SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events [Text Block]

22. SUBSEQUENT EVENTS

On August 16, 2012 the Company’s real estate was sold through a court ordered auction for approximately $824,000, an amount approximately $300,000 less than the final judgment amount. Until the entire final judgment amount is satisfied, there can be no assurance that BBT will not take possession of certain of the Company’s assets to satisfy the judgment. Further, because this may be considered a default under the terms and conditions of the Company’s convertible debentures, there can be no assurance that the lenders may not accelerate as due immediately the full outstanding principal, interest and related default penalties.

On August 8, 2012, the Company entered into a convertible debenture agreement for $42,500 with the same lender as discussed in Note 11. CONVERTIBLE DEBENTURES ref (4) having a maturity date of May 10, 2013. Terms and conditions are consistent with those of the other debentures entered into with this lender except the conversion price shall be at a 39% discount to the average of the lowest thee closing bid prices for the common stock during the ten (10) trading days preceding the conversion request.

On July 16, 2012, the Palm Beach County Court issued an Order on the Company’s Motion to dismiss the complaint as discussed in Note 16. LEGAL related to breach of contract and conspiracy to commit securities fraud. The motion was granted without prejudice to allow the plaintiff 15 days to file an amended complaint with substantiating documentation. As of the required date the plaintiff had not filed an amended complaint, nor does the Company believe it will since it deems the complaint without merit.

On July 2, 2012, the Company entered into a convertible debenture agreement for $78,500 with the same lender as discussed in Note 11. CONVERTIBLE DEBENTURES ref (4) having a maturity date of April 5, 2013. Terms and conditions are consistent with those of the other debentures entered into with this lender except the conversion price shall be at a 39% discount to the average of the lowest thee closing bid prices for the common stock during the ten (10) trading days preceding the conversion request.

Conversions of debentures to unrestricted stock occurred subsequent to June 30, 2012, as follows (ref. number corresponds to lender reference number in Note 11. CONVERTIBLE DEBENTURES):

Ref (11) lender -

On July 3, 2012, the lender converted $798 debenture to 2,900,000 shares

On July 20, 2012, the lender converted $1,238 debenture to 4,500, 000 shares

Ref (9) lender-

On July 5, 2012, the lender converted $1,430 debenture to 5,200,000 shares

On July 19, 2012, the lender converted $1,513 debenture to 5,500,000 shares

On August 3, 2012, the lender converted $1,513 debenture to 5,500,000 shares

Ref (12) lender-

On July 6, 2012, the lender converted $5,000 to 5,000,000 shares

On August 13, 2012, the lender converted $2.347 to 2,347,030 to shares, and also converted $162 in accrued interest to 161,820 shares.

Ref (4) lender-

On July 26, 2012, the lender converted $10,000 to 5,263,158 shares

On August 6, 2012, the lender converted $7,000 to 5,384,615 shares