Thank you for standing by. Welcome to the Mimi's Rock Corp Q2 2021 Results Conference Call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. I would now like to turn the conference over to David Kohler, CEO of Mimi's Rock Corp. Please go ahead, sir. Thank you very much. Good morning or afternoon, everyone, depending on your time zone. Thanks for joining us on our Q2 2021 results call. We'll return to the report we filed Wednesday morning in just a moment. I would like to take a few minutes to share a bit about Mimi's Rock and offer some commentary about what's happening in the broader e-commerce ecosystem. Most of you will know, Mimi's Rock Corp owns and operates a number of online brands sold in various jurisdictions around the world, all via e-commerce. We have brands which are in the wellness space and include vitamins and supplements for human consumption, as well as skincare products and a pet supplement line for companion animals. We sell these items in Canada, the United States, multiple European countries, as well as Australia, and through our wholesale partnerships into South Korea and China as well. Our strategy since we began the business was to scale through a combination of organic growth as well as strategic acquisitions. Now that we're seeing vaccination rates rising around the world, we're growing confident that the challenges and pauses caused by the global pandemic are moving into their final chapter. We've been working hard to ensure we've had no supply disruptions, and I'm sure that we and our channel partners will breathe a little easier as we get back to normal, or at least the new normal. To be clear, we remain confident that while consumers will naturally start to attend to traditional retail locations as the pandemic subsides, we believe that the e-commerce habits developed in our society will have a lasting effect on consumer behavior. There's precedence for this belief. We only need to look at the Chinese marketplace and how e-commerce leapt forward following the SARS pandemic of the early 2000s. China remains well ahead of the Western world to this day in terms of the relative percentage of business conducted via e-commerce. We believe this boost to e-commerce, marketplaces received here during the COVID pandemic will forever change consumer behavior and bodes very well for our positioning. Mindful of these shifts and with the hope for a more normalized environment going forward, we're turning our attention to our three-year strategic plan, which we have developed. This will guide us to CAD 100 million in revenue and CAD 20 million in EBITDA in 2024. You should expect a steady stream of updates and announcements as we enter the back half of the year, and we will utilize strategic M&A in concert with the growth we will see in our new markets to kickstart a new phase of growth. As we look at Q3, we've begun executing our board-approved strategic plan aimed at delivering the aforementioned CAD 100 million in revenue and CAD 20 million in EBITDA in 2024. This will be achieved through a combination of organic growth, which includes new product launches, as well as new channels and portals and strategic M&A, and we look forward to some exciting announcements in the weeks ahead on all these fronts. As Andrew will review shortly, we've achieved several meaningful improvements in Q2, which are evident in our financial performance. Importantly, we're seeing increases in revenue and volumes when measured on a consistent currency basis. Foreign exchange was considerably lower in Q2 of 2021 than Q2 of 2020. Last year, the quarter saw an average exchange rate of CAD 1.38, whereas this year's rate was CAD 1.22. As the majority of our sales come out of the U.S., this shift meant a headwind of about 13% on the currency conversion alone. As a result, the revenue delta between Q2 of last year, which was a record for the company, and this year, was essentially a result of that currency shift. We're very pleased to have posted an EBITDA of CAD 1.1 million under these conditions. We note that the prospects for the dollar have moved in our favor in the near and mid-term, which should help us to report higher revenues in Canadian dollars as we move forward. Also importantly, we saw a reduction in our cost of goods as a percentage of revenue. This was due in large part to price increases, but was also aided by a reduction in the aggressive discounting we did in Q1. You may recall from last quarter's discussions, we had then decided to aggressively pursue market share by increasing our advertising spend and discounting in anticipation of the implementation of Amazon's announced requirement for certificates of analysis as a condition of selling supplements on their platform. We anticipated that this new level of self-imposed regulatory oversight would shake some of the so-called bad actors out of the market. While we see this as a positive development, we are ourselves, in fact, completely prepared for and in possession of all the necessary documents to prove the validity of our label claims. Amazon has announced not one but two delays of the implementation of the new standards. The deadline for the new program shifted again just yesterday and is now delayed until at least September 2021. While we remain excited by this new initiative from Amazon, the delay leaves us uncertain as to when we will see the impacts. Nevertheless, we were pleased to see that the aggressive campaign in Q1 converted into strong volumes in Q2 with higher prices overall. Shifting gears, we note that it is important for our organic growth plans that we have the ability to launch in new markets. Canada is an excellent example of a new geography where we are succeeding. Our Dr. Tobias line was launched in Canada in late 2019. Sales grew rapidly in the first year and have continued on a meteoric trajectory. In the first six months of 2021, our Dr. Tobias brand grew by over 296% year-over-year in terms of both units and dollars. While these amounts are still relatively