Q4 2023 XWELL Inc Earnings Call
Operator: Hello, and welcome to Xwell's Fiscal Year 2023 Earnings Results Conference Call. During today's presentation, all parties will be in a listen-only mode.
Hello, and welcome to XL fiscal year 2023 earnings results Conference call.
During todays presentation, all parties will be in a listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.
Operator: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. As a reminder, this conference call is being recorded on April 16, 2024. I would now like to turn the conference over to Suzanne Scrabis, Chief Financial Officer of Xwell. Please go ahead.
As a reminder, this conference call is being recorded on April 16 2024.
I would now like to turn the conference over to Suzanne scraped This chief financial Officer for X well. Please go ahead.
Suzanne: Good day, everyone and welcome to <unk> Conference call to review our year end 2023 financial results. Joining me on today's call is Scott Milford Excellence Chief Executive Officer.
Suzanne Scrabis: Good morning, everyone. Welcome to Xwell's conference call to review our year-end 2023 financial results. Joining me on today's call is Scott Milford, Xwell's Chief Executive Officer. We have posted our fiscal year earnings release on the investor relations section of our website, located at www.xwell.com.
Suzanne: We have posted our fiscal year earnings release on the Investor Relations section of our website located at Www Dot Com a link to the webcast of today's conference call can also be found on our site before turning the call over to Scott for his prepared remarks, we need to advise you of the following comments made on today's call.
Suzanne Scrabis: A link to the webcast of today's conference call can also be found on our site. Before turning the call over to Scott for his prepared remarks, we need to advise you of the following. Comments made on today's call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are based on current assumptions as of the date of this earnings conference call and webcasts and opinions that involve a variety of known and unknown risks and uncertainties.
Suzanne: May contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 section 27 of the Securities Act of 1933 and section 21 E of the Securities Exchange Act of 1934 piece.
Suzanne: These forward looking statements are based on current assumptions as of the date of this earnings conference call and webcast and opinions that involved a variety of known and unknown risks and uncertainties certainties.
Suzanne Scrabis: Actual results may differ materially from those contained in or suggested by such forward-looking statements. Important factors that might cause such differences include those set forth from time to time in our SEC filings, including our annual report on Form 10-K for the year ended December 31st, 2023, as well as our other current and periodic reports that we file with the SEC. With that said, I'd now like to turn the call over to Scott. Thanks.
Suzanne: Actual results may differ materially from those contained in or suggested by such forward looking statements.
Suzanne: Important factors that might cause such differences include those set forth from time to time in our SEC filings, including our annual report on Form 10-K for the year ended December 31, 2023, as well as our other current and periodic reports that we file with the SEC.
Suzanne: With that said I'd now like to turn the call over to Scott.
Scott R. Milford: Thanks, Suzanne. We appreciate everyone joining us today. Operationally, Xwell had a very productive year, during which we cost-effectively integrated new products, technologies, and services into our spas, expanded the scope and long-term value of our CDC Biosurveillance Partnership, acquired an out-of-airport business that was actively growing and evolving, expanded internationally, broadened our footprint to include spas and other transit Hubs, and made meaningful progress advancing a leaner business on our Now, let me turn to some of the specifics.
Speaker Change: Thanks, Suzanne we appreciate everyone joining us today.
Scott R. Milford: Operationally <unk> had a very productive year during which we cost effectively integrated new products technologies and services indoor spas.
Scott R. Milford: <unk> ended the scope and long term value of our C. D C bio surveillance partnership.
Scott R. Milford: Acquired in out of airport business that we're actively growing and evolving.
Scott R. Milford: Expanded internationally.
Scott R. Milford: Broadened our footprint to include spas and other transit hubs.
Scott R. Milford: And made meaningful progress advancing our leaner business on our path towards profitability.
Speaker Change: Now, let me turn to some of the specifics.
Speaker Change: Driven by more effective staff department and introduction of new services and technology to drive more passengers into our locations.
