Other Assets

12 Months Ended

Dec. 31, 2019

(8)	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.

The Company also received a warrant to acquire 16,949,306 shares of Quu common stock that terminates on August 22, 2029.

As a result of the additional investment, the Company holds approximately 35% of the outstanding shares of Quu. On August 22, 2019, the Company adjusted the initial investment to fair value and recognized a loss of $0.1 million. As of December 31, 2019, the carrying amount of the investment in Quu is $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, an esports organization, in exchange for 3,750,000 shares. The Company acquired an additional 416,666 shares in the third quarter of 2019 for $0.5 million in cash.

As of December 31, 2019, the Company holds approximately 45% of the outstanding shares of Renegades and the carrying amount of the investment in Renegades is $5.7 million. In January 2020, the Company acquired an additional

833,334 shares for an aggregate of $1.0 million in cash. As a result of the additional investment

in January 2020, the Company is currently evaluating if control was obtained and will finalize its conclusion in the first quarter of 2020.

The Company’s share of earnings from Quu and Renegades is reported in equity in earnings of unconsolidated affiliates, net of tax in the accompanying consolidated statement of comprehensive income for the year ended December 31, 2019.