Thank you for standing by. This is the conference operator. Welcome to the Mimi's Rock Third Quarter 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. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to David Kohler, Chief Executive Officer. Please go ahead, sir. Thank you very much. Good afternoon, everyone, or morning, depending on your time zone. Thank you for joining us on our Q3 2021 results call. We'll return to the results we filed Friday morning in just a moment. First, I'd like to take a few minutes to share a bit about Mimi's Rock and some commentary about what's happening in the broader e-commerce ecosystem as well. Mimi's Rock 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 U.S., multiple European countries, as well as Australia, and through our wholesale partnerships in South Korea and China as well. Our strategy since we began the business was to scale through a combination of organic growth and strategic acquisitions as well. Recently, we've been focusing on organic growth and opening new portals and geographies as the world has become more e-commerce focused as a result, in part of the general acceptance of the channel and in part of the influence of the COVID-19 pandemic. Recently, we've announced some exciting developments in our organic growth strategy. In particular, we announced that we're launching our brands on Tmall. Tmall is part of the Alibaba Group of China, which you may be familiar with. We're in the final stages of execution of that launch, and that portal is expected to be up and running close to the end of this calendar year, shipping opening inventory in the next few weeks and expecting to see first revenue shortly. I try not to tell you how massive the Chinese market is, and we're very excited about the opportunities. Conveniently, Chinese consumers are drawn to Western goods, so we're able to ship English language labeled products. Of course, the Tmall site and pages, including product descriptions, et cetera, will be written in Mandarin, but the ability to use our current inventory without special language requirements will keep our supply chain simple and eliminate the need for additional segregated inventory. We understand, in fact, the consumers in the Chinese market often actually prefer English language labeling due to a perception of higher quality products coming out of Western manufacturing. Operationally, during Q3, we were met with some significant challenges within our supply chain. These all appeared to have been the result of COVID-related bottlenecks. While they were disruptive, we're comfortable that they were short-term and have, for the most part, been overcome at this juncture. Some of the supply chain issues in recent months were unavoidable, and the result was some disruption in supply on a few of our important products. We had an unusually high amount of stock unavailable for sale, which are situations where products are not readily accessible for purchasers buying online. This situation affected several of our top products. We feel these challenges are in the rearview mirror now as we've worked with channel partners to ensure we have surplus components, materials, and finished goods. We've previously been able to sidestep many of these pandemic supply disruptions, which we've seen in almost every area of the economy. We believe these particular challenges are behind us. By way of explanation, I draw your attention to the purposeful language I use when I call these outages stock unavailable for sale rather than backordered. I'm referring to Fulfilled by Amazon orders. This is our normal course of business preferred channel, where Prime-eligible consumers can buy our products for same-day or next-day delivery. Products ship quickly, you're used to that, and unlike in a traditional retail environment, if you run out of inventory in retail where sales will drop to zero until you replenish, when you sell on Amazon, you can have stock categorized as unavailable if a given depot doesn't have product. Sometimes other depots may have your products, and usually we have inventory in our 3PL providers or on hand at our manufacturer's premises. Because of this, we can mitigate some supply disruptions by direct shipping clients or by offering fulfillment through an alternate, albeit slower process. All this to say, we can work to mitigate supply chain gaps, though there is an impact versus the status quo. As most of us are e-commerce consumers of some note, I'm sure you can appreciate that you might drift off a listing if you realized delivery wasn't going to be next day. We worked hard to create both viable secondary channels as well as better processes to ensure that these challenges are all behind us. We look forward to strong, uninterrupted supply going forward. On a positive note, I'm pleased to report that we've seen a significant jump in our Subscribe & Save memberships during this period. Many additional customers have opted into our Subscribe & Save program, whereby they set a period for an auto reorder of a product in return for a discount, which is typically between 5% and 15% off list price. We saw an uptick of about 35% in membership as many new consumers opted into this program in the last quarter. This is important for multiple reasons, including, firstly, simply more