OptimizeRx (OPRX) 10-Q 6 May 21 2021 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 03, 2021
Document Information Line Items
Entity Registrant Name	OptimizeRx Corp
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		17,280,252
Amendment Flag	false
Entity Central Index Key	0001448431
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity File Number	001-38543
Entity Incorporation, State or Country Code	NV
Entity Interactive Data Current	Yes

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Current Assets
Cash and cash equivalents	$ 82,278,696	$ 10,516,776
Accounts receivable, net	14,738,890	17,885,705
Prepaid expenses	3,519,528	4,456,611
Total Current Assets	100,537,114	32,859,092
Property and equipment, net	142,119	148,854
Other Assets
Goodwill	14,740,031	14,740,031
Technology assets, net	5,049,334	5,251,822
Patent rights, net	2,304,923	2,349,570
Right of use assets, net	422,635	445,974
Other intangible assets, net	4,361,665	4,519,552
Security deposits and other assets	12,859	12,859
Total Other Assets	26,891,447	27,319,808
TOTAL ASSETS	127,570,680	60,327,754
Current Liabilities
Accounts payable – trade	499,279	618,250
Accrued expenses	869,791	2,420,361
Revenue share payable	3,493,805	4,969,868
Current portion of lease obligations	119,389	123,220
Current portion of contingent purchase price payable		1,610,813
Deferred revenue	448,140	285,795
Total Current Liabilities	5,430,404	10,028,307
Lease obligations, net of current portion	305,039	325,533
Total Non-current liabilities	305,039	325,533
Total Liabilities	5,735,443	10,353,840
Commitments and contingencies (See note 7)
Stockholders’ Equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding at March 31, 2021 or December 31, 2020
Common stock, $0.001 par value, 166,666,667 shares authorized, 17,260,588 and 15,223,340 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively	17,261	15,223
Additional paid-in-capital	158,087,090	85,590,428
Accumulated deficit	(36,269,114)	(35,631,737)
Total Stockholders’ Equity	121,835,237	49,973,914
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 127,570,680	$ 60,327,754

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	166,666,667	166,666,667
Common stock, shares issued	17,260,588	15,223,340
Common stock, shares outstanding	17,260,588	15,223,340

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
TOTAL REVENUE	$ 11,229,211	$ 7,584,602
COST OF REVENUES	5,104,603	3,241,763
GROSS MARGIN	6,124,608	4,342,839
OPERATING EXPENSES	6,762,916	6,602,091
LOSS FROM OPERATIONS	(638,308)	(2,259,252)
OTHER INCOME
Interest Income	931	55,321
TOTAL OTHER INCOME	931	55,321
LOSS BEFORE PROVISION FOR INCOME TAXES	(637,377)	(2,203,931)
PROVISION FOR INCOME TAXES
NET LOSS	$ (637,377)	$ (2,203,931)
WEIGHTED AVERAGE SHARES OUTSTANDING
BASIC (in Shares)	16,101,837	14,609,499
DILUTED (in Shares)	16,101,837	14,609,499
NET LOSS PER SHARE
BASIC (in Dollars per share)	$ (0.04)	$ (0.15)
DILUTED (in Dollars per share)	$ (0.04)	$ (0.15)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($)	Common Stock	Additional Paid in Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2019	$ 14,601	$ 78,272,268	$ (33,424,610)	$ 44,862,259
Balance (in Shares) at Dec. 31, 2019	14,600,579
Shares issued as board compensation	$ 11	99,989		100,000
Shares issued as board compensation (in Shares)	11,136
Shares issued for stock options exercised	$ 35	112,117		112,152
Shares issued for stock options exercised (in Shares)	35,032
Stock-based compensation expense		754,512		754,512
Net loss			(2,203,931)	(2,203,931)
Balance at Mar. 31, 2020	$ 14,647	79,238,886	(35,628,541)	43,624,992
Balance (in Shares) at Mar. 31, 2020	14,646,747
Balance at Dec. 31, 2020	$ 15,223	85,590,428	(35,631,737)	49,973,914
Balance (in Shares) at Dec. 31, 2020	15,223,340
Public offering of common shares, net of offering costs	$ 1,524	70,670,012		70,671,536
Public offering of common shares, net of offering costs (in Shares)	1,523,750
Shares issued as board compensation	$ 3	124,991		124,994
Shares issued as board compensation (in Shares)	2,695
Shares issued for stock options exercised	$ 511	1,119,500		1,120,011
Shares issued for stock options exercised (in Shares)	510,803
Stock-based compensation expense		582,159		582,159
Net loss			(637,377)	(637,377)
Balance at Mar. 31, 2021	$ 17,261	$ 158,087,090	$ (36,269,114)	$ 121,835,237
Balance (in Shares) at Mar. 31, 2021	17,260,588

