U.S.
Securities and Exchange Commission

Washington,
D.C. 20549





FORM
10-K





|[X] | Annual
    Report Under Section 13 or 15(d) of The Securities Exchange Act of 1934 for the Fiscal Year Ended December 31, 2011
|--- | ------------------------------------------------------------------------------------------------------------------------------



|[ 
     ] | Transition
    Report Under Section 13 or 15(d) of The Securities Exchange Act of 1934 for the Transition Period from _______ to _______
|--------- | ----------------------------------------------------------------------------------------------------------------------------------------



Commission
File Number: 333-176704



ORGANIC
PLANT HEALTH, INC.

(Exact
name of small business issuer as specified in its charter)



|Nevada                          | 27-2874167                       
|------------------------------- | ---------------------------------
|(State or other jurisdiction of | (IRS Employer Identification No.)
|incorporation or organization)  |                                  



9206
Monroe RoadCharlotte, NC 28270 USA

(Address
of principal executive offices)



(704)
841-1066

(Issuer's
telephone number)



Securities
registered under Section 12(b) of the Act:



|Title
    of each class |  | Name
                           of each exchange
        on
        which registered
|----------------------- |  | ------------------------------------------------------------------------------------
|                        |  |                                                                                     
|None                    |  | Not
    Applicable                                                                  



Securities
registered under Section 12(g) of the Exchange Act:



Common
Stock, $.001 par value

(Title
of Class)





(1)







Indicate
by check mark if the registrant is a well-know seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes
[ ]	No [x]



Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes
[ ]	No [x]



Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act
during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.

Yes
[x]	No [ ]



Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding
12 months (or such shorter period that the registrant was required to submit and post such files).

Yes
[ ]	No [ ]



Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this Chapter) is not contained
herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy of information statements
incorporated by reference in Part III of this Form 10-K or any amendments to this Form 10-K.

Yes
[ ]	No [x]



Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See definitions of “large accelerated filer”, “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act.



|Large accelerated filer   | £                                             
|------------------------- | ----------------------------------------------
|Non-accelerated filer     | £(Do not check if a smaller reporting company)
|Accelerated filer         | £                                             
|Smaller reporting company | S                                             



Indicate
by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the exchange act).

Yes
[ ] 	No [x]



The
Registrant’s revenues for its fiscal year ended December 31, 2011 were $837,159.





The aggregate market value of the voting stock
on March 31, 2012 (consisting of Common Stock, $0.001 par value per share) held by non-affiliates was approximately $2,959,711
based upon the most recent sales price ($0.185) for such Common Stock on said date March 31, 2012, there were 61,215,081shares
of our Common Stock issued and outstanding, of which approximately 15,998,436 shares were held by non-affiliates.



Number of shares of common stock, par value
$.001, outstanding as of March 31, 2012: 61,215,081





DOCUMENTS
INCORPORATED BY REFERENCE



None



CAUTIONARY
STATEMENT REGARDING FORWARD LOOKING INFORMATION



The
discussion contained in this 10-K under the Securities Exchange Act of 1934, as amended, contains forward-looking statements that
involve risks and uncertainties. The issuer's actual results could differ significantly from those discussed herein. These include
statements about our expectations, beliefs, intentions or strategies for the future, which we indicate by words or phrases such
as "anticipate," "expect," "intend," "plan," "will," "we believe,"
"the Company believes," "management believes" and similar language, including those set forth in the discussions
under "Notes to Financial Statements" and "Management's Discussion and Analysis or Plan of Operation" as well
as those discussed elsewhere in this Form 10-K. We base our forward-looking statements on information currently available to us,
and we assume no obligation to update them. Statements contained in this Form 10-K that are not historical facts are forward-looking
statements that are subject to the "safe harbor" created by the Private Securities Litigation Reform Act of 1995.



(2)







TABLE
OF CONTENTS



PART
I:



Item 1.	Business

Item 1A.	Risk
Factors

Item 1B.	Unresolved
Staff Comments

Item 2.	Properties

Item 3.	Legal
Proceedings

Item 4.	MINE SAFETY DISCLOSURES



PART
II:



Item
5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 6.	Selected
Financial Data

Item
7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item
7A.	Quantitative and Qualitative Disclosures About Market Risk

Item
8.	Financial Statements and Supplementary Data

Item
9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item
9A.	Controls and Procedures

Item
9A(T).	Controls and Procedures

Item
9B.	Other Information



PART
III:



Item 10.	Directors,
Executive Officers and Corporate Governance

Item 11.	Executive
Compensation

Item
12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item
13.	Certain Relationships and Related Transactions, and Director Independence

Item
14.	Principal Accounting Fees and Services



PART
IV:



Item
15.	Exhibits, Financial Statement Schedules



SIGNATURES:



(3)







ITEM
1. BUSINESS



History



As
used herein the terms "We", the "Company", "OPHI", the "Registrant," or the "Issuer"
refers to Organic Plant Health Inc., its subsidiary and predecessors, unless indicated otherwise. The Company was incorporated
in the State of Nevada on September 5, 2007 and subsequently changed our name to QX Bio-Tech Group,
Inc. on October 17, 2007. We further changed our name to Acumedspa Holdings, Inc. on July 30, 2009, and to Organic Plant Health
Inc. on December 15, 2010.



On
July 1, 2009, the Company entered into a Plan of Exchange between the Company, Acumedspa Group LLC (“AcuMed”), a Florida
corporation, and Consumer Care of America LLC (“CCA”), a Florida corporation, pursuant to whichthe Company
acquired 100% of the capital stock of AcuMed and 100% of the capital stock of CCA in exchange for an issuance by the Company of
6,200,000 new shares of Common Stock of the Company to the Shareholders of AcuMed and CCA. The Plan
of Exchange was approved by the Board of Directors and the Majority Shareholders of the Company on July 1, 2009.



AcuMed
and CCA were subsequently vended out after the completion of the stock exchange transaction (the “Transaction”) between
the Company and Organic Plant Health, LLC (referred to herein as “OPH”), a North Carolina Limited Liability Corporation
located in Charlotte, North Carolina. The Transaction between the Company and OPH had been accounted for as a reverse acquisition
and recapitalization of the Company and resulted in the change of control in the Company. Pursuant to an Agreement (the “Agreement”),
dated December 11, 2010, between and among the Company and Mr. Brian Sperber, an prior director and prior majority shareholder
of the Company (“Mr. Sperber”), Mr. Sperber acquired 100% interest in the common shares of AcuMed, as well as assumed
any and all liabilities of AcuMed in exchange for the payment of good and valuable consideration of not less than One Hundred
dollars ($100), and acquired 100% interest in the common shares of CCA, as well as assumed any and all liabilities of Consumer
Care Of America LLC in exchange for the payment of good and valuable consideration of not less than One Hundred dollars ($100).
As a result of the transactions consummated at the closing, the purchase gave Mr. Sperber a 'controlling interest' in Acumedspa
LLC and Consumer Care Of America LLC, both of which was no longer wholly-owned subsidiaries of the Company.The Agreement was approved by the Board of Directors of the Company on December 11, 2010.



On
December 10, 2010, the Company entered into a Plan of Exchange agreement (the “Plan of Exchange”) with the members
of OPH and Mr. Sperber, pursuant to which the Company acquired 100% of the membership interests of OPH in exchange for a transfer
of 3,985,000 shares of the Company’s Convertible Preferred Stock to OPH Members, which gaveOPH
Members a controlling interest in the Company, representing approximately 76.47% of the then issued and outstanding shares on
a dilutive basis. OPH and the Company were hereby reorganized, such that the Company acquired 100% of the ownership of OPH, and
OPH became a wholly-owned subsidiary of the Company.



The
stock exchange transaction had been accounted for as a reverse acquisition and recapitalization of the Company whereby OPHwas deemed to be the accounting acquirer (legal acquiree) and the Company to be the accounting acquiree (legal acquirer).  The
accompanying consolidated financial statements were in substance those of OPH, with the assets
and liabilities, and revenues and expenses, of the Company being included effective from the date of stock exchange transaction.  The
Company is deemed to be a continuation of the business of OPH.



OPH
was originally founded in Charlotte, NC in 2007 by Billy Styles and Alan Talbert. The business produces and distributes organic
based fertilizers and soil conditioners for use in the continual care of residential and commercial landscapes.



(4)









Business
Description of the Issuer



Overview



We
produce, distribute and sell organic based, natural and environmentally responsible products for the continual care of the urban
and suburban landscape. Our products consist of granular and liquid fertilizers, soil conditioners,
pest control products and select garden tools. Certain of those products promote and supportsoil health and plant health
in a variety of residential and commercial landscape applications, however, there is no assurance that these products will improve
soil health, plant health, control for fungus, diseases and insect infestation in every landscape and every property.



Our
products are formulated and blended from raw materials brought in from around the country. Our products and education oriented,
business practices are designed to appeal to green-minded consumers and businesses, as well as homeowners with do-it-yourself
tendencies.  We currently service over 4,500 residential customers located throughout the region, and over 100
commercial landscapers.



We
consider the business a part of the “new” Green Economy because many of the products we manufacture and distribute
support sustainable plant growth, have less impact on the environment than traditional chemical fertilizers, and support conservation
of water if used consistently.



After
achieving some success and increasing revenues with the basic retail model in 2007 and 2008, we began to feel the effects from
the recession in early 2009, and by June of 2009, we recognized that the recession would be protracted and would likely continue
to have a negative impact on our business. In July of 2009 we brought on minor investors, and jointly decided that our best opportunity
for prolonged growth and expansion with the least amount of capital was to change the business model from basic retail to a more
traditional manufacturer/distributor model. This growth strategy change would lessen our cost of expansion, otherwise, (appx.
$250,000.00 - $300,000.00 annually, per retail store if we had stayed with the previous business model), and allow us to expand
faster, and over a larger area by selling our exclusive products through independent retail partners. These retail partners, existing
businesses with built-in consumer traffic, consist of hardware stores, garden centers and nurseries.



We
began transitioning to the manufacturing/distribution model in the fall of 2009. The company was profitable in 2007 and 2008,
however, it was not profitable from 2009 through 2011. We had net loss of $469,990 in 2011. The Company currently sells its
exclusive products through 30+ retail partners. Although, we have not added as many retail partners as initially planned due
to the limited cash flow available to support an experienced sales staff, we have experienced some measure of success with
the new business model and believe it is viable and will become profitable in the next 18 to 24 months, if partially or fully
funded from our current public offering. Without receiving any funding from this offering, we will have to make
significant changes in our operations to sustain the business. We further believe that we will need a minimum of $500,000
over the next 6 to 10 months to achieve our initial expansion goals.



During
the past year, we had had several meetings with key retail partners to discuss sales performance of our products, and several
ways that our company could increase consumer interest in the products to improve sell-through at the retail level. After reviewing
data from those meetings we decided it would be beneficial to update the Company’s branding (corporate identity for all
representations), package design of our products, (all bags, bottles and containers in which our products are sold), and marketing
materials, (all banners, exterior and interior signage and display materials), as well as all company sales materials. We contacted
several companies in Charlotte, New York and Chicago that perform such services and decided that Kaliedoscope-Chicago was the
best fit for revamping the OPH brand, product packaging and marketing materials.



The
cost for the initial design and development is expected to be $30,000. Subsequent adjustments and revisions will result with finished
artwork for all custom bags, bottles and labels for each of the more than 60 individual SKUs, as well as finished artwork for
all marketing materials. We expect the final cost of the services associated with Kaleidoscope to be in the $60,000 to $90,000
range. After the design phase is complete, the cost of producing 5,000 – 10,000 bags/containers for use in producing finished
goods for distribution is approximately $4,000 - $5,500 per sku.



We
began this process in August of 2011 with initial meetings and conference calls to establish a direction for the new brand identity
that would convey the company’s experience, knowledge and passion for helping growers of all varieties grow – from
the 35-year old magazine executive concerned about indoor plant care to the 50-year old caretaker of his family’s 500 acre
farm. This process has advanced over the past few months to the design stage. We plan to launch the new brand identity and package
design during Q2 2012.



For
the fiscal year of 2011, we generated revenues of $837,159 and net loss of $469,990. For the fiscal year of 2010, we generated
revenues of $1,009,078 and net loss of $353,974. As of December 31, 2011, we had total assets of $243,900,
available cash and cash equivalents of $42,651 on hand. We also distribute products through
master distributors, which mirror the Matthews store, and through independent retailers such as Ace Hardware locations and garden
centers throughout the region.





(5)







Concentration
onOrganic-Based and Natural FertilizersIndustry



Based
upon our experience as manufacturer and seller fororganic-based and natural fertility and plant care products,we believe that the demand fornatural fertility and plant care products has been growing steadily,along with the increasing demand for organic foods and other items marketed as more natural and earth friendly.



According
to marketresearch.com, consumer packaged goods in the lawn and garden sector are estimated to grow at roughly 3.5-4% each
year through 2014. Growth will be led by fertilizers and growing media posting above average gains.



At
present,organic fertilizer products represent a small share of the approximately $9 billion consumer packaged lawn and
garden market in the U.S., roughly 10%, or $900 million. Since 2007 organic fertilizers and growing
media revenues have grown at over 10%, annually, over the past several years, which is greater than twice the average rate for
the category of about 4% over the same time periods. Demand for these types of products has increased as consumers are
generally becoming more aware of the environment and the negative effects from using synthetic fertilizers and pesticides, such
as contamination of waterways attributed to chemical fertilizers. The same study notes that Baby-boomers are just coming in to
their gardening years, and this will support continued growth in the sector.



It
is managements’ opinion that a growing segment of the population is looking for simpler and more complete solutions for
lawn and landscape care.  The green movement has consumers thinking more about the environment and realizing the benefits
of working with nature. As a result,we believe we have our prosperity with our quality
organic products, education first approach and easy-to-use annual care programs on this fast growing market segment.



Our
Competitive Advantages



We
position ourselves as developers of organic-based, natural and hybrid-organic products that support sustainability in the landscape.
We evaluate our product offerings frequently and make formula adjustments or improvements as needed, or when appropriate, as science
and agronomy advance, and allow for easier and more affordable use of organic components and materials. We
believe we have the following competitive advantages over our competitors:



Strengths
– Internal



·   Passion/vision:



Billy
Styles (“Mr. Styles”), our President and Chief Executive Officer, and Alan Talbert (“Mr. Talbert”), our
Vice President and Chief Operating Officer, have been working in their fields of expertise for more than thirty, and twenty years,
respectively. They founded the company and are dedicated to its success, which is different than being "hired" to manage
a company.



·   Products
deliver maximize benefit:



The
fertilizers and soil conditioners we produce are designed to deliver the maximum benefit to the consumer. Traditional lawn and
garden fertilizers are developed to perform one primary function: Increase plant growth. Organic Plant Health fertilizers and
soil conditioners are developed to achieve many goals and to address the entire growing experience. These include: improving the
soil structure with consistent use (ie. the growing environment), supporting healthy, more efficient plant growth, (our products
include organic acids that release bound nutrients in the soil, which increases the efficacy of fertility inputs. Our products
also improve water and nutrient penetration and retention in the soil, when used consistently, which reduces the need for supplemental
watering over time. However, it is important to note that regardless of how effective our products are, or how packed the products
are with beneficial components, there is no assurance that customers will use the products consistently, thereby fully realizing
the fullest potential of the available benefits.



·   Timely
and competitive product line:



Organic
Plant Health developed a complete line of organic-based lawn, ornamental and garden fertilizers and soil conditioners early in
the time line of the organic and natural category (with in the Lawn and Garden Consumer Packaged Goods category). This product
experience, combined with our extensive field experience, provides us with an advantage in developing new, more advanced and more
efficient fertility products moving forward.



·   Diverse
and complimentary management team:



Our
management team members compliment each others’ strengths and weaknesses very well. Billy Styles has significant experience
in the field, seeing and understanding plant needs and product needs first hand. Alan Talbert has been involved in business operations,
as well as developing and executing marketing plans on the local and regional levels for many years. Paul DiFraia (“Mr.
DiFraia”), our Vice President, has extensive experience with manufacturing products on a large scale, with great attention
to detail.



·   Media
Exposure:



We
belief that very few companies of our size have had the level of local and, in some cases, national exposure on radio and television.
The company currently has it's own radio show, “Backyard Styles”, hosted by Billy Styles, and airing on WBT-AM 1110,
a 50,000 watt radio station located in Charlotte, NC. We have also developed marketing agreements with production companies that
allow Mr. Styles to be the resident Organic Gardener appearing on frequent episodes of the nationally syndicated “For Your
Home” television show, which airs in 90 million homes across the country.



(6)









Strengths
– External



·    Organic-based
approach is riding green movement:



The
green economy is in its infancy. According to marketresearch.com, as it relates to organic based fertilizers and soil conditioners,
these types of products in the consumer packaged lawn and garden sector are expected to continue to grow at more than twice the
rate of traditional fertilizer sales through 2014.



·   Consumer
awareness and acceptance of organic-based products:



Sales
of organic based fertilizers and soil conditioners in the consumer packaged lawn and garden sector are expected to continue to
grow at twice the rate of traditional fertilizer sales through 2014. This exhibits growing acceptance and predilection to purchase
these types of products over their traditional counterparts.



·     Sales
of organic based fertilizers and soil conditioner have experienced 5%-10% growth annually in the past 4 years, and it is expected
to continue to grow at more than twice the average growth rate of traditional fertilizers (3.5% - 4% through 2014). (Source: http://www.marketresearch.com/Freedonia-Group-Inc-v1247/Lawn-Garden-Consumables-2688161.





Positive
Reputation within the Regional Greens Industry

We
have developed a positive reputation over the last several years in the greens industry in the region. Billy Styles, our president
and CEO, is well known for his industry knowledge, decades of field experience, and passion for helping others learn about the
true nature of soil and plant health in the region. Billy is frequently called upon to consult with greens industry professionals
about problems they face in managing landscape care. He also meets frequently with garden clubs, as well as local and regional
associations geared towards promoting sustainable maintenance practices inside and outside of the home and business. One example
of the latter is Billy’s involvement with the Union County Neighborhood Leaders Forum, (UCNLF) – he was the keynote
speaker at the UCNLF Spring Conference in 2011.

Reliable
Supplier Network for Low-Cost Raw Materials

Many
of the raw materials we use in our proprietary blends are commodity products that are available from a variety of sources. We
practice redundancy with our suppliers on these products to ensure availability at a competitive price. We strive to find excellent
vendors from whom to buy our raw goods and also strive to be a good customer for our vendors. Our belief is that long-term relationships
play a role in maintaining low cost production and profitability.

Experienced
Management and Operational Teams with Greens Industry Market Knowledge

Our
senior management team and key operating personnel have extensive management and operating experience and greens industry knowledge.
In particular, Mr. Billy Styles, our Pres/CEO is a 5th generation farmer and has managed and operated businesses
in the greens industry for approximately 35 years. Mr.Alan Talbert, our VP/COO has 22 years experience in management and
operations in the Marketing/Communications industry, the last 8 of which have been highly focused on the greens industry. Mr.
Paul DiFraia, VP has 30+ years experience in management and manufacturing, having worked many of those as principal of a Johnson
& Johnson company. The Company’s Manufacturing and Distribution Manager, James Islam, has more than 20 years experience
in regional distribution and developing processes and efficiencies to streamline costs and maintain the highest level of quality.
We believe that our management team’s experience and in-depth knowledge of this business will enable us to continue to successfully
execute our expansion strategies. In addition, we believe our management team’s experience will enable us to continue to
take advantage of market opportunities that may arise.

(7)







We
are Taking Advantage of Industry Trends

As
a small company we are able to respond to market forces and trends more quickly than larger manufacturers. This allows the company
to take advantage of certain opportunities afforded when industry and market trends reveal themselves. For example, when we learned
that incorporating sources of organic matter held multiple benefits for a variety of growing environments, we chose to incorporate
sources of organic matter into our products for use in lawns, gardens and ornamental beds, and have done so since 2007. Organic
matter has many benefits for the soil, which include increasing microbial activity, diversity in the soil food web, and helping
to ease compaction, as well as improving water and nutrient, holding capacity. The combined effects from using organic matter
help the homeowner or commercial business reduce the amount of supplemental irrigation needed, thus saving them money on their
water bill.



Although
management believes that our products are superior to others in the category, our company size is too small at this point to have
any significant impact on the entire lawn and garden category regionally or nationally. However, management does believe that
providing added benefits in our products now, in the early stages of our existence, may give the company an advantage over our
competitors as we grow and expand into other markets.

Marketing
Strategy

The
marketing strategy is designed to increase market share and sales of our branded products in the Eastern United States by promoting
our exclusive organic based and natural landscape care products.  Our marketing will always include an emphasis on educating
the consumer and the general public about the true nature of plant health.  We will achieve this through the use of traditional
as well as new media venues, where information and education are a primary factor in the consumer buying process.  In addition
we will implement grass roots efforts to create new strategic alliances with municipalities, community organizations, regional
and national foundations, universities and industry trade/buying groups. We will further forge relationships with like-minded
companies including other fertilizer manufacturers, botanical gardens, agricultural entities, plant material companies and possibly
even organic food producers, We plan to average the combined marketing efforts and public relations initiatives to bring about
and reinforce positive change in the minds of our every-day consumer resulting in an increase in consumer confidence, brand integrity
and purchases. Our creative strategy will continue to feature Billy Styles as the visionary behind Organic Plant Health, a new
provider of organic based and natural fertility and soil conditioner products for the green minded do-it-yourselfer. Our focus
has been and will continue to be one of education, first, whereby we teach our customers about the true nature of soil and plant
health to help them understand fertilizer and soil conditioning needs and their affect on soil and plant health, and sustainability.
We will continue to insert a straight-talk dialogue into the general discussion conveyed with Billy Styles' ability to share the
benefits of adherence to our annual program schedules, proper maintenance practices and the homeowner's personal responsibility
for the success and pride of their landscape.

