16. INCOME TAXES
The provision for (benefit from) income taxes on income from continuing operations before income taxes consists of the following (in thousands):

                           | 2019    | 2018     | 2017
-------------------------- | ------- | -------- | --------
Currently payable:         |         |          |
Federal                    | $1,995  | $1,163   | $5,617
State                      | 557     | 114      | 1,022
Foreign                    | 13,448  | 107,487  | 116,022
                           | 16,000  | 108,764  | 122,661
Deferred and other:        |         |          |
Federal                    | (407)   | 26,334   | 1,413
State                      | 516     | (489)    | (153)
Foreign                    | (9,886) | (20,414) | (30,510)
                           | (9,777) | 5,431    | (29,250)
Provision for income taxes | $6,223  | $114,195 | $93,411

. INCOME TAXES
 provision
 2018
 payable
 Federal $1,995 $1,163 $5,617
 State
 13,448 107,487 116,022
 16,000 108,764 122,661
 Deferred
 Federal 26,334 1,413
 State
 Foreign (9,886) (20,414) (30,510)
 (9,777 5,431 (29,250
 taxes $6,223 $114,195 $93,411


Option Exercises and Stock Vested
The table below sets forth information concerning the number of shares acquired on exercise of option awards and vesting of stock awards in 2019 and the value realized upon vesting by such officers.
(1) Amounts realized from the vesting of stock awards are calculated by multiplying the number of shares that vested by the fair market value of a share of our common stock on the vesting date.

                | Option Awards                             |                                | Stock Awards                             |
--------------- | ----------------------------------------- | ------------------------------ | ---------------------------------------- | -----------------------------
Name            | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($)
Jon Kirchner    | —                                         | —                              | 153,090                                  | 3,428,285
Robert Andersen | —                                         | —                              | 24,500                                   | 578,806
Paul Davis      | —                                         | —                              | 20,500                                   | 482,680
Murali Dharan   | —                                         | —                              | 15,000                                   | 330,120
Geir Skaaden    | —                                         | —                              | 21,100                                   | 500,804

Option Exercises Stock Vested
 table shares acquired option awards vesting stock 2019 value realized vesting.
 Amounts vesting stock calculated shares fair market value common stock vesting date.
 Option Awards Stock Awards
 Shares Acquired Value Realized Vesting
 Jon Kirchner 153,090 3,428,285
 Robert Andersen 24,500  578,806
 Paul Davis 20,500 482,680
 Murali Dharan 15,000  330,120
 Geir Skaaden 21,100 500,804


A. Operating Results
YEAR ENDED DECEMBER 31, 2019 COMPARED TO YEAR ENDED DECEMBER 31, 2018
Management believes that net voyage revenue, a non-GAAP financial measure, provides additional meaningful information because it enables us to compare the profitability of our vessels which are employed under bareboat charters, spot related time charters and spot charters. Net voyage revenues divided by the number of days on the charter provides the Time Charter Equivalent (TCE) Rate. Net voyage revenues and TCE rates are widely used by investors and analysts in the tanker shipping industry for comparing the financial performance of companies and for preparing industry averages. We believe that our method of calculating net voyage revenue is consistent with industry standards. The table below reconciles our net voyage revenues to voyage revenues.

                                      |           | Years Ended December 31,     |
------------------------------------- | --------- | ---------------------------- | ---------
All figures in USD ‘000               | 2019      | 2018                         | Variance
Voyage Revenue                        | 317,220   | 289,016                      | 9.8%
Voyage Expenses                       | (141,770) | (165,012)                    | (14.1%)
Vessel Operating Expenses             | (66,033)  | (80,411)                     | (17.9%)
Impairment Loss on Vessels            | -         | (2,168)                      | N/A
Impairment Loss on Goodwill           | -         | -                            | N/A
Loss from Disposal of Vessels         | -         | (6,619)                      | N/A
General and Administrative Expenses   | (13,481)  | (12,727)                     | 5.9%
Depreciation Expenses                 | (63,965)  | (60,695)                     | 5.4%
Net Operating (Loss) Income           | 31,971    | (38,616)                     | (182.8%)
Interest Income                       | 298       | 334                          | (10.8%)
Interest Expenses                     | (38,390)  | (34,549)                     | 11.1%
Other Financial Expenses              | (4,231)   | (14,808)                     | (71.4%)
Equity Loss from Associate            | -         | (7,667)                      | N/A
Net (Loss) Income                     | (10,352)  | (95,306)                     | (89.1%)

. Operating Results
 ENDED 31, 2019 2018
 net voyage revenue non-GAAP profitability bareboat. revenues days) Rate. used investors analysts financial performance industry averages. consistent industry standards. table reconciles net voyage revenues.
 Years Ended December 31,
 figures USD 2019 2018
 Voyage Revenue 317,220 289,016 9. 8%
 Voyage Expenses (141,770) (165,012).
 Vessel Operating Expenses (66,033) (80,411) (17. 9%)
 Impairment Loss Vessels
 Goodwill
 Loss Disposal Vessels
 General Administrative Expenses (13,481) (12,727).
 Depreciation Expenses (63,965) (60,695.
 Net Operating (Loss) Income (38,616).
 Interest Income.
 Expenses (38,390 (34,549).
 Other Financial Expenses (4,231) (14,808. 4%
Equity Loss
 Net Income (10,352),306).


A reconciliation of the gross unrecognized tax benefit is as follows (in thousands):
The unrecognized tax benefits, if recognized, would not impact the Company's effective tax rate as the recognition of these tax benefits would be offset by changes in the Company's valuation allowance. The Company does not believe there will be any material changes in its unrecognized tax benefits over the next twelve months.
As of December 31, 2019 and 2018, the Company had no accrued interest or penalties related to uncertain tax positions. Due to the Company’s historical loss position, all tax years from inception through December 31, 2019 remain open due to unutilized net operating losses.
The Company files income tax returns in the United States and various states and foreign jurisdictions and is subject to examination by various taxing authorities including major jurisdiction like the United States. As such, all its net operating loss and research credit carryforwards that may be used in future years are subject to adjustment, if and when utilized.
Utilization of the net operating loss carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before their utilization.

                                                       | Year Ended December 31, |        |
------------------------------------------------------ | ----------------------- | ------ | ------
                                                       | 2019                    | 2018   | 2017
Unrecognized tax benefit - beginning balance           | $8,217                  | $7,527 | $6,447
Increases for tax positions taken in prior years  —    | —                       | —      | 16
Decreases for tax positions taken in prior years  —    | __                      | (242)  | —
Increases for tax positions taken in current year  623 | 623                     | 932    | 1,064
Unrecognized tax benefit - ending balance              | $8,840                  | $8,217 | $7,527

reconciliation unrecognized tax benefit
 tax benefits impact Company tax rate offset changes valuation allowance. material changes tax benefits next twelve months.
 December 31, 2019 2018 no accrued interest penalties uncertain tax positions. loss tax years December 31, 2019 open due unutilized net operating losses.
 files income tax returns United States states foreign jurisdictions subject examination taxing authorities. net operating loss research credit carryforwards future subject adjustment.
 Utilization carryforwards credits annual limitation ownership change limitations Internal Revenue Code 1986. limitation expiration losses credits before utilization.
 Ended December 31,
 Unrecognized tax benefit beginning balance $8,217 $7,527
 Increases tax positions prior years
 Decreases
 Increases current year
 Unrecognized tax benefit ending balance $8,840 $8,217 $7,527


DEPRECIATION AND AMORTIZATION
1 See “Accounting Policies” for more information.
1 See “Accounting Policies” for more information. Total depreciation and amortization increased this year primarily as a result of depreciation of right-of-use assets due to our adoption of IFRS 16 on January 1, 2019 and higher capital expenditures over the past several years. See “Capital Expenditures” for more information.

(In millions of dollars)                                                 | Years ended December 31 |       |
------------------------------------------------------------------------ | ----------------------- | ----- | ----
                                                                         | 2019                    | 2018  | %Chg
Depreciation                                                             | 2,297                   | 2,174 | 6
Amortization                                                             | 16                      | 37    | (57)
Depreciation and amortization before depreciation of right-of-use assets | 2,313                   | 2,211 | 5
Depreciation of right-of-use assets 1                                    | 175                     | -     | n/m
Total depreciation and amortization                                      | 2,488                   | 2,211 | 13

DEPRECIATION AMORTIZATION
.
. depreciation amortization increased right-of-use assets IFRS 16 January 2019 higher capital expenditures.
 millions Years December 31
 2018
 Depreciation 2,297  2,174  6
 Amortization 16 37
 Depreciation amortization before right-use assets 2,313  2,211  5
 Depreciation 175
 Total depreciation amortization 2,488  2,211


Selling, General and Administrative
Selling, general and administrative expense decreased $13.0 million to $88.8 million for the year ended December 31, 2019, as compared to $101.8 million for the year ended December 31, 2018. The decrease was primarily due to a decrease in intangible asset amortization of $8.9 million as certain assets reached the end of their useful lives, as well as decreases in payroll-related expense of $1.7 million due to lower headcount, professional fees of $1.3 million, outside services of $0.5 million, and travel-related expenses of $0.3 million.
We expect selling, general and administrative expenses to remain relatively flat in the near-term; however, our expenses may increase in the future as we expand our sales and marketing organization to enable market expansion.

                                    | Year Ended December 31, |                        | % Change
----------------------------------- | ----------------------- | ---------------------- | --------
                                    | 2019                    | 2018                   | 2019
                                    |                         | (dollars in thousands) |
Selling, general and administrative | $88,762                 | $101,789               | (13)%
% of net revenue                    | 28%                     | 26%                    |

Selling General Administrative
 expense decreased $13. million $88. million December 31, 2019 $101. million 2018. decrease due intangible asset amortization $8. million payroll-related expense $1. 7 million lower headcount professional fees $1. million outside services $0. 5 million travel-related expenses $0. million.
 expect expenses flat increase sales marketing market expansion.
 Year Ended December 31, %
 2019
 Selling general administrative $88,762 $101,789
 net revenue 28%


GreenSky, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (United States Dollars in thousands, except per share data, unless otherwise stated)
Note 6. Property, Equipment and Software
Property, equipment and software were as follows as of the dates indicated.

