Greetings, welcome to Celsius Holdings' Fourth Quarter and Full Year 2021 Financial Results. 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, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Cameron Donahue, Investor Relations for Celsius Holdings. Thank you. You may begin. Thank you, and good afternoon, everyone. We appreciate you joining us today for Celsius Holdings' fourth quarter and full year 2021 earnings conference call. Joining me on the call today are John Fieldly, President and Chief Executive Officer, and Edwin Negrón, Chief Financial Officer. Following the prepared remarks, we'll open the call to your questions, and instructions will be given at that time. The Company released its earnings press release upon market close this afternoon with its preliminary unaudited financial results for the fourth quarter and full year ended December 31st, 2021, and all materials are available on the Company's website, celsiusholdingsinc.com, under the Investor Relations section. As a reminder, before I turn the call over to John, an audio replay will be available on the Company's website later today. Preliminary financial information, financial guidance, and growth disclosures have been prepared by management based on information available to it as of the date hereof and should not be viewed as a substitute for full financial statements prepared in accordance with GAAP. Estimated preliminary results are subject to completion of our customary quarterly and annual financial closing, audit, and review procedures that are not comprehensive statements of our financial results for the three months ended and fiscal year ended December 31st, 2021, and subject to adjustments as a result of such procedures. Reconciliations of all non-GAAP financial measures can be found on our earnings press release supplement and on our website, celsiusholdingsinc.com. Please also be aware this call may contain forward-looking statements within the meanings of the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995, which are based on forecasts, expectations, and other information available to management as of today, March 1st, 2021. In some cases, you can identify forward-looking statements by the words such as anticipate, expect, intend, plan, potentially, seek, believe, project, estimate, strategy, future, likely, may, should, will, and similar references to future periods. These statements involve numerous risks and uncertainties, including many that are beyond the Company's control. Important factors that cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, economic and business conditions, our business strategy for expanding our presence in our industry, anticipated trends in our financial condition and results of operations, the impact of competition and technology change, existing and future regulations affecting our business, the Company's ability to satisfy in a timely manner all Securities and Exchange Commission required filings, the requirements of Section 404 of the Sarbanes-Oxley Act of 2002, and the rules and regulations adopted under that section, as well as other risks and uncertainties discussed in the reports Celsius Holdings has filed previously with the Securities and Exchange Commission. Except as to the extent as required by law, Celsius Holdings undertakes no obligation and disclaims any duty to publicly update or revise any of these forward-looking statements, written or oral, whether as a result of new information, future developments, or otherwise. We encourage you to review in full our Safe Harbor statements contained in today's press release and our SEC filings for additional information. With that, I'd like to turn the call to President and Chief Executive Officer, John Fieldly, for his prepared remarks. John? Thank you, Cameron. Good afternoon, everyone, and thank you for joining us today. Our record fourth quarter and full year 2021 financial results mirror our industry-leading growth metrics from third-party data providers, indicating that Celsius is grabbing more market share at an accelerated pace across all channels. For the first time in Company history, we delivered over $100 million in sales, and we did this in the fourth quarter. In addition, annual revenues exceeded $300 million for the first time, which is truly an exciting accomplishment for the team. This is exemplified by our initial material penetration in the convenience channel, where we grew our store locations by over 95% to over 29,000 locations during 2021, now totaling just under 60,000 doors, while at the same time driving the club channel revenue, and we grew Amazon revenue to new records for the Company. This material expansion in historical underrepresented channels in the convenience channel and club channel has not impacted growth in other channels. Our growth is exemplified not only in sales, but also in our customer demographics. We further diversified our industry-leading consumer base over the past year, historically in the 24-44 age range, with our fastest growing segment in the 18-24 age bracket, driving new female energy drink consumers into the category as we've maintained our historical 50/50 male/female split. This is in conjunction with driving 20% of our sales from both male and female consumers new to the energy drink category. Our market share over the past year has been historic, even with the top two revenue customers, Amazon and Costco, not incorporated into tracked metrics, as well as our fitness channel and vending channel. In third-party tracked channels, our share reached 2.1% share of the total energy drink category, growing 163% in the prior 52 weeks, ending January 23rd, 2022, per IRI, MULO + convenience data, total U.S. This is in our first full year of leveraging our national DSD network. Our future opportunity can be best exemplified by our market share on Amazon, where we are on an even playing field in terms of distribution. As of February 12th, 2022, Celsius is the number two brand with over a 20% share of the energy category. These metrics further validate Celsius as a player in the energy category. Looking at the last four weeks data, scan data, as of January 23rd, 2022, per IRI, total energy U.S. Celsius share in the energy category increased to a 3.2% share in the category, further demonstrating the momentum behind the portfolio. With this growth in revenue, we have also transitioned from a micro-cap company to a current market cap of over $4 billion over the past 18 months. Our investments in building out a world-class team and operational infrastructure during this time has been just as important as our sales growth. In conjunction with our internal team, we have also made significant investments expanding our Board of Directors, as well as engaging Ernst & Young as our new auditor, which we announced in the second quarter of 2021. Over the last several quarters, we have accelerated this transition by implementing best practices recommended and brought on by BDO as our internal auditor consultants to assist with this transition. This process has been all-encompassing, and unfortunately, we have multiple weeks in January and early February where a majority of our finance team was out with COVID. In addition, we have had multiple open positions, and we have been vigorously recruiting top talent into the Company's finance area to support our operations and our strong growth in our business, which was impacted by our ability to finalize the Ernst & Young first full year audit. We filed for an extension on our Form 10-K with the SEC earlier this evening and expect to file our 10-K during the 15-calendar-day extension period as the final audit and internal control procedure work are performed and completed. We have been able to finalize a majority of the pending items prior to our call today, including as reported today in an 8-K