Just good. Okay, let's get rolling. All right, thanks everybody for joining us for the LifeVantage Fireside Chat. Welcome to those of you in the room as well as listening via the webcast. I'm Reed Anderson with ICR, and pleased to have Steve Fife, the CEO, and Carl Aure, the CFO, with us today. So you guys have had a phenomenal year. A lot of things going on. There's so many things to talk about. You just announced last week preliminary second quarter numbers. Amazing. You've got the MindBody product, which launched recently, and I think that's really the key reason why. So I want to spend a lot of time today talking about that, but before we do, let's just kind of level set. I think it'd be important for you to provide some foundational perspective on LifeVantage. Kind of give us a brief overview of LifeVantage, Steve. Explain what it means to be an activation company. Yeah, thanks, Reed, and thanks for having us at the conference. So LifeVantage has been around for about 15 years as a publicly traded company. LFVN is our ticker symbol. Market cap is about $250 million right now, and the company was originally founded on a product called Protandim NRF2. NRF2 is a pathway in our bodies, and our products and the activation of LifeVantage is our products activate at a cellular level. Sorry about that. What our bodies were originally intended to do. NRF2 is a pathway that is responsible for the generation of antioxidants. Antioxidants combat oxidative stress, and as you are likely aware, oxidative stress is tied to a number of diseases, particularly inflammatory type diseases. So with that foundation around Protandim, the company over the last 15 years or so has expanded. We have about 40 individual SKUs going from we have a nootropic drink. We've got a skincare line. We've got a haircare line. About two years ago, we introduced a collagen product that is quite different. It is a liquid collagen that comes in a little shot bottle that activates the production of collagen. Our tagline right now is, you take our products to make something, to make in that case collagen. And Reed, like you said, just in the middle of October, so what, two and a half months ago or so, we introduced what we call our MindBody GLP-1 System. All of our products are science-based. Protandim has over 30 peer-reviewed studies, including one by NIH. It's the only nutraceutical product that has been proven to reduce oxidative stress by 40% in 30 days. So it's a big deal. And similarly, our GLP-1 product, we've done clinical studies on it. We had a human clinical study that was completed at the end of September. Some of the results from that product, our clinical study, was an increase in the production of GLP-1 by 140%, reduction of visceral fat by up to 27%, reduction of overall fat by up to 5%, and all of this with zero loss of muscle. It's a big deal. The way we do that is by activating the GLP-1 hormone. And so let's stay with that thread then again, because that's really, I think, the top of mind for people right now. So most people think of GLP-1, they think of something you inject, more of a medical product. That's not your approach. So for everyone here, explain to them kind of what the product is, how it works in terms of how you take it, and then maybe talk about how that'll get you to how it's differentiated versus what most people might think of when they think of GLP-1. Yeah, yeah. No, we take a totally different approach. And it goes back to that activation. There are a lot of synthetic alternatives out there as it relates to GLP-1 that actually block the natural production in your body. Our product is a two-part system. There's two tablets that you take first thing in the morning before you have any other calories. For those of you who don't know, GLP-1 is a hormone. It's produced down in your lower intestines and your colon by what is referred to as L cells. So our product gets down and amplifies the production of those L cells. The second part of our system is a powder that you take, and it can be all at once in the morning. You can take it throughout the day. It's very high in fiber. It has about 46% of the daily fiber requirements. It actually goes down into your gut microbiome and works with these tablets and amplifies that production of GLP-1. Rather than adding or supplementing into your body with a synthetic GLP-1 itself, our product goes to the core production and amplifies the production of GLP-1 naturally through your body. It's 100% natural. Like I said, it's not an injection. It's not a synthetic. No doctor prescription required. So you launched in mid-October, and it was, I mean, you had high expectations, and I think it's safe to say it exceeded those by quite a bit. So talk about kind of that initial launch, what you saw. And then obviously you kind of ran out of product. You had to restock and scramble. But I mean, you seem like you were back on track pretty quickly. So give us a sense of what that looked like initially and kind of where you are to be able to keep up with that. I like how you said kind of ran out of stock. We did run out of stock. And our most recent big launch of a product was when we launched collagen a couple of years ago. And it was a tremendous success for us. When we were planning for the launch of our GLP-1 product, we had in stock five times the inventory of what we had initially with our collagen. We expected that to last about three or four months. We ran out in 13 days. And so it was an incredible response from our consultants and our customers. I failed to mention, we do sell our products through a group of independent consultants. We're about 75% of our revenue is in the U.S. The rest spread throughout the world in about 20 different countries. But the response, and we launched only in the U.S. So we will be expanding and launching GLP-1 in our international markets starting in March of this year. But so far, we're only in the U.S. The response was tremendous. So we were out of stock by the end of October, the entire month of November. About the middle of December, we started getting product back into stock. And by the end of December, fortunately, we were able to ship through all of our back orders. So we're current now with inventory. And our supply chain partners have been incredible. We've been able to kind of shore up that supply chain. And I feel pretty confident now in terms of not being in that situation. More capacity than you need. That's great. You were talking a little bit about kind of the, you talked about international, the