Other Assets

9 Months Ended

Sep. 30, 2019

(4) Other Assets

On August 22, 2019, the Company contributed an additional $1.5 million in cash to Quu, Inc. (“Quu”), a technology company, in exchange for an additional 10,000,000 shares. As a result of the additional investment, the Company holds approximately 35% of the outstanding shares of Quu. The Company is considered to have the ability to exercise significant influence over the operating and financial policies of Quu. Therefore, the investment will be accounted for using the equity method. On August 22, 2019, the Company adjusted the initial investment to fair value and recognized a loss of $0.1 million. The Company will recognize its share of the earnings or losses of Quu in the periods for which they are reported by Quu. Any loss in value of the investment that is other than a temporary decline will be recognized.

of Septem

ber 30, 2019, the carrying amount of the inves

tment in Qu

$2.2 million.

On March 1, 2019, the Company (i) issued 235,296 shares of Class A common stock with a fair value of $1.0 million, (ii) agreed to provide $1.0 million of media advertising over a three year period, and (iii) contributed $2.5 million in cash for an aggregate investment of $4.5 million in Renegades Holdings, Inc. (“Renegades”), an esports organization, in exchange for 3,750,000 shares or approximately 43% of the outstanding shares of Renegades. The Company is considered to have the ability to exercise significant influence over the operating and financial policies of Renegades. Therefore, the investment will be accounted for using the equity method. The Company will recognize its share of the earnings or losses of Renegades in the periods for which they are reported by Renegades. Any loss in value of the investment that is other than a temporary decline will be recognized. The Company acquired an additional 416,666 shares in the third quarter of 2019 for $0.5 million in cash

. The Company

will acquire an additional 416,666 shares in the fourth quarter of 2019 and an additional 416,668 shares in the first quarter of 2020 for an aggregate of $1.0 million in cash.

As of September 30, 2019, the carrying amount of the investment in Renegades is $4.9 million.

The Company’s share of earnings from Quu and Renegades is reported in earnings of unconsolidated affiliates

, net of

in the accompanying condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2019.