5. Ownership Interests and Cost Method Companies

Equity Method Companies

The following unaudited summarized financial information relates to ICG’s companies accounted for under the equity method of accounting as of June 30, 2013 and December 31, 2012 and for the three- and six-month periods ended June 30, 2013 and 2012. This aggregate information has been compiled from the financial statements of those companies.

Balance Sheets (Unaudited)

	June 30, 2013 (1)			December 31, 2012 (2)
	(in thousands)
Cash and cash equivalents	$	6,137		$	5,572
Other current assets		11,103			11,268
Non-current assets		13,514			13,218
Total assets	$	30,754		$	30,058

Current liabilities	$	16,233		$	21,115
Non-current liabilities		6,277			1,397
Long-term debt		15,809			12,670
Stockholders’ deficit		(7,565	)		(5,124	)
Total liabilities and stockholders’ deficit	$	30,754		$	30,058

Total carrying value	$	14,685		$	13,333

(1) Includes (ICG voting ownership): Acquirgy (25%), CIML (38%), Freeborders (31%) and WhiteFence (36%).

(2) Includes (ICG voting ownership): Acquirgy (25%), Freeborders (31%) and WhiteFence (36%).

As of June 30, 2013, ICG’s aggregate carrying value in equity method companies exceeded ICG’s share of the net assets of those companies by $17.3 million. Of this excess, $15.1 million is allocated to goodwill, which is not amortized, and $2.2 million is allocated to intangibles, which are generally being amortized over five years. As of December 31, 2012, this excess was $15.3 million, $12.0 million of which was allocated to goodwill, and $3.3 million of which was allocated to intangibles. Amortization expense associated with these intangibles for the three and six months ended June 30, 2013 was less than $0.1 million and $0.1 million, respectively. Amortization expense associated with these intangibles for the three and six months ended June 30, 2012 was $0.3 million and $0.6 million, respectively. That amortization expense is included in the table below in the line item “Amortization of intangible assets” and is included in the line item “Equity loss” on ICG’s Consolidated Statements of Operations.

Results of Operations (Unaudited)

	Three Months Ended June 30,
	2013 (1)			2012 (2)			2013 (3)			2012 (2)
	(in thousands)
Revenue	$	12,490		$	29,751		$	25,595		$	59,105

Net income (loss)	$	(2,976	)	$	(7,094	)	$	(5,114	)	$	(12,561	)

Equity income (loss) excluding impairments and amortization of intangible assets	$	(875	)	$	(2,909	)	$	(1,555	)	$	(4,947	)
Amortization of intangible assets	$	(48	)		(327	)	$	(69	)		(592	)
Total equity income (loss)	$	(923	)	$	(3,236	)	$	(1,624	)	$	(5,539	)

(1) Includes Acquirgy, CIML, Freeborders and WhiteFence.

(2) Includes Acquirgy, Bolt, CIML, Freeborders, GoIndustry-DoveBid plc (“GoIndustry”) and WhiteFence.

(3) Includes Acquirgy, CIML (from February 20, 2013, the date of deconsolidation), Freeborders and WhiteFence.

Impairments – Equity Companies

ICG performs ongoing business reviews of its equity method companies to determine whether ICG’s carrying value in those companies is impaired. ICG determined its carrying value in its equity method companies was not impaired during the three- and six-month periods ended June 30, 2013 and 2012.

Other Equity Company Information

During the six months ended June 30, 2012, ICG participated in a follow-on financing transaction for Bolt. At that time, ICG acquired $9.0 million of Bolt preferred stock; as a result of the transaction, ICG’s ownership in Bolt increased from 26% to 38%. ICG completed a purchase price allocation related to this transaction, which resulted in an allocation of the purchase price to equity method intangible assets that were to be amortized over five years and equity method goodwill, which was not amortized.

Marketable Securities

Marketable securities represent ICG’s holdings of publicly-traded equity securities and are accounted for as available-for-sale securities. On December 30, 2011, StarCite, one of ICG’s prior equity method companies, was acquired by Active. ICG’s portion of the sale proceeds included shares of Active common stock. During the three and six months ended June 30, 2013, ICG sold 150,233 shares of Active common stock at an average price of $5.10 for total proceeds of $0.8 million. During the three and six months ended June 30, 2012, ICG sold 447,057 shares of Active common stock at an average price of $16.88 for total proceeds of $7.5 million. ICG recorded a gain on the sale of those securities of less than $0.1 million and $1.4 million in the three- and six-month periods ended June 30, 2013 and 2012, respectively. Those gains are included in the line item “Other income (loss), net” on ICG’s Consolidated Statements of Operations for the respective three- and six-month periods. ICG does not hold any shares of Active common stock as of June 30, 2013. The fair value of the shares of Active common stock held by ICG as of December 31, 2012 of $0.7 million is reflected in both the line item “Marketable Securities” ($0.3 million) and the line item “Prepaid expenses and other current assets” ($0.4 million) on ICG’s Consolidated Balance Sheets.

Cost Method Companies

ICG’s carrying value of its holdings in cost method companies was $15.0 million and $13.0 million as June 30, 2013 and December 31, 2012, respectively. Those amounts are reflected in the line item “Cost method companies” on ICG’s Consolidated Balance Sheets as of the relevant dates.

ICG performs ongoing business reviews of its cost method companies to determine whether ICG’s carrying value in those companies is impaired. ICG determined its carrying value in its cost method companies was not impaired during the three- and six-month periods ended June 30, 2013 and 2012.

ICG owns approximately 9% of Anthem Ventures Fund, L.P. (formerly eColony, Inc.) and Anthem Ventures Annex Fund, L.P. (collectively, “Anthem”), which invest in technology companies. ICG acquired its interest in Anthem in 2000 and currently has no carrying value in Anthem. Accordingly, the receipt of distributions from Anthem by ICG would result in a gain at the time ICG receives those distributions.