Sales
Strategy

Our
strategy for increasing sales includes:

Increased
purchase volume from existing retail partners through continual acceptance of our products.

Adding
regional sales staff and support staff to expand sales efforts into regional markets up and down the east coast and certain points
in the Midwest. This will increase the number of independent retail partners purchasing products from OPH and significantly increase
revenues and profits that will be used for further expansion efforts. We anticipate adding an additional 50-100 retail
partners in 2012 if we are partially or fully funded through our current public offering.

Management
has identified several “hub” markets that are planned to be the focus of our expansion over the next 3-4 years. Our
first priority is to maximize our market penetration around the cities of Charlotte, NC, Raleigh, NC, Greensboro, NC and Winston-Salem/High
Point, NC, and Greenville / Spartanburg, SC, Columbia, SC and Charleston, SC.

The
following “hub” markets and targeted city areas are planned to be the focus of our expansion as we move outward from
the Carolinas:

Georgia:
Atlanta

Florida:
Jacksonville; Tampa; Miami

Virginia:
Roanoke; Richmond

Maryland:
Baltimore; Columbia

Tennessee:
Knoxville; Nashville; Memphis

Kentucky:
Lexington

Ohio:
Columbus; Cleveland

Pennsylvania:
Pittsburgh; Philadelphia; Harrisburg

Connecticut:
New Haven

New
York: Syracuse; Albany

Massachusetts:
Boston; Worchester

Michigan:
Grand Rapids

Indiana:
Indianapolis

Illinois:
Chicago; Springfield

These
market hubs have been identified based on their size or proximity to major trading areas fanning out from the Carolinas. Our plans
are that each market hub will have a sales person and an account manager to help facilitate the sale of our products to prospective
retail, commercial, wholesale and agriculture businesses within those hubs. Most of these hub markets are similar to the Carolinas
in many ways. The majority have cool season grasses (tall fescue or bluegrass) as the dominant grass for residential and commercial
lawns. This is very similar to North Carolina. The southern cities in Georgia and Florida have warm season grasses (Bermuda, Zoysia,
Centipede, St. Augustine, or Bahia) as the dominant grasses, which are similar to, or the same as, many of the grasses used in
South Carolina. Fertilizers and pest control products used in these hub markets to feed ornamental trees and shrubs, flowers and
vegetable gardens are also very similar to those use in North and South Carolina, albeit the application times change according
the hardiness zones established by the U.S. Department of Agriculture, (USDA).





(8)







The
primary difference between these identified hub markets and the Carolinas is soil composition. Knowing
the soil type of your plot of land is necessary for planning yourgardening and landscaping needs. The soil type will determine
which plants or trees willgrow the best, as well as suitability for building projects. The three basic
soil types of sand, silt and clay are defined by the size of their component mineral particles. Different combinations of these
types are further categorized into twelve different types of soil textures recognized by the U.S. Department of Agriculture. They
are: clay, sandy clay, silty clay, clay loam, silty clay loam, sandy clay loam, loam, sandy loam, silty loam, loamy sand, sand,
and silt.



Although
different soil types are present across the country, all plants grown in the different types of soil benefit from organic based
nutrition and organic matter, which are integral components in our fertilizers and soil conditioners.



We
also plan to promote the business model on the OPH web site.

Our
corporate website will continue to be developed in 2012, as we broaden our resource materials and video library. E-commerce function
was added to the website in Q2 2011 to provide for an additional revenue stream.  Ecommerce sales in 2011 totaled less than
$2,500 with $0 marketing dollars added to promote the shopping function,  however increases should begin to occur as the
company begins to allocate online-marketing dollars targeted to building the online revenue stream in Q3-Q4 of 2012.



Proposed
Growth Strategy



Based
upon the current demand for organic based fertilizers, soil conditioners and plant care products, we believe we have an opportunity
to increase our revenues, net income and gross margins by expanding our sales model into other regional markets, capturing a larger
market share, and expanding our production, manufacturing and/or distribution capabilities. In addition, our growth will also
afford us the opportunity to develop new products for which we believe there is a large and increasing national demand. We seek
to increase our revenues by taking advantage of the increasing demand for organic based fertilizers, soil conditioners and plant
care products. As such we have developed a growth strategy that we believe will allow us to capitalize on this opportunity.



Our
growth strategy is focused on increasing revenues in four distinct ways: (i) expansion of our direct to retailer sales model in
regional markets on the east coast and points in the mid-west; (ii) expansion of our wholesale distributor sales model in select
regions; (iii) developing new products and services targeted at both a broad base of homeowner and commercial businesses, and
to targeted submarkets within the greens industry, (An example of this would be a specific line of fertilizers targeted to certain
agriculture and farming markets); (iv) and by expanding our online website presence and sales of our products online directly
to the end use consumer.



As
the Company develops new products or improves existing products, and then further, identifies new markets and opportunities for
these products, we will register the products we plan to offer in that market with the appropriate State and Federal Agencies.
Since the cost of registration is expensive, we will only register our products in markets or states in which we believe there
is an opportunity to achieve successful distribution and sell-though of our products.



Generally
speaking, the cost of registration is about $250 per year, per product, for initial registration. In addition, most all states
require a Fertilizer license (approximately $100 - $200 per state), and most states charge a monthly tonnage fee related to the
quantity of product sold in that state. In all we can expect to pay approximately $4,500.00 - $6,000.00 per state, per year to
keep our products registered and legal for sale.



As
registration relates to e-commerce, we will only market our products in areas or states where our products are already registered.
As our expansion occurs, and as working capital becomes available, we will increase the rate at which we register our products.
We have identified several service companies that will assist us with the registration process. Eventually the company plans to
have all of its products registered in every viable market across the country. However, there is no assurance that the company
will register each if its products in every state, and if the company does register each product in every state, there is no assurance
that this will result in successful and profitable sales in that state.





(9)







Develop
new products



We
have plans to develop new products over the next few years targeted to specific segments of the residential, commercial and Ag/Farmer
fertilizer markets. 1) Liquid & Granular organic based fertilizers for use inside and outside of the home. These products
will primarily be smaller in size and weight and are targeted for Internet Ecommerce and on-shelf, retail partner sales. 2) A
line of granular and liquid fertilizers targeted to the commercial landscaper and agriculture segments. These products will be
developed using key macro and micronutrients specific to the industry and will be sold at lower price points to be competitive
in those segments. Management believes commercial and Ag/Farmer use of organic based fertilizers will increase, based on the previously
discussed consumer demand. We have already observed instances in the southeast, where residential consumers have demanded that
their landscape service providers use organic based and natural products on their landscapes, or risk losing the contract. We
have also been told by customers that engage in the development of real estate projects that their some of their customers have
demanded a switch to more environmentally responsible landscape care products.



|Products
    under consideration | Devel.
    Stage | R&D
    Cost | PJ
    Launch Date
|-------------------------------- | ---------------- | ------------ | ------------------
|1.
    Indoor Plant Fertilizer   | Investigation    | $30,000      | Spring
    2013   
|2.
    Insect Repellants         | Investigation    | $25,000      | Summer
    2012   
|3.
    Liquid Turf Fertilizers   | Investigation    | $40,000      | Spring
    2013   
|4.
    Liquid Bio-Fungicides     | Investigation    | $20,000      | Spring
    2013   
|5.
    Comm/Ag/Farm Fertilizers  | Investigation    | $45,000      | Spring
    2013   



Although
management plans to continue research and development on these product categories, there is no assurance that any actual products
will be developed for the noted categories. And if there are products developed, there is no assurance that they will be in any
great demand.



Increasing
production capacity



Our
current production equipment and components are adequate to meet current demand and limited future demand. However, to meet the
demand anticipated later in 2012 and beyond, based on the planned expansion of our sales efforts, we will need to move to a larger
production and warehouse facility, or take advantage of outsourcing some or all of our manufacturing to ensure that we can consistently
meet the demand of our customers. This larger facility will provide greater warehousing space for excess inventory, and staging
of product for delivery or distribution. This larger facility will also allow us to increase production capacity to service the
retail partners in the Carolina’s region. Additionally, we may take advantage of outsourcing the production of some or all
of our products, (according to our exact specifications) to meet demand during peak seasons, to fulfill larger orders more quickly,
or to allow more efficient distribution into other parts of the country. All of these scenarios enable us to meet the demand for
our products without over-taxing our own production facility. Outside of the Carolina’s region, we’ll use some outsourcing
of our manufacturing along with bonded warehouses for storage of excess inventory, staging for localized delivery and distribution,
and potentially, online sales order processing in those markets where it creates a cost savings for us.



Management
believes that the above costs savings, and outsourcing of some or all our production will enable the business to remain viable
using, and building on, revenue from existing operations and the expanded sales from existing retail and distribution partners,
as well as increased online sales from our website. Further we do not believe that pursuing either of these strategies, or even
a combination of the two, present any unique risks to production since redundant manufacturing facilities are located in different
parts of the country, providing us with the ability to ensure consistent delivery of our products to our customers.



In
the past several months our company management has undertaken a proactive strategy to ensure our ability to meet current and future
demand for our fertilizers and soil conditioners. We have researched several outsourcing fertilizer manufacturers in the United
States and Canada that can and will produce fertilizers and soil conditioners to our exact specifications as the need arises,
providing us with redundancy of production capability. This further ensures a consistent supply of our products for our customers.
Additionally, in the past three months, we have completed formula models of our products that meet our exact specifications, using
components available from these manufacturers and have negotiated acceptable pricing, and minimum order quantities for production
and delivery. Having completed our research, we have selected Ferti-Technologies, Inc. as our primary outsourcing manufacturer
in the event that we feel it prudent to begin outsourcing some, or all of our production. In the past month we have reached the
point of “order-at-will” status with this manufacturer and can order and receive products within the industry standard
delivery schedule of 2-4 weeks. We have a verbal understanding with Ferti-Technologies, Inc. to produce our products according
to our specifications, as we deem it necessary. However, this understanding is not a binding agreement. In the event Ferti-Technologies
were to fail to fill our requirements, management believes that alternative sources could be found. We have not outsourced any
of our production to this company, as of yet, but hold this option open, based on the need to meet growing demand for our products.
Ferti-Technologies, Inc. does not require a written agreement, other than a normal purchase order prior to fulfilling an order.
In our case, when and if we become ready to have them outsource some, or all of our production, we will send them a purchase order
to produce certain products, based on our prior discussions of formulas and pricing. This is their normal operating procedure
for any customer.



We
do not believe that outsourcing some or all of our production presents any unique risks to production since redundant manufacturing
facilities are located in different parts of the country, providing us with the ability to ensure consistent supply and delivery
of our products to our customers.



Based
on discussions and negotiations with those bonded Warehouse / Distribution providers, the option of renting space on an “as
needed” monthly basis has built-in efficiencies that are attractive to management. These consist of low, “per pallet”
storage fees, which are incurred only based on the number of pallets being stored, not on a fixed square footage prices, as well
as other savings related to labor costs, insurance, utilities, equipment rental and maintenance. This flexible use of space can
be a significant cost savings since storage needs vary throughout the year.



Because
of anticipated cost savings associated with relocating our own production facility to a rural area taking advantage of lower lease
rates, and the increased efficiency of using bonded warehouse / distribution providers, we expect that we will still realize a
reduction in our overall production expenses.





(10)







Strengthening
R&D



Over
the first 4 years of the business we have limited the amount of funds allocated to research and development because there were
limited funds available to commit. Instead, our focus has been on building a market for our existing products and then understanding
the opportunities for additional products that will fill in gaps in our product offering.



Additional
research and development is required to keep pace with competitors or take advantage of opportunities we believe exist in the
lawn and garden category. We have identified several opportunities to broaden our product offering and we plan to continue development
of these new products as funding becomes available. As our business expands we will commit greater dollars to R&D to meet
this demand.



|Products
    under consideration | Devel.
    Stage | R&D
    Cost | PJ
    Launch Date
|-------------------------------- | ---------------- | ------------ | ------------------
|1.
    Indoor Plant Fertilizer   | Investigation    | $30,000      | Spring
    2013   
|2.
    Insect Repellants         | Investigation    | $25,000      | Summer
    2012   
|3.
    Liquid Turf Fertilizers   | Investigation    | $40,000      | Spring
    2013   
|4.
    Liquid Bio-Fungicides     | Investigation    | $20,000      | Spring
    2013   
|5.
    Comm/Ag/Farm Fertilizers  | Investigation    | $45,000      | Spring
    2013   





Strengthening
our relationships with key customers and diversifying our customer base.

We
intend to strengthen our relationships with key customers while further expanding our customer base. We plan to continue providing
high-quality and cost-competitive products to our existing customers and to use our existing customer network and strong industry
reputation to expand our product sales up and down the east coast and to points in the mid-west. We
also plan, subject to available financing, to improve our sales networks by establishing master retail partners in regional hub
markets to allow us to sell our products directly to the end users.We intend to continue to use customer feedback to improve
the quality of our products and services and to strengthen our base of regional customers as we grow into a national company.



Seasonality



Our
operating results and cash flows historically have been subject to seasonal variations. Because a high percentage of our
sales are from lawn care fertilizers our revenues increase proportionately during the fall, late winter and spring months. Conversely,
our sales cycle dips during the summer months and early winter months. As we expand our sales into other parts of the country
and online via our ecommerce website, our sales cycles will broaden and we will experience fewer peaks and valleys. However, this
expansion process will take time to develop and until this occurs, we will continue to experience revenues in a cyclical fashion.



Products



Historically,
our business has been primarily focused on our annual turf care fertilizers and soil conditioners. We produce 24 exclusive products
in a range of sizes, 9 of which are used exclusively on turf grasses. We believe that acceptance of our turf care products will
lead to additional purchases of our other 15 fertilizers, soil conditioners or controls for insect and disease.  We
believe we offer retailers a comprehensive product line principally in the medium to upper price range in most all categories.  Based
on our sales and client base, we believe our products represent good value, and that the style and quality of our fertilizers
and soil conditioners compare favorably with well known products in the lawn and garden industry.





(11)







The
following table lists our product categories and their respective contribution to our sales for the twelve months ended December
31, 2011.





|Product Category                | Main Target Market                       | Revenue ($) | Revenue (%)
|------------------------------- | ---------------------------------------- | ----------- | -----------
|Soil Health                     | Residential / Commercial / Agri-Business | $188,696    | 22.54%     
|Turf Fertility                  | Residential / Commercial / Agri-Business | $401,418    | 47.95%     
|Garden & Ornamental             | Residential / Commercial                 | $57,262     | 6.84%      
|Garden Tools & Seeding Supplies | Residential / Commercial                 | $109,165    | 13.04%     
|Pest Control                    | Residential / Commercial                 | $80,618     | 9.63%      





Summary
of the products:

Soil
Health:

Urban
Soil Life MaxxTM

Jackhammer
MaxxTM

Soil
EnergyTM



Turf
Fertility:

OPH
Pre-EmergentTM 16-0-8

OPH
Pre-EmergentTM 0-0-7

Summer
CareTM

Bio-Balance
pHTM

GerminateTM

Top
GrowthTM

HibernateTM

Winter
CareTM

Organic
Seeding MulchTM



Garden
& Ornamental:

Billy’s
Organic Planting MixTM

Garden
& Flower BlendTM

Urban
Bloom & EvergreenTM

Urban
Tree CareTM

SunburstTM

Vita-RootTM

Good
Day RosesTM

Good
Night RosesTM

Good
Health RosesTM



Pest
Control:

Eco-CedarTM

Good
Health LandscapeTM

Good
Health RosesTM

Turf
& Garden WarriorTM

Various
3rd Party Pest Controls



Garden
Tools & Seeding Supplies:

Gloves,
Rakes, Hoses, etc.

Spreaders,
Pump Sprayers, etc.

Grass
Seed, Moisture Retention Mulch, etc.



(12)









Manufacturing



We
currently operated approximately 11,000 sq. ft. of manufacturing space and are operating at approximately 35% - 50% capacity depending
upon the season.  This manufacturing facility is located adjacent to our corporate office in Charlotte, NC. We consider
the machinery and equipment at such location generally to be relatively up to date and well-maintained. The manufacturing equipment
at this location includes a 65 foot custom blending machine with 5 primary bulk hoppers and 3 micro-component hoppers. This machine
also uses a sophisticated computer system that can retain up to 99 customized granular formulas. Additionally, the machine uses
a tumbling blending mixer and bagging unit, along with a bagging conveyor system with a heat sealer. We utilize fork-lift mounted
loading hoppers to move raw materials into the primary hoppers.



Our
manufacturing strategy includes:

| | • |  | Increased efficiency to reduce manufacturing
    costs                                
| | - |  | --------------------------------------------------------------------------------------
| | • |  | Installation of upgrades and new components to increase production
    efficiency     
| | • |  | More frequent and cost-effective production runs,                                     
| | • |  | Identification and recycling of product waste, and                                    
| | • |  | Improvement of our relationships with suppliers by establishing
    primary suppliers.



Customers
and Suppliers

We
believe we have established long-term, stable business relationships with over 4,500 residential customers located throughout
the region, and over 100 commercial landscapers. Our products are sold in Retail Fertilizer Stores, Hardware Stores, Garden
Centers and Nurseries.



In fiscal
2011, our top 5 customers purchased product from us as follows:



Major
customers



|Name           |  | 12
                                                                                                    months ended December
                                                                                                    31, 2011
        (’000s) |        |  | Percentage of
        Overall
        Sales (%) |     
|-------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------ |  | ----------------------------------------------- | ----
|Customer
    A |  | $                                                                                                                                                                                                                                                         | 74,141 |  |                                                 | 8.61
|Customer
    B |  | $                                                                                                                                                                                                                                                         | 62,067 |  |                                                 | 7.20
|Customer
    C |  | $                                                                                                                                                                                                                                                         | 49,306 |  |                                                 | 5.72
|Customer
    D |  | $                                                                                                                                                                                                                                                         | 33,630 |  |                                                 | 3.90
|Customer
    E |  | $                                                                                                                                                                                                                                                         | 33,241 |  |                                                 | 3.86



In fiscal
2011, our top 5 suppliers sold products to us as follows:



Suppliers
of Raw Materials



|Name           |   | Amount (USD)
        12 months
        ended December 31,
        2011 |  | Location  |  | Percentage
    of Overall Purchases (%) |  
|-------------- | - | ---------------------------------------------------------------------- |  | --------- |  | --------------------------------------- | -
|Supplier
    A | $ | 90,006                                                                 |  | Charlotte |  | 24                                      | %
|Supplier
    B | $ | 56,405                                                                 |  | Charlotte |  | 15                                      | %
|Supplier
    C | $ | 40,212                                                                 |  | Charlotte |  | 11                                      | %
|Supplier
    D | $ | 35,520                                                                 |  | Charlotte |  | 9                                       | %
|Supplier
    E | $ | 9,373                                                                  |  | Charlotte |  | 2                                       | %



Our
major suppliers include Purdue Agri-Recycle, Solu-Cal USA, Growth Products, Regal Fertilizer Company, and Arctech.



Quality
Control



Consistent
with our continuing commitment to quality, we impose various quality control standards at different stages of our production process.
Our Production Manger inspects every truckload of raw materials upon arrival to ensure it meets with our internal quality standards
and is suitable to be blended as a component for our finished goods. He also visually inspects the materials during the production
process to ensure the quality of the finished goods and to confirm the absence of foreign materials. Every pallet of finished
goods is visually inspected to ensure that it meets our internal quality standards and that it is ready for delivery to one of
our retail partners. We strictly comply with all safety regulations established by local, state and federal authorities.

Warehousing,
Inventory and Supply Chain Management



We
distribute fertilizers and soil conditioners to retailers and wholesalers from our manufacturing facility in Charlotte, NC. We
shipfinished productsdirectly fromour manufacturing facilities to third-party retailers
and wholesalers.



There
is no backlog of unshipped orders for all of our products as of December 31, 2011. We are currently able to produce all of the
fertilizer and soil conditioners needed to supply our customers from our facility in Charlotte. However, as we begin expanding
our sales force, we believe the demand will quickly outpace capacity for production at this facility. As a result, we are planning
to move to a larger production facility in order to meet anticipated demand for 2012-2015.





