Tattooed Chef, Inc.

Greetings and welcome to the Tattooed Chef first quarter 2023 financial results conference 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, press star zero on your telephone keypad. Please note that this conference is being recorded. I will now turn the conference over to our host, Devin Sullivan of the Equity Group. Thank you. You may begin.

Thank you, Diego. Good afternoon, everyone, and welcome to Tattooed Chef's first quarter 2023 financial results conference call. On the call today are Sam Galletti, President and Chief Executive Officer, Sarah Galletti, Chief Creative Officer, and the Tattooed Chef, and Stephanie Dykman, Chief Financial Officer. By now, everyone should have access to the earnings release, which went out yesterday afternoon, and it's available at the company's website, www.tattooedchef.com. Before we begin, I'd like to remind everyone that the prepared remarks being given today contain forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such statements involve a number of known and unknown uncertainties. many of which are outside the company's control and can cause future results, performance, or achievements to differ significantly from the results, performance, or achievements expressed or implied by such forward-looking statements. Important factors and risks that could cause or contribute to such differences are detailed in the company's filings with the Securities and Exchange Commission. Except as required by law, the company undertakes no obligation to update any forward-looking or other statements herein, whether as a result of new information, future events, or otherwise. In addition, within our earnings release and in today's prepared remarks, adjusted EBITDA is referenced. It is important to note that this is a non-GAAP financial measure, which the company believes is a useful metric that better reflects the performance of our business and on an ongoing basis. A reconciliation... of this non-GAAP financial measure to its most directly comparable GAAP financial measure is included in the company's press release, which is also available on its website. With all that said, it is now my pleasure to turn the call over to Tattooed Chefs President and CEO, Sam Galletti. Sam, please go ahead.

Thank you, Devin. And thanks, everyone, for joining us today. It's great to be speaking with you all. with all of you with our filings up to date and with a little bit of tailwind and progressing towards our goal of switching from growth to profitability. I feel I need to go off script here. I want all of you to know we are determined to make this the plant-based company of the future. I want to thank everyone for their continued support of Tattooed Chef. I am encouraged by our results for the first quarter and by the factors that we believe separate Tattooed Chef from our competitors. Our products are plant-based, we address a variety of tastes, and our options are expanding. We have invested in our brand, and our manufacturing capabilities provide us with control and opportunity. As promised, we are reducing the cost necessary to operate our business without compromising our quality or commitment to our clients. We reduced total operating expenses in Q1 2023 compared to the first quarter of 2022 and narrowed our net losses and adjusted EBITDA losses. We also reduced our cash burn quarter over quarter. We now have greater confidence that we can meet our 40 million expense reduction target by year end 2023. Our progress is more pronounced when comparing Q1 2023 to the fourth quarter ended December 31, 2022, with a reduction in total operating expenses and a continued narrowing of our losses. Sarah and I have met with our customers and we appreciate their support. We are continuing to introduce new products and break into new higher margin categories. We expanded our distribution with Albertsons, Walmart, and CVS and are reviewing all of our products for profitability and sell-through. We are also taking actions to drive efficiencies in our operations and fine-tune our trade spend. We compete in the health and wellness category and per SPNS data for 12 weeks ending 4-23-2023 of the top 20 brands Tattooed Chef is one of seven brands that continues to show unit sales growth. The health and wellness category is down 10.6% in units, while Tattooed Chef is delivering 12% more units than this time last year and experiencing 4% growth in total moolah. In addition, we have reduced the amount of time that our product spends on promotion in the store by 4.3%, which shows growth in both our base business and continuing brand loyalty. The dynamics of our markets have changed, and so too has our approach. Make no mistake, the market has changed, and I know how to pivot our direction to profitability. Thank you for your attention, and I'll now turn things over to Sarah.