Hello, and welcome to the Digital Brands Group, Inc. Q1 2023 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to John McNamara, Investor Relations. Please go ahead, John.

Thank you. Good morning, everyone, and welcome to the Digital Brands Group 2023 first quarter conference call and webcast. With us on the call this morning is Hil Davis, Chief Executive Officer of Digital Brands. Before we begin, we would remind everyone that certain matters discussed during today's call or answers that may be provided to questions, may constitute forward-looking statements as defined under Federal securities laws. These statements are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the Risk Factors section of the Company's quarterly report on Form 10-Q filed with the SEC. Copies of these documents are available on the SEC's website as well as on the company's website. Actual results may differ materially from those expressed or implied by such forward-looking statements. The company undertakes no obligation to update these statements for revisions or changes after the date of this call, except as required by law. With that, I'd like to now turn the call over to Hil Davis, CEO. Go ahead Hil.

Yes, thank you, John. As we stated during our fourth quarter and fiscal year 2022 conference call in mid-April, we experienced significant operating leverage with the acquisition of Sundry. To that point, our operating loss would've been only $250,000, excluding the non-cash expenses, and approximate $250,000 in Sundry expenses that we are no longer incurring since we completed the integration in late March. As you can see from our release, we experienced operating leverage on every line item, and we still expect to achieve some additional expense reductions going forward. Also, please keep in mind, our e-commerce revenue for both January and February was half our March e-commerce revenue as we transitioned to a performance marketing agency. Our e-commerce revenue has extremely high gross margin and requires very little additional operating expense to execute, so the flow through would've been extremely high. This is why we're excited for the fall as we have: one e-commerce in full force; two, higher price point items like leathers, sweaters, and outerwear; three, Bailey 44 generating revenue from the wholesale channel again; and four, distilled with the full product assortment versus limited and busted sizing in inventory. This is why we expect to achieve EBITDA positive this fall, which, by the way, is only three months away. In addition to that, we are also excited about our two new revenue channels that we will launch this fall. The first is our proprietary affiliate program, which we have been building a founding group of influencers and affiliates for the soft launch in August. We believe this is an extremely scalable channel based on my past experiences and the positive reception we are experiencing. The second is our multi-brand retail store strategy. Based on the success with existing DTC brands with their own retail stores, coupled…

Yes. Well, thanks, everyone, for attending the call. And I think the key thing here is we talked about the Sundry acquisition being the tipping point. I think the first quarter results prove that. I think what's most exciting as we look forward, not only do we have our current growth drivers, we've got the affiliate program, we've got store growth, we've got significant cash flow, and we'll use that to not only accelerate that; but like as we said, at these levels to buy back shares and drive shareholder return. I appreciate everyone's time, and have a good day.

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.