0001558370-21-015938 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2021	Nov. 05, 2021
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-34785
Entity Registrant Name	XpresSpa Group, Inc.
Entity Central Index Key	0001410428
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-4988129
Entity Address, Address Line One	254 West 31st Street
Entity Address, Address Line Two	11th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10001
City Area Code	(212)
Local Phone Number	309-7549
Title of 12(b) Security	Common Stock
Trading Symbol	XSPA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		105,662,421
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents (including $1,080 of variable interest entities (see note 3) as of September 30, 2021)	$ 109,161	$ 89,801
Accounts receivable, net	64
Inventory	2,040	657
Other current assets	1,835	1,321
Total current assets	113,100	91,779
Restricted cash	751	701
Property and equipment, net	4,532	4,161
Intangible assets, net	2,725	870
Operating lease right of use assets	5,667	3,034
Other assets	2,502	2,588
Total assets	129,277	103,133
Current liabilities
Accounts payable, accrued expenses and other	8,724	6,468
Current portion of operating lease liabilities	2,797	2,797
Deferred revenue	24	914
Current portion of promissory note, unsecured	5,653	3,298
Total current liabilities	17,198	13,477
Long-term liabilities
Promissory note, unsecured		2,355
Operating lease liabilities	8,156	6,930
Total liabilities	25,354	22,762
Commitments and contingencies (see Note 14)
Equity
Common Stock, $0.01 par value per share, 150,000,000 shares authorized; 105,327,379 and 94,058,853 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively	1,053	941
Additional paid-in capital	493,814	475,709
Accumulated deficit	(398,550)	(398,624)
Accumulated other comprehensive loss	(283)	(220)
Total equity attributable to XpresSpa Group, Inc.	96,034	77,806
Noncontrolling interests	7,889	2,565
Total equity	103,923	80,371
Total liabilities and equity	129,277	103,133
Series A Convertible Preferred Stock
Equity
Preferred stock
Series C Junior Preferred Stock
Equity
Preferred stock
Series D Convertible Preferred Stock
Equity
Preferred stock
Series F Convertible Preferred Stock
Equity
Preferred stock

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets	$ 129,277	$ 103,133
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	150,000,000	150,000,000
Common stock, issued	105,327,379	94,058,853
Common stock, outstanding	105,327,379	94,058,853
Variable Interest Entity, Primary Beneficiary
Assets	$ 1,080
Series A Convertible Preferred Stock
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized	6,968	6,968
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Series C Junior Preferred Stock
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized	300,000	300,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Series D Convertible Preferred Stock
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized	500,000	500,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Series E Convertible Preferred Stock
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized	2,397,060	2,397,060
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Series F Convertible Preferred Stock
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized	9,000	9,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue, net
Total revenue, net	$ 26,767	$ 201	$ 44,371	$ 8,062
Cost of sales
Labor	4,277	514	7,419	5,480
Occupancy	587	468	1,511	2,334
Products and other operating costs	8,798	423	16,592	1,737
Total cost of sales	13,662	1,405	25,522	9,551
Depreciation and amortization	852	1,424	2,542	3,875
Impairment/disposal of assets		2,227	22	6,319
General and administrative	5,196	4,368	14,350	10,972
Total operating expenses	19,710	9,424	42,436	30,717
Operating income (loss)	7,057	(9,223)	1,935	(22,655)
Interest income (expense), net	6	(120)	31	(1,856)
Loss on revaluation of warrants and conversion options		2,750		(50,917)
Other non-operating expense, net	(381)	(47)	(830)	(389)
Income (loss) before income taxes	6,682	(6,640)	1,136	(75,817)
Income tax expense	(87)	(3)	(79)	(22)
Net income (loss)	6,595	(6,643)	1,057	(75,839)
Net ( income) loss attributable to noncontrolling interests	(998)	533	(983)	1,034
Net income (loss) attributable to XpresSpa Group, Inc.	5,597	(6,110)	74	(74,805)
Net( income) loss	6,595	(6,643)	1,057	(75,839)
Other comprehensive (loss) income from operations	(52)	18	(63)	33
Comprehensive income (loss)	$ 6,543	$ (6,625)	$ 994	$ (75,806)
Earnings / Loss per share
Basic net income (loss) per share (in dollar per share)	$ 0.05	$ (0.10)		$ (2.15)
Diluted net income (loss) per share (in dollar per share)	$ 0.05	$ (0.10)		$ (2.15)
Weighted-average number of shares outstanding during the period
Basic (in shares)	105,531,418	61,106,894	103,950,731	35,309,004
Diluted (in shares)	105,957,317	61,106,894	104,301,344	35,309,004
Managed services fees
Revenue, net
Total revenue, net			$ 16,843
Patient revenue
Revenue, net
Total revenue, net	$ 25,351		25,351
Services
Revenue, net
Total revenue, net	1,158	$ 93	1,761	$ 6,779
Products
Revenue, net
Total revenue, net	$ 258	45	402	936
Other
Revenue, net
Total revenue, net		$ 63	$ 14	$ 347

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Preferred stock Series E Convertible Preferred Stock [Member]	Preferred stock Series F Convertible Preferred Stock [Member]	Common Stock Series E Convertible Preferred Stock [Member]	Common Stock Series F Convertible Preferred Stock [Member]	Common Stock May 2018 Class A Warrants	Common Stock Class A Warrants	Common Stock Class D Warrants	Common Stock Calm Warrants	Common Stock Pre-Funded Warrants [Member]	Common Stock B3D Note [Member]	Common Stock	Additional paid-in capital Series E Convertible Preferred Stock [Member]	Additional paid-in capital Series F Convertible Preferred Stock [Member]	Additional paid-in capital May 2018 Class A Warrants	Additional paid-in capital Class A Warrants	Additional paid-in capital Class D Warrants	Additional paid-in capital Calm Warrants	Additional paid-in capital Pre-Funded Warrants [Member]	Additional paid-in capital B3D Note [Member]	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive loss	Total Company equity (deficit) Series E Convertible Preferred Stock [Member]	Total Company equity (deficit) Series F Convertible Preferred Stock [Member]	Total Company equity (deficit) May 2018 Class A Warrants	Total Company equity (deficit) Class A Warrants	Total Company equity (deficit) Calm Warrants	Total Company equity (deficit) Pre-Funded Warrants [Member]	Total Company equity (deficit) B3D Note [Member]	Total Company equity (deficit)	Non-controlling interests	Series E Convertible Preferred Stock [Member]	Series F Convertible Preferred Stock [Member]	May 2018 Class A Warrants	Class A Warrants	Calm Warrants	Pre-Funded Warrants [Member]	B3D Note [Member]	Total
Balance at Dec. 31, 2019	$ 10										$ 52									$ 302,118	$ (308,136)	$ (283)								$ (6,239)	$ 3,703								$ (2,536)
Preferred Stock, Shares Outstanding, Beginning Balance at Dec. 31, 2019	977,865	8,996
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2019											5,157,390
Exercise of Warrants into Common Stock					$ 26									$ 3,096											$ 3,122									$ 3,122
Exercise of Warrants into Common Stock (in shares)					2,578,455
Conversion of Stock and Notes into Common Stock				$ 9						$ 14			$ (9)						$ 1,321					$ 0					$ 1,335				$ 0					$ 1,335
Conversion of Stock and Notes into Common Stock (in shares)		(7,465)		930,326						1,430,647
Issuances of Common Stock for payment of interest on Note										$ 2									418										420									420
Issuances of Common Stock for payment of interest on Note (in shares)										236,077
Issuance of Series E Convertible Preferred Stock												$ 63											$ 63									$ 63
Stock issued during period series E convertible preferred stock (Shares)	10,123
Direct offerings of Common Stock and pre-funded warrants, net of costs											$ 82									4,176										4,258									4,258
Direct offerings of Common Stock and pre-funded warrants, net of costs (in shares)											8,210,239
Issuance of Common Stock for services											$ 1									134										135									135
Issuance of Common Stock for services (in shares)											58,333
Stock-based compensation																				72										72									72
Net income for the period																					(10,617)									(10,617)	(108)								(10,725)
Contributions from noncontrolling interests																															117								117
Balance at Mar. 31, 2020	$ 10										$ 186									311,389	(318,753)	(283)								(7,451)	3,712								(3,739)
Preferred Stock, Shares Outstanding, Ending Balance at Mar. 31, 2020	987,988	1,531
Common Stock, Shares, Outstanding, Ending Balance at Mar. 31, 2020											18,601,467
Balance at Dec. 31, 2019	$ 10										$ 52									302,118	(308,136)	(283)								(6,239)	3,703								(2,536)
Preferred Stock, Shares Outstanding, Beginning Balance at Dec. 31, 2019	977,865	8,996
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2019											5,157,390
Net income for the period																																							(75,839)
Balance at Sep. 30, 2020											$ 691									438,214	(382,941)	(250)								55,714	2,657								58,371
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2020											69,076,888
Balance at Mar. 31, 2020	$ 10										$ 186									311,389	(318,753)	(283)								(7,451)	3,712								(3,739)
Preferred Stock, Shares Outstanding, Beginning Balance at Mar. 31, 2020	987,988	1,531
Common Stock, Shares, Outstanding, Beginning Balance at Mar. 31, 2020											18,601,467
Exercise of Warrants into Common Stock					$ 24			$ 16	$ 2					$ 5,891			$ 4,092	$ 4							$ 5,915		$ 4,108	$ 6						$ 5,915		$ 4,108	$ 6
Exercise of Warrants into Common Stock (in shares)					2,382,835			1,622,149	201,667
Warrant Exchange for Common Stock						$ 24	$ 5	$ 21							$ 6,410	$ (5)	11,734									$ 6,434	11,755								$ 6,434	11,755
Warrant Exchange for Common Stock (in shares)						2,385,528	527,669	2,062,126
Conversion of Stock and Notes into Common Stock	$ (10)		$ 5	$ 3				$ 48		$ 108		$ 5	$ (3)				$ 10,551		14,197								$ 10,599		14,305							$ 10,599		14,305
Conversion of Stock and Notes into Common Stock (in shares)	(987,988)	(1,531)	510,460	291,619				4,761,906		10,789,591
Issuances of Common Stock for payment of interest on Note										$ 1									$ 41										$ 42									$ 42
Issuances of Common Stock for payment of interest on Note (in shares)										88,508
Direct offerings of Common Stock and pre-funded warrants, net of costs											$ 122									38,275										38,397									38,397
Direct offerings of Common Stock and pre-funded warrants, net of costs (in shares)											12,235,911
Issuance of restricted stock (in shares)											12,500
Stock-based compensation																				424										424									424
Distributions to noncontrolling interests																															(129)								(129)
Fractional shares retired in reverse stock split											(23)
Net income for the period																					(58,078)									(58,078)	(393)								(58,471)
Foreign currency translation																						15								15									15
Balance at Jun. 30, 2020											$ 565									403,005	(376,831)	(268)								26,471	3,190								29,661
Common Stock, Shares, Outstanding, Ending Balance at Jun. 30, 2020											56,473,913
Conversion of Stock and Notes into Common Stock											$ 13									3,350										3,363									3,363
Conversion of Stock and Notes into Common Stock (in shares)											1,276,270
Issuances of Common Stock for payment of interest on Note																				35										35									35
Issuances of Common Stock for payment of interest on Note (in shares)											47,305
Direct offerings of Common Stock and pre-funded warrants, net of costs											$ 112									31,350										31,462									31,462
Direct offerings of Common Stock and pre-funded warrants, net of costs (in shares)											11,216,932
Issuance of restricted stock											$ 1									(1)
Issuance of restricted stock (in shares)											58,301
Stock-based compensation																				470										470									470
Stock option exercises																				5										5									5
Stock option exercises (in shares)											4,167
Net income for the period																					(6,110)									(6,110)	(533)								(6,643)
Foreign currency translation																						18								18									18
Balance at Sep. 30, 2020											$ 691									438,214	(382,941)	(250)								55,714	2,657								58,371
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2020											69,076,888
Balance at Dec. 31, 2020											$ 941									475,709	(398,624)	(220)								77,806	2,565								$ 80,371
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2020											94,058,853																												94,058,853
Exercise of Warrants into Common Stock											$ 112									16,895										17,007									$ 17,007
Exercise of Warrants into Common Stock (in shares)											11,223,529
Stock-based compensation																				264										264	741								1,005
Net income for the period																					(1,056)									(1,056)	248								(808)
Foreign currency translation																						(16)								(16)									(16)
Contributions from noncontrolling interests																															333								333
Balance at Mar. 31, 2021											$ 1,053									492,868	(399,680)	(236)								94,005	3,887								97,892
Common Stock, Shares, Outstanding, Ending Balance at Mar. 31, 2021											105,282,382
Balance at Dec. 31, 2020											$ 941									475,709	(398,624)	(220)								77,806	2,565								$ 80,371
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2020											94,058,853																												94,058,853
Stock option exercises (in shares)																																							8,334
Repurchase and retirement of common stock																																							$ (450)
Repurchase and retirement of common stock (in shares)																																							250,000
Net income for the period																																							$ 1,057
Balance at Sep. 30, 2021											$ 1,053									493,814	(398,550)	(283)								96,034	7,889								$ 103,923
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2021											105,327,379																												105,327,379
Balance at Mar. 31, 2021											$ 1,053									492,868	(399,680)	(236)								94,005	3,887								$ 97,892
Common Stock, Shares, Outstanding, Beginning Balance at Mar. 31, 2021											105,282,382
Issuance of Common Stock for services											$ 2									318										320									320
Issuance of Common Stock for services (in shares)											223,637
Issuance of restricted stock (in shares)											27,983
Stock-based compensation																				267										267	61								328
Net income for the period																					(4,467)									(4,467)	(263)								(4,730)
Foreign currency translation																						5								5									5
Redemptions of certain noncontrolling interests																															(133)								(133)
Balance at Jun. 30, 2021											$ 1,055									493,453	(404,147)	(231)								90,130	3,552								93,682
Common Stock, Shares, Outstanding, Ending Balance at Jun. 30, 2021											105,534,002
Issuance of Common Stock for services																				29										29									29
Consolidation of Variable Interest Entities																															4,307								4,307
Issuance of restricted stock (in shares)											35,043
Stock-based compensation																				767										767	23								790
Distributions to noncontrolling interests																															(991)								(991)
Stock option exercises																				13										13									13
Stock option exercises (in shares)											8,334
Repurchase and retirement of common stock											$ (2)									(448)										(450)									$ (450)
Repurchase and retirement of common stock (in shares)											(250,000)																												250,000
Net income for the period																					5,597									5,597	998								$ 6,595
Foreign currency translation																						(52)								(52)									(52)
Balance at Sep. 30, 2021											$ 1,053									$ 493,814	$ (398,550)	$ (283)								$ 96,034	$ 7,889								$ 103,923
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2021											105,327,379																												105,327,379

