ToughBuilt Industries, Inc.

Good afternoon, everyone, and welcome to the Tough Build Industries third quarter 2023 earnings conference call. All participants will be in a listen-only mode. If you need assistance, you may know a conference specialist by pressing the star key followed by zero. Please also note today's event is being recorded. And at this time, I would like to turn the floor over to Martin Goldstein, Chief Financial Officer. Sir, please go ahead.

Good afternoon, and thank you all for joining us today to discuss Tuftsville's third quarter 2023 financial and operating results. Again, my name is Martin Galstian, and I am the Chief Financial Officer of Tuftsville. Joining me on today's call is Michael Panossian, Tuftsville's President and Chief Executive Officer. Michael will begin today's discussion by providing operational and financial highlights from the third quarter. I will then review our financial performance Michael will conclude the discussion with our growth plans for the upcoming fiscal year and beyond. Before turning the call over to Michael, I would like to remind you that forward-looking statements made by management during today's call and that any forward-looking statements are covered under the US Private Securities Litigation Reform Act of 1995. Actual results could differ materially from what is described in those statements and are subject to the changes, risks, and uncertainties as described in our press release and in our SEC periodic and other filings. Additionally, information on risk factors that could cause results to differ is available in the company's most recent form, 10-K, filed with the SEC. In addition, during the course of the call, we may be inadvertently used or referred to financial measures that are now 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. If any GAAP financial measures are mentioned in today's call, the company will promptly file a Form 8K with the SEC, reconciling such non-GAAP numbers to GAAP. I will now turn the call to Michael.

Thank you, Martin, and thank you all for joining us today. For the third quarter of 2023, the company reported revenue of $20.6 million, a 9% increase compared to the prior quarter. We are very aware of the challenging macroeconomic background that has been affecting our industry. As a result, we continue to work diligently to decrease overhead. For the third quarter, SG&A expenses were $12.5 million, a 33% decrease compared to the prior quarter. and a decrease of 30% compared to the same quarter last year. Our gross profit for Q3 decreased by 20% to $4.9 million compared to the third quarter of 2022. Although the gross margin decreased this Q3, however, on first nine months comparison basis, it only declined 0.32%. The decrease in gross profit margin in 2023 third quarter was primarily driven by a decrease in demand in the overall sector. We are focused on improving gross profit margins in the quarters ahead. During the last quarter, we continued to streamline the organization and focus on driving efficiencies on our planned path towards profitability by focusing on innovation and sustaining and scaling customer partnerships. We believe our 22 product lines provide a strong foundation for growth. Even as we introduce additional new products, we believe that a significant portion of our major new design work has been completed and we will begin to reap the rewards of what we have built so far in years to come. We recently launched the newest product line, our Stack Tech mobile stacking toolbox system. The Stack Tech line is not only the world's first auto-locking stacking tool storage solution, but with the launch, we are able to break into new market sectors. We anticipate our entrance into the stacking tool storage and toolbox market will drive us closer to our profitability target, and we expect to see a strong contribution to future net sales. I will now turn the call back to Martin to cover our financial results in greater detail. Martin?