Greetings. Welcome to Natural Health Trends Corp Fourth Quarter and Full-Year 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. [Operator Instructions] Please note this conference is being recorded. At this time, I will now turn the conference over to Kim Orlando with ADDO Investor Relations. Kim, you may begin.

Thank you and welcome to Natural Health Trends. Fourth Quarter and full-year 2021 Earnings Conference Call. During today's call, there may be statements made relating to the future results of the company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements through the result of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission. It should also be noted that today's call will be webcast live and can be found on the Investors section of the company's corporate website at naturalhealthtrendscorp.com. Instructions can be found for accessing the archived version of the conference call in today's financial results press release, which was issued at approximately nine o'clock AM Eastern Time. At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.

Thank you, Kim (ph). And thanks to everyone for joining us this morning to discuss our fourth quarter and full year 2021 financial results. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer. We ended the year on a high note with a strong fourth-quarter. Our revenue of $16.1 million increased 13% over the third quarter of 2021. In addition, we achieved our seven consecutive quarter of positive operating income and net income. The sequential improvement in revenue reflected strength in order volume, given our increase ability to adapt to the ever-changing macroeconomic environment resulting from the pandemic. We are extremely proud of our skilled leaders who have remained flexible and operated through these trying times. As discussed on our last conference call, the third quarter of 2021 was the first quarter since the beginning of the pandemic in which we were unable to organize any in-person events in China, Macau, or Hong Kong. In late December, we were able to cautiously resume some in-person activities. We sponsored a domestic fly-high training and climbing with over 500 attendees that you then were designed to help motivate and better equip our existing leaders to conduct business amid ongoing government-mandated restrictions and lockdowns. While it is still difficult to ensure normal levels of attendance, demand for our products in the weeks that follow, remain at healthy levels. We also held multiple webinars, online training sessions, and events during the quarter to help sustain momentum. Our deferred revenue balance grew by $2.5 million from September 30th to December 31st, 2021. This is a testament to our strong order volume which increased 29% compared to the third quarter of 2021, and 20% over the fourth quarter of last year. For the full-year of 2021 our order volume improved 9%…

Thank you, Chris. Total revenue for the fourth quarter was $16.1 million, a decline of 3% compared to $16.6 million in the fourth quarter of 2020 and an increase of 13% compared to the $14.3 million in the third quarter of 2021. As Chris mentioned, the 29% increase in order volume over the prior quarter drove the sequential increase as in-person member events and activities gradually resumed on a limited basis. For the full-year of 2021, total revenue was $60 million compared to $62.1 million in 2020. The decrease in net sales primarily resulted from the $5.5 million increase in deferred revenue during the year. Additionally, variance and scattered outbreaks of COVID-19 continued to present challenges to our business as the operating environment remains restricted. Our active member base declined slightly to 45,760 at December 31st from 45,950 at September 30th and was down 12% from 52,230 at December 31st last year. Turning to our cost and operating expenses, gross profit margin was 74.2% in the 4th quarter compared to 75.8% in the fourth quarter last year. For the full year, our gross profit margin of 75% increased from 72.6% in 2020 due to our negotiation of a lower logistics cost and offer a fewer product promotions. Despite a decrease in administrative fee revenue. Commissions expense as a percent of net sales for the fourth quarter increased to 44.1% from 41.4% in the prior year quarter due to higher incentivize costs. On a full-year basis, excluding the impact of administrative fee revenue, commissions expense as a percentage of net sales was relatively consistent with 2020. Selling general administrative expenses for the quarter decreased 2% to $4.4 million from the fourth quarter last year. For the full-year, SG&A was $17.8 million compared to $18.2 million for 2020. We maintained positive operating…