                                                | December 31, |
----------------------------------------------- | ------------ | -------
                                                | 2019         | 2018
Furniture                                       | $2,907       | $2,813
Leasehold improvements                          | 4,902        | 4,171
Computer hardware                               | 2,494        | 2,923
Software                                        | 20,126       | 8,344
Total property, equipment and software, at cost | 30,429       | 18,251
Less: accumulated depreciation                  | (5,701)      | (5,462)
Less: accumulated amortization                  | (6,419)      | (2,557)
Total property, equipment and software, net     | $18,309      | $10,232

GreenSky. FINANCIAL STATEMENTS States Dollars share
. Property Equipment Software
.
 December 31,
 Furniture $2,907 $2,813
 Leasehold improvements 4,171
 Computer hardware 2,494
 Software 20,126 8,344
 property 30,429 18,251
 depreciation (5,462
 amortization (6,419) (2,557)
 $18,309 $10,232


Activity under our stock option plans is summarized as follows:
(a) Weighted-average exercise price
(b) Weighted-average contractual life remaining
The total aggregate intrinsic value of options exercised is $2,149, $1,724, and $1,944 for fiscal years ended March 31, 2017, 2018, and 2019, respectively.

                              | Number of Shares | Average Price (a) | Average Life (years) (b) | Aggregate Intrinsic Value
----------------------------- | ---------------- | ----------------- | ------------------------ | -------------------------
Outstanding at March 31, 2018 | 1,894            | $12.90            | -                        | -
Options granted               | -                | -                 | -                        | -
Options exercised             | (326)            | 13.11             | -                        | $1,944
Options cancelled/forfeited   | (122)            | 13.22             | -                        | 295
Outstanding at March 31, 2019 | 1,446            | $12.82            | 3.29                     | $6,528
Exercisable at March 31, 2019 | 1,347            | $12.70            | 3.08                     | $6,253

stock option plans
 Weighted-average exercise price
 contractual life
 value options $2,149 $1,724 $1,944 fiscal years 2017 2018 2019.
 Shares Average Price Life Aggregate Intrinsic Value
 Outstanding March 31, 2018 1,894 $12.
 Options granted
 exercised. $1,944
 cancelled/forfeited.
 March 31, 2019 1,446 $12. $6,528
 March 31, 2019 1,347 $12. $6,253


2.1 Segment information
Segment information is based on the information that management uses to make decisions about operating matters and allows users to review operations through the eyes of management. We present our reportable segments and measure our segment results on continuing operations basis, i.e. the same basis as our internal management reporting structure.
We have four reportable segments which offer a service that includes comparison, purchase support and lead referrals across:
• Health (private health insurance),
• Life and General Insurance,
• Energy and Telecommunications, and
• Other, predominately offering financial service products including home loans in Australia and Asia.
In the current year, unallocated corporate costs include costs associated with the business restructure and other one-off transactions.
1 Non-current assets other than financial instruments and deferred tax assets.

                    | AUSTRALIA | ASIA   | TOTAL
------------------- | --------- | ------ | -------
                    | $’000     | $’000  | $’000
30 June 2019        |           |        |
Revenue             | 149,295   | 4,864  | 154,159
Non-current assets1 | 44,061    | 15,899 | 59,960
30 June 2018        |           |        |
Revenue             | 174,776   | 2,155  | 176,931
Non-current assets1 | 49,235    | 15,245 | 64,480

. Segment information
 based management. present reportable segments measure results.
 four segments comparison purchase support lead referrals
 Health
 Life General Insurance
 Energy Telecommunications
 Other financial service products home loans Australia Asia.
 unallocated corporate costs business restructure one-off transactions.
 Non-current assets financial instruments deferred tax.
 AUSTRALIA ASIA
 30 June 2019
 Revenue 149,295 4,864 154,159
 Non-current 44,061 15,899 59,960
 30 June 2018
 Revenue 174,776 2,155 176,931
-current 49,235 15,245 64,480


Certain information regarding our initial distribution rights to films initially released in the three fiscal years 2019, 2018 and 2017 is set forth below:
We distribute content in over 50 countries through our own offices located in key strategic locations across the globe. In response to Indian cinemas’ continued growth in popularity across the world, especially in non-English speaking markets, including Germany, Poland, Russia, Southeast Asia and Arabic speaking countries, we offer dubbed and/or subtitled content in over 25 different languages.
In addition to our internal distribution resources, our global distribution network includes relationships with distribution partners, sub-distributors, producers, directors and prominent figures within the Indian film industry and distribution arena.

                                       |      | Year ended March 31, |
-------------------------------------- | ---- | -------------------- | ----
                                       | 2019 | 2018                 | 2017
Global (India and International)       |      |                      |
Hindi films                            | 7    | 10                   | 8
Regional films (excluding Tamil films) | 49   | 3                    | 12
Tamil films                            | 3    | 1                    | 3
International Only                     |      |                      |
Hindi films                            | 7    | 1                    | 3
Regional films (excluding Tamil films) | —    | —                    | —
Tamil films                            | —    | —                    | 12
India Only                             |      |                      |
Hindi films                            | 1    | 3                    | 1
Regional films (excluding Tamil films) | 5    | 6                    | 5
Tamil films                            | —    | 0                    | 1
Total                                  | 72   | 24                   | 45

information initial distribution rights films 2019 2018 2017
 distribute content 50 countries offices. Indian cinemas’ growth popularity non-English markets offer dubbed subtitled content 25 languages.
 global distribution network includes relationships partners sub-distributors producers directors prominent figures Indian film industry distribution.
 Year ended March 31,
 2019 2018 2017
 Global (India International)
 Hindi films
 Regional films (excluding Tamil films 49 12
 Tamil films
 International
 Hindi films
 Regional films (excluding Tamil films
 India Only
 Hindi films
 Regional films (excluding Tamil films 6
 Tamil films
 Total 72  24


Sales and marketing expenses consist primarily of personnel expenses and costs associated with advertising, marketing events and trade shows.
Sales and marketing expenses decreased by $11.1 million during the year ended June 30, 2019 as compared to the prior fiscal year. This was primarily due to (i) a decrease in commissions expense of $6.6 million, of which approximately $8.9 million is the net result of the Company capitalizing more commission expense under Topic 606, whereas previously, under Topic 605, such costs would have been expensed as incurred, (ii) a decrease in marketing expenses of $5.7 million and (iii) a decrease in travel and communication expenses of $1.1 million. These were partially offset by (i) an increase in bad debt expense of $3.5 million as certain low dollar receivables were provided for entirely as they became aged greater than one year. Overall, our sales and marketing expenses, as a percentage of total revenues, decreased to approximately 18% from approximately 19% in the prior fiscal year.
Our sales and marketing labour resources increased by 103 employees, from 1,948 employees at June 30, 2018 to 2,051 employees at June 30, 2019.

increase (decrease)                          | Change between Fiscal increase (decrease) |
-------------------------------------------- | ----------------------------------------- | -------------
(In thousands)                               | 2019 and 2018                             | 2018 and 2017
Payroll and payroll-related benefits         | $(48)                                     | $48,717
Commissions                                  | (6,588)                                   | 16,993
Contract labour and consulting               | (871)                                     | 609
Share-based compensation                     | (752)                                     | (454)
Travel and communication                     | (1,113)                                   | 271
Marketing expenses                           | (5,742)                                   | 3,880
Facilities                                   | 808                                       | 8,373
Bad debt expense                             | 3,519                                     | 4,013
Other miscellaneous                          | (319)                                     | 2,285
Total change in sales and marketing expenses | $(11,106)                                 | $84,687

Sales marketing expenses personnel advertising events trade shows.
 decreased $11. 1 million June 30, 2019 prior. due to decrease commissions $6. 6 million $8. 9 million capitalizing commission expense under Topic 606 decrease marketing $5. 7 million travel communication $1. 1 million. offset by increase bad debt $3. 5 million low dollar receivables. sales marketing expenses decreased 18% from 19% prior fiscal year.
 labour resources increased 103 employees from 1,948 2018 to 2,051 June 2019.
 Payroll benefits $48,717
 Commissions (6,588) 16,993
 Contract labour consulting
 Share-based compensation
 Travel communication (1,113
 Marketing expenses (5,742 3,880
 Facilities 8,373
 Bad debt
 Other miscellaneous
 Total change expenses $,106 $84,687


17. Income Taxes
Income before income taxes for the Company’s domestic and foreign operations was as follows:

                           |        | Years Ended June 30, |
-------------------------- | ------ | -------------------- | -----
($ in millions)            | 2019   | 2018                 | 2017
Domestic                   | $204.2 | $140.3               | $56.0
Foreign                    | 11.8   | 19.9                 | 14.2
Income before income taxes | $216.0 | $160.2               | $70.2

. Income
 domestic foreign operations
 Years Ended June 30
$ millions 2019 2018
 Domestic $204. $140. $56.
 Foreign 11. 19. 14.
 before taxes $216. $160. $70.


