Business Segment

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

BUSINESS SEGMENT

Note 12 BUSINESS SEGMENT

The Company manages and classifies its business into two reportable business segments:

● FOXO Labs is commercializing proprietary epigenetic biomarker technology to be used for underwriting risk classification in the global life insurance industry. The Company’s innovative biomarker technology enables the adoption of new saliva-based health and wellness biomarker solutions for underwriting and risk assessment. The Company’s research demonstrates that epigenetic biomarkers, collected from saliva, provide measures of individual health and wellness for the factors used in life insurance underwriting traditionally obtained through blood and urine specimens.

● FOXO Life is redefining the relationship between consumers and insurer by combining life insurance with a dynamic molecular health and wellness platform. FOXO Life seeks to transform the value proposition of the life insurance carrier from a provider of mortality risk protection products to a partner supporting its customers’ healthy longevity. FOXO Life’s multi-omic health and wellness platform will provide life insurance consumers with valuable information and insights about their individual health and wellness to support longevity.

FOXO Labs generates revenue by collecting epigenetic services royalties. FOXO Life generates revenue from the sale of life insurance products. Asset information is not used by the Chief Operating Decision Maker (“CODM”) or included in the information provided to the CODM to make decisions and allocate resources.

The primary income measure used for assessing segment performance and making operating decisions is earnings before interest, income taxes, depreciation, amortization, and equity-based compensation (“Segment Earnings”). The segment measure of profitability also excludes corporate and other costs, including management, IT, overhead costs and certain other non-cash charges or benefits, such as any non-cash changes in fair value.

Summarized below is information about the Company’s operations for the three and nine months ended September 30, 2022 and September 30, 2021 by business segment:

	Three Months Ended September 30,										Nine Months Ended September 30,
	Revenue				Earnings						Revenue				Earnings
	2022		2021		2022			2021			2022		2021		2022			2021
FOXO Labs	$	7	$	23	$	(499	)	$	(1,632	)	$	71	$	67	$	(1,952	)	$	(4,268	)
FOXO Life		7		8		(1,157	)		(831	)		22		26		(3,070	)		(1,667	)
		14		31		(1,656	)		(2,463	)		93		93		(5,022	)		(5,935	)
Corporate and other (a)						(38,946	)		(24,465	)						(70,660	)		(30,854	)
Interest expense						(424	)		(313	)						(1,250	)		(825	)
Total	$	14	$	31	$	(41,026	)	$	(27,241	)	$	93	$	93	$	(76,932	)	$	(37,614	)

(a) Corporate and other includes equity-based compensation, including the consulting agreement and Cantor Commitment Fee, expense of $3,866 and $42 as well as depreciation expense of $74 and $25 for the three months ended September 30, 2022 and 2021, respectively. Corporate and other includes equity-based compensation, including the consulting agreement and Cantor Commitment Fee, expense of $5,556 and $8 as well as depreciation expense of $159 and $71 for the nine months ended September 30, 2022 and 2021, respectively. The three months ended September 30, 2022 and 2021 included $31,010 and $22,571 for the changes in fair value of convertible debentures, warrant liability, and forward purchase derivatives. The nine months ended September 30, 2022 and 2021 also included $55,493 and $24,890 for the changes in fair value of convertible debentures, warrant liability, and forward purchase derivatives. See Notes 5, 6, 7, 9 and 11 for additional information.