Investments

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

Note 4. Investments

	Warrants Held		Recognized Gain/(Loss)
Balance as of December 31, 2012		373,917	115,752
Warrants issued in connection with notes payable during the three months ended March 31, 2013		(37,000)	16,845
Balance as of March 31, 2013		336,917	132,597

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 three months ended March 31, 2013, 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.  During the three months ended March 31, 2013, the Company recognized gain of $16,845 as a result of the warrants issued in connection with the notes issued during the period.  As of March 31, 2013, the Company retained control over 336,917 warrants exercisable at $1.00 that are set to expire on February 15, 2019.  The Company continues to deem the value of these warrants to be fully impaired at March 31, 2013.