Good afternoon. I would like to welcome you to the Aterian, Inc. Q4 Earnings Report. All lines have been muted to avoid background noise. After the speakers' remarks, there will be a question-and-answer session. I will now turn the call over to Ilya Grozovsky, Vice President of Investor Relations and Corporate Development. You may begin your conference.

Thank you. Thank you for joining us today to discuss Aterian's fourth quarter 2023 earnings results. On today's call are Joe Risico and Arturo Rodriguez, our co-CEOs. A copy of today's press release is available on the Investor Relations section of Aterian's website at aterian.io. Before we get started, I want to remind everyone that the remarks on the call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on current management expectations. These may include, without limitation, predictions, expectations, targets or estimates, including regarding our anticipated financial performance, business plans and objectives, future events and developments and actual results could differ materially from those mentioned. These forward-looking statements also involve substantial risks and uncertainties, some of which may be outside of our control and that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties, among others, are discussed in our filings with the SEC. We encourage you to review these filings for a discussion of these risks, including our annual report Form 10-K filed on March 16, 2023, and our quarterly report on Form 10-Q filed on November 8, 2023, and our upcoming annual report on Form 10-K when it is available on the investor portion of our website at aterian.io. You should not place undue reliance on these forward-looking statements. These statements are made only as of today, and we undertake no obligation to update or revise them for any new information except as required by law. This call will also contain certain non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA margin, which we believe are useful supplemental measures that assist in evaluating our ability to generate earnings, provide consistency and comparability with our past performance and facilitate period-to-period comparisons of our core operating results. Reconciliation of these non-GAAP measures to the most comparable GAAP measures and definitions of these indicators are included in our earnings release, which is available on the investor portion of our website at aterian.io. Please note that our definition of these measures may differ from similarly titled metrics presented by other companies. We are unable to provide a reconciliation of non-GAAP adjusted EBITDA margin to net income margin, the most directly comparable GAAP financial measure on a forward-looking basis without unreasonable efforts because items that impact this GAAP financial measure are not within the company's control and/or cannot be reasonably predicted. With that, I will turn the call over to Joe.