(13)









Intellectual
Property



As of December
31, 2011, we have the following intellectual property rights:



Trade Secrets,
Trademarks and Domain Names:



Management
has been advised by counsel to safeguard the proprietary formulas used in producing our products by utilizing Trade Secret and
Trademark intellectual property rights. The company does not own patents on the proprietary formulas from which our products are
made, nor do we own patents on the processes by which our formulas are produced. Counsel has further advised us that applying
for patent protection on our formulas would require us to disclose the exact recipes of the products, and the company is not interested
in pursuing that at this time, as we believe the Trade Secret option provides better protection. However, we do have the following
product names trademarked



Urban
Soil Life MaxxTM

Jackhammer
MaxxTM

Soil
EnergyTM



OPH
Pre-EmergentTM 16-0-8

OPH
Pre-EmergentTM 0-0-7

Summer
CareTM

Bio-Balance
pHTM

GerminateTM

Top
GrowthTM

HibernateTM

Winter
CareTM

Organic
Seeding MulchTM



Billy’s
Organic Planting MixTM

Garden
& Flower BlendTM

Urban
Bloom & EvergreenTM

Urban
Tree CareTM

SunburstTM

Vita-RootTM

Good
Day RosesTM

Good
Night RosesTM

Good
Health RosesTM



Eco-CedarTM

Good
Health LandscapeTM

Good
Health RosesTM

Turf
& Garden WarriorTM



We have
registered the following domain names:



|Domain
     Name            |  | Owner |  | Registration
     Date |  | Expiration
     Date
|--------------------------- |  | ----- |  | ---------------------- |  | --------------------
|Organicplanthealth.com      |  | OPH   |  |                        |  | March 2013          
|Organicplanthealth.net      |  | OPH   |  |                        |  | March 2013          
|Backyardstyles.com          |  | OPH   |  |                        |  | October 2013        
|Stylesinyourbackyard.com    |  | OPH   |  |                        |  | October 2013        
|Grogreennow.com             |  | OPH   |  |                        |  | February 2013       
|Grogreennow.net             |  | OPH   |  |                        |  | February 2013       
|Grogreennow.org             |  | OPH   |  |                        |  | February 2013       
|Organiclandscapeshow.com    |  | OPH   |  |                        |  | September 2013      
|Theorganiclandscapeshow.com |  | OPH   |  |                        |  | September 2013      
|Organicplanthealthcare.com  |  | OPH   |  |                        |  | December 2013       
|Organicplanthealthcare.net  |  | OPH   |  |                        |  | December 2013       
|Organiclandscapecare.com    |  | OPH   |  |                        |  | December 2013       
|Organiclandscapecare.net    |  | OPH   |  |                        |  | December 2013       
|Organicprotocols.com        |  | OPH   |  |                        |  | December 2012       
|Silentgardener.com          |  | OPH   |  |                        |  | June 2012           
|Silentgardener.net          |  | OPH   |  |                        |  | June 2012           
|Thesilentgardener.net       |  | OPH   |  |                        |  | June 2012           
|Sodsaver.com                |  | OPH   |  |                        |  | March 2013          
|Sodsaver.net                |  | OPH   |  |                        |  | March 2013          
|Supersodsaver.com           |  | OPH   |  |                        |  | March 2013          
|Supersodsaver.net           |  | OPH   |  |                        |  | March 2013          
|Theorganicdepot.net         |  | OPH   |  |                        |  | September 2012      
|                            |  |       |  |                        |  |                     





(14)







Insurance

We
maintain various insurance policies to safeguard against risks and unexpected events. We provide unemployment insurance, work
related injury insurance and medical insurance in accordance with state and federal regulations (see Government
Regulations).We also maintain insurance for our plants, machinery, equipment, inventories and motor vehicles.
However, we do not maintain product liability insurance for our products.



Government
Regulation



Our
end-use products are regulated by federal, state, and local governments, as well as various agencies thereof, including the United
States Department of Agriculture, State Departments of Agriculture, State Departments of Environmental and Natural Resources and
the Environmental Protection Agency.



In
addition to the regulations governing the sale of our end products, our current facility and any future facilities are also subject
to certain regulation. Specific permit and approval requirements are set by the state and state agencies, and in some cases, local
jurisdictions including but not limited to cities, towns, and counties. Any changes to our plant or procedures would likely increase
the need for additional permits and the cost of operations related to acquiring permits and any additional licenses required.



Certain
products produced by the company may require approval and registration by the US Environmental Protection Agency, (EPA). These
products are most always in the insecticide, fungicide, or herbicide categories. However some of the insecticidal or fungicidal
products we produce are exempt from regulation by the EPA. For example, our products Eco-CedarTM, a cedar oil based insect
repellant, and our product Good Health LandscapeTM, a sesame oil based insecticide and fungicide, are both exempt from regulation
by the EPA under the 25b rule of the US Insecticide, Fungicide and Rodenticide Act, related to regulation exempt components.



Certain
environmental regulations also affect the operation of our current manufacturing facility and will also affect operations at any
future facilities. Because we blend raw materials at our manufacturing facility, we are required to register the location with
the Environmental Protection Agency (EPA), and we are also required to maintain an approved water quality permit with the state
in which the plant is located, (in our case, it’s North Carolina). To be in full compliance, we maintain and hold all required
permits and certificates required by federal, state and local government regulations, where applicable. Changes in the types of
products we blend together could require greater oversight by some or all of the agencies listed above. For example, if we decided
to blend a restricted use chemical product (such as the herbicide: Prodiamine, for weed control), this would require that we acquire
additional permits for blending restricted use pesticides, and we would likely experience increased restrictions related to our
water quality permit. Any changes such as this would result in increased regulation and cost of operations.



Approvals,
Licenses and Certificates



Organic
Plant Health is listed as an authorized fertilizer dealer in NC, SC, GA, FL, NY, and PA. Due to the high cost of registering products
in the individual states, the company only registers products in states when a sales opportunity is identified and developed.



As
the company develops new products or improves existing products, and then further, identifies new markets and opportunities for
these products, we will register such products with the appropriate State and Federal Agencies. Since the cost of registration
is expensive, we will only register our products in markets or states in which we believe there is an opportunity to achieve successful
distribution and sell-through of our products. Generally speaking, the cost of registration is about $250 per year, per product,
for initial registration. In addition, most all states require a Fertilizer license (approximately $100 - $200 per state), and
most states charge a monthly tonnage fee related to the quantity of product sold in that state. In all we can expect to pay approximately
$4,500 - $6,000 per state, per year to keep our products registered and legal for sale.



Certain
products produced by the company may require approval and registration by the US Environmental Protection Agency, (EPA). These
products are most always in the insecticide, fungicide, or herbicide categories. However some of the insecticidal or fungicidal
products we produce are exempt from regulation by the EPA. For example, our products Eco-CedarTM, a cedar oil based insect
repellant, and our product Good Health LandscapeTM, a sesame oil based insecticide and fungicide, are both exempt from regulation
by the EPA under the 25b rule of the US Insecticide, Fungicide and Rodenticide Act, related to regulation exempt components.



As
registration relates to e-commerce, we will only market our products in areas or states where our products are already registered.
As our expansion occurs, and as working capital becomes available, we will increase the rate at which we register our products.
We have identified several service companies that will assist us with the registration process. Eventually the company plans to
have all of its products registered in every viable market across the country. However, there is no assurance that the company
will register each if its products in every state, and if the company does register each product in every state, there is no assurance
that this will result in successful and profitable sales in that state.





(15)









Employees



We
have approximately 7 full time employees, and 3 part time employees to support production and sales for seasonal peaks.
We have a human resource performance review system that allows personnel reviews to be carried out annually or semi-annually,
depending on the length of employees’ service for the Company.



We
have not experienced any significant labor disputes and consider our relationship with our employees to be good.



ITEM
1A. RISK FACTORS



In
addition to the other information set forth in this report, you should carefully consider the following factors, which could materially
affect our business, financial condition or future results. The risks described below are not the only risks facing us. Additional
risks and uncertainties not currently known to us or that we currently deems to be immaterial also may materially adversely affect
our business, financial condition or results of operations.



Risks
Related to Our Business and Industry



The
current economic and credit environment could have an adverse effect on demand for certain of our products and services, which
would in turn have a negative impact on our results of operations, our cash flows, our financial condition, our ability to borrow
and our stock price.



Generally
speaking, since at least 2008, global market and economic conditions have been disrupted and volatile. Concerns over increased
energy costs increased commodities costs, geopolitical issues, the availability and cost of credit, the U.S. mortgage market and
a declining residential real estate market in the U.S. have contributed to this increased volatility and diminished expectations
for the economy and the markets going forward. These factors, combined with volatile oil prices, declining business and consumer
confidence and increased unemployment, have precipitated a global recession. It is difficult to predict how long the current economic
conditions will persist, whether they will deteriorate further, and which of our products, if not all of them, will be adversely
affected. These conditions, if they continue, could cause a material decrease in our sales, net income and an increase in the
prices we pay for raw materials we use in producing our organic-based and natural fertilizer products and, thus, materially affect
our operating results and financial condition.



More
specifically, the Company has noted a contraction in its revenues from the peak in 2008 through 2009, 2010 and 2011. Part of this
contraction is due to the economic climate, while another part is likely due to the company’s inability to replace lost
customers from normal attrition. This contraction is what precipitated our change of business model in mid 2009, to a manufacturer/distributor
model, over the previous traditional retail model. However, there is no assurance that this reduced dependence will result in
adequate sales revenue to sustain our business. This reasoning goes back to our inability to afford an adequate number of experienced
sales and support staff. It should be noted, however, that even with an adequate number of experienced sales and support staff,
there is no assurance that sales revenues will increase, or that the number of lost customers through attrition will be reduced.



The
weakened economic climate also has impacted the credit market, and more specifically, the company’s access to available
credit. As a young company still in the start-up phase, we have not yet achieved stability in our operations; therefore few, if
any, lending institutions would consider the company a good credit risk. This inability to get credit may adversely affect the
company’s operations, such as limiting the company’s ability to meet seasonal raw goods and inventory needs. If credit
is extended to the company by a financial institution, the terms and conditions may not be favorable.





(16)







The
industry in which we operate and market for our services is characterized by volatile commodities prices and rapid advancements
in science and agriculture. Advancements in technology or the development and introduction of new products and services could
render our existing products less marketable.



Our
business depends in significant part on our ability to continually improve the performance, features, and reliability of our current
fertility and soil conditioning products and services, and to modify our practices to work with new technological standards in
response to both evolving demand in the marketplace and competitive products and services. Our pursuit of improved performance,
new features, and necessary technological advances will require substantial time and expense, and there can be no assurance that
we will succeed in adapting our services to changing technology standards and customer requirements.



Although
we intend to support emerging manufacturing and production standards, there can be no assurance that industry standards will emerge,
or if they become established, that we will be able to conform to these new standards in a timely and economic fashion and maintain
a competitive position in the market. There can be no assurance that the announcement or introductions of new products or services
by us or our competitors, or any change in industry standards will not cause customers to defer or cancel purchases of existing
products or services, which could have a material adverse effect on our business, financial condition, and results of operations.



The
fertilizer industry is highly competitive and, if we are unable to compete successfully, our financial
condition and results of operations may be adversely affected.



The
organic based fertility market is increasingly competitive and there are no substantial barriers to entry. We expect that competition
will intensify in the future. We believe that our ability to compete successfully depends on a number of factors, including brand
awareness and market presence; the quality of our advertising services; the pace of expansion into new Retail Partners; the pricing
policies of our competitors and suppliers; the features, ease of use and timing of introductions of our new products by us and
our competitors; our ability to establish co-marketing relationships; and industry and general economic trends.



We
may not be able to continue to compete effectively with our existing competitors, or compete effectively with new competitors.
In addition, some of our competitors may acquire or have more financial and other resources than we do. If we fail to compete
effectively, our business operations and financial condition will suffer.



We
have limited operating history upon which to base an evaluation of our business and prospects. We may not be successful in our
efforts to grow our business and to earn increased revenues. We had accumulated deficit of $1,251,436 as of December, 2011, and
had net losses of $469,990 for the year ended December 31, 2011. An investment in our securities represents significant risk and
you may lose all or part your entire investment.



Although
the business is nearly five years old, much of the five years have been spent enduring a deep recession and uncertain economic
climate. The business is young and has not lived through multiple cycles of economic growth and contraction. As such, there is
no significant track record with which an investor might be able to assume or predict how the company might perform. Due to the
limited operating history of the company there can be no assurance that the company will generate adequate revenues to sustain
the business.



Further,
our limited operating history has not allowed us to build a reliable sales and support system, on which the company could adequately
predict future sales and growth. Even though the company believes it will be able to hire the right people to develop a successful
system, there is no assurance that one will be developed, and if one is there is no assurance it will be successful.



Therefore,
our business and prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies
in their early stage of development, particularly companies providing services to a rapidly evolving market. As a result, management
may be unable to adjust its spending in a timely manner to compensate for any unexpected revenue shortfall. This inability could
cause net losses in a given period to be greater than expected. An investment in our securities represents significant risk and
you may lose all or part your entire investment.





(17)









Raw
materials or production related expenses variations could adversely affect operating results and expenses.



Prices
for certain of our raw materials have recently increased due to the global demand and increased interest in organic based fertility.
A drastic increase in raw materials costs could increase our sales prices and force us to completely restructure our business
model, thereby likely causing substantial expenses and losses. We, in anticipation of this possibility, have continued to contact
major raw goods suppliers so as to forge strategic alliances. However, we have not yet formed any such alliance, and there is
no guarantee that such an alliance will ever be formed in the future or that it will assure us cost effective prices for raw materials.



Customers
of the company that make purchases on established accounts, may not pay their outstanding balances when due.



Prior
to offering credit to customers who wish to purchase company products on account, the customer will furnish a credit application
with references to the company. The company will contact the references and, based on the information collected, determine whether
a credit line should be established for a given customer. If a credit line is established, the customer will be given payment
terms, (standard payment terms are Net due in 30 days from the date of invoice), and expected to keep their accounts in good standing.
Although a credit review is performed on every new customer applying to purchase products on account, there is no assurance that
the customers will pay their outstanding balances in a timely manner, if ever.



We
expect to incur significant losses for some time, and we may never operate profitably.



From
inception through December, 2011, we have incurred an accumulated net loss of approximately $1,251,436. The revenues have not
yet resulted in our earning a profit, and we will continue to incur significant losses for at least the near future. There is
no assurance that our operations will ever become profitable.



We
could fail to remain a going concern. We will need to raise additional capital to fund our operations through the near term, and
we do not have any commitments for that capital.



There
exists substantial doubt regarding our ability to continue as a going concern. Our independent registered public accounting firm
has added an emphasis of matter paragraph to their report for our fiscal years ended December 31, 2010 and 2011 with respect
to our ability to continue as a going concern. Our consolidated financial statements have been prepared on the basis of a going
concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. If
we became unable to continue as a going concern, we would have to liquidate our assets and we might receive significantly less
than the values at which they are carried on our consolidated financial statements. The inclusion of a going concern modification
in our independent registered public accounting firm’s audit opinion for the years ended December 31, 2010 and 2011
may materially and adversely affect our stock or our ability to raise new capital.



As
reflected in our financial statements, for the years ended December 31, 2011 and 2010, we incurred net losses of $469,990 and
$353,974, respectively, and as of December 31, 2011, had an accumulated deficit of $1,251,436, and had a working capital deficiency
of $437,213. We will need additional capital and/or increased sales to execute our business strategy, and if we are unsuccessful
in either raising additional capital or achieving desired sales levels we will be unable to fully execute our business strategy
on a timely basis, if at all. If we raise additional capital through the issuance of debt securities, the debt securities may
be secured and any interest payments would reduce the amount of cash available to operate and grow our business. If we raise additional
capital through the issuance of equity securities, such issuances will likely cause dilution to our stockholders, particularly
if we are required to do so during periods when our common stock is trading at historically low price levels.



Additionally,
we do not know whether any financing, if obtained, will be adequate to meet our capital needs and to support our growth. If we
are unsuccessful in raising additional capital, we may be unable to fully execute our business strategy on a timely basis, if
at all. If adequate capital cannot be obtained on satisfactory terms, we may curtail or delay implementation of updates to our
facilities or delay the expansion of our sales and marketing capabilities, any of which could cause our business to fail.





(18)







We
will need to obtain additional debt and equity financing to complete subsequent stages of our business plan, including the funds
required to expand our businesses.



We
presently have limited operating capital. Current revenue from our wholesale and retail operations, as well as from our new ecommerce
web site is only sufficient to maintain our presence in the market. To meet future capital requirements necessary for the expansion
of our business, we may issue additional securities in the future with rights, terms and preferences designated by our Board of
Directors, without a vote of stockholders, which could adversely affect stockholder rights. Additional financing will likely cause
dilution to our stockholders and could involve the issuance of securities with rights senior to our currently outstanding shares.
There is no assurance that such financing will be sufficient, that the financing will be available on terms acceptable to us and
at such times as required, or that we will be able to obtain the additional financing required, if any, for the continued operation
and growth of our business. Any inability to raise necessary capital will have a material adverse effect on our ability to implement
our business strategy and will have a material adverse effect on our revenues and net income.



Because
we will require additional financing to expand our operation in accordance with our growing strategy, our failure to obtain necessary
financing will impair ourgrowth strategy.



We
currently have an effective offering of up to 10,000,000 shares of common stock at price of $0.20 per share (the “Shares”).
The Shares offered by us are on a "best efforts basis"; there is no underwriter and no firm commitment from anyone to
purchase all or any of the Shares offered. No assurance can be given that all or any of the Shares will be sold. Furthermore,
there is no escrow of funds or other provisions for returning any investors funds if less than all Shares offered hereby are sold.
This creates an increased risk to initial investors, in the event we are unable to raise the entire Offering amount, because there
is no minimum Offering amount and funds will be utilized as received by us.



Many
factors may, however, affect our cash needs, including our possible failure to generate sufficient revenues from operations. In
addition, if less than all Shares are sold, we may not have sufficient capital to fund operations until sufficient revenues are
being generated and may be unable to find suitable financing on terms acceptable to us. This event would significantly increase
the risk to those persons who invest in our common stock.



We
are exposed to risks from legislation requiring companies to evaluate internal control over financial reporting.



Section 404
of the Sarbanes-Oxley Act of 2002 (“Section 404”) required our management to start reporting on the operating
effectiveness of our internal control over financial reporting for the years ended December 31, 2011 and 2010. We must continue
an ongoing program of system and process evaluation and testing necessary to comply with these requirements. We expect that this
program will require us to incur significant expenses and to devote additional resources to Section 404 compliance on an
ongoing annual basis. We cannot predict how regulators will react or how the market prices of our securities will be affected
in the event that our Chief Executive Officer and Chief Financial Officer determine that our internal control over financial reporting
is not effective as defined under Section 404.



Our
future success is dependent on existing key employees and hiring and assimilating new key employees; our inability to attract
or retain key personnel in the future would materially harm our business and results of operations.



Our
success depends on the continuing efforts and abilities of our current management team. In addition, our future success will depend,
in part, on our ability to attract and retain highly skilled employees, including management, technical and sales personnel. We
may be unable to identify and attract highly qualified employees in the future. In addition, we may not be able to successfully
assimilate these employees or hire qualified personnel to replace them if they leave the Company. The loss of the services of
any of our key personnel, the inability to attract or retain key personnel in the future, or delays in hiring required personnel
could materially harm our business and results of operations.



As
co-founder, president and CEO of the Company, Mr. Styles plays a significant role in the Company. Mr. Styles is the visionary
behind the development of the Company’s products, and he is the inspiration behind the philosophical and educational approach
we take with all of our customers, In addition, as a 5th generation farmer with decades of field experience in the
backyards of the Carolinas, Mr. Styles’ personal knowledge base is the primary resource from which most of the product formulas,
application instructions, plant care protocols and care practices are derived. Our inability to maintain and grow this relationship
with Mr. Styles could severely impact our ability to continue operations.





(19)







We
may be unable to successfully expand our manufacturing capacity, which could result in material delays, quality issues, increased
costs and loss of business opportunities, which may negatively impact our product margins and profitability.



Part
of our future growth strategy is to increase our manufacturing capacity to meet increasing demand for our existing products. Assuming
we obtain sufficient funding to increase our manufacture capacity, any projects undertaken by us to increase such capacity may
not be constructed on the anticipated timetable or within budget. We may also experience quality control issues as we implement
these manufacturing upgrades and ramp up production. Any material delay in completing these projects, or any substantial increase
in costs or quality issues in connection with these projects, could materially delay our ability to bring our products to markets
and adversely affect our business, reduce our revenue, income and available cash, all of which could result in reducing financial
condition by a loss of business opportunities.



Failure
to enhance our brand recognition could have a material adverse effect on our business and results of operations.



We
believe we will need to expend significant time, effort and resources to enhance the recognition of our brands. We believe developing
our brand is important to our sales and marketing efforts. If we fail to enhance the recognition of our brands, it could have
a material adverse effect on our ability to sell our product and thus affect our business and results of operations. If we fail
to develop a positive public image and reputation, our existing business with our customers could decline and we may fail to develop
additional business, which could in turn adversely affect our prospects and results of operations.



Because we
depend on retailers or wholesalers to market our products, any problems encountered
by these third parties, or our failure to maintain relationships with these third parties or to expand third parties, wemay
be unable to establish marketing and sales capabilities necessary to commercialize and gain market acceptance for our products.



