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, 2019		December 31, 2018
	(Unaudited - In thousands)
Equity Method Companies:
Partner companies	$	34,871	$	64,097
Private equity funds	392		392
	35,263		64,489
Other Companies:
Partner companies and other holdings	27,031		15,260
Private equity funds	463		511
	27,494		15,771
Advances to partner companies	16,888		15,325
	$	79,645	$	95,585

In January 2019, Propeller was acquired by another entity for cash. The Company received $41.5 million in cash proceeds in connection with the transaction, excluding $0.8 million of amounts held in escrow that may be released on various dates on or before January 2020. The Company recognized a gain of $34.9 million, which is included in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2019.

In January 2019, Brickwork merged into another privately-held company. The Company received a preferred equity interest in the acquiror and accounts for this interest as an equity interest without a readily determinable fair value. The Company did not recognize a gain or loss in 2019 as a result of this transaction.

In May 2019, Transactis was acquired by another entity for cash. To date, the Company received $57.5 million in cash proceeds in connection with the transaction, excluding certain amounts that continue to be held in escrow that may be released on various dates on or before May 2020. The Company has recognized gains of $50.7 million, which are included in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2019.

During the nine months ended September 30, 2019 and 2018, the Company recognized impairments of $3.0 million related to NovaSom and $11.3 million related to Apprenda and CloudMine, respectively, which are reflected in Equity income (loss) in the consolidated Statement of Operations. The impairment in 2019 was the result of NovaSom Inc.'s August 2019 bankruptcy filing. There were no impairments during the three months ended September 30, 2019. The impairment during the three months ended September 30, 2018 of $4.8 million related to CloudMine.

During the nine months ended September 30, 2019, the Company ceased accounting for T-REX Group and Hoopla under the equity method as a result of losing our ability to exercise significant influence.

During the nine months ended September 30, 2019, the Company recorded $4.5 million of non-cash gains related to the increase in the value of certain non-partner company equity securities based upon observable price changes.

Summarized Financial Information

The following table summarizes the statement of operations data for any partner companies accounted for under the equity method for the three and nine months ended September 30, 2019 and 2018, respectively. These results have been compiled from the respective companies financial statements, reflect certain historical adjustments, and are reported on a one quarter lag basis. Results of operations of the companies are excluded for periods prior to their acquisition, subsequent to their disposition and subsequent to the discontinuation of equity method of accounting. Historical results are not adjusted when the Company exits, writes-off or discontinues the equity method of accounting.



	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
	(Unaudited - In thousands)
Results of Operations:
Revenue	$	28,940		$	42,396		$	112,540		$	241,023
Gross profit	$	14,448		$	23,624		$	61,401		$	157,952
Net loss	$	(30,470	)	$	(35,063	)	$	(99,282	)	$	(121,440	)