Segment Reporting

9 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 11 — SEGMENT REPORTING

The Company has three lines of business, which are (1) organic fertilizer, (2) vertical farming and (3) industrial wastewater treatment and based on the nature of products and services offered, the Company has determined each line of business is a reportable segment at September 30, 2011.

The Company evaluates performance based on several factors, of which the primary financial measure is business segment operating income. There were no intersegment sales for the three and nine months ended September 30, 2011. The discreet financial information is presented below as of and for the three and nine month periods ended September 30, 2011:

	For the Three Months Ended September 30, 2011
										Corporate
	Organic			Vertical			Industrial			and
	Fertilizer			Farming			Wastewater			Eliminations			Consolidated
Revenues	$	579,831		$	—		$	107,828		$	—		$	687,659
Operating loss (1)		(186,274	)		(465,529	)		(53,260	)		(705,653	)		(1,410,716	)
Depreciation and amortization(2)		106,662			161,821			33,335			55,568			357,386
Interest expense(3)		—			1,824			—			1,409,981			1,411,805
Net loss		(186,274	)		(512,277	)		(53,260	)		(5,194,521	)		(5,946,332	)

	For the Nine Months Ended September 30, 2011
										Corporate
	Organic			Vertical			Industrial			and
	Fertilizer			Farming			Wastewater			Eliminations			Consolidated
Revenues	$	2,497,923		$	—		$	308,622		$	—		$	2,806,545
Operating loss (1)		(256,828	)		(4,023,305	)		(104,324	)		(5,078,296	)		(9,462,753	)
Depreciation and amortization(2)		317,946			484,753			72,222			393,499			1,268,420
Interest expense(3)		—			13,898			—			7,238,153			7,252,051
Net loss		(256,828	)		(3,841,893	)		(104,324	)		(4,712,418	)		(8,915,463	)
Total assets (4)		3,556,195			10,667,097			2,049,482			916,439			17,189,213
Goodwill		—			223,787			—			—			223,787
Property and equipment additions		155,062			2,255			1,600,000			—			1,757,317

(1) Operating income (loss) of the principal businesses exclude corporate compensation, marketing expense, professional fees and other unallocated expenses.

(2)	Depreciation and amortization expense associated with property and equipment, intangibles and deferred financing fees. Corporate amortization expense relates to deferred financing fees.
(3)	Corporate interest expense is primarily related to amortization of discounts on convertible notes payable.
(4)	Total business assets are the owned or allocated assets used by each business. Corporate assets consist of cash, prepaid expenses, certain other assets and deferred financing costs.

As of September 30, 2010, the Company was a single reportable segment.

Revenues are attributable to geographic areas based on the locations of the customers, which are primarily within the continental United States. The fertilizer segment derived approximately $390,000 or 67% of its revenues from three customers (AO Farming Operations — 30%; NH3 Service Company — 20%; and Verdi Tech Services — 17%); the industrial wastewater segment derived 100% of its revenue from one customer, South Canyon Waste Systems, Inc. for the three month period ended September 30, 2011. For the nine month period ended September 30, 2011, the fertilizer segment derived approximately $1,327,000 or 54% of its revenues from four customers (Verdi Tech — 12%; American Farms — 13%; NH3 Servcies — 13%; and Crop Production Services — 16%); and the industrial wastewater segment derived 100% of its revenue from one customer, South Canyon Waste Systems, Inc. In both the three and nine month period ended September 30, 2011, the TerraSphere segment had no reportable income.