We define Adjusted EBITDA as GAAP net (loss) income adjusted to exclude: (1) interest expense, (2) interest income, (3) provision (benefit) for income taxes, (4) depreciation and amortization, (5) stock‑based expense from options and warrants and (6) certain other items management believes affect the comparability of operating results. Please see "Adjusted EBITDA" below for more information and for a reconciliation of Adjusted EBITDA to net (loss) income, the most directly comparable financial measure calculated and presented in accordance with GAAP.
|Table 1. Reconciliation of Net (Loss) Income to Adjusted EBITDA|
|For the three months and year ended December 31, 2012 and 2011|
|Three months ended||Twelve months ended|
|December 31,||December 31,|
|ADJUSTED EBITDA:||US$ Millions|
|Net (loss) income||$(0.1)||$1.8||$(4.5)||$2.4|
|Interest and other expense (income)||0.0||0.0||0.0||0.0|
|(Benefit) provision for income taxes||(0.1)||0.2||0.2||0.3|
|Depreciation and amortization||0.8||0.6||2.8||2.4|
|Expensing of deferred IPO costs(1)||0.0||0.0||2.6||0.0|
|Acquisition deal costs||0.0||0.0||0.1||0.0|
|Convertible debt prepayment fee(2)||0.0||0.0||0.0||0.6|
|Derecognition of note payable(3)||0.0||0.0||0.0||(0.7)|
|Adjusted EBITDA (non-GAAP)||$0.9||$2.7||$2.4||$5.9|
(1) In July 2011 we filed our first registration statement on Form S-1. From July 2011 through August 2012 we continued to update and amend Form S-1. During the quarter ended September 30, 2012 we determined that it is likely that our IPO will be postponed for a period in excess of 90 days and as a result deemed it to be an aborted offering in accordance with the guidance set forth in ASC 340-10-S99-1. For the three months ending September 30, 2012, we expensed previously deferred IPO costs of $2.3 million associated with our registration statement on Form S-1 as well as any IPO costs incurred in the third quarter to selling, general and administrative expenses. The total amount of the expense for the year was $2.6 million.