Loading...
Docoh

XpresSpa (XSPA)

XpresSpa Group, Inc. is a leading global health and wellness holding company. XpresSpa Group's core asset, XpresSpa, is a leading airport retailer of spa services and related health and wellness products, with 45 locations in 23 airports globally. Through its XpresTest, Inc. subsidiary, the Company provides COVID-19 screening and testing under the XpresCheck™ brand at eight locations in six airports: Denver International Airport, JFK International Airport, Boston Logan International Airport (2), Newark Liberty International Airport (2), Phoenix Sky Harbor International Airport, and Salt Lake City International Airport.

Company profile

Ticker
XSPA
Exchange
CEO
Douglas Satzman
Employees
Incorporated
Location
Fiscal year end
Former names
FORM Holdings Corp., Vringo Inc
SEC CIK
Subsidiaries
GCG Connect, LLC • I/P Engine, Inc. • Innovate/Protect, Inc. • Iron Gate Security, Inc. • Quantum Stream Inc. • Spa Products Import & Distribution Co., LLC • Vringo Acquisition, Inc. • Vringo GmbH • Vringo Infrastructure, Inc. • Vringo Labs, Inc. ...

XSPA stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

15 Aug 22
29 Sep 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 71.86M 71.86M 71.86M 71.86M 71.86M 71.86M
Cash burn (monthly) 3.96M 2.62M 2.64M 121.5K 2.28M (no burn)
Cash used (since last report) 11.78M 7.78M 7.86M 361.29K 6.78M n/a
Cash remaining 60.08M 64.08M 64M 71.5M 65.08M n/a
Runway (months of cash) 15.2 24.5 24.2 588.5 28.5 n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
17 Jun 22 Ezra Ernst Common Stock Buy Acquire P No No 0.7935 12,602.394 10K 22,602.394
20 Apr 22 James A. Berry Employee stock option Common Stock Grant Acquire A No No 1.43 25,000 35.75K 25,000
20 Apr 22 Scott R Milford Employee stock option Common Stock Grant Acquire A No No 1.43 100,000 143K 100,000
20 Apr 22 Weinstein Robert Common Stock Sell Dispose S No Yes 1.06 45,000 47.7K 106,485
13F holders Current Prev Q Change
Total holders 0 0
Opened positions 0 0
Closed positions 0 0
Increased positions 0 0
Reduced positions 0 0
13F shares Current Prev Q Change
Total value 0 0
Total shares 0 0
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners Shares Value Change
Largest transactions Shares Bought/sold Change

