FOXO Technologies Announces Filing of Form 10-Q for the Third Quarter 2022
FOXO Technologies Inc. (NYSEAM: FOXO) has filed its Form 10-Q for the third quarter ended September 30, 2022, after initially delaying it to review the accounting treatment of certain warrants and Series A Preferred Stock. The company confirmed that the accounting treatment was appropriate. Despite macro challenges, FOXO launched its first Longevity Report and an automated epigenetic testing system while integrating with two partners. The interim CEO expressed confidence in the company's direction, emphasizing innovation and adaptability to enhance user experience. FOXO has postponed its Q3 earnings call, planning instead for a Q4 update.
- Successfully filed Form 10-Q within the extension period, confirming appropriate accounting treatment.
- Launched first Longevity Report and automated epigenetic testing system.
- Established integrations with two partner systems.
- Delayed filing of Form 10-Q raises concerns about accounting practices.
- Postponed Q3 earnings call may hinder investor communication.
The company initially delayed its filing of Form 10-Q for the third quarter of 2022, which was originally expected on
“2022 has been a year full of challenges, a year both momentous and extraordinary,” said
As a result of its delayed filing, the company has decided to forego its previously planned third quarter 2022 earnings and business update call and will instead look to host a fourth quarter 2022 earnings and business update call at a later date. The Company will communicate details when appropriate.
About
No Offer or Solicitation
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended or an exemption therefrom.
Forward-Looking Statements
This press release contains certain forward-looking statements for purposes of the “safe harbor” provisions under the United States Private Securities Litigation Reform Act of 1995. Any statements other than statements of historical fact contained herein, including statements as to future results of operations and financial position, planned products and services, business strategy and plans, objectives of management for future operations of
CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share data) |
|||||||
|
|
||||||
2022 |
2021 |
||||||
Assets |
(unaudited) |
||||||
Current assets |
|||||||
Cash and cash equivalents |
$ |
10,454 |
|
$ |
6,856 |
|
|
Supplies |
2,057 |
|
295 |
|
|||
Prepaid expenses |
511 |
|
444 |
|
|||
Prepaid consulting fees |
4,758 |
|
- |
|
|||
Other current assets |
20 |
|
23 |
|
|||
Total current assets |
|
17,800 |
|
|
7,618 |
|
|
Property and equipment, net |
136 |
|
187 |
|
|||
Intangible assets |
2,071 |
|
191 |
|
|||
Investments |
100 |
|
100 |
|
|||
Reinsurance recoverables |
18,754 |
|
19,463 |
|
|||
Cloud computing arrangements |
4,709 |
|
2,745 |
|
|||
Forward purchase collateral |
27,919 |
|
- |
|
|||
Total assets |
$ |
71,489 |
|
$ |
30,304 |
|
|
Liabilities and Stockholders' Equity |
|||||||
Current liabilities |
|||||||
Accounts payable |
$ |
2,706 |
|
$ |
3,456 |
|
|
Related party payable |
500 |
|
- |
|
|||
Shares payable |
384 |
|
- |
|
|||
Parallel run advance |
256 |
|
- |
|
|||
Accrued and other liabilities |
504 |
|
402 |
|
|||
Forward purchase put derivative |
1,284 |
