Core Insights - XWELL, Inc. plans to acquire select medical spas by the end of 2025, utilizing a recent $4 million private placement to expand into the wellness and beauty sector [1][2] - The company aims to create a seamless continuum of care, extending its services beyond airports into metropolitan areas with rising demand for advanced beauty and wellness treatments [1][2] - XWELL's strategy focuses on enhancing medical spas to provide high-quality, science-backed wellness experiences, positioning itself as a leading brand in holistic self-care [2][3] Company Strategy - The initial focus for acquisitions will be on metropolitan areas such as Orlando, Austin, and Salt Lake City, where there is strong demand for medspa services [2] - XWELL intends to introduce state-of-the-art treatments, AI-driven personalization, and innovative skincare solutions to meet evolving wellness needs [2][3] - This expansion is part of a long-term strategy to establish a nationwide presence in the beauty and wellness market, delivering cutting-edge self-care solutions [3] Market Context - The global medical spa market is rapidly expanding as consumers increasingly seek non-invasive, results-driven treatments that enhance beauty and overall quality of life [3] - XWELL's approach will combine luxury with medical expertise, offering a curated selection of high-impact treatments administered by certified professionals [3] - The company aims to prioritize health, confidence, and well-being through its offerings, which include various aesthetic and wellness services [6]

Core Viewpoint - XWELL, Inc. has successfully closed a private placement offering of $4 million in Series G Convertible Preferred Stock, which will be utilized for working capital and corporate purposes, supporting the company's growth strategy in wellness solutions [1][2][3]. Group 1: Financial Details - The gross proceeds from the private placement amounted to approximately $4.0 million, before deducting offering expenses [2]. - The private placement involved the issuance of 4,000 shares of Series G Convertible Preferred Stock with an initial conversion price of $1.496, along with Series A and Series B warrants exercisable at prices of $1.496 and $1.7952, respectively [3]. Group 2: Strategic Intent - The funding will enable the advancement of AI-driven health, wellness, and beauty products, and support the expansion of XWELL locations beyond airports [3]. - The company aims to enhance its integrated branding efforts as part of its strategy outlined in a shareholder letter dated December 5, 2024 [2][3]. Group 3: Regulatory and Compliance - The securities offered in the private placement were exempt from registration requirements under the Securities Act, and the company plans to file a registration statement with the SEC for the resale of common stock [4][5]. - Full conversion of the Series G Convertible Preferred Stock and exercise of the accompanying warrants are subject to stockholder approval [5]. Group 4: Company Overview - XWELL, Inc. operates multiple wellness brands including XpresSpa®, Treat™, Naples Wax Center®, XpresCheck®, and HyperPointe™, positioning itself as a leading global wellness holding company [7].

Core Points - XWELL, Inc. has successfully closed a private placement offering of $4 million in Series G Convertible Preferred Stock, along with Series A and Series B warrants [1][2][3] - The net proceeds from this private placement will be utilized for working capital and general corporate purposes, aligning with the strategy outlined in a shareholder letter dated December 5, 2024 [2] - CEO Ezra Ernst stated that the funding will facilitate the development of AI-driven health, wellness, and beauty products, and support the expansion of XWELL locations beyond airports [3] Financial Details - The gross proceeds from the private placement amounted to approximately $4.0 million before deducting offering expenses [2] - The offering included 4,000 shares of Series G Convertible Preferred Stock with an initial conversion price of $1.496, and warrants exercisable at prices of $1.496 for Series A and $1.7952 for Series B [3] Regulatory Information - The securities were offered in transactions exempt from the registration requirements of the Securities Act of 1933, relying on specific exemptions [4] - The company plans to file a registration statement with the SEC to register the resale of common stock issuable upon conversion of the Series G Convertible Preferred Stock and exercise of the related warrants [4][5]

Senior Leadership Appointments - Ian Brown appointed as the new Chief Financial Officer (CFO) of XWELL, succeeding Suzanne Scrabis, effective January 6, 2025 [1] - Peter Vermeulen joins XWELL as the new Head of Human Resources [1][3] - Mike Heronime joins XWELL as the new Marketing Director [1][3] Compensation and Stock Options - Ian Brown granted stock options to purchase up to 37,000 shares of common stock at an exercise price equal to the fair market value on January 6, 2025 [2] - Stock options vest in four quarterly installments of 25% each, contingent on continued employment [2] Leadership Backgrounds - Ian Brown has over 25 years of experience in operational finance, including roles at Accordion, FTI Consulting, Charter Communications, and Insight Communications [5] - Peter Vermeulen brings over 25 years of global HR experience, with senior roles at TeleSign, Amazon, and Johnson & Johnson [6] - Mike Heronime has more than 25 years of strategic marketing experience, including roles at Positive Brand, RKD Group, Tribal DDB, and Bozell [7][8] Company Strategy and Vision - New leadership appointments aim to support XWELL's strategic growth, unify brands, enhance company culture, and improve financial and operational performance [4] - CEO Ezra Ernst emphasizes the importance of these appointments in driving growth and liberating wellness [4] Company Overview - XWELL operates multiple wellness brands including XpresSpa, Treat, Naples Wax Center, XpresCheck, and HyperPointe [9] - XpresCheck conducts biosurveillance monitoring in partnership with the CDC and Ginkgo Biosecurity to identify new SARS-CoV-2 variants and other pathogens [11]

