INVESTMENTS

9 Months Ended

Sep. 30, 2013

DECISIONPOINT SYSTEMS, INC.

Investments in advance to affiliates subsidiaries associates and joint ventures

2.	INVESTMENT IN DECISIONPOINT SYSTEMS, INC.

As further described in the 2012 10K, 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 third quarter of 2013. The unrealized loss on the investment consists of the following:

	Number
DPSI stock	of Shares		September 30, 2013


Basis at December 31, 2012		617,284	$	579,875

Basis at Report Date		617,284	$	442,281
Unrealized market loss			$	(137,594	)

MEDL MOBILE HOLDINGS, INC.

Investment [Line Items]

Investments in advance to affiliates subsidiaries associates and joint ventures

3.	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 entire third quarter of 2013. The unrealized loss on the investment consists of the following:

	Number
MEDL stock	of Shares		September 30, 2013


Basis at acquisition-March 8, 2013		147,692	$	50,000

Basis at Report Date		147,692	$	46,179
Unrealized market loss			$	(3,821	)

ENDEXX CORPORATION

Investment [Line Items]

Investments in advance to affiliates subsidiaries associates and joint ventures

4.	INVESTMENT IN ENDEXX CORPORATION

On June 5, 2013, the Company entered into six month agreement with Endexx Corporation (EDXC) to coordinate business planning, investor interests and intellectual property for a mobile app venture that uniquely addresses advertising market analytics. Additionally, Endexx received a variable limited ‘816’ license during the course of the business advisory engagement while its app is in development with the agreement that a permanent license will be negotiated upon completion. Endexx will pay the Company $15,000 compensation by issuing 125,000 shares of EDXC restricted stock priced at $.12 per share and the balance to be paid in cash.

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 EDXC shares, the Company has determined that the fair market value on the measurement date will be computed from the daily volume-weighted average trading price for the entire third quarter of 2013. The unrealized loss on the investment consists of the following:


	Number
EDXC stock	of Shares		September 30, 2013


Basis at acquisition-June 13,2013		125,000	$	15,000

Basis at Report Date		125,000	$	10,010
Unrealized market loss			$	(4,990	)