Thank you, Ilya, and thank you, everyone, for joining us today. Today, I'm going to touch on our 2023 year, including our fourth quarter financial results. I will also discuss the actions we are taking to foster growth for Aterian in 2024 and beyond as we remain focused both on achieving adjusted EBITDA profitability in the second half of 2024 and on positioning Aterian for substantial growth beyond 2024. Arty will then cover in more depth our financial results for the fourth quarter and will provide our outlook for Q1. For those of you joining for the first time today, a quick primer on Aterian. Aterian owns and operates its own brand, marketing and selling consumer products in the following categories: home and kitchen appliances and accessories to our hOmeLabs, Mueller, Pure Steam brands, health and wellness, primarily through our Squatty Potty brand, iron on transfer paper through our PPD or Photo Paper Direct brand and essential oils through an umbrella of brands, including Healing Solutions. We sell our products primarily in the U.S., and we derive most of our revenues from the Amazon.com marketplace. 2023 was a year of change for Aterian, with Arty and I taking the co-CEO role last July. Arty and I have a strong partnership, and it's been a pleasure to share the role with him. We set out on a mission to focus, simplify, and stabilize Aterian. Together with our team, we have accomplished quite a bit to reposition the company for success and growth, and we are excited about the value we believe we can deliver for shareholders. Some of the things we have accomplished thus far include refocusing Aterian as a consumer products company by eliminating noncore initiatives that don't serve our products business, shifting away from internal only developed software to a more agile and efficient third-party model, eliminating a significant number of noncore SKUs, further strengthening our balance sheet through the amendment of our credit facility with our lender, restructuring our people and vendor costs to better align with our newly focused core business, reducing the number of seller accounts from 31 accounts to approximately 8, further streamlining our fulfillment operations, and further optimizing the marketing and performance aspects of our core SKUs. We are pleased with the results of these actions thus far, and we look forward to growing Aterian from this baseline. With respect to the fourth quarter, we are pleased with the trend in our operating results, and in particular, the progress that we have made thus far to stabilize our business, notwithstanding pricing pressure across a number of highly competitive categories and a challenging discretionary spending environment. Our fourth quarter results also reflect the completion of our previously announced SKU liquidation program, which we believe has well positioned us for success in 2024 and beyond. We also continued our efforts to optimize the marketing and performance of core SKUs. And while this work is never-ending, we made progress on that front across each of our categories, and we are seeing early results from these efforts in Q1 of this year. In 2024, we will continue our strategy to focus and simplify and to a lesser extent, given the work we've done thus far stabilize how we operate, in order to not only position Aterian for adjusted EBITDA profitability but also drive profitable top-line growth. We will be focused on product development, omnichannel expansion, and inorganic growth in new and existing categories. With respect to new products in 2024, we will largely be focused on our existing portfolio, refreshing a number of existing products, and also launching new products that are variations in our existing portfolio that we believe will provide value to a meaningful segment of consumers. For example, as previously announced, we expanded our essential oils portfolio to address consumer needs for healthier chemical-free products, and we have seen promising early results on this front. We intend to continue to expand this offering throughout the rest of our oils brands. In addition, we are working hard on our Squatty Potty brand with a view towards further expansion for its flagship toilet stool product and also expanding the product categories under the brand. We will continue to focus on our omnichannel strategy, primarily through expansion to new marketplaces that we believe can drive profitable revenues for our existing product portfolio. For example, as previously disclosed, we will be launching on TikTok with most of our SKUs; results to date have not been material. We intend to continue to invest in that platform and to evolve alongside it. Also in the near term, we will be launching a number of our products for sale on Mercado Libre in their Mexico-based marketplace, one of the leading marketplaces in Latin America. We will also be expanding to Amazon Canada in the near term. Furthermore, we are actively exploring a number of other marketplaces as we endeavor to position our products everywhere consumers are shopping. Regarding our inorganic strategy, M&A remains an area of focus. We recently completed a small investment in 4th & Heart, a leading ghee butter brand in the United States. We believe investment in new high-growth brands has the opportunity to help drive significant value for Aterian, as well as open up new categories. We intend to continue to explore investing in earlier stage brands. We believe Aterian can be a valuable partner. Before I pass it along to Arty, a few words on Aterian’s NASDAQ compliance with the $1 minimum bid rule. We expect to regain compliance prior to the April 22 deadline set out by NASDAQ through a reverse split. While today, we are not providing specifics on the reverse split ratio or timing, what I can say is that we are excited to regain compliance, given that we believe we have addressed the most significant underlying operating and other issues that have been affecting our stock's underperformance over these last few years. With that, I'll pass it on to Arty. Thank you.