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (637,377)	$ (2,203,931)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation, amortization and non-cash lease expense	526,180	519,669
Stock-based compensation	582,159	754,512
Stock issued for board service	124,994	100,000
Provision for loss on accounts receivable	20,000
Changes in:
Accounts receivable	3,126,815	(1,643,495)
Prepaid expenses and other assets	937,083	(2,099,448)
Accounts payable	(118,971)	55,105
Revenue share payable	(1,476,063)	1,021,811
Accrued expenses and other liabilities	(1,581,415)	(154,473)
Deferred revenue	162,345	(88,576)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	1,665,750	(3,738,826)
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of intangible assets	(64,693)
Purchase of equipment	(19,871)	(15,937)
NET CASH USED IN INVESTING ACTIVITIES	(84,564)	(15,937)
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
Proceeds from public offering of common stock, net of offering costs	70,671,536
Proceeds from exercise of stock options	1,120,011	112,152
Payment of contingent consideration	(1,610,813)
NET CASH PROVIDED BY FINANCING ACTIVITIES	70,180,734	112,152
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	71,761,920	(3,642,611)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	10,516,776	18,852,680
CASH AND CASH EQUIVALENTS - END OF PERIOD	82,278,696	15,210,069
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest
Cash paid for income taxes
Lease liabilities arising from right of use assets

Nature of Business and Basis of

Nature of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS AND BASIS OF PRESENTATION	NOTE 1 – NATURE OF BUSINESS AND BASIS OF PRESENTATION The accompanying condensed consolidated financial statements include OptimizeRx Corporation and its wholly owned subsidiaries (collectively, the “Company”, “we”, “our”, or “us”). We are a digital health company that provides communications solutions for life science companies, physicians and patients. Connecting over half of healthcare providers in the U.S. and millions of patients through a proprietary network, the OptimizeRx digital health platform helps patients afford and stay on medications. The platform unlocks new patient and physician touchpoints for life science companies along the patient journey, from point-of-care, to retail pharmacy, through mobile patient engagement. The condensed consolidated financial statements for the three months ended March 31, 2021 and 2020 have been prepared by us without audit pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. In the opinion of management, all adjustments necessary to present fairly our financial position at March 31, 2021, and our results of operations, changes in stockholders’ equity, and cash flows for the three months ended March 31, 2021 and 2020, have been made. Those adjustments consist of normal and recurring adjustments. The condensed consolidated condensed balance sheet as of December 31, 2020, has been derived from the audited consolidated condensed balance sheet as of that date. Certain information and note disclosures, including a detailed discussion about the Company’s significant accounting policies, normally included in our annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with a reading of the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as filed with the U.S. Securities and Exchange Commission on March 8, 2021. The results of operations for the three months ended March 31, 2021, are not necessarily indicative of the results to be expected for the full year.

New Accounting Standards

New Accounting Standards	3 Months Ended
	Mar. 31, 2021
Accounting Standards Update and Change in Accounting Principle [Abstract]
NEW ACCOUNTING STANDARDS	NOTE 2 – NEW ACCOUNTING STANDARDS In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