Financial report summary

?
Risks
  • The ongoing outbreak and continued spread of COVID-19 throughout the United States and worldwide, may continue to adversely affect our business operations, employee availability, financial condition, liquidity and cash flow for an extended period of time.
  • In connection with the preparation of our annual financial statements for the year ended December 31, 2020, we identified a material weakness in our internal control over financial reporting, and that weakness has not been fully remediated as of December 31, 2021. Any continuing failure to maintain effective internal control over financial reporting could have a material adverse effect on our results of operations and financial position.
  • Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.
  • Global economic and market conditions may adversely affect our business, financial condition and operating results.
  • Our business requires substantial capital expenditures and we may not have access to the capital required to maintain and grow our operations.
  • We rely on international and domestic airplane travel, and the time that airline passengers spend in United States airports post-security. Continued lower demand for airline travel, a decrease in the desire of customers to buy spa services and products, or decreased time spent in airports would negatively impact XpresSpa’s operations.
  • We rely on a limited number of distributors and suppliers for certain of our products, and events outside our control may disrupt our supply chain, which could result in an inability to perform our obligations under our concession agreements and ultimately cause us to lose our concessions.
  • Our expansion into new airports or off-airport locations, and to the online marketplace, may present increased risks due to its unfamiliarity with those areas.
  • Our growth strategy is dependent in part on our ability to successfully identify and open new locations.
  • Our profitability relating to our operations depends on the number of airline passengers in the terminals in which we have concessions. Changes by airport authorities or airlines that lower the number of airline passengers in any of these terminals could affect our business, financial condition and results of operations.
  • We may not be able to execute our growth strategy to expand and integrate new concessions, our recently acquired entity or future acquisitions into our business or remodel existing concessions. Any new concessions, future acquisitions or remodeling of existing concessions may divert management resources, result in unanticipated costs, or dilute the ownership of our stockholders.
  • If the estimates and assumptions we use to determine the size of our market are inaccurate, our future growth rate may be impacted.
  • We currently rely on a skilled, licensed labor force to provide our services, and the supply of this labor force is finite. If we cannot hire adequate staff for our locations, we will not be able to operate.
  • Our business is subject to various laws and regulations, and changes in such laws and regulations, or failure to comply with existing or future laws and regulations, could adversely affect us.
  • Our labor force could unionize, putting upward pressure on labor costs.
  • We compete for new locations in airports and may not be able to secure new locations.
  • We may not be able to predict accurately or fulfill customer preferences or demands.
  • Our leases may be terminated, either for convenience by the landlord or as a result of an XpresSpa default.
  • Our ability to operate depends on the traffic patterns of the terminals in which we operate, and the cessation or disruption of air traveler traffic in these terminals would negatively impact XpresSpa’s addressable market.
  • We are dependent on our local partners.
  • Failure to comply with minimum airport concession disadvantaged business enterprise participation goals and requirements could lead to lost business opportunities or the loss of existing business.
  • Continued minimum wage increases could negatively impact our cost of labor.
  • Information technology systems failure or disruption, or changes to information technology related to payment systems, could impact our day-to-day operations.
  • If we are unable to protect our customers’ credit card data and other personal information, we could be exposed to data loss, litigation and liability, and our reputation could be significantly harmed.
  • Negative social media regarding XpresSpa could result in decreased revenues and impact XpresSpa’s ability to recruit workers.
  • We employ people in multiple different jurisdictions, and the employment laws of those jurisdictions are subject to change. In addition, our services are regulated through government-issued operating licenses. Noncompliance with applicable laws could result in employee lawsuits or legal action taken by government authorities.
  • We source, develop and sell products that may result in product liability defense costs and product liability payments.
  • We have commenced legal proceedings and/or licensing discussions with security, content distribution and/or telecommunications companies. We expect that licensing discussions may be time consuming and may either, absent any litigation we initiate, fail to lead to a license, or may result in litigations commenced by the potential licensee.
  • A court may find our patents invalid, not infringed or unenforceable and/or the USPTO or other relevant patent offices in various countries may either invalidate the patents or materially narrow the scope of their claims during the course of a reexamination, opposition or other such proceeding. In addition, even with a positive trial court verdict, the patents may be invalidated, found not infringed or rendered unenforceable on appeal. This risk may occur either presently or from time to time in connection with future litigations we may bring.
  • We and our subsidiaries have been, are, and may become involved in litigation that could divert management’s attention and harm our businesses.
  • New legislation, regulations or court rulings related to enforcing patents could harm our business and operating results.
  • Our failure or inability to protect the trademarks or other proprietary rights we use or claims of infringement by us of rights of third parties, could adversely affect our competitive position or the value of our brands.
  • Our recent acquisition of HyperPointe, and any future acquisitions or business opportunities, could involve unknown risks that could harm our business and adversely affect our financial condition and results of operations.
  • Stock prices can be volatile, and this volatility may depress the price of our common stock.
  • Our ability to raise additional capital through equity offerings is constrained due to relatively few authorized shares available for future issuance.
  • The exercise of a substantial number of warrants or options by our security holders may have an adverse effect on the market price of our common stock.
  • We have no current plans to pay dividends on our common stock, and our investors may not receive funds without selling their stock.
  • The market price of our common stock historically has been and likely will continue to be highly volatile.
  • Our failure to meet the continued listing requirements of The Nasdaq Capital Market could result in a delisting of our common stock.
  • Our common stock has historically traded in low volumes. We cannot predict whether an active trading market for our common stock will ever develop. Even if an active trading market develops, the market price of our common stock may be significantly volatile.
  • Anti-takeover provisions of Delaware law, provisions in our charter and bylaws, and our stockholder rights plan could prevent or frustrate attempts by stockholders to change our Board of Directors or current management and could delay, discourage or make more difficult a third-party acquisition of control of us.
  • Having availed ourselves of scaled disclosure available to smaller reporting companies, we cannot be certain if such reduced disclosure will make our common stock less attractive to investors.
  • Our confidential information may be disclosed by other parties.
  • We may fail to meet publicly announced financial guidance or other expectations about our business, which would cause our stock to decline in value.
Management Discussion
  • We recognize revenue from the sale of XpresSpa services when they are rendered at our stores and from the sale of products at the time goods are purchased at our stores or online (usually by credit card), net of discounts and applicable sales taxes. Significant number of our spa locations remain closed and therefore generate little revenue. Other revenue primarily represents fees earned through strategic partnerships and product placement arrangement in our spas.  
  • Through our XpresCheck Wellness Centers and under the terms of the Managed Services Agreement (“MSA”) with PLLCs that in turn contract with physicians and nurse practitioners, we offer testing services to airline employees, contractors, concessionaire employees, TSA officers and U.S. Customs and Border Protection agents, as well as the traveling public. We have entered into MSAs with PLLCs that provide healthcare services to patients. Under the terms of the MSAs which may be modified according for commercial reasonableness and fair market value, XpresTest provides office space, equipment, supplies, non-licensed staff, and management services to be used for the purpose of COVID-19 and other medical diagnostic testing in return for a management fee. However, as a result of uncertainties around the cash flows of the XpresCheck Wellness Centers, we concluded in 2020 that the collectability criteria to qualify as a contract under ASC 606 was not met, and therefore, revenue associated with the monthly management fee would not be recognized until a subsequent reassessment resulted in the MSAs meeting the collectability criteria.  XpresTest recognized revenue of $16,843 (including catch-up revenue of $3,186 for 2020) during the six months ended June 30, 2021, under the MSAs, pursuant to reassessments in 2021, of the MSAs executed in 2020 and amended in 2021, and assessments and reassessments of MSAs executed and amended in 2021 until June 30, 2021 resulting in management’s conclusion that they met the collectability criteria. Any revenue collected not meeting the collectability criteria was recorded as deferred revenue.  Effective, July 1, 2021 (see Note 4), we determined that the PLLCs are variable interest entities due to its equity holder having insufficient capital at risk, and we have a variable interest in the PLLCs. In pursuance, the total revenue of $50,689 for the PLLCs for the six months ended December 31, 2021 were designated as a revenue for us.
  • ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Content analysis

?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. freshman Avg
New words: departure, extend, extended, Monday, tradename
Removed: April, borrower, capitalized, collectability, customary, decreased, default, duration, extensively, forgiven, franchisee, franchising, lender, location, pending, qualify, receiving, relate, repayment, repurchased, request, system, trade, unaffiliated