(2) Includes an impairment charge for royalty contracts resulting in $0.8 million and $0.9 million of expense for the three months ended June 30, 2019 and 2018, respectively, and $1.0 million and $1.8 million of expense for the six months ended June 30, 2019 and 2018, respectively. Includes a non-recurring adjustment for a change in estimated legal expenses resulting in $2.0 million of income for the six months ended June 30, 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 June 30, | Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Net (loss) income | $ | (3,120 | ) | $ | (1,080 | ) | $ | 9,899 | $ | 23,604 | ||||||
| Income tax (benefit) expense | (167 | ) | 1,386 | 3,921 | 3,732 | |||||||||||
| Stock-based compensation expense | 2,080 | 434 | 3,292 | 650 | ||||||||||||
| Interest expense | 590 | 45 | 860 | 61 | ||||||||||||
| Interest income and other (1) | 508 | 536 | 709 | (719 | ) | |||||||||||
| Depreciation and amortization | 5,274 | 3,982 | 10,468 | 7,525 | ||||||||||||
| Adjusted EBITDA | 5,165 | 5,303 | 29,149 | 34,853 | ||||||||||||
| Acquisition related deferred revenue (2) | 2,250 | — | 4,500 | — | ||||||||||||
| Modified Adjusted EBITDA | $ | 7,415 | $ | 5,303 | $ | 33,649 | $ | 34,853 | ||||||||
