Good day, everyone, and welcome to today's Leatt Corporation Second Quarter 2025 Results Conference call. At this time, all participants are in a listen-only mode. Later, you will have an opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing *1 on your telephone keypad. Please note this call is being recorded and that I will be standing by should you need any assistance. It is now my pleasure to turn today's program over to Michael Mason. Thanks, Chelsea. Good morning and welcome to the Leatt Corporation Investor Conference call to discuss the financial results for the second quarter 2025. The company issued a press release today, Thursday, August 7th, 2025, at 8:00 A.M. Eastern and filed its report with the SEC. The press release is posted on Leatt's website at leatt-corp.com. This call is being broadcast live and may be accessed on the company's website. An audio replay of this call will be available for seven days and may be accessed from North America by calling 1-844-512-2921 or 412-317-6671 for international callers. The replay PIN number is 11159724. A replay of the webcast will be available immediately following this call and will continue for seven days. Certain statements in this conference call may constitute forward-looking statements. Actual results could differ materially from those discussed in this call. Leatt Corporation does not undertake any obligation to update such statements made in this call. Please refer to the complete cautionary statement regarding forward-looking statements in today's press release dated August 7, 2025. The company will make a presentation on the quarterly results and then open the call to questions. I would now like to turn the call over to Mr. Sean MacDonald, CEO of Leatt Corporation. Good afternoon to you in Cape Town, Sean. Good morning, Mike, and thank you. Thank you all for joining us today. The second quarter was a fantastic quarter for Leatt, with strong revenue growth and profitability. Total global revenues increased by $6.1 million to $16.18 million, a 61% increase over the second quarter of 2024. This was our fourth consecutive quarter of growth and third consecutive quarter of double-digit growth since the post-COVID industry shift, causing industry-wide revenue contraction. In the second quarter of 2025, we achieved double-digit revenue growth in all of our major product categories, as we continue to develop cutting-edge products to reach a wider, wider community and invest in a pipeline of innovative products. Body armor revenues, including upper body armor, limb protection, and footwear, increased by 48%. Helmets revenues increased by 117%. Other product parts and accessories sales, including apparel items, goggles, and components, increased by 65%, and neck braces sales increased by 19% compared to the second quarter of 2024. Gross profit as a percentage of sales continued to improve, increasing from 39% in the second quarter of 2024 to 43% in the same 2025 quarter, as domestic trading conditions continue to improve despite some tariff uncertainty. Sales to our international distributors increased by 74% during the quarter, as sales through ordering packings on demand continued to improve. Consumer direct sales, a channel that remains an encouraging growth engine for us, increased by 35% compared to the second quarter of 2024. Dealer direct, micro, and MTB sales in the U.S. were another highlight of the quarter. Returning to growth, global dealer sales increasing by 45% in the second quarter of 2025. Although U.S. motor and MTB brick-and-mortar dealers continue to manage some areas of elevated inventory and industry turmoil that is stabilizing, our dealer outreach and selling capabilities are gaining fantastic momentum, and participation in demand for our products remains strong. Our profitability and liquidity continue to improve. Net income for the 2025 second quarter was $1.14 million, a 208% increase when compared to the same 2024 quarter. Liquidity continues to improve. We expect royalty capital investments to increase in the coming months, as ordering packings at the consumer, dealer, and distributor levels continue to show growth patterns. We are confident that we have sufficient liquidity to see almost growth. On a year-to-go basis, for the first six months of 2025, our revenue increased by $10.85 million, or 52%, to $31.54 million, and net income increased by $4.13 million, or 221%, to $2.26 million. Cash increased by $3.36 million to $15.73 million for the first six months of the year, with cash flows provided by operations of $4.11 million. Now I'll turn to more details on sales of our product categories for the second quarter of 2025. Sales of our flagship neck braces were $700,000 during the 2025 second quarter, a 19% increase over the same 2024 period, primarily due to a 35% increase in the volume of neck braces sold in the 2025 quarter. Neck braces represented 5% of our total revenues for the quarter. Our body armor products are comprised of chest protectors, full outer body protectors, knee braces, knee and elbow guards, off-road motorcycle boots, and mountain biking shoes. Body armor revenues