Investments

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

Note 4. Investments

FluoraPharma, Inc. In May 2011, FluoroPharma, Inc. ("FPI") entered into a reverse merger with FPMI.  In connection with this transaction, the Company¹s warrants and options in FPI were exchanged for warrants and options in FPMI. During the quarter ended June 30, 2012, all options held by the Company in FPMI were exchanged for substantially identical warrants in FPMI.   At June 30, 2012, the Company held 164,373 warrants exercisable at $.50 that expire in April 2014 and 373,917 warrants exercisable at $1.00 that expire on February 15, 2019. The Company continues to deem the value of the FPMI Warrants to be fully impaired at June 30, 2012.

 Genomics USA, Inc. (dba GMS Biotech). In May 2006, the Company purchased 144,024 shares of GUSA common stock for $200,000. As of June 30, 2012, the Company owned approximately 2% of the issued and outstanding capital stock of GUSA.  The Company uses the cost method to account for this investment since the Company does not control nor have the ability to exercise significant influence over operating and financial policies. In accordance with the cost method, the investment is recorded at cost and impairment is considered in accordance with the Company’s impairment policy. No impairment was recognized for the periods ended June 30, 2012 and June 30, 2011.

The Company currently has a note receivable from GUSA in the principal amount of $200,000, convertible into ten percent of the issued and outstanding common stock of GUSA (the “GUSA Note”), which GUSA Note, together with accrued interest of approximately $87,689, is currently due and payable. The Company intends to send notice to GUSA demanding payment of all amounts due under the terms of the GUSA Note.

NuRx Pharmaceuticals, Inc. ("NuRx").  In July 2011, the Company settled all disputes between the parties relating to the Company's interest in QN Diagnostics, LLC, a joint venture between the Company and NuRx.  Under the terms of the settlement, the Company received 12.0 million shares of common stock in NuRx.  As a result of the issuance, the Company holds an approximate 25% equity interest in NuRx. The Company continues to deem the value of the NuRx shares to be fully impaired at June 30, 2012.