Leases

Leases	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
LEASES	NOTE 3 – LEASES We have operating leases for office space in three multitenant facilities with lease terms greater than 12 months, which are recorded as assets and liabilities on our balance sheet. These leases include our corporate headquarters, located in Rochester, Michigan, a customer service facility in Cranbury, New Jersey, and a technical facility in Zagreb, Croatia. Certain leases contain renewal options and for the headquarters lease, we have assumed renewal. Lease-related assets, or right-of-use assets, are recognized at the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs, and lease incentives received. Lease-related liabilities are recognized at the present value of the remaining contractual fixed lease payments, discounted using our incremental borrowing rate. Amortization of the right of use assets is recognized as non-cash lease expense on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. Short term lease costs include month to month leases in shared office space facilities, such as WeWork, or similar locations. For the three months ended March 31, 2021 and 2020, the Company’s lease cost consists of the following components, each of which is included in operating expenses within the Company’s condensed consolidated statements of operations: Three Months Three Months Operating lease cost $ 33,365 $ 32,814 Short-term lease cost 15,924 44,629 Total lease cost $ 49,289 $ 77,443 The table below presents the future minimum lease payments to be made under operating leases as of March 31, 2021: As of March 31, 2021 2021(a) $ 106,915 2022 104,572 2023 101,414 2024 80,742 2025 70,224 Total 463,867 Less: discount 39,439 Total lease liabilities $ 424,428 (a) For the nine month period beginning April 1, 2021. The weighted average remaining lease term at March 31, 2021 for operating leases is 4.1 years and the weighted average discount rate used in calculating the operating lease asset and liability is 4.5%. Cash paid for amounts included in the measurement of lease liabilities was $30,846 and $28,316 for the three months ending March 31, 2021 and 2020, respectively. For the three months ended March 31, 2021 and 2020, payments on lease obligations were $35,657 and $34,416, respectively, and amortization on the right of use assets was $29,859 and $28,019, respectively.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2021
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	NOTE 4 – STOCKHOLDERS’ EQUITY During the quarter ended March 31, 2021, in an underwritten primary offering, we issued 1,523,750 shares of our common stock for gross proceeds of $75,425,625. In connection with this transaction, we incurred equity issuance costs of $4,754,089 related to payments to the underwriter, advisors and legal fees associated with the transaction, resulting in net proceeds to the Company of $70,671,536. During the quarters ended March 31, 2021 and 2020, we issued 2,695 and 11,136 shares, respectively, of our common stock to our independent directors in connection with our Director Compensation Plan. These shares were valued at $124,994 and $100,000 at March 31, 2021 and 2020, respectively. During the quarter ended March 31, 2021, we issued a total of 510,803 shares of our common stock and received total proceeds of $1,120,011 in connection with the exercise of stock options under our 2013 Incentive Plan. A total of 368,329 shares were issued in a cashless transaction related to 394,739 expiring options using the net settled method whereby 26,410 options were used to pay the purchase price. The remaining 116,064 shares issued in connection with the exercise of options were all issued for cash. During the quarter ended March 31, 2020, we issued 35,032 shares of our common stock and received proceeds of $112,152 in connection with the exercise of stock options under our 2013 Incentive Plan.

Share Based Payments _ Options

Share Based Payments – Options and Restricted Stock	3 Months Ended
	Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
SHARE BASED PAYMENTS – OPTIONS AND RESTRICTED STOCK	NOTE 5 – SHARE BASED PAYMENTS – OPTIONS AND RESTRICTED STOCK We use the fair value method to account for stock-based compensation. We recorded $391,318 and $547,828 in compensation expense in the three months ended March 31, 2021 and 2020, respectively, related to options issued under our 2013 Incentive Plan. This includes expense related to options issued in prior years for which the requisite service period for those options includes the current period as well as options issued in the current period. The fair value of these instruments was calculated using the Black-Scholes option pricing model. There is $4,929,984 of remaining expense related to unvested options to be recognized in the future over a weighted average period of 2.6 years. The total intrinsic value of outstanding options at March 31, 2021 was $41,423,990. In addition to the grants to Directors described in Note 4, we also recorded $190,841 and $206,684 in compensation expense related to restricted stock awards that vest over time in the three months ended March 31, 2021 and 2020, respectively. There is $2,797,682 of remaining expense related to unvested restricted stock awards to be recognized in the future over a weighted average period of 3.6 years.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
NET LOSS PER SHARE	NOTE 6 – NET LOSS PER SHARE The following table sets forth the computation of basic and diluted net loss per share. Three Months Ended 2021 2020 Numerator Net Loss $ (637,377 ) $ (2,203,931 ) Denominator Weighted average shares outstanding used in computing net loss per share Basic 16,101,837 14,609,499 Effect of dilutive stock options, warrants, and stock grants - - Diluted 16,101,837 14,609,499 Net Loss per share Basic $ (0.04 ) $ (0.15 ) Diluted $ (0.04 ) $ (0.15 ) No calculation of diluted earnings per share is included for 2021 or 2020 as the effect of the calculation would be antidilutive. The number of common shares potentially issuable upon the exercise of certain options that were excluded from the diluted loss per common share calculation in 2021 was 846,441 related to options, and 137,304 related to restricted stock, for a total of 983,745 shares. The number of common shares potentially issuable upon the exercise of certain options that were excluded from the diluted loss per common share calculation in 2020 was 779,670 related to options, and 174,176 related to restricted stock, for a total of 953,846 shares.

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	NOTE 7 – CONTINGENCIES Litigation The Company is not currently involved in any legal proceedings.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 8 – SUBSEQUENT EVENTS In April 2021, the Company issued 19,664 shares and received proceeds of $167,729 in connection with the exercise of options. In accordance with ASC 855-10, we have analyzed our operations subsequent to March 31, 2021 through the date these financial statements were issued and have determined that we do not have any material subsequent events to disclose or recognize in these financial statements.