during the 2025 second quarter were $8.29 million, a 48% increase over the same 2024 quarter. This increase was primarily attributable to a 35% increase in revenues in the sale of upper body and limb protection and a 108% increase in the sale of footwear, comprising motorcycle boots and mountain biking shoes, sold during the 2025 second quarter. Body armor products represented 51% of revenues for the quarter. Helmet sales in the 2025 second quarter were $2.11 million, a 117% increase primarily attributable to a 51% increase in the sale of motor helmets over the same 2024 quarter and a 275% increase in the volume of MTB helmets sold in the 2025 second quarter. Helmet revenues represented 19% of total revenues during the quarter. Our product parts and accessories category is comprised of goggles, hydration bags, and apparel items, including jerseys, pants, shorts, and jackets, as well as bicycle components. Revenues during the 2025 second quarter were $4 million, a 65% increase primarily attributable to a 101% increase in the sale of MTB, LED, and motor apparel over the 2024 second quarter. Other product parts and accessories revenues represented 25% of our total revenues for the quarter. We also see that Leatt was once again recognized at Eurobike, the world's leading trade fair for cycling and e-mobility, winning awards for our ability to consistently develop technical innovations in functional rider protection features. Our 5.0 Gravity helmets won the gold award for technical performance, and our 6.0 HydraDri jackets won in the performance clothing category. Now I'll turn to our financial results in a bit more detail. Total revenues for the second quarter of 2025 were $16.18 million, up by 61% compared to $10 million for the second quarter of 2024. This increase in worldwide revenues is attributable to a $2.7 million increase in body armor sales, a $1.68 million increase in helmet sales, a $1.6 million increase in other product parts and accessories sales, and a 110% increase in net price sales. Gross profit for the second quarter was $6.89 million, up by 76% compared to $3.92 million in the second quarter of 2024. Net income for the second quarter of 2025 was $1.14 million, or $0.18 per basic and $0.18 per diluted share, up by 208% as compared to a net loss of $1.06 million, or $0.17 per basic and $0.16 per diluted share for the second quarter of 2024. On a year-to-date basis, net income for the first six months of 2025 was $2.26 million, or $0.36 per basic and $0.35 per diluted share, up 221% as compared to a net loss of $1.87 million, or $0.30 per basic and $0.29 per diluted share for the same period in 2024. Leatt continues to lead its royalty capital unit from cash on hand and incrementally generated cash flow from operations. As of June 2025, the company had cash and cash equivalents of $15.73 million at a current ratio of 7.41. Looking forward, our entire team is energized by the increasingly strong demand for Leatt products around the world, our consistent revenue growth, and the tremendous progress that we are making despite some challenging industry conditions. The strong revenue growth has been fueled by international sell-through and restocking dynamics and domestic sales and outreach programs that have gained fantastic momentum as we continue to invest in our team, our selling capabilities, and our brand. We expect this trend to continue as reordering patterns continue to improve and filter through to our revenues. Although there are still some challenging geopolitical and economic turbulence globally, particularly in the U.S., where tariffs could impact inflation, uncertainty, and demand, inventory continues to be digested by domestic sales, outreach, and capabilities are gaining traction and participation remains strong. We continue to manage our cost of sales actively and are working closely with suppliers and customers to mitigate tariff risks and costs wherever possible. We strongly believe that our strategy of investing in talent, innovative product development, and Leatt as a global consumer-facing brand that appeals to a wide community of riders around the world will continue to fuel our growth moving forward. We remain passionate about our future with a strong portfolio of innovative products in the global market and in the pipeline, and a multi-channel sales organization that is growing and developing. We remain confident that we are well-positioned for future growth and sustained shareholder value. As always, we'd like to thank our entire Leatt family, our dedicated employees, business partners, and team riders for their continued strong support. With that, I'd like to turn the call over for any questions. Operator? Thank you. At this time, if you would like to ask a question, please press star, one on your telephone keypad. You may remove yourself from the queue at any time by pressing star, two. Once again, that is star, one to ask a question. Our first question will come from Christopher Muller, private investor. Hey, Sean. I hope you're doing well today. Hey, Chris. Nice to hear from you. Good to speak with you. Maybe three or four questions