Scott R. Milford: Driven by more effective staff deployment and the introduction of new services and technology to drive more passengers into our location, our spas continue to perform better, with Express Spa delivering revenue growth of approximately 39% when compared to 2022. Our international airport spas also delivered solid operating performance, benefiting from enhanced operational efficiencies, new store growth, and integration with our U.S. retail strategy. Year over year, our international spas achieved revenue growth of approximately 40% when compared to 2022.
Speaker Change: Our spas continue to perform better with express par delivering revenue growth of approximately 39% when compared to 2022.
Speaker Change: Our International Airport Spas also delivered solid operating performance.
Speaker Change: Benefiting from enhanced operational efficiencies, new store growth and the integration with our U S retail strategy.
Speaker Change: Year over year, our international spas achieved revenue growth of approximately 40% when compared to 2022.
Speaker Change: We continue to capitalize on the growth of air travel in Europe.
Scott R. Milford: We continue to capitalize on the growth of air travel in Europe and the Middle East as these countries begin to open their doors to more business and leisure travel. In Q4, we opened our 11th international location at Abu Dhabi International Airport, one of the busiest airports in the Middle East and a key hub for both passenger and cargo traffic.
Speaker Change: The middle East as these countries begin to open their doors to more business and leisure travel.
Speaker Change: In Q4, we opened our 11th international location.
Speaker Change: Darby International Airport, one of the busiest airports in the middle East and a key hub for both passenger and cargo traffic.
Scott R. Milford: We're pleased with its performance out of the gate, beating our expectations by approximately 25%. Our goal with the spa business continues to be improving our unit economics, improving profitability through operational efficiencies, and the continued deployment of wellness products and services that we can sell at a higher mortgage. I'd now like to share our progress growing outside the Air Force. As you reported in mid-September 2023,
Speaker Change: We're pleased with this performance out of the gate, beating our expectations by approximately 25%.
Speaker Change: Our goal with the Spa business continues to be improving our unit economics improving.
Speaker Change: Improving profitability through operational efficiencies.
Speaker Change: And the continued deployment of wellness products and services.
We can sell at a higher margin.
Speaker Change: I'd now like to share our progress growing outside the airport.
Speaker Change: As you reported in mid September 2023.
Scott R. Milford: We completed our acquisition of Naples Wax for approximately one and a half million dollars and have been very busy integrating its three premium aesthetic centers into our portfolio. It continues to perform well, and it's executing above our initial expectation. In the fourth quarter of 2023, Naples WACs reported revenue growth of approximately 3% year-over-year.
We completed our acquisition of Naples wax for approximately one $5 million.
Speaker Change: And have been very busy integrating its three premium aesthetic centers into our portfolio.
Speaker Change: It continues to perform well and.
Speaker Change: And it's executing above our initial expense expectations.
Speaker Change: During the fourth quarter of 2023 Naples.
Speaker Change: Naples wax reported revenue growth of approximately 3% year over year.
Speaker Change: And we've seen strong momentum as we head into 2024.
Scott R. Milford: And we've seen strong momentum as we head into 2024. In February of this year, we unveiled plans to open three additional Naples wax locations, adding to our strong footprint in Southwest Florida and extending our reach into the vibrant and growing Tampa-St. Petersburg metro area.
Speaker Change: In February of this year, we unveiled plans to open three additional Naples wax locations.
Speaker Change: Adding to our strong footprint in southwest Florida.
Speaker Change: And extending our reach into the vibrant and growing Tampa St. Petersburg Metro area.
Speaker Change: Since then.
Scott R. Milford: Consistent with our project, we've executed additional Florida leases, including further expansion into the center of the state. Our goal with the Naples Wax brand is to extend its reach across the southeast with approximately 10 locations by early 2025. Furthermore, as we open new locations, we intend to incorporate additional aesthetic services into the model to drive new revenue and broaden the offerings at those locations. Furthermore, how does that business scale?
Speaker Change: With our projections we've executed.
Speaker Change: Additional Florida leases, including further expansion into the center of the state.
