Financial Performance - Total revenue for Q3 2024 was 8,422million,anincreaseof954 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 26,430million,anincreaseof3,724 million or 16% compared to 22,706millionforthesameperiodin2023[142]−Costofsalesdecreasedby1,270 million or 6%, totaling 18,633millionfortheninemonthsendedSeptember30,2024,primarilyduetotheclosureofthreeXpresSpalocations[143]−Generalandadministrativeexpensesincreasedbyapproximately514,525 million, mainly due to one-time legal fees of approximately 2.1millionrelatedtoalawsuit[139]−Generalandadministrativeexpensesdecreasedbyapproximately69,682 million for the nine months ended September 30, 2024, down from 10,282millionin2023[146]−Salariesandbenefitsincreasedbyapproximately611,893 million, driven by increased payroll accruals and severance related to executive management changes[140] - Salaries and benefits increased by approximately 4%, totaling 5,627millionfortheninemonthsendedSeptember30,2024,comparedto5,423 million in 2023[147] - Depreciation and amortization expenses decreased by approximately 57% to 252million,primarilyduetothewrite−offofpermanentlyclosedstoresin2023[136]−Depreciationandamortizationexpensesdecreasedbyapproximately60705 million for the nine months ended September 30, 2024, down from 1,770millionin2023[144]−Impairment/lossondisposalofassetssignificantlydecreasedbyapproximately7,606 million, totaling 823millionfortheninemonthsendedSeptember30,2024,comparedto8,429 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 1,624milliontoenhanceitswellnessplatformandretailfootprint[124]LiquidityandCapitalManagement−AsofSeptember30,2024,cashandcashequivalentswere4,365 million, with total current assets of 19,513millionandcurrentliabilitiesof9,850 million[151] - The working capital surplus decreased to 9,663millionasofSeptember30,2024,comparedto17,236 million as of December 31, 2023[152] - The company used 7,541millioninoperationsduringtheninemonthsendedSeptember30,2024,comparedto12,873 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]
