Mazor Robotics Ltd.

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

(U.S. Dollars in thousands, except per share data)

(UNAUDITED)

Nine months period

Three months period

ended September 30,

ended September 30,

2018

2017

2018

2017

GAAP gross profit

$

21,248

$

29,903

$

4,775

$

11,604

Amortization of intangible assets

249

250

84

85

Share-based payments

480

248

153

140

Non-GAAP gross profit

$

21,977

$

30,401

$

5,012

$

11,829

GAAP gross profit as percentage of revenues

65.3%

47.3%

62.3%

Non-GAAP gross profit as percentage of revenues

56.6%

66.4%

49.7%

63.5%

GAAP operating expenses

$

44,057

$

43,640

$

22,258

$

15,740

Share-based payments:

   Research and development

$

1,300

$

641

$

463

$

289

   Selling and marketing

$

2,032

$

2,363

$

660

$

1,512

   General and administrative

$

1,787

$

1,723

$

420

$

612

Merger agreement costs

$

10,800

$

-

$

10,800

$

-

Non-GAAP operating expenses

$

28,138

$

38,913

$

9,915

$

13,327

GAAP operating loss

$

$

(13,737)

$

(17,483)

$

(4,136)

Non-GAAP operating loss

$

$

(8,512)

$

(4,903)

$

(1,498)

GAAP net loss

$

(22,061)

$

(12,856)

$

(16,943)

$

(3,948)

Share-based payments

$

5,599

$

4,975

$

1,696

$

2,553

Amortization of intangible assets

$

249

$

250

$

84

$

85

Merger agreement costs

$

10,800

$

-

$

10,800

$

-

Non-GAAP net loss

$

(5,413)

$

(7,631)

$

(4,363)

$

(1,310)

GAAP basic and diluted loss per share

$

(0.42)

$

(0.27)

$

(0.32)

$

(0.08)

Non-GAAP basic and diluted loss per share

$

(0.10)

$

(0.16)

$

(0.08)

$

(0.03)