We
currently have limited resources with which to expand our sales and marketing capabilities. Co-promotion or other marketing arrangements
to commercialize our planned products could significantly limit the revenues we derive from our products, and the parties with
whom we would enter into such agreements may fail to commercialize our products successfully. Our products address different markets
and can be offered through multiple sales channels. Addressing each market effectively will require sales and marketing resources
tailored to the particular market and to the sales channels that we choose to employ, and we may not be able to develop such specialized
marketing resources.



Defects
in our products or failures in quality control could impair our ability to sell our products or could result in product liability
claims, litigation and other significant events with substantial additional costs.



Detection
of any significant defects in our products or failure in our quality control procedures may result in, among other things, delay
in time-to-market, loss of sales and market acceptance of our products, diversion of development resources, and injury to our
reputation. The costs we may incur in correcting any product defects may be substantial. Additionally, errors, defects or other
performance problems could result in financial or other damages to our customers, which could result in litigation. Product liability
litigation, even if we prevail, would be time consuming and costly to defend, and if we do not prevail, could result in the imposition
of a damages award. We presently maintain product liability insurance; however, it may not be adequate to cover any claims.



Changes
in environmental regulations or violations of such regulations could result in increased expense and could have a material negative
effect on our financial performance.



We
are subject to extensive air, water and other environmental regulations and need to maintain our environmental permits, and need
to obtain a number of environmental permits to construct and operate our planned facilities. If for any reason any of these permits
are not maintained or granted, construction costs for our facilities may increase, or the facilities may not be constructed at
all. Additionally, any changes in environmental laws and regulations, both at the federal and state level, could require us to
invest or spend considerable resources in order to comply with future environmental regulations. Our failure to comply with environmental
regulations could cause us to lose our required permits, which could cause the interruption or cessation of our operations. Furthermore,
the expense of compliance could be significant enough to adversely affect our operation and have a material negative effect on
our financial performance.



(20)









Our
facilities will require certain permits to operate, which we may not be able to obtain at all or obtain on a timely basis.



We
have obtained the permits and approvals required to operate our facilities. We may not be able to secure all the necessary permits
for future facilities on a timely basis or at all, which may prevent us or potential licensees from operating such facilities
according to our business plan.



For
future facilities, particularly in the organic fertilizer areas, we may need certain permits to operate solid waste or recycling
facilities, as well as permits for our sewage connection, water supply, land use, air emission, and wastewater discharge. The
specific permit and approval requirements are set by the state and the various local jurisdictions, including but not limited
to city, town, county, township, and state agencies having control over the specific properties. Permits once given may be withdrawn.
Inability to obtain or maintain permits to construct, operate or maintain our facilities will severely and adversely affect our
business.



The
communities where our facilities may be located may be averse to hosting waste handling and manufacturing facilities.



Local
residents and authorities in communities where our facilities may be located may be concerned about odor, vermin, noise, increased
truck traffic, air pollution, decreased property values, and public health risks associated with operating a manufacturing facility
in their area. These constituencies may oppose our permitting applications or raise other issues regarding our proposed facilities
or bring legal challenges to prevent us from constructing or operating facilities.



If
we make any acquisitions, they may disrupt or have a negative impact on our business.



Although
we have no present plans for any specific acquisition, in the event that we make acquisitions, we could have difficulty integrating
the acquired companies’ personnel and operations with our own. In addition, the key personnel of the acquired business may
not be willing to work for us. We cannot predict the effect expansion may have on our core business. Regardless of whether we
are successful in making an acquisition, the negotiations could disrupt our ongoing business, distract our management and employees
and increase our expenses. In addition to the risks described above, acquisitions are accompanied by a number of inherent risks,
including, without limitation, the following:



| | · | the difficulty of integrating
    acquired products, services or operations;
| | - | ----------------------------------------------------------------------------



| | · | the potential disruption
    of the ongoing businesses and distraction of our management and the management of acquired companies;
| | - | ----------------------------------------------------------------------------------------------------------------------------------



| | · | the difficulty of incorporating
    acquired rights or products into our existing business;
| | - | -------------------------------------------------------------------------------------------



| | · | difficulties in disposing
    of the excess or idle facilities of an acquired company or business and expenses in maintaining such facilities;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------



| | · | difficulties in maintaining
    uniform standards, controls, procedures and policies;
| | - | -------------------------------------------------------------------------------------



| | · | the potential impairment
    of relationships with employees and customers as a result of any integration of new management personnel;
| | - | --------------------------------------------------------------------------------------------------------------------------------------



| | · | the potential inability
    or failure to achieve additional sales and enhance our customer base through cross-marketing of the products to new and existing
    customers;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | the effect of any government
    regulations which relate to the business acquired;
| | - | -----------------------------------------------------------------------------------



| | · | potential unknown liabilities
    associated with acquired businesses or product lines, or the need to spend significant amounts to retool, reposition or modify
    the marketing and sales of acquired products or the defense of any litigation, whether of not successful, resulting from actions
    of the acquired company prior to our acquisition.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Our
business could be severely impaired if and to the extent that we are unable to succeed in addressing any of these risks or other
problems encountered in connection with these acquisitions, many of which cannot be presently identified, these risks and problems
could disrupt our ongoing business, distract our management and employees, increase our expenses and adversely affect our results
of operations.





(21)







Risks
Related to Ownership of our Common Stock



Volatility
in our common stock price may subject us to securities litigation.



Stock
markets, in general, have experienced in recent months, and continue to experience, significant price and volume volatility, and
the market price of our common stock may continue to be subject to similar market fluctuations unrelated to our operating performance
or prospects. This increased volatility, coupled with depressed economic conditions, could continue to have a depressing effect
on the market price of our common stock. The following factors, many of which are beyond our control, may influence our stock
price:



| | • | the status of
    our growth strategy including the expansion of our production capabilities and the increase in sales and administrative personnel
    with the net proceeds from the offering;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | • | announcements
    of technological or competitive developments;                                                                                                                                 
| | • | actual or anticipated
    fluctuations in our quarterly operating results;                                                                                                                      
| | • | changes in financial
    estimates by securities research analysts;                                                                                                                             
| | • | changes in the
    economic performance or market valuations of our competitors;                                                                                                                
| | • | additions or
    departures of our executive officers or other key personnel;                                                                                                                   
| | • | release or expiration
    of lock-up or other transfer restrictions on our outstanding common stock; and                                                                                        
| | • | sales or perceived
    sales of additional shares of our common stock.                                                                                                                          



In
addition, the securities market has, from time to time, experienced significant price and volume fluctuations that are not related
to the operating performance of particular companies. Any of these factors could result in large and sudden changes in the volume
and trading price of our common stock and could cause our stockholders to incur substantial losses. In the past, following periods
of volatility in the market price of a company’s securities, stockholders have often instituted securities class action
litigation against that company. If we were involved in a class action suit or other securities litigation, it would divert the
attention of our senior management, require us to incur significant expense and, whether or not adversely determined, could have
a material adverse effect on our business, financial condition, results of operations and prospects.



Our
common stock is currently quoted on the OTC bulletin board quotation market under the symbol “OPHI”. To date, however,
trading activity in our common stock has been extremely limited. There is no assurance as to the depth or liquidity of any such
market or the prices at which holders may be able to sell the securities.



Our
common stock is on the OTC bulletin board quotation market under the symbol “OPHI”. To date, however, trading activity
in our common stock has been extremely limited. There is also no assurance as to the depth or liquidity of any such market or
the prices at which holders may be able to sell the securities. An investment in the Shares may be totally illiquid and investors
may not be able to liquidate their investment readily or at all when they need or desire to sell.



If
we issue shares of preferred stock, your investment could be diluted or subordinated to the rights of the holders of preferred
stock.



Our
Board of Directors is authorized by our Certificate of Incorporation to establish classes or series of preferred stock and fix
the designation, powers, preferences and rights of the shares of each such class or series without any further vote or action
by our stockholders. Any shares of preferred stock so issued could have priority over our common stock with respect to dividend
or liquidation rights. The issuance of shares of preferred stock, or the issuance of rights to purchase such shares, could be
used to discourage an unsolicited acquisition proposal. For instance, the issuance of a series of preferred stock might impede
a business combination by including class voting rights that would enable a holder to block such a transaction. In addition, under
certain circumstances, the issuance of preferred stock could adversely affect the voting power of holders of our common stock.
Although our Board of Directors is required to make any determination to issue preferred stock based on its judgment as to the
best interests of our stockholders, our Board could act in a manner that would discourage an acquisition attempt or other transaction
that some, or a majority, of our stockholders might believe to be in their best interests or in which such stockholders might
receive a premium for their stock over the then-market price of such stock. Presently, our Board of Directors does not intend
to seek stockholder approval prior to the issuance of currently authorized preferred stock, unless otherwise required by law or
applicable stock exchange rules. Although we have no plans to issue any additional shares of preferred stock or to adopt any new
series, preferences or other classification of preferred stock, any such action by our Board of Directors or issuance of preferred
stock by us could dilute your investment in our common stock and warrants or subordinate your holdings to such shares of preferred
stock.





(22)







Future
issuances or sales, or the potential for future issuances or sales, of shares of our common stock, the conversion of preferred
stock into our common stock, or the conversion of convertible notes into our common stock, may cause the trading price of our
securities to decline and could impair our ability to raise capital through subsequent equity offerings.



During
2011, we issued a significant number of shares of our common stock, preferred stock convertible into shares of our common stock,
and convertible notes that may be converted into our common stock in connection with various financings and the repayment of debt,
and we anticipate that we will continue to do so in the future. The additional shares of our common stock issued and to be issued
in the future upon the conversion of debt could cause the market price of our common stock to decline, and could have an adverse
effect on our earnings per share if and when we become profitable.



In
addition, we currently have an effective offering of up to 20,456,375 shares of common stock at price of $0.20 per share. Future
sales of a substantial number of shares of our common stock or other securities in the public markets, or the perception that
these sales may occur, could cause the market price of our common stock to decline, and could materially impair our ability to
raise capital through the sale of additional securities. We cannot predict the effect that future sales of our common
stock or other equity-related securities would have on the market price of our common stock.



We
do not anticipate paying cash dividends on our common stock in the foreseeable future.



We
do not anticipate paying cash dividends in the foreseeable future on shares of our common stock. Presently, we intend to retain
all of our earnings, if any, to finance development and expansion of our business. Consequently, your only opportunity to achieve
a positive return on your investment in us will be if the market price of our common stock appreciates.



Our
principal stockholder controls our business affairs, so you will have little or no participation in our business affairs.



Our
current management beneficially owns over 50% of our outstanding Common Stock and will have full control over the affairs of the
Company. The security holder will be able to continue to elect over a majority of our directors and to determine the outcome of
the corporate actions requiring shareholder approval, regardless of how additional security holders of the Company may vote. The
investors will have no ability to influence corporate actions.



Our
stock is a penny stock. Trading of our stock may be restricted by the SEC’s penny stock regulations and the FINRA’s
sales practice requirements, which may limit a stockholder’s ability to buy and sell our stock.



Our
common shares may be deemed to be "penny stock" as that term is defined in Regulation Section "240.3a51-1"
of the Securities and Exchange Commission (the "SEC"). Penny stocks are stocks: (a) with a price of less than U.S. $5.00
per share; (b) that are not traded on a "recognized" national exchange; (c) whose prices are not quoted on the NASDAQ
automated quotation system (NASDAQ - where listed stocks must still meet requirement (a) above); or (d) in issuers with net tangible
assets of less than U.S. $2,000,000 (if the issuer has been in continuous operation for at least three years) or U.S. $5,000,000
(if in continuous operation for less than three years), or with average revenues of less than U.S. $6,000,000 for the last three
years.



Section
"15(g)" of the United States Securities Exchange Act of 1934, as amended, and Regulation Section "240.15g(c)2"
of the SEC require broker dealers dealing in penny stocks to provide potential investors with a document disclosing the risks
of penny stocks and to obtain a manually signed and dated written receipt of the document before effecting any transaction in
a penny stock for the investor’s account. Potential investors in the Company’s common shares are urged to obtain and
read such disclosure carefully before purchasing any common shares that are deemed to be "penny stock".



Moreover,
Regulation Section "240.15g-9" of the SEC requires broker dealers in penny stocks to approve the account of any investor
for transactions in such stocks before selling any penny stock to that investor. This procedure requires the broker dealer to:
(a) obtain from the investor information concerning his or her financial situation, investment experience and investment objectives;
(b) reasonably determine, based on that information, that transactions in penny stocks are suitable for the investor and that
the investor has sufficient knowledge and experience as to be reasonably capable of evaluating the risks of penny stock transactions;
(c) provide the investor with a written statement setting forth the basis on which the broker dealer made the determination in
(ii) above; and (d) receive a signed and dated copy of such statement from the investor confirming that it accurately reflects
the investor’s financial situation, investment experience and investment objectives. Compliance with these requirements
may make it more difficult for investors in the Company’s common shares to resell their common shares to third parties or
to otherwise dispose of them. Security holders should be aware that, according to Securities and Exchange Commission Release No.
34-29093, dated April 17, 1991, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such
patterns include:



(i)  control
of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer

(ii)  
manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases

(iii)  
boiler room practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons

(iv)  
excessive and undisclosed bid-ask differential and mark-ups by selling broker-dealers

(v)   
the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level,
along with the resulting inevitable collapse of those prices and with consequent investor losses





(23)









As
an issuer of “penny stock”, the protection provided by the federal securities laws relating to a forward-looking statement
does notapply to us and as a result we could be subject to legal action.



Although
federal securities laws provide a safe harbor for forward-looking statements made by a public company that files reports under
the federal securities laws, this safe harbor is not available to issuers of penny stocks. As a result, if we are a penny stock,
we will not have the benefit of this safe harbor protection in the event of any legal action based upon a claim that the material
provided by us contained a material misstatement of fact or was misleading in any material respect because of our failure to include
any statements necessary to make the statements not misleading. Such an action could hurt our financial condition.



The
issuance of any of our equity securities pursuant to any equity compensation plans we intend to adopt may dilute the value of
existing stockholders and may affect the marketprice of our stock.



In
the future, we may issue to our officers, directors, employees and/or other persons equity based compensation under any equity
based compensation plan we intend to adopt to provide motivation and compensation to our officers, employees and key independent
consultants. The award of any such incentives could result in an immediate and potentially substantial dilution to our existing
stockholders and could result in a decline in the value of our stock price. The exercise of these options and the sale of the
underlying shares of common stock and the sale of stock issued pursuant to stock grants may have an adverse effect upon the price
of our stock.



ITEM
1B. UNRESOLVED STAFF COMMENTS



None.



ITEM
2. PROPERTIES



Our
operating facilities consist of 1) an 11,000 square foot production and office facility on Monroe Road in Charlotte, NC where
production of the proprietary granular and liquid products occurs; 2) a 3,000 square foot retail store, with an additional 3,000
square feet of warehouse and office space is located in downtown Matthews, NC servicing residential Do-It-Yourselfers and commercial
landscapers.



We believe
that our existing facilities are well maintained and in good operating condition.



ITEM 3.
LEGAL PROCEEDINGS



We
are not currently a party to any material legal or administrative proceedings. We are not aware of any material legal or administrative
proceedings threatened against us. From time to time, we may be subject to various legal or administrative proceedings arising
in the ordinary course of our business.

ITEM 4.
MINE SAFETY DISCLOSURES



(24)









PART
II



ITEM 5.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES



Trading
Market for Common Equity



Our
common stock is quoted on the Electronic Bulletin Board under the symbol, OPHI. Trading of our common stock in the over-the-counter
market has been limited and sporadic and the quotations set forth below are not necessarily indicative of actual market conditions.
Further, these prices reflect inter-dealer prices without retail mark-up, mark-down, or commission, and may not necessarily reflect
actual transactions. The following tables set forth the high and low sale prices for our common stock as reported on the Electronic
Bulletin Board for the periods indicated.



|Interim
    Period                      |   | High  |   | Low  
|--------------------------------------- | - | ----- | - | -----
|Interim
    Period ended March 31, 2012 | $ | 0.19  | $ | 0.09 
|                                        |   |       |   |      
|Fiscal
    2011                         |   |       |   |      
|Quarter
    ended March 31, 2011        | $ | 0.18  | $ | 0.18 
|Quarter
    ended June 30, 2011         | $ | 0.15  | $ | 0.15 
|Quarter
    ended September 30, 2011    | $ | 0.20  | $ | 0.07 
|Quarter
    ended December 31, 2011     | $ | 0.198 | $ | 0.08 
|                                        |   |       |   |      
|Fiscal
    2010                         |   |       |   |      
|Quarter
    ended March 31, 2010        | $ | 0.70  | $ | 0.50 
|Quarter
    ended June 30, 2010         | $ | 0.35  | $ | 0.25 
|Quarter
    ended September 30, 2010    | $ | 0.15  | $ | 0.135
|Quarter
    ended December 31, 2010     | $ | 0.065 | $ | 0.045



General



We
are authorized to issue 150,000,000 shares of our common stock, par value $.001 per share and 5,000,000 shares of our preferred
stock, par value $.001 per share.



Common
Stock





As of March 31,
2012, there were61,215,081shares of our common stock
issued and outstanding, which were held of record by approximately 602 share holders.





Holders
of our common stock are entitled to one vote per share on matters on which our stockholders vote. There are no cumulative voting
rights. Subject to any preferential dividend rights of any outstanding shares of preferred stock, holders of our common stock
are entitled to receive dividends, if declared by our Board of Directors, out of funds that we may legally use to pay dividends.
If we liquidate or dissolve, holders of our common stock are entitled to share ratably in our assets once our debts and any liquidation
preference owed to any then-outstanding preferred stockholders are paid. Our certificate of incorporation does not provide our
common stock with any redemption, conversion or preemptive rights. All shares of our common stock that are outstanding as of the
date of this annual report will be fully-paid and nonassessable.



Preferred
Stock



Our
Board of Directors has the authority, without further stockholder authorization, to issue from time to time shares of our preferred
stock in one or more series and to fix the terms, limitations, relative rights and preferences and variations of each series set
forth as follows. Although we have no present plans to issue any shares of our preferred stock, the issuance of shares of our
preferred stock, or the issuance of rights to purchase such shares, could decrease the amount of earnings and assets available
for distribution to the holders of our common stock, could adversely affect the rights and powers, including voting rights, of
our common stock, and could have the effect of delaying, deterring or preventing a change in control of us or an unsolicited acquisition
proposal. As of the date thereof, we have no preferred stock issued and outstanding and no current plans to issue any our preferred
stock.