modest compared to our U.S. business, we see that the approach we've taken to marketing in these new marketplaces works well. This bodes well for some of our new markets we are entering and targeting to enter in the short term. We expect we can follow a similar growth curve. Operationally, during Q2 2021, we entered an agreement which will see us launch our own digital storefront on Tmall. Tmall is the direct-to-consumer portal of the Alibaba platform in China. Recalling, we originally started selling in China exclusively through a wholesale agreement. We felt the time was now right for this additional entry, which will give us the ability to capture explosive growth. The site will be up before year-end and should start to contribute in a meaningful way this year. We've also seen continued growth of our skincare brands in the U.S. market. Last quarter, we reported sales were up 81% on the skincare lines over the same period in the prior year. Q2 saw an even larger year-over-year increase, where we achieved a 170% lift. We anticipate a similar growth curve to the Dr. Tobias launch in Canada, and so far we've had a great start. Additionally, we've executed on some of our previously discussed lifecycle management plans and have added multiple pack sizes to some of our more popular products. We've seen immediate uptake on these new SKUs without any apparent cannibalization of our existing product sales. We expected that new customers might be more open to a first purchase of a smaller pack size, and that appears to be correct. For instance, we now offer a one-month supply of our fish oil product. We theorized that those considering the product might be more open to a smaller initial quantity than our standard 90-day supply. Early indications are that we were correct, and we're seeing solid uptake. In summary, we had a very good Q2 from a constant currency perspective. Volumes are strong, and as we look ahead, we see the US dollar has begun to regain strength against the loonie, which bodes well for our results as we continue to grow our in-market volumes. Now I'd like to turn it to Andrew to provide us with a review of the financial results. Thank you, David. Good morning, everyone, or afternoon. I'll start by providing some additional commentary on our financial results for Q2 2021. As we reported yesterday, Q2 2021 EBITDA came in just over CAD 1.1 million, compared to just under CAD 1.6 million for Q2 2020. Revenues were CAD 9.7 million for Q2 2021, which were similar to Q1 in Canadian dollars, but down compared to the CAD 10.9 million in the same quarter last year. Foreign exchange, as we have alluded to several times, was a significant factor in the lower reported revenues compared to a year ago, making an almost CAD 1 million difference compared to the same period last year. Had the currency rates been consistent, the company would have reported revenue similar to a year-ago period. I should also point out that Q2 2020 was our highest revenue quarter since inception, so the comparison against that quarter is a high bar. As Dave referenced earlier, we were encouraged by our ability to remain profitable despite the FX headwinds. As the majority of our goods and advertising expenses are also in U.S. dollars, gross and net margins were impacted favorably, resulting in better overall margins. Second quarter 2021 revenues were the strongest since the same period a year ago for the DTI business. The company's skincare business continued to perform well in the second quarter of 2021, although not quite at the torrid pace of Q1. Though both revenues are now at the level they were a year ago, margins have improved significantly as lower discounting was applied, resulting in overall higher average selling prices. Again, we feel this bodes well going forward. Advertising spend in the second quarter of 2021 was maintained at lower levels in the first quarter of the year, but still above our historical rates. As such, volumes remained strong despite considerably lower discount offerings. Advertising spend is the key driver of revenue, but it's not solely about the absolute CAD amount. The efficiency and effectiveness are important, and programs must be continually managed. While it's important to manage spend against revenue on a periodic basis, certain core programs are ongoing with a focus on brand awareness, new customer acquisition, and customer loyalty. These investments may result in higher than normal spend in a particular period, but position the company to drive organic growth and are a key part of the overall ad strategy. In general, we can manage our advertising spend somewhat, but not fully in any given period, but we still have a very good structure for advertising, and we expect the results going forward to come back to the normal rates of around 47% advertising against revenue. G&A expenses in the period were lower by about 10% quarter-over-quarter, and we expect these efficiencies to continue and G&A expenses to remain level but decrease relative to revenues going forward. Turning to the balance sheet, cash flows from operations are improving, FX notwithstanding, and we continue to make all scheduled principal and interest payments on our senior debt. Our lenders have offered ongoing flexibility and with the low borrowing costs, which are under about 3.5% right now. We have little concerns with our debt levels, despite the fact they're technically out of covenant. More importantly, our aggressive repayment schedule has reduced the senior bank debt to approximately CAD 11.6 million, which is a very manageable figure. Working capital has remained relatively level, but at an inflated figure overall, mainly due to the ongoing concerns with COVID and the cautious approach to inventory management. We've so far been able to navigate through supply constraint issues, and this approach has served us well. I shall now turn the call back to Dave. Thank you. Thanks, Andrew. Just before we open for questions, I wanted to expand on my earlier