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical)	Jun. 11, 2020
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
Reverse stock split, conversion ratio	0.33

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities
Net income (loss)	$ 1,057	$ (75,839)
Adjustments to reconcile net loss to net cash used in operating activities:
Revaluation of warrants and conversion options		50,917
Depreciation and amortization	2,542	3,875
Impairment/disposal of assets	22	6,319
Accretion of debt discount on notes		1,070
Amortization of operating lease right of use asset	1,162	1,568
Issuance of shares of Common Stock for payment of interest		497
Issuance of shares of Series E Preferred Stock for payment of interest		63
Loss on the extinguishment of debt		182
Issuance of shares of Common Stock for services	349	135
Amortization of debt issuance costs		125
Stock-based compensation	2,123	966
Loss on equity investment	716
Changes in assets and liabilities:
(Increase) decrease in inventory	(1,385)	9
Decrease in accounts receivable, net	74
Decrease in deferred revenue	(890)
Other assets, current and non-current	519	(376)
Other liabilities, current and non-current	(3,035)	(4,286)
Increase (decrease) in accounts payable	2,713	(2,231)
Net cash provided by (used) in operating activities	5,967	(16,926)
Cash flows from investing activities
Acquisition of property and equipment	(2,650)	(3,099)
Cash acquired on consolidations of certain Variable Interest Entities	2,434
Acquisition of software	(2,156)	(380)
Net cash used in investing activities	(2,372)	(3,479)
Cash flows from financing activities
Proceeds from direct offerings of Common Stock and warrants exercises, net of costs	17,007	74,125
Proceeds from borrowings under Paycheck Protection Program		5,653
Proceeds from additional borrowing from B3D		500
Proceeds from stock option exercises	13	5
Proceeds from funding advance		910
Repayment of funding advance		(819)
Redemption of non-controlling interests	(133)
Repurchase of Common Stocks	450
Contributions from noncontrolling interests	333	117
Distributions to noncontrolling interests	(991)	(129)
Net cash provided by financing activities	15,779	80,362
Effect of exchange rate changes on cash, cash equivalents and restricted cash	36	3
Increase in cash, cash equivalents and restricted cash	19,410	59,960
Cash, cash equivalents, and restricted cash at beginning of the period	90,502	2,635
Cash, cash equivalents, and restricted cash at end of the period	$ 109,912	62,595
Cash paid during the period for
Interest		187
Income taxes		11
Non-cash investing and financing transactions
Exercise and exchanges of May 2018 Class A Warrants		15,471
Conversion of Series E Preferred Stock into Common Stock		10
Conversion of Series F Preferred Stock into Common Stock		12
B3D Conversion Option
Non-cash investing and financing transactions
Conversions of Note and stock into Common Stock		19,003
Calm Notes
Non-cash investing and financing transactions
Conversions of Note and stock into Common Stock		10,599
Calm Warrants
Non-cash investing and financing transactions
Conversions of Note and stock into Common Stock		$ 15,863

General

9 Months Ended

Sep. 30, 2021

General

General

Note 1. General

Overview

XpresSpa Group, Inc. (“XpresSpa Group or the “Company”) is a leading global travel health and wellness services holding company. XpresSpa Group currently has three reportable operating segments: XpresSpa™, XpresTest™, and Treat™ brand.

XpresSpa has been a global airport retailer of spa services through its XpresSpa™ spa locations, offering travelers premium spa services, including massage, nail and skin care, as well as spa and travel products (“XpresSpa”).

Through XpresSpa Group’s subsidiary, XpresTest, Inc. (“XpresTest”), the Company launched XpresCheck™ Wellness Centers, also in airports. XpresCheck offers COVID-19 and other medical diagnostic testing services to the traveling public, as well as airline, airport and concessionaire employees, and TSA and U.S. Customs and Border Protection agents. XpresTest has entered into managed services agreements (“the MSAs”) with Professional Corporation or Professional Limited Liability Companies (“PCs”) that provide health care services to patients. PCs pay XpresTest a monthly fee to operate in the XpresCheck Wellness Centers. Under the terms of the MSAs, the Company provides office space, equipment, supplies, non-licensed staff, and management services in return for a management fee. PCs arrange requisite COVID-19 and other medical diagnostic testing services through contracting with physicians and other medical professional providers to render these COVID-19 and other medical diagnostic testing services.

XpresSpa Group is developing Treat™, a travel health and wellness brand that is positioned for a post-pandemic world. The Company anticipates delivering on-demand access to integrated healthcare through technology and personalized services, while leveraging XpresSpa’s historic travel wellness experience and XpresTest’s healthcare expertise under the XpresCheck brand. The Company sees this concept evolution as an opportunity in a new niche industry where XpresSpa Group can leverage technology in addition to its existing real estate and airport experience, providing travelers with peace of mind and access to integrated care. Over the long-term, we envision that digital channels will provide growth opportunities beyond the Company’s airport locations, achieved through subscription-based services that provide care and tools supporting travel health and wellness. Furthermore, the Company anticipates offering upstream content that can be monetized through affiliate revenue as well as curated retail through ecommerce through the Company’s dedicated website, www.treatcare.com launched during the second quarter of 2021, later converting to www.treat.com during the third quarter of 2021.

Basis of Presentation and Principles of Consolidation

The unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and the instructions to Article 8-03 of Regulation S-X, and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as amended. The condensed consolidated balance sheet as of December 31, 2020 was derived from the audited annual financial statements but does not include all information required by GAAP for annual financial statements. The financial statements include the accounts of the Company, all entities that are wholly owned by the Company, and all entities in which the Company has a controlling financial interest as well as variable interest entities of which we are the primary beneficiary. All adjustments that, in the opinion of management, are necessary for a fair presentation for the periods presented have been reflected by the Company. Such adjustments are of a normal, recurring nature. The results of operations for the three and nine months periods ended September 30, 2021 are not necessarily indicative of the results that may be expected for the entire fiscal year or for any other interim period. All significant intercompany balances and transactions have been eliminated in consolidation.

Recent Developments

Effect of Novel Coronavirus (COVID-19) on Business

In March 2020, the Company temporarily closed all global XpresSpa locations due to the categorization by local jurisdictions of the spa locations as “non-essential services.” A majority of the Company’s XpresSpa locations remain closed. The Company intends to reopen XpresSpa spa locations on a location-by-location basis and resume normal operations at such selected locations once restrictions are lifted and airport traffic returns to sufficient levels to support operations at a unit level. Between June 28^th, 2021 and July 1^st, 2021, the Company re-opened its four top performing XpresSpa™ locations with modified hours and top selling services: Hartsfield-Jackson Atlanta International Airport (ATL) Concourse A, Dallas/Fort Worth International Airport (DFW) Concourse A, Charlotte Douglas International Airport (CLT) Concourse D, and Las Vegas McCarran International Airport (LAS) Concourse D. There are also three XpresSpa locations operating in Dubai International Airport in the United Arab Emirates as well as three XpresSpa locations operating in Schiphol Amsterdam Airport in the Netherlands.

During the third quarter of 2021, the Company re-opened following XpresSpa™ locations with modified hours and top selling services:

●

John F. Kennedy International Airport (JFK) on September 16, 2021;

●

Charlotte Douglas International Airport (CLT) Concourse A/B on September 20, 2021.

During the fourth quarter of 2021 to date, the Company re-opened the following XpresSpa™ locations with modified hours and top selling services:

●

Hartsfield-Jackson Atlanta International Airport (ATL) Concourse C on October 14, 2021;

●

Orlando International Airport (MCO) on October 18, 2021;

●

Dallas/Fort Worth International Airport (DFW) Concourse D on October 23, 2021;

●

William P. Hobby Airport (HOU) on November 8, 2021.

A majority of the domestic XpresSpa locations are operating approximately eight hours per day (compared to 16 hours pre-pandemic) with sales volumes about 30% to 60% of pre-pandemic levels. The Company implemented a price increase in mid-October and is planning to test some new touchless massage services and new retail items during the fourth quarter.

The Company will re-evaluate each airport on a month-by-month basis as well as review continued learnings as the portfolio is re-activated. An additional two XpresSpa reopenings are planned for the remainder of the year.

Since the beginning of that temporary closure, the Company successfully launched its XpresCheck™ Wellness Centers, offering such testing services, as described above and below. Also, the Company continues to evaluate alternative testing protocols and work in partnership with airlines for safe travels.

While management has used all currently available information in assessing its business prospects, the ultimate impact of the COVID-19 pandemic and the Company’s XpresCheck™ Wellness Centers on its results of operations, financial condition and cash flows remains uncertain. The success or failure of the Company’s XpresCheck™ Wellness Centers could also have a material effect on the Company’s business.

XpresCheck™ Wellness Centers

Through the Company’s XpresCheck™ Wellness Centers and under the terms of the MSAs with physicians’ practices, the Company offers testing services from the Company’s 14 XpresCheck™ Wellness Centers at 12 Airports in 11 states to airline employees, contractors, concessionaire employees, TSA officers and U.S. Customs and Border Protection agents, as well as the traveling public. The Company has entered into MSAs with professional medical service entities that provide healthcare services to patients. Under the terms of the MSAs, 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. Since December 31, 2020, the Company announced the opening of the following XpresCheck™ Wellness Centers to provide diagnostic COVID-19 testing:

●

On January 12, 2021, the Company opened its second XpresCheck™ Wellness Center at Boston’s Logan International Airport. It contains four separate testing rooms to provide diagnostic COVID-19 testing.

●

On January 20, 2021, the Company announced the opening of an XpresCheck™ Wellness Center at Salt Lake City International Airport. It contains four separate testing rooms to provide diagnostic COVID-19 testing.

●

On February 16, 2021, the Company announced the opening of an XpresCheck™ Wellness Center of the Company’s second XpresCheck™ testing facility at Newark Liberty International Airport. It contains four separate testing rooms to provide diagnostic COVID-19 testing.

●

On March 8, 2021, the Company announced the opening of an XpresCheck™ Wellness Center at Houston George Bush Intercontinental Airport. It contains four separate testing rooms to provide diagnostic COVID-19 testing.

●

On March 15, 2021, the Company announced the opening of XpresCheck™ Wellness Centers at Dulles International and Reagan National Airports in Virginia, containing nine and four separate testing rooms, respectively, to provide diagnostic COVID-19 testing.

●

On April 8, 2021, the Company announced the opening of an XpresCheck™ Wellness Center at Seattle-Tacoma International Airport. It contains eight separate testing rooms to provide diagnostic COVID-19 testing.

●

On April 21, 2021, the Company announced the opening of an XpresCheck™ Wellness Center at San Francisco International Airport. It contains nine separate testing rooms to provide diagnostic COVID-19 testing.

●

On October 13, 2021, the Company opened an XpresCheck™ Wellness Center at Hartsfield-Jackson Atlanta International Airport (ATL) Concourse E. It contains six separate testing rooms to provide diagnostic COVID-19 testing.

Airport Rent Concessions

The Company has received rent concessions from landlords on a majority of our leases, allowing for the relief of minimum guaranteed payments in exchange for percentage-of-revenue rent or providing relief from rent through payment deferrals. Currently, the periods of relief from these payments, which began in March 2020, range from three to twenty-eight months. The Company received minimum guaranteed payment concessions of approximately $585 and $611 in the three months ended September 30, 2021 and 2020, respectively, $1,568 and $1,379 in the nine months ended September 30, 2021 and 2020, respectively, and $3,600 in the eighteen months ended September 30, 2021. The Company expects to realize additional rent concessions while a majority of its spas remain closed.

Liquidity and Financial Condition

As of September 30, 2021, the Company had cash and cash equivalents, excluding restricted cash, of $109,161, total current assets of $113,100, total current liabilities of $17,198 and positive working capital of $95,902, compared to a positive working capital of $78,302 as of December 31, 2020.

During the nine months ended September 30, 2021, holders of the Company’s December 2020 Investor Warrants, December 2020 Placement Agent Warrants and December 2020 Placement Agent Tail Fee Warrants exercised a total of 11,223,529 warrants for common shares. The Company received gross proceeds of approximately $19,161. In accordance with the placement agent agreements with H.C. Wainwright & Co., LLC and Palladium, the Company paid cash fees of

$2,154 and issued 842,588 warrants to H.C. Wainwright & Co., LLC at an exercise price of $2.125 per share and 325,500 warrants to Palladium at an exercise price of $1.70 per share. See Note 11. Stockholders’ Equity for related discussion.

Significant Accounting and Reporting Policies

9 Months Ended

Sep. 30, 2021

Significant Accounting and Reporting Policies

Significant Accounting and Reporting Policies

Note 2. Significant Accounting and Reporting Policies

(a) Variable Interest Entities

The Company evaluates its ownership, contractual, pecuniary, and other interests in entities to determine if it has any variable interest in a variable interest entity (“VIE”). These evaluations are complex and involve judgment. If the Company determines that an entity in which it holds a contractual or ownership interest is a VIE and that the Company is the primary beneficiary, the Company consolidates such entity in its consolidated financial statements. The primary beneficiary of a VIE is the party that meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Management performs ongoing reassessments of whether changes in the facts and circumstances regarding the Company’s involvement with a VIE will cause the consolidation conclusion to change. Changes in consolidation status are applied prospectively.

(b) Revenue Recognition Policy

The Company recognizes revenue from the sale of XpresSpa products and services when the services are rendered at XpresSpa stores and from the sale of products at the time products are purchased at the Company’s stores or online usually by credit card, net of discounts and applicable sales taxes. Accordingly, the Company recognizes revenue for the Company’s single performance obligation related to both in-store and online sales at the point at which the service has been performed or the control of the merchandise has passed to the customer. Revenues from the XpresSpa retail and e-commerce businesses are recorded at the time goods are shipped.

