Good day, and welcome to the 22nd Century Second Quarter 2019 Business Update Conference Call. Today's conference is being recorded.At this time, I would like to turn the conference over to Mr. Thomas James. Please go ahead, sir.

Thank you very much. My name is Thomas James, the Vice President, General Counsel and Secretary of the Company. We thank everybody for joining the call and I appreciate you bearing with us as we read the required Safe Harbor text.The statements made on today's call that are not based on historical information are forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding our Company's business strategy, future plans and objectives and future results of operations or that may predict, forecast, indicate or imply future results, performance or achievements.The words project, intend, forecast, anticipate, plan, expect, believe, will, will likely, should, may or the negative of such words or words of expressions of similar meanings are all intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, and all such forward-looking statements involve risks and uncertainties, many of which are beyond our Company's ability to control.Actual results may differ materially from those expressed or implied by such forward-looking statements as a result of various factors, including, but not limited to the risk factors disclosed in our Company's most recent Annual Report on Form 10-K for the year ended December 31, 2018, as filed with the Securities and Exchange Commission on March 6, 2019. 22nd Century does not undertake, and it disclaims any obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements.During this call, we will also disclose certain non-GAAP financial measures, including adjusted EBITDA, which we define as earnings before interest, taxes, depreciation and amortization, as adjusted by 22nd Century for certain non-cash and non-operating expenses, all is described in our Company's earnings press release for the quarter ended June 30, 2019, as publicly issued yesterday on August 7, 2019, and which is available on our Company's website.And with that, I would like to turn now turn over the call to Cliff Fleet, the Company’s Chief Executive Officer.

Thank you, Tom. And thanks everyone for joining today’s call. I am pleased to be here to discuss 22nd Century, its performance and what we believe are the company's bright prospects. I am excited to serve the company as its newly appointed CEO and I look forward to working with our shareholders, employees and others to continue building a great business, by driving historic change in the tobacco industry to reduce the harm caused by smoking and by creating a meaningful and profitable business in the emerging legal hemp cannabis space. We believe the pursuit of these growth strategies for which we are very well positioned will create substantial value for shareholders.Before we proceed, let me tell you a few - tell you about a few changes to the format of the call. I will talk about the company's strategies, plans and overall performance. And then John, our Chief Financial Officer will review highlights of the company's operational and financial performance for the second quarter and first half of 2019. We will no longer be taking questions from individual shareholders during the call. However, our Investor Relations team will be happy to address your questions personally after the call. We thank those shareholders and others who submitted questions to us in advance of the call. And we have addressed many of those questions in our communications today. We expect the call the last about 30 minutes.With that, let's begin. As the company recently announced, Henry resigned as President, CEO and Board member of 22nd Century for personal reasons. We are thankful for his leadership and contributions to the company over the past several years as it made tremendous progress in his mission to help reduce the harm caused by smoking, and we are grateful that his expertise, advice and counsel…

Thank you, Cliff. I am going to offer perspectives and highlights on our second quarter and first half performance for 2019. Details about our company's performance can be found in our earnings release and quarterly Form 10-Q both issued yesterday. All financial comparisons in my remarks are against the comparable year ago time period unless otherwise noted.Our financial position remains solid with the maintenance of a strong balance sheet, adequate liquidity to fund our operations, meet obligations as they become due, to fund our research and development and make other potential investments.Our income performance deteriorated from the prior year periods due to factors I will address in a moment. And our underlying cash utilization rate also increased for the first half of 2019 versus the year ago comparable time period. But cash utilization improved slightly for the second quarter of 2019 versus the year ago comparable time period.We expect the comparable numbers for income and cash burn to remain relatively constant as the year progresses, although we remain optimistic for potential improvement as a result of possible investments to strengthen our business platform for the long term, which may impact our company's use of cash and its liquidity position.For both the three and six month periods, net sales revenue decreased from the comparable prior year periods. For the second quarter, net sales revenue decreased by 15.9% to $5.8 million and the first half of the year net sales revenue decreased by 7.1% to $12.1 million. This decrease in both periods was principally driven by a decrease in production volume in our contract manufacturing business, in line with industry trends.Our cost of goods sold increased in both time periods, as a percentage of net sales revenue principally driven by an increase in fees due to FDA for filtered cigars, as well…

Thank you, ladies and gentlemen. This concludes today's event. You may now disconnect your lines.