FOXO Technologies Reports Significant Financial Changes, Revenue Growth, and Operational Expansion

As of September 30, 2024, FOXO Technologies Inc. reported significant financial changes compared to the previous fiscal period. The company’s total current assets surged to $2.9 million from $233,000 at the end of 2023, while total assets increased dramatically to $42.7 million from $725,000. However, total liabilities also rose sharply to $60.2 million from $14.8 million, resulting in a worsening stockholders’ deficit of $(17.6 million) compared to $(14.1 million) at the end of 2023.

In terms of revenue, FOXO Technologies experienced a substantial increase, with net revenues for the three months ended September 30, 2024, reaching $1.2 million, up from just $10,000 in the same period of 2023. For the nine months ended September 30, 2024, revenues totaled $1.2 million, compared to $35,000 in the prior year. This growth is attributed to the acquisitions of Myrtle Recovery Centers, Inc. and Rennova Community Health, Inc., which contributed $1.2 million in revenues during the quarter.

Despite the revenue growth, the company reported a net loss of $(1.9 million) for the three months ended September 30, 2024, an improvement from $(3.7 million) in the same period of 2023. For the nine-month period, the net loss was $(5.6 million), significantly reduced from $(22.6 million) in the previous year. The loss per share also improved, with a net loss per share of $(0.15) for the third quarter of 2024, compared to $(0.94) in 2023.

FOXO Technologies has made strategic moves, including the acquisition of Myrtle and RCHI, aimed at expanding its healthcare segment. Myrtle commenced operations in August 2023, providing substance abuse treatment, while RCHI operates a critical access hospital. These acquisitions are expected to enhance the company's revenue streams and operational capabilities.

The company has also faced challenges, including a notice of noncompliance from the NYSE in April 2024, which was resolved by August 2024. Additionally, FOXO Technologies has expressed substantial doubt about its ability to continue as a going concern without securing additional capital, as current revenues are insufficient to fund operations for the next twelve months.

Cash flow from operating activities showed improvement, with a net cash used of $(995,000) for the nine months ended September 30, 2024, compared to $(6.2 million) in the same period of 2023. The company ended the quarter with $34 in cash and cash equivalents, highlighting ongoing liquidity challenges.

Overall, while FOXO Technologies has made strides in revenue growth and operational expansion, it continues to navigate significant financial hurdles and market uncertainties.