Through its XpresCheck™ Wellness Centers and under the terms of the Managed Services Agreement (“MSA”) with PCs that in turn contract with physicians and Nurse Practitioners, the Company offers testing services to airline employees, contractors, concessionaire employees, TSA officers and U.S. Customs and Border Protection agents, as well as the traveling public. The Company has entered into MSAs with PCs that provide healthcare services to patients. Under the terms of the MSAs which may be modified 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, the Company 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 3), the Company determined that the PCs are variable interest entities due to its equity holder having insufficient capital at risk, and the Company has a variable interest in the PCs. In pursuance, the total revenue of $25,351 for the PCs for the three months ended September 30, 2021 were designated as revenue for the company.

During the third quarter of 2021, the Company has been authorized to proceed with a $2,000, 8-week pilot program with the Centers for Disease Control and Prevention (CDC) through the Company’s niche in XpresCheck™ COVID-19 testing. Under the 8-week pilot program, conducted in collaboration with Concentric by Ginkgo, XpresCheck™ will conduct biosurveillance monitoring, initially from India, at three major U.S. airports operating XpresCheck™ COVID-19 testing facilities, which will be aimed at identifying existing and new SARS-CoV-2 variants, including the highly contagious

Delta variant and other new variants surfacing in the U.S. The revenue on this contract which is based on certain milestones specified in the contract, would be booked through the 5 steps criteria of ASC 606 as and when a particular milestone is reached, pursuant to which the Company expects to recognize approximately $1,500 which is 75% of the contract consideration during the fourth quarter of 2021.

The Company has a franchise agreement with an unaffiliated franchisee to operate an XpresSpa location. Under the Company’s franchising model, all initial franchising fees relate to the franchise right, which is a single performance obligation that transfers over time. Upon receipt of the non-recurring, non-refundable initial franchise fee, management records a deferred revenue liability and recognizes revenue on a straight-line basis over the life of the franchise agreement.

The Company has also entered into collaborative agreements with marketing partners whereby it sells certain of its partners’ products in the Company’s XpresSpa spas. The Company acts as an agent for revenue recognition purposes and therefore records revenue net of the revenue share payable to the partners. Upon receipt of the non-recurring, non-refundable initial collaboration fee, management records a deferred revenue liability and recognizes revenue on a straight-line basis over the life of the collaboration agreement.

The Company excludes all sales taxes assessed to the Company’s customers from revenue. Sales taxes assessed on revenues are included in Accounts payable, accrued expenses and other on the Company’s condensed consolidated balance sheets until remitted to state agencies.

Accounting Standards Update No. 2020-06—Debt--Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)

Issued in August 2020, this update is intended to reduce the unnecessary complexity of the current guidance thus resulting in more accurate accounting for convertible instruments and consistent treatment from one entity to the next. Under current GAAP, there are five accounting models for convertible debt instruments. Except for the traditional convertible debt model that recognizes a convertible debt instrument as a single debt instrument, the other four models, with their different measurement guidance, require that a convertible debt instrument be separated (using different separation approaches) into a debt component and an equity or a derivative component. Convertible preferred stock also is required to be assessed under similar models. The Financial Accounting Standard Board (“FASB”) decided to simplify the accounting for convertible instruments by removing certain separation models currently included in other accounting guidance that were being applied to current accounting for convertible instruments. Under the amendments in this update, an embedded conversion feature no longer needs to be separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost and a convertible preferred stock will be accounted for as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. The FASB also decided to add additional disclosure requirements in an attempt to improve the usefulness and relevance of the information being provided.

The new standard is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The Company does not believe the adoption of this standard will have a material impact on its condensed consolidated financial statements.

ASU 2021-04: Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity Classified Written Call Options

In May 2021, the FASB issued ASU 2021-04, "Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity Classified Written Call Options'" ("ASU 2021-04"), which introduces a new way for companies to account for warrants either as stock compensation or derivatives. Under the new guidance, if the modification does not change the instrument's classification as equity, the company accounts for the modification as an exchange of the original instrument for a new instrument. In general, if the fair value of the "new" instrument is greater than the fair value of the

"original" instrument, the excess is recognized based on the substance of the transaction, as if the issuer has paid cash. The effective date of the standard is for interim and annual reporting periods beginning after December 15, 2021 for all entities, and early adoption is permitted. The Company is currently evaluating the impact of the new guidance and does not expect the adoption of this guidance will have a material impact on its condensed consolidated financial statements and disclosures.

(d) Recently adopted accounting pronouncements

Accounting Standards Update No. 2020-10—Codification Improvements

Issued in October 2020, this release updates various codification topics by clarifying or improving disclosure requirements to align with the SEC’s regulations. The Company adopted ASU 2020-10 as of the reporting period beginning January 1, 2021. The adoption of this update did not have a material effect on the Company’s condensed consolidated financial statements.

Accounting Standards Update No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815

Issued in January 2020, the amendments in this update affect all entities that apply the guidance in Topics 321, 323, and 815 and (1) elect to apply the measurement alternative or (2) enter into a forward contract or purchase an as option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting. The Company applies the guidance included in Topic 815 to its derivative liabilities but does not intend on applying the new measurement alternative included in the update. The new standard is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

Accounting Standards Update No. 2019-12—Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

Issued in December 2019, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The amendments in this update simplify the accounting for income taxes by removing certain exceptions to guidance in Topic 740. The specific areas of potential simplification were submitted by stakeholders as part of the FASB’s simplification initiative. Adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

(e) Presentation

Certain balances in the 2020 consolidated financial statements have been reclassified to conform to the presentation in the 2021 condensed consolidated financial statements, primarily the classification and presentation of deferred revenue on the condensed consolidated balance sheet.

Variable Interest Entities

9 Months Ended

Sep. 30, 2021

Variable Interest Entities

Variable Interest Entities

Note 3. Variable Interest Entities

Through its XpresCheck™ Wellness Centers the Company provides services pursuant to contracts with PCs which in turn contracts with physicians and other medical professional providers to render COVID-19 and other medical diagnostic testing services to airline employees, contractors, concessionaire employees, TSA officers and U.S. Customs and Border Protection agents, and the traveling public. The PCs collectively represent the Company’s affiliated medical group. The PCs were designed and structured to comply with the relevant laws and regulations governing professional medical practice, which generally prohibits the practice of medicine by lay persons or entities. All of the issued and outstanding equity interests of the PCs are owned by a licensed medical professional nominated by the Company (the “Nominee Shareholder”). Upon formation of the PCs, and initial issuance of equity interests, the Nominee Shareholder contributes a

nominal amount of capital in exchange for their interest in the PC. The Company then executes with each PC a MSA, which provide for various administrative services, management services and day-to-day activities of the practice to be rendered by the Company through its XpresCheck™ Wellness Centers.

The Company also has exclusive responsibility for the provision of all nonmedical services including contracting with customers who access the PCs for a medical visit, handling all financial transactions and day-to-day operations of each PC, overseeing the establishment of COVID-19 and other medical diagnostic testing services policies, and making recommendations to the PC in establishing the guidelines for the employment and compensation of the physicians and other employees of the PCs. Until June 30, 2021, MSA Fees were commensurate with the expected level of activity required to be billed by XpresCheck™ Wellness Centers. Therefore, these PCs were assessed not to be variable interest entities prior to July 1, 2021.

Effective, July 1, 2021, contractual arrangements between the company, the company’s affiliated medical group and nominated shareholder were modified in a manner that changes the characteristics or adequacy of the nominee shareholders equity investment at risk and residual returns. Therefore, due to reassessment triggered by the development on July 1, 2021, the Company determined that the PCs are now variable interest entities. Notwithstanding their legal form of ownership of equity interests in the PC, the primary beneficiary of the affiliated medical group is the Company as it meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the affiliated medical group; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the affiliated medical group. The Company consolidated the PCs under the VIE model since the Company has the power to direct activities that most significantly impact the PCs economic performance and the right to receive benefits or the obligation to absorb losses that could potentially be significant to the PCs.

The aggregate carrying value of total assets and total liabilities included on the condensed consolidated balance sheets for the PCs after elimination of intercompany transactions were $1,080, primarily cash, and $0, respectively, as of September 30, 2021. The total revenue and net loss included on the condensed consolidated statements of operations and comprehensive income (loss) for the PCs after elimination of intercompany transactions was $25,351 and $455 for the three months ended September 30, 2021.

Potentially Dilutive Securities

9 Months Ended

Sep. 30, 2021

Potentially Dilutive Securities

Potentially Dilutive Securities

Note 4. Potentially Dilutive Securities

The table below presents the computation of basic and diluted net loss per share of Common Stock:


	Three months ended				Nine months ended
	September 30,				September 30,
	2021		2020		2021		2020
Basic numerator:
Net income (loss) attributable to XpresSpa Group, Inc.	$	5,597	$	(6,110)	$	74	$	(74,805)
Less: deemed dividend on warrants and preferred stock		—		—		—		(945)
Net income (loss) attributable to common shareholders	$	5,597	$	(6,110)	$	74	$	(75,750)
Basic denominator:
Basic weighted average shares outstanding		105,531,418		61,106,894		103,950,731		35,309,004
Basic income (loss) per share	$	0.05	$	(0.10)	$	—	$	(2.15)

Diluted numerator:
Net income (loss) attributable to common shareholders	$	5,597	$	(6,110)	$	74	$	(75,750)
Diluted denominator:
Diluted weighted average shares outstanding		105,957,317		61,106,894		104,301,344		35,309,004
Diluted net income (loss) per share	$	0.05	$	(0.10)	$	—	$	(2.15)


Net income (loss) per share data presented above excludes from the calculation of diluted net income (loss) the following potentially dilutive securities, having an anti-dilutive impact.
Both vested and unvested options to purchase an equal number of shares of Common Stock		2,606,771		706,073		2,631,246		706,073
Unvested RSUs to issue an equal number of shares of Common Stock		821,361		—		876,131		—
Warrants to purchase an equal number of shares of Common Stock		37,907,794		20,818,889		37,903,835		20,818,889
Convertible notes on an as converted basis		—		438,017		—		438,017
Total number of potentially dilutive securities excluded from the calculation of loss per share attributable to common shareholders		41,335,926		21,962,979		41,411,212		21,962,979

Cash, Cash Equivalents, and Restricted Cash

9 Months Ended

Sep. 30, 2021

Cash, Cash Equivalents, and Restricted Cash

Cash, Cash Equivalents, and Restricted Cash

Note 5. Cash, Cash Equivalents, and Restricted Cash

A reconciliation of the Company’s cash and cash equivalents in the Condensed Consolidated Balance Sheets to cash, cash equivalents and restricted cash in the Condensed Consolidated Statements of Cash Flows as of September 30, 2021 and December 31, 2020 is as follows:


	September 30, 2021		December 31, 2020
Cash denominated in United States dollars	$	106,384	$	88,636
Cash denominated in currency other than United States dollars		2,274		1,158
Restricted cash		751		701
Other		503		7
Total cash, cash equivalents and restricted cash	$	109,912	$	90,502

The Company places its cash and temporary cash investments with credit quality institutions. At times, such cash denominated in United States dollars may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limit. As of September 30, 2021 and December 31, 2020, deposits in excess of FDIC limits were $106,120 and $88,556, respectively. As of September 30, 2021 and December 31, 2020, the Company held cash balances in overseas accounts, totaling $2,274 and $1,158 respectively, which are not insured by the FDIC. If the Company were to distribute the amounts held overseas, the Company would need to follow an approval and distribution process as defined in its operating and partnership agreements, which may delay and/or reduce the availability of that cash to the Company.

Other current assets

9 Months Ended

Sep. 30, 2021

Other current assets

Other current assets

Note 6. Other current assets


	September 30, 2021		December 31, 2020
Prepaid expenses	$	1,787	$	1,135
Other		48		186
Total other current assets	$	1,835	$	1,321

Accounts payable, accrued expenses and other

9 Months Ended

Sep. 30, 2021

Accounts payable, accrued expenses and other

Accounts payable, accrued expenses and other

Note 7. Accounts payable, accrued expenses and other



	September 30, 2021		December 31, 2020
Accounts payable	$	5,436	$	2,440
Litigation accrual		890		2,221
Accrued compensation		396		306
Tax-related liabilities		534		551
Gift certificates and loyalty reward program liabilities		495		495
Common Area Maintenance Accrual		298		—
Security deposit		171		161
Other		504		294
Total accounts payable, accrued expenses and other current liabilities	$	8,724	$	6,468

Intangible Assets

9 Months Ended

Sep. 30, 2021

Intangible Assets

Intangible Assets

Note 8. Intangible Assets

The following table provides information regarding the Company’s intangible assets subject to amortization, which consist of the following:


	September 30, 2021						December 31, 2020
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Trade name	$	1,339	$	(1,063)	$	276	$	1,339	$	(899)	$	440
Software		2,849		(400)		2,449		694		(264)		430
Total intangible assets	$	4,188	$	(1,463)	$	2,725	$	2,033	$	(1,163)	$	870

The Company’s trade name relates to the value of the XpresSpa™ and trade names, and software relates to certain capitalized third-party costs related to a new point-of-sale system and website. Increase in software expenditure relates to the development of the Treat™ brand.

The Company’s intangible assets are amortized over their expected useful lives. The Company recorded amortization expense of $95 and $603 during the three months ended September 30, 2021 and 2020, respectively, and $300 and $1,742 during the nine months ended September 30, 2021 and 2020, respectively.

Based on the intangible assets balance as of September 30, 2021, the estimated amortization expense for the remainder of the calendar year and each of the succeeding calendar years is as follows:


Calendar Years ending December 31,	Amount
Remaining 2021		192
2022		1,118
2023		786
2024		629
Total	$	2,725

Leases

9 Months Ended

Sep. 30, 2021

Leases

Leases

Note 9. Leases

The Company leases its retail and diagnostic testing locations at various domestic and international airports. Additionally, the Company leases its corporate office in New York City. Certain leases entered into by the Company fall under ASU No. 2016-02, Leases (“ASC 842”). At inception, the Company determines if a lease qualifies under ASC 842. Certain of the Company’s lease arrangements contain fixed payments throughout the term of the lease, while others involve a variable component to determine the lease obligation wherein a certain percentage of sales is used to calculate the lease payment.