(25)









| | (1) | Designation
                                                                                                                         and Rank.The
                                                                                                                         series
                                                                                                                         of Preferred
                                                                                                                         Stock
                                                                                                                         shall
                                                                                                                         be designated
                                                                                                                         the “Convertible
                                                                                                                         Preferred
                                                                                                                         Stock”(“Convertible
                                                                                                                         Preferred”)
                                                                                                                         and shall
                                                                                                                         consist
                                                                                                                         of 5,000,000
                                                                                                                         shares,
                                                                                                                         par value
                                                                                                                         $.001
                                                                                                                         per share.
                                                                                                                         The Convertible
                                                                                                                         Preferred
                                                                                                                         is authorized
                                                                                                                         by the
                                                                                                                         Board
                                                                                                                         of Directors
                                                                                                                         of this
                                                                                                                         Corporation
                                                                                                                         and shall
                                                                                                                         be senior
                                                                                                                         to the
                                                                                                                         common
                                                                                                                         stock.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





| | (2) | Conversion
                                                                                                                         into
                                                                                                                         Common
                                                                                                                         Stock.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (a) | Right
                                                                                                                             to
                                                                                                                             Convert.
                                                                                                                             Each
                                                                                                                             share
                                                                                                                             of
                                                                                                                             Convertible
                                                                                                                             Preferred
                                                                                                                             Stock
                                                                                                                             shall
                                                                                                                             be
                                                                                                                             convertible,
                                                                                                                             at
                                                                                                                             the
                                                                                                                             option
                                                                                                                             of
                                                                                                                             the
                                                                                                                             holder
                                                                                                                             thereof,
                                                                                                                             at
                                                                                                                             any
                                                                                                                             time
                                                                                                                             after
                                                                                                                             one
                                                                                                                             year
                                                                                                                             from
                                                                                                                             the
                                                                                                                             date
                                                                                                                             of
                                                                                                                             issuance
                                                                                                                             (the
                                                                                                                             “Conversion
                                                                                                                             Date”)
                                                                                                                             into
                                                                                                                             ten
                                                                                                                             (10)
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             fully
                                                                                                                             paid
                                                                                                                             and
                                                                                                                             non-assessable
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             Common
                                                                                                                             Stock
                                                                                                                             (the
                                                                                                                             “Conversion
                                                                                                                             Ration”).
| | --- | 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| | (b) | Mechanics
                                                                                                                             of
                                                                                                                             Conversion.
                                                                                                                             Before
                                                                                                                             any
                                                                                                                             holder
                                                                                                                             shall
                                                                                                                             be
                                                                                                                             entitled
                                                                                                                             to
                                                                                                                             convert,
                                                                                                                             he
                                                                                                                             shall
                                                                                                                             surrender
                                                                                                                             the
                                                                                                                             certificate
                                                                                                                             or
                                                                                                                             certificates
                                                                                                                             representing
                                                                                                                             Convertible
                                                                                                                             Preferred
                                                                                                                             Stock
                                                                                                                             to
                                                                                                                             be
                                                                                                                             converted,
                                                                                                                             duly
                                                                                                                             endorsed
                                                                                                                             or
                                                                                                                             the
                                                                                                                             Corporation
                                                                                                                             or
                                                                                                                             of
                                                                                                                             any
                                                                                                                             transfer
                                                                                                                             agent,
                                                                                                                             and
                                                                                                                             shall
                                                                                                                             give
                                                                                                                             written
                                                                                                                             notice
                                                                                                                             to
                                                                                                                             the
                                                                                                                             Corporation
                                                                                                                             at
                                                                                                                             such
                                                                                                                             office
                                                                                                                             that
                                                                                                                             he
                                                                                                                             elects
                                                                                                                             to
                                                                                                                             convert
                                                                                                                             the
                                                                                                                             same.
                                                                                                                             The
                                                                                                                             Corporation
                                                                                                                             shall,
                                                                                                                             as
                                                                                                                             soon
                                                                                                                             as
                                                                                                                             practicable
                                                                                                                             thereafter,
                                                                                                                             issue
                                                                                                                             a
                                                                                                                             certificate
                                                                                                                             or
                                                                                                                             certificates
                                                                                                                             for
                                                                                                                             the
                                                                                                                             number
                                                                                                                             of
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             Common
                                                                                                                             Stock
                                                                                                                             to
                                                                                                                             which
                                                                                                                             the
                                                                                                                             holder
                                                                                                                             shall
                                                                                                                             be
                                                                                                                             entitled.
                                                                                                                             The
                                                                                                                             Corporation
                                                                                                                             shall,
                                                                                                                             as
                                                                                                                             soon
                                                                                                                             as
                                                                                                                             practicable
                                                                                                                             after
                                                                                                                             delivery
                                                                                                                             of
                                                                                                                             such
                                                                                                                             certificates,
                                                                                                                             or
                                                                                                                             such
                                                                                                                             agreement
                                                                                                                             and
                                                                                                                             indemnification
                                                                                                                             in
                                                                                                                             the
                                                                                                                             case
                                                                                                                             of
                                                                                                                             a
                                                                                                                             lost,
                                                                                                                             stolen
                                                                                                                             or
                                                                                                                             destroyed
                                                                                                                             certificate,
                                                                                                                             issue
                                                                                                                             and
                                                                                                                             deliver
                                                                                                                             to
                                                                                                                             such
                                                                                                                             holder
                                                                                                                             of
                                                                                                                             Convertible
                                                                                                                             Preferred
                                                                                                                             Stock
                                                                                                                             a
                                                                                                                             certificate
                                                                                                                             or
                                                                                                                             certificates
                                                                                                                             for
                                                                                                                             the
                                                                                                                             number
                                                                                                                             of
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             Common
                                                                                                                             Stock
                                                                                                                             to
                                                                                                                             which
                                                                                                                             such
                                                                                                                             holder
                                                                                                                             is
                                                                                                                             entitled
                                                                                                                             as
                                                                                                                             aforesaid
                                                                                                                             and
                                                                                                                             a
                                                                                                                             check
                                                                                                                             payable
                                                                                                                             to
                                                                                                                             the
                                                                                                                             holder
                                                                                                                             in
                                                                                                                             the
                                                                                                                             amount
                                                                                                                             of
                                                                                                                             any
                                                                                                                             cash
                                                                                                                             amounts
                                                                                                                             payable
                                                                                                                             as
                                                                                                                             the
                                                                                                                             result
                                                                                                                             of
                                                                                                                             a
                                                                                                                             conversion
                                                                                                                             into
                                                                                                                             fractional
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             Common
                                                                                                                             Stock.
                                                                                                                             Such
                                                                                                                             conversion
                                                                                                                             shall
                                                                                                                             be
                                                                                                                             deemed
                                                                                                                             to
                                                                                                                             have
                                                                                                                             been
                                                                                                                             made
                                                                                                                             immediately
                                                                                                                             prior
                                                                                                                             to
                                                                                                                             the
                                                                                                                             close
                                                                                                                             of
                                                                                                                             business
                                                                                                                             on
                                                                                                                             the
                                                                                                                             date
                                                                                                                             of
                                                                                                                             such
                                                                                                                             surrender
                                                                                                                             of
                                                                                                                             the
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             Convertible
                                                                                                                             Preferred
                                                                                                                             Stock
                                                                                                                             to
                                                                                                                             be
                                                                                                                             converted.
| | --- | 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-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (c) | Adjustment
                                                                                                                             to
                                                                                                                             Conversion
                                                                                                                             Ratio.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (i) | Merger
                                                                                                                            or
                                                                                                                            Reorganization.
                                                                                                                            In
                                                                                                                            case
                                                                                                                            of
                                                                                                                            any
                                                                                                                            consolidation
                                                                                                                            or
                                                                                                                            merger
                                                                                                                            of
                                                                                                                            the
                                                                                                                            Corporation
                                                                                                                            as
                                                                                                                            a
                                                                                                                            result
                                                                                                                            of
                                                                                                                            which
                                                                                                                            holder
                                                                                                                            of
                                                                                                                            Common
                                                                                                                            Stock
                                                                                                                            become
                                                                                                                            entitled
                                                                                                                            to
                                                                                                                            receive
                                                                                                                            other
                                                                                                                            stock
                                                                                                                            or
                                                                                                                            securities
                                                                                                                            or
                                                                                                                            property,
                                                                                                                            or
                                                                                                                            in
                                                                                                                            case
                                                                                                                            of
                                                                                                                            any
                                                                                                                            conveyance
                                                                                                                            of
                                                                                                                            all
                                                                                                                            or
                                                                                                                            substantially
                                                                                                                            all
                                                                                                                            of
                                                                                                                            the
                                                                                                                            assets
                                                                                                                            of
                                                                                                                            the
                                                                                                                            Corporation
                                                                                                                            to
                                                                                                                            another
                                                                                                                            corporation,
                                                                                                                            the
                                                                                                                            Corporation
                                                                                                                            shall
                                                                                                                            mail
                                                                                                                            to
                                                                                                                            each
                                                                                                                            holder
                                                                                                                            of
                                                                                                                            Convertible
                                                                                                                            Preferred
                                                                                                                            Stock
                                                                                                                            at
                                                                                                                            least
                                                                                                                            thirty
                                                                                                                            (30)
                                                                                                                            days
                                                                                                                            prior
                                                                                                                            to
                                                                                                                            the
                                                                                                                            consummation
                                                                                                                            of
                                                                                                                            such
                                                                                                                            event
                                                                                                                            a
                                                                                                                            notice
                                                                                                                            thereof,
                                                                                                                            and
                                                                                                                            each
                                                                                                                            such
                                                                                                                            holder
                                                                                                                            shall
                                                                                                                            have
                                                                                                                            the
                                                                                                                            option
                                                                                                                            to
                                                                                                                            either
                                                                                                                            (i)
                                                                                                                            convert
                                                                                                                            such
                                                                                                                            holder’s
                                                                                                                            shares
                                                                                                                            of
                                                                                                                            Convertible
                                                                                                                            Preferred
                                                                                                                            Stock
                                                                                                                            into
                                                                                                                            shares
                                                                                                                            of
                                                                                                                            Common
                                                                                                                            Stock
                                                                                                                            pursuant
                                                                                                                            to
                                                                                                                            this
                                                                                                                            Section
                                                                                                                            3
                                                                                                                            and
                                                                                                                            thereafter
                                                                                                                            receive
                                                                                                                            the
                                                                                                                            number
                                                                                                                            of
                                                                                                                            shares
                                                                                                                            of
                                                                                                                            stock
                                                                                                                            or
                                                                                                                            other
                                                                                                                            securities
                                                                                                                            or
                                                                                                                            property
                                                                                                                            to
                                                                                                                            which
                                                                                                                            a
                                                                                                                            holder
                                                                                                                            of
                                                                                                                            the
                                                                                                                            number
                                                                                                                            of
                                                                                                                            shares
                                                                                                                            of
                                                                                                                            Common
                                                                                                                            Stock
                                                                                                                            of
                                                                                                                            the
                                                                                                                            Corporation
                                                                                                                            deliverable
                                                                                                                            upon
                                                                                                                            conversion
                                                                                                                            of
                                                                                                                            such
                                                                                                                            Convertible
                                                                                                                            Preferred
                                                                                                                            Stock
                                                                                                                            would
                                                                                                                            have
                                                                                                                            been
                                                                                                                            entitled
                                                                                                                            upon
                                                                                                                            such
                                                                                                                            consolidation,
                                                                                                                            merger
                                                                                                                            or
                                                                                                                            conveyance,
                                                                                                                            or
                                                                                                                            (ii)
                                                                                                                            exercise
                                                                                                                            such
                                                                                                                            holder’s
                                                                                                                            rights
                                                                                                                            pursuant
                                                                                                                            to
                                                                                                                            Section
                                                                                                                            1
                                                                                                                            (a).
                                                                                                                            Unless
                                                                                                                            otherwise
                                                                                                                            set
                                                                                                                            forth
                                                                                                                            by
                                                                                                                            the
                                                                                                                            Board
                                                                                                                            of
                                                                                                                            Directors,
                                                                                                                            the
                                                                                                                            Conversion
                                                                                                                            Ratio
                                                                                                                            shall
                                                                                                                            not
                                                                                                                            be
                                                                                                                            affected
                                                                                                                            by
                                                                                                                            a
                                                                                                                            stock
                                                                                                                            dividend
                                                                                                                            or
                                                                                                                            subdivision
                                                                                                                            (stock
                                                                                                                            split)
                                                                                                                            on
                                                                                                                            the
                                                                                                                            Common
                                                                                                                            Stock
                                                                                                                            of
                                                                                                                            the
                                                                                                                            Corporation,
                                                                                                                            or
                                                                                                                            a
                                                                                                                            stock
                                                                                                                            combination
                                                                                                                            (reverse
                                                                                                                            stock
                                                                                                                            split)
                                                                                                                            or
                                                                                                                            stock
                                                                                                                            consolidation
                                                                                                                            by
                                                                                                                            reclassification
                                                                                                                            of
                                                                                                                            the
                                                                                                                            Common
                                                                                                                            Stock.
                                                                                                                            However,
                                                                                                                            once
                                                                                                                            the
                                                                                                                            Convertible
                                                                                                                            Preferred
                                                                                                                            Stock
                                                                                                                            has
                                                                                                                            been
                                                                                                                            converted
                                                                                                                            to
                                                                                                                            Common
                                                                                                                            Stock,
                                                                                                                            it
                                                                                                                            shall
                                                                                                                            be
                                                                                                                            subject
                                                                                                                            to
                                                                                                                            all
                                                                                                                            corporate
                                                                                                                            actions
                                                                                                                            that
                                                                                                                            affect
                                                                                                                            or
                                                                                                                            modify
                                                                                                                            the
                                                                                                                            common
                                                                                                                            stock.
| | --- | 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------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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| | (d) | No
                                                                                                                             Impairment.
                                                                                                                             The
                                                                                                                             Corporation
                                                                                                                             will
                                                                                                                             not,
                                                                                                                             by
                                                                                                                             amendment
                                                                                                                             of
                                                                                                                             its
                                                                                                                             Articles
                                                                                                                             of
                                                                                                                             Incorporation,
                                                                                                                             this
                                                                                                                             Certificate
                                                                                                                             of
                                                                                                                             Designation
                                                                                                                             or
                                                                                                                             through
                                                                                                                             any
                                                                                                                             reorganization,
                                                                                                                             transfer
                                                                                                                             of
                                                                                                                             assets,
                                                                                                                             consolidation,
                                                                                                                             merger,
                                                                                                                             dissolution,
                                                                                                                             issue
                                                                                                                             or
                                                                                                                             sale
                                                                                                                             of
                                                                                                                             securities
                                                                                                                             or
                                                                                                                             any
                                                                                                                             other
                                                                                                                             voluntary
                                                                                                                             action,
                                                                                                                             avoid
                                                                                                                             or
                                                                                                                             seek
                                                                                                                             to
                                                                                                                             avoid
                                                                                                                             the
                                                                                                                             observance
                                                                                                                             or
                                                                                                                             performance
                                                                                                                             of
                                                                                                                             any
                                                                                                                             of
                                                                                                                             the
                                                                                                                             terms
                                                                                                                             to
                                                                                                                             be
                                                                                                                             observed
                                                                                                                             or
                                                                                                                             performed
                                                                                                                             hereunder
                                                                                                                             by
                                                                                                                             the
                                                                                                                             Corporation,
                                                                                                                             but
                                                                                                                             will
                                                                                                                             at
                                                                                                                             all
                                                                                                                             times
                                                                                                                             in
                                                                                                                             good
                                                                                                                             faith
                                                                                                                             assist
                                                                                                                             in
                                                                                                                             the
                                                                                                                             carrying
                                                                                                                             out
                                                                                                                             of
                                                                                                                             all
                                                                                                                             the
                                                                                                                             provisions
                                                                                                                             of
                                                                                                                             this
                                                                                                                             Section
                                                                                                                             4
                                                                                                                             and
                                                                                                                             in
                                                                                                                             the
                                                                                                                             taking
                                                                                                                             of
                                                                                                                             all
                                                                                                                             such
                                                                                                                             action
                                                                                                                             as
                                                                                                                             may
                                                                                                                             be
                                                                                                                             necessary
                                                                                                                             or
                                                                                                                             appropriate
                                                                                                                             in
                                                                                                                             order
                                                                                                                             to
                                                                                                                             protect
                                                                                                                             the
                                                                                                                             Conversion
                                                                                                                             Rights
                                                                                                                             of
                                                                                                                             the
                                                                                                                             holders
                                                                                                                             of
                                                                                                                             the
                                                                                                                             Convertible
                                                                                                                             Preferred
                                                                                                                             Stock
                                                                                                                             against
                                                                                                                             impairment.
| | --- | 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| | (e) | Certificate
                                                                                                                             as
                                                                                                                             to
                                                                                                                             Adjustments.
                                                                                                                             Upon
                                                                                                                             the
                                                                                                                             occurrence
                                                                                                                             of
                                                                                                                             each
                                                                                                                             adjustment
                                                                                                                             or
                                                                                                                             readjustment
                                                                                                                             of
                                                                                                                             the
                                                                                                                             Conversion
                                                                                                                             Ratio
                                                                                                                             of
                                                                                                                             the
                                                                                                                             Convertible
                                                                                                                             Preferred
                                                                                                                             Stock
                                                                                                                             pursuant
                                                                                                                             to
                                                                                                                             this
                                                                                                                             Section
                                                                                                                             3,
                                                                                                                             the
                                                                                                                             Corporation
                                                                                                                             at
                                                                                                                             its
                                                                                                                             expense
                                                                                                                             shall
                                                                                                                             promptly
                                                                                                                             compute
                                                                                                                             such
                                                                                                                             adjustment
                                                                                                                             or
                                                                                                                             readjustment
                                                                                                                             in
                                                                                                                             accordance
                                                                                                                             with
                                                                                                                             the
                                                                                                                             terms
                                                                                                                             hereof
                                                                                                                             and
                                                                                                                             furnish
                                                                                                                             to
                                                                                                                             each
                                                                                                                             holder
                                                                                                                             of
                                                                                                                             Convertible
                                                                                                                             Preferred
                                                                                                                             Stock
                                                                                                                             a
                                                                                                                             certificate
                                                                                                                             setting
                                                                                                                             forth
                                                                                                                             such
                                                                                                                             adjustment
                                                                                                                             or
                                                                                                                             readjustment
                                                                                                                             and
                                                                                                                             the
                                                                                                                             calculation
                                                                                                                             on
                                                                                                                             which
                                                                                                                             such
                                                                                                                             adjustment
                                                                                                                             or
                                                                                                                             readjustment
                                                                                                                             is
                                                                                                                             based.
                                                                                                                             The
                                                                                                                             Corporation
                                                                                                                             shall,
                                                                                                                             upon
                                                                                                                             the
                                                                                                                             written
                                                                                                                             request
                                                                                                                             at
                                                                                                                             any
                                                                                                                             time
                                                                                                                             of
                                                                                                                             any
                                                                                                                             holder
                                                                                                                             of
                                                                                                                             Convertible
                                                                                                                             Preferred
                                                                                                                             Stock,
                                                                                                                             furnish
                                                                                                                             or
                                                                                                                             cause
                                                                                                                             to
                                                                                                                             be
                                                                                                                             furnished
                                                                                                                             to
                                                                                                                             such
                                                                                                                             holder
                                                                                                                             a
                                                                                                                             like
                                                                                                                             certificate
                                                                                                                             setting
                                                                                                                             forth
                                                                                                                             (i)
                                                                                                                             such
                                                                                                                             adjustment
                                                                                                                             and
                                                                                                                             readjustment,
                                                                                                                             (ii)
                                                                                                                             the
                                                                                                                             Conversion
                                                                                                                             Ratio
                                                                                                                             for
                                                                                                                             the
                                                                                                                             Convertible
                                                                                                                             Preferred
                                                                                                                             Stock
                                                                                                                             at
                                                                                                                             the
                                                                                                                             time
                                                                                                                             in
                                                                                                                             effect
                                                                                                                             and
                                                                                                                             (iii)
                                                                                                                             the
                                                                                                                             number
                                                                                                                             of
                                                                                                                             share
                                                                                                                             of
                                                                                                                             Common
                                                                                                                             Stock
                                                                                                                             and
                                                                                                                             the
                                                                                                                             amount,
                                                                                                                             if
                                                                                                                             any,
                                                                                                                             of
                                                                                                                             other
                                                                                                                             property
                                                                                                                             which
                                                                                                                             at
                                                                                                                             the
                                                                                                                             time
                                                                                                                             would
                                                                                                                             be
                                                                                                                             received
                                                                                                                             upon
                                                                                                                             the
                                                                                                                             conversion
                                                                                                                             of
                                                                                                                             the
                                                                                                                             Convertible
                                                                                                                             Preferred
                                                                                                                             Stock.
| | --- | 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| | (f) | Notice
                                                                                                                             of
                                                                                                                             Record
                                                                                                                             Date.
                                                                                                                             In
                                                                                                                             the
                                                                                                                             event
                                                                                                                             of
                                                                                                                             any
                                                                                                                             taking
                                                                                                                             by
                                                                                                                             the
                                                                                                                             Corporation
                                                                                                                             of
                                                                                                                             a
                                                                                                                             record
                                                                                                                             of
                                                                                                                             the
                                                                                                                             holders
                                                                                                                             of
                                                                                                                             any
                                                                                                                             class
                                                                                                                             of
                                                                                                                             securities
                                                                                                                             for
                                                                                                                             the
                                                                                                                             purpose
                                                                                                                             of
                                                                                                                             determining
                                                                                                                             the
                                                                                                                             holders
                                                                                                                             thereof
                                                                                                                             who
                                                                                                                             are
                                                                                                                             entitled
                                                                                                                             to
                                                                                                                             receive
                                                                                                                             any
                                                                                                                             dividend
                                                                                                                             (other
                                                                                                                             than
                                                                                                                             a
                                                                                                                             cash
                                                                                                                             dividend
                                                                                                                             which
                                                                                                                             is
                                                                                                                             the
                                                                                                                             same
                                                                                                                             as
                                                                                                                             cash
                                                                                                                             dividends
                                                                                                                             paid
                                                                                                                             in
                                                                                                                             previous
                                                                                                                             quarter)
                                                                                                                             or
                                                                                                                             other
                                                                                                                             distribution,
                                                                                                                             the
                                                                                                                             Corporation
                                                                                                                             shall
                                                                                                                             mail
                                                                                                                             to
                                                                                                                             each
                                                                                                                             holder
                                                                                                                             of
                                                                                                                             Convertible
                                                                                                                             Preferred
                                                                                                                             Stock
                                                                                                                             at
                                                                                                                             least
                                                                                                                             ten
                                                                                                                             (10)
                                                                                                                             days
                                                                                                                             prior
                                                                                                                             to
                                                                                                                             the
                                                                                                                             date
                                                                                                                             specified
                                                                                                                             herein,
                                                                                                                             a
                                                                                                                             notice
                                                                                                                             specifying
                                                                                                                             the
                                                                                                                             date
                                                                                                                             on
                                                                                                                             which
                                                                                                                             any
                                                                                                                             such
                                                                                                                             record
                                                                                                                             is
                                                                                                                             to
                                                                                                                             be
                                                                                                                             taken
                                                                                                                             for
                                                                                                                             the
                                                                                                                             purpose
                                                                                                                             of
                                                                                                                             such
                                                                                                                             dividend
                                                                                                                             or
                                                                                                                             distribution.
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| | (g) | Common
                                                                                                                             Stock
                                                                                                                             Reserve.
                                                                                                                             The
                                                                                                                             Corporation
                                                                                                                             shall
                                                                                                                             reserve
                                                                                                                             and
                                                                                                                             keep
                                                                                                                             available
                                                                                                                             out
                                                                                                                             of
                                                                                                                             its
                                                                                                                             authorized
                                                                                                                             but
                                                                                                                             unissued
                                                                                                                             Common
                                                                                                                             Stock
                                                                                                                             such
                                                                                                                             number
                                                                                                                             of
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             Common
                                                                                                                             Stock
                                                                                                                             as
                                                                                                                             shall
                                                                                                                             from
                                                                                                                             time
                                                                                                                             to
                                                                                                                             time
                                                                                                                             be
                                                                                                                             sufficient
                                                                                                                             to
                                                                                                                             effect
                                                                                                                             conversion
                                                                                                                             of
                                                                                                                             the
                                                                                                                             Convertible
                                                                                                                             Preferred
                                                                                                                             Stock.
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| | (3) | Voting
                                                                                                                         Rights.Except
                                                                                                                         as otherwise
                                                                                                                         required
                                                                                                                         by law,
                                                                                                                         the holders
                                                                                                                         of Convertible
                                                                                                                         Preferred
                                                                                                                         Stock
                                                                                                                         and the
                                                                                                                         holders
                                                                                                                         of Common
                                                                                                                         Stock
                                                                                                                         shall
                                                                                                                         be entitled
                                                                                                                         to notice
                                                                                                                         of any
                                                                                                                         stockholders’
                                                                                                                         meeting
                                                                                                                         and to
                                                                                                                         vote
                                                                                                                         as a
                                                                                                                         single
                                                                                                                         class
                                                                                                                         upon
                                                                                                                         any matter
                                                                                                                         submitted
                                                                                                                         to the
                                                                                                                         stockholders
                                                                                                                         for a
                                                                                                                         vote
                                                                                                                         as follows:
                                                                                                                         (i) the
                                                                                                                         holders
                                                                                                                         of each
                                                                                                                         series
                                                                                                                         of Preferred
                                                                                                                         Stock
                                                                                                                         shall
                                                                                                                         have
                                                                                                                         one vote
                                                                                                                         for each
                                                                                                                         full
                                                                                                                         share
                                                                                                                         of Common
                                                                                                                         Stock
                                                                                                                         into
                                                                                                                         which
                                                                                                                         a share
                                                                                                                         of such
                                                                                                                         series
                                                                                                                         would
                                                                                                                         be convertible
                                                                                                                         on the
                                                                                                                         record
                                                                                                                         date
                                                                                                                         for the
                                                                                                                         vote,
                                                                                                                         or, if
                                                                                                                         no such
                                                                                                                         record
                                                                                                                         date
                                                                                                                         is established,
                                                                                                                         at the
                                                                                                                         date
                                                                                                                         such
                                                                                                                         vote
                                                                                                                         is taken
                                                                                                                         or any
                                                                                                                         written
                                                                                                                         consent
                                                                                                                         of stockholders
                                                                                                                         is solicited;
                                                                                                                         and (ii)
                                                                                                                         the holders
                                                                                                                         of Common
                                                                                                                         Stock
                                                                                                                         shall
                                                                                                                         have
                                                                                                                         one vote
                                                                                                                         per share
                                                                                                                         of Common
                                                                                                                         Stock
                                                                                                                         held
                                                                                                                         as of
                                                                                                                         such
                                                                                                                         date.
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| | (4) | Reissuance.No
                                                                                                                         share
                                                                                                                         or shares
                                                                                                                         of Convertible
                                                                                                                         Preferred
                                                                                                                         Stock
                                                                                                                         acquired
                                                                                                                         by the
                                                                                                                         Corporation
                                                                                                                         by reason
                                                                                                                         of conversion,
                                                                                                                         all such
                                                                                                                         shares
                                                                                                                         thereafter
                                                                                                                         shall
                                                                                                                         be returned
                                                                                                                         to be
                                                                                                                         the status
                                                                                                                         of unissued
                                                                                                                         shares
                                                                                                                         of Convertible
                                                                                                                         Preferred
                                                                                                                         Stock
                                                                                                                         of the
                                                                                                                         Corporation.
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(26)







