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XWELL Inc. (NASDAQ:XWEL), a company specializing in personal services with annual revenue of $33.9 million, announced a change in its independent accounting firm on Monday. The New York-based company has dismissed Marcum LLP and appointed CBIZ (NYSE:CBZ) CPAs P.C. as its new auditor for the fiscal year ending December 31, 2025.
The transition comes after CBIZ CPAs acquired the attest business of Marcum on November 1, 2024, with Marcum continuing to serve as XWELL’s auditor until April 21, 2025. XWELL’s Audit Committee approved the appointment of CBIZ CPAs following Marcum’s dismissal.
In its most recent financial statements for the years ended December 31, 2024, and 2023, Marcum’s reports did not contain any adverse opinion or disclaimer. However, the report for 2024 included an explanatory paragraph about the substantial doubt regarding XWELL’s ability to continue as a going concern. According to InvestingPro data, the company reported negative EBITDA of $11.16 million and is quickly burning through cash, though it maintains more cash than debt on its balance sheet.
XWELL disclosed that during its time with Marcum, there were no disagreements on accounting principles or practices, nor on financial statement disclosure or auditing scope that would have led to a mention in Marcum’s reports. However, the company did acknowledge a material weakness in its internal control over financial reporting, which included issues with accounting for leases, monitoring controls over financial reporting, controls over IT vendors, revenue process controls, and controls over foreign subsidiaries. InvestingPro analysis reveals that XWELL’s overall financial health score is rated as WEAK, with investors anticipating the next earnings report on May 14, 2025. For deeper insights into XWELL’s financial health and detailed analysis, access the comprehensive Pro Research Report available on InvestingPro.
Marcum, in compliance with SEC regulations, has provided a letter to the SEC, filed as Exhibit 16.1 with this Form 8-K, confirming their agreement with the statements made by XWELL in the filing.
The information reported is based on a press release statement and SEC filings by XWELL Inc.
In other recent news, XWELL, Inc. has announced plans to expand into the medical spa sector by the end of 2025. This strategic move is supported by a $4 million private placement and aims to capitalize on the growing wellness and beauty market. The expansion will focus on urban areas with high demand for medspa services, such as Orlando, Austin, and Salt Lake City. XWELL plans to offer advanced treatments and AI-driven personalization in its medical spas, which will include facial aesthetics, skincare, injectables, and body sculpting. In a recent SEC filing, XWELL disclosed the approval of an amendment to its 2020 Equity Incentive Plan, increasing the number of shares available for grant by 2.5 million. Additionally, stockholders authorized the issuance of shares underlying Series G Preferred Stock and Warrants, complying with Nasdaq Listing Rule 5635(d). The company’s appointment of CBIZ CPAs P.C. as its independent registered public accounting firm for the fiscal year ending December 31, 2025, was also ratified. These developments are part of XWELL’s broader vision to establish a nationwide presence in the wellness industry.
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