Core Insights - XWELL, Inc. is undergoing a transformation in the wellness industry, comparable to the fitness revolution of the 1970s, focusing on holistic health and self-care [3][4] - The global wellness market is projected to exceed $9 trillion by 2033, with the MedSpa industry expected to grow at a compound annual growth rate of over 15%, reaching a total addressable market of more than $49 billion by 2030 [4] - XWELL aims to unify its wellness services under a single brand starting in 2025, enhancing customer experience and loyalty [9][10] Industry Overview - The wellness industry is experiencing a significant cultural shift towards holistic health, mindfulness, and mental well-being, creating opportunities for growth [3][4] - Innovations in AI-driven health monitoring and personalized wellness programs are making health management more accessible and tailored to individual needs [5] Company Strategy - XWELL's vision is to make wellness a mainstream category synonymous with health and self-care, with a mission to create inspiring environments for self-improvement [7][8] - The company plans to open seven new out-of-airport locations in Florida by the end of 2025, expanding its reach beyond airports [13] - XWELL will leverage autonomous service capabilities and innovative self-service options to enhance customer experiences and operational efficiency [15][16] Brand Development - The rebranding of airport spa locations to reflect the XWELL identity aims to drive revenue growth and customer engagement [11][12] - The integration of loyalty programs and branded wellness products will extend the XWELL experience into customers' daily lives [17] Financial Outlook - XWELL is positioned for solid growth as it integrates its offerings under the XWELL brand and invests in technology to enhance customer experience [18] - The company recognizes the importance of operational efficiency and resource management to achieve sustainable profitability [19]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was approximately $8.4 million, an increase from $7.5 million in the prior year period [22] - Operating loss for Q3 2024 was $4.8 million, improved from an operating loss of $12.1 million in the prior year [24] - Net loss attributable to common shareholders was $4.8 million compared to $11.5 million in the prior year [24] - Total operating expenses were approximately $6.8 million, down from approximately $13.2 million in Q3 2023 [24] - Salaries and benefits were approximately $1.9 million in Q3 2024, compared to $1.2 million in the same period in 2023, but adjusted for a non-recurring credit, this represents a 4% decrease year-over-year [23] Business Line Data and Key Metrics Changes - Revenue from XpresSpa locations and Treat locations was approximately $4.9 million [22] - Revenue from XpresTest, including biosurveillance partnerships and HyperPointe business, was approximately $3.1 million [22] - Revenue from Naples Wax Center, acquired near the end of Q3 2023, was approximately $0.4 million [22] Market Data and Key Metrics Changes - Foot traffic and customer traction at the newly opened XpresSpa at Philadelphia International Airport have been solid, indicating positive market reception [13] - The company plans to open its Penn Station XpresSpa next year, targeting commuters and local residents [14] Company Strategy and Development Direction - The company is prioritizing its out-of-airport brand strategy, planning to expand into several attractive markets in Florida, with expectations to operate up to 10 XWELL properties by mid-2025 [11] - A focus on aligning additional XWELL properties with existing in-airport markets to enhance competitive positioning [12] - Commitment to driving higher sales and margins through partnerships, such as with Priority Pass, which has increased foot traffic and revenue [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's continued momentum and growth potential, emphasizing a commitment to cost reduction and returning to profitability [10][20] - The company has reduced total operating expenses by approximately 35% compared to the same nine-month period in 2023 [19] - Management is focused on sustainable top-line growth and improving efficiencies across all brands [18] Other Important Information - The company reported solid liquidity with cash and cash equivalents totaling $4.4 million and $11.7 million in marketable securities [25] - There is no long-term debt, indicating a strong balance sheet position [25] Q&A Session Summary - The Q&A session details were not provided in the content, thus no specific questions and answers can be summarized.

Revenue Performance - XWELL reported third quarter 2024 revenue of $8.4 million, a 13% increase compared to $7.5 million in the third quarter of 2023[15]. - For the nine-month period ended September 30, 2024, revenue grew approximately 16% compared to the same period in 2023[2]. - XpresSpa locations generated approximately $4.9 million in revenue during the third quarter 2024[16]. Operating Expenses and Losses - The company reduced total operating expenses by approximately 35% for the nine-month period ended September 30, 2024, compared to the same period in 2023[3]. - XWELL's operating loss for the third quarter 2024 was approximately $4.8 million, significantly improved from an operating loss of approximately $12.1 million in the third quarter of 2023[18]. - Net loss attributable to XWELL was approximately $4.8 million for the third quarter 2024, compared to approximately $11.5 million in the same quarter of 2023[19]. Financial Position - As of September 30, 2024, the company had approximately $4.4 million in cash and cash equivalents and no long-term debt[13]. - The company executed a registered direct offering in August 2024, resulting in gross proceeds of $1.4 million[3]. Expansion Plans - XWELL plans to open approximately 10 out-of-airport locations in Florida in 2025, expanding its Naples Wax Center brand[8]. - XWELL is set to open a new XpresSpa location in New York City's Penn Station in 2025, enhancing its presence in transportation hubs[9].