Dividends



We
have never paid a cash dividend on our common stock. The payment of dividends may be made at the discretion of our Board of Directors,
and will depend upon, among other things, our operations, capital requirements, and overall financial condition. There are no
contractual restrictions on our ability to declare and pay dividends.



Number
of Holders



As of March 31, 2012, we had 602 common shareholders of record.



Securities
Authorized for Issuance Under Equity Compensation Plans



As
of the date of this Report, we have not authorized any equity compensation plan, nor has our Board of Directors authorized the
reservation or issuance of any securities under any equity compensation plan.



Recent
Sales of Unregistered Securities; Use of Proceeds from Registered Securities



On
February 28, 2011, the Board of Directors of the Company approved the issuance of 4,075,000 shares of the Company’s Common
Stock in exchange for cash payment of $75,000 made by an investor. The transaction was independently negotiated between the Company
and the investor. The Company evaluated the transaction based on the fact that the Company had nominal trading volume for its
stock, and had negative shareholder equity at the time of issuance. The proceeds from this issuance mitigated the Company’s
cash pressure in short term.



On
March 31, 2011, the Board of Directors of the Company approved the issuance of 1,000,000 shares of the Company’s Common
Stock to settle accounts payable of $68,245 to a non-related party. The transaction was independently negotiated between the Company
and the creditor. The Company evaluated the transaction based on the fact that the Company had nominal trading volume for its
stock, and had negative shareholder equity at the time of issuance. The settlement of the accounts payable through the issuance
of common stock preserved the limited cash available currently in the Company.



On
May 13, 2011, the Company issued 1,000,000 shares of common stock of the Company as sweetener to Greentree pursuant to a Convertible
Promissory Note (the Note), dated January 1, 2011. The Note in a principal amount of $100,000 bears an interest rate of 6% per
annum and is due on January 1, 2013. Pursuant to the Note, Greentree has an option to convert all or any portion of the accrued
interest and unpaid principal balance of the Note into the common stock of the Company or its successors, at Ten Cents ($.10)
per share, no sooner than September 30, 2012. The Company relied on exemptions provided by Section 4(2) of the Securities Act of
1933, as amended. The Company made this offering based on the following facts: (1) the issuance was an isolated private transaction
which did not involve a public offering; (2) there was only one offeree, (3) the offeree has agreed to the imposition of a restrictive
legend on the face of the stock certificate representing its shares, to the effect that it will not resell the stock unless its
shares are registered or an exemption from registration is available; (4) the offeree was a sophisticated investor familiar with
us and stock-based transactions; (5) there were no subsequent or contemporaneous public offerings of the stock; (6) the stock
was not broken down into smaller denominations; and (7) the negotiations for the sale of the stock took place directly between
the offeree and our management.

| |  | 
| |  | 

In
May of 2011, the Company entered into a consulting service agreement with a Consultant for business advisory services in exchange
for 1,000,000 shares of Common Stock of the Company. The agreement had a term of 6 months effective from May 15, 2011 ending November
15, 2011. The fair value of this stock issuance was determined by the fair value of the Company’s Common Stock on the grant
date, at a price of approximately $.075 per share. The share value was arrived at based on the facts that the Company had
limited trading volume for its stock, and had negative shareholder equity at the time of issuance. Accordingly, the Company calculated
the stock based compensation of $75,000 at its fair value and booked pro rata within the relative service periods. The Company
relied on exemptions provided by Section 4(2) of the Securities Act of 1933, as amended. The Company made this offering based
on the following facts: (1) the issuance was an isolated private transaction which did not involve a public offering; (2) there
was only one offeree, (3) the offeree has agreed to the imposition of a restrictive legend on the face of the stock certificate
representing its shares, to the effect that it will not resell the stock unless its shares are registered or an exemption from
registration is available; (4) the offeree was a sophisticated investor familiar with us and stock-based transactions; (5) there
were no subsequent or contemporaneous public offerings of the stock; (6) the stock was not broken down into smaller denominations;
and (7) the negotiations for the sale of the stock took place directly between the offeree and our management.



During
the second quarter of 2011, the Board of Directors of the Company sold a total of 727,578 shares of the Company’s Common
Stock in exchange for cash payments of $65,482 made by investors. We will use the proceeds from this offering for working capital
purposes.  We relied on exemptions provided by Section 4(2) of the Securities Act of 1933, as amended. We made this
offering based on the following facts: (1) the issuance was an isolated private transaction which did not involve a public offering;
(2) there were 18 offerees, (3) the offerees have agreed to the imposition of a restrictive legend on the face of the stock certificate
representing the shares indicating the stock cannot be resold unless registered or an exemption from registration is available;
(4) the offerees were sophisticated investors familiar with our company and stock-based transactions; (5) there were no subsequent
or contemporaneous public offerings of the stock; (6) the stock was not broken down into smaller denominations; and (7) the negotiations
for the sale of the stock took place directly between the offerees and our management.





(27)







In
July of 2011, the Board of Directors of the Company sold a total of 1,300,000 shares of the Company’s Common Stock in exchange
for cash payments of $65,000 made by investors. We will use the proceeds from this offering for working capital purposes. We
relied on exemptions provided by Section 4(2) of the Securities Act of 1933, as amended. We made this offering based on the following
facts: (1) the issuance was an isolated private transaction which did not involve a public offering; (2) there were 4 offerees,
(3) the offerees have agreed to the imposition of a restrictive legend on the face of the stock certificate representing the shares
indicating the stock cannot be resold unless registered or an exemption from registration is available; (4) the offerees were
sophisticated investors familiar with our company and stock-based transactions; (5) there were no subsequent or contemporaneous
public offerings of the stock; (6) the stock was not broken down into smaller denominations; and (7) the negotiations for the
sale of the stock took place directly between the offerees and our management.



In
August of 2011, 2 investors submitted subscription agreements to the Company regarding the purchase of 650,000 shares of the Company’s
Common Stock at a price of $.05 per share, or cash payment of total $32,500. The transaction was independently negotiated between
the Company and the investors. The Company evaluated the transaction based on the fact that the Company had nominal trading volume
for its stock, and had negative shareholder equity at the time entering the subscription agreements. The proceeds from the subscription
agreements, which were collected in full during the fourth quarter of 2011, mitigated the Company’s cash pressure in short
term. The 650,000 shares have not been granted or issued as of the date of this report.



Purchases
of Equity Securities by the Small Business Issuer and Affiliated Purchasers



None.



Transfer
Agent



Our
transfer agent is Guardian Registrar & Transfer, Inc. located at 7951 SW 6th Street, Suite 216, Plantation, Florida 33324.



ITEM
6. SELECTED FINANCIAL DATA





If the registrant qualifies as a smaller reporting
company as defined by Rule 229.10(f)(1), it is not required to provide the information required by this Item.





ITEM 7.
MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION



Forward
Looking Statements



Certain
statements in this report, including statements of our expectations, intentions, plans and beliefs, including those contained
in or implied by "Management's Discussion and Analysis" and the Notes to Consolidated Financial Statements, are "forward-looking
statements", within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
that are subject to certain events, risks and uncertainties that may be outside our control. The words “believe”,
“expect”, “anticipate”, “optimistic”, “intend”, “will”, and similar
expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements.
These forward-looking statements include statements of management's plans and objectives for our future operations and statements
of future economic performance, information regarding our expansion and possible results from expansion, our expected growth,
our capital budget and future capital requirements, the availability of funds and our ability to meet future capital needs, the
realization of our deferred tax assets, and the assumptions described in this report underlying such forward-looking statements.
Actual results and developments could differ materially from those expressed in or implied by such statements due to a number
of factors, including, without limitation, those described in the context of such forward-looking statements, our expansion strategy,
our ability to achieve operating efficiencies, our dependence on distributors, capacity, suppliers, industry pricing and industry
trends, evolving industry standards, domestic and international regulatory matters, general economic and business conditions,
the strength and financial resources of our competitors, our ability to find and retain skilled personnel, the political and economic
climate in which we conduct operations and the risk factors described from time to time in our other documents and reports filed
with the Securities and Exchange Commission (the "Commission"). Additional factors that could cause actual results to
differ materially from the forward-looking statements include, but are not limited to: 1) our ability to successfully develop
and deliver our products on a timely basis and in the prescribed condition; 2) our ability to compete effectively with other companies
in the same industry; 3) our ability to raise sufficient capital in order to effectuate our business plan; and 4) our ability
to retain our key executives.



Critical
Accounting Policies



We
prepare financial statements in conformity with U.S. GAAP, which requires us to make estimates and assumptions that affect the
amounts reported in our combined and consolidated financial statements and related notes.  We periodically evaluate these
estimates and assumptions based on the most recently available information, our own historical experience and various other assumptions
that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying
values of assets and liabilities that are not readily apparent from other sources.  Since the use of estimates is an integral
component of the financial reporting process, actual results could differ from those estimates.  Some of our accounting policies
require higher degrees of judgment than others in their application.  We believe the following accounting policies involve
the most significant judgments and estimates used in the preparation of our financial statements.





(28)







Revenue
recognition



In
accordance with guidance by paragraph 605-10-S99-1 of the FASB ASC for revenue recognition, the Company recognizes revenue when
persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered, the selling price
is fixed or determinable and collectability is reasonably assured. The Company provides a warranty, but only in as much as the
products conform to their descriptions and that they are reasonably fit for the purpose stated on the label, when used properly
under normal conditions.



(a)
Sale of products



The
Company recognizes revenue from the sale of products upon delivery to the customers and the transfer of title and risk of loss.
The Company did not record any product returns for the years ended December 31, 2011 and 2010, respectively.



(b)
License income



License
income is generated from the sale of license agreements, and optional license agreements, to approved distribution partners that
desire to represent the Company in developing sales and marketing agreements with potential wholesale customers. The license fee
paid by the approved distribution partners is nonrefundable, one-time charge and independent from the sale of products or services.
The Company amortizes licensing revenue on a straight-line basis over the relative license periods.



Accounts
Receivable



Accounts
receivable are recorded at the invoiced amount and do not bear interest. The Company extends unsecured credit to its customers
in the ordinary course of business but mitigates the associated risks by performing credit checks and actively pursuing past due
accounts. An allowance for doubtful accounts is established and determined based on managements’ assessment of known requirements,
aging of receivables, payment history, the customer’s current credit worthiness and the economic environment. As of December
31, 2011 and 2010, the Company had allowances for uncollectible accounts of $2,577 and $2,332, respectively.



Inventory



Inventories
consist of finished goods and are valued at lower of cost or market value, cost being determined on the first-in, first-out method.  The
Company periodically reviews historical sales activity to determine excess, slow moving items and potentially obsolete items and
also evaluates the impact of any anticipated changes in future demand.  The Company provides inventory allowances based
on excess and obsolete inventories determined principally by customer demand.   As of December 31, 2011 and 2010, the
Company did not record an allowance for obsolete inventories. The Company has periodically written off obsolete inventory. Inventory
write-offs totaled $2,557 during the year ended December 31, 2011.



Stock-Based
Compensation



The
Company accounts for stock-based compensation using the fair value method following the guidance set forth in ASC 718-10 for disclosure
about Stock-Based Compensation. This section requires a public entity to measure the cost of services received in exchange for
an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized
over the period during which a consultant is required to provide service in exchange for the award within the requisite service
period (usually the vesting period). No compensation cost is recognized for equity instruments for which consultants do not render
the requisite service. During the year ended December 31, 2011 and 2010, the Company recorded $75,000 and $50,000, respectively,
in compensation expense based on the fair value of services rendered in exchange for common shares issued to the consultants.
These approximated the fair value of the shares at the dates of issuances.



Important
Factors Affecting our Results of Operations



We
believe significant factors exist that could affect our operating results, including the (i) cost of raw materials, (ii) the ability
to identify and hire qualified sales people and management personnel to drive our sales expansion, (iii) prices of our products
to our retailers and wholesalers and their markup to the end users, (iv) consumer acceptance of new products, and (v) general
economic conditions in the US markets.



Recent
economic factors, namely the recession and the effects thereof, have adversely affected our operating results. In
addition, we have missed certain opportunities to convert prospective retail partners into customers. Although missed
opportunities can be easily tied to the same economic factors, management believes that with partial or full funding from our
current public offering, we can improve the quality and the quantity our sales efforts, and this will enable us to bring on
new customers and retain current customers.



Management
believes that increasing the number of places that sell our exclusive products, even if per store sales are significantly lower
than that of the company’s retail store, is the most prudent strategy for expanding the business at this time. By spreading
the sales revenue goal among more stores, the dependence on the performance of any one store is reduced, thereby increasing the
likelihood that the company will enjoy positive growth in the future, so long as the company generates enough revenue to meet
its obligations and expenses as well as to be able to afford an adequate number of experienced sales and support staff.





(29)







Results
of Operations



The
following tables set forth key components of our results of operations for the periods indicated, in dollars and as a percentage
of revenue.



(All
amounts in thousands of U.S. dollars, except for the percentages)



|Consolidated
    Statements of Operations Data |  | For the year ended 
     December 31, 2011 |          | For the year ended
     December 31, 2010
|---------------------------------------------- |  | ------------------------------------------ | -------- | -----------------------------------------
|                                               |  | (restated)                                 |          |                                          
|                                               |  | USD                                        |          | % of
     Revenue                        
|Revenues                                       |  | $                                          | 837,159  |                                          
|Cost of Sales                                  |  | $                                          | (362,344 | )                                        
|Gross profit                                   |  | $                                          | 474,815  |                                          
|Operating expenses                             |  | $                                          | 867,256  |                                          
|(Loss) from operations                         |  | $                                          | (392,441 | )                                        
|Other (expense)                                |  | $                                          | (77,549  | )                                        
|Net loss before income taxes                   |  | $                                          | (469,990 | )                                        
|Net (loss)                                     |  | $                                          | (469,990 | )                                        



Revenues



Our
revenues consist of the sale of our fertility products less, returns and allowances, and the sale of license agreements. We currently
sell our products directly to ultimate end users via our retail store located in downtown Matthews; we also sell them to non-related
retailers and wholesalers who then sell such products to the ultimate end users. To date, returns and allowances have been virtually
non-existent and as such have had no material effect on our revenues. The revenues from the sale of license agreements, and optional
license agreements are in connection with our approval to the distribution partners that desire to represent us in developing
sales and marketing agreements with potential wholesale customers. We amortize licensing revenue on a straight-line basis over
two years when license period begins.



Revenues
for the years ended December 31, 2011 and 2010 was $837,159and $1,009,078, respectively, including
licensing revenue of $42,788 and $32,083, respectively. The decrease in 2011 by $171,919, or approximately 17.0%, was due to the
impact from changes in our business model / marketing strategy, and simultaneous effects from a weakening economy. Management
believes that the effects from the ongoing recession or weakened economy will continue to hamper growth unless the Company increases
the number of retail partners purchasing products on a consistent basis. Further, management believes that the receipt of partial
or full funding from current public offering will enable the Company to expand the Company’s sales efforts on increasing
the number of retail partners. In that case, new revenues over the next 18-24 months will be expected to grow at a pace greater
than our operating expenses and bring about profitability. However, there is no assurance that revenues will grow and there is
reason to believe that sales will continue to decline under the current economic climate.



There
are several trends that currently affect our revenues.



i)
Economic Trends: Management conservatively expects that effects from the recession will continue to linger through 2012 and into
2013. Lingering effects from the recession could continue to adversely affect revenues and gross profits, and if this occurs it
could adversely affect the company’s ability to continue operations.



ii)
Consumer Trends: Management expects that, generally, consumers will show increased interest in products that support sustainability,
conserve energy, conserve water and use less natural resources. Although this statement is unsubstantiated, it is widely accepted
that, globally, consumers are tending towards a greater concern for the environment and using products that have a lower impact
on the environment and the use of natural resources. Without partial or full funding to provide for initial sales force expansion
and the development of new packing and branding strategy the company will be likely not be in a sufficient position to take full
advantage of this increased interest.





(30)







In
order to reduce the impact from financial crisis, our management decided to shift our business model in 2009 to include new distribution
through established retail outlets such as hardware stores, independent garden centers and nurseries, referred as our “Retail
Partners”. We believe these Retail Partners enable us to expand awareness and distribution of our exclusive products, while
maximizing sales through the added exposure to the Retail Partner’s existing customer base. However, the increase in numbers
of Retail Partners in the Charlotte area has an adverse effect on retail sales at the Matthews retail store, because of the close
proximity, and causes the decrease in our total revenue during the short term. We believe the gross revenues from Retail Partners,
as the number of retail partners increase over time, will far exceed Matthews’ retail store sales potential, resulting in
greater long-term revenue stability and profitability.



|                                                   |  | Matthews Retail |         | Wholesale Partners
|-------------------------------------------------- |  | --------------- | ------- | ------------------
|Revenue Jan 1,-Dec. 31, 2009 (less Sales
    Tax): |  | $               | 853,260 |                   
|Revenue Jan 1,-Dec. 31, 2010 (less Sales Tax):     |  | $               | 721,264 |                   
|Revenue Jan 1,-Dec. 31, 2011 (less Sales Tax):     |  | $               | 508,786 |                   



The
above chart shows a decline in retail sales at the Matthews Retail Store, with an offsetting increase in Wholesale sales. Although
the offset shown here is not balanced, it does illustrate the trend we expect to continue, with one caveat – we anticipate
that annual retail sales will level off by the end of 2013, as we do not anticipate adding more retail partners in the Charlotte
NC metro area after that time. Thus, assuming a strengthening economy, retail sales will likely rebound slightly at the Matthews
Retail store, while wholesale revenues should continue to climb. Although management believes this is the trend, there is no assurance
that this trend will continue, and there is no assurance that revenues, in general, will not continue to decline in the current
economic climate.



