June 30,

December 31,

2009

2008

(Unaudited)

(Audited)

ASSETS

Current Assets:

          Cash

$

124,589 

$

213,988 

          Accounts receivable

29,130 

-- 

          Prepaids

3,712 

3,462 

          Note receivable

18,000 

18,000 

          Note receivable – related party

1,762,636 

1,924,731 

          Other receivable

50,000 

40,000 

          Inventory – homes for sale

48,891 

100,094 

          Inventory – food, beverage & gas

50,000 

-- 

          Assets held for sale, net of liabilities of $41,919 and $373,838 at

               June 30, 2009 and December 31, 2008, respectively

490,015 

53,807 

          Other asset

21,186 

15,862 

                   Total current assets

2,598,159 

2,369,944 

Investment in unconsolidated investee

80,487 

106,817 

Fixed asset, net of accumulated depreciation of  $1,480

      and $0 at June 30, 2009 and December 31, 2008, respectively

56,420 

5,000 

Goodwill

337,100 

-- 

Domain names

50,000 

50,000 

                   Total Assets

$

3,122,166 

$

2,531,761 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current Liabilities:

           Accounts payable and accrued expenses

$

310,669 

$

83,148 

           Accrued consulting – related party

95,694 

95,694 

           Accrued expense- related party

38,783 

-- 

           Deferred Revenues

78,318 

-- 

           Unsecured liability including accrued interest of $16,667 and

              $16,667 at June 30, 2009 and December 31, 2008, respectively

616,249 

616,249 

           Notes payable including accrued interest of $224,345 and

              $139,085 at June 30, 2009 and December 31, 2008, respectively

5,762,938 

3,757,556 

           Convertible debentures including interest of $61,823 and $56,835

               at June 30, 2009 and December 31, 2008, respectively

166,823 

161,835 

           Debt derivative

34,990 

104,956 

                   Total current liabilities

7,104,464 

4,819,438 

Long Term Liabilities:

            Long term note payable including accrued interest of $6,132 and

              $0 at June 30, 2009 and December 31, 2008, respectively

381,632 

20,000 

                   Total liabilities

7,486,987 

4,839,438 

Stockholders’ Deficit:

           Common stock: $0.001 par value; authorized 235,000,000 shares;

              issued and outstanding 95,126,044 and 4,597,473

              at June 30, 2009 and December 31, 2008, respectively

95,126 

4,597 

           Additional paid-in capital

10,924,393 

9,839,920 

           Accumulated deficit

(14,690,613)

(12,152,194)

           Stock subscription receivable

(580,000)

-- 

                   Total stockholders’ deficit

(4,251,092)

(2,307,677)

     Non-controlling interest

(112,836)

-- 

                  Total Liabilities and Stockholders’ Deficit

$

3,122,166 

$

2,531,761 

For the six months ended

June 30,

2009

2008

Cash flows from operating activities

Net loss

$

(2,538,419)

$

(1,367,835)

Adjustments to reconcile net loss

to net cash used in operating activities:

Depreciation and amortization expense

24,387 

34,077 

Stock issued for services

95,000 

389,097 

Stock issued for accounts payables

               --

11,500

Stock issued for debt and interest expense

-- 

50,000 

Stock issued for officer compensation

500,000 

500,000

Gain on deconsolidation of subsidiary

(346,404)

-- 

Loss on discontinued operations

1,373 

-- 

Non-controlling interest

(237,836) 

-- 

Fair value of debt derivative

(69,966) 

245,589

Gain on extinguishment of debt

              --

(879,632)

Equity in (earnings) loss of unconsolidated subsidiaries

118,257 

-- 

Impairment of fixed assets

34,691

--

Impairment of intangible assets and goodwill

188,067

--

Change in operating assets and liabilities:

Decrease in restricted cash – security deposits

-- 

4,716

(Increase)/decrease in accounts receivable

(29,130)

771

      (Increase) in prepaid expense

(2,673)

(471)

Decrease/(increase) in notes receivable-related party

162,095

(40,317)

(Increase) in other receivable

(10,000) 

-- 

Decrease in inventory – homes for sale

51,203 

-- 

(Increase) in inventory – food, beverage, oil

(63,541)

-- 

Decrease/(increase) in other assets

(24,029) 

719 

Increase in accounts payable and accrued expense

280,344 

24,946 

Increase in deferred revenues

78,318

--

(Decrease) in security deposits

-- 

(2,896)

Increase in accrued interest

127,380 

57,829 

   Net cash used in operating activities

(1,660,883)

(971,907)

Cash flows from investing activities:

Acquisition of business, net of equipment purchased

(761,054)

-- 

Proceeds from discontinued operations and gain

350,000 

-- 

     on deconsolidation of subsidiary

Assets held for sale

53,807 

-- 

Purchase of equipment

(348,964)

(5,000) 

Investment in unconsolidated subsidiary

(91,927)

-- 

   Net cash used in investment activities

(798,138)

(5,000)

Cash flows from financing activities:

Proceeds from notes payable

2,420,360 

1,115,000 

Payments for notes payable and unsecured liability

(50,738)

(50,308)

Accrued expense-related party

--

(100,000)

   Net cash provided by financing activities

2,369,622 

964,692 

(Decrease) increase in cash

(89,399) 

(12,215)

Cash at beginning of period

213,988 

45,499 

Cash at end of period

$

124,589 

$

33,284