All qualifying leases held by the Company are classified as operating leases. Operating lease right of use assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease right of use assets and operating lease liabilities are recognized as of the commencement date based on the present value of lease payments over the lease term. The Company records its operating lease right of use assets and operating lease liabilities based on required guaranteed payments under each lease agreement. The Company uses its incremental borrowing rate as of the commencement date of the lease, which approximates the rate at which the Company can borrow funds on a secured basis, in determining the present value of the guaranteed lease payments.

The Company reviews all of its existing lease agreements on a quarterly basis to determine whether there were any modifications to existing lease agreements and to assess if any leases should be accounted for pursuant to the guidance in ASC 842. The Company recalculates the right of use asset and lease liability based on the modified lease terms and adjusts both balances accordingly.

The Company has received rent concessions from landlords on a majority of its leases, allowing for the relief of minimum guaranteed payments in exchange for percentage-of-revenue rent or providing relief from rent through payment deferrals. Currently, the periods of relief from these payments, which began in March 2020, range from three to twenty-eight months and are still in effect for some of the affected leases. The Company received minimum guaranteed payment concession of approximately $585 and $611 in the three months ended September 30, 2021 and 2020, respectively, $1,568 and $1,379 in the nine months ended September 30, 2021 and 2020, respectively, and $3,600 in the eighteen months ended September 30, 2021. The Company expects to realize additional rent concessions while a majority of its spas remain closed.

The Financial Accounting Standards Board (“FASB”) issued a Q&A in March 2020 that focused on the application of lease guidance in ASC 842 for lease concessions related to the effects of COVID-19. The FASB staff has said that entities can elect to not evaluate whether concessions granted by lessors related to COVID-19 are lease modifications. Entities that make this election can then apply the lease modification guidance in ASC 842 or account for the concession as if it were contemplated as part of the existing contract. XpresSpa has elected to not treat the concessions as lease modifications and will instead account for the lease concessions as if they were contemplated as part of the existing leases.

When a lessor grants a concession that contractually releases a lessee from certain lease payments or defers lease payments, a lessee may account for the concession as a negative variable lease payment and recognize negative variable lease expense in the period when the rent concession becomes accruable. The Company has recorded negative variable lease expense and adjusted lease liabilities at the point in which the rent concession has become accruable.

Supplemental cash flow information related to leases for the nine months ended September 30, 2021 and 2020 were as follows:


	Nine months ended September 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(3,189)	$	(1,074)
Leased assets obtained in exchange for new and modified operating lease liabilities	$	(3,673)	$	(811)
Leased assets surrendered in exchange for termination of operating lease liabilities	$	9	$	—

As of September 30, 2021, operating leases contain the following future minimum commitments:


Calendar Years ending December 31,	Amount
Remaining 2021	$	986
2022		3,551
2023		3,071
2024		2,545
2025		1,760
Thereafter		1,526
Total future lease payments		13,439
Less: interest expense at incremental borrowing rate		(2,486)
Net present value of lease liabilities	$	10,953

Other assumptions and pertinent information related to the Company’s accounting for operating leases are:


Weighted average remaining lease term:	4.27	years
Weighted average discount rate used to determine present value of operating lease liability:	10.07	%

Cash paid for minimum annual rental obligations during the three and nine months ended September 30, 2021 was $185 and $399, respectively. Cash paid for minimum annual rental obligations during three and nine months ended September 30, 2020 was $278 and $1,074, respectively.

Variable lease payments that are calculated monthly as a percentage of product and services revenue, were $51 and $45 for the three months ended September 30, 2021 and 2020, respectively, and $262 and $468 for the nine months ended September 30, 2021 and 2020, respectively.

Debt

9 Months Ended

Sep. 30, 2021

Debt

Debt

Note 10. Debt

Total Debt as of September 30, 2021 and December 31, 2020 is comprised of the following:


	September 30, 2021		December 31, 2020
Promissory note, unsecured	$	5,653	$	5,653
Total debt	$	5,653	$	5,653

Paycheck Protection Program

On May 1, 2020, the Company entered into a U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“the PPP”) promissory note in the principal amount of $5,653 payable to Bank of America, NA (“Bank of America”) evidencing a PPP loan (the “PPP Loan”). The PPP Loan bears interest at a rate of 1% per annum. No payments were due on the PPP Loan during a six-month deferral period commencing on May 2, 2020. Commencing one month after the expiration of the deferral period and continuing on the same day of each month thereafter until the maturity date of the PPP Loan, the Company is obligated to make monthly payments of principal and interest, each in such equal amount required to fully amortize the principal amount outstanding on the PPP Loan by the maturity date. The maturity date is May 2, 2022. The principal amount of the PPP Loan is subject to forgiveness under the PPP upon the Company’s request to the extent that the PPP Loan proceeds are used to pay expenses permitted by the PPP. Bank of America may forgive interest accrued on any principal forgiven if the SBA pays the interest. Currently, the Company is paying its monthly principal and interest related to the PPP Loan when due. The PPP Loan contains customary borrower default provisions and lender remedies, including the right of Bank of America to require immediate repayment in full the outstanding

principal balance of the PPP Loan with accrued interest. As of September 30, 2021, $78 of interest has been accrued and is included in Accounts payable, accrued expenses and other in the condensed consolidated balance sheet.

Stockholders' Equity

9 Months Ended

Sep. 30, 2021

Stockholders' Equity

Stockholders' Equity

Note 11. Stockholders’ Equity

Warrants

The following table represents the activity related to the Company’s warrants during the nine months ended September 30, 2021.


		Exercise
	No. of Warrants	price range
December 31, 2020	48,044,381	$	0.525 – 300.00
Granted	1,168,088	$	1.70 - 2.125
Exercised	(11,223,529)	$	1.70 - 2.125
Expired	(278)	$	300.00
September 30, 2021	37,988,662	$	0.525 - 6.566

During the nine months ended September 30 2021, holders of the Company’s December 2020 Investor Warrants, December 2020 Placement Agent Warrants and December 2020 Placement Agent Tail Fee Warrants exercised warrants for a total of 11,223,529 common shares. The Company received gross proceeds of approximately $19,161. In accordance with the placement agent agreements with H.C. Wainwright & Co., LLC and Palladium, the Company paid cash fees of $2,154 and issued 842,588 warrants to H.C. Wainwright & Co., LLC at an exercise price of $2.125 per share and 325,500 warrants to Palladium at an exercise price of $1.70 per share.

Share Repurchase Program

On August 31, 2021, the Company’s board of directors authorized a stock repurchase program that permits the purchase and repurchase of up to 15 million shares of its common stock. The new authorization is currently effective and will be in effect through September 15, 2022. Under the new stock repurchase program, management has discretion in determining the conditions under which shares may be purchased from time to time. The program does not require us to repurchase any specific number of shares, and may be modified, suspended or terminated at any time without prior notice. Under the program, the Company purchased and retired 250,000 shares for $450 during the three and nine months ended September 30, 2021.

Stock-based Compensation

In September 2020, the Board of Directors approved a new stock-based compensation plan available to grant stock options, restricted stock and RSU’s to the Company’s directors, employees and consultants. Under the 2020 Equity Incentive Plan (the “2020 Plan”), a maximum of 5,000,000 shares of Common Stock may be issued, subject to receiving shareholder approval which was subsequently obtained on October 28, 2020. The 2012 Plan was terminated upon receipt of shareholder approval of the 2020 Plan.

Awards granted under the 2012 Plan remain in effect pursuant to their terms. Generally, stock options are granted with exercise prices equal to the fair market value on the date of grant, vest in four equal quarterly installments, and expire 10 years from the date of grant. RSUs granted generally vest over a period of one year.

In September 2020, XpresTest created a stock-based compensation plan available to grant stock options, restricted stock and RSU’s to the XpresTest’s directors, employees and consultants. Under the XpresTest 2020 Equity Incentive Plan (the

“XpresTest Plan”), a maximum of 200 shares of XpresTest common stock may be awarded, which would represent 20% of the total number of shares of common stock of XpresTest as of September 30, 2021. Certain named executive officers, consultants, and directors of the Company are eligible to participate in the XpresTest Plan. The XpresTest Plan RSAs vest upon satisfaction of certain service and performance-based conditions. The fair value of the XpresTest Plan RSAs is determined based on the weighted average of (i) Fair Value of XpresTest under the Indirect Valuation Method developing assumptions for XpresSpa Net Market Cap and XpresSpa standalone Fair Value, and (ii) Direct Valuation Method developing assumptions for XpresTest Representative Forecasted Revenue for 2021 and Peer companies Revenue’s Multiples. As of September 30, 2021, there is $14 of unrecognized stock-based compensation related to the XpresTest Plan. During May 2021, XpresTest repurchased seven common shares, exercised pursuant to the XpresTest Plan, for the grantees to defray their tax liabilities related to the XpresTest Plan RSAs award.

The fair value of stock options is estimated as of the date of grant using the Black-Scholes-Merton (“Black-Scholes”) option-pricing model. The Company uses the simplified method to estimate the expected term of options due to insufficient history and high turnover in the past.

The following variables were used as inputs in the model:


Share price of the Company’s Common Stock on the grant date:	$	1.26 - 5.01
Exercise price:	$	1.26 - 5.01
Expected volatility:		123	%
Expected dividend yield:		0	%
Annual average risk-free rate:		0.37	%
Expected term:		5.38	years

Total stock-based compensation for the three months ended September 30, 2021 and 2020 is $819 and $470, respectively, and for the nine months ended September 30, 2021 and 2020 is $2,152 and $496, respectively.

Total following table sets forth the Company’s Equity Incentive activities for the nine months ended September 30, 2021:


	RSUs			XpresTest RSAs			Stock options
		Weighted			Weighted			Weighted
		average			average			average		Exercise
	No. of	grant date		No. of	grant date		No. of	exercise		price
	RSUs	fair value		RSAs	fair value		options	price		range
Outstanding as of December 31, 2020	—	$	—	28.75	$	11,390.35	1,353,888	$	3.82	$	1.53 - 2,460.00
Granted	1,370,167		1.58	120.00		5,227.20	1,668,297		1.56		1.19 - 1.61
Exercised/Vested	(427,625)		1.50	(141.25)		6,229.35	(8,334)		1.53
Forfeited	—		—	—		—	(183,230)		1.61
Outstanding as of September 30, 2021	942,542	$	1.61	7.50	$	9,978.78	2,830,621	$	2.63	$	1.19 - 2,460.00
Exercisable as of September 30, 2021							858,905	$	2.63	$	1.19 - 2,460.00

Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Fair Value Measurements

Fair Value Measurements

Note 12. Fair Value Measurements

Fair value measurements are determined based on assumptions that a market participant would use in pricing an asset or a liability. A three-tiered hierarchy distinguishes between market participant assumptions based on (i) observable inputs such as quoted prices in active markets (Level 1), (ii) inputs other than quoted prices in active markets that are observable

either directly or indirectly (Level 2) and (iii) unobservable inputs that require the Company to use present value and other valuation techniques in the determination of fair value (Level 3).

The following table presents the placement in the fair value hierarchy measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020:


			Fair value measurement at reporting date using
			Quoted prices in
			active markets		Significant other		Significant
			for identical		observable		unobservable
	Balance		assets (Level 1)		inputs (Level 2)		inputs (Level 3)
As of September 30, 2021:
Recurring fair value measurements
Equity securities:
Route1, Inc.	$	1,052	$	—	$	1,052	$	—
Total equity securities		1,052		—		1,052		—
Total recurring fair value measurements	$	1,052	$	—	$	1,052	$	—

As of December 31, 2020
Recurring fair value measurements
Equity securities:
Route1	$	1,768	$	—	$	1,768	$	—
Total equity securities		1,768		—		1,768		—
Total recurring fair value measurements	$	1,768	$	—	$	1,768	$	—

Equity securities pertain to common shares in Route1, Inc. obtained in the 2018 sale of Group Mobile to Route 1, Inc. On March 22, 2021, the Company executed a cashless exercise of warrants to purchase 3,000,000 common shares of Route 1, Inc. In exchange, the Company received 1,355,443 common shares of Route 1, Inc., bringing the total number of shares owned to 3,855,443. For the three and nine months ended September 30, 2021, the Company recorded an unrealized loss of $302 and $716, respectively, in connection with the remeasurement of the common shares of Route 1, Inc.

In addition to the above, the Company’s financial instruments as of September 30, 2021 and December 31, 2020 consisted of cash and cash equivalents, receivables, accounts payable and debt. The carrying amounts of all the aforementioned financial instruments approximate fair value because of the short-term maturities of these instruments.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Income Taxes

9 Months Ended

Sep. 30, 2021

Income Taxes.

Income Taxes

Note 13. Income Taxes

The Company’s provision for income taxes consists of federal, state, local, and foreign taxes in amounts necessary to align the Company’s year-to-date provision for income taxes with the effective tax rate that the Company expects to achieve for the full year. Each quarter, the Company updates its estimate of the annual effective tax rate and records cumulative adjustments as deemed necessary. The income tax provision for the nine months ended September 30, 2021 reflect an estimated global annual effective tax rate of approximately (0.13)% from continuing operations. Discontinued operations for the nine months ended September 30, 2021 reflected an annual effective tax rate of 0%.

As of September 30, 2021, deferred tax assets generated from the Company’s U.S. activities were offset by a valuation allowance because realization depends on generating future taxable income, which, in the Company’s estimation, is not more likely than not to be generated before such net operating loss carryforwards expire. Net operating loss carryforwards generated after December 31, 2017 do not expire. The Company expects its effective tax rate for its current fiscal year to be significantly lower than the statutory rate as a result of a full valuation allowance; therefore, any loss before income taxes does not generate a corresponding income tax benefit.

Income tax expense for the nine months ended September 30, 2021 was $79 which was attributed to state taxing jurisdictions in which a measure of income is utilized to determine a tax liability. The final annual tax rate cannot be determined until the end of the fiscal year; therefore, the actual tax rate could differ from current estimates.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies

Commitments and Contingencies

Note 14. Commitments and Contingencies

Litigation and legal proceedings

Certain of the Company’s outstanding legal matters include speculative claims for substantial or indeterminate amounts of damages. The Company regularly evaluates developments in its legal matters that could affect the amount of any potential liability and makes adjustments as appropriate. Significant judgment is required to determine both the likelihood of there being any potential liability and the estimated amount of a loss related to the Company’s legal matters.

