INVESTMENT IN SUBSIDAIRIES

3 Months Ended

Mar. 31, 2013

DECISIONPOINT SYSTEMS, INC.

Investments in advance to affiliates subsidiaries associates and joint ventures

3.	INVESTMENT IN DECISIONPOINT SYSTEMS, INC.

As further described in Note #11, on July 31, 2012, the Company sold the Illume Mobile assets and operations to DecisionPoint Systems, Inc. (DPSI) for $250,000 cash and 617,284 shares of DPSI stock valued at $1.215 per share or a total of $750,000. In accordance with ASU 2011-05, the stock is classified as available-for-sale equity and the unrealized market gains or losses are recorded as Other Comprehensive Income. Due to the volatility and thin trading of DPSI shares, the Company has determined that the fair market value on the measurement date will be computed from the volume-weighted average trading price for the entire month of March 2013. The unrealized loss on the investment consists of the following:

DPSI stock	FMV		of Shares		March 31, 2013			December 31, 2012

Basis at acquisition
July 31, 2012	$	1.215		617,284	$	750,000		$	-
Quarter ended
March 31, 2013	$	1.183		617,284	$	730,433		$	-
Unrealized market loss					$	(19,567	)	$	-

MEDL MOBILE HOLDINGS, INC.

Investment [Line Items]

Investments in advance to affiliates subsidiaries associates and joint ventures

4.	INVESTMENT IN MEDL MOBILE HOLDINGS, INC.

On March 8, 2013, the Company entered into an agreement with MEDL Mobile Holdings, Inc. (MEDL) to bring forth a program that offers access to the Company’s ‘816’ patent to app developers. MEDL received the right to grant a license to its clients on a ‘per install’ basis on a revenue sharing arrangement with the Company. As a part of the agreement, each Company received $50,000 worth of the other’s stock with the price per share determined by the Volume Weighted Average Price (“VWAP”) for each stock for the last twenty trading days prior to execution of the agreement. The Company received 147,692 shares of MEDL stock priced at $0.34 per share the MEDL received 2,500,000 shares of the Company’s stock priced at $0.02 per share.

In accordance with ASU 2011-05, the stock is classified as available-for-sale equity and the unrealized market gains or losses are recorded as Other Comprehensive Income. Due to the volatility of MEDL shares, the Company has determined that the fair market value on the measurement date will be computed from the volume-weighted average trading price for the days held during March 2013. The unrealized gain on the investment consists of the following:

			Number
MEDL stock	FMV		of Shares		March 31, 2013		December 31, 2012

Basis at acquisition
March 8, 2013	$	0.340		147,692	$	50,000	$	-
Quarter ended
March 31, 2013	$	0.408		147,692	$	60,272	$	-
Unrealized market gain					$	10,272	$	-