| Segment Information |
Note 12. Segment Information The CODM evaluates performance and allocates resources for all of its reportable segments based on segment revenues and operating income. The CODM uses segment revenues and segment operating income, to allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly basis using the segment revenues and segment operating income when making decisions about allocating capital and personnel to the segments. The CODM also uses the segment revenues and operating income to assess the performance for each segment by comparing the results and return on assets of each segment with one another and in the compensation of certain employees. Expenses that can be specifically identified with a segment have been included as deductions in determining operating income. The Company separately presents the costs associated with certain corporate functions as Corporate and Other, primarily consisting of unallocated operating expenses including costs that were not specific to a particular segment but are general to the group, expenses incurred for insurance, legal fees, public company administrative costs, and other similar corporate expenses. The table below presents information about reported segments for the three and six months ended June 30, 2026 and 2025: | | | | | | | | | | | | | | | | | | Three months ended June 30, 2026 | | | XpresSpa | | XpresTest | | Naples Wax | | Corporate and other | | Total | Revenue | | $ | 4,171 | | $ | 2,471 | | $ | 503 | | $ | — | | $ | 7,145 | Operating income (loss) | | $ | (42) | | $ | 1,536 | | $ | 379 | | $ | (3,977) | | $ | (2,104) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 2025 | | | XpresSpa | | XpresTest | | Naples Wax | | Corporate and other | | Total | Revenue | | $ | 4,886 | | $ | 2,156 | | $ | 647 | | $ | — | | $ | 7,689 | Operating income (loss) | | $ | 579 | | $ | 689 | | $ | (240) | | $ | (3,720) | | $ | (2,692) |
| | | | | | | | | | | | | | | | | | Six months ended June 30, 2026 | | | XpresSpa | | XpresTest | | Naples Wax | | Corporate and other | | Total | | | | | | | | | | | | | | | | | Revenue | | $ | 8,370 | | $ | 4,387 | | $ | 1,027 | | $ | — | | $ | 13,784 | Operating income (loss) | | $ | (633) | | $ | 2,603 | | $ | 427 | | $ | (9,915) | | $ | (7,518) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six months ended June 30, 2025 | | | XpresSpa | | XpresTest | | Naples Wax | | Corporate and other | | Total | Revenue | | $ | 9,180 | | $ | 4,333 | | $ | 1,199 | | $ | — | | $ | 14,712 | Operating income (loss) | | $ | 1,378 | | $ | 1,308 | | $ | (663) | | $ | (7,873) | | $ | (5,850) |
A reconciliation of total segment revenues to total unaudited condensed consolidated revenue and of total segment operating (loss) income to total consolidated (loss) income, for the three and six months ended June 30, 2026 and 2025, is as follows: | | | | | | | | | | | | | | | | | | Three months ended June 30, 2026 | | | XpresSpa | | XpresTest | | Naples Wax | | Corporate and other | | Total | Revenue from external customers | | $ | 4,171 | | $ | 2,471 | | $ | 503 | | $ | — | | $ | 7,145 | Less: Significant Expenses (1): | | | | | | | | | | | | | | | | Cost of Goods Sold - Labor | | | 2,102 | | | 695 | | | 240 | | | — | | | 3,037 | Cost of Goods Sold - Products & Services | | | 256 | | | — | | | 9 | | | — | | | 265 | Occupancy Cost | | | 520 | | | 17 | | | 69 | | | — | | | 606 | Other Cost of Revenue | | | 168 | | | 40 | | | 81 | | | — | | | 289 | Depreciation and amortization | | | 142 | | | — | | | 6 | | | 15 | | | 163 | Loss on disposal of assets, net | | | 204 | | | — | | | 35 | | | — | | | 239 | Less: Other Segment Expenses (2): | | | | | | | | | | | | | | | | Other segment operating expenses | | | 821 | | | 183 | | | (316) | | | 3,962 | | | 4,650 | Segment operating income (loss) | | $ | (42) | | $ | 1,536 | | $ | 379 | | $ | (3,977) | | $ | (2,104) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 2025 | | | XpresSpa | | XpresTest | | Naples Wax | | Corporate and other | | Total | Revenue from external customers | | $ | 4,886 | | $ | 2,156 | | $ | 647 | | $ | — | | $ | 7,689 | Less: Significant Expenses (1): | | | | | | | | | | | | | | | | Cost of Goods Sold - Labor | | | 2,388 | | | 1,180 | | | 344 | | | — | | | 3,912 | Cost of Goods Sold - Products & Services | | | 353 | | | — | | | 10 | | | — | | | 363 | Occupancy Cost | | | 1,057 | | | 21 | | | 160 | | | — | | | 1,238 | Other Cost of Revenue | | | 224 | | | 41 | | | 136 | | | — | | | 401 | Depreciation and amortization | | | 110 | | | 2 | | | 59 | | | 16 | | | 187 | Less: Other Segment Expenses (2): | | | | | | | | | | | | | | | | Other segment operating expenses | | | 175 | | | 223 | | | 178 | | | 3,704 | | | 4,280 | Segment operating income (loss) | | $ | 579 | | $ | 689 | | $ | (240) | | $ | (3,720) | | $ | (2,692) |