today. First, could you maybe add some color around the exceptionally strong U.S. sales this quarter? It looks like nearly 50% growth, both sequentially and year-over-year, and similar across both the consumer direct and dealer channels. I'm trying to understand how much of this could be attributed to any one-time factors, maybe related to the timing of tariffs and those associated price increases versus this being more of an inflection point toward sustainable growth after all the personnel and operational changes you've made there. Yeah, I think this is primarily due to the operational and personnel changes that we've made there. I mean, we have new sales leadership in place on the motor side of the business. We've had quite a lot of changes in terms of the programs that they're offering to dealers. Our relationship with dealers has certainly strengthened a lot over the last five to six months. On the MTB side, we've been working really hard to develop our distribution capabilities. We have a range of various different rep groups that are now involved in the business that are very experienced and are considered to be the premium reps in the U.S. MTB industry. They're all very charged up and very passionate about where Leatt can go to. There's a lot of opportunity on the mountain biking side of the business. As I said, on moto, a whole new sales team in terms of management is in place with new goals, new strategies, new programs that are going out to the dealers and are certainly opening new doors. Of course, we have the ADV program that has been absolutely fantastic. Our ADV products are doing extremely well around the world, in Europe, South America, and very strong in the U.S. market. We certainly don't feel that a large percentage of our growth is coming from one-time items or tariff increases. It's a lot of hard work that we've been doing in terms of programs, structuring, and product development and brand building, and talent management over the last several months. That's great to hear. It's great to see that the ADV line is doing so well. Is it possible to maybe roughly quantify ADV sales as a percentage of Q2 revenue? Currently, ADV sales are 15%- 20% of global revenues, obviously, depending on the quarter and the period. We do expect that to increase. It's proving to be a lot stronger than what we had expected. The Leatt brand, our ADV products, and our distribution that we already have in place is really doing a lot better than what we had thought. It's been very well accepted by the market. We've had fantastic reviews on many of the different products that we put out there. These products are attractive at the distributor, dealer, and end consumer level. That's great. It looks like you're also continuing the partnership with Surefoot this summer for those bike park pop-up stores. I assume this must be going well since I think it's maybe the 10th year you've been doing this. I'm only aware of you doing it in a few locations. I'm wondering whether the opportunity for that pop-up store model is really that limited or maybe what metrics you'd look to when considering to expand that channel. Absolutely. I think there's a lot of opportunities in terms of partnering with various different shops on the slopes. That's not only in the U.S. and Canada, but it's also Europe. It certainly works for us in terms of being a great partnership to display Leatt as a brand and all of our products in a single concept pop-up store. There are big brand-building opportunities there. Of course, there's the selling opportunity as well, but it really functions very well as a touch point for consumers to experience Leatt products firsthand. Many consumers are enthusiastic about the size of the range and how far we've come in a relatively short amount of time with some of those products. Certainly, lots of opportunities. These are really just the first steps that you're seeing in terms of Surefoot kind of partnerships. Understood. Lastly for me, I saw you recently hired two new marketing managers in Asia, both with some lengthy motor industry experience. Are these hires tied to any new distributor relationships or the opening of new sales channels there? Is this just broadly a greater brand investment in the region? It is really our sales and brand management model that we've implemented really around the world has worked very, very well for us in terms of growing sales and improving market penetration and making contact with various distributors in the region. We took a decision in terms of Asia that focus on Asia was needed. It's a very different kind of market to some of the other regions around the world, and it needed specialist skill. That's the reason why we brought on a Sales and Brand Manager and a Marketing Manager that will focus solely on Asia, building our distribution, and helping us with content that is appropriate in terms of Asian engagement and ultimately contributing to revenue growth in the area. We do see Asia as a potential growth area for us, but it is specialized and it does need specialist skill. Great. That was helpful as always. Thanks for the time, Sean. Chat