filing, and a prior period error correction has been made to the non-cash stock expense in our second and third quarter financial results for 2021, totaling approximately $2.7 million and $12.6 million in additional non-cash stock expense for those periods, which was the results of prior stock grants that were awarded to foundational individuals, which were modified to allow for continual vesting past their contracted service dates. This was an error of interpretation of a Class III modification rule, technical rule, which would resulted in an immediate mark-to-market adjustments for those prior periods stock grants as a non-cash expense. We highlighted this financial impact in our full year updated totals on our flash results table at the beginning of our earnings supplement, as well as the financial statements on the earnings supplement included in the 8-K filing today, which outlines the prior period, changes reflected in the non-cash stock expense for those periods. In addition, in light of this error, our management has concluded that a material weakness existed in the Company's internal controls over financial reporting for the Company's disclosure controls and procedures which were not effective as of December 31st, 2021, which was disclosed in our 8-K filing earlier today, and which will be further discussed in our upcoming filing. To close these non-operational updates, in regards to our previously disclosed SEC investigation, the matter is ongoing, and we are continuing to cooperate with the SEC staff. There has been no material developments in the investigation since the last disclosure. Now moving to the financial highlights for the fourth quarter. As stated, sales hit another quarterly record, and this was our first quarter to a total over $100 million, which is a major accomplishment for the Company. Revenue growth was driven by continued new store count additions, SKU expansion, cold placement, DSD coverage expansions, as well as the continual transition of existing accounts to DSD, as well as the unrepresented channel growth in the convenience club and vending. Total sales for the quarter of $104.3 million, up 192% from $35.7 million in the fourth quarter of 2020. Our domestic sales increased 238% to a record $95.9 million, up from $28.4 million in the fourth quarter of 2020. With both of these percentage growth rates the highest in our history, we continue to see our two hardest hit channels from COVID in 2020, our fitness and vending channel, not only rebound, but drive growth in sales. Fitness was up 91% for the year, and vending was up 186%, which when combined, contributed approximately $14.7 million of incremental revenue for the full year. International sales grew 15% to $8.3 million for the quarter and 17% for the year with a record annual revenues from the Nordics. Our gross profit margins continued to be impacted as we previously addressed in our third quarter results. We made a strategic decision in late 2020 and early 2021 to import cans to fulfill our demand, sacrificing some efficiencies on the margin side. As a result, we are seeing the impacts of these one-time short-term impacts as we run through these higher cost sourced cans. We anticipate margins will continue to be impacted through the third quarter of 2022 as we process through these sourced cans. As we move forward, we are confident the U.S. sourced cans making up the majority of our production will be normalized our can input costs going forward. In addition, we are experiencing inflationary costs in our operations, which is further impacting our business from increased costs of freight and raw materials. We have implemented promotional pricing strategies to mitigate some of these immediate changes in our business environment, which we'll start to realize in the coming months. In addition, we further optimized our warehouse supply chain to reduce miles on cases to better service our customers and reduce costs. We anticipate when cycling through the imported cans, our margin will normalize to full year 2020 levels based on current volume run rates. To conclude our margin analysis, as we recognize revenue growth rates more than double in North America to over 200%, we made a conscious decision to ensure that we had operational infrastructure to support our revenue growth and take full advantage of the opportunity to take share at an increasing pace. As such, we accelerated initiatives on several operational improvements to position us for future growth, which would impact our margins in the short term. Additional incremental near-term margin and benefit will be realized through pricing and promotional strategies, operational efficiency gains through our supply chain, and a move to locally sourced cans on a go-forward basis. The Company continued to improve our order fill rates toward normalized levels through the fourth quarter, from an 80% fill rate at the end of Q1 to the end of this year at a 97% fill rate in fourth quarter, and expect to maintain normalized levels even with accelerated growth rates due to the improvements in our warehousing expansion to a six-orbit infrastructure model w ill be put in place into the third quarter, an expansion in our inventory, which is key as we enter the spring resets and anticipate material new placements as well as further expansion into the club channel. Some additional highlights for the fourth quarter, our domestic revenues of approximately $96 million was driven by accelerated triple-digit growth in traditional channels of trade, expansion with worldwide retailers and further activation and growth from our distribution partners. Direct Store Delivery, DSD Network, delivered over a 400% growth rate versus the prior year in our distribution revenues. We secured additional distribution agreements during the quarter, expanding availability to new regions as Celsius continues to build out its network, now totaling over 276 regional direct store delivery service centers, covering approximately 98% of the U.S. population. When we began 2021 with only 150 DS partners and 80% coverage, we made substantial improvements throughout the year. Our vending channel grew over 210% in the fourth quarter. We added over 1,200 vending machines and micro markets in 2021, increasing the number of locations by 96% for the year, and expect that growth to continue in 2022. In the fitness vitamin specialty channel, Celsius launched with Life Time Fitness and is now available in over 150 of their locations and their LifeCafe. We also signed partnership agreements with CycleBar as their official energy drink, and expect more clubs than ever to join us as the country continues to reopen in 2021, as we gain more awareness and placements in the fitness channel. Our mass club channel to accelerate growth following the rollout of 561 Costco stores in Q2. Costco's fourth quarter established a new record, growing over 1,100% for the fourth quarter versus the prior year. We're also seeing significant opportunities in the club channel in other markets to include Sam's Club and BJ's through 2022. In the convenience channel, our convenience channel store locations increased by 95%, as I said, to over 29,000 locations for the full year, totaling 60,000. We recently signed a national contract with Circle K, which will drive further expansion in the channel in 2022. The convenience store channel has the largest growth in number of doors in 2021 and expects similar growth trends to continue through 2022. Industry-backed third-party data continues to show Celsius accelerating growth metrics, and we are confident that Celsius will continue to drive sales even higher as we increase our ACV across channels through additional launches with new nationwide retailers and further transitioning existing accounts to our DSD network. Consumer data for Celsius accelerates through the