Speaker Change: Our goal with the Naples wax brand is to extend its reach across the south east with approximately 10 locations by early 2025.
Speaker Change: And as we opened new locations, we intend to incorporate additional aesthetic services into the model to drive new revenue and broaden the offerings at those locations.
Speaker Change: Furthermore.
Speaker Change: As that business scales.
Scott R. Milford: We're hopeful it'll provide frictionless alignment with our spa bridge, allowing more customers to experience Xwell. But our Naples wax brand isn't the only business model we're expanding outside the airport. I'm excited about our plans to take the Express Spa brand out of the airport with a new labor-light model in New York City's Penn Station, further solidifying our commitment to driving retail revenue growth and smart leverage of our brands beyond traditional vendors by having a spa at one of the busiest transit stations in the country.
Speaker Change: We're hopeful it'll provide frictionless alignment with our sponsor.
Speaker Change: Allowing more customers to experience X well.
Speaker Change: But our Naples waxed brand isn't the only business model, we're expanding outside the airport.
Speaker Change: I'm excited about our plans to take the express Bob brand out of the airport with a new Labor light model in New York City's Penn station.
Speaker Change: Further solidifying our commitment to driving retail revenue growth and leverage of our brands beyond traditional venues.
Speaker Change: Having a spa and one of the busiest transit stations in the country.
Scott R. Milford: One that serves more than 600,000 passengers daily is an ideal test of the concept's potential in a non-airport venue. To ensure its success, we've customized the New York City Penn Station express file layout to provide rapid commuters with quick-serve products and services including high-tech chair massages and 10-minute robotic manicures as well as curated retail aimed at the rail commuter.
Speaker Change: One that serves more than 600000 passengers daily is an ideal test of the concepts potential and a non airport venue.
Speaker Change: To ensure its success, we've customized the New York City Penn Station Express Spa layout to provide rapid commuters with quick serve products and services, including high Tech chair massage and 10 minute robotic managers as well as curated retail aimed at the rail computer.
Speaker Change: We also plan to accelerate other new growth strategies outside the airport, including the planned launch treat studios later this year.
Scott R. Milford: We also plan to accelerate other new growth strategies outside the airport, including the planned launch of Treat Studios later this year. The concept builds on our wellness focus, providing rentable space to establish practitioners in a uniquely designed environment that caters to their customers. We'll look to share details about TREAT Studios in the coming months. Now, as I've highlighted on prior earnings calls, Leveraging technology continues to play a critical role in our growth objective, enabling us to cost-effectively increase revenue, drive more retail traffic while also delivering an efficient experience for our customers. I'm happy to share that we have deployed our new autonomous chairs across most of our U.S. spa portfolio.
Speaker Change: The concept built on our wellness focus providing rentable space two established practitioners and a uniquely designed environment sector.
Speaker Change: Caters to the practitioners customers.
Speaker Change: We will look to share details about <unk> studios in the coming months.
Speaker Change: Now as I've highlighted on prior earnings calls.
Speaker Change: Leveraging technology continues to play a critical role in our growth objectives, enabling us to cost effectively increase revenue.
Speaker Change: More retail traffic, while also delivering an efficient experience for our customers.
Speaker Change: I'm happy to share that we have deployed our new autonomous chairs across most of our U S spot portfolio.
Speaker Change: Autonomous massage brings higher margins and is represented nearly 10% of all express Spa services in 2023.
Scott R. Milford: Autonomous massage brings higher margins and is projected to represent nearly 10% of all express spa services in 2023. We also expanded our partnership with Clockwork and launched autonomous manicure stations in our Las Vegas Harry Reid International Airport spa, bringing our total count to three locations. Since the initial launch of this pilot, we've seen 15 to 20% blended growth in the service. And looking ahead to 2024, we expect to continue our pilot in other U.S. locations, including potential expansion abroad.
Speaker Change: We also expanded our partnership with Clockwork and launched autonomous Medicare stations.
Speaker Change: Loss Vegas, Harry Reid International Airport Spa.
Speaker Change: Bringing our total count to three locations.