|
- |
|
|||
Forward purchase collateral derivative |
27,378 |
|
- |
|
|||
Related party convertible debentures |
- |
|
9,967 |
|
|||
Convertible debentures |
- |
|
22,236 |
|
|||
Total current liabilities |
|
33,012 |
|
|
36,061 |
|
|
Warrant liability |
1,038 |
|
- |
|
|||
Long term debt |
2,918 |
|
- |
|
|||
Policy reserves |
18,754 |
|
19,463 |
|
|||
Total liabilities |
|
55,722 |
|
|
55,524 |
|
|
Commitments and contingencies (Note 13) |
|||||||
Stockholders' equity (deficit) |
|||||||
Preferred stock, |
- |
|
- |
|
|||
Class A common stock, |
3 |
|
- |
|
|||
Undesignated preferred stock, |
- |
|
- |
|
|||
Non-redeemable preferred stock series A, |
- |
|
21,854 |
|
|||
Common stock class A, |
- |
|
- |
|
|||
Common stock class B, |
- |
|
- |
|
|||
Additional paid-in capital |
144,672 |
|
4,902 |
|
|||
Accumulated deficit |
(128,908 |
) |
(51,976 |
) |
|||
Total stockholders' equity (deficit) |
|
15,767 |
|
|
(25,220 |
) |
|
Total Liabilities and Stockholders' Equity (Deficit) |
$ |
71,489 |
|
$ |
30,304 |
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited) |
|||||||||||||||
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Total revenue |
$ |
14 |
|
$ |
31 |
|
$ |
93 |
|
$ |
93 |
|
|||
Operating expenses: |
|||||||||||||||
Research and development |
558 |
|
1,665 |
|
2,160 |
|
4,321 |
|
|||||||
Selling, general and administrative |
|
8,269 |
|
|
2,721 |
|
|
17,239 |
|
|
7,640 |
|
|||
Total operating expenses |
|
8,827 |
|
|
4,386 |
|
|
19,399 |
|
|
11,961 |
|
|||
Loss from operations |
(8,813 |
) |
(4,355 |
) |
(19,306 |
) |
(11,868 |
) |
|||||||
Non-cash change in fair value of convertible debentures |
(3,697 |
) |
(22,571 |
) |
(28,180 |
) |
(24,890 |
) |
|||||||
Change in fair value of warrant liability |
1,349 |
|
- |
|
1,349 |
|
- |
|
|||||||
Change in fair value of forward purchase put derivative |
(1,284 |
) |
- |
|
(1,284 |
) |
- |
|
|||||||
Change in fair value of forward purchase collateral derivative |
(27,378 |
) |
- |
|
(27,378 |
) |
- |
|
|||||||
Other expense |
(779 |
) |
(2 |
) |
(883 |
) |
(31 |
) |
|||||||
Interest expense |
|
(424 |
) |
|
(313 |
) |
|
(1,250 |
) |
|
(825 |
) |
|||
Total other expense |
|
(32,213 |
) |
|
(22,886 |
) |
|
(57,626 |
) |
|
(25,746 |
) |
|||
Loss before income taxes |
(41,026 |
) |
(27,241 |
) |
(76,932 |
) |
(37,614 |
) |
|||||||
Provision for income taxes |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||
Net loss |
$ |
(41,026 |
) |
$ |
(27,241 |
) |
$ |
(76,932 |
) |
$ |
(37,614 |
) |
|||
Net loss per Class A common stock, basic and diluted |
$ |
(6.70 |
) |
$ |
(4.68 |
) |
$ |
(12.88 |
) |
$ |
(6.47 |
) |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT (Dollars in thousands) (Unaudited) |
|||||||||||||||||||||||||||||||||||||||||
Stockholder Subscription Receivable | Series A Preferred Stock | Common Stock (Class A) | Common Stock (Class B) | Common Stock (Class A) | Accumulated Deficit | Total | |||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||||||||||||||||||||||
Balance, |
$ | (1,250 |
) |
8,000,000 |
|
$ | 21,854 |
|
30,000 |
|
$ | - |
2,000,000 |
|
$ | - |
- |
$ | - |
$ | 4,447 |
|
$ | (23,861 |
) |
$ | 1,190 |
|
|||||||||||||
Net loss | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
- |
|
(27,241 |
) |
(27,241 |
) |
|||||||||||||||||||||