7. Employee numbers and costs
The average monthly number of employees (including Executive Directors but excluding third-party contractors) employed by the Group was as follows:

                       | 2019   | 2018
---------------------- | ------ | ------
                       | Number | Number
Customer operations    | 370    | 380
Product and technology | 317    | 312
Corporate              | 115    | 130
Total                  | 802    | 822

. Employee numbers costs
 average monthly Directors contractors Group
 2019
 Customer operations 370 380
 Product technology 317 312
 Corporate 115 130
 802 822


5. Balance Sheet Components
Deferred Revenue
Deferred revenue relates to performance obligations for which payments have been received by the customer prior to revenue recognition. Deferred revenue primarily consists of deferred software, or amounts allocated to mobile dashboard and on-line apps and unspecified upgrade rights. Deferred revenue also includes deferred subscription-based services. The deferred software and deferred subscription-based service performance obligations are anticipated to be recognized over the useful life or service periods of one to eighteen months.
Changes in the total short-term and long-term deferred revenue balance were as follows (in thousands):

                                |          | December 31, |
------------------------------- | -------- | ------------ | --------
                                | 2019     | 2018         | 2017
Beginning balances              | $36,836  | $42,432      | $49,904
Deferral of revenue             | 45,040   | 40,003       | 46,193
Recognition of deferred revenue | (41,034) | (45,599)     | (53,665)
Ending balances                 | $40,842  | $36,836      | $42,432

. Balance Sheet
 Deferred Revenue
 obligations received. software mobile dashboard-line apps upgrade rights. subscription services. one to eighteen months.
 Changes short long-term deferred revenue balance
 2019 2018 2017
 Beginning balances $36,836 $42,432 $49,904
 Deferral revenue 45,040 40,003 46,193
 Recognition deferred revenue (41,034) (45,599) (53,665)
 Ending balances $40,842 $36,836 $42,432


NAVIOS MARITIME HOLDINGS INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in thousands of U.S. dollars — except share data)
NOTE 8: INTANGIBLE ASSETS/LIABILITIES OTHER THAN GOODWILL
Net Book Value of Intangible Assets other than Goodwill as at December 31, 2018
(**) During the year ended December 31, 2018, acquisition costs of $1,150 of favorable lease terms were capitalized as part of the cost of one vessel due to the exercise of the purchase option (See also Note 2(n)). As of December 31, 2018, intangible assets associated with the favorable lease terms included an amount of $31,342 associated with the favorable lease terms of certain charter out contracts of Navios Containers which were recognized as of November 30, 2018 (see Note 3). During the year ended December 31, 2017, acquisition costs of $10,398 and accumulated amortization of $7,001 of favorable lease terms were considered impaired and were written off resulting in a loss of $3,397 included in the statement of comprehensive (loss)/income within the caption of “Impairment loss/ loss on sale of vessels, net”.

                               | Acquisition Cost | Accumulated Amortization | Transfer/ Write off | Net Book Value December 31, 2018
------------------------------ | ---------------- | ------------------------ | ------------------- | --------------------------------
Trade name                     | $100,420         | $(47,966)                | $—                  | $52,454
Port terminal operating rights | 53,152           | (11,838)                 | —                   | 41,314
Customer relationships         | 35,490           | (19,520)                 | —                   | 15,970
Favorable lease terms(**)      | 32,492           | (2,143)                  | (1,150)             | 29,199
Total Intangible assets        | $221,554         | $(81,467)                | $(1,150)            | $138,937

NAVIOS MARITIME HOLDINGS. FINANCIAL STATEMENTS U. S. dollars except share data
 NOTE 8 INTANGIBLE ASSETS/LIABILITIES GOODWILL
 Net Value Assets December 31, 2018
 acquisition costs $1,150 lease vessel purchase option. intangible assets lease terms $31,342 charter contracts Navios Containers recognized November 30, 2018. December 31, 2017 acquisition costs $10,398 amortization $7,001 loss $3,397 loss sale vessels.
 Acquisition Cost Accumulated Amortization Transfer Write off Net Book Value December 31, 2018
 Trade name $100,420 $(47,966) $52,454
 Port terminal operating rights 53,152
 Customer relationships 35,490
 Favorable lease terms 32,492 (2
 Intangible assets $221,554 $138,937


Dividends and Share Repurchases
Following is a summary of the dividends and share repurchases for the fiscal years ended August 31, 2019, 2018, 2017 and 2016 (in thousands):
(1) The difference between dividends declared and dividends paid is due to dividend equivalents for unvested restricted stock units that are paid at the time the awards vest.
(2) Excludes commissions.
We currently expect to continue to declare and pay regular quarterly dividends of an amount similar to our past declarations. However, the declaration and payment of future dividends are discretionary and will be subject to determination by our Board each quarter following its review of our financial performance.
In June 2018, the Board authorized the repurchase of up to $350.0 million of our common stock. As of August 31, 2019, the total amount authorized by the Board of Directors had been repurchased.
In September 2019, the Board authorized the repurchase of up to $600.0 million of our common stock as part of a two-year capital allocation framework. From September 24, 2019 through October 14, 2019, we repurchased 874,475 shares, utilizing a total of $30.8 million of the $600.0 million authorized by the Board.

                 | Dividends Paid(1) | Share Repurchases(2) | Total
---------------- | ----------------- | -------------------- | ----------
Fiscal year 2016 | $62,436           | $148,185             | $210,621
Fiscal year 2017 | $59,959           | $306,397             | $366,356
Fiscal year 2018 | $57,833           | $450,000             | $507,833
Fiscal year 2019 | $52,004           | $350,000             | $402,004
Total            | $232,232          | $1,254,582           | $1,486,814

Dividends Share Repurchases
 summary fiscal years 2019 2018 2017 2016
 difference declared paid due unvested stock units.
 Excludes commissions.
 quarterly dividends. future dividends discretionary Board.
 June 2018 Board authorized repurchase $350. million common stock. August 31, 2019 repurchased.
 September 2019 repurchase $600. million two-year capital allocation. September 24 October 14 repurchased 874,475 shares $30. 8 million $600. million.
 Dividends Share Repurchases(2)
 2016 $62,436 $148,185 $210,621
 2017 $59,959 $306,397 $366,356
 2018 $57,833 $450,000 $507,833
 2019 $52,004 $350,000 $402,004
 $232,232 $1,254,582 $1,486,814


Stock-Based Compensation
The Company recognizes stock-based compensation expense in the consolidated statements of operations, based on the department to which the related employee reports, as follows: The Company recognizes stock-based compensation expense in the consolidated statements of operations, based on the department to which the related employee reports, as follows:
The total unrecognized compensation cost related to performance-based restricted stock units as of December 31, 2019 was $3.6 million, and the weighted average period over which these equity awards are expected to vest is 1.6 years. The total unrecognized compensation cost related to unvested stock options as of December 31, 2019 was $2.0 million, and the weighted average period over which these equity awards are expected to vest is 2.30 years.

                                    |         | Years Ended December 31, |
----------------------------------- | ------- | ------------------------ | -------
                                    | 2019    | 2018                     | 2017
                                    |         | (in thousands)           |
Cost of net revenue                 | $577    | $489                     | $332
Research and development            | 16,545  | 17,953                   | 16,190
Selling, general and administrative | 14,938  | 13,279                   | 11,016
Restructuring expense               | —       | —                        | 5,130
                                    | $32,060 | $31,721                  | $32,668

Stock-Based Compensation
 Company recognizes statements
 total unrecognized compensation cost performance-based restricted stock units December 31, 2019 $3. 6 million 1. 6 years. compensation cost unvested stock options $2. 0 million 2. 30 years.
 Years Ended December 31,
 2019 2018 2017
 thousands
 net revenue $577  $489  $332
 Research development 16,545  17,953  16,190
 Selling general administrative 14,938 13,279 11,016
 Restructuring expense 5,130
 $32,060 $31,721 $32,668


A reconciliation of the beginning and ending amounts of unrecognized tax benefits (without related interest expense) is as follows (in thousands):
Our effective income tax rates were 9.5%, (84.0)% and 9.3% for the years ended December 31, 2019, 2018 and 2017, respectively. Our effective tax rates were below the statutory rate primarily due to the tax windfall benefits from employee stockbased payment transactions, foreign derived intangible income deductions and research and development tax credits claimed, partially offset by the impact of non-deductible meal and entertainment expenses and state taxes.
We recognize a valuation allowance if, based on the weight of available evidence, both positive and negative, it is more likely than not that some portion, or all, of net deferred tax assets will not be realized. Due to the uncertainty of realization of  and development tax credits totaling $0.3 million, we established a valuation allowance of $0.3 million during the second quarter of 2019, which remained at $0.3 million as of December 31, 2019. As of December 31, 2018, based on our historical and expected future taxable earnings, we believed it was more likely than not that we would realize all of the benefit of the existing deferred tax assets. Accordingly, we did not record a valuation allowance as of December 31, 2018.
We apply guidance for uncertainty in income taxes that requires the application of a more likely than not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, this guidance permits us to recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is more likely than not to be realized upon settlement. We recorded unrecognized tax benefits of $0.6 million, $0.8 million and $1.0 million for research and development tax credits claimed during the years ended December 31, 2019, 2018 and 2017, respectively.
As of December 31, 2019 and 2018, we accrued $0.2 million and $0.1 million of total interest related to unrecognized tax benefits, respectively. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense.
We are not aware of any events that make it reasonably possible that there would be a significant change in our unrecognized tax benefits over the next twelve months. Our cumulative liability for uncertain tax positions was $3.1 million and $2.8 million as of December 31, 2019 and 2018, respectively, and if recognized, would reduce our income tax expense and the effective tax rate.
We file income tax returns in the United States and Canada. We are no longer subject to U.S. income tax examinations for years prior to 2016, with the exception that operating loss carryforwards generated prior to 2016 may be subject to tax audit adjustment. We are generally no longer subject to state and local income tax examinations by tax authorities for years prior to 2016.
As of December 31, 2019, we had federal net operating loss carryforwards of $4.9 million, which are scheduled to begin to expire in 2030. As of December 31, 2019, we had state net operating loss carryforwards of $1.7 million, which are scheduled to begin to expire in 2027. As of December 31, 2019, we had federal research and development tax credit carryforwards of $5.2 million, which are scheduled to begin to expire in 2038. As of December 31, 2019, we had state research and development tax credit carryforwards of $4.3 million, which are scheduled to begin to expire in 2021. The federal net operating loss carryforward arose in connection with the 2013 acquisition of EnergyHub. Utilization of net operating loss carryforwards may be subject to annual limitations due to ownership change limitations as provided by the Internal Revenue Code of 1986, as amended.

