FOXO Technologies Interim CFO Pens Shareholder Letter; Expects To Build Business Over Next 12-24 Months To Generate Revenues Of More Than $50M A Year

Benzinga · 10/15 12:36

Dear Fellow Shareholders,

2024 has been an exciting, tumultuous and productive year for us. We believe the accomplishments already completed and that we believe will be achieved before year-end create a foundation from which we can build a successful enterprise that will increase shareholder value.

The Company began 2024 with a continued focus on commercializing its epigenetic technology while, at the same time, exploring acquisition opportunities that would accelerate growth, revenue and synergies to expand our business in the health care and well-being sectors.

We started the last quarter of 2024 with two acquisitions of revenue generating businesses completed, that, without expansion, are expected to deliver in excess of $20 million of revenues in 2025. We are excited about prospects for further development and acquisitions and believe we can quickly build our business over the next 12-24 months to generate revenues of more than $50 million a year.

The Company expanded its financial management capabilities in the second quarter of 2024 and is confident it will remain consistently compliant with SEC reporting requirements going forward. The Company is actively taking steps to address the NYSE continued listing requirements deficiencies previously reported and is confident it will succeed in addressing these deficiencies and retaining its NYSE American listing.

FOXO is a pioneer in epigenetic biomarker discovery and commercialization. Our mission is to extend and enhance human life through advanced prognostics, therapeutic solutions, and lifestyle improvements. We have generated epigenetic data for over 13,000 individuals through internal research and external collaborations. This extensive dataset, paired with broad phenotypic information, is expected to drive further product development.

Our efforts led to a patent, US No. 16/579,818 Machine learning model trained to determine a biochemical state and/or medical condition using DNA epigenetic data, which was issued November 2023. The potential commercial applications for this technology include AI platforms for delivering health and well-being insights, wellness monitoring, and consumer health products.

This patent comprises 20 claims stemming from epigenic data, to pattern discovery with AI, and clinical correlations. This patent utilizes a machine learning model trained to determine biochemical states and medical conditions using DNA epigenetic data. It represents a significant advancement in combining artificial intelligence and epigenetics to develop innovative health and life span solutions.

Key aspects of the patent include (a) using machine learning estimators to "fill in" missing or unreliable epigenetic values at specific DNA loci, aiding in the practical application of generating epigenetic biomarkers and (b) leveraging machine learning to estimate various measures of an individual's health, including disease states, biomarker levels, drug use, health histories, and factors used to monitor bodily well-being.

The Company is now positioned to launch a direct-to-consumer prognostic that will provide actionable information and guidance to improve well-being and life span. Our recent acquisitions create relationships and synergies that will help us deliver this goal. Our patent enables us to operate and creates licensing opportunities for others in the future. We believe the Company is well positioned for continued innovation and business growth in the rapidly evolving field of AI-driven healthcare and life span solutions. By combining the fields of epigenetics and artificial intelligence, FOXO Technologies' pioneering approach sets a new standard for personalized healthcare. For more information about our technology, visit www.foxotechnologies.com

The Company's first acquisition, completed in the second quarter of 2024, was Myrtle Recovery Centers, Inc. Myrtle operates a 30-bed behavioural health facility in East Tennessee. It provides inpatient services for Detoxification and Residential Treatment and outpatient services for Medication-assisted treatment (MAT) and Office-Based Opioid Treatment (OBOT) programs. The facility was opened in August 2023 and is in the final stages of securing in-network contracts with various insurance company payers. We anticipate growing this business to having profitable annual net revenues of approximately $3-4M and plan to replicate the service delivery model in other locations. More recently, we have seen significant increases in census as marketing efforts have intensified and payor contracts have been executed. Further information can be found at www.myrtlerecoverycenters.com

In the third quarter of 2024 we completed the acquisition of Scott County Community Hospital, Inc. (d/b/a Big South Fork Medical Center), a critical access designated (CAH) hospital located in East Tennessee. 2023 net revenues were approximately $18.5 million. The hospital provides emergency services, outpatient services (including laboratory and radiology services) and inpatient services. Further information can be found at www.bsfmedical.com

We have a number of targets to accomplish in the last quarter of 2024.

  • We will shortly announce a date for our Annual General Meeting
  • We remain focused to ensure the Company meets the continued listing requirements of NYSE American.
  • We are actively in discussion with debtholders and other parties to address legacy debts and liabilities.
  • We are seeking new capital, some of which is already committed, to expand our recently acquired businesses, pursue acquisitions, and launch and deliver our epigenetic technology to the marketplace.
  • We will update our shareholders as we progress and are in process of updating our website and online presence to better reflect our expanded business as a result of 2024 accomplishments.

     

I trust you will agree with our firm belief that 2024 accomplishments have created attractive opportunities for the Company and its shareholders. We have challenges to overcome and objectives to achieve for the remainder of the year and we remain confident that continued support from our shareholders will result in accomplishments we can all be proud of and enjoy.

Sincerely 

Mark White (Interim CEO)