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XpresSpa Group(XWEL) - 2024 Q4 - Annual Report
XWELXpresSpa Group(XWEL)2025-04-15 21:17

Business Operations - As of December 31, 2024, XWELL operated 18 domestic XpresSpa locations and 10 international locations, including 4 in Istanbul Airport and 3 in Schiphol Amsterdam Airport[13]. - The acquisition of Naples Wax Center on September 12, 2023, was for a purchase price of 1,624,aimedatdiversifyingXWELL′swellnessservicesbeyondairportlocations[19].−XWELLplanstooptimizeitsairportportfoliowhilepursuingoff−airportgrowththroughacquisitions,particularlyinthemedspasector,toenhancebrandreach[23].−Thecompanyaimstoexpanditshealthandwellnessservicesoutsideofairports,believingthisrepresentsthefastestwaytoscaleitsbrand[21].−XWELL′sflexibleretailformatallowsittooperatemultiplestoreswithinairports,adaptingtovariouslocationsizesfrom200to2,600squarefeet[30].−Thecompanyisstrategicallypositionedtocapitalizeonthegrowingconsumerinterestintravel,health,andwellness,withafocusonexpandingitsretailstrategy[28].FinancialPerformance−XpresTest′srevenuefromaone−yearprogramextensiontotaledapproximately1,624, aimed at diversifying XWELL's wellness services beyond airport locations[19]. - XWELL plans to optimize its airport portfolio while pursuing off-airport growth through acquisitions, particularly in the med spa sector, to enhance brand reach[23]. - The company aims to expand its health and wellness services outside of airports, believing this represents the fastest way to scale its brand[21]. - XWELL's flexible retail format allows it to operate multiple stores within airports, adapting to various location sizes from 200 to 2,600 square feet[30]. - The company is strategically positioned to capitalize on the growing consumer interest in travel, health, and wellness, with a focus on expanding its retail strategy[28]. Financial Performance - XpresTest's revenue from a one-year program extension totaled approximately 7,044, with an increase to an estimated $15,100 following further funding expansion[15]. - The company may lend money to ACDBEs to help fund capital investments required under concession agreements[35]. Strategic Initiatives - XWELL's strategy includes integrating offerings across its brands and developing membership programs to enhance customer relationships and brand loyalty[22]. - The company recognizes the opportunity to leverage its products and services across its brand platform, including adding complementary products to service offerings[20]. - XWELL's bio-security services are set to expand beyond the U.S. through partnerships with government clients, supporting international growth goals[25]. Workforce and Compliance - As of December 31, 2024, the company had approximately 246 full-time and 66 part-time employees[37]. - The company is subject to various federal and state laws, including the Fair Labor Standards Act and the Americans with Disabilities Act, which may impact operational costs and compliance[35]. - The company must meet minimum Airport Concession Disadvantaged Business Enterprise (ACDBE) participation requirements, which are complex and costly to ensure compliance[35]. - The company considers its relationships with employees to be good, indicating a positive workplace environment[37]. Corporate Information - The company's common stock has been listed under the trading symbol "XWELL" since October 25, 2022[38]. - The company operates multiple websites, including www.xwell.com and www.xpresspa.com, to provide information and services to customers[38]. - The company is not required to disclose quantitative and qualitative disclosures about market risk as it is classified as a smaller reporting company[260]. - The company is subject to truth-in-advertising and consumer protection rules, which govern its retail operations[36]. - The company’s principal executive offices are located in New York, New York[38].