soon. Thanks, Chris. Talk to you. Cheers. Thank you. Our next question will come from Olivier Colombo, private investor. Good afternoon, Sean. Hi, Olivier. Congratulations on a very impressive Q2. It's nice to see growth in the U.S. again. Congratulations to you and the whole team. I have three questions for you. Yes. My first question is regarding tariffs. Some auto brands have given their gross impact for sales for this year. How much would you think that would represent for you? I think in the past, we've tried to manage the tariff situation carefully and acutely. Of course, we've been discussing the situation thoroughly with our suppliers and watching the market really carefully in terms of what's been happening in terms of retail selling prices. I think the biggest impact is, of course, in terms of uncertainty that it creates and the potential impact on demand. Should we have inflationary pressures? Of course, many of our competitors, they are importing from Asia, so they're exposed to tariffs just like we are. It's difficult to quantify exactly what the impact will be. It's also difficult to know exactly where our tariffs are on the table. I certainly think that we might have a bit of a contraction and sales might be a little bit lower than what we had kind of forecasted in the U.S. If we do see big increases in tariffs with the tariff schedule on very high double-digit numbers, we might have some contraction. I don't feel that it's going to be significant unless there are massive tariffs like the tariffs that were originally proposed. If the tariff schedule is close to where they currently are, I think the market will adjust to that. Some of the price increases will obviously be passed on to consumers, and we'll manage some of it through the supply chain. Olivier, I don't feel that it's going to be a significant impact on our numbers. It is difficult to quantify exactly how much because, of course, there's a lot of uncertainty around where the tariffs are going to eventually settle. That's perfect. Thank you very much. I really appreciate it. My last question would be regarding Eurobike. It seemed that you had a very big event there. Can you give us a quick recap of the meetings that you have with dealers and distributors, and what were the positives on your side and eventually the concerns on theirs? Absolutely. No, it was a fantastic show. I think the really good news that's coming through from the distributors is that they are starting to see an uptick in their stock requirements, which is reflected in the ordering patterns that we've seen. That's been going on for the last several quarters, and it's filtering through to our revenue. We see it on our side. Many of our distributors and some of the new distributors that we brought on are starting to gain really good market traction for Leatt as a brand. Some of the overstocking that's existed in the industry over the last few years post-COVID is starting to improve. That's industry-wide. A lot of competitive stock that's been out there has been blocking repurchasing of Leatt stock because of cash constraints at the dealer level. We start to see that improving now. Dealers are starting to be less conservative regarding what they are able to invest in. That means that distributors are also less conservative, which is why we've started to see this filtering through to our numbers. I do still feel that there's some uncertainty out there. If I could wave a magic wand and things were a lot more certain in terms of the tariffs and some of the geopolitical risks in the Middle East and in Europe, if some of those things were trickled down. I think that the sentiment would be far better than what it currently is. There are still some concerns around where all of that is going to settle. The good news is that the market relates products with us. The new distributors that we brought on are doing exceptionally well with Leatt as a brand. Pleasantly surprised regarding consumer and dealer reaction to stock in Leatt. Participation is still strong. As I said, in terms of the concerns, a bit of geopolitical risk. There are still some pockets of overstock, particularly on the bicycle side of things. There are still some bike brands that we've seen have been in trouble. There's a bit of bike stock that's still out there that hasn't disappeared. It's still being digested. The sentiment is positive. Things are certainly moving in the right direction, and the bike industry is certainly getting a lot stronger than it was when I was at Eurobike last year. That's perfect. Thank you very much. I really appreciate it. I wish you and the team an excellent second half of the year. Thank you very much, Sean. Sure. Thank you, Olivier. Talk soon. Thank you. At this time, there are no further questions, so I'd like to turn the call back over to Sean MacDonald for any additional or closing remarks. Thank you all for joining us today. We look forward to our next call to review the results of the 2025 third quarter. Thank you, ladies and gentlemen. This concludes today's presentation, and we appreciate your participation. You may disconnect at any time.