The airport’s spa chain warned investors of ড 5.6 million in cash last week after warning investors that its independent auditors had raised “considerable doubts” about its ability to carry out operations amid massive losses, The Post learned.
New York-based Expresspa told investors it had obtained a pay-protection policy in a May regulatory filing – just days after the board severed ties with an auditor critical of its business.
Expresspa did not say why Kohenrajnik was fired, but on April 20 the agency revealed that auditors had issued a warning about the company’s financial condition before the epidemic forced it to shut down its US operations.
“The report of our Independent Registered Public Accounting Firm includes an explanatory paragraph on our financial statements for the years ending December 31, 2019 and 2018, indicating that there is considerable doubt about our ability to continue as an ongoing concern,” the agency said in a April regulatory filing.
“Our auditors’ suspicions are based on our recurring losses due to a lack of operations and working capital.”
Expresspa operates 51 stores across 25 airports that provide passengers with chair massages and money-pads. It sells head pillows and eye masks, according to its website.
The company said in its annual report that “Expresspa was designed to deal with the stress and lazy time spent at the airport, so that passengers can spend this time productively focusing on comfort and personal care and well-being.”
CEO Doug Satzmann says Expresspa has severed ties with Kohenrenznik because he decided to switch to a less expensive accounting firm, not because of any disagreement. He added that the coronavirus epidemic threatened him just as the agency began to turn around, noting that comparable store sales rose 2.9 percent last year after falling to 3.2 percent in 2018.
“There’s a lot of cleanup work to do when you turn around,” Satzman told The Post. “… With the opportunity of PPP loan, it has given us a tool to use for our employees who help us stay loyal to them and are ready to return full time when airports are busy.”
Still, the coronavirus condemned retailers across the country with orders from coast to coast homes, saying the express was red.
Last year, Expresspa faced a লোক 20.5 million net loss as its liabilities reduced its assets to about .2 12.2 million. As of December 31, the company had only ন 2.1 million in cash and cash equivalents, and current assets of 3.9 million. In contrast, its current liabilities total $ 16.2 million, which includes account payable and accrued expenses, it said.
“We would expect to take net losses for the foreseeable future, especially considering that COVID-19 will have a negative impact on our liquidity and financial condition,” the company said in the filing.
Despite the hassle of predicting the Expresspa virus, it is the latest in a series of taxpayer-backed receipts, which have slammed retailers with orders from coast to coast. A report in the Associated Press states that some companies received large loans after investors did not have products to sell or risked running out of cash.
The crisis of the government’s $ 659 billion effort to weather small businesses has also been criticized for helping companies gain access to the public market at the expense of Main Street operations.
“It’s an intestinal punch for thousands of shutter mom-and-pop small businesses that have never been promised help,” neutral corruption watchdog spokesman Jeremy Frank told Ted. Accountable.US.
Expresspa has spent outside 9.4 million outside in recent months, with a record 9. 9.9 million from four separate stock offers in March and April.
In the most recent offer, on April 6, the firm sold $ 1 million worth of shares to Liechtenstein-based hedge fund Alpha Capital Ansalt, which came under regulators ’crosshairs two years ago.
Alpha, which did not respond to a request for comment, said Alpha was among about two dozen defendants accused by the Securities and Exchange Commission of participating in a 27 million penny-stock fraud led by capitalist Barry Hannig.
Alpha complained that he bought shares at a discount from a company and sold them after raising Honey’s share price. The fund had to pay 90 8,908,000, according to a ruling issued last year, although it did not admit to any wrongdoing.
Expresspa is now trying to turn some of the 4 US locations in the United States into COVID-19 testing centers for airport staff, which has helped boost share prices. For example, on May 22 the stock rose nearly percent0 percent after it signed an agreement with JFK International Air Terminal to provide diagnostic COVID-19 testing facilities.
Shares of Expresspa closed at 83 cents on Friday and Penny stock traded down as low as 12 cents in March.