XpresSpa Group Provides Business Update and Announces Third Quarter 2020 Financial Results
Company to Evolve into
Rapid COVID-19/ Rapid Flu/ Rapid Strep/ Rapid Mono Tests and Flu Vaccinations Now Offered as XpresCheck™ Continues to
Three XpresCheck Wellness Centers Currently Operating in the Northeast; Phoenix Sky Harbor International Airport Location to Open in late November, Other Wellness Centers in the Pipeline to Follow
Files SEC Form 10-Q for the Third Quarter ending
Conference Call and Webcast Scheduled for
XpresSpa Traditional Services
Existing XpresCheck Wellness Center Services
The Company launched the XpresCheck brand under its
XpresCheck has since built out more comprehensive health and wellness service capabilities and expects to continue to do so over time. In late October, the brand expanded its testing services beyond COVID-19 to include additional rapid testing services for other communicable diseases that include influenza, mononucleosis and group A streptococcus, supporting the health and wellbeing of airport and airlines employees and the traveling public. XpresCheck is also now offering this season’s 2020/21 flu vaccination as well as a quadrivalent high-dose flu vaccine recommended for seniors. All insurance plans are accepted outside of network and all information will remain private and HIPAA-compliant.
Upon FDA approval of a COVID-19 vaccine and availability, XpresCheck’s medical staff of state licensed physicians and nurse practitioners, who operate under a management service agreement, intend to be able to administer it to airport employees and travelers.
The Company will continue to grow XpresCheck, but based on the early air travel numbers that it is seeing unfold, the internal leadership team has started the concept work to develop a long term plan, bringing together its unique position of leveraging its historic Travel Wellness experience and new-found Healthcare expertise. The Company sees this upcoming concept evolution as a significant future opportunity to create a new niche industry where it can leverage its existing real estate, airport experience as well as technology to be a category leader in providing travelers with peace of mind.
The strategic brand pillars will be Health, Wellness and Travel which puts its experience and assets directly in the sweet spot of the intersection of these three categories. In Healthcare, the Company is differentiated because it is travel-focused and in airports, while in Wellness, the Company is differentiated because it is a travel industry retailer and expert. In Travel, the Company is differentiated because it has health and wellness experience and capabilities as well as the medical data it generates.
Current XpresCheck Wellness Center Footprint and Expansion Opportunity
June 22, 2020, the Company opened its first XpresCheck Wellness Centerat JFK International Airportin the Arrivals Hall of Terminal 4.
August 17, 2020, the Company opened its second XpresCheck Wellness Center, located at Newark Liberty International Airportin Terminal B.
October 9, 2020, the Company opened its third XpresCheck Wellness Center, located at Boston Logan International Airportin Terminal E.
- The Company will open its fourth
XpresCheck Wellness Center, and first on the West Coast, in late November. It will be located at Phoenix Sky Harbor International Airportin the Terminal E mall. This location will then be followed by additional openings through the end of December and throughout the spring.
There are approximately 30 major
The Company is in active discussions with multiple
The Company has also developed a substantially lower cost “pop up” clinic prototype that will be freestanding and non-structural while being regulatory compliant, offering a significantly faster approval and construction timeline. This is designed to unlock additional real estate opportunities and thereby accelerate the rollout of COVID-19 testing to additional airports. These units can be built for under
Other Business Updates
- As of
November 13, 2020, XpresCheck has been designated as a State of Hawaii Trusted Testing Partner. All travelers ages five and over are required to take a Nucleic Acid Amplification Test (NAAT) from a certified Clinical Laboratory Improvement Amendment (CLIA) lab in order to bypass the State of Hawaii’s 14-day mandatory quarantine. The State of Hawaiiaccepts test results only from Trusted Testing and Travel Partnersand tests must be taken no more than 72 hours before flight departure time.
- The Company is continuing to work with major airlines to support creation of other potential air bridges between
U.S.cities and international destinations, including, but not limited to, New Yorkto London.
- The Company is engaged in discussions with multiple emerging Health Passport Apps such as The CommonPass that would link COVID-19 test results from its partnered labs directly into these apps. Passengers would then be able to show their test results through these apps to airlines and destinations so as to ensure a hassle-free entry and avoid quarantines, where applicable. These emerging technologies will be deployed to current and future
XpresCheck Wellness Centersas soon as reasonably possible.
- The Company is lobbying elected officials and consulting with government agencies as its advocates specifically for COVID-19 testing funding at
U.S.airports as part of the next stimulus bill.
Liquidity and Financial Condition
During the nine months ended
The Company does not have any plans to raise capital at this time. It believes the continued improvement in quarterly cash burn rate, continued focus on managing expenses, and a healthy cash position should provide the Company sufficeint ability to execute its current business plan for at least the next 12 months.
Summary of Third Quarter 2020 Financial Results
Reported revenue during the three months ended
Explanation of Management Service Agreement
The Company entered into a management services agreement with a professional medical services company that provides health care services to patients in connection with the launch of the XpresCheck brand. The medical services company will pay XpresCheck a monthly fee to operate in the
Average Daily Patient Volume
Although the Company does not generate revenue directly from patient testing volume, as detailed above, in the interest of providing investors with greater transparency regarding the business model, the Company has opted to disclose recent and current average daily patient testing volumes.
During the third quarter 2020, average daily patient testing volume per
However, since the implementation of Rapid Testing for COVID-19 in early October and the subsequent expansion of other health and wellness services in late October, average patient testing volume has increased dramatically to approximately 50-100 per day.
Cost of Sales
Cost of sales decreased to
Impairment/Disposal of Assets
Impairment/disposal of assets expense increased to
General and Administrative Expenses
General and administrative expenses increased to
Loss from Operations
Operating loss from operations increased to
Net Loss Attributable to Common Shareholders
Net loss attributable to common shareholders was
Please refer to the Quarterly Report on Form on 10-Q filed on
Webcast and Conference Call Today
The Company will host a webcast and conference call at
The Company encourages investors and interested parties to listen via webcast as there is a limited capacity to access the conference call by dialing 1-201-689-8263.
The live and later archived webcast can be accessed from the Investor Relations section of the Company’s website at http://xpresspagroup.com. Visitors to the website should select the “Investors” tab and navigate to the “Events” link to access the webcast.
This press release may contain "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These include statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "estimates," "projects," "intends," "should," "seeks," "future," "continue," or the negative of such terms, or other comparable terminology. Forward-looking statements relating to expectations about future results or events are based upon information available to
Source: XpresSpa Group, Inc.