Note 5. Equity Method Investments

The Company makes investments that support its underlying business strategy and enable it to enter new markets. The carrying values of the Company's equity method investments are consistent with its ownership in the underlying net assets of the investees, except Pantaya because the Company has recorded losses in excess of the amount invested in Pantaya. Certain of the Company's equity investments are variable interest entities, for which the Company is not the primary beneficiary.

On November 3, 2016, we acquired a 25% interest in Pantaya, a newly formed joint venture with Lionsgate, to launch a Spanish-language OTT movie service. The service launched on August 1, 2017. The investment is deemed a VIE that is accounted for under the equity method. As of December 31, 2017, we have not funded any capital contributions to Pantaya. In accordance with U.S. GAAP, since we are committed to provide future capital contributions to Pantaya, we continue to record our proportionate share of losses on a one quarter lag. For the year ended December 31, 2017, we have recorded $2.8 million in Loss on equity method investments related to Pantaya, which is presented as a liability in the accompanying balance sheet. The Company's maximum exposure to loss on our investment in Pantaya is limited to our funding commitment.

On November 30, 2016, we, in partnership with Colombian content producers, Radio Television Interamericana S.A., Compania de Medios de Informacion S.A.S. and NTC Nacional de Television y Comunicaciones S.A., were awarded a ten (10) year renewable television broadcast concession license for Canal 1 in Colombia. Canal 1 is one of only three national broadcast television networks in Colombia. The partnership began operating Canal 1 on May 1, 2017. At December 31, 2017 and 2016, the Company had a 20% interest in the joint venture, which is deemed a VIE that is accounted for under the equity method. We earn a preferred return on the capital funded, which is recorded quarterly as an offset to the loss on the investment. For the year ended December 31, 2017, we have recorded $35.0 million in Equity method investments, related to Canal 1. We record the income or loss on investment on a one quarter lag. For the year ended December 31, 2017, we recorded $9.1 million, net of preferred return, in Loss on equity method investments. The Canal 1 joint venture losses to date have exceeded the capital contributions of the common equity partners and as a result, in accordance with equity method accounting, equity losses in excess of the common equity have been recorded against the next layer of the capital structure, in this case, preferred equity. The Company is currently the sole preferred equity holder in Canal 1 and therefore, the Company has recorded nearly 100% of the losses of Canal 1. For the year ended December 31, 2017, we recorded $1.7 million of income, as an offset to losses incurred in Loss on equity method investments. The net balance recorded in Equity method investments related to Canal 1 joint venture was $25.9 million and $0.1 million at December 31, 2017 and 2016, respectively. On February 7, 2018, Colombian regulatory authorities approved an increase in our ownership in the joint venture to 40%.

On April 28, 2017, we acquired a 25.5% interest in REMEZCLA, a digital media company targeting English speaking and bilingual U.S. Hispanics millennials through innovative content. For the year ended December 31, 2017, we have recorded $5.0 million in Equity method investments related to REMEZCLA. The Company records the income or loss on investment on a one quarter lag. For the year ended December 31, 2017, we have recorded $0.4 million in Loss on equity method investments related to this investment. Additionally, we earned a preferred return on capital funded. For the year ended December 31, 2017, we recorded $0.4 million of income as an offset to the loss incurred in loss on equity method investments. The net investment recorded in Equity method investments at December 31, 2017 was $5.0 million. We have no additional commitment to fund the operations of the venture which limits the maximum exposure to loss on our investment in Remezcla to our investment of $5.0 million.

The Company records the income or loss on investment on a one quarter lag. Summary unaudited financial data for our equity investments as of the nine months ended September 30, 2017 are included below:

	Equity Investees
(amounts in thousands):
Current assets	$	9,070
Non-current assets		60,526
Current liabilities		33,627
Non-current liabilities		40,168
Redeemable stock and noncontrolling interests		14,332
Net sales		4,519
Gross profit		4,241
(Loss) from continuing operations		(24,080	)
Net (loss)	$	(24,887	)