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Fair Value Measurements
12 Months Ended
Dec. 31, 2023
Fair Value Measurements [Abstract]  
FAIR VALUE MEASUREMENTS

Note 11 FAIR VALUE MEASUREMENTS

 

The following table presents information about the Company’s assets and liabilities that are measured on a recurring basis as of December 31, 2023 and 2022 and indicates the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value.

 

   Fair Value Measurements Using Inputs Considered as: 
December 31, 2023  Fair Value   Level 1   Level 2   Level 3 
Liabilities:                
Warrant liability  $8   $8   $
-
   $
-
 
Total liabilities  $8   $8   $
-
   $
-
 

 

   Fair Value Measurements Using Inputs Considered as: 
December 31, 2022  Fair Value   Level 1   Level 2   Level 3 
Liabilities:                
Warrant liability  $311   $302   $9   $
-
 
Total liabilities  $311   $302   $9   $
-
 

 

Warrant Liability

 

The Public Warrants and Private Placement Warrants are accounted for as liabilities in accordance with ASC 815-40 and are presented within warrant liabilities on the consolidated balance sheets. The warrant liabilities were measured at fair value on the date of the Closing and on a recurring basis, with any changes in the fair value presented as change in fair value of warrant liabilities in the consolidated statements of operations.

 

Measurement at Closing and Subsequent Measurement

 

The Company established the fair values for the Public and Private Placement Warrants on the date of the Closing, and subsequent fair values as of each reporting period. The measurement of the Public Warrants is classified as Level 1 due to the use of an observable market quote in an active market under ticker FOXO-WT. As reflected in the tables above, the fair value of the Public Warrants was $8 and $302 at December 31, 2023 and 2022, respectively.

 

As the transfer of the Private Placement Warrants to anyone outside of a small group of individuals who are permitted transferees would result in the Private Placement Warrants having substantially the same terms as the Public Warrants, the Company determined the fair value of each Private Placement Warrant is equivalent to that of each Public Warrant, with an insignificant adjustment for short-term marketability restrictions. As such, the Private Placement Warrants are classified as Level 2 at December 31, 2023 and 2022. As reflected in the tables above, the fair value of the Private Placement Warrants was nil and $9 for the years ended December 31, 2023 and 2022, respectively.

 

The Company recorded income of $303 and $2,076, respectively, during the years ended December 31, 2023 and 2022 for the change in fair values of the warrant liabilities.

 

Bridge Debentures

 

The Company elected the fair value option for both the 2021 and 2022 Bridge Debentures that converted to shares of FOXO Class A Common Stock as part of the Business Combination. Changes in the Company’s prior fair value measurements were recorded as a non-cash change in fair value of convertible debentures of $28,180 in the consolidated statement of operations for the year ended December 31, 2022.