Lease contributions | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
137 |
|
- |
|
137 |
|
|||||||||||||||||||||
Equity-based compensation | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
45 |
|
- |
|
45 |
|
|||||||||||||||||||||
Subscriptions received | 1,250 |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
- |
|
- |
|
1,250 |
|
|||||||||||||||||||||
Balance, |
$ | - |
|
8,000,000 |
|
$ | 21,854 |
|
30,000 |
|
$ | - |
2,000,000 |
|
$ | - |
- |
$ | - |
$ | 4,629 |
|
$ | (51,102 |
) |
$ | (24,619 |
) |
|||||||||||||
Nine Months Ended |
|||||||||||||||||||||||||||||||||||||||||
Balance, |
$ | (3,750 |
) |
8,000,000 |
|
$ | 21,854 |
|
- |
|
$ | - |
2,000,000 |
|
$ | - |
- |
$ | - |
$ | 4,104 |
|
$ | (13,488 |
) |
$ | 8,720 |
|
|||||||||||||
Net loss | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
- |
|
(37,614 |
) |
(37,614 |
) |
|||||||||||||||||||||
Lease contributions | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
410 |
|
- |
|
410 |
|
|||||||||||||||||||||
Equity-based compensation | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
102 |
|
- |
|
102 |
|
|||||||||||||||||||||
Subscriptions received | 3,750 |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
- |
|
- |
|
3,750 |
|
|||||||||||||||||||||
Warrants issued | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
13 |
|
- |
|
13 |
|
|||||||||||||||||||||
Issuance of shares for restricted stock | - |
|
- |
|
- |
|
30,000 |
|
- |
- |
|
- |
- |
- |
- |
|
- |
|
- |
|
|||||||||||||||||||||
Balance, |
$ | - |
|
8,000,000 |
|
$ | 21,854 |
|
30,000 |
|
$ | - |
2,000,000 |
|
$ | - |
- |
$ | - |
$ | 4,629 |
|
$ | (51,102 |
) |
$ | (24,619 |
) |
|||||||||||||
Three Months Ended |
|||||||||||||||||||||||||||||||||||||||||
Balance, |
$ | - |
|
8,000,000 |
|
$ | 21,854 |
|
1,545,154 |
|
$ | - |
2,000,000 |
|
$ | - |
- |
$ | - |
$ | 12,026 |
|
$ | (87,882 |
) |
$ | (54,002 |
) |
|||||||||||||
Activity prior to the business combination: | |||||||||||||||||||||||||||||||||||||||||
Net loss | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
- |
|
(9,531 |
) |
(9,531 |
) |
|||||||||||||||||||||
Equity-based compensation | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
211 |
|
- |
|
211 |
|
|||||||||||||||||||||
Effects of the business combination: | - |
|
|||||||||||||||||||||||||||||||||||||||
Conversion of Series A Preferred Stock | - |
|
(8,000,000 |
) |
(21,854 |
) |
8,000,000 |
|
- |
- |
|
- |
- |
- |
21,854 |
|
- |
|
- |
|
|||||||||||||||||||||
Conversion of Bridge Loans | - |
|
- |
|
- |
|
15,172,729 |
|
- |
- |
|
- |
- |
- |
88,975 |
|
- |
|
88,975 |
|
|||||||||||||||||||||
Conversion of Class B Common Stock | - |
|
- |
|
- |
|
2,000,000 |
|
- |
(2,000,000 |
) |
- |
- |
- |
- |
|
- |
|
- |
|
|||||||||||||||||||||
Conversion of existing Class A Common Stock | - |
|
- |
|
- |
|
(26,717,883 |
) |
- |
- |
|
- |
15,518,705 |
1 |
- |
|
- |
|
1 |
|
|||||||||||||||||||||
Reverse recapitalization | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
8,143,649 |
1 |
19,677 |
|
- |
|
19,678 |
|
|||||||||||||||||||||
Activity after the business combination: | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
- |
|
- |
|
|||||||||||||||||||||||
Net loss | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
- |
|
(31,495 |
) |
(31,495 |
) |
