Greetings. Welcome to the Natural Health Trends Corp. Fourth Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions] I will now turn the conference over to your host Michelle Glidewell. You may begin.

Thank you, and welcome to Natural Health Trends fourth quarter and full year 2022 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 9 o'clock a.m. Eastern time. At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.

Thank you, Michelle, and thanks to everyone for joining us this morning to discuss our fourth quarter and full year 2022 financial results. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer. So a lot has happened has changed since early December. Most of the fourth quarter was still under some forms of COVID restrictions for much of the urban Chinese population. In this typical operating environment, our revenue of $12.5 million represented a 7% increase compared to our third quarter's $11.7 million. During the quarter, we also generated positive operating and net income as well as cash from operations due to our ability to protect margin by diligently controlling costs in exercising discipline in marketing and product mix. In Hong Kong, we continue to see traction around the structured online training system officially rolled out earlier in the year. This coordinated corporate and theater training approach coupled with smaller, local and regional in-person gatherings kept our members and teams engaged in connected. Now with a swift move away from a Zero COVID policy, we look forward to in the coming year. We have a full calendar of activities planned, complete with in-person product and business training, team building activities and international incentive travel. The first of which is our upcoming Super Me incentive trip to Shanghai in early March. Our members have communicated their excitement to travel and convene again in larger recognition, training and motivation building events, and we look forward to seeing them again in these settings. The commitment our members have demonstrated to our product offering and to our business, despite the challenging environment, is evidence of their resilience to overcome adversity, and for that, we are thankful. I’ll say Hong Kong and China and North America and Taiwan, we successfully…

Thank you, Chris. Total revenue for the fourth quarter was 12.5 million, an increase of 7% compared to 11.7 million in the third quarter of 2022, and a decrease of 22% compared to 16.1 million in the fourth quarter of 2021. As Chris mentioned, we were able to increase revenue sequentially, despite most of the quarter, still under some forms of COVID restrictions for much of the urban Chinese population. For the full year of 2022, total revenue was 49.1 million compared to 60 million in 2021. Our active member base declined slightly to 38,660 at December 31 from 41,170 at September 30 and was down 12% from 45,760 at December 31 last year. Turning to our cost and operating expenses. Gross profit margin of 73.9% in the fourth quarter, decreased slightly from 74.2% in the fourth quarter of last year. Commissions expense as a percent of net sales for the fourth quarter decreased to 43% from 44.1% in the prior year quarter. Excluding the impact of administrative fee revenue, commissions expense as a percent of net sales was flat compared with the fourth quarter last year. Selling, general, and administrative expenses for the quarter were 3.8 million compared to 4.4 million a year ago. The decrease in SG&A from the prior year quarter reflects lower professional and credit card fees. We returned to positive operating income for the quarter, which totaled 43,000 compared to operating loss of the 145,000 in the third quarter, an operating income of 487,000 in the fourth quarter of 2021. For the full year of 2022, our operating loss was 270,000 compared to operating income of $1.6 million in 2021. We recorded an income tax provision of 255,000 for the quarter compared to 286,000 recognized in the fourth quarter of last year. Net income for…

This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.