Thanks, Joe. It's great to partner with you, too. Good evening, everyone. We continue to make progress on our path of focusing, simplifying, and stabilizing Aterian. We continue to see certain results from these missions, especially on our balance sheet as it continues to get stronger. With inventory almost at normalized levels, a great accomplishment considering the levels we were at just a year ago. Although our Q4 results are better than anticipated, we still have a long way to go on our path toward adjusted EBITDA profitability. With some more recent moves, such as aligning our fixed costs to our go-forward size and scale of our focused company and our extension and increased flexibility of our credit facility, we further strengthened our balance sheet. We continue to grow more confident that we are on the right path to deliver 2024 second-half adjusted EBITDA profitability, and we have the balance sheet strength to deliver these results. Now moving to the Q4 results overall. As expected, we saw our revenue decline primarily due to our strategy of discontinuing sales of noncore SKUs, coupled with challenging consumer discretionary spending and competitive pricing pressures across our portfolio. Coupled with our previously actioned fixed cost savings, we believe we are starting to see our adjusted EBITDA losses narrowing. Now moving on to the details of the fourth quarter 2023 net revenue. Net revenue declined 40.3% to $32.8 million from $54.9 million in the year-ago quarter. $32.8 million fourth quarter net revenue by phase, as defined in our press release, broke down as follows: $25.2 million sustained, $0.4 million in launch, and $7.2 million in liquidated inventory normalization. The year-ago quarter net revenue of $54.9 million by phase broke down as follows: $40.8 million sustained, $1.0 million in launch, and $13.1 million in liquidating inventory normalization. Our sustained net revenue decrease of $15.6 million is primarily a result of our SKU rationalization efforts, which discontinued poorly performing SKUs, coupled with reduced consumer discretionary spending and competitive pricing pressures. Our liquidation net revenue decreased by $5.9 million as the efforts of liquidating high-cost inventory reached its conclusion. Variations were launched late in the fourth quarter, and we are continuing to be thoughtful on the timing of our new product launches through 2024. Overall gross margin for the fourth quarter increased to 51.0% from 37.1% in the year-ago quarter, an increase from 49.4% in Q3 2023. The improvement was driven by product mix and lower liquidation of higher-cost inventory compared to the prior period. Our overall Q4 2023 contribution margin, as defined in our earnings release, was negative 0.8%, which improved compared to a prior year's negative of 11.5% and decreased compared to a third quarter 2023 CM of 3%. The year-over-year increase in contribution margin was driven by product mix and the level of liquidation revenue of higher-cost inventory compared to the prior period, offset by competitive pricing pressures on our core business. Q4 2023 saw our sustained product contribution margin decline slightly year-over-year to 6.9% versus 8.3% in Q4 of 2022. The decrease in contribution margin was driven by competitive pricing pressures, product mix, and the completion of moving certain higher-cost inventory. Looking deeper into our contribution margin for Q4 2023, our variable sales and distribution expenses as a percentage of net revenue increased to 52.8% as compared to 51.6% in the year-ago quarter. The increase in sales and distribution expenses is predominantly due to product mix and an increase in fulfillment costs. Our operating losses of $8.2 million in the fourth quarter improved from a loss of $22.8 million compared to the year-ago quarter, an improvement of approximately 63.8%, primarily driven by the improvement in CM and the reduction of fixed costs. Our fourth quarter 2023 operating loss includes $1.6 million of noncash stock compensation expense, a reserve for barter credits of $0.3 million, and a noncash loss on impairment of intangible of $0.3 million. While our fourth quarter 2022 operating loss includes $2.7 million of noncash stock compensation expense, a reserve for barter credits of $1.6 million, and a noncash loss on impairment of goodwill of $0.5 million. Our net loss for the quarter of $7.7 million improved from a loss of $20.3 million in the year-ago quarter, an improvement of approximately 62%, primarily driven by the improvement in CM and the reduction of fixed costs. Our fourth quarter 2023 net loss includes $1.6 million in noncash stock compensation expenses, a non-cash loss and impairment of intangible of $0.3 million, and a reserve for barter credit of $0.3 million, while our fourth quarter 2022 net loss includes $2.7 million of noncash stock compensation expenses, a reserve for barter credit of $1.6 million, non-cash loss and impairment of goodwill of $0.5 million, and a gain on fair value of warrant liability of $2.8 million. Our adjusted EBITDA loss of $5.6 million, as defined in our earnings release, improved by 65.4% from a loss of $16.2 million in the fourth quarter of 2022, primarily driven by the improvement in CM and the reduction of fixed costs. Moving on to the balance sheet. At December 31, 2023, we had cash of approximately $20 million compared with $28 million at the end of September 30, 2023. The decrease in cash, as expected, is primarily driven by our net loss in the period and our decision to build up inventory in advance of the 2024 season to avoid tariff impacts, specifically for our beverage cooler. This higher inventory balance should remain through Q3 of 2024. At December 31, our inventory level was at $20.4 million, down from $31.5 million at the end of the third quarter of 2023 and down from $43.7 million in the year-ago quarter. We are happy to report that we believe that our current inventory of $20 million is almost at the appropriate levels, and the high-cost inventory normalization that we have been working on for many quarters is now behind us. As we mentioned, our inventory includes an additional $3 million of beverage coolers purchased in advance to mitigate tariff risks. Our credit facility balance at the end of the fourth quarter of 2023 was $11.1 million, down from $14.2 million at the end of the third quarter of 2023 and down almost 50% from $21.1 million in the comparable prior year period. We recently rightsized and extended our credit facility by two years to December 2026. Aterian now has access to $17 million in current commitments, which can be increased to $30 million, allowing sufficient flexibility for growth when needed. Also, the credit facility extension reduces the minimum liquidity financial covenant from a peak of $50 million down to $6.8 million of cash on hand and/or availability, providing further flexibility as the company focuses on adjusted EBITDA profitability and eventual growth. We believe today, based on our current forecast, our extended credit facility, coupled with our existing cash, has further strengthened our balance sheet as we continue on our path towards adjusted EBITDA profitability in the second half of 2024. As we look at Q1 2024, considering the continued challenges in the consumer environment, we believe that net revenue will be between $18 million and $21 million. Using the middle of the range, this would be an approximately 45% decrease from last year's Q1, primarily driven by a reduction in SKUs from our strategic SKU rationalization and certain competitive pressures, and a 40% decrease from our sequential quarter of Q4 2023, primarily from our seasonality and our strategic SKU rationalization. As a reminder, our first quarter is our lowest quarter, and we expect that Q1 will drive a slightly lower seasonal split than previous years. As we have previously discussed, our decrease in net revenue is expected as we continue to focus on our go-forward business on our best brands and products. Our primary focus today continues to be getting to adjusted EBITDA profitability in the second half of 2024. For Q1 2024, we expect adjusted EBITDA loss to be in the range of $2.5 million to $3.5 million. The middle of this range represents an improvement of approximately 30% compared to Q1 2023 and a 48% improvement from a sequential quarter of Q4 2023. Again, we continue to be laser-focused on our target of turning adjusted EBITDA profitability in the second half of 2024. With our Q1 guide, you can see we're starting to realize some of the results of all our hard work and initiatives. We also believe, based on our forecast, we have sufficient cash above our covenants to achieve our goal without raising additional equity. As previously stated, if we pursue additional financing, it will be predominantly for growth through M&A. We do expect a few housekeeping items in the coming weeks. We do expect to refile our S3 shelf to allow us to opportunistically raise capital as part of our M&A strategy over the coming year or two, if we decide to do so and if we decide to acquire any brand. We believe this is good corporate governance. Finally, as we do annually, we expect to file our S-1 shortly after the 10-K. In closing, we believe our products, our strong balance sheet, and with our cornerstone to focus, simplify, and stabilize, we are turning the corner and look forward with confidence as we continue on our path towards adjusted EBITDA profitability and ultimately to maximize shareholder value. With that, I'll turn it back to the operator to open the call to questions.

