XWELHIGH SIGNALFINANCIAL10-K

XWELL's balance sheet contracted significantly with total assets declining from $25.4M to $11.2M while liabilities increased, indicating substantial financial deterioration.

The company faces mounting financial stress as evidenced by the sharp reduction in current assets alongside rising current liabilities, creating potential liquidity concerns. The substantial increase in outstanding shares from 5.3M to 7.9M suggests recent equity dilution, likely reflecting emergency capital raising efforts to address the deteriorating financial position.

Comparing 2026-04-01 vs 2025-04-15View on EDGAR →
FINANCIAL ANALYSIS

XWELL's financial profile weakened considerably, with total assets falling 55.8% to $11.2M while total liabilities rose 35.1% to $23.8M, compressing the company's equity cushion. Current assets dropped 61.5% while current liabilities increased nearly 40%, creating a concerning liquidity dynamic. Despite reducing total debt by $2.1M, interest expense grew substantially, and the company increased capital expenditures to $3.0M, suggesting continued investment amid financial constraints.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
+66.2%
$1.8M$3.0M

Capital expenditure jumped 66.2% — major investment cycle underway; assess returns on deployment.

Current Assets
Balance Sheet
-61.5%
$15.3M$5.9M

Current assets declined 61.5% — monitor working capital adequacy and short-term liquidity.

Interest Expense
P&L
+58.7%
$1.8M$2.9M

Interest expense surged 58.7% — significant debt increase or rising rates materially impacting earnings.

Total Assets
Balance Sheet
-55.8%
$25.4M$11.2M

Total assets contracted 55.8% — asset sales, write-downs, or balance sheet optimization underway.

Cash & Equivalents
Balance Sheet
-42.5%
$4.5M$2.6M

Cash declined 42.5% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

R&D Expense
P&L
-41.2%
$1.5M$889K

R&D spending cut 41.2% — could signal cost discipline or concerning reduction in innovation investment.

Current Liabilities
Balance Sheet
+39.8%
$9.2M$12.9M

Current liabilities surged 39.8% — significant near-term obligations; verify ability to meet short-term debt.

Total Debt
Balance Sheet
-36.6%
$5.7M$3.6M

Debt reduced 36.6% — deleveraging strengthens balance sheet and reduces financial risk.

Total Liabilities
Balance Sheet
+35.1%
$17.6M$23.8M

Liabilities grew 35.1% — significant increase in debt or obligations, assess impact on financial flexibility.

SG&A Expense
P&L
+27.6%
$12.5M$16.0M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

LANGUAGE CHANGES
NEW — 2026-04-01
PRIOR — 2025-04-15
ADDED
As of March 26, 2026, 7,926,766 shares of the registrant s common stock are outstanding.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 50 PART III 51 ITEM 10.
BUSINESS Overview XWELL is a global wellness organization dedicated to delivering restorative and health-focused services to travelers through its three reportable operating segments: XpresSpa , XpresTest , and Naples Wax Center .
As of December 31, 2025, there were 16 domestic XpresSpa locations in total.
The Company also had 9 international locations operating as of December 31, 2025, including 2 XpresSpa locations in the Dubai International Airport in the United Arab Emirates, 1 XpresSpa location in the Zayad International Airport in Abu Dhabi, United Arab Emirates, 2 XpresSpa locations in the Schiphol Amsterdam Airport in the Netherlands and 4 XpresSpa locations in the Istanbul Airport in Turkey.
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REMOVED
As of April 11, 2025, 5,261,024 shares of the registrant s common stock are outstanding.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 45 PART III 46 ITEM 10.
BUSINESS Overview XWELL is a global wellness company operating multiple brands and focused on bringing restorative, regenerative and reinvigorating products and services to travelers.
As of December 31, 2024, there were 18 domestic XpresSpa locations in total comprised of 17 Company-owned locations and one franchise.
The Company also had 10 international locations operating as of December 31, 2024, including two XpresSpa locations in the Dubai International Airport in the United Arab Emirates, one XpresSpa location in the Zayad International Airport in Abu Dhabi, United Arab Emirates, three XpresSpa locations in the Schiphol Amsterdam Airport in the Netherlands and four XpresSpa locations in the Istanbul Airport in Turkey.
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