Hey, good afternoon, everyone. Welcome to Sidoti's May Microcap Conference. My name is Daniel Harriman. I'm an analyst here at Sidoti. This afternoon, we're gonna get to hear from LifeVantage, ticker LFVN. We're gonna hear from the company's president and CEO, Steve Fife, as well as the company's CFO, Carl Aure. We're gonna give them about 20 minutes to go through their presentation, after which time I'm gonna open up the floor for Q&A. If you do have any questions during the presentation, please feel free to type it into the Q&A box, and time permitting, we'll get to as many as we can. Please welcome me in, please join me in welcoming LifeVantage to the conference. And with that, Steve, I'll hand it over to you. Awesome. Thank you, Daniel, and thank all of you for joining us today. We're excited to spend a few minutes with you talking about LifeVantage and the journey that we're on right now. LifeVantage is a small cap, micro cap company. We've got about $83 million of market cap right now, doing about $210 million in revenue. And if you haven't heard of us, we are a wellness company, and we differentiate ourselves from other companies in that we actually, our products activate our body's natural ability to produce healthy results, and behave in a way that they were originally intended to behave. When we use that word activation, we use natural compounds and ingredients to produce those results, but we also activate other aspects of our life, you know, from a financial standpoint, social and community wellness, that is all captured as part of this activation story. Our products are unique, science-backed. Our flagship product is a product that we refer to as Protandim Nrf2. It is a product that combats the effects of oxidative stress. Oxidative stress is linked, and then I believe, the number one cause of aging, and it's a very scientifically proven product. In fact, we have over 30 research papers and peer reviews. It's a product that's been proven to reduce oxidative stress by 40% in 30 days, and from that original product, we've expanded and created an entire product line of different types of activation products, both internal consumables to skincare lines, a haircare system, and most recently, a collagen product. We categorize those products under three broad categories of optimizing health, achieving more, and looking radiant. Our products, especially our Nrf2 product and technology, is patented, and we have combined that knowledge, and science not just in our internal tablets that we manufacture and sell, but as I mentioned, also incorporated into a skincare line. Most recently, we introduced a liquid collagen product that where we've had tremendous success. It's a unique formula that takes into account a proprietary blend with, including Ruby Quinoa, that not only helps supplement collagen production, but also maintain and produce collagen within the body. We've also found that when taking our liquid collagen in connection with our Protandim Nrf2, there is a synergistic benefit that enhances the performance of both of those products versus when they're taken individually. About 70% of our revenue is based on a subscription model. Virtually all of our products are tied to a 30-day consumption, so they lend themselves very well to that subscription model. We do business in over 20 countries internationally. The U.S. is our biggest market. North America represents about 70%-75% of our total revenue. Japan, sorry, is our number two market, and these are, these are the markets based on the Direct Selling Association's view of the largest markets globally in the world for direct selling companies. We operate currently in six of the 10 largest markets. I mentioned we're in over 20 in total, and we're looking over this next, I guess next year to continue our expansion geographically into a couple of these countries. The industry itself, if you're not familiar with it, is an industry that benefited, you know, during the COVID times. There's been a little bit of a pullback, but it's still a very robust industry that we sell our products through. I wanna take just a couple of minutes and talk about what we are doing to accelerate in growth. And the first step, I've been the CEO for about three years now. I've been with the company for seven years. I started as the CFO, and about three years ago, the board asked if I'd step in to be the CEO, and it was really the start of the transformation. You can see from this chart and this timeline that not only did we bring in some additional and new talent to the company from an executive standpoint, we've also launched a number of products that have been very, again, true to our science-based activation story. You know, we've also launched our products in new countries, and we've also gone through a fairly major transformation from a business standpoint that I'll talk about starting in the next slide. But we've also initiated and provided, you know, from a capital allocation standpoint, a very strong program around it, couples both an active share repurchase plan, as well as a dividend structure to provide a return, incremental return to our shareholders. I mentioned a transformational plan. We refer to it as LV360, and it was really a comprehensive view of our businesses, and we looked at six different fundamental areas of our business, and candidly, of any business, to see what we needed to do to enhance and to accelerate growth for the company. We sell our products, as I mentioned, through a direct selling model, so we have a number of consumers of our products, but our sales force is primarily independent consultants, who both