Welcome to the Natural Health Trends Corp. Second Quarter 2020 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kim Orlando. Please go ahead.

Thank you and welcome to Natural Health Trends second quarter 2020 earnings conference call. During today's call, there may be statements made relating to the future results of the company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission. It should also be noted that today's call will be webcast live and can be found on the Investors section of the company's website at naturalhealthtrendscorp.com. Instructions can be found for accessing the archived version of the conference call in today's financial results press release, which was issued at approximately 9:00 A.M. Eastern Time. At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.

Thank you, Kim. And thanks to everyone for joining us this morning to discuss our second quarter 2020 financial results. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer. The second quarter marked a continuation of the challenging macroeconomic climate we experienced during the first quarter of 2020 as the COVID-19 pandemic persisted into the summer months. That said, we were very pleased with the stability and resilience of our field leadership, which helped us generate a 10% increase in total revenue over the prior quarter to $16.4 million. I'd like to sincerely thank our leaders, members and preferred customers for their support of NAC Global through this unprecedented time. COVID-19 has shown us that the world is truly interconnected. Despite the immense challenges this pandemic has presented on a global scale, we have enjoyed positively contributing our wealth of knowledge on health and wellness related products with our loyal consumer base. In addition, our aggressive cost reduction measures enabled us to return to profitability during the second quarter, with positive operating income of $183,000 compared to an operating loss of $1.4 million in the first quarter of 2020. As previously announced, we put a program in place in the second half of 2019 to position us for increased operating efficiencies in several areas, including reduced headcount and promotional spending. Through this program, we made significant progress in reducing our SG&A expenses during the second quarter through reductions of nearly 20% versus the first quarter of 2020 and more than one-third versus the prior year period. Since we last spoke in May, our main markets have begun to slowly resume economic activity, though various forms of government mandated travel restrictions have remained in place. While there have been some relaxation in personal mobility, company-sponsored in-person…

Thank you, Chris. Total revenue for the second quarter was $16.4 million, a decrease of 30% compared to $23.4 million in the second quarter of 2019. The year-over-year decline was primarily due to the challenging and uncertain operating environment arising from the COVID-19 pandemic and the resulting effect on our members' abilities to hold meetings and events, which negatively impacted our performance. While we anticipate the effects from COVID-19 will continue to adversely impact our results in the near term, we are encouraged by recent trends in many cities in our key market. Greater China have started the process of opening back up, including lessening restrictions on travel and small gatherings. Our active member base decreased 4% to 54,400 at June 30 from 56,500 at March 31 and was down 31% from 78,300 at June 30 of last year. Turning to our second quarter cost and operating expenses. Gross profit margin of 70.6% declined from 76.9% in the second quarter of last year, due primarily to additional logistics costs and product promotions put into place to help alleviate the impact of the pandemic and its restrictions on our business. Commission's expense as a percent of total revenue declined to 43.4% from 48.7% in the prior year quarter as a result of our proactive efforts to reduce incentive costs. Selling, general and administrative expenses decreased 35% to $4.3 million from $6.6 million a year ago, reflecting higher proactive cost reduction measures that reduced employee-related costs, professional fees and event spending. The highly variable nature of our cost structure affords us the flexibility to continue adapting expenses in line with order volume as evidenced by the 37% year-over-year decline in our total operating expenses for the second quarter. As a result of these actions, despite the challenging operating environment that has persisted…