Greetings, and welcome to Where Food Comes From Third Quarter Earnings Conference Call. At this time, all participants are in a listen only mode. A question-and-answer session will follow the formal presentation [Operator Instructions]. As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Jay Pfeiffer, Investor Relations.

Thank you. Good morning. And welcome to the Where Food Comes From 2024 third quarter earnings call. Joining me on the call today are CEO, John Saunders; President, Leann Saunders; and Chief Financial Officer, Danette Henning. During this call, we'll make forward-looking statements based on current expectations, estimates and projections that are subject to risk. Statements about current and future financial performance, growth strategy, customers, business opportunities, market acceptance of our products and services and potential acquisitions are forward-looking statements. Listeners should not place undue reliance on these statements as there are many factors that could cause actual results to differ materially from our forward-looking statements. We encourage you to review our publicly filed documents as well as our news releases and Web site for more information. Today, we'll also discuss adjusted EBITDA, a non-GAAP financial measure provided as a complement to GAAP results. Please refer to today's news release for important disclosures regarding non-GAAP measures. I'll now turn the call over to John Saunders.

Good morning. And thanks for joining the call today. Total revenue in the third quarter increased slightly to $7.1 million from $7 million. That included a 2% increase from verification and certification services to $5.5 million from $5.4 million year-over-year. It also included an increase in product revenue, which rose 9% or about $100,000 to $1.3 million from $1.2 million. Professional services revenue declined to $0.3 million from $0.4 million year-over-year. Gross profit in the third quarter declined slightly to $2.8 million from $2.9 million. SG&A increased 13% year-over-year to $2.2 million from $1.9 million, reflecting higher marketing, personnel and travel costs. As a result of the higher fixed costs and lower operating margins, we reported a 32% decline in net income to $0.5 million or $0.09 per diluted share versus $0.7 million or $0.13 per diluted share last year. Adjusted EBITDA in the third quarter was 29% lower at $0.8 million versus $1.2 million. We continued our share buyback program in the third quarter, repurchasing 66,620 shares of stock at a cost of $734,000. Turning to the nine month results. Total revenue through nine months increased 4% to [$9.1] million from $18.4 million in the same period last year. Revenue mix included verification and certification services up 9% to $15.2 million from $13.9 million. Product revenue is down 8% to $2.9 million from $3.1 million and professional services revenue of $1 million compared to $1.3 million. Gross profit through nine months was $7.8 million, up 3% from $7.5 million a year ago. SG&A expense increased 10% to $6.3 million from $5.7 million due to the aforementioned increases in marketing, personnel and travel costs. Operating income year-to-date declined 18% to $1.5 million from $1.8 million. Net income through nine months decreased 16% to $1.2 million or $0.21 per diluted share…

Well, thank you all again for your time. And we look forward to talking to you in three months. Have a great fall.

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.