Speaker Change: Since the initial launch of this pilot.
Speaker Change: We've seen 15% to 20% blended growth in the service.
Speaker Change: And looking ahead to 2024 expect to continue our pilot in other U S locations, including potential expansion abroad.
Speaker Change: We've also expanded our service offerings with the introduction of our proprietary stretching surface and several of our express <unk> locations in the U S.
Scott R. Milford: We've also expanded our service offerings with the introduction of a proprietary stretching service in several of our ExpressFile locations in the U.S. Introduced in September 2023, Stretch complements the array of massage services already available and leverages the diverse expertise and capabilities of existing technicians.
Speaker Change: Introduced in September 2023.
Speaker Change: Stretch complements the array of massage services already available.
Speaker Change: And leverages, the diverse expertise and capabilities of existing technicians.
Scott R. Milford: And despite its late launch in 2023, Stretch is already showing initial signs of growth as we expand this offering in other airports and continue to market the service across the business. We believe integrating new technologies and offerings, coupled with the continued growth of our retail business, further strengthens the viability of our express spa business. Turning to our ExpressTestBiz, Since 2021, we've been helping the country in its effort to monitor and hopefully reduce the threat of pathogen transmission through the first ever national biosurveillance program in the United States. The initial collaboration with Ginkgo Bioworks and the CDC has evolved and expanded multiple times, and today has grown to include seven of the nation's busiest airports. Together, we're leveraging voluntary nasal swabs and wastewater from aircraft.
Speaker Change: And despite its late launch in 2023 trenches already showing initial signs of growth as we expand this offering and other airports and continue to market to service across the business.
Speaker Change: We believe integrating new technologies and offerings, coupled with the continued growth of our retail business further strengthens the viability of our express spot business.
Speaker Change: Turning to our express test business.
Speaker Change: Since 2021, we've been helping the country and its effort to monitor and hopefully reduce the threat of pathogen transmission through the first ever National Bio surveillance program in the United States.
Speaker Change: The initial collaboration with Gingko buyer works and the CDC has evolved and expanded multiple times and today has grown to include seven of the nation's busiest airports.
Together, we're leveraging voluntary nasal swabs.
Speaker Change: Wastewater from aircraft wastewater from airport waste trigger writers.
Scott R. Milford: Wastewater from the airport waste triturator, as well as air sampling from international travelers to detect more than 30 viral and bacterial pathogens. Additionally, the current program funding and scope were recently expanded to an estimated $36.7 million, reflecting an expansion with new collection locations at U.S. International Airports in Miami and Chicago and the rollout of multi-pathogen testing across the program. We take great pride in Xwell's ongoing support of this vital collaboration, and it's worth highlighting that the Biosurveillance Program continues to be one of the United States' first lines of defense against impending threats and has achieved several key milestones. For example,
Speaker Change: As well as air sampling from international travelers to detect more than 30 viral and bacterial pathogens.
Speaker Change: Additionally, the current program funding and scope were recently expanded to an estimated $36 $7 million.
Speaker Change: Reflecting an expansion with new collection locations at U S International airports in Miami and Chicago.
Speaker Change: And the rollout of multi pathogen testing across the program.
Speaker Change: We take great pride in excellent ongoing support of this vital collaboration.
Speaker Change: And it's worth highlighting that the bio surveillance program continues to be one of the United States first lines of defense against impending threats and has achieved several key milestones for example during 2023.
Scott R. Milford: During 2023, Xwell conducted approximately 330,000 tests on travelers from over 130 countries. The TGS program is also collecting over 7,000 samples a week, leading to the discovery of new variants and pathogens ahead of other surveillance programs. Notably, The Traveler-Based Genomic Surveillance Program has survived multiple rounds of congressional callbacks with COVID-19 funding, and the transition to multi-pathogen testing broadens the utility of the program and positions it for potential future growth. And while we're focused on growth and driving increased revenue,
Speaker Change: <unk> conducted approximately 330000 tests from travelers from over 130 countries.
