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Xcel Brands Inc (XELB-1.57%). has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, indicating a decrease in net revenue to $1.91 million from $2.64 million in the same quarter the previous year. This decrease is primarily attributed to a reduction in net licensing revenue following the divestiture of the Lori Goldstein Brand.
Net loss attributable to Xcel Brands, Inc. stockholders was $9.21 million for the quarter, compared to a net loss of $5.14 million in the previous year. The increase in net loss is mainly due to a non-cash charge related to a contingent obligation concerning the IM Topco, LLC equity ownership.
The company reported a gross profit of $1.51 million for the quarter, compared to $2.41 million in the previous year. The decline is linked to the decrease in net licensing revenue.
Operating expenses were reduced to $2.83 million from $5.62 million, reflecting cost reduction efforts and restructuring initiatives implemented by management.
Xcel Brands recognized a $6.25 million non-cash charge related to the estimated value of a contingent obligation to transfer a portion of its equity ownership in IM Topco, LLC.
The company incurred interest and finance expenses of $0.14 million for the quarter.
Cash used in operating activities was $3.31 million for the nine months ended September 30, 2024, while cash used in investing activities was $0.11 million.
The company entered into a new term loan agreement in December 2024, providing $10 million in financing, which is expected to improve liquidity and working capital.
Xcel Brands continues to focus on optimizing its cost structure and managing liquidity, with a shift towards a 'licensing plus' business model to support future operations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Xcel Brands Inc quarterly 10-Q report dated December 20, 2024. To report an error, please email earnings@qz.com.