In
2009 we started with 3 Retail Partners. In 2010 we added 21 Retail Partners. In 2011, we added 6 Retail Partners and stopped selling
products to 4 Retail Partners. The failure to achieve greater wholesale growth in 2011 was due to the company’s primary
sales person missing a great deal of work time because of serious illness and personal family issues that kept him from achieving
our sales objectives.



Management
believes that the extenuating circumstances mentioned above, in large part, prevented the Company from generating incremental
revenue growth in 2011. Further, if we receive partial or full funding from current public offering, management plans to hire
additional sales and support staff that are expected to bring on new retail partners, generating an additional $500,000.00 to
$1,100,000.00 in additional wholesale revenue, (based on the average retail partner purchasing $11,673.00 or more annually).



This
new staff will increase the number of retail partners selling our products at a substantially higher rate and faster
pace than previously achieved. Past sales efforts were hindered by the lack of funding to support adequate sales and
support staff. The new staff hired with funds from our current public offering will, after having been trained by company
management, possess adequate sales and communication skills to identify prospective retail partners and communicate to them
the benefits of offering the company’s products to their end-use customers. The new support staff planned will provide
the sales staff the opportunity to focus their efforts and spend more time developing new prospective retail partners, and
less time managing the day-to-day tasks of managing any given account. This simple division of labor will provide greater
resources to be available to increase the number of retail partners offering the company’s products. Although
management plans to hire additional sales and support staff with funds received from our current public offering, there is no
assurance that they will be successful in achieving the retail partner goals established for them.



This
sales growth is expected to be incremental over the next several years, as we continue to add more sales people as we expand into
new markets. Although management plans to achieve these general sales goals, there is no assurance that we will be able to hire
additional sales people, and if we are able to hire them, there is no assurance that those sales people will be able to generate
gross revenues as described hereto.





(31)







Cost
of Goods Sold



Our
cost of goods sold consists primarily of costs of raw materials and direct labor, and other costs directly attributable to the
production of our products. Write-down of inventories to lower of cost or market is also recorded in cost of goods sold. Cost
of goods sold for the year ended December 31, 2011 was $362,344, decreased by $103,626, or approximately 22.2% from $465,970 for
the year ended December 31, 2010. Such decrease was due to a decrease in retail sales at our Matthews store during 2011, and the
sales from our Retail Partners did not pick up due to the economy. We experienced a slightly higher cost on certain commodity
components, and reduced costs on certain other commodity components in 2011. Commodity components that increased in cost include
a pasteurized poultry litter base that provides a source of organic nutrients, (Nitrogen, Phosphorous and Potassium), as well
as beneficial bacteria and micorrhizal fungi, which add bio-diversity to the soil. Commodity components that decreased in cost
include one source or organic acids (Humic Acid and Fulvic Acid derived from plant extracts). Although we achieved a greater impact
in overall retail sales for the region, fewer of those retail sales occurred at our Matthews retail store. As referenced above,
we believe the long-term gross revenues from our increasing number of wholesale customers will far exceed the sales potential
at our Matthews’ retail store, simply because adding additional wholesale partners is much faster and significantly less
costly than expanding our existing retail store, or opening additional brick and mortar retail stores.



There
are several trends that currently affect our cost of goods sold:



i)
Commodity price volatility: The current weakened economy has increased the volatility of commodity prices for raw materials. The
company has not seen a significant increase in raw materials, nor do we expect one, however the current economic instability could
cause price fluctuations. If these price fluctuations resulted in higher raw goods prices this could have an adverse effect on
our operations, as it would increase our cost of goods sold. It is the nature of commodities to fluctuate in price based on supply
and demand forces. Over the past several years one of the largest consumers of raw goods has been China, since its middle class
has been expanding, creating increased demand for goods. If this trend continues it could have an adverse effect on our ability
to receive favorable pricing on certain of our commodity based products. However, management does not believe that this will affect
our long-term pricing outlook. Most, if not all, of our raw materials now come from the United States, or at least North America
and we do not anticipate great price volatility with respect to those components. However, if such price volatility occurs, and
it could, this would have an adverse effect on our cost of goods sold and negatively affect our operations.



ii)
Cost of Direct Labor Trends: The current weakened economy has increased the company’s ability to hire and retail direct
labor at a reasonable cost. We anticipate this to be consistent through 2012 and into 2013. However, if the economy were to sharply
improve our direct labor costs could increase. If this were to occur, it would result in higher direct labor costs and this would
have an adverse effect on our operations, as it would reduce our gross profit margins.



We
have made efforts to reduce cost of goods sold wherever possible. Some of the results from these efforts have come from negotiating
lower pricing with certain manufacturers of raw goods, or choosing to work with new suppliers that can provide similar quality
goods at a lower cost. We will continue to monitor our vendor pricing relative to other similar vendors to ensure we have competitive
pricing associated with our raw materials. Further, we have explored options with our vendors for purchasing in larger quantities,
which would reduce our per unit price. We will continue to work with our vendors to make sure we are taking advantage of every
opportunity afforded to us to reduce our materials cost. However, there is no assurance that any prices we have negotiated will
continue to be available to us in the future, and if our costs were to rise significantly, it would have an adverse effect on
operations.



(32)









Gross
profit



Our
gross profit is obtained based upon our total revenues minus our cost of goods sold for a particular period. Gross profit for
the year ended December 31, 2011 was $474,815, decreased by $68,293, or approximately 12.6% from $543,108 for the year ended December
31, 2010. The decrease in gross profit during the year ended December 31, 2011 was primarily attributable to the increase in less
profitable wholesale sales to our retail partners compared to 2010 and a decrease in the more profitable retail sales from our
Matthews retail store. Gross profits also continue to be adversely affected by ongoing effects from the recession. We expect the
recession to continue to impact sales and gross profits negatively over the nest 2-3 years. Even if the economy recovers more
quickly than expected, there is no assurance that sales and gross profits will increase.



Operating
expenses



Our
operating expenses were $867,256 for the year ended December 31, 2011,approximately equal to as operating expenses in
2010, which was $862,211. Our fixed expenses remained fairly constant from year to year. We realized
some savings as the result of lower sales activity in 2011, such as the decrease in salaries by $78,856. We are working to reduce
some of the fixed expenses to maintain positive cash flow during 2011. However, the reduction in fixed expenses was offset by
the additional expenses incurredas a result of becoming a publicly traded company in the United States. Such increase
included legal service fees, audit fees and other cash or non-cash payments for professional services.
In addition, we expect an increase in overall expenses during 2012 due to the plan to hire 2-3 new sales employees. However, there
is no assurance that we will be able to hire new sales and support staff, and this could negatively affect our ability to generate
new sales for the period and this could impact the Company’s operations and ability to continue operations.



Management
has determined that executing a new packaging strategy will reduce our expenses associated with this part of our operating expenses.
We have retained Kaleidoscope-Chicago, a branding and packaging design company to help us with the development of this packaging
strategy. This will include pre-printed bags and pre-printed product labels. Not only will this reduce our expenses, it will help
us to compete better, head-to–head on retailer shelves. Currently all products labels are printed in-house at greater cost
per unit, but with lower upfront costs. We anticipate converting to the new packaging in early 2012. However if we are not able
to convert to the new packaging strategy, our expenses will remain higher and this could negatively affect operations, and could
cause our end pricing to the retailer to be so high as to not be competitive. This would also affect our revenues and our sell
through at the retail level and this could jeopardize the Company’s ability to generate sufficient revenue to continue operations.



Interest
expense



Interest
expense for the year ended December 31, 2011 was $77,549, increased by $42,653, or approximately 122.2%, compared to
interest expense of $34,896 for the year ended December 31, 2010. An increase in interest expenses in 2011 was due
primarily to interest charges on a convertible promissory note in amount of $100,000 (the “Note”), dated January
1, 2011. The Note bears interest at a rate of 6% per annum and is discounted in full amount due to the issuance of 1,000,000
shares of Common Stock as sweetener to the Note, and a beneficial conversion feature. The fair value of the 1,000,000 shares
was $68,245 determined by an arm’s length payable settlement with a non-affiliate since there was nominal trading
volume of our common stock in the market, and recorded as discount to note payable, which will be amortized over 2 years
starting from January 1, 2011. The remaining discount of $31,755 represented the intrinsic value of the beneficial conversion
option. Pursuant to the Note, all or any portion of the accrued interest and unpaid principal balance of the Note is
convertible at the option of the holder into the Common Stock of the Company or its successors, at Ten Cents ($.10) per
share, no sooner than September 30, 2012. We recorded interest expense from the Note of $56,000 during the year of
2011.



In
addition, we have a loan payable to Mark Blumberg (“Mr. Blumberg”), a former member of the Company, at an interest
rate of 5.75% per annum and due on October 1, 2015. The loan was due to the redemption of Mr. Blumberg’s membership of the
Company pursuant to a settlement agreement entered on January 1, 2011. We recorded interest expenses of $5,886 during the year
ended December 31, 2011.



Net
loss



Net
loss for the year ended December 31, 2011 was $469,990, increased by $116,016compared to net
loss of $353,974 for the year ended December 31, 2010. The increase in net loss was primarily attributable to the decrease in
gross profit and the increase in interest expenses during the year of 2011.



(33)









Liquidity
and Capital Resources



The following
table sets forth a summary of our net cash flow information for the periods indicated:



(All
amounts in U.S. dollars)



|                                                    |  |  |  | For  the Year          
|--------------------------------------------------- |  |  |  | -----------------------
|                                                    |  |  |  | Ended
     December 31,
|                                                    |  |  |  |                        
|                                                    |  |  |  |                        
|                                                    |  |  |  |                        
|Net cash (used in)/provided by operating activities |  |  |  |                        
|Net cash (used in)/provided by investing activities |  |  |  |                        
|Net cash provided by/(used in) financing activities |  |  |  |                        
|                                                    |  |  |  |                        
|Net increase (decrease) in cash and equivalents     |  |  |  |                        
|Cash and cash equivalents, beginning of period      |  |  |  |                        
|Cash and cash equivalents, end of period            |  |  |  |                        



*The above financial data have been derived from our audited consolidated financial statements for the fiscal year ended December
31, 2011 and 2010.



Operating
Activities



Net
cash used in operating activities was $267,218 and $1,710 for the years ended December 31, 2011 and 2010, respectively. Negative
cash flows from operation during the year ended December 31, 2011 was due primarily to the net loss of $469,990, the increase
in accounts receivable in an amount of $43,470 and the decrease in account payable by $97,244, partially offset by the decrease
in inventory by $87,380, the increase in accrued expense and deferred revenue in amount of $15,531 and $37,212, respectively,
and the non-cash expenses in total of $157,829, which included bad debt expenses of $2,720, depreciation of $30,109, amortization
of discount to note payable in amount of $50,000, and common stock issued for services rendered in an amount of $75,000. We issued
1,000,000 shares of common stock to a consultant for business advisory services in a term of six months
effective from May 15, 2011 ending November 15, 2011.The shares were valued at $.075 per share based on the facts that
we had nominal trading volume for our stock, and had negative shareholder equity at the time entering the agreement. Comparatively,
negative cash flows in 2010 were due primarily to the net loss of $353,974, partially offset by the non-cash expenses in total
of $82,725, the decrease in accounts receivable and inventory in the amount of $21,860 and $96,502, respectively, and the increase
in accounts payable and accrued expenses in the amount of $104,226 and $15,254, respectively.



Accounts
Receivables increased during the year ended December 31, 2011 as the result of sales on account to new wholesale customers and
one wholesale distributor that did not purchase products during the comparable period in 2010. This number was also elevated because
a wholesale distributor was overdue on his payment to the company. Had the distributor paid the invoice when due, the accounts
receivable number for the year ended December 31, 2011 would have been reduced by about $12,000.  Subsequently, the $12,000
has been collected in full as of the year ended December 31, 2011.



The
overdue invoice referenced above was related to a licensing fee payment and various products purchased by the distributor. The
invoice has since been paid and is no longer outstanding. The reason the invoice was unpaid was related to a dispute between the
two partners owning the distributorship. The dispute resulted in one partner selling his ownership to the other partner, thus
causing an unexpected shortfall in the distributors cash flow.



Prior
to offering credit to customers who wish to purchase company products on account, the customer will furnish a credit application
with references to the company. The company will contact the references and, based on the information collected, determine whether
a credit line should be established for a given customer. If a credit line is established, the customer will be given payment
terms, (standard payment terms are Net due in 30 days from the date of invoice), and expected to keep their accounts in good standing.
Although a credit review is performed on every new customer applying to purchase products on account, there is no assurance that
the customers will pay their outstanding balances in a timely manner, if ever.



Incidentally,
the company has standard payment terms for payments on accounts receivable. Our standard payment terms for purchases on account
are Net due in 30 days. Occasionally, as part of an early order promotion or other special event, we will offer 45, 60 or 90 day
terms, depending on the circumstances of the promotion.





(34)







Investing
Activities



Cash
used in investing activities mainly consists of capital expenditures, expenditures for property, plant, and equipment.



Net
cash used in investing activities was $303 and $411 for the years ended December 31, 2011 and 2010, respectively, due primarily
to purchase of property and equipment in both years.



Financing
Activities



Net
cash provided by financing activities was $303,547 for the year ended December 31, 2011, compared to net cash of $20,511
used in financial activities during the year of 2010. Positive cash flows from financing activities in 2011 were due primarily
to the proceeds from notes payable in an amount of $182,500, of which $42,500 from related parties, and the proceeds from stock
issuance in amount of 205,482, offset by the payments of total $84,435 to notes payable, of which $22,500 was in connection with
related parties’ loan. Negative cash flows from financing activities in 2010 was due to the payments of total $40,511 to
notes payable, offset by the proceeds of $20,000 from related parties loan.



Loan
Facilities



We
believe that we currently maintain good business relationships with our local banks and note holders. As of December 31, 2011
and 2010, our outstanding loans payable to non-affiliates on the accompanying consolidated balance sheets were as follows:



|                                                                                             |  | 2011 |           |  | 2010 |  
|-------------------------------------------------------------------------------------------- |  | ---- | --------- |  | ---- | -
|Bank
    of Granite, 8.5% interest rate, due on March 26, 2012 (1)                           |  | $    | 2,377     |  |      | $
|Bank
    of NC, 6.5% interest rate, due on June 30, 2013 (2)                                 |  |      | 66,337    |  |      |  
|Greentree
    Financial Group, 6% interest rate, due on January 1, 2013, net of discount (3) |  |      | 50,000    |  |      |  
|NEKCO
    LLC, 20% interest rate, due on April 21, 2012 (4)                                  |  |      | 40,000    |  |      |  
|Mark
    Blumberg, 5.75% interest rate, due on October 1, 2015 (5)                           |  |      | 96,823    |  |      |  
|Total
    notes payable                                                                      |  | $    | 255,537   |  |      | $
|Less:
    Current portion of notes payable                                                   |  |      | (103,310) |  |      |  
|Total
    long-term notes payable                                                            |  | $    | 152,227   |  |      | $
|                                                                                             |  |      |           |  |      |  



(1)	The
Company has a line of credit with Bank of Granite at an interest rate of prime plus 3 % per annum. The balance on this credit
line was $2,377 as of December 31, 2011. Accordingly, the Company recorded interest expenses of $1,682 and $2,510 during the years
ended December 31, 2011 and 2010, respectively.



(2)	The
Company has loan payable to Bank of North Carolina at an interest rate of 6.5% per annum and due on June 30, 2013. The balance
of this bank loan was $66,337 as of December 31, 2011, of which $48,237 was classified as short-term loan payable. The Company
recorded interest expenses of $4,968 and $13,551 during the years ended December 31, 2011 and 2010, respectively.



(3)	On
January 1, 2011, the Company entered into a convertible promissory note (the Note) in a principal amount of $100,000
payable to Greentree Financial Group (“Greentree”), which bears an interest rate of 6% per annum and is due on
January 1, 2013. Pursuant to the Note, Greentree has an option to convert all or any portion of the accrued interest and
unpaid principal balance of the Note into the Common Stock of the Company or its successors, at Ten Cents ($.10) per share,
no sooner than September 30, 2012. The conversion price associated with the Note was determined based on the facts that the
Company had nominal trading volume for its stock, and had negative shareholder equity at the time of issuance.





(35)







The
Note is discounted in full amount due to the issuance of 1,000,000 shares of Common Stock as sweetener to the Note, and a beneficial
conversion feature. The fair value of the 1,000,000 shares was $68,245 determined by an arm’s length payable settlement
with a non-affiliate since there was nominal trading volume of our common stock in the market, and recorded as discount to note
payable, which will be amortized over 2 years starting from January 1, 2011. The remaining discount of $31,755 represented the
intrinsic value of the beneficial conversion option, which will be amortized over 2 years starting from January 1, 2011. The Company
recorded interest expense related to this note of $56,000 for the year ended December 31, 2011.



The
carry value of the Note was $50,000 as of December 31, 2011. The 1,000,000 shares of Common Stock were issued on May 13, 2011.



(4)	The
Company has loan payable to NEKCO, LLC in amount of $40,000 (“Principal Amount”) due on April 21, 2012 (“Maturity
Date”). Interest will accrue on the unpaid balance of the Principal Amount from December 21, 2011 until the maturity date
of April 21, 2012, at the fixed rate of 20.0% calculated on the basis of a flat interest payment if the loan is repaid on or before
Maturity Date. Accordingly, the Company recorded interest expense of $241 related to this note during the year ended December
31, 2011.



(5)	The
Company has a loan payable to Mark Blumberg (“Mr. Blumberg”), a former member of the Company, at an interest rate
of 5.75% per annum and due on October 1, 2015. The loan was due to the redemption of Mr. Blumberg’s membership of the Company
pursuant to a settlement agreement entered on January 1, 2011. The balance of this loan was $96,823 as of December 31, 2011, of
which $12,697 was classified as short-term loan payable. The Company recorded interest expenses of $5,886 during the year ended
December 31, 2011.



We
do not foresee a squeeze on the availability of credit to fund our operations and meet our growth objectives.



In
addition, we had outstanding balances on our notes payable to related parties of the following amounts as of December 31, 2011
and 2010:



|                                                                               |  | 2011 |           |  | 2010
|------------------------------------------------------------------------------ |  | ---- | --------- |  | ----
|Shareholder
    loans, Prime plus 2.5% interest rate, due July 2012            |  | $    | 55,800    |  |     
|Loans
    from officer, 5.5% interest rate, due on demand                      |  |      | 60,884    |  |     
|Loan
    from officer, 0% interest rate, due on demand                         |  |      | 0         |  |     
|Loans
    from company owned by shareholders, 5.5% interest rate, due May 2016 |  |      | 42,500    |  |     
|Total
    notes payable – related parties                                      |  | $    | 159,884   |  |     
|Less:
    Current portion of notes payable – related parties                   |  |      | (116,684) |  |     
|Total
    long-term note payable – related parties                             |  | $    | 42,500    |  |     



In
July 2009, the Company’s shareholders made several loans in total amount of $275,000 to the Company to fund its operations.
The shareholder loans were evidenced by promissory notes due in July 2012, with interest at the floating interest rate of Prime
plus 2.5%. The interest rate will be adjusted each calendar quarter of January 1, April 1, July 1 and October 1. The principal
balance of the shareholder loans was $55,800 as of December 31, 2011 and 2010. Accordingly, the Company recorded interest expenses
of $3,209 and $15,341 during the years ended December 31, 2011 and 2010, respectively.



In
addition, the Company had outstanding balances of $60,884 due to the Company’s President as of December 31, 2011. The funds
borrowed from the Company’s President were to fund the Company’s operations. The loan agreement was not evidenced
by any promissory note, but rather a verbal agreement between the President and the Company. The note is due on demand. Accordingly,
the Company recorded interest expenses of $3,584 and $3,239 during the years ended December 31, 2011 and 2010, respectively.



The
Company has a loan payable to US Green Pros, LLC at an interest rate of 5.5% per annum and which is due in full on May 17, 2016.
The balance of this loan was $42,500 as of December 31, 2011, of which $40,000 was received during the second quarter of 2011.
Accordingly, the Company recorded interest expenses of $0 during the year ended December 31, 2011. Interest will begin to accrue
on January 1, 2012.



(36)









Capital
Expenditures



We
project that we will need additional capital to fund operations over the next 12 months. We anticipate we will need a minimum
of $500,000 additional funds for the year of 2012 to meet our expansion objectives.



Overall,
we have funded our cash needs from inception through December 31, 2011 with a series of debt and equity transactions, primarily
with related parties. If we are unable to receive additional cash from our related parties, we may need to rely on financing from
outside sources through debt or equity transactions. Our related parties are under no legal obligation to provide us with capital
infusions. Failure to obtain such financing could have a material adverse effect on operations and financial condition.