                                                            |        | Year Ended December 31, |
----------------------------------------------------------- | ------ | ----------------------- | ------
                                                            | 2019   | 2018                    | 2017
Beginning balance                                           | $2,801 | $1,973                  | $681
Additions based on tax positions of the current year        | 718    | 857                     | 718
Additions based on tax positions of prior year              | 18     | 147                     | 373
Decreases based on tax positions of prior year              | (253)  | —                       | —
Additions resulting from acquisitions                       | —      | —                       | 277
Decreases due to lapse of applicable statute of limitations | (219)  | (176)                   | (76)
Ending balance                                              | $3,065 | $2,801                  | $1,973

reconciliation unrecognized tax benefits interest
 effective income tax rates 9. 5%.% 9. 3% December 31, 2019 2018 2017. below statutory rate due tax windfall benefits employee payment transactions income deductions research development tax credits offset non meal entertainment expenses state taxes.
 recognize valuation allowance if deferred tax assets realized. uncertainty tax credits $0. 3 million established valuation allowance $0. 3 million second quarter 2019 remained. December 31, 2019. likely all deferred tax assets. record valuation allowance December 31,.
 guidance uncertainty more likely than not threshold uncertain tax positions. tax benefit likely settlement. recorded unrecognized tax benefits $0. 6 million. 8 million $1. 0 million for research development tax credits December 31, 2019 2018 2017.
 accrued $0. 2 million $0. 1 million interest related to unrecognized tax benefits. recognize interest penalties benefits income tax expense.
aware events change unrecognized tax benefits next twelve months. cumulative liability uncertain tax positions $3. 1 million $2. 8 million December 31, 2019 2018 if recognized reduce income tax expense effective tax rate.
 file tax returns United States Canada. no longer subject U. S. income tax examinations 2016, operating loss carryforwards 2016 subject adjustment. subject state local income tax examinations 2016.
 federal operating loss carryforwards $4. 9 million 2030. state loss carryforwards $1. 7 million 2027. federal research development tax credit carryforwards $5. 2 million 2038. state carryforwards $4. 3 million 2021. federal net operating loss carryforward arose 2013 acquisition EnergyHub. subject limitations Internal Revenue Code 1986.
 Ended December 31,
 Beginning balance $2,801 $1,973 $681
 Additions positions 718
 18 147
 Decreases (253)
Additions acquisitions
 Decreases statute (219)
 Ending balance $3,065 $2,801 $1,973


Note 3 – Net Income per Share
Reconciliation of net income per common share:

                                                            |                    | Fiscal Year Ended  |
----------------------------------------------------------- | ------------------ | ------------------ | -----------------
                                                            | December 27, 2019  | December 28, 2018  | December 29, 2017
Numerator:                                                  |                    |                    |
Net income                                                  | $24,193            | $20,402            | $14,366
Add effect of dilutive securities                           |                    |                    |
Interest on convertible notes, net of tax                   | 207                | 362                | 536
Adjusted net income                                         | $24,400            | $20,764            | $14,902
Denominator:                                                |                    |                    |
Weighted average basic common shares outstanding            | 29,532,342         | 28,703,265         | 26,118,482
Dilutive effect of stock options and unvested common shares | 211,050            | 270,520            | 68,670
Dilutive effect of convertible notes                        | 329,946            | 705,134            | 1,237,374
Weighted average diluted common shares outstanding          | 30,073,338         | 29,678,919         | 27,424,526

Income
 Fiscal Year
 December 27, 2019 28,
 income $24,193 $20,402 $14,366
 dilutive securities
 Interest convertible notes
 Adjusted income $24,400 $20,764 $14,902
 common shares 29,532,342 28,703,265 26,118,482
 stock options common shares 211,050 270,520
 convertible notes 329,946 705,134 1,237
 common shares 30,073,338 29,678,919 27,424,526


NOTE 14 – EARNINGS (LOSS) PER SHARE
Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period plus the dilutive effect of outstanding stock options and restricted stock-based awards using the treasury stock method. The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share amounts):
All outstanding stock options and restricted stock-based awards in the amount of 1.0 million and 1.2 million, respectively, were excluded from the computation of diluted earnings per share for the fiscal year ended February 28, 2017 because the effect of inclusion would be antidilutive. Shares subject to anti-dilutive stock options and restricted stock-based awards of 1.9 million and 0.2 million for the fiscal years ended February 28, 2019 and 2018, respectively, were excluded from the calculations of diluted earnings per share for the years then ended.
We have the option to pay cash, issue shares of common stock or any combination thereof for the aggregate amount due upon conversion of the Notes. It is our intent to settle the principal amount of the convertible senior notes with cash, and therefore, we use the treasury stock method for calculating any potential dilutive effect of the conversion option on diluted net income (loss) per share. From the time of the issuance of the Notes, the average market price of our common stock has been less than the initial conversion price of the Notes, and consequently no shares have been included in diluted earnings per share for the conversion value of the Notes.

                                                               |         | Year Ended February 28, |
-------------------------------------------------------------- | ------- | ----------------------- | --------
                                                               | 2019    | 2018                    | 2017
Net income (loss)                                              | $18,398 | $16,617                 | $(7,904)
Basic weighted average number of common shares outstanding     | 34,589  | 35,250                  | 35,917
Effect of stock options and restricted stock units computed on |         |                         |
treasury stock method                                          | 705     | 889                     | -
Diluted weighted average number of common shares outstanding   | 35,294  | 36,139                  | 35,917
Earnings (loss) per share:                                     |         |                         |
Basic                                                          | $0.53   | $0.47                   | $(0.22)
Diluted                                                        | $0.52   | $0.46                   | $(0.22)

(LOSS) PER SHARE
 Basic computed net income average shares. Diluted earnings income dilutive effect stock options restricted awards treasury stock method. table basic diluted earnings
 stock options restricted awards 1. 0 million 1. 2 million excluded diluted earnings fiscal year February 28, 2017 antidilutive. anti-dilutive stock options awards 1. 9 million 0. 2 million years February 28, 2019 2018 excluded diluted earnings.
 option pay cash issue shares common stock conversion Notes. settle cash treasury stock method dilutive effect conversion diluted net income. average market price common stock less than initial conversion price no shares included in diluted earnings per share conversion value.
 Ended February 28,
 2019 2018 2017
 Net income (loss) $18,398 $16,617 $(7,904)
 average common shares outstanding 34,589 35,250 35,917
stock options restricted stock units
 treasury stock method 705 889
 common shares 35,294 36,139 35,917
 Earnings per share
. 53. 47. 22
. 52. 46.


NOTE 9. GOODWILL AND INTANGIBLES
A summary of goodwill activity follows (in thousands).

Year Ended December 31        |               |
----------------------------- | ------------- | -------------
                              | 2019          | 2018
Goodwill, beginning of period | $       3,178 | $           -
Golden Ridge acquisition      | -             | 3,178
MGI acquistion                | 737           | -
Goodwill, end of period       | $3,915        | $3,178

NOTE 9. GOODWILL
 summary goodwill activity thousands.
 Ended December 31
 $ 3,178
 Golden Ridge acquisition
 MGI acquistion
 period $3,915 $3,178


9. Pensions continued
Defined benefit plans continued
iii) Amount, timing and uncertainty of future cash flows continued
The liability has the following duration and maturity:

                                                                         | 2019  | 2018
------------------------------------------------------------------------ | ----- | -----
Weighted average duration of the defined benefit obligation (years)      | 14    | 15
Maturity analysis of benefit payments (non-discounted amounts) $ million |       |
Maturity ≤ 1 year                                                        | 10.8  | 10.4
Maturity > 1 ≤ 5 years                                                   | 45.6  | 43.2
Maturity > 5 ≤ 10 years                                                  | 61.7  | 119.0
Maturity > 10 ≤ 20 years                                                 | 114.3 | 103.0
Maturity > 20 ≤ 30 years                                                 | 81.7  | 68.0
Maturity > 30 years                                                      | 63.0  | 42.9

. Pensions
 benefit plans
 Amount timing uncertainty future cash flows
 liability duration maturity
 2018
 average duration benefit obligation 14
 Maturity benefit payments $ million
 1 year 10.
 5 years 45. 43.
 5 10 years 61. 119.
 20 years 114. 103.
 20 30 years 81. 68.
 30 63.


FRT Term Loan
On October 25, 2019, we entered into a $23.4 million three-year credit facility loan agreement (the "FRT Term Loan") with HSBC Trinkaus & Burkhardt AG, Germany, to fund the acquisition of FRT GmbH, which we acquired on October 9, 2019. See Note 4 for further details of the acquisition.
The FRT Term Loan bears interest at a rate equal to the Euro Interbank Offered Rate ("EURIBOR") plus 1.75 % per annum and will be repaid in quarterly installments of approximately $1.9 million plus interest beginning January 25, 2020.
The obligations under the FRT Term Loan are fully and unconditionally guaranteed by FormFactor, Inc.
The Credit Facility contains negative covenants customary for financing of this type, including covenants that place limitations on the incurrence of additional indebtedness, the creation of liens, the payment of dividends; dispositions; fundamental changes, including mergers and acquisitions; loans and investments; sale leasebacks; negative pledges; transactions with affiliates; changes in fiscal year; sanctions and anti-bribery laws and regulations, and modifications to charter documents in a manner materially adverse to the Lenders.
The FRT Term Loan also contains affirmative covenants and representations and warranties customary for financing of this type.
Future principal and interest payments on our term loans as of December 28, 2019, based on the interest rate in effect at that date were as follows (in thousands):
(1) Represents our minimum interest payment commitments at 1.35% per annum for the FRT Term Loan and 3.71% per annum for the CMI Term Loan.

