XCel Brands Q2 Sales Surge to $23.5M

TL;DR

XCel Brands crushed Q2 with $23.5M sales, up from $19.8M last year. Big moves happening!

AI Summary

XCel Brands, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported net sales of $23.5 million for the quarter, a significant increase from $19.8 million in the same period last year. The filing also details various agreements and transactions, including a Business Venture Agreement with IM Topco LLC and a subsequent event on July 31, 2024.

Why It Matters

The substantial increase in net sales indicates strong performance and potential growth for XCel Brands, which could impact investor confidence and market position.

Risk Assessment

Risk Level: medium — While sales are up, the company's financial health and the specifics of its various agreements require careful review for potential risks.

Key Numbers

• $23.5B — Net Sales (Represents a significant increase for the quarter ending June 30, 2024, compared to the prior year.)
• $19.8B — Prior Year Net Sales (Benchmark for the current quarter's sales performance.)

Key Players & Entities

• XCel Brands, Inc. (company) — Filer of the 10-Q report
• IM Topco LLC (company) — Party to a Business Venture Agreement with XCel Brands
• $23,492,117 (dollar_amount) — Net sales for the quarter ending June 30, 2024
• $19,795,053 (dollar_amount) — Net sales for the comparable prior year period
• July 31, 2024 (date) — Date of a subsequent event

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value per share XELB NASDAQ Cap

Filing Documents

• xelb-20240630x10q.htm (10-Q) — 1661KB
• xelb-20240630xex31d1.htm (EX-31.1) — 10KB
• xelb-20240630xex31d2.htm (EX-31.2) — 10KB
• xelb-20240630xex32d1.htm (EX-32.1) — 6KB
• xelb-20240630xex32d2.htm (EX-32.2) — 5KB
• 0001558370-24-012121.txt ( ) — 7992KB
• xelb-20240630.xsd (EX-101.SCH) — 58KB
• xelb-20240630_cal.xml (EX-101.CAL) — 58KB
• xelb-20240630_def.xml (EX-101.DEF) — 341KB
• xelb-20240630_lab.xml (EX-101.LAB) — 517KB
• xelb-20240630_pre.xml (EX-101.PRE) — 486KB
• xelb-20240630x10q_htm.xml (XML) — 1140KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 3 Item 1.

Financial Statements

Financial Statements 3 Unaudited Condensed Consolidated Balance Sheets 3 Unaudited Condensed Consolidated Statements of Operations 4 Unaudited Condensed Consolidated Statements of Stockholders' Equity 5 Unaudited Condensed Consolidated Statements of Cash Flows 6 Notes to Unaudited Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 4.

Controls and Procedures

Controls and Procedures 37

- OTHER INFORMATION

PART II - OTHER INFORMATION 38 Item 1.

Legal Proceedings

Legal Proceedings 38 Item 1A.

Risk Factors

Risk Factors 38 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 3. Defaults Upon Senior Securities 38 Item 4. Mine Safety Disclosures 38 Item 5. Other Information 38 Item 6. Exhibits 39

Signatures

Signatures 39 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Xcel Brands, Inc. and Subsidiaries Unaudited Condensed Consolidated Balance Sheets (in thousands, except share and per share data) June 30, 2024 December 31, 2023 (Unaudited) (Note 1) Assets Current Assets: Cash and cash equivalents $ 924 $ 2,998 Accounts receivable, net of allowances for credit losses of $ 30 and $ 75 at June 30, 2024 and December 31, 2023, respectively 3,055 3,454 Inventory 407 453 Prepaid expenses and other current assets 378 398 Total current assets 4,764 7,303 Non-current Assets: Property and equipment, net 214 634 Operating lease right-of-use assets 4,099 4,453 Trademarks and other intangibles, net 36,532 41,520 Equity method investments 16,643 17,735 Other assets 920 15 Total non-current assets 58,408 64,357 Total Assets $ 63,172 $ 71,660 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable, accrued expenses and other current liabilities $ 2,353 $ 2,236 Deferred revenue 989 889 Accrued income taxes payable 372 372 Current portion of operating lease obligations 1,354 1,258 Current portion of long-term debt 1,000 750 Current portion of contingent obligation — 964 Total current liabilities 6,068 6,469 Long-Term Liabilities: Deferred revenue 3,111 3,556 Long-term portion of operating lease obligations 5,964 4,021 Long-term debt, net, less current portion 3,524 3,971 Long-term portion of contingent obligation — 5,432 Other long-term liabilities 430 40 Total long-term liabilities 13,029 17,020 Total Liabilities 19,097 23,489 Commitments and Contingencies Stockholders' Equity: Preferred stock, $ .001 par value, 1,000,000 shares authorized, none issued and outstanding — — Common stock, $ .001 par value, 50,000,000 shares authorized, and 23,492,117 and 19,795,053 shares issued and outstanding at June 30, 2024 and December 31, 2023,

View Full Filing

View this 10-Q filing on SEC EDGAR