fourth quarter of 2021 and through February of 2022 to record levels, with the most recent Nielsen scan data as of February 12th, 2022, showing Celsius sales were up 233% year-over-year for two weeks, up 234% for the four weeks, up 227% for the twelve weeks, with a 3% share of the energy category over the last two weeks. On Amazon, as I said, Celsius is the second largest energy drink with a 20% share of the energy category, an approximately 7% share ahead of Red Bull at a 13% share, and moving closer to the number one spot, just four share points behind Monster at a 24% share. This is according to the last four weeks data ending February 12th, 2022, Stackline Energy Drink Category, Total U.S. In addition, Celsius has year-over-year growth rate of about 94% compared to Amazon's energy growth rate of 37%. That's just over 2.5 x the category for the last four- week ending February 12th, 2022, and according to Stackline. Our U.S. store count now exceeds 135,000 locations nationally, growing over 53,000 doors or 65% from 82,000 at the beginning of 2021, with additional expansion plans throughout 2022 as retailer resets take place. On our co-packing front, we continue to expand with our partners in scaling efficiency at existing locations, improving our lead time priority. Our total U.S. co-packer footprint now totals over 13 that are active, which will help protect for future out- of- stocks and support our massive growth as we continue to improve efficiencies in our supply chain. In the fourth quarter, Europe mainly derived from Nordics totaled $7.4 million compared to $6.9 million in the fourth quarter of 2020, an increase of 7%. Our market share in our largest market, Sweden, increased through the fourth quarter to just over 10%. For the full year, sales in Europe reached a record with an annual growth rate of 13% for 2021. We recently launched on Amazon EU. Expansion begins with Great Britain, which was launched with three SKUs of Celsius and six FAST protein bars. In Germany, we launched with three great flavors of Celsius. We are also expanding to additional E.U. markets to include France and Italy, launching in early 2022. In China, we maintain a licensing royalty model in the market with a fixed royalty rate through 2024, which then becomes a volume-based royalty starting in the first year of 2024, with a minimum royalty of $2.2 million annually. In our international markets, additionally, annually in 2021 drove about $3.2 million, an increase of 109% from $1.5 million in the prior- year period. Material markets to include Malaysia, Hong Kong, Korea, and Singapore, we saw great growth. Now moving to the marketing. On the marketing front, we continue to activate, targeting new and existing consumers where they live, work, and play, building meaningful emotional connections through robust integrated marketing programs. Our momentum is accelerating, and our brand is resonating with a diverse consumer base, expanding the category demographics. Focus on health and wellness is beyond a trend now. Functional energy is recognized throughout the industry as a driver of future growth with retailers and customers. We are driving and leading growth in the energy category across all channels, expanding the demographic while bringing an industry-leading percentage of consumers from outside and new to the category while accelerating our share in the growing energy market. We have committed the resources, both in personnel and operational infrastructure, to maximize our opportunity. I'll now turn the call over to Edwin Negrón-Carballo, our Chief Financial Officer, for his prepared remarks. Edwin? Thank you, John. I wanted to start by providing additional clarity on the adjustments that John highlighted regarding the non-cash stock compensation expense. During Q2 and Q3, the Company calculated and recognized non-cash stock-based compensation expense related to options and RSUs held by former foundational employees and retired directors ratably over their vesting period. However, because the options and the RSUs were allowed to continue to vest after the employees separated and the directors retired from the Company, those awards were deemed to have been modified, and the expense should have been calculated and recognized using the fair market value of the stock as of the date of termination or retirement. This led to the adjustments that John discussed, which resulted in the understatement of the stock compensation expense in Q2 in the amount of $3.1 million and $12.1 million for Q3. These aspects are further detailed in the 8-K that we filed today. As a result of this situation, the Company's management and the Audit Committee of its Board of Directors have determined that the Company's previously issued interim unaudited financial statements contained in the Company's quarterly reports on Form 10-Q for each of the affected quarters should no longer be relied upon. The Company's management has also concluded that in light of this situation, as previously described, a material weakness existed in the Company's internal control over the proper valuation of stock compensation expense regarding the modifications performed to stock awards for some former employees and retired directors. Now turning to our fourth quarter financial results. We had a record fourth quarter revenue for the three months ended December 31st, 2021 of $104.3 million, an increase of $68.6 million or a strong 192% increase from $35.7 million for the three months ended December 31st, 2020. Approximately 98% of this growth was a result of increased revenues from North America, where 2021 fourth quarter revenues were $96 million, an increase of $67.5 million or a robust 238% increase from $28.4 million in the 2020 quarter. The balance of the revenues for the 2021 quarter were mainly related to European revenues of $7.4 million or 7% higher when compared to $6.9 million in the year ago period. Asian revenues, which included royalty revenues from our China licensee, contributed an additional $680,000, an increase of 203% from $224,000 from the prior- year quarter. Other international markets generated $265,000 in revenues during the three months ended December 31st, 2021, an increase of $148,000 or 127% from $117,000 for the prior- year quarter. Gross profit for Q4 increased by $24.2 million or 139% to $42.4 million from $17.4 million for the three months ended December 31st, 2021. Gross profit margins reflected a decrease to 39.9% for the three months ended December 31st, 2021, from 48.9% for the 2020 quarter. Excluding freight out, as some of our competitors do not include this expense as part of cost of goods sold, our adjusted gross margin for the fourth quarter was 48.4% compared to 57.2% for the fourth quarter of 2020. The increase in gross profit dollars is related to increase in volume, while the decrease in gross profit margins is mainly related to increase in costs pertaining to imported cans, higher raw material costs, ocean freights, and transportation costs and repackaging costs. Sales and marketing expenses for the three months ended December 31st, 2021 were approximately $24.6 million, an increase of approximately $13.4 million or 119.2% from $11.2 million for the three months ended December 31st, 2020. This increase was primarily attributable to higher marketing investment activities, which resulted in an increase of $8.2 million when compared to the prior- year quarter. Additionally, employee costs increased by approximately $1.5 million from the year ago quarter as we continue to invest in this area in order to have the proper infrastructure to support our growth, as well as incurring additional travel and business expenses since we are now able to resume in-person marketing events and selling activities. Additionally, storage and distribution expenses as well as broker costs accounted