Investments

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Note 8. Investments

	Warrants Held			Options Held			Recognized Gain/(Loss)
Balance as of December 31, 2011		373,917			277,500		-
Options exchanged during 2012		277,500			(277,500	)	-
Warrants issued for consideration of debt extension		(277,500	)		-			115,752
Balance as of December 31, 2012		373,917			-			115,752

In May 2011, FluoroPharma, Inc. ("FPI") entered into a reverse merger with FPMI. In connection with this transaction, the Company's warrants and options in FPI were exchanged for warrants and options in FPMI. During the year ended December 31, 2012, all options held by the Company in FPMI were exchanged for substantially identical warrants in FPMI. During 2012, the Company issued 277,500 warrants, exercisable at $.50 and set to expire April 19, 2014, in consideration for the extension on the terms of notes set to mature during the year. The Company recognized a gain in the amount of $115,752 as a result of the warrants issued in consideration of debt extension. As of December 31, 2012, the Company retained control over 373,917 warrants exercisable at $1.00 that are set to expire on February 15, 2019. The Company continues to deem the value of the $1.00 FPMI warrants to be fully impaired at December 31, 2012.