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
The Schedule of Company’s lease cost	Three Months Three Months Operating lease cost $ 33,365 $ 32,814 Short-term lease cost 15,924 44,629 Total lease cost $ 49,289 $ 77,443
The Schedule of future minimum lease payments to be made under operating leases	As of March 31, 2021 2021(a) $ 106,915 2022 104,572 2023 101,414 2024 80,742 2025 70,224 Total 463,867 Less: discount 39,439 Total lease liabilities $ 424,428 (a) For the nine month period beginning April 1, 2021.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Schedule of basic and diluted net income (loss) per share	Three Months Ended 2021 2020 Numerator Net Loss $ (637,377 ) $ (2,203,931 ) Denominator Weighted average shares outstanding used in computing net loss per share Basic 16,101,837 14,609,499 Effect of dilutive stock options, warrants, and stock grants - - Diluted 16,101,837 14,609,499 Net Loss per share Basic $ (0.04 ) $ (0.15 ) Diluted $ (0.04 ) $ (0.15 )

Leases (Details)

Leases (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Weighted average remaining lease term	4 years 36 days
Weighted average discount rate	4.50%
Measurement of lease liabilities	$ 30,846	$ 28,316
Payments on lease obligations	35,657	34,416
Amortization right of use assets.	$ 29,859	$ 28,019

Leases (Details) - Schedule of

Leases (Details) - Schedule of Company’s lease cost - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Schedule of Company’s lease cost [Abstract]
Operating lease cost	$ 33,365	$ 32,814
Short-term lease cost	15,924	44,629
Total lease cost	$ 49,289	$ 77,443

Leases (Details) - Schedule o_2

Leases (Details) - Schedule of future minimum lease payments	Mar. 31, 2021USD ($)
Schedule of future minimum lease payments [Abstract]
2021(a)	$ 106,915	[1]
2022	104,572
2023	101,414
2024	80,742
2025	70,224
Total	463,867
Less: discount	39,439
Total lease liabilities	$ 424,428
[1]	For the nine month period beginning April 1, 2021.

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Stockholders' Equity (Details) [Line Items]
Payments to advisors and legal fees (in Dollars)	$ 4,754,089
Issuance of common stock exercise value (in Dollars)	$ 1,120,011
Issuance of common share	510,803
Shares issued	368,329
Cashless transaction	394,739
Stock options, shares	26,410
Directors [Member]
Stockholders' Equity (Details) [Line Items]
Compensation plan issuance of shares	2,695	11,136
RMDY Health, Inc. [Member]
Stockholders' Equity (Details) [Line Items]
Shares of common stock issued	35,032
Shares issued	116,064
Shares of common stock issued, value (in Dollars)	$ 112,152
Legal Fees [Member]
Stockholders' Equity (Details) [Line Items]
Net proceeds issuance of common stock (in Dollars)	$ 70,671,536
Private Transaction [Member]
Stockholders' Equity (Details) [Line Items]
Shares of common stock issued	1,523,750
Gross proceeds of common stock amount (in Dollars)	$ 75,425,625
Director [Member]
Stockholders' Equity (Details) [Line Items]
Issuance of common stock exercise value (in Dollars)	$ 124,994	$ 100,000

Share Based Payments _ Option_2

Share Based Payments – Options and Restricted Stock (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share Based Payments – Options and Restricted Stock (Details) [Line Items]
Expense remaining to be recognized related to unvested options	$ 4,929,984
Weighted average contractual life	2 years 219 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 41,423,990
Stock Compensation Plan [Member]
Share Based Payments – Options and Restricted Stock (Details) [Line Items]
Stock compensation recognized expense	391,318	$ 547,828
Restricted Stock Awards [Member]
Share Based Payments – Options and Restricted Stock (Details) [Line Items]
Stock compensation recognized expense	190,841	$ 206,684
Expense remaining to be recognized related to unvested options	$ 2,797,682
Weighted average contractual life	3 years 219 days

Net Loss Per Share (Details)

Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net Loss Per Share (Details) [Line Items]
Diluted loss per common share	983,745	953,846
Equity Option [Member]
Net Loss Per Share (Details) [Line Items]
Diluted loss per common share	846,441	779,670
Restricted Stock [Member]
Net Loss Per Share (Details) [Line Items]
Diluted loss per common share	137,304	174,176

Net Loss Per Share (Details) -

Net Loss Per Share (Details) - Schedule of basic and diluted net income (loss) per share - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Numerator
Net Loss (in Dollars)	$ (637,377)	$ (2,203,931)
Weighted average shares outstanding used in computing net loss per share
Basic	16,101,837	14,609,499
Effect of dilutive stock options, warrants, and stock grants
Diluted	16,101,837	14,609,499
Net Loss per share
Basic (in Dollars per share)	$ (0.04)	$ (0.15)
Diluted (in Dollars per share)	$ (0.04)	$ (0.15)

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member]	1 Months Ended
	Apr. 30, 2021USD ($)shares
Subsequent Events (Details) [Line Items]
Issued shares of common stock (in Shares) | shares	19,664
Proceeds from exercise of options | $	$ 167,729