|||||||||||||||||||||
Equity-based compensation | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
9,175,000 |
1 |
329 |
|
- |
|
330 |
|
|||||||||||||||||||||
Cantor Commitment Fee | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
190,476 |
- |
1,600 |
|
- |
|
1,600 |
|
|||||||||||||||||||||
Balance, |
$ | - |
|
- |
|
$ | - |
|
- |
|
$ | - |
- |
|
$ | - |
33,027,830 |
$ | 3 |
$ | 144,672 |
|
$ | (128,908 |
) |
$ | 15,767 |
|
|||||||||||||
Nine Months Ended |
|||||||||||||||||||||||||||||||||||||||||
Balance, |
$ | - |
|
8,000,000 |
|
$ | 21,854 |
|
30,208 |
|
$ | - |
2,000,000 |
|
$ | - |
- |
$ | - |
$ | 4,902 |
|
$ | (51,976 |
) |
$ | (25,220 |
) |
|||||||||||||
Activity prior to the business combination: | |||||||||||||||||||||||||||||||||||||||||
Net loss | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
- |
|
(45,437 |
) |
(45,437 |
) |
|||||||||||||||||||||
Lease contributions | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
225 |
|
- |
|
225 |
|
|||||||||||||||||||||
Equity-based compensation | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
717 |
|
- |
|
717 |
|
|||||||||||||||||||||
Warrant repurchase | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
(507 |
) |
- |
|
(507 |
) |
|||||||||||||||||||||
Issuance of shares for exercised stock options | - |
|
- |
|
- |
|
14,946 |
|
- |
- |
|
- |
- |
- |
- |
|
- |
|
- |
|
|||||||||||||||||||||
Issuance of shares for consulting agreement | - |
|
- |
|
- |
|
1,500,000 |
|
- |
- |
|
- |
- |
- |
6,900 |
|
- |
|
6,900 |
|
|||||||||||||||||||||
Effects of the business combination: | |||||||||||||||||||||||||||||||||||||||||
Conversion of Series A Preferred Stock | - |
|
(8,000,000 |
) |
(21,854 |
) |
8,000,000 |
|
- |
- |
|
- |
- |
- |
21,854 |
|
- |
|
- |
|
|||||||||||||||||||||
Conversion of Bridge Loans | - |
|
- |
|
- |
|
15,172,729 |
|
- |
- |
|
- |
- |
- |
88,975 |
|
- |
|
88,975 |
|
|||||||||||||||||||||
Conversion of Class B Common Stock | - |
|
- |
|
- |
|
2,000,000 |
|
- |
(2,000,000 |
) |
- |
- |
- |
- |
|
- |
|
- |
|
|||||||||||||||||||||
Conversion of existing Class A Common Stock | - |
|
- |
|
- |
|
(26,717,883 |
) |
- |
- |
|
- |
15,518,705 |
1 |
- |
|
- |
|
1 |
|
|||||||||||||||||||||
Reverse recapitalization | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
8,143,649 |
1 |
19,677 |
|
- |
|
19,678 |
|
|||||||||||||||||||||
Activity after the business combination: | |||||||||||||||||||||||||||||||||||||||||
Net loss | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
- |
- |
|
(31,495 |
) |
(31,495 |
) |
|||||||||||||||||||||
Equity-based compensation | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
9,175,000 |
1 |
329 |
|
- |
|
330 |
|
|||||||||||||||||||||
Cantor Commitment Fee | - |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
190,476 |
- |
1,600 |
|
- |
|
1,600 |
|
|||||||||||||||||||||
Balance, |
$ | - |
|
- |
|
$ | - |
|
- |
|
$ | - |
- |
|
$ | - |
33,027,830 |
$ | 3 |
$ | 144,672 |
|
$ | (128,908 |
) |
$ | 15,767 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) (Unaudited) |
|||||||
Nine Months Ended
|
|||||||
2022 |
|
2021 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||||
Net loss |
$ |
(76,932 |
) |
$ |
(37,614 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|||||||
Depreciation |
159 |
|
71 |
|
|||
