【why does my newborn farts smell so bad】Spa chain secured $5.6M in coronavirus relief for small businesses despite losses last year
Get all the latest news on coronavirus and more delivered daily to your inbox.
Sign up here
.
An airport spa chain secured a
taxpayer-funded
loan through a
small business
rescue fund,why does my newborn farts smell so bad weeks after it told investors that an independent auditor raised “substantial doubt” about its ability to continue operating amid a series of operating losses.
XpresSpa, which operates spas in
25
airports, including two overseas, received a $5.6 million loan through the Paycheck Protection Program, according to a Securities and Exchange Commission
filing
from May 7. The report came three days after the company
reported
severing ties with CohnReznick, the accounting firm previously critical of XpresSpa’s business.
It’s unclear why XpresSpa fired CohnReznick. At the end of April, XpresSpa said in a
regulatory filing
that the auditor had warned its operation was at risk.
PRIVATE JET COMPANY TAPPED VIRUS RELIEF FUNDS, SHARED SUBSIDY BENEFITS WITH WEALTHY CLIENTS: REPORT
“The report of our independent registered public accounting firm on our financial statements for the years ended December 31, 2019 and 2018 included an explanatory paragraph indicating that there is substantial doubt about our ability to continue as a going concern,” it said. “Our auditors’ doubts are based on our recurring losses from operations and working-capital deficiency.”
XpresSpa did not respond to a request for comment. The company’s CEO, Doug Satzman, told the New York Post, which
first
reported the news, that XpresSpa dismissed CohnReznick because it had decided to switch to a less expensive accounting firm -- not because of any disputes.
Before the virus gained a foothold in the U.S., prompting a broad swath of the nation’s economy to shut down, XpresSpa had reported significant losses: Last year, the company suffered a
$20.5 million
net loss, ending the year with just $2.1 million in cash on hand.
DEMAND FOR SMALL BUSINESS LOANS FADES, HERE'S WHY
“Similar to many businesses in the travel sector, our business has been materially adversely impacted by the recent COVID-19 outbreak and associated restrictions on travel that have been implemented,” the company said in the filing.
“While we have aggressively reduced operating and overhead expenses, and while we continue to focus on our overall profitability, we have continued to generate negative cash flows from operations, and we expect to incur net losses for the foreseeable future, especially considering the negative impact COVID-19 will have on our liquidity and financial position,” it added.
Congress created the $610 billion program to keep small businesses afloat during the coronavirus pandemic. The money can be used for payroll and other expenses, like insurance premiums, mortgages, rent or utilities through June 30. As long as 75 percent of the money goes toward keeping workers employed and maintaining salary levels, the loans, which are guaranteed by the federal government, will be fully forgiven.
Story continues
HOUSE VOTES TO GIVE PPP LOAN RECIPIENTS MORE FLEXIBILITY
During the program's first round of funding -- which was exhausted in 13 days -- a slew of large, public companies received loans, igniting a firestorm of criticism. An
Associated Press report
found that companies that had warned investors months earlier that their ability to remain in business was questionable also tapped the loan program.
As of last Saturday, more than 4.42 million loans worth close to $511 billion had been distributed through the program.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Related Articles
Who pays Social Security taxes?
Black businesses hit hard by COVID-19 fight to stay afloat
Florida Keys reopen to visitors as Miami-area beaches closed
View comments
-
Why Semtech (SMTC) Stock Might be a Great PickHow Should Investors React To Colfax Corporation's (NYSE:CFX) CEO Pay?The scariest phrase for investors right now: 'Since 2016'China's manufacturing activity shrinks again in February but at slower paceSHAREHOLDER ACTION NOTICE: The Schall Law Firm Announces it is Investigating Claims Against Canaan Inc. and Encourages Investors with Losses to Contact the FirmBRIEF-Zhende Medical To Buy Stake In Suzhou Medsport Products For 104.2 Mln YuanAxiom Prepaid Holdings Caps Off Banner Year with a Prestigious Accolade for Its CEOWolf Warriors in the West: how China's diplomats are taking to TwitterS.Korea's Moon tells Trump he would accept invitation to G7 summitEminem Purchases Bored Ape Yacht Club NFT for $462K
下一篇:Buying a House? 4 Things to Take Off Your Must-Have List Now
- ·U.S. telehealth companies brace for demand spike as coronavirus spread accelerates
- ·BRIEF-Hytera Communications' Consortium Wins Communication Equipment Contract In Philippines
- ·Merkel: We'll use 6-month withdrawal period to talk if U.S. quits INF treaty
- ·Fidelity Cryptocurrency Platform Enters ‘Final Testing’ Stages
- ·Asian Stocks Plummet Amid Oil Price War
- ·CSSE: CSSE Buys Remaining 25.1% of A+ at a $15 Million Valuation to Save $5 Million Per Year
- ·Investors Are Undervaluing Fellow Finance Oyj (HEL:FELLOW) By 46.67%
- ·The scariest phrase for investors right now: 'Since 2016'
- ·Skyworks Solutions (SWKS) Matches Q2 Earnings Estimates
- ·Is Best Buy Co., Inc.’s (NYSE:BBY) ROE Of 36% Impressive?
- ·Is BankUnited, Inc.'s (NYSE:BKU) High P/E Ratio A Problem For Investors?
- ·Why Kokuyo Camlin Limited’s (NSE:KOKUYOCMLN) Return On Capital Employed Might Be A Concern
- ·Spotify Rolls Out Standalone Streaming On Apple Watch App: TechCrunch
- ·Could West Pharmaceutical Services, Inc.’s (NYSE:WST) Investor Composition Influence The Stock Price?
- ·Addiction Treatment Specialist Discusses Overcoming Obstacles in Addiction Recovery
- ·Gap Inc (GPS) Q4 2018 Earnings Conference Call Transcript
- ·Are You Looking for a Top Momentum Pick? Why Vapotherm (VAPO) is a Great Choice
- ·Securities Class Action Has Been Filed Against YRC Worldwide Inc. (YRCW); Block & Leviton LLP Encourages Shareholders to Contact the Firm
- ·Asian stocks skid after weak China factory readings
- ·Boasting A 18% Return On Equity, Is Hormel Foods Corporation (NYSE:HRL) A Top Quality Stock?
- ·Delivery Hero takes steps to support struggling restaurants
- ·BRIEF-Huawei Culture's Shareholder To Sell 5 Pct Stake In The Company For 221.9 Mln Yuan
- ·Trump: Stock Market Downturn Just a ‘Glitch’
- ·Should You Be Impressed By Class Limited's (ASX:CL1) ROE?
- ·Loop Industries Reports Fourth Quarter Consolidated Financial Results of Fiscal 2020 and Provides Updates on Business Developments
- ·North Korea leader Kim to leave Hanoi around noon on Saturday - source
- ·Paycom Software, Inc. to Host Earnings Call
- ·BRIEF-Inno-Tech Says Wang Yu Resigned As Chief Executive Officer
- ·LafargeHolcim completes sale of $1.75 billion Indonesian unit
- ·Golden Globes’ Most Under-Dressed Stars, From Jason Sudeikis to Jodie Foster
- ·Fortuna to Release Third Quarter 2020 Financial Results on November 12, 2020; Conference Call at 12 p.m. Eastern Time on November 13, 2020
- ·Do Directors Own Zenith Birla (India) Limited (NSE:ZENITHBIR) Shares?
- ·Emmy Awards 2012 live blog!
- ·Acclaris to Host Webinar on How to Engage and Support a Millennial Workforce
- ·Coronavirus slows, but doesn't stop real estate lending: Report
- ·Rating Action on Genworth's Subsidiary