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XWELL, Inc. (XWEL): material weakness open at least 2,128 days

By Russell Tomoum, Ctrl Worx™. Built from its own SEC filings. How the Clock works.

XWELL, Inc. reported ineffective internal control over financial reporting because of a material weakness in 9 filings since Mar 31, 2021. It stated one or more material weaknesses in 14 more SEC filings that gave no conclusion on whether that control is effective. The latest was its 10-Q for the period ended Jun 30, 2026.

Checked against SEC EDGAR: Oct 29, 2026 · Entry #10655

Causes the company named

Complex or non-routine accounting · 15Financial close and reporting · 14Accounting expertise and resources · 14ITGC: general · 13Revenue recognition · 10Entity-level and governance · 9Other · 2IPE and key reports · 1Not described · 1

What the latest filing says

A “material weakness” is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements will not be prevented or detected on a timely basis. Based upon that evaluation, our management concluded that our disclosure controls and procedures were not effective as of June 30, 2026, due to the following material weaknesses: 1) The Company did not properly design, implement, and consistently operate effective controls over the completeness and accuracy of its accounting for leases under ASC 842. 2) The Company did not properly design or maintain effective entity level monitoring controls over the financial close and reporting process. 3) The Company did not design or maintain effective controls over its service organizations and IT vendors. More specifically, the Company did not have controls in place to review the applicable complementary user entity controls described in the service organizations’ reports for their poten [...]

From the controls section of the 10-Q filed Aug 14, 2026. Read the full filing on SEC EDGAR.

Company response: XWELL, Inc. can send a statement or a link to its remediation update to russell@ctrlworx.com. We post it here, unedited and dated.

Filings

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Based on public SEC filings. Causes are grouped into standard categories by Ctrl Worx. The filings are the authority. Ctrl Worx is not affiliated with XWELL, Inc. or the SEC. Not investment advice. Why you can rely on the Watch List.