Speaker Change: The TGF programs also collecting over 7000 samples a week.
Speaker Change: Leading to the discovery of new variants and pathogens ahead of others surveillance programs.
Speaker Change: Notably.
Speaker Change: The traveler base genomics surveillance program.
Speaker Change: Has survived multiple rounds of congressional callbacks with COVID-19 funding.
Speaker Change: And the transition to multi pathogen testing broadens the utility of the program and positions it for potential future growth.
Speaker Change: And while we're focused on growth and driving increased revenue.
Scott R. Milford: Our primary goal continues to be returning to profitability. During 2023, we believe we've made meaningful strides in optimizing our cost structure, diligently managing expenses, and enhancing our operating efficiency. Throughout the past year, we've continued to take measured steps to optimize our U.S. FOC to reflect a more profitable business, closing locations that we believe will not support our long-term profit expectations. Our measured steps have also included reductions in our operating cost structure. In 2023, we removed $11 million from the business in a combination of headcount, system, and process reduction.
Speaker Change: Our primary goal continues to be returning to profitability.
During 2023, we believe we've made meaningful strides in optimizing our cost structure.
Speaker Change: Diligently managing expenses and enhancing our operating efficiencies.
Speaker Change: Throughout the past year, we've continued to take measured steps to optimize our U S spot count.
Speaker Change: To reflect a more profitable business closing locations that we believe will not support.
Speaker Change: Our long term profit expectations.
Speaker Change: Further.
Speaker Change: Our measured steps have also included reductions in our operating cost structure.
Speaker Change: 2023, we removed a $11 million from the business and a combination of head count system and process reductions.
Scott R. Milford: In 2024, we expect an additional $5 million in savings as a result of these efforts. One of the key strategies we deployed in 2023 was a new your business, your unit, your team, system-wide initiative rolled out in mid-2023. The program is designed to position our wellness locations to operate more efficiently. The initiative fosters a culture of accountability by maximizing revenue, minimizing expenses, and achieving unit profitability. For instance... By optimizing staffing and adjusting employee hours, we've achieved labor savings ranging from 10 to 50% within our U.S. SPOT portfolio. In addition, in spas where notable labor savings have been observed.
Speaker Change: In 2024, we expect an additional $5 million in savings as a result of these efforts.
Speaker Change: One of the key strategies, we deployed in 2023.
Speaker Change: Was the New York business Your unit your team system wide initiatives.
Speaker Change: Rolled out in mid 2023 and.
Speaker Change: The program is designed to position our wellness locations to operate more efficiently.
Speaker Change: The initiative fostered a culture of accountability by maximizing revenue.
Speaker Change: Minimizing expenses and achieving unit profitability.
Speaker Change: For instance.
Speaker Change: By optimizing staffing and adjusting employee hours, we've achieved labor savings ranging from 10% to 50% within our U S spot portfolio.
Speaker Change: In addition.
Speaker Change: And spas were notable labor savings have been observed we have experienced revenue increases of up to 3%.
Scott R. Milford: We've experienced revenue increases of up to 3%, providing further proof of the success of the program. I'm pleased to report that initial results from our cost structure and return to profitability initiatives have been meaningful. As of December 31st, 2023, total cost of sales decreased approximately 40% year over year. In 2023, salaries, general, and administrative expenses decreased approximately 33% year over year. We continue to see opportunities for better performance in 2024. And we believe we're on a clear path to return to profitability. To reiterate,
Speaker Change: Providing further proof of the success of the program.
Speaker Change: I'm pleased to report that initial results from our cost structure and returned to profitability initiatives have been meaningful.
Speaker Change: As of December 31, 2023.
Speaker Change: Total cost of sales decreased approximately 40% year over year.
And 2023 salaries general and administrative expenses decreased approximately 33% year over year.
Speaker Change: We continue to see opportunities for better performance in 2024.
Speaker Change: And we believe we're on a clear path to return to profitability.
Speaker Change: And to reiterate.
