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LuxUrban Hotels Inc. (LUXH-12.50%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net rental revenue to $13,133,103 from $31,208,248 in the same quarter the previous year. This decrease is attributed to a reduction in the average units available for rent and lower booking rates.
Total cost of revenue increased to $29,950,401 from $23,395,963, primarily due to the expensing of unamortized lease acquisition costs and security deposits surrendered for properties exited during the period.
The company reported a gross loss of $16,817,298 for the quarter, compared to a gross profit of $7,812,285 in the previous year.
General and administrative expenses rose to $11,697,043 from $1,981,774, with the increase primarily due to a rise in litigation reserves.
Net loss for the quarter was $30,729,372, compared to a net income of $4,934,800 in the previous year. After preferred stock dividends, net loss attributable to common stockholders was $30,968,364.
Cash used in operating activities was $36,691,573, while cash provided by financing activities was $36,137,594.
LuxUrban had a working capital deficit of $80,836,636 as of September 30, 2024. The company acknowledges its dependence on additional capital to meet future obligations.
The filing also details various financial agreements, including a private placement of senior secured convertible notes and warrants.
LuxUrban does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting and is taking steps to address it.
LuxUrban continues to focus on managing its hotel portfolio and improving operational efficiencies.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the LuxUrban Hotels Inc. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.