consume our product, but also share those products with, you know, people that they come in contact with. So, you know, our growth really comes by growing our customer base and growing our consultant base. LV360 was really around focusing on those two demographics or groups. The first thing that we did really was to look at our product strategy and product portfolio. I've mentioned already, we launched a liquid collagen product during this time period, and what is unique around that product is the demonstrability of it. People see and feel the difference of our liquid collagen, and it's a product that is very saleable via social channels, if you will, because of that demonstrability. We've seen success in that. We've also launched a couple of other products that, again, kind of round out or continue to support our overall activation story. Our product strategy, product definition, was critical to us, that we nail that right, and then build around that product story. We looked at our social platform, our social presence, and candidly, two to three years ago, we were virtually non-existent on social platforms. Today, we are quite active, especially on Facebook, Instagram, and LinkedIn. As a company, we are committed to being present and active and getting the brand awareness for both LifeVantage as well as our products, and then our independent consultants tend to take that content and utilize it in their business messaging to their customer base. And so there's been a significant increase in our social presence and activity as a result of the LV360. Probably at the root of it was we evaluated the compensation plan, how we pay our consultants. About a year ago, in the U.S., Japan, Australia, and New Zealand, our four biggest markets, we launched what we refer to as our Evolve Compensation Plan, and it's really taking the best of our previous plan and enhancing it with the ability for individuals, be it affiliates, social sellers, influencers, but people that are more interested in selling product rather than building organizations or teams, but it created an avenue for those social sellers. I'll just refer to them as being able to make a reasonable supplemental income if they work and put in their efforts, but a return for their efforts by simply selling our products. We also offer the ability for more entrepreneurial-minded and business-building individuals to build organizations as well. I believe we have a best-in-class compensation plan for our consultants in this industry, and it combines both of those characteristics. We launched that about a year ago in our largest countries. We just launched a month ago in Canada, Mexico, and Europe, and we still have our third phases in some of our countries in Southeast Asia that will be coming within a year. The consumer experience, a significant increase in focus on our end customers. You know, I talked a little bit about the social presence, but also putting in place a rewards program for our loyal customers, something that we had not had before, but we're seeing success by both attracting people, but then rewarding them for being loyal in their monthly subscription orders with LifeVantage. Also enhanced our digital capabilities. We still have a ways to go here, but making sure that our customers and consultants have a positive experience with our digital tools and our app is critical to our long-term growth and success. And last but not least, our LifeVantage community. One of the powers of our company is the attraction that we have by bringing together like-minded people who share the same values, beliefs, passion for health and wellness, and doing that in a way where we can, you know, collaborate together. We also have a 501(c)(3) organization, where at each of our events, we have what we refer to as our legacy program, where we actually contribute and give back to the area that we're holding our events. So in so doing, making not, you know, every place we go better than it was before we got there. With that quick overview, I'm gonna turn it over to Carl and have him walk through some of our financials. Thanks, Steve. Yeah, I thought it might—we'd like to start off and just review our, our business model from a financial perspective. We have a highly efficient business model. As Steve mentioned earlier, you know, essentially, 70% of our revenue comes from a subscription-based business model. And historically, we've had very high gross margins associated with that. Historically, in some of the previous years, we've been north of about 80% range. The last couple of years, we have, just due to some changes in, in revenue mix, as well as just rising costs that we've seen, we've dipped slightly below that level, but we've identified some areas in our supply chain that we really believe that long term, that we're gonna be able to get that, that margin target back above that, that 80% level. From a, t he largest expense that we have on our P&L is just the commissions and incentive line that's primarily variable, and that represents the compensation that we pay to our third-party consultants. But from an EBITDA perspective, historically, again, we've been up above that 10% range. In FY 2022 and 2023, we definitely dipped below that level, but where we are year- to- date, FY 2024, we're at that 8% level, and we believe that we're trending higher and are well on track to get back above that 10% EBITDA target range. From a revenue perspective, we do have two general reporting regions. Steve referred to this earlier, but primarily, we have North America and the Europe regions as well. But from an overall revenue perspective, we are a