XWELL, Inc. reported a total revenue of $33.9 million for the fiscal year ending December 31, 2024, marking a 13% increase from $30.1 million in the previous year. This growth was primarily attributed to a full year of service revenue from the recently acquired Naples Wax business and increased service revenue from new touchless XpresSpa locations. The company also noted a decrease in total cost of sales to $25.0 million from $26.4 million, driven by the closure of underperforming XpresSpa locations. Additionally, depreciation and amortization expenses fell significantly by 55% to $938,000, reflecting fewer long-lived assets available for depreciation.
In terms of operational changes, XWELL made strategic moves to optimize its business structure, including the acquisition of Naples Wax Center for $1.6 million in September 2023. This acquisition is expected to expand the company's footprint beyond airport locations and enhance its wellness service offerings. The company also closed several underperforming locations, which contributed to a reduction in general and administrative expenses by 3% to $12.5 million. As of December 31, 2024, XWELL employed approximately 246 full-time and 66 part-time employees, a reduction attributed to the closure of unprofitable spas.
XWELL's operational strategy includes a focus on expanding its wellness services both within and outside airport environments. The company aims to leverage its existing brands to create a unified customer experience and enhance brand loyalty through membership programs. Furthermore, XWELL is pursuing international expansion and plans to integrate its bio-surveillance services with government clients, which could provide additional revenue streams. The company has also expressed intentions to optimize its airport portfolio to create a more profitable business model.
Despite these developments, XWELL faces significant challenges, including substantial doubt about its ability to continue as a going concern due to recurring losses and insufficient liquidity. As of December 31, 2024, the company reported cash and cash equivalents of approximately $4.6 million and total current liabilities of about $9.2 million. The company is actively seeking additional capital to fund its operations and has indicated that failure to secure this funding could lead to operational reductions or asset sales.
Looking ahead, XWELL's management remains cautiously optimistic about its growth prospects, emphasizing the importance of strategic partnerships and operational efficiencies to enhance profitability. However, the company acknowledges the uncertainties surrounding its ability to execute its plans effectively, particularly in light of fluctuating market conditions and the ongoing impacts of global economic factors.
About XWELL, Inc.
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