repeat customers, but also higher forecast accuracy that falls out of that. These subscriptions make sales more predictable and better recovery available to us as well in the event of stock unavailable for sale scenarios. You see, when products are replenished, subscriptions are auto-filled. If there was a customer that had subscribed and saved and didn't get a product because of the temporary unavailability, the moment it's back in stock, it would be shipped. We've always been one of the top tier products in the subscription offer. To see us continue to attract more consumers to this program has been great. During Q3, we also made a decision to shift an important relationship and engaged a new company called Teikametrics as our digital marketing partner. Teikametrics' use of AI and extensive measurement and tracking tools made them stand out during our RFP process. It's still early. We're seeing very promising leading indicators of performance. These should translate favorably in Q4. We are excited to move forward with them together, driving increases in revenue and unit volume. As those of you following the company would also know, we recently announced the creation of a special committee of our board. This was tasked in order to review M&A opportunities. I'm pleased to report that the special committee is making significant progress in advancing a number of strategic initiatives, all of which we expect will be positive in terms of unlocking shareholder value. We will provide more specific updates as that process moves forward. During the period, we continued working to execute our strategic plan aimed at delivering CAD 100 million in revenue and CAD 20 million in EBITDA in 2024. This plan is expected to be achieved through a combination of organic growth, which includes new product launches as well as new channels and portals, along with strategic M&A. Please do look for some exciting announcements in the weeks ahead on these fronts. Now that we're seeing the emergence of a new strain of COVID-19 called Omicron, we're anxiously eyeing the economy and seeing what kind of behavioral impacts may result. I said on our last quarterly call that we expected the reopening of the economy to result in some consumers sliding back to traditional retail, but we believe that the e-commerce habits developed in our society will have a lasting effect on consumer behavior. I reference precedents for this belief, specifically the way e-commerce thrived following the SARS pandemic in the early 2000s. That said, we're all disappointed to learn of the new variant. The reality is that it may actually cause a backslide in some of our movements towards returning to normalcy. We may well lose some of the progress made towards reopening the economy. I'm sure we're all aware that travel bans have started to reemerge. This is far from good news for the world. As a practical matter, we believe we are as well prepared as we can be for any new obstacles that may be presented. We've learned a lot over the past 18 months and we expect that experience to serve us well in the months ahead. You should expect a steady stream of updates and announcements going forward. 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. We continue to deal with foreign exchange headwinds, though we note that volumes are increasing now and we anticipate growth as we finish the year. Now I'd like to turn to Andrew to provide us with a review of the financial results. Thanks, David. Good afternoon, everyone. I'll start by providing some additional commentary on our financial results for Q3 2021. At a high level, the financial performance for Q3 was mediocre. Revenues for Q3 2021 were CAD 8.6 million, compared to almost CAD 9.8 million for the same period last year. A continued softer U.S. dollar did nothing to help, but at a brand level, the sales performance was certainly lower than we had expected for the quarter. There are a number of reasons for the less-than-stellar performance, but chief among them is the product availability challenge that we were presented with in the period. Selling on Amazon, or any other online marketplace for that matter, comes with its unique challenges, and while we have done well to manage these, the constantly evolving nature of these marketplaces means that sellers continually have to adapt to and deal with issues of this nature. As a result of the impact of these, neither the skincare nor the supplements business was as strong as we expected in Q3. However, as David commented, we believe we've now dealt with the majority of these challenges, and we do expect improvement in Q4. While foreign exchange rates were considerably unfavorable compared to the same period last year, actually almost CAD 0.10 lower on the USD/Canadian dollar rate, and despite the softer sales performance, we were still able to show a positive EBITDA of over CAD 200,000 for the quarter. We are encouraged that even when confronted with these multiple headwinds in a particular period, we are still resilient enough as a business to generate positive earnings. The company does have the benefit of a natural hedge in some large expenses, and as we work to diversify the revenue streams going forward in terms of geography and channel, we expect to be more insulated against these currency rate