| | | | | | | | | | | | | | | | | | Six months ended June 30, 2026 | | | XpresSpa | | XpresTest | | Naples Wax | | Corporate and other | | Total | Revenue from external customers | | $ | 8,370 | | $ | 4,387 | | $ | 1,027 | | $ | — | | $ | 13,784 | Less: Significant Expenses (1): | | | | | | | | | | | | | | | | Cost of Goods Sold - Labor | | | 4,124 | | | 1,323 | | | 564 | | | — | | | 6,011 | Cost of Goods Sold - Products & Services | | | 519 | | | — | | | 14 | | | — | | | 533 | Occupancy Cost | | | 1,198 | | | 31 | | | 138 | | | — | | | 1,367 | Other Cost of Revenue | | | 348 | | | 74 | | | 149 | | | — | | | 571 | Depreciation and amortization | | | 292 | | | — | | | 12 | | | 31 | | | 335 | Loss on disposal of assets, net | | | 204 | | | — | | | 35 | | | — | | | 239 | Less: Other Segment Expenses (2): | | | | | | | | | | | | | | | | Other segment operating expenses | | | 2,318 | | | 356 | | | (312) | | | 9,884 | | | 12,246 | Segment operating income (loss) | | $ | (633) | | $ | 2,603 | | $ | 427 | | $ | (9,915) | | $ | (7,518) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six months ended June 30, 2025 | | | XpresSpa | | XpresTest | | Naples Wax | | Corporate and other | | Total | Revenue from external customers | | $ | 9,180 | | $ | 4,333 | | $ | 1,199 | | $ | — | | $ | 14,712 | Less: Significant Expenses (1): | | | | | | | | | | | | | | | | Cost of Goods Sold - Labor | | | 4,743 | | | 2,470 | | | 666 | | | — | | | 7,879 | Cost of Goods Sold - Products & Services | | | 600 | | | — | | | 20 | | | — | | | 620 | Occupancy Cost | | | 2,033 | | | 27 | | | 312 | | | — | | | 2,372 | Other Cost of Revenue | | | 440 | | | 104 | | | 203 | | | — | | | 747 | Depreciation and amortization | | | 205 | | | 4 | | | 114 | | | 30 | | | 353 | Less: Other Segment Expenses (2): | | | | | | | | | | | | | | | | Other segment operating expenses | | | (219) | | | 420 | | | 547 | | | 7,843 | | | 8,591 | Segment operating income (loss) | | $ | 1,378 | | $ | 1,308 | | $ | (663) | | $ | (7,873) | | $ | (5,850) |
(1) | The significant expense amounts align with the expenses that the CODM is regularly provided with to assess performance and allocate resources. |
(2)For all segments, SGA consists of the following:Salaries & Benefits, Rent & Utilities, Office Supplies & Shipping, Travel & Entertainment, IT & Telecom, Repairs & Maintenance, Accounting, Legal, Franchise/Property Tax, Management/DBE Fees, Advertising & Marketing, Insurance. Other Significant Items | | | | | | | | | | | | | | | | | | Three months ended June 30, 2026 | | | XpresSpa | | XpresTest | | Naples Wax | | Corporate and other | | Total | Stock-based compensation | | $ | — | | $ | — | | $ | — | | $ | 98 | | $ | 98 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 2025 | | | XpresSpa | | XpresTest | | Naples Wax | | Corporate and other | | Total | Stock-based compensation | | $ | 39 | | $ | — | | $ | — | | $ | 560 | | $ | 599 |
| | | | | | | | | | | | | | | | | | Six months ended June 30, 2026 | | | XpresSpa | | XpresTest | | Naples Wax | | Corporate and other | | Total | Stock-based compensation | | $ | - | | $ | - | | $ | — | | $ | 984 | | $ | 984 | | | | | | | | | | | | | | | | | | | Six months ended June 30, 2025 | | | XpresSpa | | XpresTest | | Naples Wax | | Corporate and other | | Total | Stock based compensation | | $ | 75 | | $ | 3 | | $ | — | | $ | 604 | | $ | 682 |
| | | | | | | | | | | | | | | | | | June 30, 2026 | | | XpresSpa | | XpresTest | | Naples Wax | | Corporate and other | | Total | | | | | | | | | | | | | | | | | Capital expenditures | | $ | 129 | | $ | 3 | | $ | - | | $ | 8 | | $ | 140 | Assets | | $ | 13,906 | | $ | 3,271 | | $ | 1,262 | | $ | 2,087 | | $ | 20,526 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | XpresSpa | | XpresTest | | Naples Wax | | Corporate and other | | Total | | | | | | | | | | | | | | | | | Capital expenditures | | $ | 1,780 | | $ | — | | $ | 932 | | $ | 147 | | $ | 2,859 | Assets | | $ | 6,884 | | $ | 1,291 | | $ | 1,013 | | $ | 2,029 | | $ | 11,217 |
The Company currently operates in two geographical regions: United States and all other countries, which include Netherlands, Turkey and United Arab Emirates. The following table represents the geographical revenue, and total long-lived asset information. There were no concentrations of geographical revenue and long-lived assets related to any single country outside of the United States that were material to the Company’s unaudited condensed consolidated financial statements. Long-lived assets include property and equipment and right of use lease assets. | | | | | | | | | Six months ended | | | June 30, | | | 2026 | | 2025 | Revenue | | | | | | | United States | | $ | 11,294 | | $ | 11,902 | All other countries | | | 2,490 | | | 2,810 | Total revenue | | $ | 13,784 | | $ | 14,712 |
| | | | | | | | | Three months ended | | | June 30, | | | 2026 | | 2025 | Revenue | | | | | | | United States | | $ | 5,937 | | $ | 6,197 | All other countries | | | 1,208 | | | 1,492 | Total revenue | | $ | 7,145 | | $ | 7,689 |
| | | | | | | Long-lived assets | | June 30, 2026 | | December 31, 2025 | United States | | $ | 2,271 | | $ | 2,496 | All other countries | | | 171 | | | 208 | Total long-lived assets | | $ | 2,442 | | $ | 2,704 |
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