With respect to the Company’s outstanding legal matters, based on its current knowledge, the Company’s management believes that the amount or range of a potential loss will not, either individually or in the aggregate, have a material adverse effect on its business, consolidated financial position, results of operations or cash flows. However, the outcome of such legal matters is inherently unpredictable and subject to significant uncertainties. The Company evaluated the outstanding legal matters and assessed the probability and likelihood of the occurrence of liability. Based on management’s estimates, the Company has recorded accruals of $890 and $2,221 as of September 30, 2021 and December 31, 2020, respectively, which is included in Accounts payable, accrued expenses and other current liabilities in the condensed consolidated balance sheets.

The Company expenses legal fees in the period in which they are incurred.

Cordial

Effective October 2014, XpresSpa terminated its former Airport Concession Disadvantaged Business Enterprise (“ACDBE”) partner, Cordial Endeavor Concessions of Atlanta, LLC (“Cordial”), in several store locations at Hartsfield-Jackson Atlanta International Airport.

Cordial filed a series of complaints with the City of Atlanta, both before and after the termination, in which Cordial alleged, among other things, that the termination was not valid and that XpresSpa unlawfully retaliated against Cordial when Cordial raised concerns about the joint venture. In response to the numerous complaints it received from Cordial, the City of Atlanta required the parties to engage in two mediations.

After the termination of the relationship with Cordial, XpresSpa sought to substitute two new ACDBE partners in place of Cordial.

In April 2015, Cordial filed a complaint with the United States Federal Aviation Administration (“FAA”), which oversees the City of Atlanta with regard to airport ACDBE programs, and, in December 2015, the FAA instructed that the City of Atlanta review XpresSpa’s request to substitute new partners in lieu of Cordial and Cordial’s claims of retaliation. In response to the FAA instruction, pursuant to a corrective action plan approved by the FAA, the City of Atlanta held a hearing in February 2016 and ruled in favor of XpresSpa on such substitution and claims of retaliation. Cordial submitted a further complaint to the FAA claiming that the City of Atlanta was biased against Cordial and that the City of Atlanta’s decision was wrong. In August 2016, the parties met with the FAA. On October 4, 2016, the FAA sent a letter to the City of Atlanta directing that the City of Atlanta retract previous findings on Cordial’s allegations and engage an independent third party to investigate issues previously decided by Atlanta. The FAA also directed that the City of Atlanta determine monies potentially due to Cordial.

On January 3, 2017, XpresSpa filed a lawsuit in the Supreme Court of the State of New York, County of New York, against Cordial and several related parties. The lawsuit alleges breach of contract, unjust enrichment, breach of fiduciary duty, fraudulent inducement, fraudulent concealment, tortious interference, and breach of good faith and fair dealing. XpresSpa is seeking damages, declaratory judgment, and rescission/termination of certain agreements, disgorgement of

revenue, fees and costs, and various other relief. On February 21, 2017, the defendants filed a motion to dismiss. On March 3, 2017, XpresSpa filed a first amended complaint against the defendants. On April 5, 2017, Cordial filed a motion to dismiss. On September 12, 2017, the Court held a hearing on the motion to dismiss. On November 2, 2017, the Court granted the motion to dismiss which was entered on November 13, 2017. On December 22, 2017, XpresSpa filed a notice of appeal, and on September 24, 2018, XpresSpa perfected its appellate rights and submitted a brief to the Supreme Court of New York, First Department appellate court. Oral argument on the appeal went forward on March 20, 2019.

On March 30, 2018, Cordial filed a lawsuit against XpresSpa Group, a subsidiary of XpresSpa Group, and several additional parties in the Superior Court of Fulton County, Georgia, alleging the violation of Cordial’s civil rights, tortious interference, breach of fiduciary duty, civil conspiracy, conversion, retaliation, and unjust enrichment. Cordial threated to seek punitive damages, attorneys’ fees and litigation expenses, accounting, indemnification, and declaratory judgment as to the status of the membership interests of XpresSpa and Cordial in the joint venture and Cordial’s right to profit distributions and management fees from the joint venture. On May 4, 2018, the defendants moved the lawsuit to the United States District Court for the Northern District of Georgia. On August 9, 2018, the Court granted an additional extension of time for the defendants’ response until September 7, 2018, and thereafter provided another extension pending the Court’s consideration of XpresSpa’s Motion to Stay all action in the Georgia lawsuit, pending resolution of the New York lawsuit and the FAA action. On October 29, 2018, XpresSpa’s Motion to Stay was denied. Prior to resolution of the Motion to Stay, Cordial filed a Motion for Temporary Restraining Order (“TRO Motion”), seeking to enjoin the defendants and specifically XpresSpa, from, among other things, distributing any cash flow, net profits, or management fees, or otherwise expending resources beyond necessary operating expenses. XpresSpa filed an opposition and, in a decision entered December 26, 2018, the Court denied Cordial’s TRO Motion entirely. Defendants filed a Motion to Dismiss the Complaint in its entirety on November 20, 2018.

A Director’s Determination was issued by the FAA in connection with the Part 16 Complaint (“Part 16 Proceeding”) filed by Cordial against the City of Atlanta (“City”) in 2017 (“Director’s Determination”). The Company and Cordial were not parties to the FAA action, and had no opportunity to present evidence or otherwise be heard in such action. The Director’s Determination concluded that the City was not in compliance with certain Federal obligations concerning the federal government’s ACDBE program, including relating to the City’s oversight of the Joint Venture Operating Agreement between the Company and Cordial, Cordial’s termination, and Cordial’s retaliation and harassment claims, and the City was ordered to achieve compliance in accordance with the Director’s Determination. The Director’s Determination does not constitute a Final Agency Decision and it is not subject to judicial review, pursuant to 14 CFR § 16.247(b)(2). Because the Company is not a party to the Part 16 Proceeding, the Company would not be considered “a party adversely affected by the Director’s Determination” with a right of appeal to the FAA Assistant Administrator for Civil Rights.

On August 7, 2019, the Company filed a response, advising the U.S. District Court that: (i) the Company is not party to the FAA proceeding and therefore had no opportunity to present evidence or otherwise be heard in such action; (ii) as non-party, the Company is not bound by the Director’s Determination; and (iii) the FAA cannot dictate the interpretation or enforceability of the contract between Cordial and the Company, which is the subject of the U.S. District Court action initiated by Cordial and the New York State Court action initiated by the Company.

On August 16, 2019, the Court entered an Order granting, in part, the Company’s Motion to Dismiss. The Court dismissed all federal claims alleged in the Complaint against all Defendants, declined to exercise supplemental jurisdiction pursuant to 28 U.S.C. § 1367(c) over the remaining state law claims alleged in the Complaint, and remanded the case to the Superior Court of Fulton County. Plaintiffs filed an appeal of the federal court’s decision to the Eleventh Circuit Court of Appeals, and the case was docketed on October 15, 2019.

In response to the numerous complaints it received from Cordial, the City of Atlanta required the parties to engage in mediation. On November 22, 2019, a Mutual Release and Settlement Agreement (the "Settlement Agreement") and a Confidential Payment Agreement (the "Payment Agreement") have been executed by the applicable parties. Pursuant to the terms of the settlement, all pending litigation was dismissed. Also, pursuant to the Settlement Agreement terms, the City agreed to approve new five-year leases for the Company and Cordial to operate as joint venture partners for spas located on Concourse A and Concourse C of the Hartsfield-Jackson Atlanta International Airport ("together, "Leases"). The city has approved the new Leases, and the Leases have been executed by the Company and the City. The parties are in the process of negotiating and completing an operating agreement. Pursuant to the Payment Agreement, the Company

has recorded an expense, made payments and accrued the balance of the amounts due thereunder, and has included that balance in Accounts payable, accrued expenses and other current liabilities.

In re Chen et al.

In March 2015, four former XpresSpa employees who worked at XpresSpa locations in John F. Kennedy International Airport and LaGuardia Airport filed a putative class and collective action wage-hour litigation in the United States District Court, Eastern District of New York. In re Chen et al., CV 15-1347 (E.D.N.Y.). Plaintiffs claim that they and other spa technicians around the country were misclassified as exempt commissioned salespersons under Section 7(i) of the federal Fair Labor Standards Act (“FLSA”). Plaintiffs also assert class claims for unpaid overtime on behalf of New York spa technicians under the New York Labor Law, and discriminatory employment practices under New York State and City laws. On July 1, 2015, the plaintiffs moved to have the court authorize notice of the FLSA misclassification claim sent to all employees in the spa technician job classification at XpresSpa locations around the country in the last three years. Defendants opposed the motion. On February 16, 2016, the Magistrate Judge assigned to the case issued a Report & Recommendation, recommending that the District Court Judge grant the plaintiffs’ motion. On March 1, 2016, the defendants filed Opposition to the Magistrate Judge’s Report & Recommendation, arguing that the District Court Judge should reject the Magistrate Judge’s findings. On September 23, 2016, the court ruled in favor of the plaintiffs and conditionally certified the class. The parties held a mediation on February 28, 2017, and reached an agreement on a settlement in principle. On September 6, 2017, the parties entered into a settlement agreement. On September 15, 2017, the parties filed a motion for settlement approval with the Court. XpresSpa subsequently paid the agreed-upon settlement amount to the settlement claims administrator to be held in escrow pending a fairness hearing and final approval by the Court. On March 30, 2018, the Court entered a Memorandum and Order denying the motion without prejudice to renewal due to questions and concerns the Court had about certain settlement terms. On April 24, 2018, the parties jointly submitted a supplemental letter to the Court advocating for the fairness and adequacy of the settlement and appeared in Court on April 25, 2018 for a hearing to discuss the settlement terms in greater detail with the assigned Magistrate Judge. At the conclusion of the hearing, the Court still had questions about the adequacy and fairness of the settlement terms, and the Judge asked that the parties jointly submit additional information to the Court addressing the open issues. The parties submitted such information to the Court on May 18, 2018.

On August 21, 2019, the Court issued an Order denying the parties’ motion for preliminary approval of the revised settlement, as the Court still had concerns about several of the settlement terms. At the December 6, 2019 status conference with the Court, the Court reiterated its denial of preliminary approval of the proposed settlement agreement. The Court instructed a notice of pendency to be disseminated to putative collective members. Notice was sent out in early February 2020 and approximately 415 individuals have joined the case. On June 6, 2020, the Company participated in a status conference with the Court, and the parties discussed the possibility of entering into a new settlement agreement that addresses the Court’s concerns. On or about August 5, 2020, the parties entered into settlement agreements and sought a preliminary approval order from the Court. On March 30, 2021, the Court issued an Order conditionally granting the motion for preliminary approval subject to resolution of certain issues pertaining to administration of the settlement. On April 6, 2021, Plaintiffs’ counsel wrote to the Court regarding their proposed resolution on such issues and the Court ultimately granted preliminary approval on May 25, 2021. Notice of the settlement was sent out to the class members on June 22, 2021.

On October 1, 2021, the Court issued an Order granting the parties’ motion for final approval of the settlement. There were no appeals and the settlement was effective as of November 2, 2021. The Settlement Administrator has confirmed to the parties that settlement checks have been distributed to the Class on November 5, 2021. A joint status letter will be submitted to the Court on November 8, 2021 confirming as such and requesting that the case be closed.

Kainz v. FORM Holdings Corp. et al.

On March 20, 2019, a second suit was commenced in the United States District Court for the Southern District of New York against FORM, seven of its directors and former directors, as well as a managing director of Mistral Equity Partners (“Mistral”). The individual plaintiff, a shareholder of XpresSpa Holdings, LLC at the time of the merger with FORM in December 2016, alleges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making false statements concerning, inter alia, the merger and the independence of FORM’s board of directors, violated

Section 12(2) of the Securities Act of 1933, breached the merger agreement by making false and misleading statements concerning the merger and fraudulently induced the plaintiff into signing the joinder agreement related to the merger. On May 8, 2019, the Company and its directors and the managing director of Mistral filed a motion to dismiss the complaint. On June 5, 2019, plaintiffs opposed the motion and filed a cross-motion for a partial stay. Defendants’ motion to dismiss was fully briefed as of June 19, 2019.

On November 13, 2019, the matter was dismissed in its entirety. On December 12, 2019, plaintiff filed a motion for reconsideration to vacate the order and judgment, dismissing the action, and for leave to amend the complaint. The motion was fully briefed as of February 6, 2020. On April 1, 2020, the Court denied plaintiff’s motion in full. On April 10, 2020, plaintiff filed a notice of appeal to the United States Court of Appeals for the Second Circuit. On June 1, 2020, plaintiff filed his appellate brief. On June 16, 2020, the Second Circuit entered the parties’ non-dispositive stipulation, dismissing certain defendant-appellees, including the Company. On July 6, 2020, the remaining defendants filed their opposition brief. On July 27, 2020, the plaintiff filed their reply brief. On July 28, 2020, the Second Circuit marked plaintiff’s reply brief as defective because it was filed a week late. Subsequently, plaintiff has moved to request permission to file a late reply brief. On January 11, 2021, the judgment of the Court was affirmed by the Second Circuit court.

Route1

On or about May 23, 2018, Route1 Inc., Route1 Security Corporation (together, “Route1”) and Group Mobile Int’l, LLC (“Group Mobile”) commenced a legal proceeding against the Company in the Ontario Superior Court of Justice.

Route1 and Group Mobile sought damages of $567,000 in relation to alleged breaches of a Membership Purchase Agreement entered into between Route1 and the Company on or about March 7, 2018, pursuant to which Route1 acquired the Company’s 100% membership interest in Group Mobile. The Company counterclaimed against the Plaintiffs for amounts owed to the Company in relation to the sale of Excluded Inventory (as defined in the Membership Purchase Agreement) and sought damages thereon. The Company delivered a draft amended counterclaim to the Plaintiffs on or around November 2019 seeking, among other things, damages. The Company sought Plaintiffs’ consent to amend its counterclaim. Examinations for discovery were scheduled to take place in Toronto, Canada in June 2020.

The action settled at mediation on or about September 17, 2020. The parties agreed to dismiss the claim and the counterclaim, subject to XpresSpa’s right to commence an application to seek rectification of certain shares and warrants that were issued in connection with the Membership Purchase Agreement. On September 21, 2020, the Ontario Superior Court of Justice entered an Order dismissing, without costs, the action and counterclaim. XpresSpa was granted the Order seeking the rectification of the shares and warrant and that matter was completed in March 2021.

