Ownership Interests in and Advances to Partner Companies

The following summarizes the carrying value of the Company’s ownership interests in and advances to partner companies.



	September 30, 2017		December 31, 2016
	(Unaudited - In thousands)
Equity Method:
Partner companies	$	113,869	$	154,219
Private equity funds	444		447
	114,313		154,666
Cost Method:
Other holdings	2,762		2,112
Private equity funds	1,334		1,550
	4,096		3,662
Advances to partner companies	20,289		25,142
	$	138,698	$	183,470

In August 2017, Good Start Genetics, Inc. was acquired by Invitae Corporation ("Invitae"). The Company received 414,237 shares of Invitae common stock worth $4.3 million on the closing date in connection with the transaction, excluding 137,125 shares of Invitae common stock worth $1.4 million on the closing date which will be held in escrow until August 2018. The Company recognized a gain of $4.3 million on the transaction, which is included in Equity income (loss) in the Consolidated Statements of Operations for the three and nine months ended September 30, 2017. The Invitae shares are classified as Trading securities and recorded at fair value on the Consolidated Balance Sheet at September 30, 2017.

In March 2017, the Company sold its interest in partner company Nexxt, Inc., formerly Beyond.com, back to Nexxt, Inc. for $26.0 million. The Company received $15.5 million in cash and a three-year, $10.5 million note for the balance due, which accrues interest at a rate of 9.5% per annum. The receipt of the $15.5 million in cash resulted in a gain of $0.1 million which is included in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2017. The $10.5 million note is fully reserved and has a carrying value of zero as of September 30, 2017. A gain will be recorded when the note is repaid. Interest is payable annually and interest income is recorded as earned throughout the year.

In the second quarter of 2017, the Company recognized an impairment charge of $3.6 million related to Spongecell, Inc. which is reflected in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2017. The impairment was based on the value at which the Company expects Spongecell to raise its next financing round.

In the first and second quarters of 2017, the Company recognized impairment charges of $2.7 million and $2.2 million, respectively, related to Pneuron, Inc. which is reflected in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2017. The impairments were due to a decline in revenue and an inability to attract third party investors or acquirers. Pneuron has ceased business operations and the adjusted carrying value of the Company's interest in Pneuron is $0.0 million at September 30, 2017.

In April 2016, Putney, Inc. was acquired by Dechra Pharmaceuticals Plc. The Company received $58.6 million in cash proceeds in connection with the transaction. In April 2017, the Company received an additional $0.7 million in connection with the expiration of the final escrow period resulting in a gain of $0.7 million which is included in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2017.

In July 2015, Quantia, Inc. was acquired by Physicians Interactive. The Company received $7.8 million in initial cash proceeds in connection with the transaction in July 2015 and $0.6 million in connection with the expiration of the initial escrow period in July 2016. In January 2017, the Company received an additional $0.6 million in connection with the expiration of the final escrow period resulting in a gain of $0.6 million which is included in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2017.