comment regarding our strategic plan for growing the business to CAD 100 million in 2024 with CAD 20 million in EBITDA. Firstly, we will continue to diversify the platforms on which we sell. As I've noted, we've added products on multiple new partners in the last year and will continue to do so in the periods ahead. Secondly, we'll continue to expand our product offerings. We'll continue to tune our portfolio and ensure we optimize and leverage the use of our hero products, as well as act in a nimble and expeditious way as consumer demand continues to evolve. Finally, we'll pursue growth by acquisition. We invite you to stay tuned in the months ahead and expect to hear announcement on this front. With that, I'd like to open the line for questions. Over to you, operator. Thank you. We will now begin the question- and- answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. The first question comes from Antonia Borovina from Bloom Burton. Please go ahead. Hi, good afternoon. Thanks for taking my question. My first question is just around your total revenues. You don't break them out, but I'm wondering if you can provide us with any metrics, to get a sense of the growth trajectory of your base business. Dr. Tobias on amazon.com, and then also the skincare business. Sure. Hi, Antonia. It's Andrew. I'll try to answer those questions first, and I'll ask Dave to provide any additional comments if I miss something. I think everybody's aware of the two primary business units, the supplements and skincare. Skincare is two brands. The supplements right now is primarily one with a little multi-form brand as well that we do in conjunction with Amazon. These are similar businesses in some ways, but they do have individual trends. I also want to point out the fact that the Dr. Tobias business, the supplements business, is considerably larger overall than the skincare business, and as such, we don't expect to see the same percentage growth rates. That being said, we have had the skincare business now for about 18 months. Q1, the very first quarter we had of Q1 2020 was not the greatest quarter, but the Q2 2020 that we're comparing to was the best ever quarter for the skincare business. That being said, year to date, six months versus six months last year, we're still up over that six-month period. I think it's in the neighborhood of high single-digit percentage increase in revenue, six months over six months on the skincare side. On the DTI, Dr. Tobias supplements business, again, Q2 was an improvement over Q1. We saw about a 5% or 6% increase in revenue from Q1 in constant dollars. As we mentioned many times, the rate was so much lower in Q2 that that actually translated to a lower Canadian dollar number. The skincare business obviously didn't do quite as well in Q2, but is still performing very well. With going back to Dr. Tobias, Q1 typically is our best quarter, and we see a little bit of a leveling off in Q2. We didn't see that this year. We actually saw an increase in Q2. More importantly, looking at the trajectory, the past is the past. I feel like, and I think Dave would agree here, that where we stand now, a month after Q2, is a much better position than we stood a year ago today. Despite the fact we had a better Q2 2020 than we had a Q2 2021, the momentum has continued after this Q2, and we go into Q3 now with much stronger volumes, much higher overall prices, sort of, I'm going to say, better positioning with our ad structure in terms of, we put a lot of investment in, and I think we've found some things that we feel are working well. A couple of our top products are starting to really show some gains, and that's positive. Momentum, which is very key on Amazon, especially in the supplements business, is much higher than it was same time a year ago. Even though our results may not have reflected it, we do feel that we're looking for a much better second half and are poised for, again, a better Q3 and Q4 than we had in 2020, again, FX not withstanding. Okay. Maybe adding a little bit of color. It's David Kohler speaking, as Andrew noted. We do have slightly different seasonalities with these different product lines. Typically, supplements Q1 is the strongest quarter of the year. The so-called New Year, New You mentality, where a lot of people go on health kicks, join gyms, start taking supplement regimens. We were really encouraged by the fact that Q2 on a constant currency basis was better than Q1 as well. What we're seeing is a ramping up of our volumes, which is exciting, particularly as it's kind of out of step with traditional seasonal patterns. Skincare, on the other hand, typically has a stronger Q4. There's a little bit of variation period to period and product line to product line. One of the reasons we've frankly avoided breaking them out entirely in detail is for competitive reasons. We want to make sure that we're not painting a target on our back that our competitors can easily aim for. As far as our overall positioning, as Andrew said, at the end of the Q2, we feel we're in a better spot than we were a year ago, and we were in a good spot a year ago. We're excited to see what the rest of the year brings, notwithstanding the new lines, new portals, and new geographies as well as hopeful M&A activities. We feel the business is really well positioned. We're going into the back half of the year expecting great results. Okay. Thank you. During second quarter, at the end, you had Amazon Prime Day. Just wondering, did it meaningfully contribute to any of your second quarter results, or was it not a big driver at all this year? Yeah, great question, Antonia. As some of you would know that have monitored the Amazon holidays, I'm using air quotes. The traditional Prime Day has been moved around significantly in the last two years. What was originally intended and very well promoted as a campaign to increase the number of Prime members, which for those of you who would be unaware, is what they call their paying monthly membership on Amazon. The