rollout out there. But I think that brings up kind of the next question on this whole product is, how do you think about the longer-term potential? I mean, either frame it in terms of, again, it's a new market for you, whether that's weight management or however you want to frame it. But also, you in the past have given some context relative to what the collagen product looked like or what Protandim looked like. I think that'd be helpful for this audience too, just to share the way you're thinking about it right now. Yeah. You know, we did pre-announce preliminary revenue numbers last week. We're at June 30th year-end. So our second, December is our second quarter. And we reported preliminary revenue of $67.5 million, which is 30% up year -over -year. And also, we increased our revenue guidance. We provide annual guidance. The guidance that we provided at the beginning of our fiscal year was 200-210. And we've increased that now to 235-245. So kind of a 20% year-over-year increase. And I think that that is, when I look ahead for the next few years, should be very sustainable for us. This market is growing at 15%-20%. I think with the product that we've had and the success of this launch, there's no reason for us not to believe that as an early product offering in this space, again, from a natural standpoint, we should command a higher growth rate. The other thing that we're also seeing, and it's very early days, but Reed, you mentioned we have not had a product in the weight loss, weight management space before, and the people that have been previously attracted to LifeVantage have been, I'd say, very focused on healthy aging, and the space associated with weight management is so large, and in the U.S., 80% of the population wants to maintain or lose weight. That's 260 million people, and what we're seeing, and again, early days, but it's opening up a whole new demographic of people because of GLP-1, because of the weight management. People that are signing up either as consultants or as customers of these products are being educated on all of the other products that LifeVantage has. So rather than our existing base perhaps having to make a decision between, do I get on GLP-1 or MindBody, or do I continue on my collagen and Protandim, what's happening is people are being educated on our other products. So we're actually seeing a further increase in the wallet share that people are spending. I expect that's going to continue as more and more people join us or start purchasing our products and become exposed to the other incredible products that we have. And also, when you did the pre-announcement last week, you talked about active account growth for the first time in like five years, which is very unique because, again, the whole direct selling space, it's been a challenge. And so I think that's unique. Let's kind of weave that into the discussion about growth. I mean, how enduring is that? I mean, I forget what the numbers were, maybe share that. But does that feel more enduring now with what you're seeing with this? Is that bringing in that new customer for the first time? That's exactly right. That new green field that we have of customers that are in the weight management space is opening up a door for us. We had our highest enrollment. So new customers or consultants who signed up during the quarter, it was the highest enrollment quarter in five years. And our active accounts, so these are people that purchased a product during the quarter, increased significantly both sequentially and year -over -year. So I think this really is an inflection point. The product kind of speaks for itself. The science behind it, the before and after pictures, it's a very, very demonstrable product. So it is allowing our consultant base really to start posting and casting a much broader net than they have previously because of the demonstrability of the product. And just more doors are being opened to us. Yeah, and one thing I thought of, I meant to ask you earlier, was, it is. It's also this, unlike what most people might think of with the GLP-1. This is really a product meant to be taken over a long period of time. It is. It's really a lifestyle change, right? And it's sort of a subscription recurring type of revenue. That's really what you sell, right? It is. That two-part system, it's packaged in a way for a 30-day consumption. We're pretty conscious about not talking about it as a weight loss product. This is not something that we go into telling people, get on this and in 30 days you'll lose X number of pounds and then you get back to your life. This is really a lifestyle product. Losing weight is a tremendous benefit of this. But I think we're just at the tip of the iceberg as well in terms of understanding scientifically what all of the benefits are of this increased production in GLP, in that hormone. And so I expect, and so far, again, it's only been a couple of months, but we are seeing an increase in the number of consumers that are on subscription for us. We already have a high number. About 70% of our revenue comes from a subscription base, that recurring revenue. But just in the last couple of months, that number has increased. And I think it's because people see that you need to be on this to lose weight more than just a month, but you also are seeing longer-term benefits by being on the product. I'm going to get to Carl soon. I feel like I've been. Good. You got the left chair being neglected over there. I don't want anybody to think of it. So one more for you, Steve. Because I think this is kind of, again, when I think about the transformation you've really happened over the last couple of years, two, three years, one of the key things was the comp system, the compensation system, and it's really in an industry where that is sort of very sacred. In any industry, right, but in yours in particular, you seem to manage through any disruption. We didn't see it really on the outside, and once you kind of got through the integration, it seems to be real key, so tell us more about the changes you made to, I guess, modernize, if you will, the comp system and also really broadening the appeal of it. What have you done? Yeah. Yeah. And I agree, Reed. I think our product, this MindBody product, is amazing. I don't think the success that we've seen this early would have happened had we not made some changes to our compensation plan. And really, coming out of COVID, we saw significant changes in terms of how our industry was selling product or could sell product. And