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No. of Recommendations: 1
Let's resort to bookkeeping. Debits and Credits. And let's run an example.

Try again, but consider two things.

1. Don't wave away the granting of the option, since that is exactly the thing which is being recorded as an expense which the non-GAAP figure omits.

2. There *is* cash when the option is exercised. An option is a right to purchase so many shares at such and such a price. The expectation is that the price of the option will be significantly below market price at the time the option is exercised. But, the employee does have to purchase the shares from the company.
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