail locations in Great Britain. Finally, in September 2022, we announced the launch of 21 new SKUs into the global handsaw segment, beginning with a line of seven cutting tools. The new line will be available Q4 2022 for purchase through a leading US home improvement retailer and throughout our international retail network. Subsequent to the end of third quarter, We continued our strong momentum by continuing to expand both our distribution network and our product lines. In October, we launched a comprehensive line of innovative striking tools and a 500-foot rotary laser level kit. We secured more new distributor agreements with four major retailers in Germany, reaching an agreement with Sodimac, the largest home improvement and construction supplier in South America, and expanding distribution of 84 products used in all 96 Sears stores in Mexico. As you are all aware, supply chain disruptions have caused great difficulty for many industries over the last year. Due to our strong inventory levels in 2021 and the nine months ended September 30, 2022, the ongoing supply chain disruptions have not had a material adverse effect on our operations. And we do not currently anticipate that any continued supply chain disruptions will have a material adverse effect on our operations for the remainder of the fiscal year 2022. As you can see, the third quarter has proved to be a milestone period yielding success, validated by our sales and revenue, giving us confidence to continue our growth and path to profitability going into the remainder of the year. I will turn the call back to Martin to cover our financial results in greater detail. Martin? Thank you, Michael.