NEW YORK, Nov. 14, 2024 (GLOBE NEWSWIRE) -- XWELL, Inc. (Nasdaq: XWEL) ("XWELL" or the "Company"), an authority in wellness solutions for people on the go, today reported results for the third quarter and nine-month period ended September 30, 2024. Recent Highlights: XWELL delivered 2024 third quarter revenue growth of approximately 13% from the comparable quarter in 2023. Additionally, for the nine-month period ended September 30, 2024, XWELL delivered revenue growth of approximately 16% from the comparabl ...

Financial Performance - Total revenue for Q3 2024 was $8,422 million, an increase of $954 million or 13% compared to Q3 2023, primarily due to the increase in the XpresTest CDC contract and the addition of Naples Wax[134] - Total revenue for the nine months ended September 30, 2024, was $26,430 million, an increase of $3,724 million or 16% compared to $22,706 million for the same period in 2023[142] - Cost of sales decreased by $1,270 million or 6%, totaling $18,633 million for the nine months ended September 30, 2024, primarily due to the closure of three XpresSpa locations[143] - General and administrative expenses increased by approximately 51% to $4,525 million, mainly due to one-time legal fees of approximately $2.1 million related to a lawsuit[139] - General and administrative expenses decreased by approximately 6%, totaling $9,682 million for the nine months ended September 30, 2024, down from $10,282 million in 2023[146] - Salaries and benefits increased by approximately 61% to $1,893 million, driven by increased payroll accruals and severance related to executive management changes[140] - Salaries and benefits increased by approximately 4%, totaling $5,627 million for the nine months ended September 30, 2024, compared to $5,423 million in 2023[147] - Depreciation and amortization expenses decreased by approximately 57% to $252 million, primarily due to the write-off of permanently closed stores in 2023[136] - Depreciation and amortization expenses decreased by approximately 60%, amounting to $705 million for the nine months ended September 30, 2024, down from $1,770 million in 2023[144] - Impairment/loss on disposal of assets significantly decreased by approximately $7,606 million, totaling $823 million for the nine months ended September 30, 2024, compared to $8,429 million in 2023[145] Operational Strategy - The company plans to expand its retail strategy by adding more products and aligning them with service offerings, such as muscle relaxation patches[113] - XWELL aims to build capabilities for delivering health and wellness services outside of airports, which is seen as a fast way to scale its brands[114] - The company is pursuing international expansion as travel returns to pre-pandemic levels, leveraging opportunities to grow its brands globally[115] - XWELL acquired Naples Wax Centers for a purchase price of $1,624 million to enhance its wellness platform and retail footprint[124] Liquidity and Capital Management - As of September 30, 2024, cash and cash equivalents were $4,365 million, with total current assets of $19,513 million and current liabilities of $9,850 million[151] - The working capital surplus decreased to $9,663 million as of September 30, 2024, compared to $17,236 million as of December 31, 2023[152] - The company used $7,541 million in operations during the nine months ended September 30, 2024, compared to $12,873 million in the same period in 2023[152] - The company has sufficient liquidity to fund operations for the next twelve months, focusing on maintaining current locations and expanding the Naples Wax brand[152] Corporate Governance and Compliance - XWELL, Inc. filed a Certificate of Designation of Series A Junior Participating Preferred Stock on August 16, 2024[3.1] - The company entered into a Tax Benefits Preservation Plan on August 16, 2024, to protect its tax benefits[4.1] - An Executive Employment Agreement was established with Ezra T. Ernst effective September 4, 2024[10.2] - A Transition and Severance Agreement was signed with Scott R. Milford effective September 4, 2024[10.3] - The company has incorporated various Inline XBRL documents for financial reporting compliance[31.1] - Ezra T. Ernst and Suzanne A. Scrabis signed the report as Chief Executive Officer and Chief Financial Officer respectively on November 14, 2024[171] - The company is actively pursuing strategies to enhance its financial reporting and compliance with the Sarbanes-Oxley Act[31.2] - The Securities Purchase Agreement dated August 6, 2024, was executed among the company and its purchasers[10.1] - The company is focused on maintaining its tax benefits through strategic planning and agreements[4.1] - The company has filed multiple documents with the SEC to ensure transparency and regulatory compliance[168]

NEW YORK, Nov. 12, 2024 (GLOBE NEWSWIRE) -- XWELL, Inc. (Nasdaq: XWEL) ("XWELL" or the "Company"), an authority in wellness solutions for people on the go, today announced that it will report third quarter 2024 financial results, on Thursday, November 14, 2024, after the market close. The announcement will be followed by a webcast and conference call at 5:00 p.m. ET. The Company encourages investors, and interested parties, to listen via webcast as there is a limited capacity to access the conference call b ...