for the remainder of the increase in this area in the amount of $4.2 million from the 2020 quarter, basically related to the increase in business and revenue volume. Lastly, there were slight offsets in other sales and marketing expenses in the amount of $487,000, mainly related to savings in trade marketing activities. As a percentage of revenue, sales and marketing charges amounted to 23.6% for the fourth quarter of 2021, compared to 31.5% in the fourth quarter of 2020. General and administrative expenses for the three months ended December 31st, 2021 were $14.2 million, an increase of $8.4 million or 147% from $5.7 million for the three months ended December 31st, 2020. This increase was mainly related to stock option expense, which amounted to $7.8 million for the three months ended December 31st, 2021, an increase of $6.2 million, which accounts for 74% of the total increase in this area when compared to the prior- year quarter. This increase is mainly related to the non-cash expense adjustments that I mentioned at the beginning of my prepared comments. Additionally, employee costs for the three months ended December 31st, 2021 reflected an increase of $804,000 or 53.8%, as investments in this area are also required to properly support our higher business volume and commercial and operational areas of the business, as well as the increased travel and expenses that are now being incurred. Administrative expenses amounted to $3.5 million, an increase of $2.1 million or 153% when compared to the prior- year quarter. This variance includes an increase in the bad debt reserve of $425,000, as well as increases in audit costs, legal expenses, insurance costs, and office rent, which account for the majority of the remaining fluctuation of $1.7 million. Depreciation and amortization decreased by approximately $222,000 when compared to the prior- year quarter. As a percentage of revenue, G&A costs amounted to 14% for the three months ended December 31st, 2021, compared to 16% in the prior year. However, excluding the non-cash stock option expense for both periods, G&A decreased as a percentage of revenue for the fourth quarter of 2021 to 6.1% compared to 11.5% for the fourth quarter of 2020. Other income and other expenses. Total net other income for the three months ended December 31st, 2021 amounted to $250,000, which reflects a decrease of $350,000 when compared to the total net other income of $600,000 for the three months ended December 31st, 2020. The prior- year quarter included a foreign exchange gain of $730,000, which accounts for the majority of the variance from the 2021 fourth quarter. The net other income of $250,000 for the fourth quarter of 2021 is composed of foreign currency exchange gains of $175,000 and interest income of $77,400 related to the note receivable from our China licensee, which were partially offset by miscellaneous other interest expenses of $2,100. Net income. Our net income for the three months ended December 31st, 2021 was $11.9 million, which included a tax benefit of $8.8 million, mainly related to the release of valuation allowances regarding prior- year tax losses. As such, earnings for the three months ended December 31st, 2021 were $0.16 per share based on weighted average of 74.8 million shares outstanding, and dilutive earnings per share of $0.15 based on a fully dilutive weighted average of 78.4 million shares outstanding, which includes the dilutive impact of stock options to purchase 3.6 million shares. In comparison, for the three months ended December 31st, 2020, the Company had fourth quarter net income of $950,000 or $0.01 per basic share and diluted share based on basic shares of 71.9 million shares and 76.5 million fully diluted shares. Now focusing on liquidity and capital resources. As of December 31st, 2021, and December 31st, 2020, we had cash of approximately $16.3 million and $43.2 million respectively, and working capital of approximately $169 million and $66.8 million respectively, with no long-term debt. Cash flow used in operating activities totaled $95.8 million during 2021, which compares to $3.4 million provided by operating activities for the year ended December 31st, 2020. The use of cash in the 2021 year was primarily driven by higher inventory levels in order to properly service the demand for our products, support our new six orbit warehouse model, and mitigate the impact of supply chain inefficiencies and inconsistencies, as well as also to anticipate our upcoming spring resets. Specifically, our net inventory value increased $172.8 million from $18.4 million in the fourth quarter of 2020 to $191.2 million for the year ended December 31st, 2021. Excluding the significant increase in inventory, cash flow from operations for the full year ended December 31st, 2021, would have totaled approximately $84.3 million. Our current cash position, together with the expected results from operations, should provide us with sufficient cash to operate our business as we're also normalizing and optimizing our inventory levels, which should release significant funds over the next 12-15 months. This concludes our prepared remarks. Operator, you may now open the call for questions. Thank you. Thank you. Ladies and gentlemen, at this time, we will be conducting a question and answer session. If you'd like to ask a question, you may press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Our first question comes from the line of Kevin Grundy with Jefferies. Please proceed with your question. Hey, thanks. Good evening, guys. Good evening, Kevin. First, just a housekeeping question on the control issue. Can you just confirm that the issues here as you wait for the audit to wrap up as best you know are just going to be exclusively isolated to the stock-based comp accounting? That's the indication. Hi, Kevin. This is Edwin. Yes, that's the indication we have right now. Yeah, as you well pointed out, we're still, you know, going through the audit and obviously internal controls is a major aspect of what's, you know, remaining. That's the expectation, but, you know, we'll see what happens. Okay. Fair enough, Edwin. Thanks for that. Two more quick ones from me. Just John, you were pretty optimistic on the shelf space resets, which is encouraging. I think the comment was, you know, you expect material new placements and expansion in the club channel. Maybe just spend a little bit of time on that. John, I guess within the answer, we can see the really positive trends in Nielsen scan data at about 2% market share. You know, maybe as part of your response, just talk a little bit about how you expect distribution velocity to kind of play out here and where you expect that share to go within scan channels over the next 12-36 months. Yeah. No, Kevin, you're absolutely right. I mean, the scan data's been extremely strong, as we were talking earlier about on the call. You look at that, what's interesting is as we're expanding into these reported channels, you know, we're still seeing great increases in velocity in the club channel, mainly at Costco and also on Amazon, seeing that improve. You anticipate that to level off at some point as we're gaining broader distribution. Initial feedback has been, I mean, the data looks really strong as it stands now, especially looking at that February data, the most recent. You know, when we go talk about the club channel, that was a big surprise for us in 2021, seeing how well the product was performing. We're talking to Sam's Club right now, and hopefully we'll, you know, we'll have to see opportunities with them in 2022 as well as BJ's, as I mentioned. The big win in Circle K is for us in the convenience channel, and that's where about 6,000 stores that we're gaining a national distribution agreement with. You know, we're gonna continue to expand. We had a great NACS. We talked about that