                                  |         | Payments Due In Fiscal Year |        |
--------------------------------- | ------- | --------------------------- | ------ | -------
                                  | 2020    | 2021                        | 2022   | Total
Term loans - principal payments   | $42,838 | $7,838                      | $7,838 | $58,514
Term loans - interest payments(1) | 777     | 155                         | 47     | 979
Total                             | $43,615 | $7,993                      | $7,885 | $59,493

FRT Term Loan
 October 25, 2019 $23. 4 million three-year agreement HSBC Trinkaus Burkhardt acquisition FRT GmbH acquired October 9, 2019. Note 4 details.
 interest equal Euro Interbank Offered Rate ("EURIBOR") plus 1. 75 % per annum repaid installments $1. 9 million interest January 25, 2020.
 obligations guaranteed FormFactor.
 Credit Facility contains negative covenants indebtedness liens dividends dispositions mergers loans investments leasebacks negative pledges transactions fiscal year sanctions anti-bribery laws modifications charter.
 affirmative covenants warranties.
 Future principal interest payments loans December 28, 2019
 1. 35% per annum FRT Term Loan 3. 71% per annum CMI Term Loan.
 Payments Due Fiscal Year
 principal payments $42,838 $7,838 $58,514
 interest
$43,615 $7,993,493


Revenues, Cost of Revenues and Gross Margin by Product Type
1) License: Our license revenue can be broadly categorized as perpetual licenses, term licenses and subscription licenses, all of which are deployed on the customer’s premises (on-premise). Our license revenues are impacted by the strength of general economic and industry conditions, the competitive strength of our software products, and our acquisitions. Cost of license revenues consists primarily of royalties payable to third parties.
License revenues decreased by $9.4 million or 2.2% during the year ended June 30, 2019 as compared to the prior fiscal year; up 0.4% after factoring the impact of $11.2 million of foreign exchange rate changes. Geographically, the overall change was attributable to an increase in Americas of $8.2 million, offset by a decrease in Asia Pacific of $10.6 million and a decrease in EMEA of $7.0 million.
During Fiscal 2019, we closed 153 license deals greater than $0.5 million, of which 49 deals were greater than $1.0 million, contributing approximately $144.1 million of license revenues. This was compared to 140 deals greater than $0.5 million during Fiscal 2018, of which 58 deals were greater than $1.0 million, contributing $152.2 million of license revenues.
Cost of license revenues increased by $0.7 million during the year ended June 30, 2019 as compared to the prior fiscal year. The gross margin percentage on license revenues remained at approximately 97%.
For illustrative purposes only, had we accounted for revenues under proforma Topic 605, license revenues would have been $390.4 million for the year ended June 30, 2019, which would have been lower by approximately $47.1 million or 10.8% as compared to the prior fiscal year; and would have been lower by 8.4% after factoring the impact of $10.4 million of foreign exchange rate changes. Geographically, the overall change would have been attributable to a decrease in Americas of $17.7 million, a decrease in EMEA of $15.7 million and a decrease in Asia Pacific of $13.7 million.
The $37.7 million difference between license revenues recognized under Topic 606 and those proforma Topic 605 license revenues described above is the result of timing differences, where under Topic 605, revenues would have been deferred and recognized over time, but under Topic 606 these revenues are recognized up front. For more details, see note 3 "Revenues" to our Consolidated Financial Statements.

                                  |          |                             | Year Ended June 30, |                            |
--------------------------------- | -------- | --------------------------- | ------------------- | -------------------------- | --------
(In thousands)                    | 2019     | Change increase (decrease)) | 2018                | Change increase (decrease) | 2017
License Revenues:                 |          |                             |                     |                            |
Americas                          | $215,871 | $8,216                      | $207,655            | $29,257                    | $178,398
EMEA                              | 163,622  | (7,009)                     | 170,631             | 23,788                     | 146,843
Asia Pacific                      | 48,599   | (10,627)                    | 59,226              | 15,323                     | 43,903
Total License Revenues            | 428,092  | (9,420)                     | 437,512             | 68,368                     | 369,144
Cost of License Revenues          | 14,347   | 654                         | 13,693              | 61                         | 13,632
GAAP-based License Gross Profit   | $413,745 | $(10,074)                   | $423,819            | $68,307                    | $355,512
GAAP-based License Gross Margin % | 96.6%    |                             | 96.9%               |                            | 96.3%
% License Revenues by Geography:  |          |                             |                     |                            |
Americas                          | 50.4%    |                             | 47.5%               |                            | 48.3%
EMEA                              | 38.2%    |                             | 39.0%               |                            | 39.8%
Asia Pacific                      | 11.4%    |                             | 13.5%               |                            | 11.9%

Revenues Cost Gross Margin Product Type
 License perpetual term subscription deployed customer’s premises. impacted economic industry conditions software acquisitions. royalties third.
 revenues decreased $9. 4 million 2. 2% June 30 2019 up. 4% $11. 2 million foreign exchange rate changes. increase Americas $8. 2 million decrease Asia Pacific $10. 6 million decrease EMEA $7. 0 million.
 2019 153 license deals greater $0. 5 million 49 $1. 0 million $144. 1 million. 140 $0. 5 million 2018 58 $1. 0 million $152. 2 million.
 Cost increased $0. 7 million June 30 2019. gross margin percentage 97%.
 revenues $390. 4 million 2019 $47. 1 million 10. 8%. 4% $10. 4 million foreign exchange rate changes. decrease Americas $17. 7 million EMEA $15. 7 million Asia Pacific $13. 7 million.
.7 million difference license 606 605 timing differences 605 deferred recognized 606 recognized. note 3 Consolidated Financial Statements.
 Ended June 30
 2019 2018
 License Revenues
 Americas $215,871 $8,216 $207,655 $29,257 $178,398
 EMEA 163,622 (7,009 170,631 23,788 146,843
 Asia Pacific 48,599 (10,627) 59,226 15,323 43,903
 License Revenues 428,092 (9,420 437,512 68,368 369,144
 Cost License Revenues 14,347
 License Gross Profit $413,745 $423,819 $68,307 $355,512
 Gross Margin 96. 6%.
 Revenues Geography
 Americas 50. 4%.
 EMEA.
 Asia Pacific 11. 4%. 5%.


Other Key Financial Measures
The following is a summary of our other key financial measures for fiscal 2019 compared with fiscal 2018 (in millions):
(1) Deferred revenue decreased primarily due to the adoption of ASC 606 in the beginning of our first quarter of fiscal 2019. See Note 2 to the Consolidated Financial Statements for the impact of this adoption.

                                                     | Fiscal 2019 | Fiscal 2018
---------------------------------------------------- | ----------- | -----------
Cash and cash equivalents and investments            | $33,413     | $46,548
Cash provided by operating activities                | $15,831     | $13,666
Deferred revenue (1)                                 | $18,467     | $19,685
Repurchases of common stock—stock repurchase program | $20,577     | $17,661
Dividends                                            | $5,979      | $5,968
Inventories                                          | $1,383      | $1,846

Financial Measures
 measures 2019 2018
 Deferred revenue decreased ASC 606. Note 2 Consolidated Financial Statements.
 Cash equivalents investments $33,413 $46,548
 activities $15,831 $13,666
 Deferred revenue $18,467 $19,685
 Repurchases $20,577 $17,661
 Dividends $5,979 $5,968
 Inventories $1,383 $1,846


Non-GAAP Financial Measures
Management believes that certain non-GAAP financial measures may be useful to investors in certain instances to provide additional meaningful comparisons between current

results and results in prior operating periods. Adjusted earnings before interest, taxes, depreciation, amortization and stock-based compensation (“Adjusted EBITDA”) is a

metric used by management and frequently used by the financial community. Adjusted EBITDA from operations provides insight into an organization’s operating trends and

facilitates comparisons between peer companies, since interest, taxes, depreciation, amortization and stock-based compensation can differ greatly between organizations as a

result of differing capital structures and tax strategies. Adjusted EBITDA from operations is one of the measures used for determining our debt covenant compliance. Adjusted

EBITDA from operations excludes certain items that are unusual in nature or not comparable from period to period. While management believes that non-GAAP measurements

are useful supplemental information, such adjusted results are not intended to replace our GAAP financial results. Adjusted EBITDA from operations is not, and should not be

considered, an alternative to net income (loss), operating income (loss), or any other measure for determining operating performance or liquidity, as determined under

accounting principles generally accepted in the United States (GAAP). In assessing the overall health of its business for the years ended December 31, 2019 and 2018, the

Company excluded items in the following general categories described below:
Stock-based compensation: The Company believes that because of the variety of equity awards used by companies, varying methodologies for determining stock-based compensation and the assumptions and estimates involved in those determinations, the exclusion of non-cash stock-based compensation enhances the ability of management and investors to understand the impact of non-cash stock-based compensation on our operating results. Further, the Company believes that excluding stockbased compensation expense allows for a more transparent comparison of its financial results to the previous year.
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA FOR THE YEARS ENDED DECEMBER 31,
Liquidity and Capital Resources
For the year ended December 31, 2019, the Company reported a net loss of $1,934,133 and had cash used in operating activities of $1,875,846, and ended the year with an

accumulated deficit of $125,105,539 and total current assets in excess of current liabilities of $4,187,449. At December 31, 2019, the Company had $3,300,600 of cash and

approximately $424,000 of availability on its credit facility. The credit facility is a $2,000,000 line of credit, which is subject to a borrowing base calculation based on the

Company’s eligible accounts receivable and eligible inventory each- multiplied by an applicable advance rate, with an overall limitation tied to the Company’s eligible accounts

receivable. As of December 31, 2019, we had borrowing capacity of $1,102,917 and an outstanding balance of $624,347, resulting in the approximate availability of $424,000

on the credit facility. During the twelve-month period between January 1, 2019 and December 31, 2019, the Company’s cash balance decreased from $4,678,891 to $3,300,600,

or approximately $115,000 per month. In comparison, during the twelve-month period between January 1, 2018 and December 31, 2018, the Company’s cash balance decreased

from $8,385,595 to $4,678,891, or approximately $309,000 per month. This improvement is the result of improved revenues and cost management efforts.

