Business Segment

9 Months Ended

Sep. 30, 2023

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. On October 19^th, 2023, the Company entered into an agreement to sell certain assets of FOXO Life thereby discontinuing, the Company’s business in life insurance due to the uneconomic nature of the business unit.

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.

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 nine months ended September 30, 2023 and 2022 by business segment:

	Three Months Ended September 30,										Nine Months Ended September 30,
	Revenue				Earnings						Revenue				Earnings
	2023		2022		2023			2022			2023		2022		2023			2022
FOXO Labs	$	6	$	7	$	(269	)	$	(500	)	$	20	$	71	$	(873	)	$	(1,952	)
FOXO Life		4		7		(139	)		(1,158	)		15		22		(1,029	)		(3,070	)
		10		14		(408	)		(1,658	)		35		93		(1,902	)		(5,022	)
Impairment (a)						-			-							(2,633	)		-
Stock issuances (b)						-			-							(3,521	)		-
Corporate and other (c)						(3,104	)		(38,944	)						(13,671	)		(70,660	)
Interest expense						(148	)		(424	)						(865	)		(1,250	)
Total	$	10	$	14	$	(3,660	)	$	(41,026	)	$	35	$	93	$	(22,592	)	$	(76,932	)

(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 equity-based compensation, including the consulting agreement and Cantor Commitment Fee, expense of ($1,312) and $3,866 as well as depreciation and amortization expense of $5 and $74 for the three months ended September 30, 2023 and 2022, respectively. Corporate and other includes equity-based compensation, including the consulting agreement and Cantor Commitment Fee, expense of $2,582 and $5,556 as well as depreciation and amortization expense of $1,251 and $159 for the nine months ended September 30, 2023 and 2022, respectively. The three months ended September 30, 2023 and 2022 included ($36) and $31,010 for the changes in fair value of convertible debentures, warrant liability, and forward purchase derivatives. The nine months ended September 30, 2023 and 2022 also included ($244) and $55,493 for the changes in fair value of convertible debentures, warrant liability, and forward purchase derivatives. See Notes 4, 6, and 9 for additional information.