Thank you for standing by. This is the conference operator. Welcome to the Xcel Brands Third Quarter 2019 Earnings Conference Call. All participants are in listen-only mode. [Operator Instructions] Please be advised that the reproduction of this call in whole or in part is not permitted without prior written authorization of Xcel Brands. And as a reminder, this conference call is being recorded. I would now like to turn the call over to Andrew Berger of SM Berger & Company. Andrew, you may begin.

Good evening, everyone, and thank you for joining us. We appreciate your participation and interest. With us on the call today are Chairman and Chief Executive Officer, Robert D’Loren; and Chief Financial Officer, Jim Haran. Before I continue, please note that management will not be taking questions on today’s earnings call in light all the activities related to potential acquisition. By now, everyone should have had access to the earnings release for the third quarter and 9 months ended September 30, 2019, which went out earlier today. And in addition, the company plans to file its quarterly report on Form 10-Q with the Securities and Exchange Commission by November 14, 2019. The release and the quarterly report will be available on the company’s website at www.xcelbrands.com. This call is being webcast, and a replay will be available on the company’s Investor Relations website. Before we begin, please keep in mind that this call will contain forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from certain expectations discussed here today. These risk factors are explained in detail in the company’s SEC filings. Xcel does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Finally, please note that on today’s call, management will refer to certain non-GAAP financial measures, such as non-GAAP net income, non-GAAP diluted earnings per share and adjusted EBITDA. Management uses these non-GAAP metrics as measures of operating performance to assist in comparing performance from period to period on a consistent basis and to identify business trends relating to the company’s results of operations. Management believes these financial performance measurements are also useful, because these measures adjust for certain costs and other events that…

Thanks, Bob, and good evening, everybody. I’ll briefly discuss financial results for the quarter ended June (sic) [September] 30, 2019, but please note that our financial results are described more fully in our quarterly report on Form 10-Q, which will be filed with the SEC tomorrow. In the third quarter of 2019, our net revenues increased to $10.9 million, an increase of approximately $2.6 million or 32% over the prior year quarter, primarily driven by sales from the apparel and jewelry wholesale, and e-commerce operations, which was partially offset by lower licensing royalties attributable to our transitioning component of our licensing business to a wholesale model. Despite this overall increase in revenues, our gross profit for the quarter was essentially flat as compared with the prior year quarter, due to the shift in portions of our business from licensing to wholesale. It is important to note that due to the timing of a wholesale shipment of approximately $1 million of revenue and $0.4 million of related gross profit, which we had planned for in Q3, will now be recognized in Q4. Operating cost and expenses increased approximately $1 million from the prior year quarter. This was driven by 3 main items: first, increased amortization expense related to the Halston trademarks; second, increased salary, IT, and shipping and packaging costs related to the transition and scaling of portions of our business to a wholesale model; and finally, costs incurred in connection with potential business acquisition. Total interest and finance expenses increased by $0.07 million from the prior year quarter, attributable to an increase in our term debt from our recent acquisition of the Halston and Halston Heritage trademarks. Net loss for the current quarter was approximately $0.1 million or $0.01 per diluted share compared with net income of $1 million or…

Ladies and gentlemen, that does conclude our conference call for today. You may disconnect your line, and thank you for participating.