10.25.2023 OMA Board Book

OBESITY MEDICINE ASSOCIATION Notes To Consolidated Financial Statements (Continued)

6.

Concentrations Of Risk The Association’s membership and the Foundation’s donation base are comprised mostly of obesity medicine physicians and members who provide services to physicians. Revenues are derived from membership dues/contributions from these groups and conferences sponsored by the Association for those individuals. As such, the Association’s revenues are dependent on the financial health of the obesity medicine industry. Contingencies Indemnification - Under the Articles of Incorporation, the Association's directors and officers are indemnified against certain liability arising out of the performance of their duties to the Association. The Association also has an insurance policy for its directors and officers to insure it against liabilities arising from the performance of their duties required by their positions with the Association. The Association's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Association that have not yet occurred. However, based on experience, the Association expects the risk of loss to be remote. Minimum Room Guarantee For Annual Conference - The Association holds an annual in-person conference held at a hotel and conference facility for which it typically provides a guarantee related to the minimum number of rooms (attrition). The Association has a contract for a future event in 2027 with an attrition clause. During 2022, the Association incurred approximately $256K in attrition costs, which is included in Symposium on the statement of functional expenses. As of the date of these financial statements, there is no amount that is probable and measurable related to 2027 event with an attrition clause, and no amount related to that contingency is recorded in these financial statements.

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