                               | 2019         | 2018
------------------------------ | ------------ | ------------
Net loss                       | $(1,934,133) | $(3,016,750)
Interest (income) expense, net | 53,139       | (13,622)
Income tax provision (benefit) | (100,363)    | 9,623
Depreciation and amortization  | 66,082       | 67,107
EBITDA                         | (1,915,275)  | (2,953,642)
Adjustments:                   |              |
Stock-based compensation       | 7,261        | 6,404
Adjusted EBITDA                | $(1,908,014) | $(2,947,238)

Non-GAAP Financial Measures
 Management believes non-GAAP financial measures useful comparisons between current
 results prior periods. Adjusted earnings before interest taxes depreciation amortization stock-based compensation
 used by management financial community. provides insight operating trends
 facilitates comparisons between peer companies interest taxes depreciation amortization stock compensation
 capital structures tax strategies. debt covenant compliance.
 excludes items unusual not comparable. believes non-GAAP measurements
 useful supplemental information not replace GAAP results. not
 alternative to net income operating income determining operating performance liquidity
 accounting principles. assessing health business years ended December 31, 2019 2018
 Company excluded categories
 Stock-based compensation believes methodologies exclusion compensation enhances management understand impact results. excluding compensation allows transparent comparison financial results previous year.
LOSS EBITDA DECEMBER 31,
 2019 Company net loss $1,934,133 cash $1,875,846
 deficit $125,105,539 current assets liabilities $4,187,449. December $3,300,600 cash
 $424,000 credit facility. $2,000,000 line borrowing base calculation
 inventory multiplied advance rate limitation
. borrowing capacity $1,102,917 outstanding balance $624,347 availability $424,000
 credit facility. January cash balance decreased $4,678,891 to $3,300,600
 $115,000 per month. January 2018 cash balance decreased
 $8,385,595 to $4,678,891 $309,000 per month. improved revenues cost management.
 Net loss $(1,934,133) $(3,016,750
 Interest expense 53
 Income tax provision) (100,363
 Depreciation amortization
 EBITDA (1,915,275) (2,953,642
 Adjustments
7,261
 EBITDA,908,014),947,238)


The following table presents unaudited supplemental pro forma results for fiscal 2019 and 2018 as if both the Grakon acquisition had occurred as of the beginning of fiscal 2018 and the Pacific Insight acquisition had occurred as of the beginning of fiscal 2017. The unaudited pro forma information is presented for information purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place at such times.
The unaudited pro forma results presented below primarily include amortization charges for acquired intangible assets, depreciation adjustments for property, plant and equipment that has been revalued, interest expense adjustments due to an increased debt level, adjustments for certain acquisition-related charges and related tax effects.

                      | Fiscal Year Ended |
--------------------- | ----------------- | --------------
(Dollars in Millions) | April 27, 2019    | April 28, 2018
Revenues              | $1,073.3          | $1,095.0
Net Income            | $106.4            | $70.5

table presents unaudited supplemental pro forma results 2019 2018 Grakon acquisition Pacific Insight acquisition. unaudited pro forma information not indicative acquisitions.
 results include amortization assets depreciation adjustments property equipment interest expense adjustments increased debt acquisition-related charges tax effects.
 Fiscal Year Ended
 Millions April 27, 2019 April 28, 2018
 Revenues $1,073. $1,095.
 Net Income $106. $70.


ITEM 6. SELECTED FINANCIAL DATA
The selected financial data presented below has been derived from our audited consolidated financial statements. This data should be read in conjunction with “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 8. Financial Statements and Supplementary Data” of this Annual Report.
(1) We elected to early adopt Accounting Standards Update (“ASU”) 2016-09 “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”) in 2016, which requires us, among other things, to prospectively record excess tax benefits as a reduction of the provision for income taxes in the consolidated statement of operations, whereas they were previously recognized in equity.
(2) We retrospectively adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” in 2018. As a result, we have adjusted balances for 2017 and 2016. We have not adjusted 2015 for ASU 2014-09.

(in thousands, except per share amounts)            | 2019       | 2018      | 2017    | 2016    | 2015
--------------------------------------------------- | ---------- | --------- | ------- | ------- | -------
Consolidated Statements of Operations Data (1) (2): |            |           |         |         |
Revenue:                                            |            |           |         |         |
Perpetual license                                   | $80,015    | 109,863   | 132,883 | 145,053 | 166,305
Term license                                        | 199,433    | 178,256   | 206,411 | 152,231 | 109,283
Maintenance                                         | 280,580    | 263,875   | 242,320 | 218,635 | 202,802
Cloud                                               | 133,746    | 82,627    | 51,097  | 40,647  | 30,626
Consulting                                          | 217,609    | 256,960   | 255,756 | 205,663 | 173,679
Total revenue                                       | $911,383   | 891,581   | 888,467 | 762,229 | 682,695
(Loss) income from operations                       | $(134,878) | $(17,032) | $93,177 | $50,644 | $64,661
Net (loss) income                                   | $(90,433)  | $10,617   | $98,548 | $45,015 | $36,322
(Loss) earnings per share                           |            |           |         |         |
Basic                                               | $(1.14)    | $0.14     | $1.27   | $0.59   | $0.47
Diluted                                             | $(1.14)    | $0.13     | $1.19   | $0.56   | $0.46
Cash dividends declared per common share            | $0.12      | $0.12     | $0.12   | $0.12   | $0.12

ITEM 6. SELECTED FINANCIAL DATA
 audited financial statements. with 7. Management’s Discussion Analysis Financial Condition Results 8. Financial Statements Supplementary Annual Report.
 Accounting Standards Update 2016-09 Stock Compensation 718) Payment 2016, excess tax benefits.
 adopted ASU 2014-09 Contracts Customers (Topic 2018. adjusted balances 2017 2016. not adjusted 2015 ASU 2014-09.
 2019 2018 2017 2016 2015
 Consolidated Statements Operations Data
 Revenue
 Perpetual license $80,015  109,863 132,883 145,053 166,305
 Term license 199,433 178,256 206,411
 Maintenance 280,580 263,875 242,320 218,635
 Cloud 133,746 82,627 51,097
 Consulting 217,609 256,960 255,756 205,663
revenue $911,383 891,581 888,467,229 682,695
 income operations $(134,878 $(17,032) $93,177 $50,644 $64,661
 Net (loss income $(90,433 $10,617 $98,548 $45,015 $36,322
 earnings per share
. 14.
. 19.
 Cash dividends share. 12.


Net revenue: Net revenue from our Broadcasting segment for the year ended December 31, 2019 decreased $3.6 million to $41.8 million from $45.4 million for the year ended December 31, 2018. During the second half of 2018, the Broadcasting segment undertook targeted cost cutting measures, primarily at HC2 Network Inc. ("Network") where Broadcasting exited certain local business operations and made strategic changes to the programming mix.
The decrease in net revenue was primarily due to lower local advertising sales as a result of such restructuring. This was partially offset by higher broadcast stations revenue associated with stations acquired during and subsequent to the comparable period.
Cost of revenue: Cost of revenue from our Broadcasting segment for the year ended December 31, 2019 decreased $5.0 million to $23.5 million from $28.5 million for the year ended December 31, 2018. The overall decrease was primarily driven by a reduction in audience measurement costs as a result of the exit of certain local markets which were unprofitable at Network and a decrease in programming costs due to changes in the programming mix referenced above, partially offset by higher cost of revenues associated with the growth of the Broadcast stations subsequent to the prior year.
Selling, general and administrative: Selling, general and administrative expenses from our Broadcasting segment for the year ended December 31, 2019 decreased $10.9 million to $26.4 million from $37.3 million for the year ended December 31, 2018. The decrease was primarily due to a reduction in compensation costs, mainly driven by the cost cutting measures discussed above and lower legal expenses related to elevated acquisition-related expenses incurred in the prior period.
Depreciation and amortization: Depreciation and amortization from our Broadcasting segment for the year ended December 31, 2019 increased $3.0 million to $6.3 million from $3.3 million for the year ended December 31, 2018. The increase was driven by additional amortization of fixed assets and definite lived intangible assets which were acquired as part of transactions subsequent to the comparable period.
Other operating (income) expense: Other operating (income) expense from our Broadcasting segment for the year ended December 31, 2019 increased $3.3 million to income of $3.0 million from expense of $0.3 million for the year ended December 31, 2018. The increase was driven by reimbursements from the Federal Communications Commission (the “FCC”), partially offset by the impairment of FCC licenses during 2019 resulting from strategic discussions to abandon certain licenses.
The FCC requires certain television stations to change channels and/or modify their transmission facilities. The U.S. Congress passed legislation which provides the FCC with a fund to reimburse all reasonable costs incurred by stations operating under full power and Class A licenses and a portion of the costs incurred by stations operating under a low power license that are reassigned to new channels.

                                    |          | Years Ended December 31, |
----------------------------------- | -------- | ------------------------ | ---------------------
                                    | 2019     | 2018                     | Increase / (Decrease)
Net revenue                         | $ 41.8   | $ 45.4                   | $ (3.6)
Cost of revenue                     | 23.5     | 28.5                     | (5.0)
Selling, general and administrative | 26.4     | 37.3                     | (10.9)
Depreciation and amortization       | 6.3      | 3.3                      | 3.0
Other operating (income) expense    | (3.0)    | 0.3                      | (3.3)
Loss from operations                | $ (11.4) | $ (24.0)                 | $ 12.6

Net revenue Broadcasting segment December 31, 2019 decreased $3. 6 million to $41. 8 million from $45. 4 million 2018. cost cutting HC2 Network. exited operations changes programming mix.
 due lower advertising sales. offset higher stations revenue.
 Cost revenue December 31, 2019 decreased $5. 0 million to $23. 5 million from $28. 5 million 2018. driven reduction audience measurement costs exit local markets decrease programming costs offset higher cost revenues growth.
 Selling administrative expenses December 31, 2019 decreased $10. 9 million to $26. 4 million from $37. 3 million 2018. due reduction compensation costs cost cutting measures lower legal expenses.
 Depreciation amortization 2019 increased $3. 0 million to $6. 3 million from $3. 3 million 2018. driven additional amortization fixed intangible assets acquired.
 Other operating (income) expense increased $3. 3 million to $3. 0 million from.million year December 31, 2018. increase driven reimbursements Federal Communications Commission offset impairment licenses 2019.
 FCC requires stations change channels modify transmission facilities. Congress passed legislation FCC fund reimburse costs full power Class A licenses low power new channels.
 Ended December 31,
 2019 2018 Increase
 Net revenue $ 41. $ 45. (3.
 Cost revenue 23. 28. (5.
 Selling administrative 26. 37. (10.
 Depreciation amortization 6. 3.
 operating.
 Loss operations $ (11. (24. 12.


