6. Equity and Cost Method Businesses

Equity Method Businesses

The following unaudited summarized financial information relates to Actua’s businesses accounted for under the equity method of accounting as of September 30, 2014 and December 31, 2013. This aggregate information has been compiled from the financial statements of those businesses.

Balance Sheets (Unaudited)

	September 30,			December 31,
	2014⁽²⁾			2013 ⁽¹⁾
	(in thousands)

Cash and cash equivalents	$	4,514		$	5,909
Other current assets		800			2,002
Non-current assets		67			399
Total assets	$	5,381		$	8,310


Current liabilities (including current portion of long-term debt)	$	9,370		$	11,085
Non-current liabilities		54			65
Long-term debt		-			-
Stockholders' deficit		(4,043	)		(2,840	)
Total liabilities and stockholders' deficit	$	5,381		$	8,310


Total carrying value	$	-		$	775

⁽¹⁾	Includes (Actua voting ownership): Acquirgy, Inc. (“Acquirgy”) (25%) and CIML (38%).

⁽²⁾	Includes (Actua voting ownership): Acquirgy (25%)).

As of September 30, 2014, Actua’s aggregate carrying value in its equity method businesses exceeded Actua’s share of the net assets of those businesses by $0.9 million. Of this excess, $0.4 million is allocated to goodwill, which is not amortized, and $0.5 million is allocated to intangibles, which are generally being amortized over five years. As of December 31, 2013, this excess was $1.3 million, $0.6 million of which was allocated to goodwill, and $0.7 million of which was allocated to intangibles. Amortization expense associated with those intangibles for the three and nine months ended September 30, 2014 was less than $0.1 million and $0.1 million, respectively. Amortization expense associated with those intangibles for each of the three and nine months ended September 30, 2013 was less than $0.1 million. 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” in Actua’s Consolidated Statements of Operations.

Results of Operations (Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014 ⁽¹⁾			2013 ⁽²⁾			2014 ⁽¹⁾			2013 ⁽²⁾
	(in thousands)						(in thousands)
Revenue	$	1,421		$	15,353		$	7,229		$	40,948

Net income (loss)	$	(548	)	$	(750	)	$	(1,186	)	$	(5,938	)


Equity income (loss) excluding impairments and
amortization of intangible assets	$	(10	)	$	(247	)	$	(546	)	$	(1,802	)
Amortization of intangible assets		(48	)		(48	)		(144	)		(117	)
Total equity income (loss)	$	(58	)	$	(295	)	$	(690	)	$	(1,919	)

⁽¹⁾	Includes Acquirgy and CIML.

⁽²⁾	Includes Acquirgy, CIML (from February 20, 2013, the date of deconsolidation), Freeborders, Inc. (“Freeborders”) and WhiteFence.

Cost Method Businesses

Actua’s carrying value of its holdings in cost method businesses was $19.6 million as of both September 30, 2014 and December 31, 2013. Those amounts are reflected in the line item “Equity and cost method businesses” in Actua’s Consolidated Balance Sheets as of the relevant dates.

Actua 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. Actua acquired its interest in Anthem in 2000 and currently has no carrying value in Anthem. Accordingly, the receipt of distributions from Anthem by Actua would result in a gain at the time Actua receives those distributions.

Impairments

Actua performs ongoing business reviews of its equity and cost method businesses to determine whether Actua’s carrying value in those businesses is impaired. Actua determined its carrying value in its equity and cost method businesses was not impaired during the three and nine months ended September 30, 2014 and the year ended December 31, 2013.