in the third quarter. In October, the Company had one of the best NACS shows that I've ever attended with the Company. So we feel we're in a good spot. We got a great key accounts team as well that's been working really hard, and we're gonna see, you know, the fruits of all their hard work here over the next several months, really. Got it. Thanks, John. Just one more for me, and then I'll pass it on. I have a number of questions you can take offline. Just on the gross margin, Edwin. Maybe just, I know you guys don't like to guide, but maybe just at a high level now what the expectation is given commodity cost pressure. You made the comment that you have higher cost cans sitting in inventory, and inventory is up materially here as you look at inventory days in the fourth quarter. Can you just help give us some directional sort of guidance on how you expect gross margin to sort of trend here, as we look out in 2022? Within that, Ed, anything you can give more broadly? Because, you know, there's sort of this near-term pressure, which is a little bit worrisome to investors. Bu t this, you know, massive longer term opportunity for margin expansion, you know, as you could potentially approach Monster-like EBITDA margins. Maybe just sort of marry up near-term expectation versus, you know, sort of the promise of what could be really material margin expansion longer term, and then I'll pass it on. Thank you. Thanks, Kevin. Yeah, sure. I mean, as we said in the past, you know, there's several, you know, variables to that equation to say the least. One of them is kind of the mix between, you know, the local sourced can and the cans that we source out of the U.S., which are at higher cost. Clearly, that's gonna have an impact, and we're seeing that that's probably gonna be, you know, they're gonna be flowing through cost of goods sold at least through Q2, a little bit thereafter as well. That's gonna be an impact. Then obviously, you know, the issues that we're seeing with the supply chain in terms of freight, we're all seeing the impact of, you know, the macroeconomics in terms of, you know, the price of oil and all that. We'll have to see how that plays out as well. In terms of transportation costs, we saw at one point freight costs of a container all the way close to $20,000. Again, there's a lot of variables in this equation, which is very difficult, you know, at this point to for us to, you know, kind of evaluate. And as, again, it, you know, the mix between the local cans and the foreign cans is also gonna play an important part of this equation as we cycle those cans through. In terms of the EBITDA or going forward, yeah, at one point, hopefully when this normalizes, there's always talk about this inflationary being transition in nature, or transitory in nature, I should say. You know, once we normalize, sure, I think the expectation is that we go back to kind of the gross profitability that we were seeing initially in 2020 and, you know, thereafter also continue to leverage with the volume that we have to then improve our EBITDA margin. Yeah, I'll just chime in. When we look at our internal forecast, we're expecting to cycle through the import cans, sourced cans, you know, currently sometime in the third quarter. Expect that to be normalized to 2020 levels as we cycle through. We are working on a variety of pricing promotional strategies to offset some of this inflationary pressure that we're currently seeing. Got it. Very good, guys. Thank you. Good luck. Thank you. Thank you, Kevin. Our next question comes from the line of Mark Astrachan with Stifel. Please proceed with your question. Yeah, thanks. Afternoon, guys. I guess first, just following up on the stock-based comp commentary. Ed, I think you said that's the expectation, that it was just specific to that. You know, are you saying that there's nothing else that you're aware of that could potentially come up at least at this point? I respect the fact that, you know, it could potentially come up over the next 15 days. You know, are you saying there's nothing else that you're aware of beyond that? Then related to that, was this in any way related to the SEC investigation? Well, no. First of all, I mean, it's a first-year audit, right? Clearly, you know, when I've been on the other side of that when I was an auditor, and first-year audits, you know, are more, you know, they go into a lot more scrutiny, you know, that kind of thing. We're playing now in the big leagues with Ernst & Young. Perhaps there's something that could surface. At this point, we're not, you know, seeing something to that nature, but you never know. That's why, you know, kind of leave the door open at that point or this point, because again, they're doing a very thorough job, and that's fine, and that's what, you know, what we expect them to do, you know, that kind of thing. In terms of your other comment, not sure, you know, as it relates to that, not necessarily. It's more of a situation that happened regarding, you know, some of the awards that had to be, you know, properly valued at fair market value for some of these employees that were separated and some of the Board members that also retired. I'll just chime in in regards to some of the employees. It was also, you know, it's a technical aspect there because some of them are still providing services through contractual services. There was just a technicality that they, you know, there was error in interpretation there on those stock awards. You know, it definitely was an oversight and a correction that was noted. I think also management feels very confident in the numbers we put out and preliminary numbers. Obviously you think anything can come up, but at this point, we wouldn't put out preliminary numbers unless management felt confident in the numbers provided today. Got it. Okay, that's helpful. Switching over to the business, John. You know, if you look at your market share on a state-by-state basis, you know, it's pretty interesting that your home state share is something slightly in excess of 10% relative to current national share. It's at somewhere in the mid-3s based on the latest data that we've seen. I guess I'm curious if you could talk a bit about how you think about those two numbers sort of ultimately working in unison, and is there anything that would potentially prevent your state market share from improving in some material way once you get more distribution? I guess, you know, sort of related to that, maybe you could talk about the state of distribution the further you move away from Florida from just an overall penetration standpoint. Yeah. I mean, the share count you referenced in Florida is phenomenal. I mean, the Company's been working extremely hard at that. Also, I think you're really seeing the power of the DSD network. Florida has been fully covered now for, you know, a little over almost going on two years now. You know, you're really seeing that availability, that increased ACV. Also, you saw Circle K. We did land Circle K in the southeast, so that came on as well, and 7-Eleven and a variety of other of our key accounts as well as Publix. We've been doing extremely phenomenal there. I think it's just an indicator. It's another indicator, given the same opportunity, Celsius will perform at the same level, if not, you know, better than the competition. Florida is extremely a great state for us, as well as Texas and California, and several other states around the country are starting to really increase you know share in those markets as we build out the DSD network and really being able to activate those accounts, those key accounts, and gain more distribution. Got it. Okay, I just wanna clarify one thing going back to the SEC. So Edwin, is the SEC investigation related to this or are they separate? They're separate items? No. Again, they're completely