We appreciate everyone joining us today. The X-Well team delivered a solid second quarter, underscoring a strong momentum and progress we're seeing across our business. We're currently executing a focused, multi-pronged strategy to broaden our operational footprint, expand access to our wellness services, and deepen engagement with new and existing customers. We believe these efforts are already translating into measurable results. Operationally, over the past several months, we've hit multiple key milestones that reflect our ability to scale beyond the airport and into dynamic, high-growth customer wellness markets. Florida is an example of one of those markets. In June, we were proud to be named the official wellness spa of the Orlando Magic. A multi-year partnership, this agreement significantly boosts our brand visibility through year-round exposure across the Magic's digital and in-arena assets, including their scoreboard, the LED signage, app integration, sweepstakes, and co-branded events. We're particularly excited about the opportunity to host live activations this upcoming NBA season, directly engaging with fans and bringing our mission of accessible wellness to the community. As we've said, Florida is one of our strategic priority markets, and this partnership represents a pivotal step in expanding our reach and establishing the brand beyond travel-centric environments. We also recently deepened our partnership with Priority Pass, the world's leading airport experiences program. Our expanded relationship broadens member access to X-Wells offerings across our U.S. and international airport spa network. As part of this program, Priority Pass members can now enjoy a curated set of high-impact treatments, ranging from zero-gravity massage chairs, hydro-massage, serogen therapeutic beds, and more, all designed to support circulation, stress release, and overall wellness. This expanded offering aligns directly with our mission to transport airport time into moments of meaningful self-care and underscore Exwell's commitment to delivering high-impact wellness solutions to travelers where and when they need them the most. Additionally, we're also seeing nice momentum within our wellness retail, with particular success in high-demand categories such as transdermal patches and premium vitamins. These products are resonating well with our health-conscious customers and travelers. I'm also proud to share that Express Spa was recently named one of Yelp's most loved airport brands, ranking number 10 out of 25 based on millions of traveler reviews. This recognition by our customer base reinforces the strong brand equity we've built and highlights the growing demand for accessible, high-quality wellness experiences. We also recently unveiled a redesigning digital platform at xwell.com. It integrates all of our brands into one seamless user-first experience. Customers can now discover wellness locations, connect with spa staff, and schedule services with just a few clicks. Next, beginning with our New York JFK locations, we are rebranding our flagship Express Spa stores under the Xwell name. As part of a broader digital and brand evolution, this initiative underscores our commitment to unifying all Exwell offerings under one cohesive wellness-forward identity that better represents the breadth of services we provide and the vision guiding our future. As I shared in my December letter to shareholders, this transformation is more than just cosmetic. Whether a customer engages with us at an international airport terminal or steps into one of our brick-and-mortar retail locations, they will encounter a consistent, elevated standard of care, a standard that embodies actual core values of accessibility, innovation, and expert-led wellness. We are also continuing plans to expand beyond the airport environment and into key local markets with the introduction of new brick-and-mortar retail wellness centers. These off-airport locations offer a curated array of health, wellness, and beauty treatments, each delivering a cohesive, elevated, expert-led X-Well experience to an even broader audience. This summer marked a major milestone with the opening of our new wellness center in Clearwater, Florida. This location was modeled after our successful Naples Wax Centers. The Clearwater location delivers a premium experience focused on performance-based skin care and wellness treatments. Our guests can choose from waxing and facials with additional services such as massage, injectables, IB therapy, and compression services launching soon. All treatments are delivered by an experienced health care professional, reinforcing our commitment to expert-led care. To further enhance accessibility and customer loyalty, we've also introduced a flexible membership model that provides seamless access across both our Clearwater Center and our airport locations nationwide, making consistent self-care more accessible and rewarding. As we grow our wellness footprint, we're focusing on creating integrated, high-impact experiences that blend health, beauty, and convenience into a single, cohesive offering. In addition, we're preparing to open our new Tech Forward wellness destination in New York City's Penn Station. This grab-and-go tech forward destination will be focused on serving commuters, neighborhood locals, and tourists with wellness-focused retail, autonomous massage, and nail care services, enabling seamless and efficient experiences. We are also continuing to pursue strategic acquisitions of