MS-16. Non-GAAP Disclosure OPTIMIZE RX

(OPRX)

L01,2 MODCLOTH INC. • LOS •

LOS LOS MONDELEZ INTERNATIONAL

(MDLZ) •

OptimizeRx provides digital health messaging via electronic health records to provide a direct channel for pharmaceutical companies to communicate with healthcare providers and patients. The company reported the following in its 2018 earnings release.

Reconciliation of Non-GAAP to GAAP Financial Measures Net income (loss) .... .. .. .. .... .

Depreciation and amortization .... .

Stock-based compensation .. .. . . .

Non GAAP net income .......... .

For the Three Months Ended Dec. 31, 2018

$(109,914)

153,085 798,866

$ 842,037 For the Twelve Months EndedDec.31,2018

$ 226,344 316,502 2,520,852

$3,063,698

a. Explain in plain language the two adjustments that OptimizeRx makes to arrive at non-GAAP net income.

b. How did the adjustments affect non-GAAP net income for the fi scal quarter ended December 31, 2018? For the 2018 fiscal year? Are these effects significant?