separate. Okay. This was more, yeah, an internal aspect. Okay, perfect. I appreciate it, guys. Thanks. Our next question comes from the line of Jeff Van Sinderen with B. Riley. Please proceed with your question. Hi, everybody. Just wanted to follow up on the Circle K contract w hat we're looking at there as far as the rollout. Th en also wanted to follow up just on the DSD expansion, kind of where we are now in overall percentage, and then what you think is a reasonable target by the end of fiscal 2022. Yeah. Jeff, thank you. You know, when we look at our, you know, overall, you know, where we're at when we see Circle K, that was a great opportunity. We've been, you know, a long-term partner with 7-Eleven. Circle K is a great opportunity for us, and we've been testing in some regions. Getting this national contract and national rollout is really exciting. It puts us in about, approximately 6,000 doors nationwide with about, you know, probably around, right around average about four flavors. Is really a great jump-start to the DSD network. We're bringing another great key account to our distribution network. We got a bunch more coming as well. That's gonna further activate and allow us to close, you know, that white space that's out there. We talked about, you know, I mentioned earlier in the comments some of the DSD gaps that have been closed in 2021. The team, the whole DSD management team has done a phenomenal job, you know, really working on closing those gaps, which is extremely difficult to do. We get up to, you know, over 270 direct store delivery warehouses and facilities that are out there that are being managed. We got systems, processes in place, and we're at about 98% of the population covered. We do have some gaps in certain states we're working to close. The team's getting closer, and we're looking to get majority coverage and be able to service, you know, all of our key accounts nationwide, definitely by the end of 2022, is definitely the plan. We're pretty much able to service 98% of the population now. It's really the next phase. 2022 is all about activation. Activating our DSD network, driving more distribution, increasing velocity, and getting better activating sales and bringing new consumers to the portfolio. Okay, great. Then if we could just turn to the six- orbit warehouse model, can you give us more detail on, I guess, where you are on ramping that up, what the next milestones are that you're targeting there, timeframe around that? Then if you could speak more about what level of benefit you anticipate once the six- orbit system is fully optimized. Yes. You know, we started that six- orbit model in the third quarter. We built that out, building the warehouses. We did increase inventories, as you can see in our balance sheet. We feel we're at a really good inventory level, and we're gonna be able to activate really about optimization. Q4 is about optimizing inventory levels and also really getting those proper service and lanes established within the logistics supply chain. We're working with some of the largest logistics suppliers providers to provide us the best you know, the best rates to service our customers, reducing the number of days to service customers lead times, and most importantly, driving more efficiency through the network's full truckloads, full pallet flavors, those type of things, which just really improve your... We'll be able to improve our freight costs as well, so and margins. That's where we're at. We're looking to be, you know, really when you look at Q1, looking to be further really further optimized by the end of the first quarter, is what the team is really working on. Always optimizing, always trying to improve and get better, but you know, by the end of Q1 2022, we should be really well optimized for 2022. Okay, great. I'll take the rest offline. Thanks for taking my questions and best of luck. Thank you, Jeff. Our next question comes from the line of Kaumil Gajrawala with Credit Suisse. Please proceed with your question. Hi, guys. If I could follow up on the last question as it relates to how many of those accounts you've actually changed over of the 98%? I think you gave a lot of examples of accounts with specific names, but are you now 60% converted, 70%? I don't know if I missed it or maybe we never got that figure. Yeah, yeah, no worries. Thank you, Kaumil. In regards to the 98% is the population coverage. We're able to service all our key accounts. You know, assuming they were all flipped over to our DSD network, we would be able to service about 98% of the population. That's really what we meant by the 98%. When you look at our, you know, right now, if you break it down, if you look in the press release, we kind of break it out. We have about 65% of our MULO+C, so that MULO in convenience stores are now being serviced by DSD. We have a lot more optimization to go, and that's what the teams are working on in 2022. New accounts are all coming on through DSD, and some of our existing established accounts, we're working on converting them over. Like I said on prior calls, it does take time. It's not as easy as you know an overnight flipping a switch. There is a process that has to take place and the teams are working hard to move because we know when servicing by having Celsius serviced by DSD, we increase velocity, increase within the given store. It benefits everyone. It benefits the store owners, it benefits our distributors, and it benefits us. That MULO+C number is representative of your overall. Does that sound fair? Yes. 65%-ish. Yeah. Okay. The next question on margins. Can you give maybe a little more context on what the, perhaps the spread is on the imported cans versus the domestic cans? You know, we look at how much gross margins were down, would they have been down half as much if you were sourcing domestically at 1/3? Can you maybe just give some context of, as you work through that inventory, we have a sense of where margins should look like? Yeah. I mean, as we work through the margins, I mean, you know, we said once we cycle through the international cans, we expect to be back to, you know, margins somewhere closer to the full year of 2020. You know, that's really where we see the margins at this current level where our current run rate is. But you know, when you look at the international... The some of these source cans, they're coming in, as Edwin mentioned. Some of the can costs on containers are, you know, $20,000 a container. We're starting to see container prices drop a little bit. We do have some more imported cans that have to come over, and we have some on the water. That's why we anticipate those to cycle through sometime based on our current internal forecast, right around the third quarter of 2022. You know, you're seeing, you know, some of those imported cans are right around the 3% or 3%-4% margin impact overall. It is pretty substantial. We have some also transitory freight increases that we've seen and raw material costs that we're working through. We're trying to offset and mitigate some of those increases with pricing promotional strategies that we have implemented. Okay, great. Finally, if I could ask you about marketing spend. You're now, as you know, as you push to, you know, fulfill that 98%, as you mentioned, 2022 is all about activation. How should we be thinking about your marketing and sales spending? Well, you know, we are investing ahead of revenue, you know, based on our, you know, where we are in our life cycle and our growth cycle. We, you know, are hiring a variety of staff members in all departments from finance, sales, marketing, operations. We're really building out our team. You know, we are investing headcount resources. In regards to marketing, we're trying to be very methodical on our approach on marketing, but we are, as Edwin mentioned in his prepared