【second chance apartments in macon ga】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,second chance apartments in macon ga 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
-
Trump slams Fed's coronavirus response as 'slow,' renews calls for lower interest ratesWith EPS Growth And More, Anchorstone Holdings (HKG:1592) Is InterestingIs MYR Group (MYRG) a Great Value Stock Right Now?Avista (AVA) Misses Q3 Earnings and Revenue EstimatesCompanies slammed by coronavirus look to cut contributions to their employees' 401(k)sMemgen Announces Addition to Board of DirectorsRole of Wireless ICT in Healthcare Markets, 2020 Report - Focus on WICT and M2M Communications, Self-powered Wireless Sensors, Underlying Technologies, & WBAN/WMBAN Features and StandardizationWaste Management (WM) Beats Q3 Earnings & Revenue EstimatesROSEN, A RESPECTED AND LEADING FIRM, Encourages GSX Techedu Inc. Investors to Contact Firm Before Deadline in Class Action Seeking Recovery of Investor Losses – GSXFOREX-Dollar on back foot as recovery optimism persists
下一篇:Mitch Gould and Nutritional Products International Welcome Record-Shattering GDP for Third Quarter
- ·Should Value Investors Consider Dycom (DY) Stock Now?
- ·FOREX-Dollar on back foot as recovery optimism persists
- ·What to do if you're fired during coronavirus
- ·Global Compression Garments Market – Analysis By Product Type, By End User, By Region, By Country (2020 Edition): Market Insights, COVID-19 Impact, Competition and Forecast (2020-2025)
- ·Stericycle (SRCL) Tops Q3 Earnings and Revenue Estimates
- ·ZoomInfo IPO: What You Need To Know
- ·Global Care Capital Portfolio Company ViraxClear Secures Supply Contracts to Meet Demand for COVID-19 Antibody Test Kits in Europe and Singapore
- ·Survey Results: Investors Have No Idea Where The Market Is Headed Next
- ·A2Z Technologies Lists on Frankfurt Stock Exchange
- ·Bellerophon Provides Clinical Program Update and Reports Third Quarter 2020 Financial Results
- ·Canada job growth slows, impact of new lockdowns still to come
- ·Imagine Owning ImmunoPrecise Antibodies (CVE:IPA) And Wondering If The 44% Share Price Slide Is Justified
- ·A village of tiny Victorian homes offers a life-changing experience
- ·Does The Equitable Group Inc. (TSE:EQB) Share Price Fall With The Market?
- ·Can Guess (GES) Keep the Earnings Surprise Streak Alive?
- ·Sick of Roaming Fees? Now Your Carrier Is Hurting Too
- ·PharmaCielo Shareholder Alert: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In PharmaCielo Ltd. To Contact The Firm
- ·Canada job growth slows, impact of new lockdowns still to come
- ·Weekly CEO Buys Highlight
- ·What Is MDU Resources Group's (NYSE:MDU) P/E Ratio After Its Share Price Tanked?
- ·Top 5 Things to Know in the Market on Monday, June 1st
- ·Visa's (V) Program to Aid Asia Pacific Startups Thrive Globally
- ·Big cash holdings in Europe signal unease over stock market outlook
- ·Biden Holds onto a Winning Margin in the Polls after the 1st Debate
- ·Some Atlas (NYSE:ATCO) Shareholders Are Down 47%
- ·Drayage update: The Future Of EDI (With Video)
- ·German Court Issues a Dangerous Verdict for the ECB
- ·International Container Terminal Services, Inc. to Host Earnings Call
- ·Spirit Hub Announces The Spirit Hub Independent Distillery Preservation Fund, A Non-Profit 501(c)3 to Support Independent Distilleries Around the World
- ·Square Inc (SQ) President, CEO & Chairman Jack Dorsey Sold $20.9 million of Shares
- ·Is Microsoft Corporation (MSFT) A Good Stock To Buy?
- ·Russia's Ozon wants dual listing in Moscow and U.S. -sources
- ·U.S. Should Cut the Swiss Some Slack on Currency Manipulation
- ·Are Options Traders Betting on a Big Move in Penn National (PENN) Stock?
- ·Media Stock Earnings Roster This Week: DISCA, FOXA & More
- ·Berkshire Hathaway annual meeting 2020: 5 things to know