Expected Future Rate
Over the medium-term the tax rate is likely to stabilise as the integration of acquisitions in higher rate jurisdictions are completed. However, the tax rate may fluctuate if business changes are implemented in response to legislation arising from the OECD’s Base Erosion & Profit Shifting Project. Legislative change in key territories is being monitored and acted upon.
The Group does not anticipate any significant impact on the future tax charge, liabilities or assets, as a result of the triggering of Article 50(2) of the Treaty on European Union, but cannot rule out the possibility that, for example, a failure to reach satisfactory arrangements for the UK’s future relationship with the European Union, could have an impact on such matters.
The European Commission has concluded its investigation into the UK’s controlled foreign company (“CFC”) rules. The CFC rules levy a charge on foreign entities controlled by the UK that are subject to a lower rate of tax, however there is currently an exemption available for 75% of this charge if the activities being undertaken by the CFC relate to financing. The EC concluded that this exemption is in breach of EU State Aid rules. However, whilst we are awaiting further detail from HMRC, the position has not changed from a tax accounting perspective. The risk is possible, but not probable. UK ministers have yet to decide on whether to pursue an appeal. No provision for this potential liability of $3.6M has been provided in these Consolidated Financial Statements as it is not clear what, if any, the ultimate financial result will be.
Deferred tax assets and liabilities are attributable to the following:
As at 31 March 2019 the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which deferred tax liabilities have been recognised was $Nil (2018: $Nil). No liability has been recognised because the Group is in a position to control the reversal of temporary differences and it is probable that such differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability settled, based on tax rates that have been enacted or substantively enacted at the reporting date.

                                                           | 31 March 2019 | 31 March 2018 Restated See note 2
---------------------------------------------------------- | ------------- | ---------------------------------
                                                           | $M            | $M
Deferred income tax assets in relation to:                 |               |
Deferred revenue                                           | 40.9          | 40.0
Tax value of carry forward losses of UK subsidiaries       | 37.0          | 24.2
Tax value of carry forward losses of overseas subsidiaries | 6.2           | 6.4
Advanced capital allowances                                | 7.5           | 7.7
Share-based payments                                       | 11.6          | 27.7
Other temporary differences                                | 11.8          | 14.7
Total                                                      | 115.0         | 120.7
Deferred income tax liabilities in relation to:            |               |
Intangible assets                                          | 6.1           | 5.9
Deferred selling cost                                      | 8.5           | 8.5
Other temporary differences                                | -             | 0.1
Total                                                      | 14.6          | 14.5

Future Rate
 medium-term tax rate stabilise acquisitions higher rate jurisdictions. tax rate may fluctuate business changes OECD’s Base Erosion Profit Shifting Project. Legislative change territories monitored.
 Group impact future tax charge liabilities assets triggering Article 50(2) Treaty European Union failure arrangements future relationship European Union.
 European Commission concluded investigation controlled foreign company rules. levy charge foreign entities lower rate tax exemption 75% financing. EC concluded exemption breach EU State Aid rules. awaiting detail position not changed tax accounting. risk possible not probable. UK ministers appeal. No provision potential liability $3. 6M Consolidated Financial Statements ultimate financial result.
 Deferred tax assets liabilities
 31 March 2019 temporary differences undistributed earnings subsidiaries $Nil (2018). No liability recognised Group reversal temporary differences probable reverse.
Deferred tax assets liabilities measured tax rates tax rates enacted reporting date.
 31 March 2019 2018
 Deferred income tax assets
 Deferred revenue 40. 9.
 losses UK subsidiaries 37. 24.
 losses overseas subsidiaries 6.
 capital allowances 7.
 Share-based payments 11. 27.
 differences 11. 8 14.
 115. 120.
 Deferred income tax liabilities
 Intangible assets 6. 5. 9
 Deferred selling cost 8. 5. 5
 differences.
 14.


Item 6. Selected Financial Data
The following selected data is derived from our Consolidated Financial Statements. This data should be read in conjunction with the Consolidated Financial Statements and notes thereto incorporated into Item 8, “Financial Statements and Supplementary Data” and with Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
(2) Working capital is defined as current assets minus current liabilities.

                                                            |             |             | August 31,     |             |
----------------------------------------------------------- | ----------- | ----------- | -------------- | ----------- | ----------
                                                            | 2019        | 2018        | 2017           | 2016        | 2015
                                                            |             |             | (in thousands) |             |
Consolidated Balance Sheets Data:                           |             |             |                |             |
Working capital(2)                                          | $(187,020)  | $319,050    | $(243,910)     | $280,325    | $191,168
Total assets                                                | $12,970,475 | $12,045,641 | $11,095,995    | $10,322,677 | $9,591,600
Current installments of notes payable and long-term debt    | $375,181    | $25,197     | $444,255       | $44,689     | $321,964
Notes payable and long-term debt, less current installments | $2,121,284  | $2,493,502  | $1,606,017     | $2,046,655  | $1,308,663
Total Jabil Inc. stockholders’ equity                       | $1,887,443  | $1,950,257  | $2,353,514     | $2,438,171  | $2,314,856
Common stock shares outstanding                             | 153,520     | 164,588     | 177,728        | 186,998     | 192,068

6. Financial Data
 Consolidated Financial Statements. 8 7 Financial Condition Results Operations.
 Working capital assets minus liabilities.
 Consolidated Balance Sheets Data
 Working $(187,020) $319,050 $(243,910) $280,325 $191,168
 Total assets $12,970,475 $12,045,641 $11,095,995 $10,322,677 $9,591,600
 installments debt $375,181 $25,197 $444,255 $44,689
 $2,121,284 $2,493,502 $1,606,017,046,655,308,663
 Jabil. stockholders’ equity $1,887,443 $1,950,257 $2,353,514,438,171,314,856
 Common stock shares 153,520 164,588 177,728 186,998


Results of Operations
We operate a cybersecurity business, focused on licensing and enforcement, providing advisory services, developing mobile security applications, and investing in emerging cybersecurity technologies and intellectual property. The following table summarizes our results of operations for the periods presented and as a percentage of our total revenue for those periods based on our consolidated statement of operations data. The year to year comparison of results of operations is not necessarily indicative of results of operations for future periods.

                                        |         |              | For the Years Ended December 31,  |              |        |
--------------------------------------- | ------- | ------------ | --------------------------------- | ------------ | ------ | ------------
                                        | 2019    |              | 2018                              |              | 2017   |
                                        | Amount  | % of Revenue | Amount                            | % of Revenue | Amount | % of Revenue
                                        |         |              | (In millions, except percentages) |              |        |
Revenues                                | $13.2   | 100%         | $82.3                             | 100%         | $50.5  | 100%
Cost of revenues                        | 1.9     | 14%          | 15.3                              | 19%          | 6.0    | 12%
Gross profit                            | 11.3    | 86%          | 67.0                              | 81%          | 44.5   | 88%
Operating expenses:                     |         |              |                                   |              |        |
Selling, general and administrative (1) | 31.7    | 240%         | 32.2                              | 39%          | 28.6   | 57%
Research and development                | 2.0     | 15%          | 2.1                               | 2%           | 1.5    | 3%
Total operating expenses                | 33.7    | 225%         | 34.3                              | 41%          | 30.1   | 60%
Other income (expense)                  | (0.3)   | (2)%         | (4.0)                             | (5)%         | 2.2    | 4%
Income (loss) before income taxes       | (22.7)  | (172%)       | 28.7                              | 35%          | 16.6   | 33%
Income tax provision (benefit)          | (6.2)   | (47%)        | 8.0                               | 10%          | (6.2)  | (12)%
Net income (loss)                       | $(16.5) | (125)%       | $20.7                             | 25%          | $22.8  | 45%
(1) Includes stock based compensation   | $1.0    | 8%           | $1.6                              | 2%           | $0.8   | 2%

Operations
 cybersecurity business licensing enforcement advisory services mobile security applications investing emerging cybersecurity technologies intellectual property. table summarizes results percentage total revenue. year not indicative future.
 Years Ended December 31,
 2019 2018 2017
 Amount % Revenue
 millions
 Revenues $13. 100% $82. $50.
 Cost revenues 1. 14% 15. 19% 6. 12%
 Gross profit 11. 86% 67. 81% 44. 88%
 Operating expenses
 Selling general administrative 31. 240% 32. 39% 28. 57%
 Research development 2. 15% 2. 2% 1. 3%
 Total operating expenses 33. 225% 34. 41% 30. 60%
 Other income. 2. 4%
 Income (loss) before taxes (22. (172%) 28. 35% 16. 33%
Income tax (6. (47%. 10%. (12)%
 Net income. (125)% $20. 25% $22. 45%
 stock compensation $1. 8%. 2%.


4. Restructuring Activity
From time to time, the Company approves and implements restructuring plans as a result of internal resource alignment, and cost saving measures. Such restructuring plans include terminating employees, vacating certain leased facilities, and cancellation of contracts.
The following table presents the activity related to the plans, which is included in restructuring charges in the consolidated statements of operations:
Included in employee separation expenses for the year ended December 31, 2017 is stock-based compensation from the acceleration of certain stock-based awards the Company assumed from Exar due to existing change in control provisions triggered upon termination or diminution of authority of former Exar executives of $5.1 million.
Lease related and other charges primarily related to exiting certain redundant facilities.