comments, you know, we're getting back into events. We're, you know, really seeing some great activation. We're gaining more distribution as well. It's very important as we gain distribution, we continue to market and invest behind the brand to continue to drive those new consumers to the portfolio to maintain those velocities at retail. You know, we're working on that. We're gonna gain more efficiencies as we go. I think you look at our current quarter, we're probably, you know, somewhere around maintain some of those spending levels currently on a go-forward basis through 2022. If you look at the G&A, I think if you back out some of the stock-based compensation expense there that was in the fourth quarter, we're right around a 6%, 6.1%, and that does include increased costs associated with accounting and legal and those type of fees as well as consultants that are helping us as well. There's definitely a lot of leverage in the model as we grow. Okay, great. Thank you. Thank you. Our next question comes from the line of Sean McGowan with ROTH Capital. Please proceed with your question. Thank you, guys. Yeah, I wanted to start with a couple of quickies too. Edwin, is all of the stock-based compensation expense taken in the G&A line? It's like 100% of that is in that line? Correct. Yes. The level that we see then for the fourth quarter, do you think that's gonna be like a normal level that we should expect to see each quarter? Or is there kind of some catch up from this issue that you flagged, and we would see that level actually go down over time? Yeah, no, I mean, it should be around what you're seeing now or what we'll, you know, we commented on going forward. Okay. Thank you. Shifting to housekeeping on taxes. Can you give us what the dollar amount was of that deferred tax credit reversal or release? Yeah. I think it was around $8 million, $8.5 million. Okay. About almost the whole thing then. What would you expect would be the tax rate going forward then? Well, we still have some NOL. So, you know, again, and we're cycling through that in terms of, you know, the provision and finalizing those computations. But yeah, we're still gonna have some... A little bit of NOLs going forward. It should be higher. I mean, some significantly higher rate than what we've been showing, right? Yeah. Obviously, yeah. Depending on the profitability and profit, but yes. Yeah, jurisdiction. Okay. Now a couple of other questions then. Could you provide a little bit more color on the inventory build? You know, how much of that is just pure inflation? And where do you expect, maybe more usefully, where would you expect days inventory to be, you know, 12 months from now? Yeah, if I jump in as well, and then feel free to chime in. Our days of inventory, you know, we're looking at a... When you look back, you gotta do a look forward on a go-forward. We did prepay, you know, a lot of a big chunk of raw materials. We got a little over right around, you know, $60 million-$70 million of an additional prepaid associated with cans and raw materials. It's still a very difficult environment out there for raw materials. We took advantage of making sure strategic prepayments, making sure we secured raw materials as we enter, you know, 2022 and enter really this, you know, start to get in position for recession and summer, you know, summer beverage season as well. That puts us in a good position so we maintain stock levels. As you go forward, I mean, in the growth that we're seeing, some of the growth rates, especially in North America, upwards of 200%, you know, you really need to be very close to the inventory levels. It's important that we maintain a higher inventory level, as we go forward with these growth rates. Ideally, we wanna be, you know, somewhere at this stage, right around, 90-120 days on hand. We are sitting currently at the end of the year at a higher level just due to the large production runs we made in December, strategically positioning us for 2022. Okay. Final question on international. I mean, we've talked quite a bit over the course of the last year about North America being the focus 'cause that's where, you know, there's so much low hanging fruit and opportunity. Is there anything else that's constraining international sales from being higher? You know, can we expect that growth rate to accelerate? I think there's you know, we've always said you know, somewhat conservative on international currently. You know, we do see a lot of opportunities there. You had that opportunity in the Nordics to expand out. We've started to do that on Amazon, as mentioned, entering you know, Great Britain, U.K. and also into Germany. There is opportunities also in Asia w ith South, Southeast Asia. There's a lot of opportunities there. We're being very methodical on our approach as we continue to grow and scale. As we see increased velocities, we'll put increased investments in that currently. You know, I think the current you know, where we stand now, it's being a very methodical approach and conservative. Yeah. I've always said at international, the key aspect is to identify, you know, good partners, you know, master distributors, so that then you avoid having a large footprint and again, even things like currency exposure and things of that nature. Like John said, you know, it's always about identifying those, you know, key partners in those different markets. Thank you very much, guys. Thanks. Thank you. Our next question comes from the line of Sean King with UBS. Please proceed with your question. Great. Thanks for the question. I guess I said about just looking at how strong the growth was in the quarter and thinking about some of the difficult comparisons, in the back half of 2022, like, how should we be thinking about sort of bumping up against production constraints? I guess the confidence that you have that you can keep up this level of growth. Yeah. I think, you know, when you look at the growth we've had, I mean, we're gonna continue. We're forecasting internally in regards to our inventory levels. You know, we expect to continue to drive continued momentum and share in the category. As we mentioned, we got 13 co-packers that are active. We're talking to a variety of others. You know, we have Paul Storey we brought on, you know, last year, who has great knowledge of the beverage industry, especially with co-packing and associated with energy drinks. You know, we really feel we're in a really good position currently. As we scale, we have capacity levels. We're telling, you know, internally, we're telling sales to outsell production and having an internal competition on it. You know, I think we're in really good positions. We feel in a really good space. You know, things happened that can happen out of your control, but as we sit right now, we're ready for to continue to drive scale. Great. Thank you very much. Our next question comes from the line of Jeffrey Cohen with Ladenburg Thalmann. Please proceed with your question. Oh. Hi, John and Edwin. How are you? Hello. Excellent, Jeff. If I could follow up a little bit as far as the co-packers. You're up to 13 now. How did that pace look over the third quarter, and what would you anticipate domestically for 2022? You know, right now we're at six orbits. You're gonna see us, you know, what we wanna do is as we can to drive efficiencies. You wanna keep your supply chain and your warehouses in an orbit. You really don't wanna ship outside of an orbit to gain efficiencies. Right now, where our volumes are at, we're at a six orbit. But as we grow and scale, we'll continue to create more orbits, which will further drive efficiencies through the model and the supply chain. You know, that is really based on how fast and how quickly we scale, and that we're building our plans and you'll see those to come alive. You know, we're talking to