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XWELL, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenue to $8,422,000 from $7,468,000 in the same quarter the previous year. This increase is attributed to the growth in the XpresTest (XWEL-3.16%) CDC contract and the addition of Naples Wax.
Cost of sales for the quarter was $6,369,000, compared to $6,377,000 in the same quarter of the previous year. The decrease is due to schedule optimization in the XpresSpa locations.
The company reported a gross profit of $2,053,000 for the quarter, compared to $1,091,000 in the previous year, with the increase attributed to revenue growth.
General and administrative expenses increased to $4,525,000 from $3,001,000, primarily due to one-time legal fees related to the CPC lawsuit.
Net loss for the quarter was $4,705,000, compared to a net loss of $11,591,000 in the previous year. The reduction in net loss is due to a decrease in impairment and disposal of assets.
Cash used in operating activities was $7,541,000, while cash provided by investing and financing activities was $2,191,000 and $1,359,000, respectively.
XWELL had a working capital of $9,663,000 as of September 30, 2024. The company continues to focus on returning to overall profitability and is pursuing strategic partnerships to strengthen long-term profitability.
The filing also details the company's segments, including XpresSpa, XpresTest, Naples Wax Center, and Treat, with XpresTest showing significant revenue growth due to the CDC contract.
The company does not anticipate cash dividend payments to common stockholders in the near future.
XWELL identified a material weakness in its internal controls over financial reporting and is implementing a remediation plan to address this issue.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the XWELL Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.