                             |        | Years Ended December 31, |
---------------------------- | ------ | ------------------------ | ------
                             | 2019   | 2018                     | 2017
                             |        | (in thousands)           |
Employee separation expenses | $1,150 | $2,094                   | $8,353
Lease related expenses       | 1,301  | 1,608                    | 1,025
Other                        | 185    | 136                      | 146
                             | $2,636 | $3,838                   | $9,524

. Restructuring Activity
 Company approves restructuring plans resource alignment cost saving. include terminating employees vacating facilities cancellation contracts.
 table activity restructuring charges
 employee separation expenses December 2017 stock-based compensation awards Exar Exar executives $5. 1 million.
 Lease charges exiting redundant facilities.
 Years Ended December 31,
 Employee separation expenses $1,150 $2,094 $8,353
 Lease related expenses 1,301 1,608 1,025
 $2,636 $3,838 $9,524


* Represents beneficial ownership of less than 1% of our outstanding shares of common stock.
(1) Consists of (a) 16,982 shares of our common stock and (b) 36,837 shares of our common stock issuable upon exercise of stock options exercisable within 60 days of February 15, 2020.
(2) Consists of (a) 37,011 shares of our common stock held directly by the Hutchison Family Trust, of which Mr. Hutchison is a co-trustee, (b) 7,028 shares of our common stock held by Glasgow Investments, LLC and (c) 44,166 shares of our common stock issuable to Mr. Hutchison upon exercise of stock options exercisable within 60 days of February 15, 2020. Mr. Hutchison is a managing member of Glasgow Investments, LLC and possesses the power to direct the voting and disposition of the shares held by Glasgow Investments, LLC and as such may be deemed to beneficially own the shares of our common stock held by Glasgow Investments, LLC.
(3) Consists of 16,016 shares of our common stock issuable upon exercise of stock options exercisable within 60 days of February 15, 2020.
(4) Consists of (a) 235,643 shares of our common stock held directly by the Lien Revocable Trust dated 7/8/2003, of which Mr. Lien is a co-trustee, (b) 3,658 shares of our common stock held individually by Mr. Lien, (c) 62,919 shares of our common stock issuable to Mr. Lien upon exercise of stock options exercisable within 60 days of February 15, 2020, (d) 12,182 shares of our common stock held by the Chris Lien 2013 Annuity Trust, and (e) 12,182 shares of our common stock held by the Rebecca Lien 2013 Annuity Trust.
(5) Consists of 36,888 shares of our common stock issuable upon exercise of stock options exercisable within 60 days of February 15, 2020.
(6) Consists of (a) 76,346 shares of our common stock, (b) 29,435 shares of our common stock issuable upon exercise of stock options exercisable within 60 days of February 15, 2020, and (c) 11,250 restricted stock units subject to vesting within 60 days of February 15, 2020.
(7) Mr. Kinnish resigned as our Chief Financial Officer as of December 5, 2019. Consists of (a) 9,079 shares of our common stock, and (b) 53,068 shares of our common stock issuable upon exercise of stock options exercisable within 60 days of February 15, 2020.
(8) Includes (a) 410,111 shares of common stock, (b) 279,329 shares issuable upon exercise of stock options exercisable within 60 days of February 15, 2020, and (c) 11,250 shares of our common stock subject to vesting of restricted stock unit awards within 60 days of February 15, 2020.
(9) Based on information contained in a Schedule 13G/A filed with the SEC by Benchmark Capital on February 12, 2020. Consists of (a) 456,916 shares of our common stock held by Benchmark Capital Partners VI, L.P. (“BCP VI”) and (b) 28,576 shares of our common stock held by Benchmark Founders’ Fund VI, L.P. (“BFF VI”), (c) 18,754 shares held by Benchmark Founders’ Fund VI-B L.P. (“BFF VI-B”) and (d) 49,256 shares of our common stock held in nominee form for the benefit of persons associated with Benchmark Capital Management Co. VI, L.L.C. (“BCMC VI”). BCMC VI is the general partner of BCP VI, BFF VI and BFF VI-B and may be deemed to have sole voting and investment power over the shares held by BCP VI, BFF VI and BFF VI-B. Certain individual members of BCMC VI, including Bruce W. Dunlevie, a member of our Board until February 2017, may be deemed to have shared voting and investment power over the shares held by BCP VI, BFF VI and BFF VI-B. The address for each Benchmark reporting entity is 2965 Woodside Road, Woodside, California 94062. 2017, may be deemed to have shared voting and investment power over the shares held by BCP VI, BFF VI and BFF VI-B. The address for each Benchmark reporting entity is 2965 Woodside Road, Woodside, California 94062.
(10)  Based on information contained in a Schedule 13G filed with the SEC by DAG Ventures IV-QP, L.P. and its affiliates on February 11, 2014 and adjusted here for the 1-for-7 reverse stock split effectuated on October 5, 2017. Consists of 444,674 shares of our common stock held by DAG Ventures IV-QP, L.P. (“DAVG IV-QP”), (b) 51,356 shares of our common stock held by DAG Ventures IV-A, LLC (“DAG IV-A”) and (c) 46,994 shares of our common stock held by DAG Ventures IV, L.P. (“DAG IV”). DAG Ventures Management IV, LLC (“DAG IV LLC”) serves as the general partner of DAG IV-QP and DAG IV. As such, DAG IV LLC possesses power to direct the voting and disposition of the shares of our common stock owned by DAG IV-QP and DAG IV and may be deemed to have indirect beneficial ownership of the shares of our common stock held by DAG IV-QP and DAG IV. DAG IV LLC does not own any of our securities directly. R. Thomas Goodrich, John J. Caddo, Greg Williams, Young J. Chung and Nick Pianism are managing directors of DAG IV LLC and DAG IV-A and possess power to direct the voting and disposition of the shares owned by DAG IV-QP, DAG IV and DAG IV-A and may be deemed to have indirect beneficial ownership of the shares held by DAG IV-QP, DAG IV and DAG IV-A. The address for DAG IV-QP, DAG IV, DAG IV- A and DAG IV LLC is 251 Lytton Avenue, Suite 200, Palo Alto, CA 94301.
(11)  Based on information contained in a Schedule 13G filed with the SEC by ESW Capital, LLC (“ESW”) on December 28, 2018. ESW owns 579,000 shares. Joseph A. Liemandt is the sole voting member of ESW and may be deemed to have indirect beneficial ownership of the shares held by ESW. The address for ESW and Mr. Liemandt is 401 Congress Avenue, Suite 2650, Austin, TX 78701.

Name of Beneficial Owner                             | Number of Shares Beneficially Owned | Percent Owned
---------------------------------------------------- | ----------------------------------- | -------------
Directors and Named Executive Officers               |                                     |
L. Gordon Crovitz(1)                                 | 53,819                              | *
Donald P. Hutchison(2)                               | 88,205                              | 1.3
Brian Kinion(3)                                      | 16,016                              | *
Christopher Lien(4)                                  | 326,584                             | 4.7
Daina Middleton(5)                                   | 36,888                              | *
Wister Walcott(6)                                    | 117,031                             | 1.7
Robert Bertz                                         | —                                   | *
Bradley Kinnish(7)                                   | 62,147                              | *
All officers and directors as a group (8 persons)(8) | 700,690                             | 9.9
5% or Greater Stockholders                           |                                     |
Benchmark Capital Partners VI, L.P(9)                | 553,502                             | 8.1
Entities affiliated with DAG Ventures(10)            | 543,024                             | 8.0
ESW Capital, LLC (11)                                | 579,000                             | 8.5

Represents beneficial ownership less than 1% outstanding shares common stock.
 Consists 16,982 shares common 36,837 shares issuable options 60 days February 15, 2020.
 37,011 shares Hutchison Family Trust. Hutchison co-trustee 7,028 shares Glasgow Investments 44,166 shares issuable. Hutchison options 60 days February 15, 2020. Hutchison managing member Glasgow Investments direct voting disposition shares beneficially.
 16,016 shares issuable options 60 days February 15, 2020.
 235,643 shares Lien Revocable Trust. co-trustee 3,658 shares. Lien 62,919 shares issuable. Lien options 60 days February 15, 2020 12,182 shares Chris Lien 2013 Annuity Trust 12 Rebecca Lien 2013 Annuity Trust.
 36,888 shares stock issuable options 60 days February 15, 2020.
76,346 shares common stock 29,435 shares issuable options 60 days February 15, 2020 11,250 restricted stock units vesting 60 days February 15 2020.
. Kinnish resigned Chief Financial Officer December 5, 2019. 9,079 shares stock 53,068 shares issuable options 60 days February 15, 2020.
 Includes 410,111 shares common,329 shares issuable options 60 days February 15, 2020 11,250 shares vesting restricted stock 60 days 15 2020.
 Schedule 13G/A filed SEC Benchmark Capital February 12, 2020. 456,916 shares stock Benchmark Capital Partners. 28,576 shares Benchmark Founders’ Fund. 18,754 shares. 49,256 shares Benchmark Capital Management. general partner BCP VI BFF VI BFF VI-B sole voting investment power shares BCP VI. Bruce W.Dunlevie member Board until February 2017 shared voting investment power shares BCP VI BFF VI BFF VI-B. 2965 Woodside Road Woodside California 94062. BCP VI BFF VI VI-B. 2965 Woodside Road California.
 Schedule 13G SEC DAG Ventures IV-QP. affiliates February 11, 2014 adjusted 1-for-7 reverse stock split October 5, 2017. 444,674 shares stock DAG Ventures IV-QP. 51,356 shares Ventures IV-A 46,994 shares DAG Ventures IV. general partner DAG IV-QP DAG IV. DAG IV voting disposition DAG IV-QP DAG IV indirect beneficial ownership. DAG IV own securities directly. Thomas Goodrich John J. Caddo Greg Williams Young.Chung Nick Pianism managing directors IV LLC-A direct voting disposition shares indirect beneficial ownership. address 251 Lytton Avenue Suite 200 Palo Alto CA 94301.
 Schedule 13G ESW Capital. owns 579,000 shares. Joseph. Liemandt sole voting member indirect beneficial ownership. 401 Congress Avenue Suite 2650 Austin 78701.
 Beneficial Owner Shares Percent
 Directors Officers
. Gordon Crovitz(1) 53,819
 Donald. Hutchison(2) 88,205.
 Brian Kinion(3) 16,016
 Christopher Lien(4) 326,584.
 Daina Middleton(5) 36,888
 Wister Walcott(6) 117,031.
 Robert Bertz
 Bradley Kinnish 62,147
 officers directors 700,690.
 Stockholders
 Benchmark Capital Partners. 553,502.
 DAG Ventures(10 543,024.
 ESW Capital, LLC 579,000.