medical spas in key metropolitan markets. As possible entry points, we are targeting cities such as Orlando, Dallas, Salt Lake City, each offering strong population growth, high-disposable income, and a deeply embedded wellness culture. Through MedSpa expansion, we aim to introduce a state-of-the-art wellness and beauty treatments, AI-driven personalization, and innovative skin care. Services can range from facial aesthetics and injectables to body sculpting, laser therapy, massage, wellness recovery, and even physician-guided weight loss programs. Strategically, this initiative aligns with the rapidly expanding global medical spa market, which as I discussed last December, is benefiting from strong momentum within the rapidly expanding wellness market, and it has an expected compound annual growth rate of more than 15% and a total addressable market projected to surpass approximately 49 billion by 2030. Next, through our ongoing partnership with the CDC, Ex-Wall remains at the forefront of U.S. biosecurity. In March, we successfully secured a three-year extension of our traveler-based genomic surveillance program. Through this engagement and in partnership with the CDC and Ginkgo Bioworks Holdings, we remain a vital contributor to national public health. Along with our partners, we're leveraging our infrastructure and expertise to support national biosecurity efforts, and we have shown value time and time again as an early warning system for dangerous pathogens. We are gratified that our TGS program was recognized as a critical initiative by the incoming administration and that funding for this program was included in the recently passed legislation. So in summary, we've made meaningful progress against our priorities. We're diversifying access points, elevating brand relevance, and engaging with consumers wherever wellness matters the most, whether that's at an airport, in local communities, or across our digital platforms. Additionally, our operating results are beginning to reflect the strength of our execution. This positive momentum has also been recognized by the market, as reflected by our successful compliance with the Nasdaq's minimum bid price requirement. collectively our success is driven by exwell's exceptional team across every role from our frontline public health and biosecurity professionals to our highly trained massage therapists and beauty and wellness consultants exwell's people are dedicated to helping our customers and communities thrive and we remain deeply committed to recognizing developing and supporting our team for the critical contributions they make every day as we look ahead to the second half of 2025 and beyond, we remain committed to driving aligned growth both in and out of the airport. With a differentiated brand, accelerated momentum, and a clear strategic roadmap, Axwell is uniquely positioned to lead the evolution of modern self-care. Additionally, backed by our long-standing partnership with the CDC and continued operational discipline, I believe we are well-equipped to meet the increasing demand for integrated, high-impact wellness solutions. Just as important as we grow, we remain focused on managing resources responsibly and optimizing efficiencies to drive profitability. In short, I believe we have the right strategy, the right team, the right culture in place to drive sustained growth and create long-term value for our stakeholders. And now, Ian, I turn it over to you.
Speaker 2
Thank you, Ezra. I'm now going to provide a brief synopsis of our second quarter financial results. However, for details, please refer to the 10-Q filed with the SEC. Turning to our performance, second quarter 2025 total revenue increased sequentially to approximately $7.7 million dollars from 7.0 million dollars in the first quarter of 2025. Second quarter 2025 revenue primarily consisted of approximately 4.9 million from express spa locations, approximately 2.2 million from express test, which includes Exwell's biosurveillance partnership and its hyperpoint business. In addition, approximately 647,000 from Naples WAC Center. From a year-over-year comparison, it's worth noting that our 2024 second quarter total revenue of $9.3 million included additional CDC revenue, as we provided more services to airports than above the base contract amounts, which resulted in increased surge billing prices. Turning to expenses, our second quarter 2025 total cost of sales decreased year-over-year to $5.9 million from $6.2 million, while general and administrative expenses decreased year-over-year to $4.3 million from $4.7 million. Demonstrating our cost-cutting efforts and initiatives, second quarter total operating expenses decreased year-over-year to $4.5 million from $5.0 million. We reported an operating loss of approximately $2.7 million compared to an operating loss of approximately $1.9 million in the prior year, second quarter. Our net loss, attributable to Exwell, was approximately $2.3 million, compared to a net loss of approximately $2.0 million in a prior year, second quarter. Turning to our balance sheet, as of June 30, 2025, we had approximately $5.3 million of cash and cash equivalents and $2.9 million in market bill securities, total assets of approximately $11.8 million and no long-term debt. Looking ahead, we remain focused on continued improvements in execution, including enhanced operational processes. Thank you for joining us, and we look forward to speaking with you all again in months ahead. We'll now turn the call back to the operator.
