Upexi, Inc.

Greetings and welcome to the UPEXI Inc. 2023 Fiscal Second Quarter Earnings Results Conference Call. At this time, all participants are in a listen-only mode. A brief 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. As a reminder, this conference is being recorded. It is now my pleasure to introduce to your host, Walter Pinto, Managing Director at KCSA Strategic Communications. Thank you. You may begin.

Thank you, Operator. Good evening and welcome, everyone, to the UPEXI 2023 Fiscal Second Quarter Financial Results Conference Call. I'm joined today by Alan Marshall, Chief Executive Officer, and Andrew Nordstrand, Chief Financial Officer. Before we begin, I'm going 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 AK, as well as the company's reports filed periodically with the SEC. The company disclaims 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. The reconciliation of non-GAAP financial measures The most directly comparable GAAP financial measures are contained in our earnings release issued this evening, unless otherwise noted. I would now like to turn the call over to UPEX's CEO, Alan Marshall.

Thank you, and welcome to our 2023 Fiscal Second Quarter Operating Results Conference Call. Since joining UPEX as CEO in May of 2019, the company has grown from approximately $7.4 million in annual revenue to $44 million in 2022. with an estimated $100 million in revenue expected in 2023. We experienced a substantial growth despite two years of COVID pandemic and a challenging 2022, where for many macroeconomic reasons, consumer companies and the market struggled to find growth. For our most recent fiscal second quarter ending December 31, 2022, we exceeded internal expectations by generating record revenues of $27.1 million. an increase of 400 to 44% as compared to $4.1 million for the same adjusted period the prior year, and an increase of 134% as compared to $11.6 million sequentially. Revenue growth was predominantly driven by strong year-end sales in many of our brands, including Ecor, Titan Tiles, Vitamedica, and Signet Online, as well as strong sales from our pet product business, Lucky Tail. During this fiscal second quarter, not only did we generate record revenues, but were able to return to positive EBITDA after the sale of infusions. The last nine months have been very productive for the company. During that period, we successfully closed on several important acquisitions. We divested our select CBD operations during that time, which represented approximately 20 of the $44 million in revenue we generated in 2022. This decision has allowed us to focus our acquisition strategy on high-growth, recession-resistant cash-flowing businesses. On April 1, 2022, we completed our acquisition of Sigmund Online LLC, a well-established secondary market seller on Amazon with over 1,200 SKUs, branded OTC products, and supplements in health, wellness, and beauty verticals. August 22nd, 2022, we entered the pet vertical with the closing of Lucky Tail, which has experienced double-digit year-over-year sales growth through both its strong Amazon distribution and direct-to-consumer sales on LT.com. On November 2nd, 2022, we announced the closing of eCore acquisition along with its subsidiaries, Titan Products and New England Technologies. The transaction added over $40 million in trailing 12-month sales and increased our projected calendar 2023 revenue to $100 million. Titan Tiles is a toy brand and maker of popular magnetic tiles and building blocks, and New England Technology is a national distributor for branded consumer products. Titan has been one of the top-selling toys at Sands Club since 2018, a bestseller on Walmart.com and a top seller on Walmart.com during Cyber Week in 2022. Additionally, the product lines were featured in the 2022 Walmart Toy Book. Subsequent to the quarter end, we announced two additional significant milestones for our Titan brand, with the approval to launch its first branded DTC storefront on Amazon.com and placement of Titan tiles products on Walmart shelves in over 2,000 locations nationwide. Working with our retailers, we have developed a full assortment of new Titan tile products, including magnetic cubes, a Fort Builder kit, a Dino Tiles kit, and a Princess Tiles kit. During 2023, we plan to launch up to four of these new products into current retailers and on Amazon.com. The educational toy category remains a key focus for us, both for potential future acquisitions and as we continue to build our organic growth. We now operate in several business segments, including health, wellness, pet, beauty, educational toys, with sales channels including direct-to-consumer, Amazon Direct, and large and big-box retailers. The Amazon liquidation business operates under Signet Online with current sales in health, wellness, beauty, and nutraceuticals. We are currently expanding this business into electronics as well as other new categories. Our NettyCentral.com business specializes in name-band distribution of in-line merchandise, excess inventories, premium and premium center programs. He's a major supplier to the largest deal of the day sites and brick and mortar retailers in the United States. A diverse business mix of non-discretionary health, wellness, pet products, and liquidation and wholesale, direct-to-consumer and Amazon, gives us a well-rounded revenue stream that provides opportunity in most economic environments. We intend to build on this substantial growth as we look toward reaching 100 million sales in 2023. Thank you to all our teams at UPEXI, as well as our investors, customers, and partners. I will now pass the call over to UPEXI CFO, Andrew Nordstrom, to discuss our financial results in more detail.