3. We, a company that leases office spaces, announces that Net Income is not the best measure of the return on its office spaces. For example, in a recent document to future bondholders it defines the Community Adjusted EBITDA: as a way analysing [sic] the core operating performance of our We locations, inclusive of community support functions but excluding the impact of general and administrative expenses, which are not incurred at the location level and do not relate directly to the operation of our communities. Below, the table presents the GAAP EBITDA Reconciliation (a) According to the staff from We, why do you add stock-based compensation? (5 points) (b) In offices, do you think that depreciation is not an important expense? (5 points) (c) As a shareholder, do you prefer to work with EBITDA or cash flows statements? (5 points) GAAP EBITDA Reconciliation \begin{tabular}{|c|c|c|} \hline($M) & YTo'18 & YTD' 17 \\ \hline Net loss & ($1,220) & ($322) \\ \hline Income tax (benefit) provision & (1) & (0) \\ \hline Interest and other (ncome) expenses & 95 & (102 \\ \hline Depreciation and amortization & 215 & 111 \\ \hline Adjustments for impact of straight-lining rent expense [1] & 384 & 182 \\ \hline Stock-based compensation expense & 46 & 18 \\ \hline Stock-based payments for services rendered by consultants & 13 & 5 \\ \hline Change in fair value of contingent consideration liabilities paid in stock (2) & 53 & - \\ \hline Adjusted EBITDA & (416) & (108) \\ \hline Other revenue (3) & (78) & (8) \\ \hline Other operating expenses 4 & 70 & - \\ \hline Sales and marketing & 244 & 82 \\ \hline Growth and new market development & 224 & 62 \\ \hline Pre-opening community expenses & 61 & 16 \\ \hline Generaland administrative expenses & 217 & 117 \\ \hline Community Adjusted EBITDA & 323 & 161 \\ \hline Other non-tenancy operating expenses & 351 & 176 \\ \hline Management fee income & (2) & - \\ \hline Location Contribution & $672 & $336 \\ \hline \end{tabular}