Rodger Jenkins and Gregory Jones v. XpresSpa Group, Inc.

In March 2019, Rodger Jenkins and Gregory Jones filed a lawsuit against the Company in the United States District Court for the Southern District of New York. The lawsuit alleges breach of contract of the stock purchase agreement related to the Company’s acquisition of Excalibur Integrated Systems, Inc. and seeks specific performance, compensatory damages and other fees, expenses, and costs. When this action was first commenced, the plaintiffs had demanded cash or stock in the sum of $750. On or about January 3, 2020, the court granted the plaintiffs’ motion to amend their pleading to increase their total demand to $1,500.

On December 11, 2020, the court issued its decision and order on the parties’ respective motions for summary judgment in which the court: (a) awarded plaintiffs damages in the sum of $750, plus prejudgment interest; (b) granted that portion of the Company’s motion dismissing Jenkins’s claim for $600 based on his having executed a written waiver of his right to receive that sum; and (c) denied both sides’ motions with respect to Jones’s claim to recover $150 and directed Jones’s claim to be tried. The court had stated that the trial on the remaining portion of Jones’s claim will occur in May 2021.

The court held a trial on the remaining portion of Jones’s claim for the “second $750” on May 17-18, 2021. Following the trial, the court dismissed that portion of Jones’s claim.

On May 28, 2021, the court entered judgment against the Company based on its ruling in plaintiffs’ favor as to the “first $750.” The total amount of the judgment, with prejudgment interest, is $948. The rate of post-judgment interest is 0.04 % (i.e. 4/10 of 1%).

On June 24, 2021, the Company filed a notice of appeal of the judgment and posted the necessary bond.

On August 18, 2021, the parties entered into a Settlement Agreement and Mutual Release (the "Settlement Agreement"). Pursuant to the terms of the Settlement Agreement, all pending litigation was dismissed. On August 18, 2021, satisfaction of judgment was entered with the court.

Kyle Collins v. Spa Products Import & Distribution Co., LLC et al

This is a combined class action and California Private Attorney’s General Act (“PAGA”) action. Plaintiff seeks to recover wages, penalties and PAGA penalties for claims for (1) failure to provide meal periods, (2) failure to provide rest breaks, (3) failure to pay overtime, (4) inaccurate wage statements, (5) waiting time penalties, and (6) PAGA penalties of $0.1 per employee per pay period per violation. There are approximately 240 current and former employees in the litigation class. The parties agreed to mediation on May 26, 2020, however, due to COVID-19 the parties subsequently stayed all proceedings. The mediation session occurred on March 18, 2021, and the parties reached a settlement in principle. The parties are currently in the process of preparing/finalizing settlement papers for filing with the court.

Mary Anne Bowen v. XpresSpa Miami Airport, LLC

On September 7, 2018, Plaintiff Mary Anne Bowen (“Plaintiff”) filed a Complaint in the Eleventh Judicial Circuit Court in and for Miami-Dade County, Florida, asserting two causes of action: (I) Respondent Superior to hold XpresSpa accountable for the actions of its employee; and (II) Negligent Hiring, Retention, and Supervision of an employee. On December 21, 2018, the Company filed a Motion to Dismiss Plaintiff’s Complaint in its entirety, arguing that XpresSpa cannot be held liable for the acts of an employee who was acting outside the scope of his employment (Count I) and that Plaintiff did not sufficiently plead XpresSpa had notice of the employee’s unfitness (Count II). The Motion to Dismiss was granted. However, Plaintiff filed an Amended Complaint which the Company answered. On June 30, 2021, the parties participated in a mediation session and an agreement was reached on the terms of a settlement. Settlement papers were signed on July 1, 2021, and a stipulation of dismissal was filed with the Court on July 26, 2021. Accordingly, this case is now closed.

In addition to those matters specifically set forth herein, the Company and its subsidiaries are involved in various other claims and legal actions that arise in the ordinary course of business. The Company does not believe that the ultimate resolution of these actions will have a material adverse effect on the Company’s financial position, results of operations, liquidity, or capital resources. However, a significant increase in the number of these claims, or one or more successful claims under which the Company incurs greater liabilities than the Company currently anticipates, could materially adversely affect the Company’s business, financial condition, results of operations and cash flows.

In the event that an action is brought against the Company or one of its subsidiaries, the Company will investigate the allegation and vigorously defend itself.

Leases

XpresSpa is contingently liable to a surety company under certain general indemnity agreements required by various airports relating to its lease agreements. XpresSpa agrees to indemnify the surety for any payments made on contracts of suretyship, guaranty, or indemnity. The Company believes that all contingent liabilities will be satisfied by its performance under the specified lease agreements.

Segment Information

9 Months Ended

Sep. 30, 2021

Segment Information

Segment Information

Note 15. Segment Information

The Company analyzes the results of the Company’s business through the Company’s three reportable segments: XpresSpa™, XpresTest™, and Treat™. The XpresSpa segment provides travelers premium spa services, including massage, nail and skin care, as well as spa and travel products. The XpresTest segment provides diagnostic COVID-19 tests at XpresCheck™ Wellness Centers in airports, to airport employees and to the traveling public. The Treat™ segment provides access to integrated care which can seamlessly fit into a post-pandemic world and is designed to deliver on-demand access to integrated healthcare through technology and personalized services, positioned for a traveler to access health care, records and real-time information all in one place, as well as book appointments in the Company’s on-site wellness centers as they reopen. The chief operating decision maker evaluates the operating results and performance of the Company’s segments through operating income. Expenses that can be specifically identified with a segment have been included as deductions in determining operating income. Any remaining expenses and other charges are included in Corporate and Other.


	For the three months ended
	September 30,
	2021		2020
Revenue
XpresSpa^TM	$	1,415	$	140
XpresTest^TM		25,351		—
Treat^TM		—		—
Corporate and other		—		61
Total revenue	$	26,767	$	201


Operating income (loss)
XpresSpa^TM	$	(1,595)	$	(5,699)
XpresTest^TM		12,015		(1,791)
Treat^TM		(2,305)		—
Corporate and other		(1,058)		(1,733)
Total operating income (loss)	$	7,057	$	(9,223)


	For the nine months ended
	September 30,
	2021		2020
Revenue
XpresSpa^TM	$	2,172	$	7,729
XpresTest^TM		42,199		—
Treat^TM		—		—
Corporate and other		—		333
Total revenue	$	44,371	$	8,062


Operating income (loss)
XpresSpa^TM	$	(4,828)	$	(16,103)
XpresTest^TM		14,597		(1,791)
Treat^TM		(4,115)		—
Corporate and other		(3,719)		(4,761)
Total operating income (loss)	$	1,935	$	(22,655)



	September 30,		September 30,
	2021		2020
Assets
XpresSpa^TM	$	15,278	$	5,816
XpresTest^TM		19,428		—
Treat^TM		3,116		—
Corporate and other		91,455		75,713
Total assets	$	129,277	$	81,529

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Significant Accounting and Reporting Policies (Policies)	9 Months Ended
	Sep. 30, 2021
Significant Accounting and Reporting Policies
Variable Interest Entities	(a) Variable Interest Entities The Company evaluates its ownership, contractual, pecuniary, and other interests in entities to determine if it has any variable interest in a variable interest entity (“VIE”). These evaluations are complex and involve judgment. If the Company determines that an entity in which it holds a contractual or ownership interest is a VIE and that the Company is the primary beneficiary, the Company consolidates such entity in its consolidated financial statements. The primary beneficiary of a VIE is the party that meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Management performs ongoing reassessments of whether changes in the facts and circumstances regarding the Company’s involvement with a VIE will cause the consolidation conclusion to change. Changes in consolidation status are applied prospectively.
Revenue Recognition Policy	(b) Revenue Recognition Policy The Company recognizes revenue from the sale of XpresSpa products and services when the services are rendered at XpresSpa stores and from the sale of products at the time products are purchased at the Company’s stores or online usually by credit card, net of discounts and applicable sales taxes. Accordingly, the Company recognizes revenue for the Company’s single performance obligation related to both in-store and online sales at the point at which the service has been performed or the control of the merchandise has passed to the customer. Revenues from the XpresSpa retail and e-commerce businesses are recorded at the time goods are shipped. Through its XpresCheck™ Wellness Centers and under the terms of the Managed Services Agreement (“MSA”) with PCs that in turn contract with physicians and Nurse Practitioners, the Company offers testing services to airline employees, contractors, concessionaire employees, TSA officers and U.S. Customs and Border Protection agents, as well as the traveling public. The Company has entered into MSAs with PCs that provide healthcare services to patients. Under the terms of the MSAs which may be modified 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, the Company 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 3), the Company determined that the PCs are variable interest entities due to its equity holder having insufficient capital at risk, and the Company has a variable interest in the PCs. In pursuance, the total revenue of $25,351 for the PCs for the three months ended September 30, 2021 were designated as revenue for the company. During the third quarter of 2021, the Company has been authorized to proceed with a $2,000, 8-week pilot program with the Centers for Disease Control and Prevention (CDC) through the Company’s niche in XpresCheck™ COVID-19 testing. Under the 8-week pilot program, conducted in collaboration with Concentric by Ginkgo, XpresCheck™ will conduct biosurveillance monitoring, initially from India, at three major U.S. airports operating XpresCheck™ COVID-19 testing facilities, which will be aimed at identifying existing and new SARS-CoV-2 variants, including the highly contagious Delta variant and other new variants surfacing in the U.S. The revenue on this contract which is based on certain milestones specified in the contract, would be booked through the 5 steps criteria of ASC 606 as and when a particular milestone is reached, pursuant to which the Company expects to recognize approximately $1,500 which is 75% of the contract consideration during the fourth quarter of 2021. The Company has a franchise agreement with an unaffiliated franchisee to operate an XpresSpa location. Under the Company’s franchising model, all initial franchising fees relate to the franchise right, which is a single performance obligation that transfers over time. Upon receipt of the non-recurring, non-refundable initial franchise fee, management records a deferred revenue liability and recognizes revenue on a straight-line basis over the life of the franchise agreement. The Company has also entered into collaborative agreements with marketing partners whereby it sells certain of its partners’ products in the Company’s XpresSpa spas. The Company acts as an agent for revenue recognition purposes and therefore records revenue net of the revenue share payable to the partners. Upon receipt of the non-recurring, non-refundable initial collaboration fee, management records a deferred revenue liability and recognizes revenue on a straight-line basis over the life of the collaboration agreement. The Company excludes all sales taxes assessed to the Company’s customers from revenue. Sales taxes assessed on revenues are included in Accounts payable, accrued expenses and other on the Company’s condensed consolidated balance sheets until remitted to state agencies.
Recently issued accounting pronouncements	(c) Recently issued accounting pronouncements Accounting Standards Update No. 2020-06—Debt--Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) Issued in August 2020, this update is intended to reduce the unnecessary complexity of the current guidance thus resulting in more accurate accounting for convertible instruments and consistent treatment from one entity to the next. Under current GAAP, there are five accounting models for convertible debt instruments. Except for the traditional convertible debt model that recognizes a convertible debt instrument as a single debt instrument, the other four models, with their different measurement guidance, require that a convertible debt instrument be separated (using different separation approaches) into a debt component and an equity or a derivative component. Convertible preferred stock also is required to be assessed under similar models. The Financial Accounting Standard Board (“FASB”) decided to simplify the accounting for convertible instruments by removing certain separation models currently included in other accounting guidance that were being applied to current accounting for convertible instruments. Under the amendments in this update, an embedded conversion feature no longer needs to be separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost and a convertible preferred stock will be accounted for as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. The FASB also decided to add additional disclosure requirements in an attempt to improve the usefulness and relevance of the information being provided. The new standard is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The Company does not believe the adoption of this standard will have a material impact on its condensed consolidated financial statements. ASU 2021-04: Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity Classified Written Call Options In May 2021, the FASB issued ASU 2021-04, "Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity Classified Written Call Options'" ("ASU 2021-04"), which introduces a new way for companies to account for warrants either as stock compensation or derivatives. Under the new guidance, if the modification does not change the instrument's classification as equity, the company accounts for the modification as an exchange of the original instrument for a new instrument. In general, if the fair value of the "new" instrument is greater than the fair value of the "original" instrument, the excess is recognized based on the substance of the transaction, as if the issuer has paid cash. The effective date of the standard is for interim and annual reporting periods beginning after December 15, 2021 for all entities, and early adoption is permitted. The Company is currently evaluating the impact of the new guidance and does not expect the adoption of this guidance will have a material impact on its condensed consolidated financial statements and disclosures.
Recently adopted accounting pronouncements	(d) Recently adopted accounting pronouncements Accounting Standards Update No. 2020-10—Codification Improvements Issued in October 2020, this release updates various codification topics by clarifying or improving disclosure requirements to align with the SEC’s regulations. The Company adopted ASU 2020-10 as of the reporting period beginning January 1, 2021. The adoption of this update did not have a material effect on the Company’s condensed consolidated financial statements. Accounting Standards Update No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 Issued in January 2020, the amendments in this update affect all entities that apply the guidance in Topics 321, 323, and 815 and (1) elect to apply the measurement alternative or (2) enter into a forward contract or purchase an as option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting. The Company applies the guidance included in Topic 815 to its derivative liabilities but does not intend on applying the new measurement alternative included in the update. The new standard is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. Accounting Standards Update No. 2019-12—Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Issued in December 2019, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The amendments in this update simplify the accounting for income taxes by removing certain exceptions to guidance in Topic 740. The specific areas of potential simplification were submitted by stakeholders as part of the FASB’s simplification initiative. Adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.
Presentation	(e) Presentation Certain balances in the 2020 consolidated financial statements have been reclassified to conform to the presentation in the 2021 condensed consolidated financial statements, primarily the classification and presentation of deferred revenue on the condensed consolidated balance sheet.