June 30 fiscal year- end. In our June 30 fiscal year, and that ended in June of last year, we had some moderate growth. We were up just under 3.5% and about 7% on a constant currency basis. This year, we're anticipating we're gonna be down slightly, but still in that, you know, around that $205 million range from a total revenue perspective. On the breakout by geography, we are in 20 countries. The U.S. represents our largest market. So out of that North America region, the U.S. represents about 70% of that total there. And then on the rest of the world, Japan is our second largest market. Japan represents about 15%, of the, of that international footprint. Going forward, let's look at our, our balance sheet. Historically, we've had a very strong balance sheet. We've, you know, we generate positive free cash flow. We've, we've maintained very healthy cash balances. From an equity perspective, we have very clean equity, only one class of shares outstanding. From a, you know, we've never had or historically have not carried any debt. From a dividend perspective, we just recently announced an increase in our quarterly dividend. It's up to $0.04 per share. It's just under a 2.5% yield. We implemented that dividend about two years ago and have been consistent with that and have raised that the last couple of years. We also paid a special dividend in September 2023. We had backed off a little bit on our share repurchase strategy, but we decided to pay out a special dividend of $0.40 per share in September 2023, which was about $5 million in the aggregate. Just moving on. Overall, from a capital allocation perspective, we have developed a very balanced approach to capital allocation. Internally, we have invested a lot over the last two years just in investments in internal growth. We have invested over $6 million in this LV360 initiative. But we've also had the balance between the dividends that I talked about with the special dividend, as well as we've been very active on a share repurchase front. So far this year- to- date, we've repurchased about 4.6 million total shares under our share repurchase authorization. And in total, we have a $60 million total authorization that we entered into back in fiscal 2018, and cumulatively to date, we've repurchased just under 38 million in total under that authorization, and so been very active from a share repurchase perspective. Steve, turn it back to you to close us out. Yeah. Thanks, Carl. Yeah, so, you know, I hope you sense the excitement that we have about where we are, and, you know, we think we're very well-positioned, both from a product standpoint and what consumers are looking for today, the ability to purchase those products. We think we have significant growth opportunities, both in the U.S., but especially internationally. We continue to be driven by a core belief in our science around activation, and we have the strength of a subscription-based model. And so with the loyal customers we have, we have a very strong foundational base that we can grow off of, and we'll continue to focus on activation as our core differentiator. So with that, we'll turn it over to Daniel for some Q&A. Hey, Carl, Steve, thank you both so much. As a reminder, if you do have any questions, please feel free to type them into the Q&A box, and I'll get to as many as we can. Guys, just kind of to kick it off, I wanted to touch on LV360, and this kind of goes in line with one of the questions in the queue. But I think you've got 95% of your revenue on this new plan now, and obviously, what you've done the last couple of years has really paid off thus far and in 2024. Can you talk a little bit more to us about, you know, how pleased you are with this progression, and what you see as the major benefits moving forward? Because obviously, the work that you've put in now should be expected to really pay off in the coming years. And one of the questions was actually, you know, in baseball terms, when it comes to LV360, what inning are you in? Yeah, great question, and I'll take the first stab at that. You know, we. Yeah, LV360 is, as I mentioned, you know, at the core, was evaluating how we compensate our consultants. And like any incentive plan, you know, as an employee, employees and salespeople, they figure out how to optimize plans. And assuming those plans are designed appropriately, you're going to get the- well, you're gonna get the behaviors that the plans motivate, and hopefully those plans are designed appropriately. And when we looked at this with, you know, our plan was 15 years old. The world has changed a lot in 15 years, both from a consumer standpoint and how consumers buy and from a business standpoint. And the evolution of, you know, the gig economy and alternative sources of income and, you know, side hustles, whatever you want to refer to it, wasn't nearly as prevalent 15 years ago as it is today. And those, you know, that realization is what really triggered LV360. And it took us over a year of we brought in outside individuals to help consult with us about a year to design this new compensation plan. And the beauty of our plan is, again, it can provide an attractive income stream if you want to sell product via social or however you want to sell it, or if you want to build a business of an organization of people who sell products. We launched that a year ago, as I mentioned, in the U.S. and several other countries. And it takes time for people to retool and learn a new compensation plan, learn how to optimize it. And I think that the U.S. and in Japan, we're starting to see now the benefits and the merits of this compensation plan in