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]
XpresSpa Group(XWEL) - 2024 Q3 - Quarterly Report