17. Equity Method Investments

Investments in partnerships, joint ventures, and less-than-majority owned subsidiaries in which the Company has significant influence are accounted for under the equity method. As of December 31, 2014 and 2013, the Company had the following equity investments.

IntelliQlik, LLC

In conjunction with the Hyperspring acquisition, the Company invested $250,000 for a 50% interest in IntelliQlik, LLC ("IntelliQlik") and is obligated to contribute an additional $250,000 upon the attainment by IntelliQlik of certain milestones as of September 30, 2015. IntelliQlik is jointly owned by GSE and a former member of Hyperspring. IntelliQlik will develop a software platform for online learning and learning management for all energy sectors, including nuclear, thermal, oil & gas, and hydro-electric. The IntelliQlik platform will also include applications to support plant engineering, operations and maintenance, as well as provide a platform for Software as a Service to deliver learning materials, industry recruitment services, and specialized simulator training programs.

The Company determined that the outcome of IntelliQlik reaching the milestones was probable and therefore evaluated the contingent consideration liability under Accounting Standards Codification ("ASC") 450-20-30, Loss Contingencies - Initial Measurement. Based on the progress of IntelliQlik and the timeframe to achieve the milestones, the Company estimates that there is a significant probability that IntelliQlik will reach the milestones by September 2015 and accordingly has recorded a contingent liability of $213,000 at December 31, 2014 which is included in the current contingent consideration line of the consolidated balance sheet. Equity gains and losses incurred by IntelliQlik are recorded within the Performance Improvement Solutions segment according to the Company's 50% interest. As of December 31, 2014, the carrying value of our investment was $440,000.

General Simulation Engineering RUS Limited Liability Company

On May 22, 2013, the Company and Electrobalt Holding, a Russian Federation closed joint-stock company, created a 50/50 joint venture called General Simulation Engineering RUS Limited Liability Company ("GSE RUS"). GSE's equity contribution was 1.5 million Roubles ($46,000) and was paid to the joint venture in November 2013. As of December 31, 2014 and 2013, the carrying value of our investment was $0 and $38,000, respectively.

GSE-UNIS Simulation Technology Co., Ltd

In 2013, the Company agreed to sell its 49% stake in GSE-UNIS Simulation Technology Co., Ltd ("GSE-UNIS") to its partner, Beijing Unis Venture Capital Co., Ltd. and terminate the joint venture agreement as of July 31, 2013. The Company had accounted for this joint venture as an equity method investment. The sales price was basically equivalent to the Company's investment in GSE-UNIS as of the closing date. In 2013, the Company agreed to sell its 49% stake in GSE-UNIS Simulation Engineering Co., Ltd to its partner, Beijing Unis Venture Capital Co., Ltd. for $1.2 million and terminate the joint venture agreement as of July 31, 2013. As of December 31, 2013 we had classified this receivable within Other Current Assets. We received the $1.2 million in December 2014.

Schedule of Equity Losses

We had the following net losses of our equity method investments during the years ended December 31, 2014 and 2013. The losses from equity method investments are included in Other income (expense), net within the Consolidated Statement of Operations.

(in thousands)	Years ended December 31,
	2014			2013
Equity Method Investment
IntelliQlik, LLC	$	(17	)	$	-
General Simulation Engineering RUS LLC		(38	)		(8	)
GSE-UNIS Simulation Technology , Ltd.		-			(148	)
Total loss from equity method investments	$	(55	)	$	(156	)