Equity-based compensation |
1,002 |
|
8 |
|
|||
Cantor commitment fee |
1,600 |
|
- |
|
|||
Amortization of consulting fees |
2,954 |
|
- |
|
|||
Change in fair value of convertible debentures |
28,180 |
|
24,890 |
|
|||
Change in fair value of forward purchase agreement collateral derivative |
27,378 |
|
- |
|
|||
Change in fair value of warrants |
(1,349 |
) |
- |
|
|||
Change in fair value of forward purchase agreement put derivative |
1,284 |
|
- |
|
|||
Conversion of accrued interest |
593 |
|
- |
|
|||
Contributions in the form of rent payments |
225 |
|
410 |
|
|||
Amortization of right-of-use assets |
20 |
|
- |
|
|||
Accretion of operating lease liabilities |
(20 |
) |
- |
|
|||
Recognition of prepaid offering costs upon election of fair value option |
107 |
|
- |
|
|||
Accretion of interest earned on investment in convertible promissory note |
- |
|
(26 |
) |
|||
Other |
- |
|
13 |
|
|||
Changes in operating assets and liabilities: |
|||||||
Supplies |
(1,762 |
) |
(296 |
) |
|||
Prepaid expenses, consulting fees, and other current assets |
(1,002 |
) |
55 |
|
|||
Cloud computing arrangements |
(1,941 |
) |
(1,701 |
) |
|||
Reinsurance recoverables |
709 |
|
88 |
|
|||
Accounts payable |
(489 |
) |
2,247 |
|
|||
Accrued and other liabilities |
761 |
|
197 |
|
|||
Policy reserves |
(709 |
) |
(88 |
) |
|||
Net cash used in operating activities |
|
(19,232 |
) |
|
(11,746 |
) |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||||
Purchase of property and equipment |
(108 |
) |
(73 |
) |
|||
Asset acquisition, net of cash acquired |
- |
|
(63 |
) |
|||
Development of internal use software |
(1,622 |
) |
(9 |
) |
|||
Acquisition of convertible promissory note |
- |
|
(50 |
) |
|||
Net cash used in investing activities |
|
(1,730 |
) |
|
(195 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||||
Proceeds from issuance of related party convertible debentures |
- |
|
3,250 |
|
|||
Proceeds from issuance of convertible debentures |
28,000 |
|
7,250 |
|
|||
Warrant repurchase |
(507 |
) |
- |
|
|||
Senior |
3,458 |
|
- |
|
|||
Reverse recapitalization proceeds |
23,226 |
|
- |
|
|||
Forward purchase agreement escrow |
(29,135 |
) |
- |
|
|||
Forward purchase agreement proceeds |
484 |
|
- |
|
|||
Forward purchase agreement collateral release to |
733 |
|
- |
|
|||
Deferred offering costs |
(539 |
) |
- |
|
|||
Related party promissory note |
(1,160 |
) |
- |
|
|||
Proceeds received from stockholder subscription receivable |
- |
|
3,750 |
|
|||
Net cash provided by financing activities |
|
24,560 |
|
|
14,250 |
|
|
Net increase in cash and cash equivalents |
3,598 |
|
2,309 |
|
|||
Cash and cash equivalents at beginning of period |
6,856 |
|
8,123 |
|
|||
Cash and cash equivalents at end of period |
$ |
10,454 |
|
$ |
10,432 |
|
|
NONCASH INVESTING AND FINANCING ACTIVITIES: |
|||||||
Conversion of phantom equity to stock options |
$ |
- |
|
$ |
54 |
|
|
Conversion of debt |
$ |
88,382 |
|
$ |
- |
|
|
Conversion of preferred stock |
$ |
21,854 |
|
$ |
- |
|
|
Accrued internal use software |
$ |
239 |
|
$ |
- |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20221123005474/en/
Contacts / Investor Relations
Gateway Investor Relations
(949) 574-3860
FOXO@gatewayir.com
Source:
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