Good afternoon, and welcome to the Reed's Second Quarter 2017 Earnings Conference Call for the period ending June 30, 2017. My name is Kevin, and I will be your conference call operator today. Today's call is limited to 1 hour, and we'll start with the prepared remarks with Val Stalowir, Reed's Chief Executive Officer; who will be followed by Dan Miles, Reed's Chief Financial Officer. Following management's remarks, they will take your question. Before we begin today's call, I have a safe harbor statement to read to our listeners. I would like to remind our listeners that during this call, management's remarks may contain forward-looking statements that are subject to risks and uncertainties and that management may make additional forward-looking statements in response to your questions. Additionally, please note non-GAAP financial measures referenced during this call are reconciled to their comparable GAAP financial measures in the press release and the supplemental materials filed with the SEC. Non-GAAP financial information is not meant as a substitute for GAAP results but is included solely for informational and comparative purposes. The company believes that the presentation of non-GAAP financial measures provides useful information to investors regarding the company's financial condition and results of operations. Therefore, the company claims the protection of the safe harbor for forward-looking statements that are contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today due to such risks but not limited to risks relating to demand for the company's products, dependence on third-party manufacturers and distributors, changes in the competitive environment, access to capital and other information detailed from time to time in the company's filings with the United States Securities and Exchange Commission. In addition, any projections as to the company's future performance represent management's estimates as of today, August 14, 2017. Reed's, Inc. assumes no obligation to update these projections in the future as market conditions change. As a reminder, this call is being recorded, Monday, August 14, 2017. I'll now turn the call over to Dan Miles, who will begin with his prepared remarks. Please go ahead.

Thank you, Kevin. Good afternoon, Reed's investors, employees and interested parties. My name is Daniel Miles, the Chief Financial Officer of Reed's, Inc., and I want to thank you for participating in today's call. In conjunction with today's press release, we issued our 10-Q that will have additional details about the quarter. Today marks a milestone in Reed's 30 years of operations. We have a new professional board with a track record of success in building companies. We have a professional CEO, Val Stalowir, who has a track record of building brands and accelerating growth. I want to thanks Chris Reed for his support of bringing our new board, new management team and continued leadership on our product and innovation efforts. We're in the midst of a turnaround that impacts all stages of the business. And although the second quarter was challenging, we believe that the current quarter will begin to deliver improved results. Following my comments, Val will share with you the vision of our company. At the completion of both of our remarks, we'll take your questions. So let's discuss the second quarter financial results. Gross sales revenue of $9.7 million decreased 18% in the first quarter compared to $11.8 million in the prior year quarter. Gross sales were primarily impacted by private label, Kombucha, and candy decreases that were down 83%, 69% and 52%, respectively, and represented $1.2 million of the $2.1 million decrease in gross sales revenue or more than half of the decrease by themselves. Ginger Brews and Virgil's products continue to be the strength of the portfolio as the strength realized gross revenue increases of 2% on a 12-ounce basis albeit on a declining volume basis. All other gross revenue declined, in total, 54%. Net sales of $8.7 million decreased 19% in the second…

Thanks, Dan. I'd like to first take a moment to thank Chris, Dan, Stefan and Neal and the rest of the management team for their warm welcome and their continued passion and belief in the business. I would also like to thank the newly installed board for their guidance and support and for affording me the opportunity to lead this great portfolio of leading beverage brands. I look forward to working closely with the team and board to fully realize the significant untapped potential of the Reed's and Virgil's brands. I've been following the development of Reed's and Virgil's for over a decade, and I'm excited to now be leading the company's turnaround and brand-building efforts and reaccelerating the growth of these iconic brands. Our team is in the process of raising the level of performance in terms of operation, branding, sales and marketing to match the level of quality and excellence that's already inside every bottle of Reed's and Virgil's. Reed's is America's best-selling ginger beer and Virgil's is the leading all-natural craft soda and both are benefiting and will continue to benefit from strong consumer trends. These trends include consumers trading up to premium and craft products, consumers looking for increased functional benefits that ingredients like fresh ginger provide. They are also demanding natural beverages that are free from artificial ingredients, colors and preservatives. Both brands are in the bull's eye of these consumer trends. The rising tide will raise all boats, but we plan on capturing more than our fair share of that growth moving forward through innovation and increased investment in sales, marketing and channel expansion. There are several exciting initiatives that will be launched in the marketplaces in the coming months, and I'll detail some of those after my discussion of the second quarter results.…

Kevin, that's it for the call. I would like to encourage any of the listeners, if they have anything later they would like to share with us directly, please send us an email question and we'll be responding just as quickly as we possibly can this week. If there are no questions, we'll go from there.

So ladies and gentlemen, that does conclude your conference call for today. We thank you for participating, and you may now disconnect.