Tue, Aug 20, 9:09 PM (147 days ago)
LuxUrban Hotels Inc. filed an amended 10-Q for Q1 2024, restating its financials due to errors in revenue recognition and expense allocations. Key adjustments included a $1.5 million reduction in Channel Retained Funds and a $7.8 million bad debt expense, leading to a net loss of $42.2 million, a 1,416% increase from the previous year. Revenue fell 39% to $14 million, impacted by fewer rental units and lower revenue per available room (RevPAR) of $208. Total costs surged 104% to $35.5 million, significantly affecting gross profit, which turned negative at $21.6 million. Current liabilities rose sharply to $62 million, resulting in a working capital deficit of $56.9 million. Cash flow from operations showed a net outflow of $9.5 million. The company is facing significant liquidity challenges, raising concerns about its ability to continue as a going concern. Management is focused on improving operational efficiencies and securing additional capital while navigating uncertainties related to ongoing litigation and market conditions.