full force. You know, wave one, and probably the biggest wave, has now been under this plan for a year. The second wave is Canada, Mexico, and Europe, and I was fortunate to be present in both Canada and Mexico when we launched this. And the excitement and the enthusiasm about this plan is, it's palpable. You know, people are super excited about it. So in the baseball vernacular, I think maybe we've got a couple of games going on right now. Maybe it's spring training, and two squads are playing at the same time, and one of them is, you know, maybe in the fifth inning, and one is in the first or second inning. And we still have, you know, our about 5% of our business that is still warming up, if you will. But we're still early days on this, but you know, a year in, there's been a tremendous adoption, excitement. And I think one of the indicators for me is we are attracting new people to the business because of this compensation plan. They're seeing the merits, and people are coming to join LifeVantage because of the optionality that they have to earn a couple of different ways under our plan. That's perfect. Thank you so much, Steve. We've got quite a few questions, actually, that have come in, so I'm gonna combine a few, if that's okay. The audience has done their homework 'cause they're referencing your previous earnings calls. But, in your recent earnings release, you talked about productivity gains helping you drive operating margins as you mitigated top-line headwinds. Can you expand on that just a little bit more? And then how much more can you improve your productivity? And then can you talk a little bit about the Philippines? 'Cause I know that you referenced that on the last conference call as being a soft market consistent with one of your direct selling peers. Yeah. Carl, do you wanna take the profitability one? Sure. Yeah. Yeah, sure. On the profitability side, yeah, especially here in Q3, we did have a much stronger earnings in comparison to previous quarters. We were above 10% from an EBITDA perspective, and we were able to. I think our cost structure, we're able to reduce some in some certain areas. And I think looking forward, we also have the opportunity to find some additional productivity from an expense side. We've got some expenses in the year-to-date numbers that'll be non-recurring in future periods. Couple things we've mentioned, we had a sponsorship agreement that's expired, as well as the heavy investment that we made in LV360. You know, Steve mentioned there, 95% of that is behind us. There still is some more work to do there as we roll out in the rest of the Asian markets, but I think there's definitely room for continued productivity as we move this forward. I'd say our consultant productivity, you know, what we've been really successful in doing is creating not just a story, but this backed by science around the synergistic benefits of taking our products together. I mentioned, I think earlier, Protandim Nrf2 and Collagen. Nrf2 sells for about $50. Collagen sells for about $150. We've done research now, and we share that obviously with our field, our consultant field, that by taking those two products together, there is enhanced benefits than you get by just taking them separately. And so now all of a sudden, those consumers are spending $200, rather than making a choice between one or the two of those products. So we have just over 30 individual product SKUs, but over the last couple of years, we've been successful in combining those individuals into what we refer to as stacks, or a bundle of two or three or four products, and creating a story which has increased our average revenue per account, or ARPA, that we call it. And creating, again, the science and the story about the benefits of not just taking a single product, but products grouped together, and I see us continuing to do that. I believe that there is a cap at some level in terms of wallet share for our consumers, but we've proven that each year we have been able to increase that by putting together and combining products, introducing new products, and combining them with existing products. Then your second question around the Philippines, yeah, the Philippines has been a tough market for it. We launched it a few years ago. We had tremendous success early on, and then, you know, we unfortunately lost a couple of our key leaders. The market has not just stalled, but stepped back a little bit. It's one of our primary focuses. We've brought in some new people from a corporate standpoint to oversee the market and the region, and we're starting to see stabilization there. We're also seeing a new group of individuals that has joined the company that has a presence in the Philippines. And so I'm cautiously optimistic that we've, you know, through our efforts the last six to nine months, kind of are in a position where we're starting to see some positive rebounding there. But it was down significantly year-over-year. And is a market that's critical to us. It's a market that does very well in this space and a place there where we should have more success than we're having right now. Thank you. We've run up on the time, but Steve and Carl, on behalf of Sidoti, thank you so much for sharing your story. For those of you in the audience, thank you for your participation. I'm sorry that we weren't able to get into all the Q&A. But Steve and Carl, again, thank you all so much for taking the time to give us this overview and answer questions. And we thank you for coming to the conference, and hope everybody has a wonderful rest of their day. Great. Thank you. Thanks, Daniel. Thanks, everyone. Bye.