Intangible Assets and Cloud Computing Arrangements

3 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Intangible Assets and Cloud Computing Arrangements [Abstract]

INTANGIBLE ASSETS AND CLOUD COMPUTING ARRANGEMENTS

Note 4 INTANGIBLE ASSETS AND CLOUD COMPUTING ARRANGEMENTS

The components of intangible assets and cloud computing arrangements as of March 31, 2023 and December 31, 2022 were as follows:

	March 31, 2023			December 31, 2022
Epigenetics pipeline	$	592		$	592
Underwriting API		840			840
Longevity API		717			717
Less: accumulated amortization		(286	)		(106	)
Intangible assets	$	1,863		$	2,043

	March 31, 2023			December  31, 2022
Digital insurance platform	$	2,966		$	2,966
Less: accumulated amortization		(1,483	)		(741	)
Cloud computing arrangements	$	1,483		$	2,225

Amortization of the Company’s intangible assets and cloud computing arrangements is recorded on a straight-line basis within selling, general and administrative expenses. The Company recognized amortization expense of $922 for the three months ended March 31, 2023.

Note 4 INTANGIBLE ASSETS AND CLOUD COMPUTING ARRANGEMENTS

The components of intangible assets as of December 31, 2022 and December 31, 2021 were as follows:

	December 31, 2022		December 31, 2021
Insurance license	$	-	$	63
Longevity pipeline		576		75
Underwriting API		770		53
Longevity API		697		-
Intangible assets	$	2,043	$	191

The acquisition of MICOA was accounted for as an asset acquisition and an indefinite-lived insurance license intangible asset was recognized for $63. The Company determined the asset was fully impaired upon entering a letter of intent to sell the FOXO Life Insurance Company as the costs to sell the insurance license was greater than the carrying value. The impairment charge has been recorded in the FOXO Life reportable segment and within selling, general and administrative expenses.

During the year ended December 31, 2021, the Company began developing internal use software related to the development of a longevity methylation pipeline for epigenetic data and underwriting application programming interface (“API”). During the year ended December 31, 2022, the Company began developing a longevity API to show the results derived from the longevity pipeline. The Company has capitalized costs incurred during the application development stage and has determined that these intangible assets have a finite life. Application development on these projects was completed in the fourth quarter of 2022. Amortization is recorded on a straight-line basis within selling, general and administrative expenses.

The components of cloud computing arrangements as of December 31, 2022 and December 31, 2021 were as follows:

	December 31, 2022		December 31, 2021
Digital insurance platform	$	2,225	$	1,980
Health study tool		-		765
Cloud computing arrangements	$	2,225	$	2,745

The Company entered into a cloud computing arrangement to develop a digital insurance platform and health study tool. Costs related to the application development phase are included in cloud computing arrangements. The Company finished the application development phase in the fourth quarter of 2022 and began amortizing the assets on a straight-line basis within selling, general and administrative expenses over the remaining term of the contract, or one year from completing the application development phase, as the Company is not reasonably assured of renewing the contract. The Company subsequently determined that it is doubtful the health study tool will be used for its intended purpose through the end of its amortizable period and has recognized an impairment charge of $1,307 as selling, general and administrative expenses and within corporate and other consistent with the Company’s technology costs.

The Company’s internal use software and cloud computing arrangements, including the longevity pipeline, underwriting API, longevity API, digital insurance platform and health study tool, include amounts capitalized for interest.