Potentially Dilutive Securities (Tables)

9 Months Ended

Sep. 30, 2021

Potentially Dilutive Securities

Schedule of computation of basic and diluted net losses per common share


	Three months ended				Nine months ended
	September 30,				September 30,
	2021		2020		2021		2020
Basic numerator:
Net income (loss) attributable to XpresSpa Group, Inc.	$	5,597	$	(6,110)	$	74	$	(74,805)
Less: deemed dividend on warrants and preferred stock		—		—		—		(945)
Net income (loss) attributable to common shareholders	$	5,597	$	(6,110)	$	74	$	(75,750)
Basic denominator:
Basic weighted average shares outstanding		105,531,418		61,106,894		103,950,731		35,309,004
Basic income (loss) per share	$	0.05	$	(0.10)	$	—	$	(2.15)

Diluted numerator:
Net income (loss) attributable to common shareholders	$	5,597	$	(6,110)	$	74	$	(75,750)
Diluted denominator:
Diluted weighted average shares outstanding		105,957,317		61,106,894		104,301,344		35,309,004
Diluted net income (loss) per share	$	0.05	$	(0.10)	$	—	$	(2.15)


Net income (loss) per share data presented above excludes from the calculation of diluted net income (loss) the following potentially dilutive securities, having an anti-dilutive impact.
Both vested and unvested options to purchase an equal number of shares of Common Stock		2,606,771		706,073		2,631,246		706,073
Unvested RSUs to issue an equal number of shares of Common Stock		821,361		—		876,131		—
Warrants to purchase an equal number of shares of Common Stock		37,907,794		20,818,889		37,903,835		20,818,889
Convertible notes on an as converted basis		—		438,017		—		438,017
Total number of potentially dilutive securities excluded from the calculation of loss per share attributable to common shareholders		41,335,926		21,962,979		41,411,212		21,962,979

Cash, Cash Equivalents, and Restricted Cash (Tables)

9 Months Ended

Sep. 30, 2021

Cash, Cash Equivalents, and Restricted Cash

Schedule of cash, cash equivalents, and restricted cash


	September 30, 2021		December 31, 2020
Cash denominated in United States dollars	$	106,384	$	88,636
Cash denominated in currency other than United States dollars		2,274		1,158
Restricted cash		751		701
Other		503		7
Total cash, cash equivalents and restricted cash	$	109,912	$	90,502

Other current assets (Tables)

9 Months Ended

Sep. 30, 2021

Other current assets

Schedule of other current assets


	September 30, 2021		December 31, 2020
Prepaid expenses	$	1,787	$	1,135
Other		48		186
Total other current assets	$	1,835	$	1,321

Accounts payable, accrued expenses and other (Tables)

9 Months Ended

Sep. 30, 2021

Accounts payable, accrued expenses and other

Schedule of accounts payable, accrued expenses and other



	September 30, 2021		December 31, 2020
Accounts payable	$	5,436	$	2,440
Litigation accrual		890		2,221
Accrued compensation		396		306
Tax-related liabilities		534		551
Gift certificates and loyalty reward program liabilities		495		495
Common Area Maintenance Accrual		298		—
Security deposit		171		161
Other		504		294
Total accounts payable, accrued expenses and other current liabilities	$	8,724	$	6,468

Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2021

Intangible Assets

Schedule of company's intangible assets


	September 30, 2021						December 31, 2020
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Trade name	$	1,339	$	(1,063)	$	276	$	1,339	$	(899)	$	440
Software		2,849		(400)		2,449		694		(264)		430
Total intangible assets	$	4,188	$	(1,463)	$	2,725	$	2,033	$	(1,163)	$	870

Schedule of estimated amortization expense


Calendar Years ending December 31,	Amount
Remaining 2021		192
2022		1,118
2023		786
2024		629
Total	$	2,725

Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases

Schedule of supplemental cash flow information related to leases


	Nine months ended September 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(3,189)	$	(1,074)
Leased assets obtained in exchange for new and modified operating lease liabilities	$	(3,673)	$	(811)
Leased assets surrendered in exchange for termination of operating lease liabilities	$	9	$	—

Schedule of future minimum commitments

As of September 30, 2021, operating leases contain the following future minimum commitments:


Calendar Years ending December 31,	Amount
Remaining 2021	$	986
2022		3,551
2023		3,071
2024		2,545
2025		1,760
Thereafter		1,526
Total future lease payments		13,439
Less: interest expense at incremental borrowing rate		(2,486)
Net present value of lease liabilities	$	10,953

Schedule of other assumptions and pertinent information


Weighted average remaining lease term:	4.27	years
Weighted average discount rate used to determine present value of operating lease liability:	10.07	%

Debt (Tables)

9 Months Ended

Sep. 30, 2021

Debt

Schedule of total debt


	September 30, 2021		December 31, 2020
Promissory note, unsecured	$	5,653	$	5,653
Total debt	$	5,653	$	5,653

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2021

Stockholders' Equity

Schedule of information about all warrant activity


		Exercise
	No. of Warrants	price range
December 31, 2020	48,044,381	$	0.525 – 300.00
Granted	1,168,088	$	1.70 - 2.125
Exercised	(11,223,529)	$	1.70 - 2.125
Expired	(278)	$	300.00
September 30, 2021	37,988,662	$	0.525 - 6.566

Schedule of fair value of stock options estimated


Share price of the Company’s Common Stock on the grant date:	$	1.26 - 5.01
Exercise price:	$	1.26 - 5.01
Expected volatility:		123	%
Expected dividend yield:		0	%
Annual average risk-free rate:		0.37	%
Expected term:		5.38	years

Stock options and restricted stock units activity


	RSUs			XpresTest RSAs			Stock options
		Weighted			Weighted			Weighted
		average			average			average		Exercise
	No. of	grant date		No. of	grant date		No. of	exercise		price
	RSUs	fair value		RSAs	fair value		options	price		range
Outstanding as of December 31, 2020	—	$	—	28.75	$	11,390.35	1,353,888	$	3.82	$	1.53 - 2,460.00
Granted	1,370,167		1.58	120.00		5,227.20	1,668,297		1.56		1.19 - 1.61
Exercised/Vested	(427,625)		1.50	(141.25)		6,229.35	(8,334)		1.53
Forfeited	—		—	—		—	(183,230)		1.61
Outstanding as of September 30, 2021	942,542	$	1.61	7.50	$	9,978.78	2,830,621	$	2.63	$	1.19 - 2,460.00
Exercisable as of September 30, 2021							858,905	$	2.63	$	1.19 - 2,460.00

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Measurements

Schedule of derivative liabilities measured at fair value on a recurring basis


			Fair value measurement at reporting date using
			Quoted prices in
			active markets		Significant other		Significant
			for identical		observable		unobservable
	Balance		assets (Level 1)		inputs (Level 2)		inputs (Level 3)
As of September 30, 2021:
Recurring fair value measurements
Equity securities:
Route1, Inc.	$	1,052	$	—	$	1,052	$	—
Total equity securities		1,052		—		1,052		—
Total recurring fair value measurements	$	1,052	$	—	$	1,052	$	—

As of December 31, 2020
Recurring fair value measurements
Equity securities:
Route1	$	1,768	$	—	$	1,768	$	—
Total equity securities		1,768		—		1,768		—
Total recurring fair value measurements	$	1,768	$	—	$	1,768	$	—

Segment Information (Tables)

9 Months Ended

Sep. 30, 2021

Segment Information

Schedule of segment reporting information, by segment


	For the three months ended
	September 30,
	2021		2020
Revenue
XpresSpa^TM	$	1,415	$	140
XpresTest^TM		25,351		—
Treat^TM		—		—
Corporate and other		—		61
Total revenue	$	26,767	$	201


Operating income (loss)
XpresSpa^TM	$	(1,595)	$	(5,699)
XpresTest^TM		12,015		(1,791)
Treat^TM		(2,305)		—
Corporate and other		(1,058)		(1,733)
Total operating income (loss)	$	7,057	$	(9,223)


	For the nine months ended
	September 30,
	2021		2020
Revenue
XpresSpa^TM	$	2,172	$	7,729
XpresTest^TM		42,199		—
Treat^TM		—		—
Corporate and other		—		333
Total revenue	$	44,371	$	8,062


Operating income (loss)
XpresSpa^TM	$	(4,828)	$	(16,103)
XpresTest^TM		14,597		(1,791)
Treat^TM		(4,115)		—
Corporate and other		(3,719)		(4,761)
Total operating income (loss)	$	1,935	$	(22,655)



	September 30,		September 30,
	2021		2020
Assets
XpresSpa^TM	$	15,278	$	5,816
XpresTest^TM		19,428		—
Treat^TM		3,116		—
Corporate and other		91,455		75,713
Total assets	$	129,277	$	81,529

General (Details) $ / shares in Units, $ in Thousands									3 Months Ended			9 Months Ended		15 Months Ended	54 Months Ended
General (Details) $ / shares in Units, $ in Thousands	Oct. 13, 2021 item	Apr. 21, 2021 item	Apr. 08, 2021 item	Mar. 15, 2021 item	Mar. 08, 2021 item	Feb. 16, 2021 item	Jan. 20, 2021 item	Jan. 12, 2021 item	Dec. 31, 2021 location	Sep. 30, 2021 USD ($) item location $ / shares shares	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) segment item location $ / shares shares	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) item location $ / shares shares	Sep. 30, 2021 USD ($) item location $ / shares shares	Dec. 31, 2020 USD ($)
Number of operating segments \| segment												3
Number of airports										12		12		12	12
Number of airport locations \| location										11		11		11	11
Recognized revenue \| $										$ 24		$ 24		$ 24	$ 24	$ 914
Lease concessions \| $										585	$ 611	1,568	$ 1,379	3,600	3,600
Cash and cash equivalents \| $										109,161		109,161		109,161	109,161	89,801
Total current assets \| $										113,100		113,100		113,100	113,100	91,779
Total current liabilities \| $										17,198		17,198		17,198	17,198	13,477
Working capital \| $										$ 95,902		$ 95,902		$ 95,902	$ 95,902	$ 78,302
Number of Wellness Centers										14		14		14	14
Boston Logan International Airport [Member]
Number of separate testing rooms								4
Salt Lake City International Airport [Member]
Number of separate testing rooms							4
Newark Liberty International Airport [Member]
Number of separate testing rooms						4
Houston George Bush Intercontinental Airport [Member]
Number of separate testing rooms					4
Dulles International Airport [Member]
Number of separate testing rooms				9
Reagan National Airport [Member]
Number of separate testing rooms				4
Seattle-Tacoma International Airport [Member]
Number of separate testing rooms			8
San Francisco International Airport [Member]
Number of separate testing rooms		9
Hartsfield-Jackson Atlanta International Airport [Member]
Number of separate testing rooms	6
Minimum
Rent concession period												3 months
Maximum
Rent concession period												28 months
XpresSpa
Number of location reopenings planned \| location									2
XpresSpa \| Dubai International Airport [Member]
Number of operating locations \| location										3		3		3	3
XpresSpa \| Schiphol Amsterdam International Airport [Member]
Number of operating locations \| location										3		3		3	3
Placement Agent Agreement
Cash fees paid \| $												$ 2,154
December 2020 Warrants
Total of warrants exercised \| shares												11,223,529
Gross proceeds \| $												$ 19,161
H.C.W. Warrants
Warrants issued \| shares										842,588		842,588		842,588	842,588
Cash fees paid \| $												$ 2,154
Warrant exercise price \| $ / shares										$ 2.125		$ 2.125		$ 2.125	$ 2.125
H.C.W. Warrants \| Placement Agent Agreement
Warrants issued \| shares										842,588		842,588		842,588	842,588
Warrant exercise price \| $ / shares										$ 2.125		$ 2.125		$ 2.125	$ 2.125
Palladium Warrants
Warrants issued \| shares										325,500		325,500		325,500	325,500
Warrant exercise price \| $ / shares										$ 1.70		$ 1.70		$ 1.70	$ 1.70
Palladium Warrants \| Placement Agent Agreement
Warrants issued \| shares										325,500		325,500		325,500	325,500
Warrant exercise price \| $ / shares										$ 1.70		$ 1.70		$ 1.70	$ 1.70

Significant Accounting and Reporting Policies (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue contract amount	$ 2,000
Revenue recognition, after milestone reached	$ 1,500
Percentage of revenue recognition after milestone reached	75.00%
Total revenue		$ 26,767	$ 201	$ 44,371	$ 8,062
XpresTest
Total revenue		25,351		42,199
XpresTest \| MSAs
Recognized revenue			$ 3,186	$ 16,843	$ 3,186
Variable Interest Entity, Primary Beneficiary
Total revenue		$ 25,351

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

Variable Interest Entities (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Variable Interest Entity [Line Items]
Assets	$ 129,277			$ 81,529			$ 129,277	$ 81,529	$ 103,133
Liabilities	25,354						25,354		$ 22,762
Total revenue	26,767			201			44,371	8,062
Net income (loss)	6,595	$ (4,730)	$ (808)	$ (6,643)	$ (58,471)	$ (10,725)	1,057	$ (75,839)
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Assets	1,080						1,080
Liabilities	0						$ 0
Total revenue	25,351
Net income (loss)	$ (455)

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

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- Definition

Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.

