Executive exodus at Foxo as funds run dangerously low

Foxo Technologies interim CEO Tyler Danielson resigned last week, one of several recent executive-level exits for the startup company as it continues to struggle financially.

The company said late Tuesday in a filing with the Securities and Exchange Commission that it has enough funding to operate through early October. Non-executive employees agreed to be paid in common stock this month.

Danielson, who served as both interim CEO and chief technology officer for Foxo, notified the company of his resignation on Sept. 13, the SEC filing said.

On Sept. 14, Brian Chen, the company's chief science officer, resigned. Also that day, Foxo terminated Michael Will, Foxo's general counsel, instead contracting with him to provide legal advice on an as-needed basis, the filing said.

In August, Robert Potashnick resigned as chief financial officer, effective last week.

On Tuesday, the Foxo board appointed Mark White as interim CEO and Martin Ward as interim CFO. White, according to the SEC filing is an "at-will employee" with an annual salary of $1. He also will receive benefits. The filing did not indicate if he will receive stock, but said the employment contract is still not completed.

The company in the filing said it "is undertaking an exploration of strategic alternatives focused on, among other things, AI technology-based applications and solutions." White and Ward are substantial shareholders — and White runs — the startup KR8 AI. Foxo is exploring whether KR8 is a "suitable acquisition candidate."

Also on Tuesday Andrew Poole, one of the company's directors, loaned the company $247,233.

Last week the company signed an agreement with non-executive employees to accept common stock instead of a cash salary for the month of September. Its filing indicates that the company now has 11 employees and consultants, two executive officers and two non-employee directors.

Minneapolis-based Foxo went public in September 2022 through a merger with a special purpose acquisition company (SPAC). A year later the company is struggling to stay afloat.

In July, the company disclosed that it was running out of cash to continue operating and was evaluating alternatives including bankruptcy and the sale of the company.

The company survived the same challenge in recent weeks. In mid-August the company said that it had enough money to continue operating until "early September."

Foxo's latest SEC filing indicates that with belt-tightening measures, recent layoffs and money raised through a private placement that it now can operate until early October.

If the company can't now raise new financing or execute a strategic transaction it is at risk of suspending its operations or filing for bankruptcy.

Amid the executive turnover and short supply of cash, Foxo's filing stated, "The company has no current plans to file for bankruptcy or to liquidate assets."