event itself has lost some steam as it's been bounced around on the calendar from its original July placement. While Prime Day historically was great for volume, the discounting required to participate meant that while volumes were huge, the contribution of margin was limited, and you did it more in order to capture the volume and create a halo effect, so to speak, which would carry you into the periods that followed. I would say that from our perspective, Prime Day this year was a good one in that we saw decent margins during and around that period, but it was nowhere near the pump that we've seen in the past. I think that's largely attributed to the lack of promotion and the uncertainty from the consumer's perspective as to when it would even occur. It's normally a Q3 event. Two years in a row now, largely COVID driven, we believe they've moved it. We would hope that in future periods they get back to their more normal slot and start promoting the program more, and we can see it return to being a big selling day. At this juncture, we think that more of the fall holidays, the Cyber Monday, Black Friday kind of events, will probably be better, simply because they're not mobile. Okay, thanks. Then just regarding- Sorry, can I just add a couple of points onto that? Just the one thing with Prime Day that we sort of realize now after having a business as long as that, while it is good for your top line, the deals that they require you to offer on those days in order to get the Prime spots are significant discounts. You really don't make a lot of money. You do tons of volume, you get a bunch of new customers, which is great, but it doesn't translate to profitability. It was partly us sort of having parameters on what we were willing to do, and therefore, you maybe give up some of the top line, but you certainly make a lot more money on the products that you sell, and that's why we were able to keep our margins and everything where they were. It was a little bit of a, I'm going to say, a tactic that we used, but also we just feel that it has a certain value, but it may not necessarily fit what we're trying to do right now at this particular quarter anyways. We spent a lot of money on investment in Q1, and now we're sort of trying to manage that forward with what we call with good customers that are paying sort of higher prices on average. Okay, thanks. Yeah, my next question is regarding your gross margin expansion that you saw in second quarter. You noted that this was due to lower discounting and also some price increases. Do you expect this level to be sustained in the coming quarters, or do you expect that the margin's going to fluctuate quarter-over-quarter? I would say that my guess is, because I don't know for sure, we haven't pulled back as much as this on discounting before. I mean, it was kind of a bit of a real dichotomy, because Q1 we did more than ever, and then Q2 we did less than ever. It's a little bit, I think, of an adjustment period there, where when you stop discounting as much, you sort of have trained your customers to kind of wait for those things sometimes. I think we feel like we will get higher volumes, and we will probably do a little bit more discounting and find that somewhere in the middle, which is kind of the ideal spot. We needed to see how the whole dynamics played out when we really pulled back, and I think we have a really good idea now at the right level of discounting. Hard to say exactly how that's going to translate into financials. I'd say the margins will still be better than they are historically, but maybe not quite as good as Q2. Okay, thanks. Just my final question is regarding the M&A, which you discussed. I was just wondering, are there any areas of focus that you're looking at, product categories? How you plan to fund future acquisitions given your current balance sheet? Yeah, I would say, we intend to stay from a products perspective within what we refer to as the wellness lane. We'll be looking at products or companies that are either sold online or could be readily. What I mean by that is product embodiments that lend themselves to e-commerce. For example, bicycles are difficult. Although you could argue bicycles are a wellness product. We're going to stay focused in the wellness lane. We are also looking for potentially tertiary companies that could support our overall strategy and thesis. If I can just address a question on the capital part of it. It's challenging for sure. I mean, we certainly don't feel like we want to go to the equity markets at this level. I think we can all agree that this is a much lower price than we'd like to see it at and feel that it should be considerably better before we go to the market and raise any money. It would be for acquisitions. I think I mentioned earlier that we don't need funding for operations. This would be to add on to our business. Our business model has always been to grow the top line, the revenue, and the margin, and keep that core structure constant, which is what we've done. We just haven't been able to grow the top line by M&A because of the challenges with capital raising. We do feel we have some potential answers to that, and I do think that we're going to see some activity here in the back half of the year when we're ready. Okay, thanks. Those are my questions. Thank you. There are no more questions in the queue. I'd like to turn the conference back over to David Kohler for any closing remarks. Thank you, operator. Thank you all for joining the call. As mentioned in the beginning, we'll put a transcript on our website. You may contact us through our website at any time at www.mimisrock.com if you don't have my contact information. Certainly feel free to reach out to me personally. If you have any other follow-up questions, we'd be happy to entertain them. We look forward to communicating again with you soon. Thank you all, and have a terrific day. Operator? Yes. Thank you, sir. This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.