Litigation expenses are expected to vary from period to period due to the level of litigation activities and shared risk fee arrangements in place at the time. The Company expects a decrease in litigation expenses in fiscal 2016 as a result of the expected level of litigation activities and corresponding contingent-fee arrangements.
Patent maintenance and prosecution expenses increased over the same period last year as a result of the higher number of patents and applications the Company currently maintains. The Company is actively working to reduce the number of non-core patents in its portfolio through a combination of strategic sales, lifetime licenses and, in certain cases, the abandonment or dedication to the public of several patents and applications.
Marketing, general, and administration expenses ("MG&A")
In the three month period ended June 30, 2016, MG&A expenses amounted to $2.8 million, or 17% of revenue, compared with $2.2 million, or 6% of revenue, in the same period last year. In the six month period ended June 30, 2016, MG&A expenses amounted to $5.4 million, or 12% of revenue, compared with $4.5 million, or 8% of revenue, in the same period last year. These costs will vary from period to period depending on the activities and initiatives undertaken at that time.
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Three months ended Six months ended
June 30, June 30, June 30, June 30,
2016 2015 2016 2015
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Compensation and benefits $ 1,645 $ 758 $ 2,947 $ 1,949
Depreciation 106 108 213 226
Stock-based compensation 1 72 18 188
Public company costs 447 410 1,147 725
Facilities 148 152 317 301
Other 405 712 757 1,074
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$ 2,752 $ 2,212 $ 5,399 $ 4,463
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Research and development expenses ("R&D")
Restructuring activities, which commenced in October 2015, resulted in the elimination of WiLAN's R&D activities and, therefore, the Company does not expect to incur any expenses related to R&D in 2016. The Company does not expect the elimination of its R&D activities to have a material impact, if any, on its business activities.
Foreign Exchange
In the three month period ended June 30, 2016, WiLAN incurred a foreign exchange gain of $0.1 million compared with a negligible loss in the same period last year. In the six month period ended June 30, 2016, the Company incurred a foreign exchange gain of $0.3 million compared with a loss of $2.3 million in the same period last year.
The unrealized foreign exchange gains of $0.1 million and $0.3 million recognized in the three and six month periods ended June 30, 2016, respectively, resulted from the translation of monetary accounts, primarily cash and cash equivalents, short-term investments, dividends, and accounts payable, denominated in Canadian dollars to U.S. dollars. The change from last year is attributable to the decrease in the level of monetary accounts denominated in Canadian dollars and the Canadian dollar strengthening relative to the U.S. dollar.
EBITDA
In the three month period ended June 30, 2016, WiLAN generated EBITDA of $7.1 million, or $0.06 per basic share, compared with $25.2 million, or $0.21 per basic share, in the same period last year. In the six month period ended June 30, 2016, WiLAN generated EBITDA of $27.0 million, or $0.23 per basic share, compared with $29.8 million, or $0.25 per basic share, in the same period last year.
Net Earnings
In the three month period ended June 30, 2016, WiLAN's GAAP net loss was $3.2 million, or $(0.03) per basic share, compared with GAAP earnings of $11.0 million, or $0.09 per basic share, in the same period last year. In the six month period ended June 30, 2016, WiLAN's GAAP earnings were $1.8 million, or $0.01 per basic share, compared with GAAP earnings of $6.2 million, or $0.05 per basic share, in the same period last year.
Second Quarter 2016 Balance Sheet and Cash Flow Review
At June 30, 2016, the Company's cash, which is comprised of cash and cash equivalents and short-term investments, totaled $103.7 million, representing an increase of $1.8 million from the cash position at March 31, 2016, and an increase of $9.1 million from the cash position at December 31, 2015. The increase from December 31, 2015, is primarily attributable to $23.1 million of cash generated from operations, which was partially offset by the payment of dividends totaling $2.2 million, the repurchase of common shares under a normal course issuer bid totaling $3.1 million and patent acquisitions totaling $8.9 million which includes payments totaling $2.8 million for the repayment of patent finance obligations for patents acquired in 2013 and payments totaling $6.0 million for patents acquired in 2015.
