WellQuest Reports Revenue Increase, Quarterly Loss

Medical spa visits down as clients forego elective treatments

— A medical spa and wellness clinic reported more third quarter revenue for medical care, though spa revenue decreased.

Bentonville-based WellQuest Medical and Wellness Corp. reported $944,123 in third quarter revenue, an increase from $775,991 in revenue the same quarter last year.

Medical client visits increased 33 percent, from 6,495 in last year’s third quarter to 8,655 for the quarter ended Sept. 30, according to a Friday filing with the U.S. Securities and Exchange Commission.

WellQuest reported $151,723 in third-quarter spa revenue, down 14 percent from $176,318 in the third quarter last year.

“We attribute the decrease in medical spa revenue to general economic conditions as clients choose to forgo elective services,” including injectable fillers like Botox and Juvederm, according to the quarterly report.

New York City-based Coyle Hospitality Group surveyed 916 customers in February and March about their spa spending plans. The majority, 63 percent, said they planned to spend the same on spa visits this year compared with 2008.

The survey indicated 21 percent planned to spend more, while 16 percent planned to spend less on spa visits and services.

A September Coyle survey indicated most spa goers are wealthy females, with 25 percent whose average household income is more than $125,000 per year. About 21 percent have incomes between $95,001 and $125,000. Coyle, founded in 1996, provides mystery shopping and market research for spas, hotels, restaurants and others.

WellQuest reduced medical spa expenses by about $63,983 in the third quarter, by reducing some full-time staff to part-time hours and decreasing administrative staff.

WellQuest reported $2.8 million in revenue for the nine months ended Sept. 30, an increase from the $2.4 million in revenue for the same period last year.

The company reported a loss of $197,675 for the nine months ended Sept. 30, a reduction from the loss of $636,103 for the same nine months a year ago.

WellQuest does not have any credit, bank financing or other sources of cash, the filing stated. WellQuest anticipates selling more stock or borrowing money from private lenders.

WellQuest opened a medical center in Bentonville in September 2005 and incorporated in Oklahoma in 2008. Its stock is traded on an over-the-counter bulletin board.

Shares of WellQuest (OTC BB: WEQL.OB) traded Tuesday at 6 cents, unchanged from its last trade Thursday. The share price ranged from a high of 65 cents to a low of 1 cent since trading began in April.

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