(2) Includes a) nonrecurring severance expenses of $0.4 million and nonrecurring acquisition related costs of $0.6 million, for the twelve months ended December 31, 2019, and b) an impairment charge for royalty contracts resulting in $1.0 million of expenses for the twelve ended December 31, 2019.
Includes a) nonrecurring costs from the acquisition of Datawatch of $10.4 million for the three and twelve months ended December 31, 2018, b) a gain on the sale of a building of $4.4 million for the twelve months ended December 31, 2018, b) an impairment charge for royalty contracts and trade names resulting in $0.2 million and $2.8 million for the three and twelve months ended December 31, 2018, respectively and c) a non-recurring adjustment for a change in estimated legal expenses resulting in $2.0 million of income for the twelve months ended December 31, 2018.
The following table provides a reconciliation of Adjusted EBITDA and Modified Adjusted EBITDA to net (loss) income, the most comparable GAAP financial measure:
| (Unaudited) | ||||||||||||||||
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, | |||||||||||||||
| (in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Net (loss) income | $ | (1,502 | ) | $ | (9,003 | ) | $ | (7,542 | ) | $ | 15,535 | |||||
| Income tax expense | 3,715 | 5,872 | 10,930 | 11,489 | ||||||||||||
| Stock-based compensation expense | 2,944 | 2,126 | 8,528 | 3,339 | ||||||||||||
| Interest expense | 2,785 | 108 | 6,371 | 200 | ||||||||||||
| Interest income and other (1) | (893 | ) | 9,986 | (260 | ) | 4,883 | ||||||||||
| Depreciation and amortization | 5,686 | 3,839 | 21,522 | 14,734 | ||||||||||||
| Adjusted EBITDA | 12,735 | 12,928 | 39,549 | 50,180 | ||||||||||||
| Acquisition related deferred revenue (2) | 2,250 | — | 9,000 | — | ||||||||||||
| Modified Adjusted EBITDA | $ | 14,985 | $ | 12,928 | $ | 48,549 | $ | 50,180 | ||||||||
(1) Includes a) nonrecurring severance expenses of $0.4 million and nonrecurring acquisition related costs of $0.6 million, for the twelve months ended December 31, 2019, and b) impairment charges for royalty contracts resulting in $1.0 million of expense for the twelve months ended December 31, 2019.