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The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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Potentially Dilutive Securities (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share Disclosure
Net income (loss) attributable to XpresSpa Group, Inc.	$ 5,597	$ (6,110)	$ 74	$ (74,805)
Less: deemed dividend on warrants and preferred stock				(945)
Net income (loss)attributable to common shareholders, Basic	5,597	(6,110)	74	(75,750)
Net income (loss) attributable to common shareholders, Diluted	$ 5,597	$ (6,110)	$ 74	$ (75,750)
Basic weighted average shares outstanding	105,531,418	61,106,894	103,950,731	35,309,004
Diluted weighted average shares outstanding	105,957,317	61,106,894	104,301,344	35,309,004
Basic net income (loss) per share (in dollar per share)	$ 0.05	$ (0.10)		$ (2.15)
Diluted net income (loss) per share (in dollar per share)	$ 0.05	$ (0.10)		$ (2.15)
Net income (loss) per share data presented above excludes from the calculation of diluted net income (loss) the following potentially dilutive securities, having an anti-dilutive impact
Total number of potentially dilutive securities excluded from the calculation of loss per share attributable to common shareholders	41,335,926	21,962,979	41,411,212	21,962,979
Vested and unvested options to purchase an equal number of shares of Common Stock
Net income (loss) per share data presented above excludes from the calculation of diluted net income (loss) the following potentially dilutive securities, having an anti-dilutive impact
Total number of potentially dilutive securities excluded from the calculation of loss per share attributable to common shareholders	2,606,771	706,073	2,631,246	706,073
Unvested Restricted Stock Units ("RSU")
Net income (loss) per share data presented above excludes from the calculation of diluted net income (loss) the following potentially dilutive securities, having an anti-dilutive impact
Total number of potentially dilutive securities excluded from the calculation of loss per share attributable to common shareholders	821,361		876,131
Warrants
Net income (loss) per share data presented above excludes from the calculation of diluted net income (loss) the following potentially dilutive securities, having an anti-dilutive impact
Total number of potentially dilutive securities excluded from the calculation of loss per share attributable to common shareholders	37,907,794	20,818,889	37,903,835	20,818,889
Convertible notes
Net income (loss) per share data presented above excludes from the calculation of diluted net income (loss) the following potentially dilutive securities, having an anti-dilutive impact
Total number of potentially dilutive securities excluded from the calculation of loss per share attributable to common shareholders		438,017		438,017

Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Cash, Cash Equivalents, and Restricted Cash
Cash denominated in United States dollars	$ 106,384	$ 88,636
Cash denominated in currency other than United States dollars	2,274	1,158
Restricted cash	751	701
Credit and debit card receivables	503	7
Total cash, cash equivalents and restricted cash	$ 109,912	$ 90,502	$ 62,595	$ 2,635

Cash, Cash Equivalents, and Restricted Cash - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Cash, Cash Equivalents, and Restricted Cash
Deposits in excess of FDIC limits	$ 106,120	$ 88,556
Amount of cash in overseas accounts	$ 2,274	$ 1,158

Other current assets - Schedule of other current assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Other current assets
Prepaid expenses	$ 1,787	$ 1,135
Other	48	186
Total other current assets	$ 1,835	$ 1,321

Accounts payable, accrued expenses and other - Accounts payable, accrued expenses and other (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accounts payable, accrued expenses and other
Accounts payable	$ 5,436	$ 2,440
Litigation accrual	890	2,221
Accrued compensation	396	306
Tax-related liabilities	534	551
Gift certificates and loyalty reward program liabilities	495	495
Common Area Maintenance Accrual	298
Security deposit	171	161
Other	504	294
Total accounts payable, accrued expenses and other current liabilities	$ 8,724	$ 6,468

Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 4,188	$ 2,033
Accumulated Amortization	(1,463)	(1,163)
Net Carrying Amount	2,725	870
Trade name
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,339	1,339
Accumulated Amortization	(1,063)	(899)
Net Carrying Amount	276	440
Software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,849	694
Accumulated Amortization	(400)	(264)
Net Carrying Amount	$ 2,449	$ 430

Intangible Assets - Schedule of Finite-Lived Intangible Assets, Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
Remaining 2021	$ 192
2022	1,118
2023	786
2024	629
Total	$ 2,725	$ 870

Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Intangible Assets
Amortization expense	$ 95	$ 603	$ 300	$ 1,742

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		15 Months Ended	54 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2021
Lease concessions	$ 585	$ 611	$ 1,568	$ 1,379	$ 3,600	$ 3,600
Variable lease payments	51	45	262	468
Cash paid for minimum annual rental obligations	$ 185	$ 278	$ 399	$ 1,074
Minimum
Rent concession period			3 months
Maximum
Rent concession period			28 months

Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Leases
Operating cash flows from operating leases	$ (3,189)	$ (1,074)
Leased assets obtained in exchange for new and modified operating lease liabilities	(3,673)	$ (811)
Leased assets surrendered in exchange for termination of operating lease liabilities	$ 9

Leases - Future Minimum Commitments (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Leases
Remaining 2021	$ 986
2022	3,551
2023	3,071
2024	2,545
2025	1,760
Thereafter	1,526
Total future lease payments	13,439
Less: interest expense at incremental borrowing rate	(2,486)
Net present value of lease liabilities	$ 10,953

Leases - Other Assumptions and Pertinent Information (Details)	Sep. 30, 2021
Leases
Weighted average remaining lease term (years):	4 years 3 months 7 days
Weighted average discount rate used to determine present value of operating lease liability:	10.07%

Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total debt	$ 5,653	$ 5,653
Promissory note, unsecured
Debt Instrument [Line Items]
Total debt	$ 5,653	$ 5,653

Debt - Paycheck Protection Program (Details) - Paycheck Protection Program - USD ($)	May 02, 2020	Sep. 30, 2021	May 01, 2020
Debt Instrument [Line Items]
Debt instrument, face amount			$ 5,653,000
Interest rate (as a percent)			1.00%
Deferral period	6 months
Accrued interest payments		$ 78,000
Payments on PPP Loan	$ 0

Stockholders' Equity - Schedule of Changes in Warrants Activity (Details) - Warrants	9 Months Ended
	Sep. 30, 2021 $ / shares shares
Warrants [Line Items]
Outstanding, Opening Balance \| shares	48,044,381
Granted \| shares	1,168,088
Exercised \| shares	(11,223,529)
Expired \| shares	(278)
Outstanding, Ending Balance \| shares	37,988,662
Exercise price range, Expired	$ 300.00
Minimum
Warrants [Line Items]
Exercise price range, Beginning Balance	0.525
Exercise price range, Granted	1.70
Exercise price range, Exercised	1.70
Exercise price range, Ending Balance	0.525
Maximum
Warrants [Line Items]
Exercise price range, Beginning Balance	300.00
Exercise price range, Granted	2.125
Exercise price range, Exercised	2.125
Exercise price range, Ending Balance	$ 6.566

Stockholders' Equity - Warrants Narrative (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($) $ / shares shares
Placement Agent Agreement
Warrants [Line Items]
Cash fees paid \| $	$ 2,154
Palladium Warrants
Warrants [Line Items]
Warrants to purchase shares of common stock	325,500
Warrant exercise price \| $ / shares	$ 1.70
Palladium Warrants \| Placement Agent Agreement
Warrants [Line Items]
Warrants to purchase shares of common stock	325,500
Warrant exercise price \| $ / shares	$ 1.70
H.C.W. Warrants
Warrants [Line Items]
Warrants to purchase shares of common stock	842,588
Cash fees paid \| $	$ 2,154
Warrant exercise price \| $ / shares	$ 2.125
H.C.W. Warrants \| Placement Agent Agreement
Warrants [Line Items]
Warrants to purchase shares of common stock	842,588
Warrant exercise price \| $ / shares	$ 2.125
December 2020 Warrants
Warrants [Line Items]
Total of warrants exercised	11,223,529
Gross proceeds \| $	$ 19,161

Stockholders' Equity - Stock-Based Compensation Narratives (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Aug. 31, 2021
Stockholders Equity [Line Items]
Stock-based compensation expense		$ 819	$ 470	$ 2,152	$ 496
Shares authorized to repurchase						15,000,000
Repurchase and retirement of common stock		$ 450		$ 450
Repurchase and retirement of common stock (in shares)		250,000		250,000
Stock Compensation Plan
Stockholders Equity [Line Items]
Options, expiry period				10 years
Options, vesting period				1 year
XpresTest 2020 Plan [Member] \| RSUs
Stockholders Equity [Line Items]
Unrecognized stock-based compensation related to the awards		$ 14		$ 14
Common stock repurchased	7
Maximum \| 2020 Plan [Member]
Stockholders Equity [Line Items]
Number of shares authorized			5,000,000		5,000,000
Directors, Employees And Consultants \| XpresTest 2020 Plan [Member]
Stockholders Equity [Line Items]
Number of shares authorized		200		200
Percentage of shares authorized for issuance				20.00%

Stockholders' Equity - Variables Used in Estimating Fair Value of Stock Options (Details) - Employee Stock Option [Member]	9 Months Ended
	Sep. 30, 2021 $ / shares
Stockholders Equity [Line Items]
Expected volatility:	123.00%
Expected dividend yield:	0.00%
Annual average risk-free rate:	0.37%
Expected term:	5 years 4 months 17 days
Minimum
Stockholders Equity [Line Items]
Share price of the Company's Common Stock on the grant date:	$ 1.26
Exercise price:	1.26
Maximum
Stockholders Equity [Line Items]
Share price of the Company's Common Stock on the grant date:	5.01
Exercise price:	$ 5.01

Stockholders' Equity - Stock Options and RSU Activity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2021
Stockholders Equity [Line Items]
No. of options, Outstanding as of December 31, 2020	1,353,888
No. of options, Granted	1,668,297
No. of options, Exercised/Vested	(8,334)
No. of options, Forfeited	(183,230)
No. of options, Outstanding as of June 30, 2021	2,830,621
No. of options, Exercisable as of June 30, 2021	858,905
Weighted average grant date fair value, Balance at December 31, 2020	$ 3.82
Weighted average grant date fair value, Granted	1.56
Weighted average grant date fair value, Exercised/Vested	1.53
Weighted average grant date fair value, Forfeited	1.61
Weighted average grant date fair value, Balance at June 30, 2021	2.63
Weighted average grant date fair value, exercisable at June 30, 2021	$ 2.63
RSUs
Stockholders Equity [Line Items]
No. of options, Granted	1,370,167
No. of options, Exercised/Vested	(427,625)
No. of options, Outstanding as of June 30, 2021	942,542
Weighted average grant date fair value, Granted	$ 1.58
Weighted average grant date fair value, Exercised/Vested	1.50
Weighted average grant date fair value, Balance at June 30, 2021	$ 1.61
XpresTest RSAs
Stockholders Equity [Line Items]
No. of options, Outstanding as of December 31, 2020	28.75
No. of options, Granted	120.00
No. of options, Exercised/Vested	(141.25)
No. of options, Outstanding as of June 30, 2021	7.50
Weighted average grant date fair value, Balance at December 31, 2020	$ 11,390.35
Weighted average grant date fair value, Granted	5,227.20
Weighted average grant date fair value, Exercised/Vested	6,229.35
Weighted average grant date fair value, Balance at June 30, 2021	9,978.78
Minimum
Stockholders Equity [Line Items]
Exercise price range, Outstanding as of December 31, 2020	1.53
Exercise price range, Granted	1.19
Exercise price range, Outstanding as of March 31, 2021	1.19
Exercise price range, Exercisable as of March 31, 2021	1.19
Maximum
Stockholders Equity [Line Items]
Exercise price range, Outstanding as of December 31, 2020	2,460.00
Exercise price range, Granted	1.61
Exercise price range, Outstanding as of March 31, 2021	2,460.00
Exercise price range, Exercisable as of March 31, 2021	$ 2,460.00

Fair Value Measurements (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Equity securities	$ 1,052	$ 1,768
Assets, fair value	1,052	1,768
Route1 Inc
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Equity securities	1,052	1,768
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Equity securities	1,052	1,768
Assets, fair value	1,052	1,768
Fair Value, Inputs, Level 2 \| Route1 Inc
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Equity securities	$ 1,052	$ 1,768

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Mar. 22, 2021	Sep. 30, 2021	Sep. 30, 2021
Other nonoperating income expense
Unrealized gain on remeasurement of common stock and warrants		$ 302	$ 716
Route1 Inc
Warrants issued	3,000,000
Exercise of warrants	1,355,443
Number of shares owned		3,855,443	3,855,443

Income Taxes (Details) $ in Thousands	9 Months Ended
Income Taxes (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Income Taxes.
Effective tax rate, global	0.13%
Effective tax rate, discontinued operations	0.00%
Income tax expenses, state	$ 79

Commitments and Contingencies (Details)					1 Months Ended	9 Months Ended
Commitments and Contingencies (Details)	May 28, 2021 USD ($)	Dec. 11, 2020 USD ($)	May 26, 2020 USD ($) employee	Mar. 07, 2018 USD ($)	Mar. 31, 2015 employee	Sep. 30, 2021 USD ($) individual	Dec. 31, 2020 USD ($)	Mar. 07, 2020	Jan. 03, 2020 USD ($)	Nov. 22, 2019	Mar. 31, 2019 USD ($)
Loss Contingencies [Line Items]
Lease term										5 years
Number of individuals joined the case \| individual						415
Route1 Security Corporation \| Group Mobile Intl, LLC
Loss Contingencies [Line Items]
Noncontrolling interest, ownership percentage by parent								100.00%
Accrued Liabilities
Loss Contingencies [Line Items]
Estimated litigation liability, current						$ 890,000	$ 2,221,000
In re Chen et al
Loss Contingencies [Line Items]
Number of former employees \| employee					4
Notice of FLSA misclassification claim term					3 years
Rodger Jenkins and Gregory Jones Lawsuit
Loss Contingencies [Line Items]
Estimate of possible loss									$ 1,500,000		$ 750,000
Alleged Breaches of a Membership Purchase Agreement
Loss Contingencies [Line Items]
Loss contingency damages sought				$ 567,000
Rodger Jenkins and Gregory Jones
Loss Contingencies [Line Items]
Loss contingency damages sought	$ 750,000	$ 750,000
Loss contingency damages awarded	$ 948,000	600,000
Loss contingency, interest rate	0.04%
Litigation amount denied by court		$ 150,000
Loss contingency litigation						$ 750,000
Kyle Collins
Loss Contingencies [Line Items]
Penalties per employee per pay period			$ 0.1
Number of current and former employees \| employee			240

Segment Information (Geographical Revenue, Segment Operating Loss and Total Asset Information) (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment			3
Revenue
Total revenue, net	$ 26,767	$ 201	$ 44,371	$ 8,062
Operating income (loss)
Total operating income (loss)	7,057	(9,223)	1,935	(22,655)
Assets
Total assets	129,277	81,529	129,277	81,529	$ 103,133
XpresSpa
Revenue
Total revenue, net	1,415	140	2,172	7,729
Operating income (loss)
Total operating income (loss)	(1,595)	(5,699)	(4,828)	(16,103)
Assets
Total assets	15,278	5,816	15,278	5,816
XpresTest
Revenue
Total revenue, net	25,351		42,199
Operating income (loss)
Total operating income (loss)	12,015	(1,791)	14,597	(1,791)
Assets
Total assets	19,428		19,428
Treat
Operating income (loss)
Total operating income (loss)	(2,305)		(4,115)
Assets
Total assets	3,116		3,116
Corporate and Other
Revenue
Total revenue, net		61		333
Operating income (loss)
Total operating income (loss)	(1,058)	(1,733)	(3,719)	(4,761)
Assets
Total assets	$ 91,455	$ 75,713	$ 91,455	$ 75,713