FOXO Technologies Entered Into An Agreement With KR8 AI Granting Them A Limited License To Use Certain Products And Develop An Ai Machine Learning App; Initial License And Development Fee Of $2.5M, A Monthly Maintenance Fee Of $50K, Royalty Equal To 15%
Portfolio Pulse from Benzinga Newsdesk
FOXO Technologies Inc. has entered into a Master Software and Services Agreement with KR8 AI Inc. to use and develop an AI machine learning app based on FOXO's epigenetic biomarker technology. The agreement includes an initial fee of $2.5M, a monthly maintenance fee of $50K, and a 15% royalty on Subscriber Revenues. The agreement is limited to the U.S., Canada, and Mexico, and has provisions for termination under certain conditions, including material breaches and insolvency events.
January 19, 2024 | 8:50 pm
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NEUTRAL IMPACT
FOXO Technologies has committed to a significant financial outlay for the development of an AI app with KR8 AI, which could impact cash flow but also signals potential future revenue streams from the app.
The agreement represents a substantial investment by FOXO Technologies, which could strain short-term finances due to the initial and ongoing fees. However, the development of the AI app could lead to new revenue streams, making the impact neutral in the short term as the market assesses the potential benefits against the costs. The relevance is high as FOXO is directly involved in the agreement, and the importance is significant due to the potential for future revenue generation. Confidence in this analysis is moderately high, given the clear terms of the agreement and the potential for both risk and reward.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100