SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2012

Subsequent Events [Abstract]

Subsequent Events [Text Block]

21. SUBSEQUENT EVENTS

On or about May 3, 2012, the Company received notice of filing of an action in the Fifteen Judicial Circuit Court in West Palm Beach, Florida for breach of contract, conspiracy to commit securities fraud and injunctive relief against the Company and the note holder in Note 11. CONVERTIBLE DEBENTURES Ref (1). The Plaintiff is the second party referenced in Note 11. CONVERTIBLE DEBENTURES, Ref (1) who purchased the original debenture from the note holder. The principal amount outstanding excluding interest, on the debenture as of March 31, 2012 was approximately $12,700. The plaintiff is seeking damages in excess of $15,000, plus other fees. The Company believes this action is without merit, and intends to vigorously defend the action.

On or about April 27, 2012, the Company received default notice under its Mortgage Forbearance Agreement with an action to foreclose on the real property and assets of the Company underlying the mortgage. The lender has declared immediately due the full principal balance of $1,053,993, accrued interest in the amount of $5,018 through April 11, 2012, appraisal and late fees of $7,282, and $35,677 the lender advanced to satisfy delinquent property taxes not made by the Company. The Company is currently in negotiations with the lender to extend the Forbearance Agreement pursuant to terms and conditions forthcoming from the lender.

On April 18, 2012, the Company filed a Motion for Leave to Designate Responsible Third Parties on the Legal case discussed in Note 16. LEGAL. The Company motioned to have the Court designate the responsible third parties named by the Company in the Motion. Legal counsel advised the Company the court shall grant such a motion unless an objecting party establishes that the moving Defendants failed to plead sufficient facts to meet the pleading requirement of the Texas Rules of Civil Procedure. The Company believes the case is without merit and this latest motion will result in dismissal.