Foxo Technologies Inc. (NYSEAM: FOXO) a biotechnology startup that went public last year through a special purpose acquisition company merger, said it has cut its workforce by one-third and faces a cash crunch if it doesn't raise more capital.
The Minneapolis-based company, in a securities filing, said it had cut its staff from 22 employees to 15 on July 21. The move will help the company reduce operating expenses and focus on its business of bioinformatics services. The company uses AI to develop biomarkers of health and aging used by insurers, health researchers, life-science companies.
In the filing, the company said it was seeking to raise additional funding through private placements that will be sufficient to fund its operations through mid-August. If it can't do so, Foxo said it "may be required to evaluate further alternatives," including curtailing operations or seeking bankruptcy protection.
Foxo posted a first-quarter loss of $7.6 million, down from a loss of $12.3 million in the same period a year ago.