fluctuations. That being said, as we stated in the Q3 press release, the impact of the U.S. dollar rate on reported revenue is about $400,000 in a quarter compared to Q3 last year, and so far this year is about a $2 million difference compared to 2020. As earlier discussed, the switch to a new advertising partner late in Q3 had an impact on the performance as new initiatives were effectively postponed during the transition and ad spend remained relatively static. As a result, ad spend was somewhat less effective, and the ratio of ad spend to revenue higher than we would have liked for Q3. Selling and marketing expenses were CAD 4.6 million in the current quarter, compared to CAD 4.5 million in the same period a year ago, albeit on a higher level of revenue. In Q3 2021, ad spend was 53.8%, compared to 45.8% in Q3 2020. Going forward, we expect to drive ad spend lower, certainly below 50%. Higher overall selling prices should allow for better overall margins. One of the key drivers is our efficiency on advertising, and we expect this to improve going forward as a new partner takes over. We are seeing these new campaigns have a noticeable positive impact on the overall trends, and we're cautiously optimistic about the road ahead. I shall now turn the call back to David. Thanks, Andrew. As you may recall from earlier discussions, Amazon has announced requirements 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. We see this as a positive development and as a company, we're completely prepared for and in possession of all the necessary documentation to prove the validity of our label claims. Amazon has now started to request these certificates, albeit on a somewhat ad hoc basis. Enforcement of this requirement is expected to begin shortly, though they are as yet uncommittal as the date at which time products will be delisted if they're not certified. The initiation of this project, however, is great news for Mimi's Rock, and we look forward to the full program execution soon. Shifting gears, we note that it is important to 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 it continued on a fairly meteoric trajectory. The first nine months of 2021, our Dr. Tobias brand grew by over 275% year-over-year in terms of both units and dollars. Those amounts are still relatively modest compared to our U.S. business. We see that our approach to new market introductions works. This bodes well for some of the new markets we're targeting in the short term, and we expect it to follow a similar growth curve. We've also seen continued growth in our skincare brands in the U.S. market. Recalling they were launched originally in Canada, we reported that last quarter we'd seen sales of up 81% on the skincare lines over the same period in the prior year. The U.S. launch is going well. Q3 saw the continued large year-over-year increase in that market. Our year-to-date lift is over 70%, so we anticipate a similar growth curve to what we've seen with the Dr. Tobias launch in Canada. So far, we've had a great start. On this trajectory, the revenues should be material in the near term. Additionally, as we reported previously, we've been adding new 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 products. We expected that new customers might be more open to a first purchase of a smaller pack size, and that appears to be correct. We're continuing to add new SKUs. Also importantly, we've been increasing prices on products, recognizing that costs and inflation are challenging margins. We've carefully reviewed the landscape and started implementing price increases selectively. These changes in late Q3 should bear fruit in Q4 and beyond. Before we open for questions, I want 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 noted, we've added products on multiple new portals in the last year and will continue to do so in the periods ahead. Tmall is one in particular which we are extremely bullish on. 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 will pursue growth by acquisition. We invite you to stay tuned in the months ahead and expect to hear announcements on this front. With that, I'd like to now open the line for questions. Operator? Thank you. We will now begin the question and answer session. Our first question is from Antonia Borovina with Bloom Burton. Please go ahead. Hi, guys. Thank you for taking my question. My first one is whether you could provide some more granularity on how your U.S. Dr. Tobias business performed year-over-year, both on a sales and volume basis, and then also the same question for skincare. Yeah. Hi, Antonia. It's Andrew. I'll try to do what I can. As you know, we don't typically break that out in too much detail, but I can certainly give you trend information. Let's start with the supplement side. We have two significant products in our supplements business. One is a fish oil product, Omega 3 Fish Oil. The other is a colon cleanse product. The both of these are leaders in their categories on Amazon and do very well for us. They have different profiles in terms of margin. We saw fish oil probably a little bit lower than the prior years, but the colon cleanse was significantly higher. Way higher. Overall units were certainly up, but the fish oil is a more expensive product, and so it doesn't immediately impact