FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2011

Marketable Equity Securities

As of June 30, 2011 the Company’s investments in marketable equity securities are based on the June 30, 2011 stock price as reflected in the OTC markets, reduced by a discount factor if those shares have selling restrictions. These marketable equity securities are summarized as follows:

	Equity Securities Cost		Aggregate Unrealized Gains (Loss)			Equity Securities Aggregated Fair Value
Marketable Equity Securities-Available for Sale:
AccessKey IP, Inc.	$	94,500	$	(88,500	)	$	6,000
Bio-Matrix Scientific Group, Inc.		105,000		(84,875	)		20,125

Total Marketable Equity Securities-Available for Sale	$	199,500	$	(173,375	)	$	26,125

The unrealized gains (losses) are presented in the comprehensive income (loss) portion of the unaudited consolidated statements of operations and comprehensive income (loss) and is included in the accumulated other comprehensive income – unrealized gain (loss) on marketable equity securities on the balance sheet.

The levels of the fair value measurements for marketable equity securities are summarized as follows:

	Fair Value Measurements Using:
	Quoted Prices in Active Markets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Marketable Equity Securities – December 31, 2010	$ 34,500	$ -	$ 522,450

Sale of equity securities	-	-	(440,699)

Total unrealized gains (losses)
Included in other comprehensive income	(14,375)	-	( 75,751)

Marketable Equity Securities – June 30, 2011	$ 20,125	$ -	$ 6,000

Non-Marketable Securities:

The June 30, 2011 fair value of the non-marketable securities based on the Black-Scholes model is summarized as follows:

Equity Securities Cost

Aggregate Unrealized

Gains (Losses)

Equity Securities Aggregated Fair Value

AccessKey IP, Inc. warrants

$ 77,500

$ (47,500)

$ 30,000

The levels of the fair value measurement for the non-marketable securities are summarized as follows:

	Fair Value Measurements Using:
	Quoted Prices in Active Markets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Non-Marketable Securities– December 31, 2010			$ 51,000

Total unrealized losses			(21,000)

Non-Marketable Securities– June 30, 2011	$ -	$ -	$ 30,000

- Definition

This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References+ Details

PHYHEALTH Corp 10-Q