Mon, May 20, 9:18 PM (304 days ago)
Xcel Brands, Inc. reported a net loss of $6.3 million for Q1 2024, compared to a $5.6 million loss in Q1 2023, driven by restructuring and transformation of its business model. The company's revenue decreased to $2.2 million from $6.1 million, primarily due to the exit from wholesale and direct-to-consumer operations. Licensing revenue remained stable at $2.2 million. Operating expenses were reduced to $4.0 million from $7.0 million, reflecting cost-cutting measures. Cash and cash equivalents stood at $1.6 million, with a net cash outflow from operations of $2.6 million. Management anticipates that existing cash and future cash flows will meet operating needs for the next 12 months. The company also raised $1.9 million through a public offering and private placement. Asset impairment charges of $2.3 million were recorded due to subleasing office space. Future uncertainties include the ongoing impact of economic conditions and the ability to maintain brand awareness and licensee relationships.