Your first question comes from Brian Kinstlinger with Alliance Global Partners. Your line is open.

Great. Thank you. I just wanted to start at a high level about the demand trends. The year-over-year decline in the sustained revenue has been consistent for the last three or four quarters. But the pressure appears to be getting worse, at least based on the first quarter guidance. I'm sure there's an inflationary environment that's not making it any easier on consumers, yourself, supplier pricing. I know you talked about seasonality. But help us understand what you're seeing in terms of this significant step down in revenue in the first quarter and sustain, please?

Arty, maybe you touch on this a bit, and I'll come in on the back end.

Yes. Thank you, Brian, I hope you're doing well. So yes, we've been working very hard, right? We've said previously we've cut well north of 1,700 SKUs. Some of the decrease you're seeing is the fact that we're really trying to focus this business down to our most profitable and best products and brands. So we do expect this revenue decrease. There are definitely still environmental pressures out there, and consumer spending seems to still be volatile. But overall, we're very happy with where we're tracking. Again, the most important goal is getting to adjusted EBITDA profitability. The fact that the Q1 guide is in the middle roughly of $20 million or $19.5 million isn't surprising to us, especially considering the amount of SKUs we've cut out. I think the seasonal impacts and other things that we're doing to stabilize the business may have a little bit of an effect in that number where you mentioned it may be lower, but I don't think overall, we think that's a trend that we'll continue to see in the sense of an overall shrink quarter-to-quarter that you've seen in previous years, especially as we rationalize our SKUs.

Yes, that's great, Arty. I would just add that, to some extent, we've lost some share, and I believe we talked about this the last time, Brian. For some of the SKUs that are going forward, which we're again, we're excited about, we've done some work to regain share there. We have sustained some loss there. Overall, demand in general looks pretty resilient. The challenge for us is to compete and to win sales for our products. So we’re feeling pretty good about the work we're doing to make sure we can do that.

And then two more, and I'll do them both, and I'll move on and step back in the queue. Was there any revenue from the SKU that you're getting rid of in the fourth quarter? Whereas in the first quarter, you'll have no revenues, or was there some benefit in that fourth quarter? That's the first question. The second question is, with the cost-cutting announced a few weeks ago, what's the new quarterly revenue run rate that you believe gets you to adjusted EBITDA profit?

Arty, you want to go for that?

Yes. Brian, could you repeat that first part of that question? I got the second part. I just want to hear the first part.

Yes. Sorry, you were mentioning that in the first quarter, the SKUs that you're getting rid of have an impact. I'm curious, was there from some of the SKUs you discontinued, was there revenue in the December quarter? Or will there be none in the current March quarter? That's the first question.

