Greetings, and welcome to XWELL's First Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded on May 15, 2023. I would now like to turn the conference over to Mr. Omar Haynes, Interim Chief Financial Officer for XWELL. Please go ahead, sir.

Good day, everyone. Welcome to our conference call to review XWELL's first quarter 2023 operating results. Joining me on today's call is Scott Milford, XWELL's Chief Executive Officer. We have posted our fiscal quarter earnings release on the Investor Relations section of our website located at www.xwell.com. A link to the webcast of today's conference call can also be found on our site. Before turning the call over to Scott for his prepared remarks, we need to advise you of the following. Comments made on today's call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current assumptions and opinions that involve a variety of known and unknown risks and uncertainties. Actual results may differ materially from those contained in or suggested by such forward-looking statements. Important factors that might cause such differences, including those set forth from time to time in our SEC filings, including our report on Form 10-K for the year ended December 31, 2022, as well as other current and periodic reports as we file with the SEC. With that said, I'd now like to turn the call over to Scott.

Thanks, Omar, and welcome everyone to our first quarter earnings call. We appreciate you joining us today. I'll begin by providing an update on recent business activity. Then I'll turn the call back over to Omar, who will review our financial results. In December, we outlined XWELL's strategic vision for 2023 and provided an operating update during our year-end earnings call in April. Quarter played out largely as expected. And while there is still much work to do, we continue to make steady progress. We're implementing strategies to deliver a leaner, more profitable spa business by driving retail revenue, expanding internationally, adding new customers and systematically reducing infrastructure costs. We're also diligently executing our bio-surveillance partnership with 9 stations in 7 of our busiest airports. And as we continue to grow those verticals organically, we continue to actively pursue high value-added acquisitions. Turning to XWELL's first quarter performance. While Q1 is a historically slower travel period, the company realized good operating momentum year-over-year in our retail operation. And as we communicated last month, most of our spas performed better during the first quarter compared to a year ago. Taking a closer look. First quarter revenue of our XpresSpa business increased 7.4% sequentially and 70.2% versus the same period prior year as a result of expanded hours and hiring efforts. Our international spas also continue to be an area of strong profitable performance, delivering net sales growth of over 8.9% compared to the same period prior year. And I'm pleased to note that our new spa locations in Istanbul Airport performed very well and delivered net sales of over $249,000 for the first quarter despite the devastating effects of the earthquake in Turkey. We're confident in our ability to drive retail revenue over the long-term, and contributing to that growth will…

Well, thanks, Scott. I appreciate the kind words and look forward to resuming my role in finance, while also ensuring a smooth transition for Valerie. I'm now going to provide a brief synopsis of our first quarter 2023 results. For the quarter, total revenue was approximately $7.1 million compared to $24 million in the prior year. This decline is primarily driven by a softening in demand at our XpresCheck testing facilities. First quarter revenue primarily consists of $4.7 million in revenue from XpresSpa locations as well as our Treat locations, $0.6 million in revenue from our HyperPointe segment and approximately $1.7 million in revenue from our bio-surveillance partnership. Turning to expenses. Our total cost of sales decreased to $6.5 million from $15 million in the prior year first quarter. The principal factor leading to this decline was the closure of underperforming XpresCheck location. As we've discussed on prior calls, the cost of testing kits and location-level labor costs remain the largest factors in our cost of sales. Switching to general and administrative. These expenses decreased to $6.1 million compared to $10.2 million for the year prior comparable period. The decrease was primarily a result of closing underperforming location and our rightsizing efforts to the overall cost structure. We reported an operating loss for the first quarter of $6.3 million compared to an operating loss of $2.5 million in the prior year first quarter. Our net loss attributable to common shareholders was $5.5 million compared to $4.3 million in the prior year same period. As Scott discussed, it is important to note that we continue to strategically invest in our long-term growth initiatives. Turning to our balance sheet. Our liquidity remains strong with cash and cash equivalents totaling $9.9 million and $25.2 million in marketable securities. Our net working capital was approximately $30.8 million. And again, we have no long-term debt. This concludes our financial review. I'll now turn the call back to Scott for some closing remarks.

Thank you, Omar. So as we progress towards our return to profitability, we are making meaningful strides executing against our strategic vision, and we continue to lay the groundwork to capitalize on new growth opportunities, drive efficiencies and pursue EBITDA accretive acquisitions. As CEO, my mandate is clear: to return the business to profitability, set a path forward towards growth and improved shareholder value. While that has not been an easy path to build, my management team and I are taking the steps necessary to ensure that mandate is achieved. I am excited for the future ahead and continue to believe 2023 will be a transformative year for XWELL. We look forward to updating you again next quarter. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.