Revenue and Growth - Total revenue for the three months ended March 31, 2024, was $8,726 million, an increase of $1,663 million or 24% compared to $7,063 million in the same period of 2023, primarily due to the increase in the XpresTest CDC contract and the addition of Naples Wax[136]. - The revenue from the bio surveillance program with the CDC was estimated to increase to $11,044 million following the expansion of funding and scope in March 2024[122]. Expenses and Cost Management - Cost of sales decreased by $486 million or 7% to $6,055 million in Q1 2024, attributed to the closure of 3 XpresSpa locations during 2023[137]. - General and administrative expenses decreased by approximately 47% to $2,092 million in Q1 2024, primarily due to rightsizing the existing business and optimizing the cost structure[140]. Acquisitions and Expansion - The company acquired Naples Wax Center for a purchase price of $1,624 million on September 12, 2023, aiming to expand beyond the airport client base and enhance the wellness platform[127]. - The company plans to open its first TreatStudios location in Jacksonville, Florida, in 2024, which will provide leased space to wellness service providers[128]. - The company is focusing on international expansion as global travel returns to pre-pandemic levels, aiming to grow its brands including bio surveillance outside the US[117]. Asset Management and Financial Position - The loss on disposal of assets increased by approximately $520 million to $652 million in Q1 2024, primarily due to the write-off of the closed Salt Lake City International Airport Treat location[139]. - As of March 31, 2024, the company had $4,317 million in cash and cash equivalents, $14,784 million in marketable securities, and total current assets of $24,456 million[144]. - Total current liabilities were approximately $9,187 million as of March 31, 2024, compared to $9,330 million as of December 31, 2023[144]. - The working capital surplus decreased to $15,269 million as of March 31, 2024, from $17,236 million as of December 31, 2023[144]. - The company used $3,682 million in operations during the three months ended March 31, 2024, compared to $5,865 million in the same period of 2023[146]. Stock and Liquidity - A reverse stock split of 1-for-20 was executed on September 28, 2023, adjusting all references to shares and per share amounts retroactively[130]. - The stock repurchase program was initially authorized for up to 750,000 shares and later increased by an additional 500,000 shares, with the program extended through September 15, 2023[147]. - The company believes it has sufficient liquidity to fund operations for the next twelve months[145]. Accounting and Compliance - There have been no material changes to the company's critical accounting estimates or methodologies[148].
XpresSpa Group(XWEL) - 2024 Q1 - Quarterly Report