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COMMITMENTS AND CONTINGENCIES
12 Months Ended
Sep. 30, 2011
COMMITMENTS AND CONTINGENCIES  
COMMITMENTS AND CONTINGENCIES
10. COMMITMENTS AND CONTINGENCIES
 
OPERATING LEASES
During the year ended  September  30,  2011,  the  Company  moved and now shares
office space with an entity owned by a related party and does not pay rent. Rent
expense for the prior lease in Pacoima, California for the years ended September
30,  2011 and 2010 was $1,765 and $7,061,  respectively.  In January of 2011 the
company abandoned it's Florida operation due to our inability to pay the lease.
 
PENDING PROPERTY ACQUISITION
On November 27, 2007, the Company entered into a Purchase and Sale Agreement and
Joint Escrow Instructions to acquire real property in Pescadero,  California for
a  purchase   price  of   $5,400,000.   The  property  has  been  improved  with
approximately  700,000  square  feet of  greenhouses  and the  Company  plans to
continue to operate the property as a nursery. In connection with the agreement,
the  Company  deposited  $50,000  with  the  escrow  agent  of  which a  $10,000
non-refundable  deposit was released to the sellers.  In December  2007, per the
terms of the agreement, the Company was to have deposited an additional $100,000
into the escrow  account on or before  December  14, 2007 if the  Company's  due
diligence  had been  completed.  Said  due  diligence  has not  been  completed,
therefore  the deposit has not been made.  The remaining  $5,350,000  was due by
December 28, 2007, the original  closing date, and then extended to May 27, 2008
for additional  consideration of $50,000. In fiscal 2009, the Company determined
that it was  unlikely  the  advanced  funds would be able to be  recovered,  and
recorded a provision for loss on the deposit in the amount of $50,000.
 
LITIGATION
On or about  September  21,  2007,  Stockhausen,  Inc.  ("Stockhausen")  filed a
Complaint in the United States District Court,  for the Middle District of North
Carolina,  against us seeking  damages.  The parties  entered  into a settlement
agreement  on June 2, 2010.  Under the  settlement  agreement,  we agreed to pay
Stockhausen $250,000 on or before June 23, 2010 as a compromise to Stockhausen's
claims that currently total $603,921. We further agreed that we would consent to
the entry of a  Judgment  against  us in favor of  Stockhausen  in the amount of
$603,921 if we failed to make complete and timely payment as agreed. The Company
was  unable to make the agreed  upon  payment  and on July 8, 2010,  Stockhausen
entered a judgment for the above stated amount against the Company.  The Company
has accrued  $603,921  related to the  litigation  as of September  30, 2011 and
2010, which is included in accounts payable in the accompanying balance sheets.
 
On or  about  October  4,  2007,  Raymond  J.  Nielsen  and  Cheryl  K.  Nielsen
(collectively,  "Plaintiffs"),  filed a Complaint  in the  Circuit  Court in the
Sixth  Judicial  District of Pasco County,  Florida,  against us and Smart World
(collectively "Defendants") seeking damages, declaratory, and injunctive relief.
Plaintiffs  allege  that  Defendants  failed  to pay  interest  when  due on the
Convertible Debenture from Defendants to Plaintiffs and, thus, the entire amount
of the  Convertible  Debenture  is  accelerated  and  Plaintiffs  are  seeking a
judgment in the amount of $1,500,000  plus  interest.  On December 29, 2009, the
matter was  settled for  $400,000  and the Company had 60 days in which to remit
the amount or a judgment in the entire  amount  claimed will be entered  against
us. The Company was not able to meet the terms of the  settlement  and have been
actively   communicating  with  the  Plaintiffs  to  extend  the  terms  of  the
settlement.