Business Segment

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Business Segment [Abstract]

BUSINESS SEGMENT

Note 11  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 through performing epigenetic biomarker services and 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 stock-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 impairment any non-cash changes in fair value.

Summarized below is information about the Company’s operations for the three and six months ended June 30, 2023 and 2022 by business segment:

	Three Months Ended June 30,										Six Months Ended June 30,
	Revenue				Earnings						Revenue				Earnings
	2023		2022		2023			2022			2023		2022		2023			2022
FOXO Labs	$	7	$	32	$	(314	)	$	(948	)	$	14	$	64	$	(604	)	$	(1,452	)
FOXO Life		5		7		(243	)		(1,109	)		11		15		(890	)		(1,912	)
		12		39		(557	)		(2,057	)		25		79		(1,494	)		(3,364	)
Impairment (a)						(2,633	)		-							(2,633	)		-
Stock issuances (b)						(3,521	)		-							(3,521	)		-
Corporate and other (c)						(4,090	)		(20,978	)						(10,567	)		(31,716	)
Interest expense						(492	)		(504	)						(717	)		(826	)
Total	$	12	$	39	$	(11,293	)	$	(23,539	)	$	25	$	79	$	(18,932	)	$	(35,906	)

(a) See Note 4 for additional information on the digital insurance platform, underwriting API, and longevity API impairment.

(b) Stock issuances includes the 2022 Bridge Debenture Release and the PIK Note Amendment. See Notes 5 and 7 for additional information.

(c) Corporate and other includes stock-based compensation, including the Consulting Agreement, expense of $1,268 and depreciation and amortization expense of $247 for the three months ended June 30, 2023 with corresponding amounts of $3,894 and $1,176 for the six months ended June 30, 2023. For the three months ended June 30, 2022 corporate and other included stock-based compensation, depreciation, and changes in fair value of the convertible debentures of $1,459, $55, and $17,051 respectively. The corresponding amounts for the six months ended June 30, 2022 are $1,690, $86, and $24,483, respectively with stock-based compensation. Both the three and six months ended June 30, 2022 included $1,229 of stock-based compensation related to the Consulting Agreement. See Notes 4, 6, and 9 for additional information.

Note 14 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 through performing epigenetic biomarker services and 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 as well as technology or investment impairments.

Summarized below is information about the Company’s operations for the years ended December 31, 2022 and 2021 by business segment:

	Revenue				Earnings
	2022		2021		2022			2021
FOXO Labs	$	483	$	85	$	(2,769	)	$	(4,790	)
FOXO Life		28		35		(3,735	)		(2,381	)
		511		120		(6,504	)		(7,171	)
Corporate and other (a)						(87,311	)		(30,199	)
Interest expense						(1,440	)		(1,118	)
Total	$	511	$	120	$	(95,255	)	$	(38,488	)

(a) Corporate and other includes stock-based compensation, including the consulting agreement, Cantor Commitment Fee and vendor shares, expense of $17,708, depreciation and amortization expense of $1,487, change in fair value of convertible debentures and warrant liability expense of $26,104, $1,307 for impairment charge and $27,544 of other non-operating expenses for the year ended December 31, 2022. Additionally, the year ended December 31, 2022 included. For the year ended December 31, 2021 corporate and other included stock-based compensation, depreciation, changes in fair value of the convertible debentures and investment impairment of $131, $98, $21,703, and $400 respectively. See Notes 5, 6, 7, 9 and 11 for additional information.