Yes. So for sure, you can and it's not necessarily something we plan to disclose, but you could sort of see the liquidation numbers that you've seen in our table that we provided in the press release. When you look at the stainless liquidation, some of that number won't be there. So that's part of the drop down on top of the fact that we have to keep it in reality.

Yes, yes. So there's nothing in sustaining? I mean there's no revenue from these SKUs you're getting rid of? You're sustaining?

Very little. Now regarding the second part, we are not ready to discuss the run rate revenue in detail. We have guided the Q1 number to be around $20 million. Our positive adjusted EBITDA is influenced by reducing SKUs and cutting fixed costs. We anticipate that our key brands and products will perform at a healthy 15% plus contribution margin in the second half of the year. The $4 million in savings we announced in February, along with previous announcements in 2023, are part of our strategy to achieve profitability, alongside Joe's initiatives to simplify and stabilize. Our primary focus remains on adjusted EBITDA, and we are still working through the latter part of the year. While we are not prepared to share that number today, we expect to have clearer visibility later in the year, particularly in Q2, and feel confident about reaching our goal with the initiatives we have implemented.

Hey guys, it’s Mike Zabran on for Matt. Maybe just starting with new products. You recently talked about adding beverage cooler products and expanding essential oils. Given the consumer purchasing environment is still relatively deal sensitive, how are we thinking about balancing these new product introductions with maintaining market share and adhering to a price-sensitive consumer in 2024, I guess, just given we're working towards a higher margin profile in the coming quarters?

Yes. It's a fair question. I'll grab this one, Arty, and maybe you can chime in. For sure, it's a challenge, right? But when we think about the portfolio, we think somewhat in terms of the better-best. I think some of our products were the way historically we've gone to market. A number of those products are sort of geared towards sort of the better/best kind of version of the product. And so some of the things that we're doing are aimed at getting sort of the good product, right, but more value for the price to the consumer through variations. To the extent you're on Amazon, those variations usually, right, not always, but usually show up on the same listing. So now, if you think about that listing, it's addressing a broader market of consumers. Hopefully, if you did your job well, you're getting more conversion on that listing, you're getting market share, you're getting ranking, which means you're going to be more prominent to have more prominent placement. So we're not going to go crazy with new product launches, but there are a number of areas where we think it's appropriate for us to come to market.

Yes, that's clear. For my last question, regarding the profitability target in the second half, there are many variables affecting the business right now. It seems we are taking the right steps to focus on profitability, which is positive. What factors might delay this profitability timeline? Are we considering a less aggressive promotional environment or any specific growth in product categories? Could you provide further insight on whether the profitability forecast depends on changes in the macroeconomic environment? We mentioned earlier in the call about new market expansion. Is that included in our considerations, and can you explain why we are confident in our targets?

Arty, do you want to take that one?

Yes. I think it's a good question. Listen, we feel very confident right now, right? What we just said it minutes ago on our earnings, on our prepared remarks. We do feel that we're very well situated to continue to make progress and focus on stabilizing some client business, and that should unlock that goal of the second half adjusted EBITDA profitability. I think specifically on our SKU side of the house, listen, Joe said that we're doing a lot of great things. Where there's still pressures out there, but we're trying to mitigate that through a lot of the actions and initiatives that he highlighted in his prepared remarks. The nice thing about SKU rationalization is that we're really putting all our energy and focus around our core SKUs and brands. This allows us to be a little bit more protective and reactive to any type of macro environment that may happen. That said, as Joe said, we're very focused on omnichannel expansion, which is important to us. The one thing that we feel we are very concentrated on is we are still very on-street on Amazon, where almost 85% of our revenue, north of that, is generated. I think some of the initiatives that the team is doing will hopefully help diversify that over the second half of the year into next year in order to mitigate any type of impact you may see from there.

That's clear. I appreciate that. I just want to nail down on, is there any new market expansion that we called out in the call? Is that factored into the guide?

No.

Okay. So that would just be icing on top towards success in those efforts?

Yes. I think Arty and I think that marketplace expansion is important, and we're a little bit behind where we should be on that. But you just have to keep in mind that you don't exactly line up a marketplace and automatically materialize into results, particularly when you're thinking about a market, a new phenomenon like TikTok. We see lots of reports of products that do extremely well, seemingly overnight. The rest of the world is a little more complicated. It’s important we're going to be in the marketplace as I mentioned. There are going to be other ones. We think it will be these longer-term pillars of growth for the company.

Got it. Very clear. I'll hop back in with you. Thanks, guys.