Scott R. Milford: We're focused on multiple long-term strategic priorities, including Delivering Improved Results and Increasing Retail Revenue while Leveraging New Retail Products and Technology. Smart expansion, both domestically and internationally, accelerating Xwell's out-of-air portfolio growth. Launching our new Treat Studios model and continuing our collaboration. Global Governments in Biosecurity, optimizing efficiencies, driving strong operational execution, and Cultivating an Efficient and Cost-Effective Business Model. In summary, we're confident in our direction and optimistic about Xwell's position. With that, I'd like to briefly turn the call over to Suzanne for a recap of certain of our 2023 financial results. Thank you, Scott.
Speaker Change: We're focused on multiple long term strategic priorities.
Speaker Change: Included delivering improved results and increasing retail revenue.
Speaker Change: Leveraging new retail products and technologies.
Speaker Change: Smart expansion, both domestically and internationally.
Speaker Change: Accelerating excellence out of airport portfolio growth.
Speaker Change: Launching our new treat studios model.
Speaker Change: Continuing our collaboration with.
Speaker Change: With global governments and bio security.
Speaker Change: Optimizing efficiencies and driving strong operational execution.
Speaker Change: And cultivating an efficient and cost effective business model.
Speaker Change: In summary, we're confident in our direction and optimistic about <unk> position.
Speaker Change: With that I'd like to briefly turn the call over to Suzanne.
Suzanne: For a recap of certain of our 2023 financial results. Thank.
Suzanne Scrabis: Thank you, Scott. I'm now going to provide a brief synopsis of our fiscal year results. However, for details, please refer to the 10-K files with the SEC. In accordance with U.S. Generally Accepted Accounting Principles, 2023 results included non-cash, goodwill, and intangible asset impairment charges totaling approximately $8.9 million, primarily related to our HyperPoint unit and other assets related to TREAT and XpressSpot. As previously announced on April 12, 2024, the Audit Committee of the Board of Directors of the company, after audit work performed in consultation with management and with its independent registered public accounting firm, determined that the company incorrectly applied U.S. GAAP as related to the determination of the impairment of the company's Street Incorporated business segment for the 3 and 9 months ended September 30, 2023, in the quarterly report on Form 10-Q for the period ended September 30, 2023. The cumulative effect is an understatement of the impairment expenses as related to the treatment business segment of $1.6 million.
Suzanne: Thank you Scott.
Suzanne: Now going to provide a brief synopsis of our fiscal year results. However for details. Please refer to the 10-K filed with the SEC.
Suzanne: In accordance with U S. Generally accepted accounting principles 2023 results included noncash goodwill and intangible asset impairment charges totaling approximately $8 $9 million, primarily related to our hyper point unit and other assets related to treat and express spa.
Suzanne: As previously announced on April 12, 2020 for the audit Committee of the board of directors of the company. After audit work performed in consultation with management and with its independent registered public accounting firm determined that the company incorrectly applied U S. GAAP as it related to the determination of the impairment of the company's tree incorporated business segment.
Suzanne: For the three and nine months ended September 32023 in our quarterly report on Form 10-Q for the period ended September 32023.
Suzanne: The cumulative effect is an understatement of the impairment expenses as it related to the business segment of $1 $6 million as part of its determination. The audit committee concluded that it was appropriate to correct. The misapplication of GAAP described above for financial statements for Q3 2023 included in the third quarter.
Suzanne Scrabis: As part of its determination, the Audit Committee concluded that it was appropriate to correct the misapplication of GAAP described above for financial statements for Q3 2023 included in the third quarter quarterly report by restating such unaudited financial information because the errors in the financial statements are material to the financial statements for Q3 2023. As a result, the unaudited financial statements for Q3 2023 should no longer be relied on. Similarly, any previously issued or filed reports, press releases, earnings releases, investor presentations, or other communications describing the company's financial statements and other related financial information covering Q3 2023 should no longer be relied upon. These errors have no effect on the company's previously reported cash and cash equivalents, marketable security balances, or cash runway.
Suzanne: Quarterly report by Restating, such unaudited financial information because the errors in the financial statements are material to the financial statements for Q3 2023.
