INVESTMENT IN EQUITY SECURITIES (IMAGION BIOSYSTEMS)

6 Months Ended

Jun. 30, 2020

INVESTMENT IN EQUITY SECURITIES (IMAGION BIOSYSTEMS)

NOTE 3 - INVESTMENT IN EQUITY SECURITIES (IMAGION BIOSYSTEMS)

As of June 30, 2020, the Company owns 56,516,508 shares of Imagion (1,000,000 restricted shares for prepaid notes interests have not been transferred – see Note 4), resulting in a noncontrolling interest of Imagion’s issued and outstanding common stock. Initially, the Company held approximately 31% of Imagion’s total issued and outstanding common stock and later was decreased to approximately 7%. Based upon Imagion’s trading price on June 30, 2020, approximately $0.019 per share, the fair value of the Imagion shares was approximately $1,070,000. During the three and six months ended June 30, 2020, the Company recorded a gain on its investment of $662,000 and $109,000, receptively.

On March 25, 2020, Imagion announced that shareholders will be offered two new shares for every five shares held at March 30, 2020. With new share, shareholders will receive a free attaching new option. New option will have an exercise price of 3 cents (Australian currency) and term of three years. The offer closed on April 20, 2020. The Company had the right to buy 22,606,603 new shares of Imagion and the market value at March 31, 2020 is $13,813. The Company elected not to purchase additional shares of Imagion and the option expired in April 2020.

During the six months ended June 30, 2020, the Company sold 4,000,000 shares of Imagion and received cash proceeds of $84,000.

Below is reconciliation for the changes to the investment in Imagion for the six months ended June 30, 2020:

Balance as of December 31, 2019	$	1,045,000
Change due to the sale of securities		(84,000	)
Change in the fair value of securities		109,000
Balance as of June 30, 2020	$	1,070,000