BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

BUSINESS SEGMENTS

Note 14 BUSINESS SEGMENTS

During the three and six months ended June 30, 2024 and 2023, the Company managed and classified its business into two reportable business segments: (i) Healthcare and (ii) Labs and Life

● Healthcare - The Company’s healthcare segment began with the acquisition of Myrtle on June 14, 2024, as more fully discussed in Note 5. Healthcare offers behavioral health services, including substance abuse treatment. Services are provided on either an inpatient, residential basis or an outpatient basis. Presently, it offers alcohol and drug residential detoxification and residential rehabilitation treatment services for up to 30 patients.

● Labs and Life - The Company’s Labs and Life segment 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. On February 3, 2023, the Company sold FOXO Life Insurance Company as more fully discussed in Note 13.

The primary income measure used for assessing segment performance and making operating decisions is income (losses) before interest, income taxes, depreciation, amortization, and stock-based compensation. 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 and any non-cash changes in fair value.

Healthcare generates revenues from the substance abuse treatments, including inpatient and outpatient services. Labs and Life generates revenues through performing epigenetic biomarker services and by collecting epigenetic services royalties and residual revenues from the sale of life insurance products.

With the acquisition of Myrtle on June 14, 2024, the Chief Operating Decision Maker (“CODM”) has begun to use asset information to make decisions and allocate resources. Asset by segment as of June 30, 2024 and December 31, 2023 were as follows:

	June 30, 2024		December 31, 2023
Healthcare	$	4,341	$	-
Labs and Life		2,435		408
Corporate and other		130		317
Total assets	$	6,906	$	725

Summarized below is information about the Company’s operations for the three months ended June 30, 2024 and 2023 by business segment:

	Revenues				Losses
	2024		2023		2024			2023
Healthcare	$	20	$	-	$	(67	)	$	-
Labs and Life		8		12		(503	)		(557	)
		28		12		(570	)		(557	)
Impairments of intangible assets		-		-		-			(2,633	)
2022 Debenture Release and PIK Note Amendment		-		-		-			(3,521	)
Corporate and other (a)		-		-		(1,051	)		(4,090	)
Interest expense		-		-		(542	)		(492	)
Total	$	28	$	12	$	(2,163	)	$	(11,293	)

(a) For the three months ended June 30, 2024, Corporate and other includes stock-based compensation, including amortization of consulting fees paid in stock, of $144 and depreciation and amortization expense of $52. For the three months ended June 30, 2023, Corporate and other includes stock-based compensation, including consulting agreement expense, of $1,268 and depreciation and amortization expense of $247.

Summarized below is information about the Company’s operations for the six months ended June 30, 2024 and 2023 by business segment:

	Revenues				Losses
	2024		2023		2024			2023
Healthcare	$	20	$	-	$	(67	)	$	-
Labs and Life		15		25		(870	)		(1,494	)
		35		25		(937	)		(1,494	)
Impairments of intangible assets		-		-		-			(2,633	)
2022 Debenture Release and PIK Note Amendment		-		-		-			(3,521	)
Corporate and other (a)		-		-		(1,887	)		(10,567	)
Interest expense		-		-		(843	)		(717	)
Total	$	35	$	25	$	(3,667	)	$	(18,932	)

(a) For the six months ended June 30, 2024, Corporate and other includes stock-based compensation, including amortization of consulting fees paid in stock, of $288 and depreciation and amortization expense of $104. For the six months ended June 30, 2023, Corporate and other includes stock-based compensation, including consulting agreement expense, of $3,894 and depreciation and amortization expense of $1,176.