As a result.
Suzanne: Unaudited financial statements for Q3, 2023 should no longer be relied on similarly, any previously issued are found reports press releases earnings releases and investor presentations or other communications, describing the Companys financial statements and other related financial information covering Q3, 2023 should no longer be relied.
Suzanne: Apart.
Suzanne: These errors has no effect on the company's previously reported cash and cash equivalents or marketable security balances our cash runway prior to the restatement. The company previously recorded impairment charges of approximately $6 $8 million associated with certain intangible assets in its quarterly report on Form 10-Q for the quarter.
Suzanne Scrabis: Prior to the restatement, the company previously reported impairment charges of approximately $6.8 million associated with certain intangible assets in its quarterly report on Form 10-Q for the quarter ended September 30, 2023, filed with the SEC on November 14, 2023. Turning to our results for fiscal year 2023, total revenue was approximately $30.1 million and primarily consisted of approximately $19.5 million from express fry locations and treat locations, approximately $9.9 million from express tests, which includes Xwell's Biosurveillance Partnership and its HyperPoint business, and $650,000 from the Naples WAC Center, which was acquired near the end of the third quarter.
Suzanne: We ended September 32023 filed with the SEC on November 14 2023.
Suzanne: Turning to our results for fiscal year 2023, total revenue was approximately $31 million and primarily consisted of approximately $19 5 million from express <unk> locations and street locations approximately $9 9 million from express cast, which includes excellence bio surveillance partnership and its hype.
Suzanne: Her point business.
Suzanne: And 650000 from Naples, lack center, which was acquired any ended the third quarter turning to expenses our total cost.
Suzanne Scrabis: Turning to expenses, our total cost of sales decreased to $26.4 million from $43.9 million in the prior year. Switching to salary, general, and administrative expenses, demonstrating our cost-cutting efforts and initiatives, these expenses total $20.9 million compared to $31.2 million for the prior year. We reported an operating loss for the year of approximately $28.2 million compared to an operating loss of approximately $31.2 million in the prior year. As Scott has discussed in the past, and it is important to reiterate here, we continue to strategically invest in our long-term growth initiatives.
Suzanne: Sales decreased to $26 4 million from $43 9 million in the prior year.
Suzanne: <unk> two salary general and administrative expenses, demonstrating our cost cutting efforts and initiatives. These expenses totaled $20 $9 million compared to $31 $2 million for the prior year.
We reported an operating loss for the year of approximately $28 2 million compared to an operating loss of approximately $31 2 million in the prior year.
Suzanne: As Scott has discussed in the past and it is important to reiterate here that we continue to strategically invest in our long term growth initiatives.
Suzanne Scrabis: Our net loss attributable to Xwell was approximately $28 million compared to a net loss of approximately $32.7 million in the prior year. Turning to our balance sheet at year end, we had approximately $8.4 million of cash and cash equivalents, $14.6 million in marketable securities, total assets of approximately $26.6 million, and no long-term debt.
Suzanne: Our net loss attributable to <unk> was approximately $28 million compared to a net loss of approximately $32 $7 million in the prior year.
Suzanne: Turning to our balance sheet at year end, we had approximately $8 4 million of cash and cash equivalents $14 6 million and marketable securities total assets of approximately $26 6 million and no long term debt.
Suzanne: Looking ahead, we remain focused on continued improvements in execution, including prudent cost management and enhanced operational processes.
Suzanne Scrabis: Looking ahead, we remain focused on continued improvements in execution, including prudent cost management and enhanced operational processes. I look forward to speaking with you all again in the months ahead. I'll now turn the call back to the operator. Thank you very much.
Speaker Change: I look forward to speaking with you all again in the months ahead.
Speaker Change: Now I'll turn the call back to the operator.
Speaker Change: Thank you very much the conference has now concluded.
Speaker Change: You for you attending today's presentation you may now disconnect your lines and have a great day.
Speaker Change: [music].
Operator: Thank you very much. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines and have a great day.