a variety of additional co-packers strategically placed around the country as well as additional warehouse facilities that we'll be able to, you know... you wanna put the least amount of miles on cases and be as efficient as you possibly can. That's what we're working on, but we feel we're in a good position right now, given our current growth levels and current volume. Got it. I wanted to touch base again on the inventory levels in cans specifically. Domestic cans have caught up as far as supply and demand out there. Is that a good way to look at it over the past few months? I wouldn't say. You know, you're still hearing a lot of capacity constraints out there, so we feel we're in a good position based on some long-term you know agreements and arrangements we've made. In general, can supply is still tight. If you look at a lot of the major can manufacturers that are out there and the comments that they're saying, you know, it's tight right now. You know, it's gonna be difficult for a lot of smaller brands. You know, you're still seeing a lot of smaller brands wrapping cans out there. You know, obviously that's a lot more expensive than importing cans or sourcing cans abroad. You know, we feel based on our volume, we have additional leverage to be able to buy and purchase and secure domestic cans on a go-forward basis based on our current internal forecast once we cycle through these sourced cans that we have currently in inventory. Okay. When we think of inventory, can you give us a sense of what percent that is of cans as opposed to filled and finished products? Probably about, you know, 15%-20% of our inventory is probably currently, you know, within our packaging components. Got it. Okay, and the balance is finished product. We do have some additional raw materials in there as well. Packaging materials, yeah. Okay, got it. Any sense, and I know you talked a little bit about some of the challenges of labor and logistics. Any sense of how they may affect the gross profit differential between the outbound freight and the gross profit going forward? Does it feel like it's peaked out, or does it potentially continue to diverge slightly? There's so many macro elements that are happening right now, I mean, gas prices and what's happening in the current environment. We're sitting in a really unknown area going forward. I mean, we're trying to mitigate as much as we can. In regards to labor, there's still a lot of labor shortages around. We're, you know, we're having that, those challenges internally here in all of our departments. We have positions open where we're trying to get, you know, really qualified, good talent into the Company. I think every company's being affected these days in regards to, you know, logistics and trucking labor. That is short as well. I don't have the number in front of me. I think I had it on the last call. There was a substantial number of open positions and drivers. Also now you have gas prices that are anticipated to continue to climb. We're getting into you know somewhat of an interesting area which we're gonna all be impacted by. Yeah. The gap in outbound freight has always been, you know, around 8%-10%. Yeah, who knows, again, with the gas prices and all that, how that's gonna further, you know, perhaps make that gap broader. That's what it's been in the past historically. Okay, got it. Lastly for us on the CycleBar exclusive, is that with all the national CycleBars? I think there's a couple hundred out there. That is, there's a couple hundred currently out there. It's a great partnership for us. A great partnership, a great brand, and we're looking for a great year with them. We got a lot of things planned, a lot of events planned, cross-promotions planned, and it should be exciting. Fantastic. Thanks for taking our questions. Thank you. Thank you. Our next question comes from the line of Anthony Vendetti with Maxim Group. Please proceed with your question. Hi, thanks for taking the question. This is actually Jeremy on the line for Anthony. Just two quick questions. First, regarding store expansion, how much runway do you think you have left for that? You had a really tremendous growth in 2021, and how should we look at the growth and store expansion in 2022? Well, I think there's, you know, the biggest opportunity for us right now, you know, it's twofold. Number one is optimizing existing accounts, so gaining better placements, additional flavors. Cold placements is a big opportunity where we're seeing increased velocities. That's what our teams are really working on, working towards that perfect store. That's really leveraging the DSD network and our team. That is one component, existing same-store sales opportunities. Then number two, when you look at, you know, where our convenience is, the convenience channel, we're sitting roughly around a 44% ACV. Lots of runway left just in the reported stores i n the convenience channel. You're looking at, you know, you know, if you've got almost a 56% opportunity of additional distribution and convenience, which is usually the higher in the energy space, the higher velocity location. Then the expansion in non-reported tracked channels is a great opportunity for us. You know, it's a little bit of a variety of things, same-store sales, optimization, convenience channel, big opportunity, and then some of the opportunities that lie in these untracked channels. Okay, thanks. The Costco contract, I know you said you're in about 500 stores in Costco? We're in 561 stores today, roughly. Right. Okay. Is there plans to grow? Because I know they have about 880 stores nationwide, or warehouses they call them. Yeah, warehouses. Currently, we're in about 561 stores. I'll have to check on the expansion number. Roughly, you know, maybe 561 stores, I think, was the last count. Should be in a Costco near you. If not, ask for it. No, I have seen it. Just, is there any risk to that? I know I shop at Costco a lot. I've seen a lot of times products. They have a, they're there for a little bit, and then they're out, and you don't see them again. Is there a risk that they have certain, you have certain metrics you have to hit? Is there a risk that they could pull that contract? I don't know how it works exactly. If you could give us a little more insight into that. Yeah, that's the beverage business. Pretty much any business in retail. You really have about six months to perform, otherwise you're out. You know, retail shelf is expensive. Not only at Costco, but every single retailer in the country. It's important to continue to drive velocity, drive consumers, drive growth and share in the category. That's just the business we operate in. It's extremely important that we rotate at retail, otherwise you start losing distribution. At this point, we're gaining distribution because of the velocity that's happening in existing accounts. Okay. Thank you for taking the question. Thank you. That is all the time we have for questions. I'd like to hand the call back over to John Fieldly for closing remarks. Thank you. On behalf of the Company, I'd like to thank everyone for their continued interest and support. Our results demonstrate the product is gaining considerable momentum. We're capitalizing on today's health and wellness trends and transformation taking place in the energy category. Our active lifestyle position is a global position with mass appeal. We're building upon our core and leveraging best practices. We have a winning portfolio strategy and team in a rapidly transforming category. We see great opportunities. We believe we'll navigate through the challenges ahead, and we are well positioned to thrive in today's energy drink category. Thank you everyone for your time today and confidence in the team. Stay safe, stay healthy, and lift it. Thank you. Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.