more importantly, how consumers were purchasing product. A lot more was being done through social media and online selling platforms. Our model has been around for 100 years. It's kind of a traditional knee-to-knee, belly-to-belly type of selling model. And I guess I felt like that was changing at a very accelerating pace. And our previous compensation plan would not have been, was not attractive to people that are selling on social media. And those could be affiliates, social sellers, influencers, whatever term you want to use for them. But it was not really a viable compensation plan for those individuals to be attracted to the business. What we did, it took us about a year to redesign the compensation plan because there were a lot of elements that we did want to keep, not just to secure our existing base of consultants, but there are some really good and attractive elements to make it attractive for people that want to do this as a side hustle. The gig economy, right, didn't exist 15 years ago, really, as we know it today. And that's when this compensation plan had been developed. But our model, it focuses primarily on people that want to do this part-time. But if all you're wanting to do is sell product, not build a team of individuals, it was not a good plan. And so we made some changes. At one point early on in the change, I said that I wanted LifeVantage to be referred to as the 'and' company. And by 'and,' I meant people that wanted to build a business and people that wanted to sell product. You didn't have to make a choice or a decision. And that kind of took on a life on its own. But here we are two years later, and we were able to retain most of our existing consulting base. And now are attractive to people that are selling through social media. Just in the last month or so, I've probably met with a half a dozen or 10 or 12 micro-influencers, people that have over 100,000 followers that are now interested in being part of LifeVantage because they see the incredible products that we have, Protandim, again, being our base, but the demonstrability of our collagen product, the demonstrability of our MindBody product. They can leverage their brand, their network of individuals by posting through their channels and make up to 40% of that revenue. Before, that wasn't possible for them. So it's this kind of this combination of having the incredible demonstrable science-based products that we have and having a plan that can appeal to all walks of life. It's really helping us right now. That's great. Carl, let's move on to kind of the financials. I mean, before you had MindBody, numbers really trended nicely over the last year, couple of years. I mean, they were really heading towards kind of your targets. So maybe remind people what your targets are. But how do you think about that now with MindBody? How How does MindBody change that? Because I think that that's something that people ask themselves. And there's probably some interim period here where you're just adjusting to the growth. But I'd be curious your thoughts. Yeah, sure. Profitability has been an area we've really been focused on over the last couple of years, as you mentioned. We're June 30 fiscal year-end. Yeah, our recent earnings were about an 8.5% EBITDA margin, and it was about a 300 basis points improvement over the previous year. So we've been very conscious in improving that profitability level, even though we've been somewhat challenged from the top-line perspective. Now, as we move forward, as we introduce MB to the picture now, I mean, we really believe that that's going to help accelerate our profitability metrics. Where we are, our long-term targets, we want to be to that 12% EBITDA range. I think in the current fiscal year where we've put our guidance out, the implied guidance, we're close to that 10% range. With the introduction here of MB, we're well on our way to getting to that 12% EBITDA level. Again, to feed that growth, you need more promo types of spending too, but that's still factored into that? Yeah, yeah, that's built into that. And so I don't think the primary motivation or the expense is in the comp plan itself. And we really feel the comp plan is really working now, as Steve was talking about. So there's always going to be some promotional spend that happens to support outside of the traditional comp plan through incentive trips and those types of things. One of the areas we might look into investing a little bit more in just general brand awareness around LifeVantage. As Steve mentioned, we're relatively unknown. And so building that up, especially around with the introduction of MB, that could be an area that we look to focus a little bit. But for the most part, I think that promotional spend will normalize. Okay. And last question is capital allocation. Again, you've been very good about that the last couple of years. I mean, dividends, special dividend, buying back stock, stock's done exceptionally. How do you think about that whole equation now? Yeah, no, we have a lot of discussions around capital allocation. It's really important for us, and number one, we definitely want to invest in growth areas. When we talk about all the restructuring we've done over the last two years, we've invested approximately $8 million into all these LV360 initiatives of redeveloping the business. We believe that that's really starting to pay off, so investing internally is definitely the number one goal. But with excess cash, we're balancing that out with the introduction of the dividend. We put a dividend in place about two years ago or a little over two years ago. We continue to increase that, and we're committed to, I think, to the dividend going forward and look to have future increases to that. Then from a share repurchase perspective, we've been very active from a share repurchase front. We've repurchased over the last six years about $40 million worth of shares on the market through this repurchase program, which is about 25% of our outstanding shares. So very aggressive on the share buyback piece. And you also mentioned the special dividend. That's about a year and a half ago, or I guess it was in September of last year. We paid a one-time cash dividend, a special dividend to our shareholders with excess cash. I think all of those are tools that we'll have as we evaluate capital allocation going forward. That's great. Well, we're just about at time. Thank you guys both for joining us. This has been terrific. And we'll wrap there. Thanks, everybody. Awesome. Thanks for being here.