FOXO Technologies (US:FOXO)2024-11-19 18:10Financial Performance - Total revenues for the three months ended September 30, 2024, were $1,196, an increase of $1,186 compared to $10 for the same period in 2023, primarily driven by contributions from Myrtle and RCHI acquisitions [268]. - Net loss attributable to FOXO for the three months ended September 30, 2024, was $(1,946), a decrease of $1,714 compared to $(3,660) for the same period in 2023 [268]. - The company recognized a net loss of $(2,034) to common stockholders for the three months ended September 30, 2024, compared to $(4,572) for the same period in 2023, a reduction of $2,538 [268]. - Net loss attributable to FOXO improved to $1,946 for the three months ended September 30, 2024, a 47% reduction from a net loss of $3,660 in the same period of 2023 [276]. - Net revenues for the nine months ended September 30, 2024, were $1,231, a significant increase from $35 in the same period of 2023, representing a change of $1,196 [284]. - Net loss attributable to FOXO for the nine months ended September 30, 2024, was $5,613, an improvement of 75% compared to a net loss of $22,592 in the same period of 2023 [292]. - Net losses available to common stockholders were $6,667,000 for the nine months ended September 30, 2024, compared to $25,970,000 in 2023 [303]. - Adjusted EBITDA for the nine months ended September 30, 2024 was $(597,000), an improvement from $(4,785,000) in 2023 [302]. Costs and Expenses - Direct costs of revenues increased to $541 for the three months ended September 30, 2024, from $70 in the same period of 2023, attributed to the direct costs associated with Myrtle and RCHI [270]. - Research and development expenses decreased to $43 for the three months ended September 30, 2024, from $283 in the same period of 2023, a reduction of 85% [271]. - Selling, general and administrative expenses were $1,733 for the three months ended September 30, 2024, down 63% from $4,717 in the same period of 2023, a decrease of $2,984 [274]. - Direct costs of revenues increased to $572 for the nine months ended September 30, 2024, compared to $70 in the same period of 2023, a rise of 717% [285]. - Research and development expenses for the nine months ended September 30, 2024, were $312, down 66% from $925 in the same period of 2023 [286]. - Selling, general and administrative expenses decreased to $4,195 for the nine months ended September 30, 2024, from $15,052 in the same period of 2023, a reduction of $10,857 or 72% [289]. Acquisitions and Business Strategy - The healthcare segment began operations with the acquisition of Myrtle on June 14, 2024, and expanded with the acquisition of RCHI on September 10, 2024, focusing on substance abuse treatments and hospital services [261]. - FOXO entered into a KR8 Agreement on October 29, 2023, to develop a Direct-to-Consumer APP utilizing AI technology for epigenetic biomarker applications [250]. - The company completed the acquisitions of Myrtle and RCHI on June 14, 2024, and September 10, 2024, respectively, with RCHI expected to provide positive operating cash flows [341]. - The company expects the Myrtle and RCHI businesses to be cash flow neutral through the remainder of 2024 [319]. Financial Position and Cash Flow - Cash and cash equivalents were $34,000 as of September 30, 2024, down from $38,000 at the end of 2023 [303]. - The company has a working capital deficit of $31,439,000 and a total stockholders' deficit of $17,554,000 as of September 30, 2024 [303]. - The company is negotiating additional funding with multiple sources to support its business strategy [304]. - For the nine months ended September 30, 2024, the company used net cash of $995, a significant improvement from $6,165 used in the same period in 2023, primarily due to a $16,979 reduction in net loss [325]. - The company has contractual obligations totaling $50,291, with $13,231 due within one year [330]. - The company reported a total stockholders' deficit of $31,439 as of September 30, 2024, compared to $17,554 in the previous year [338]. - The company has $34 of available cash and cash equivalents as of September 30, 2024 [338]. Risks and Uncertainties - Recent acquisitions of Myrtle and RCHI may increase operational risks for the company [349]. - Economic uncertainties include downturns in financial markets, inflation, and rising oil prices [349]. - The company faces potential impacts from supply chain disruptions and declines in consumer confidence [349]. - Geopolitical instability, such as military conflicts in Ukraine and Israel, could adversely affect operations [349]. - The resurgence of the COVID-19 pandemic and new variants remain a concern for business stability [349]. - The company is subject to noncompliance procedures from NYSE due to a stockholders' deficit of $16,167 as of June 30, 2024 [345]. - The company is classified as a smaller reporting company and is not required to disclose certain market risk information [350].