M5-16. Non-GAAP Disclosure OptimizeRx provides digital health messaging via electronic health records to provide a direct channel for pharmaceutical companies to communicate with healthcare providers and patients. The company reported the following in its 2018 earnings release. Reconciliation of NonGAAP to GAAP Financial Measures For the Three Months Ended Dec. 31, 2018 For the Twelve Months Ended Dec. 31, 2018 Net income (loss) . . . . . . . . . . . . . . . $(109,914) $ 226,344 Depreciation and amortization . . . . . 153,085 316,502 Stockbased compensation . . . . . . . 798,866 2,520,852 Non GAAP net income . . . . . . . . . . . $ 842,037 $3,063,698 a. Explain in plain language the two adjustments that OptimizeRx makes to arrive at non-GAAP net income. b. How did the adjustments affect non-GAAP net income for the fiscal quarter ended December 31, 2018? For the 2018 fiscal year? Are these effects significant?

Non-GAAP Disclosure OptimizeRx provides digital health messaging via electronic health records to provide a direct channel for pharmaceutical companies to communicate with healthcare providers and patients. The company reported the following in its 2018 earnings release. a. Explain in plain language the two adjustments that OptimizeRx makes to arrive at non-GAAP net income. b. How did the adjustments affect non-GAAP net income for the fiscal quarter ended December 31 , 2018 ? For the 2018 ficmal vear? Are these effects significant