General and administrative expenses increased $4.4 million, from $15.0 million during the year ended December 31, 2011, to $19.4 million during the year ended December 31, 2012. The increase in general and administrative expenses was primarily due to $2.2 million in additional salaries and related benefits expense associated with incremental finance and administrative staff added during the second half of 2011 and during 2012 as the Company built out its corporate infrastructure, $1.0 million in higher legal fees associated with intellectual property and regulatory related matters and $1.1 million in higher facilities and information technology infrastructure expenses.
Interest expense, net increased $8.2 million, from $6.3 million during the year ended December 31, 2011, to $14.5 million during the year ended December 31, 2012. The increase in interest expense was primarily attributable to higher borrowing balances, higher debt extinguishment costs and amortization to interest expense of deferred financing and debt discount expenses under the Company's Senior Secured Loan compared to the prior year. During the year ended December 31, 2012, the Company recorded a $2.5 million charge related to the extinguishment of its prior debt facilities, compared to a $1.9 million charge during the year ended December 31, 2011, related to the loss on extinguishment of the Company's prior debt facilities.
Income tax benefit decreased $9.5 million, from $14.7 million during the year ended December 31, 2011, to $5.2 million during the year ended December 31, 2012. The income tax benefit during the year ended December 31, 2012, was primarily associated with the reclassification of our IPR&D asset to developed technology following the July 26, 2012, FDA approval of RAYOS, resulting in a one-time income tax benefit of $4.3 million. The income tax benefit during the year ended December 31, 2011, was primarily attributable to our IPR&D intangible asset impairment charge of $69.6 million, which reduced our deferred income tax positions and increased our income tax benefit.
Net loss for the year ended December 31, 2012, was $87.8 million, or $2.26 per share based on 38,871,422 weighted average shares outstanding, compared to a net loss of $113.3 million, or $12.56 per share based on 9,014,968 weighted average shares outstanding, during the year ended December 31, 2011.
Non-GAAP net loss for the year ended December 31, 2012 was $76.0 million, or $1.96 per share, compared to non-GAAP net loss of $48.5 million, or $5.38 per share, during the year ended December 31, 2011. Refer to the section of this press release below titled, "Note Regarding Use of Non-GAAP Financial Measures."
Note Regarding Use of Non-GAAP Financial Measures
Horizon provides non-GAAP net income (loss) and net income (loss) per share financial measures that include adjustments to GAAP figures. These adjustments to GAAP exclude non-cash items such as stock compensation and depreciation and amortization, non-cash interest expense, and other non-cash charges. Horizon believes that these non-GAAP financial measures, when considered together with the GAAP figures, can enhance an overall understanding of Horizon's financial performance. The non-GAAP financial measures are included with the intent of providing investors with a more complete understanding of operational results and trends. In addition, these non-GAAP financial measures are among the indicators Horizon's management uses for planning and forecasting purposes and measuring the Company's performance. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, non-GAAP financial measures used by other companies. Please refer to the financial statements portion of this press release for a reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures.
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