XWELL, Inc. Q3 FY2024 earnings call

• Ezra Ernst's background including his time with XWELL and prior senior management roles.
• Transition to sole CEO, consolidating dual CEO structure, realigning resources, leaner decision-making, and cost reduction strategy.
• Prioritizing out-of-airport brand strategy, planning to expand in Florida, open first Naples Wax location in November 2024, and operate up to 10 XWELL properties by mid-2025.
• In-airport growth: solid foot traffic at XpresSpa at Philadelphia International Airport, plan to open Penn Station XpresSpa next year, tech-forward concept.
• Partnership with Priority Pass enhancing brand awareness, expanding service menu, adding skilled retail and store management, simplifying spa appointment reservation via social media and mobile platforms.

For the third quarter, total revenue was approximately $8.4 million. Revenue primarily consisted of approximately $4.9 million from XpresSpa locations and Treat locations, which is about 58.3% of total revenue. Approximately $3.1 million came from XpresTest, including the biosurveillance partnership and HyperPointe business, making up around 36.9% of total revenue. Approximately $0.4 million was from Naples Wax Center, accounting for about 4.8% of total revenue. Salaries and benefits in the third quarter of 2024 were approximately $1.9 million, general and administrative expenses were approximately $4.5 million, total operating expenses were approximately $6.8 million. Operating loss was $4.8 million, net loss attributable to common shareholders was $4.8 million.

• Plan to expand into several attractive markets in Florida and be in position to operate up to 10 XWELL properties by mid-2025.
• Expect to share more regarding growth initiatives in 2025.
• Focus on continued improvements in execution, prudent cost management, and enhanced operational processes.

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