revenue. However, as Dave alluded to, Colon Cleanse is also one of the products we've been able to take some of the price increases on. We do expect that to help us going forward. The Dr. Tobias business in this quarter, again, it's in U.S. dollars, as you know, that was the one most affected by the foreign exchange. In revenues in Canadian dollars, it certainly had the most impact. In U.S. dollars, it was slightly down in revenue, but up in units. Okay? In skincare, Q3 historically is really a soft quarter for skincare. Even Q3 last year was not a good quarter. We were about the same in both the brands of skincare in revenue and units slightly up over last year. Okay, thanks. Does that answer the question? Yeah. That's helpful. Just regarding your gross margin, you had raised some of your prices at the end of first quarter and decided to do less discounting, so that boosted your margins in second quarter. Now your margins are back down. I'm wondering what drove that margin decrease. Is it more on the supply chain, or did you have to go back to doing more discounting last quarter? Hi, Antonia. I'll take part of that, and then I may ask Andrew to help me with the back end of it. Yes, you're correct. We did make a decision to raise prices on select products in select markets back in Q1, in particular the Colon Cleanse product that Andrew referenced a few minutes ago, which by unit volume is our top seller. We have done a more thorough review of the competitive marketplace within the particular product segments and looked at the margins on individual products and taken the decision to make a more broad-sweeping increase in prices where we can. In Q3 of this year, we raised the price on quite a number of our products. We recognize that consumers seem to be acknowledging, with all the media attention to inflation and whatnot, that these are normal. We've been very selective and very strategic in our choices, but we've now increased prices on a number of products, not just one or two. So far we're seeing volumes hold and thus we anticipate increasing our margins based upon that. Okay. Then on your partnership, your marketing partnership with Teikametrics, I'm just wondering what capabilities do they have that your previous marketing partner didn't have that you hope will improve, I guess, your visibility on Amazon? Well, the thing we're seeing in these early days, which is super encouraging, is they have AI, which they use to deploy the resources that we put at their disposal. What's fascinating is the real-time, like by-the-hour reporting they can give us, so we can measure quite quickly the results of things and be very nimble. Obviously, we'll talk about Q4 later, but when we looked just over this past weekend with Black Friday and Cyber Monday, we were very keen to see what was happening on an hour-by-hour basis. They gave us tremendous reporting information and feedback that allowed us to be more nimble than we've ever been before in terms of adjustments, in terms of what's working, what can be improved upon. I'm talking about things like your average cost of sale and your return on advertising spend and some of these metrics that are crucial to us. Okay. Then maybe- Sorry, there's one other just comment on that. It's not necessarily for this quarter in terms of what we're seeing right now, but one of the key reasons for Teikametrics was in our diversification strategy. They have a very interesting relationship with the Walmart platform. They're one of the, I guess, co-developers, or they have some kind of a relationship that allows them sort of frontline access. That's another channel that we are looking to develop. We're excited about, again, early days there, but some of the good returns on what we're seeing that we're doing on non-Amazon channels. Okay. Great. Maybe finally, can you just talk about what kind of strategic opportunities you're looking at? Are you referring to the special committee? Yes. Yeah. I mean, at the high level, I can tell you that the committee was cast in order to evaluate M&A opportunities. Unfortunately, I can't reveal the nature of those at the moment because these are all live files we're working with. I can tell you that the committee was struck because we saw a number of both inbound and outbound M&A opportunities being presented to us. We created this subcommittee in order to ensure that we take a good hard look at the opportunities being available to us without being too disruptive to management. That committee is managing that set of files at the moment, and we will certainly report on them as they develop and when we are able to. Great. Thanks for taking my questions. Welcome. Once again, if you have a question, please press star then one on your telephone. There are no further questions registered at this time. I would like to turn the conference back over to David Kohler for any closing remarks. Thank you. Thank you all for joining us on the call. We will be putting a transcript of this call on our website. You may contact us through our website at any time at www.mimisrock.com. Certainly feel free to reach out to me personally with any other follow-up questions. We look forward to communicating again with you soon. Thank you all. Have a great day. This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.