Investments

9 Months Ended

Sep. 30, 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 nine months ended September 30, 2013		64,000	27,753
Balance as of September 30, 2013		309,917	143,505

In May 2011, FluoroPharma, Inc. ("FPI") entered into a reverse merger with FPMI. In connection with this transaction, the Company's warrants in FPI were exchanged for warrants in FPMI.  During 2012, the Company recognized a gain in the amount of $115,752 as a result of the issuance of certain of these warrants to holders of promissory notes of the Company that matured during the period. During the nine months ended September 30, 2013, the Company recognized a gain of $27,753 as a result of the issuance of additional warrants issued as consideration for the issuance of additional promissory notes during the period.  As of September 30, 2013, the Company retained control over 309,917 warrants, the value of which has been deemed by the Company to be fully impaired. However, following the quarter ended September 30, 2013, the Company assigned an aggregate total of 200,000 of the remaining FPMI Warrants to a certain note holder and to our financial advisor. See Note 12, “Subsequent Events” for a further discussion of these transactions.