9.15.22 OMA Finance Committee Meeting

OBESITY MEDICINE ASSOCIATION Notes To Consolidated Financial Statements (Continued)

Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, gains, losses and other changes in net assets during the reporting period. Actual results could differ from those estimates. Payment Protection Program In 2021, the Association obtained a loan under the Paycheck Protection Program (the PPP), which was fully forgiven. Pursuant to the provisions of the Accounting Standards Codification 2018-08, Not-for-Profit Entities - Clarifying the Scope and Accounting Guidance for Contributions Received and Contributions Made (Topic 958) , management recognized the PPP loan forgiveness as a gain once loan forgiveness was received. Income Taxes The Association is exempt from federal income tax under Section 501(c)(6) of the Internal Revenue Code (IRC). However, income from certain activities not directly related to the Association’s tax-exempt purpose is subject to taxation as unrelated business income. Taxes on unrelated taxable business activities in 2021 are not material. The Foundation is exempt from federal income tax under Section 501(c)(3) of IRC. However, income from certain activities not directly related to the Foundation’s tax-exempt purpose is subject to taxation as unrelated business income. The Foundation did not incur taxes on unrelated taxable business activities in 2021. Advertising Expense The Organizations expense advertising costs as they are incurred. Advertising expenses consist primarily of marketing expenses for the educational seminars. Total advertising expense of $39,418 in 2021 is included in education and seminars expense. DRAFT FOR DISCUSSION PURPOSES ONLY

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