| (1) | Included in 2020 are a) $1.0 million of proceeds from settlements related to a historical acquisition for both the three and nine months ended September 30, 2020, and b) $0.6 million of severance expense for the nine months ended September 30, 2020.
Included in 2019 are a) nonrecurring severance expenses of $0.4 million and nonrecurring acquisition related costs of $0.6 million for both the three and nine months ended September 30, 2019, and b) impairment charges for royalty contracts of $1.0 million for the nine months ended September 30, 2019. |
The following table provides a reconciliation of Free Cash Flow to net cash provided by operating activities, the most comparable GAAP financial measure:
| (Unaudited) | |||||||||||||||
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, | ||||||||||||||
| (in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||
| Net cash (used in) provided by operating activities | $ | (6,022 | ) | $ | (1,863 | ) | $ | 27,379 | $ | 30,005 | |||||
| Capital expenditures | (1,476 | ) | (1,453 | ) | (4,006 | ) | (8,120 | ) | |||||||
| Free cash flow | $ | (7,498 | ) | $ | (3,316 | ) | $ | 23,373 | $ | 21,885 | |||||
Business Outlook
The following table provides a reconciliation of projected Non-GAAP net (loss) income to projected net loss, the most comparable GAAP financial measure:
| (Unaudited) | |||||||||||||||
|
Three Months Ending
December 31, 2020 |
Year Ending
December 31, 2020 | ||||||||||||||
| (in thousands) | Low | High | Low | High | |||||||||||
| Net loss | $ | (13,300 | ) | $ | (11,300 | ) | $ | (26,600 | ) | $ | (24,600 | ) | |||
| Stock-based compensation expense | 7,200 | 7,200 | 21,100 | 21,100 | |||||||||||
| Amortization of intangible assets | 4,400 | 4,400 | 15,800 | 15,800 | |||||||||||
| Special adjustments | — | — | (400 | ) | (400 | ) | |||||||||
| Income tax effect of non-GAAP adjustments | (400 | ) | (400 | ) | (1,300 | ) | (1,300 | ) | |||||||
| Non-GAAP net (loss) income | $ | (2,100 | ) | $ | (100 | ) | $ | 8,600 | $ | 10,600 | |||||
