FOXO facing capital shortage
FOXO Technologies hosted its Q2’23 earnings call on Aug 4, 2023. Select highlights:
- Secured additional financing through a private placement and streamlined capital structure.
- Expanded the epigenetic program and shifted strategic focus beyond the life insurance sector.
- Developed a saliva-based underwriting technology powered by epigenetic science and launched FOXO Longevity Report for consumer engagement.
- Feedback received on marketing efforts led to insights into consumer interests, necessitating further R&D.
- With an increased focus on bioinformatics and AI-driven R&D, further development will be paused to ensure successful offerings in the future.
- Plans to return to insurance offerings later and will double down on strengths in bioinformatics and AI.
- Plans to expand into the global blood testing, wellness testing, and at-home fitness industries – “pending sufficient capitalization”.
- Research studies with multiple organizations are planned to accelerate new health measures.
- Completed 2 issuer tender offers in May: an exchange offer and a PIK Note Offer to amend.
- Reduced staff to minimize expenses and align with the renewed business direction.
- Net Loss to Common Stockholders: 3 months ended June 30, 2023: $13.8 million ($0.49 per share).
- Adjusted EBITDA: 3 months ended June 30, 2023: negative $3.3 million.
- As of June 30, 2023, combined with the gross proceeds from stock purchase agreements in July 2023, the company is projected to fund operations until mid-August 2023. The company is actively exploring options for additional financing.
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