Thank you.

Next question comes from Marvin Fong with BTIG. Your line is open.

Thanks for taking my questions and congratulations on all the progress. I guess I'll ask maybe one of the more obvious questions, but I think a lot of us all are looking at the bankruptcy at Thrasio, which has probably been in the works for a while. You guys did announce the small acquisition. So any change in the assets that might be for sale? Should we view the way that you sort of use both cash and stock for fourth and hard as a good template for how you might structure any deals for the foreseeable future?

Yes. Arty, I'll take this, and you can jump in. So yes, we've seen the Thrasio bankruptcy and the assets have been in the works to our knowledge. The way we think about the aggregator space is largely right, they're all under tons and tons of duress. The lenders have significant portfolios of aggregators, which they've loaned money to. What you're largely seeing in the space is the lenders pushing together their portfolio companies. That's the next wave versus what Thrasio is looking to try to reorganize. So what that means for us, in the short to medium term, is that it's not likely to be opportunities to buy assets from those aggregators, not that we're looking for that. Fourth and Heart obviously has nothing to do with aggregators; we're kind of looking way beyond that now. Having said that, if there was an opportunity, we would look at it, but it's not something we really think about at this point.

Okay, that's fair. You mentioned bringing in the cooler inventory early to avoid tariffs. On a broader topic, with the election outcome, we could see significantly higher tariffs on products from China. Can you remind us of your strategy? I believe you've previously discussed efforts to diversify your supplier base into other countries. Is that still the case? Have you moved any production outside of China? Where do we currently stand on that? Additionally, how have you adjusted your overall strategy if tariffs do increase?

I'll grab that, Joe, thanks. I guess the political beliefs aside, I think we've seen some very large numbers announced by our former President Trump as part of the campaign rhetoric. We've seen that especially with SKU rationalization. We’ve seen that completion coming to a close. Right now, about 85% of our inventory is produced in China, with about 15% being assembled in North America, which is an improvement over the last year, especially through rationalization from what was almost 95% previously. That said, a lot of our remaining categories, it's difficult to move away from China due to electronics. We continue to look and see opportunities for that, but it is challenging. Outside of buying inventory that we did with the beverage coolers, which we had flexibility to do, if there were tariffs to be implemented, it's not just to Aterian; it's across the board. It would hit us and our competitors equally. The other side that, within the election, is still, it seems far away. I do think we have some time to continue to think through that. I do think the other side of it is it goes against what the Feds and the public desire because everyone's trying to reduce inflation to let interest rates come down. If tariffs were enacted, I do think they are probably not going to be as widespread or as large as currently promised during the campaign because I think it's contradictory to what they’re trying to do for inflation from an administration perspective.

Got it. Okay, that's all fair. Thanks so much, Arty. I can keep going.

There are no further questions at this time. I will now turn the call back over to Ilya Grozovsky for closing remarks.

As part of our shareholder perks program, which, as a reminder, investors can sign up for aterian.io/perks, participants have the ability to ask management questions on our earnings call. I wanted to thank all the shareholder perks participants for their loyalty and their participation in the program and their questions. I picked a few of the most popular questions that they have submitted. The first question, does Aterian have any plans to buy back company shares?

I'll grab this one. On behalf of Aterian myself, again, as Ilya said, we're grateful for the folks that are in Perks and the retail folks that follow us and support us. So in the near-term foreseeable future, the answer is no. We want to deploy the cash we have on hand to invest in Aterian to pursue the strategies we've talked about on the call today.

Great. Next question is, can the company provide an update on its efforts on TikTok specifically?

Yes. As I discussed earlier, we've got, I believe, most of our products there, if not all our products on the platform. The results to date are again not material to our results. Having said that, we are spending time investing, leaning into that platform just to do our best to dial in a formula recipe that translates into results. Just a reminder, TikTok is a discovery platform. People are buying, seeing content and then making a decision to buy versus Amazon, where people are coming to the platform with the product in mind and they're searching for it specifically. There's an adjustment there. There's a learning curve. We're working hard on it. We'll continue to talk about TikTok. I appreciate the question, and that's where we are today.

Great. Thank you. This concludes the Q&A portion of the call. In terms of the upcoming calendar, Aterian management will be participating in the 36th Annual ROTH Conference on March 17 to 19 in Laguna Niguel, California. We look forward to speaking with you on future calls, and this ends our call. You may now disconnect.