Upexi, Inc.

Good afternoon. I will be your conference operator today. At this time, I would like to welcome everyone to the UPEXC 2023 Fiscal First Quarter Financial Results Conference Call. Please be advised that today's call is being recorded. I will now turn the call over to Walter Pinto, Managing Director of KCSA Strategic Communications. Please go ahead.

Thank you, operator. Good evening and welcome everyone to the UPEXC 2023 fiscal first quarter financial results conference call. I'm joined today by Alan Marshall, Chief Executive Officer, and Andrew Nordstrom, Chief Financial Officer. Before we begin, I'd like to remind everyone that statements made during today's conference call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995, and actual results may differ materially due to a variety of risks, uncertainties, and other factors. For a detailed discussion of some of the ongoing risks and uncertainties in the company's business, I refer you to the press release issued this evening and filed with the SEC on Form 8K, as well as the company's reports filed periodically with the SEC. A company that claims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless otherwise required by law. In addition, during the course of this 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 UPEXI's current report on Form 8K furnished with the SEC for UPEXI's reasons for including these non-GAAP financial measures in its earnings release. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in our earnings release issued this evening, unless otherwise noted here within. I'll now like to turn the call over to UPEXI CEO, Alan Marshall.

Thank you and welcome to our 2023 first quarter operating results conference call. UPEXI is a vertically integrated brand owner in multiple high growth industry verticals, including health, wellness, pet, beauty, and most recently toys. Our model is to acquire, build, and scale through direct-to-consumer and Amazon sales channels. Brands we acquire are creative with room for margin expansion as we scale and drive operational efficiencies. Our success to date is deeply rooted in our technology and data. We implement our in-house SAIS platform ad technology into all of our brand marketing to help achieve a lower cost per acquisition. We have also amassed a significant amount of consumer data, allowing us to increase cross-selling between our growth portfolio of brands. I joined UPEXI as CEO in May of 2019. That year, the company generated approximately 7.4 million in revenues. I am proud that we have executed our model and strategy effectively to project over 100 million in revenues for calendar 2023. It's a testament to our execution, business model, and expertise as a management team. For our most recent fiscal quarter ending September 30th, revenue total 11.6 million, an increase of 199% as compared to 3.9 million for the same period the prior year. Predominantly driven by meaningful growth for our brands across most of our product categories and sales platforms. I'm pleased we were able to deliver these results even while we, like many others, are still faced with macroeconomic challenges. Although we have seen average total current value pull back with consumer discretionary income coming down and inflation continuing to rise, our direct-to-consumer sales continue to be strong. We have successfully closed on several important acquisitions over the last 12 to 18 months. In April, we completed our acquisition of Signet Online LLC, a well-established secondary market seller on Amazon with over 1200 SKUs of branded OTC products and supplements in health, wellness and beauty verticals. During the first quarter in August, we completed the asset purchase of Vitamedica Corporation, a leading online seller and supplements for surgery, recovery, skin, beauty, health and wellness. Vitamedica has been a leading revenue driver for our company with triple digit growth year over year, mostly led by performance on Amazon. In October, we completed our acquisition of Interactive Offers, a SAAS programmatic advertising company that has operated successfully in the fintech space for numerous years, with recent expansion into e-commerce to boost platform profits and growth. And lastly, during the quarter, we entered the $200 billion-plus Fed vertical market with the closing of Lucky Tail, a balanced business with direct-to-consumer on LuckyTail.com and Amazon distribution with double-digit year-over-year growth. Lucky Tail currently sells products domestically in the United States and internationally in Canada and Australian markets. The all-cash acquisition is a great example of our ability to acquire a great brand that will be accretive to both top-line growth and EBITDA. The pet vertical fits with our focus on what we consider essential consumer goods people spend money on in all economies. Until recently, a large portion of our business was focused on our CBD segment. for which we have been exploring strategic options. In late October 2022, we announced the sale of these select CBD assets for approximately $23.5 million to streamline our business for more focus on high margin growth areas and dependable sales and profit visibility. The proceeds from the sale allowed us to close the acquisitions of Ecor and its subsidiaries, Titan Products and New England Technologies. In early November, adding over 40 million and trailing 12-month sales and increasing our projected 2023 sales to 100 million. Titan is a children toy brand and maker of popular magnetic tiles and building blocks. New England Technologies is a national distributor for branded consumer products. Titan is a high-quality, eco-conscious toy company that has grown 100% over the past two years. They are continuously expanding their network of retail partners with new initiatives, offerings, and their products are currently available online through Walmart.com, Sam's Club.com, and in stores through leading retailers such as Walmart, Sam's Club, and BJ's Wholesale. New England Technology is one of the most competitively priced distributors for name brand consumer electronics in the industry. with several innovative distribution models specializing in e-commerce, business-to-business, and business-to-consumer marketplaces. We expected both transactions to close during our fiscal first quarter ending September 30th. Timing affected our financial performance during the quarter. For example, these delays affected sales decisions and new product launches, as well as making investments in advertising campaigns, all of which need to be planned 30 to 60 days out. Now that we have closed, we are expecting another triple-digit growth year. Thank you to all our teams at UPEXI, as well as our investors and customers and partners. I will now pass the call over to UPEXI CFO, Andy Norford, to discuss our financial results in more detail.