We
had cash of $42,651 on hand as of December 31, 2011. Currently, we do not have enough cash to
fund our operations for the next 12 months. This is based on current negative cash flows from operation and working capital deficit.
Therefore, we will need to obtain additional capital through equity or debt financing to sustain operations for an additional
year. Our current level of operations would require capital of approximately $500,000 per year starting in 2011. Modifications
to our business plans may require additional capital for us to operate. For example, if we are unable to raise additional capital
in the future we may need to curtail our number of product offers or limit our marketing efforts to the most profitable geographical
areas. This may result in lower revenues and market share for us. In addition, there can be no assurance that additional capital
will be available to us when needed or available on terms favorable to us.



On
a long-term basis, liquidity is dependent on continuation and expansion of operations, receipt of revenues, and additional
infusions of capital and debt financing. Our current capital and revenues are insufficient to fund such expansion. If we
choose to launch such an expansion campaign, we will require substantially more capital. The funds raised from our current
public offering will also be used to market our products and services as well as expand operations and contribute to working
capital. However, there can be no assurance that we will be able to obtain additional equity or debt financing in the future,
if at all. If we are unable to raise additional capital, our growth potential will be adversely affected and we will have to
significantly modify our plans. For example, if we are unable to raise sufficient capital to develop our business plan, we
may need to:



|· | Curtail new product launches                                                                 
|- | ---------------------------------------------------------------------------------------------
|· | Limit our future marketing efforts
    to areas that we believe would be the most profitable.



Demand
for the products and services will be dependent on, among other things, market acceptance of our products, organic-based fertilizer
market in general, and general economic conditions, which are cyclical in nature. Inasmuch as a major portion of our activities
is the receipt of revenues from the sales of our products, our business operations may be adversely affected by our competitors
and prolonged recession periods.



Our
success will be dependent upon implementing our plan of operations and the risks associated with our business plans. We manufacture,
trade and distribute contemporary, professional grade, organic, natural and environmentally responsible products for the continual
care of the urban landscape through our wholly-owned subsidiary and our Retail Partners. We plan to strengthen our position in
these markets. We also plan to expand our operations through aggressively marketing our products and our concept.



Seasonality



Our
operating results and cash flows historically have been subject to seasonal variations. Because a high percentage of our
sales are from lawn care fertilizers, revenues increase proportionately during the fall, late winter and spring months. Conversely,
our sales cycle dips during the summer months and early winter months. As we expand our sales into other parts of the country
and online via our ecommerce website, our sales cycles will broaden and we will experience fewer peaks and valleys. However, this
expansion process will take time to develop and until this occurs, we will continue to experience revenues in a cyclical fashion.



Off-Balance
Sheet Arrangements



We
have not entered into, nor do we expect to enter into, any off-balance sheet arrangements.  We also have not entered into
any financial guarantees or other commitments to guarantee the payment obligations of third parties.  In addition, we have
not entered into any derivative contracts that are indexed to our equity interests and classified as shareholders’ equity. 
Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves
as credit, liquidity or market risk support to such entity.  We do not have any variable interest in any unconsolidated entity
that provides financing, liquidity, market risk or credit support to us or that engages in leasing, hedging or research and development
services with us.





(37)







ITEM
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK



We
are exposed to market risks, including changes in interest rates. The interest payable under our credit facility, under which
we had $30,137 at December 31, 2011, is based on a specified bank’s prime interest rate and, therefore, is affected by changes
in market interest rates. Historically, the effects of movements in the market interest rates have been immaterial to our operating
results, as we have not borrowed to any significant degree until 2011. In 2011, we incurred significant debt from loans by convertible
notes payable to non-affiliates and notes payable to our related parties. This debt has fixed rates of interest and in management’s
opinion does not represent a material market risk.



ITEM 8.
FINANCIAL STATEMENTS



Financial
Summary Information



Because
this is only a financial summary, it does not contain all the financial information that may be important to you. It should be
read in conjunction with the consolidated financial statements and related notes presented in this section.



Audited
Financial Summary Information for the Years Ended December 31, 2011 and 2010



|Statements of Operations  |  | For the year ended December
    31,
|------------------------- |  | -----------------------------------
|                          |  | 2011                               
|Revenues                  |  | $                                  
|Cost of Sales             |  | $                                  
|Gross profit              |  | $                                  
|Operating expenses        |  | $                                  
|(Loss) from operations    |  | $                                  
|Interest expense          |  | $                                  
|Net income (loss)         |  | $                                  
|Net loss per common share |  |                                    
|                          |  |                                    



|Balance Sheet                                  |  | As
    of December 31, 2011
|---------------------------------------------- |  | ---------------------------
|                                               |  |                            
|Cash                                           |  | $42,651                    
|Total current assets                           |  | $                          
|Other assets                                   |  | $                          
|Total Assets                                   |  | $                          
|Current liabilities                            |  | $                          
|Long term liabilities                          |  | $                          
|Stockholders’ equity                           |  | $                          
|Total liabilities and stockholders’
    equity |  | $                          
|                                               |  |                            



(38)









|ORGANIC
        PLANT HEALTH INC. AND SUBSIDIARY
        CONSOLIDATED
        FINANCIAL STATEMENTS
        FOR
        THE YEARS ENDED DECEMBER 31, 2011 AND 2010
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------





Index
to Audited Consolidated Financial Statements





|                                                                      |  | Pages
|--------------------------------------------------------------------- |  | -----
|                                                                      |  |      
|Report of Independent Registered Public
    Accounting Firm           |  | 40   
|                                                                      |  |      
|Consolidated Balance Sheets                                           |  | 41   
|                                                                      |  |      
|Consolidated Statements of Operations                                 |  | 42   
|                                                                      |  |      
|Consolidated Statement of Stockholders’/Members’
    Equity (Deficit) |  | 43   
|                                                                      |  |      
|Consolidated Statements of Cash Flows                                 |  | 44   
|                                                                      |  |      
|Notes to Consolidated Financial Statements                            |  | 45-54







(39)









Silberstein
Ungar, PLLC CPAs and Business Advisors

Phone
(248) 203-0080

Fax
(248) 281-0940

30600
Telegraph Road, Suite 2175

Bingham
Farms, MI 48025-4586

www.sucpas.com



REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To
the Board of Directors

Organic
Plant Health, Inc.

Monroe,
North Carolina



We
have audited the consolidated balance sheets of Organic Plant Health, Inc. and Subsidiary as of December 31, 2011 and 2010, and
the related consolidated statements of operations, stockholders’ deficit, and cash flows for the years then ended. These
financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on
these financial statements based on our audits.



We
conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are
free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.



In
our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position
of Organic Plant Health, Inc. as of December 31, 2011 and 2010, and the results of its consolidated operations and its cash flows
for the years then ended in conformity with U.S. generally accepted accounting principles.



The
accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has suffered
losses in the two most recent fiscal years, has negative working capital, and generated a negative internal cash flow from operations
in 2011 and 2010 that raises substantial doubt about its ability to continue as a going concern. Management’s plans in regard
to these matters are described in Note 13. The financial statements do not include any adjustments that might result from the
outcome of this uncertainty.



/s/
Silberstein Ungar, PLLC



Silberstein
Ungar, PLLC



Bingham
Farms, Michigan



March
26, 2012





(40)









|ORGANIC
    PLANT HEALTH, INC. AND SUBSIDIARY                                                                                                                                
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|CONSOLIDATED
    BALANCE SHEETS                                                                                                                                              
|AS
    OF DECEMBER 31, 2011 AND 2010                                                                                                                                         
|                                                                                                                                                                             
|                                                                                                                                                                             
|ASSETS                                                                                                                                                                       
|Current Assets                                                                                                                                                               
|Cash and cash equivalents                                                                                                                                                    
|Accounts
    receivable, net                                                                                                                                                 
|Inventory                                                                                                                                                                    
|Total Current Assets                                                                                                                                                         
|                                                                                                                                                                             
|Property and equipment,
    net                                                                                                                                              
|                                                                                                                                                                             
|Other Assets                                                                                                                                                                 
|Security
    deposits                                                                                                                                                        
|Total Other Assets                                                                                                                                                           
|                                                                                                                                                                             
|TOTAL
    ASSETS                                                                                                                                                             
|                                                                                                                                                                             
|LIABILITIES AND STOCKHOLDERS'
    DEFICIT                                                                                                                                    
|LIABILITIES                                                                                                                                                                  
|Current Liabilities                                                                                                                                                          
|Accounts payable                                                                                                                                                             
|Notes payable - current
    portion                                                                                                                                          
|Notes payable - related
    parties                                                                                                                                          
|Accrued expenses                                                                                                                                                             
|Accrued interest                                                                                                                                                             
|Common stock to be
    issued                                                                                                                                                
|Deferred
    revenues                                                                                                                                                        
|Total Current Liabilities                                                                                                                                                    
|                                                                                                                                                                             
|Long-Term Liabilities                                                                                                                                                        
|Notes payable                                                                                                                                                                
|Notes
    payable - related parties                                                                                                                                          
|Total Long-Term Liabilities                                                                                                                                                  
|                                                                                                                                                                             
|TOTAL LIABILITIES                                                                                                                                                            
|                                                                                                                                                                             
|STOCKHOLDERS' DEFICIT                                                                                                                                                        
|Common stock, par
    value $0.001; 150,000,000 shares authorized; 61,215,081 and 12,112,214 shares issued and outstanding as of December 31, 2011
    and 2010, respectively
|Preferred stock, par
    value $0.001; 5,000,000 shares authorized; 0 and 4,000,000 shares issued and outstanding as of December 31, 2011 and 2010,
    respectively         
|Paid-in capital                                                                                                                                                              
|Accumulated
    deficit                                                                                                                                                      
|Total Stockholders'
    Deficit                                                                                                                                              
|                                                                                                                                                                             
|TOTAL
    LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                              
|                                                                                                                                                                             
|                                                                                                                                                                             
|The accompanying notes are
    an integral part of these consolidated financial statements                                                                                   







(41)









|ORGANIC
    PLANT HEALTH, INC. AND SUBSIDIARY                       
|--------------------------------------------------------------------
|CONSOLIDATED
    STATEMENTS OF OPERATIONS                           
|FOR
    THE YEARS ENDED DECEMBER 31, 2011 AND 2010                  
|                                                                    
|                                                                    
|                                                                    
|REVENUES                                                            
|Sales                                                               
|Cost
    of Goods Sold                                              
|GROSS
    PROFIT                                                    
|                                                                    
|OPERATING EXPENSES                                                  
|Professional fees                                                   
|Rent                                                                
|Bank and finance charges                                            
|Depreciation                                                        
|Advertising and promotion                                           
|Automobile                                                          
|Contract labor                                                      
|Credit card processing
    fees                                     
|Website maintenance                                                 
|Insurance                                                           
|Travel, meals and
    entertainment                                 
|Wages and taxes                                                     
|Commissions                                                         
|Supplies                                                            
|Telephone and utilities                                             
|Product development                                                 
|Bad debt                                                            
|General
    and administrative                                      
|TOTAL
    OPERATING EXPENSES                                        
|                                                                    
|LOSS
    FROM OPERATIONS                                            
|                                                                    
|OTHER INCOME (EXPENSE)                                              
|Other income 
    (expenses)                                        
|Interest
    expense                                                
|TOTAL
    OTHER INCOME (EXPENSE)                                    
|                                                                    
|LOSS BEFORE PROVISION
    FOR INCOME TAXES                          
|                                                                    
|PROVISION
    FOR INCOME TAXES                                      
|                                                                    
|NET
    LOSS                                                        
|                                                                    
|NET
    LOSS PER SHARE: BASIC AND DILUTED                           
|                                                                    
|WEIGHTED AVERAGE
    NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED





The
accompanying notes are an integral part of these consolidated financial statements



(42)











|ORGANIC
    PLANT HEALTH, INC. AND SUBSIDIARY        
|-----------------------------------------------------
|CONSOLIDATED
    STATEMENT OF STOCKHOLDERS' DEFICIT  
|AS
    OF DECEMBER 31, 2011                          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                     
|Balance, December 31, 2009                           
|                                                     
|Recapitalization of company in reverse
    merger    
|                                                     
|Shares issued for services                           
|                                                     
|Shares issued to convert debt                        
|                                                     
|Net loss for the
    year ended December 31, 2010    
|                                                     
|Balance, December 31, 2010                           
|                                                     
|Correction of rounding for reverse split             
|                                                     
|Repurchase of membership interest                    
|                                                     
|Shares issued in connection with convertible
    debt
|                                                     
|Intrinsic value of conversion option                 
|                                                     
|Shares issued for cash in private placement          
|                                                     
|Conversion of preferred shares                       
|                                                     
|Shares issued to settle accounts payable             
|                                                     
|Shares issued for services rendered                  
|                                                     
|Shares issued for cash at $0.09 per share            
|                                                     
|Shares issued for cash at $0.05 per share            
|                                                     
|Net loss for the
    year ended December 31, 2011    
|                                                     
|Balance, December 31, 2011                           



The
accompanying notes are an integral part of these consolidated financial statements





(43)









|ORGANIC
    PLANT HEALTH, INC. AND SUBSIDIARY                                                          
|-------------------------------------------------------------------------------------------------------
|CONSOLIDATED
    STATEMENTS OF CASH FLOWS                                                              
|FOR
    THE YEARS ENDED DECEMBER 31, 2011 AND 2010                                                     
|                                                                                                       
|                                                                                                       
|                                                                                                       
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                                  
|Net loss
    for the period                                                                            
|Adjustments to reconcile
    net loss to net cash used by operating activities:                        
|Bad debt expense                                                                                       
|Depreciation                                                                                           
|Amortization of discount
    to note payable                                                           
|Common stock issued
    for services rendered                                                          
|Changes in assets and
    liabilities:                                                                 
|Accounts receivable                                                                                    
|Inventory                                                                                              
|Accounts payable                                                                                       
|Accrued expenses                                                                                       
|Accrued interest                                                                                       
|Common stock to be
    issued                                                                          
|Deferred
    revenues                                                                                  
|Net cash (used in)
    provided by operating activities                                                
|                                                                                                       
|CASH FLOWS FROM INVESTING
    ACTIVITIES:                                                              
|Purchase
    of property and equipment                                                                 
|Net cash (used in)
    investing activities                                                            
|                                                                                                       
|CASH FLOWS FROM FINANCING
    ACTIVITIES:                                                              
|Proceeds from notes
    payable - related parties                                                      
|Payments to notes
    payable - related parties                                                        
|Proceeds from notes
    payable                                                                        
|Payments to notes
    payable                                                                          
|Proceeds
    from stock issuance                                                                       
|Net cash provided
    by (used in) financing activities                                                
|                                                                                                       
|Net increase (decrease) in cash and cash
    equivalents                                               
|                                                                                                       
|Cash and Cash Equivalents,
    Beginning of Period                                                     
|                                                                                                       
|Cash and Cash Equivalents,
    End of Period                                                           
|                                                                                                       
|SUPPLEMENTAL CASH FLOW
    INFORMATION:                                                                
|Cash
    paid for interest                                                                             
|Cash
    paid for income taxes                                                                         
|                                                                                                       
|SUPPLEMENTAL NON-CASH
    INVESTING AND FINANCING INFORMATION:                                         
|Common
    stock issued to settle accounts payable                                                     
|Note
    payable created in connection with settlement with former member                              
|Common
    stock issued in exchange for debt                                                           
|Conversion
    of members' equity to common stock and paid-in capital in connection with reverse merger
|                                                                                                       
|                                                                                                       
|The accompanying notes are
    an integral part of these  consolidated  financial statements           







(44)









ORGANIC
PLANT HEALTH INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2011
AND 2010





NOTE
1 	ORGANIZATION AND BUSINESS BACKGROUND



Organic
Plant Health, LLC, (referred to herein as “OPH”), a North Carolina Limited Liability Company, was originally founded
in Charlotte, NC in 2007 by Billy Styles and Alan Talbert. The business produces and distributes organic based fertilizers and
soil conditioners for use in the continual care of residential and commercial landscapes.



On
December 10, 2010, OPH entered into a Plan of Exchange agreement (the “Plan of Exchange”) between and among the members
of OPH (“OPH Members”) and Acumedspa Holdings, Inc., (herein referred to as the Company), a publically traded Nevada
corporation, and its majority shareholder, Mr. Brian Sperber.



Pursuant
to the terms of the Plan of Exchange, Acumedspa Holdings, Inc. acquired 100% of the membership interests of OPH in exchange for
a transfer of 3,985,000 shares of the Company’s Convertible Preferred Stock to OPH Members, which gaveOPH Members a controlling interest in Acumedspa Holdings, Inc., representing approximately 76.47% of the then issued and
outstanding shares on a dilutive basis. OPH and Acumedspa Holdings, Inc. were hereby reorganized, such that the Company acquired
100% of the ownership of OPH, and OPH became a wholly-owned subsidiary of the Company.



The
stock exchange transaction was accounted for as a reverse acquisition and recapitalization of the Company whereby OPHwas deemed to be the accounting acquirer (legal acquiree) and the Company to be the accounting acquiree (legal acquirer).  The
accompanying consolidated financial statements are in substance those of OPH, with the assets
and liabilities, and revenues and expenses, of the Company being included effective from the date of stock exchange transaction.  The
Company is deemed to be a continuation of the business of OPH.  Accordingly, the accompanying
consolidated financial statements include the following:



(1)         The
balance sheet consists of the net assets of the accounting acquirer at historical cost and the net assets of the accounting acquiree
at historical cost;



(2)         The
financial position, results of operations, and cash flows of the accounting acquirer for all periods presented as if the recapitalization
had occurred at the beginning of the earliest period presented and the operations of the accounting acquiree from the date of
stock exchange transaction.



On
December 11, 2010, the Company vended out the two subsidiaries, ACUMEDSPA LLC, a Tennessee Limited Liability Company, and CONSUMER
CARE OF AMERICA LLC, a Florida Limited Liability Company, pursuant to an Agreement entered between and among OPH and Chinita LLC,
a Nevada Limited Liability Company (“Buyer”). Accordingly, the Buyer acquired 100% interest in ACUMEDSPA LLC and 100%
interest in CONSUMER CARE OF AMERICA LLC, as well as any and all assets and liabilities in both subsidiaries in exchange for the
total payments of not less than Two Hundred dollars ($200). As a result of the transactions consummated at the closing, the purchase
gave the Buyer a 'controlling interest' in both subsidiaries; therefore, ACUMEDSPA LLC and CONSUMER CARE OF AMERICA LLC were no
longer wholly-owned subsidiaries of the Company.



Organic
Plant Health, Inc. and OPH are hereinafter referred to as (the “Company”).



Basis
of Presentation



The
accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally
accepted in the United States of America (U.S. GAAP) under the accrual basis of accounting.





(45)







ORGANIC
PLANT HEALTH INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2011
AND 2010





NOTE
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



Use
of Estimates



In
preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of
America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures
of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of
revenues and expenses during the reporting periods. These accounts and estimates include, but are not limited to, the valuation
of accounts receivables, inventories, income taxes and the estimation on useful lives of property, plant and equipment. Actual
results could differ from these estimates.



Basis
of Consolidation



The
consolidated financial statements include the financial statements of the Company and its subsidiary.



All
significant inter-company balances and transactions within the Company and subsidiary have been eliminated upon consolidation.



Cash
and Cash Equivalents



The
Company considers all short-term investments with a maturity of three months or less when purchased to be cash and equivalents
for purposes of the statement of cash flows.



Accounts
Receivable



Accounts
receivable are recorded at the invoiced amount and do not bear interest. The Company extends unsecured credit to its customers
in the ordinary course of business but mitigates the associated risks by performing credit checks and actively pursuing past due
accounts. An allowance for doubtful accounts is established and determined based on managements’ assessment of known requirements,
aging of receivables, payment history, the customer’s current credit worthiness and the economic environment. As of December
31, 2011 and 2010, the Company had allowances for uncollectible accounts of $2,577 and $2,332, respectively.



Inventory



Inventories
consist of finished goods and are valued at lower of cost or market value, cost being determined on the first-in, first-out method.  The
Company periodically reviews historical sales activity to determine excess, slow moving items and potentially obsolete items and
also evaluates the impact of any anticipated changes in future demand.  The Company provides inventory allowances based
on excess and obsolete inventories determined principally by customer demand.   As of December 31, 2011 and 2010, the
Company did not record an allowance for obsolete inventories. The Company has periodically written off obsolete inventory. Inventory
write-offs totaled $2,557 during the year ended December 31, 2011.



(46)









ORGANIC
PLANT HEALTH INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2011
AND 2010







NOTE
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



Fixed
Assets, Net



Fixed
assets are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated
on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after
taking into account their estimated residual values:



|                            | Depreciable
    life |  | Residual
    value |   |  
|--------------------------- | -------------------- |  | ------------------ | - | -
|Machinery
    and Equipment | 5
    years          |  |                    | 5 | %
|Furniture and fixture       | 7
    years          |  |                    | 5 | %
|Software                    | 3
    years          |  |                    | 5 | %



Expenditure
for maintenance and repairs is expensed as incurred.



Fair
Value for Financial Assets and Financial Liabilities



The
Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification (“ASC”) for disclosures about
fair value of its financial instruments and paragraph 820-10-35-37 of the FASB ASC (“Paragraph 820-10-35-37”) to measure
the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in U.S. GAAP,
and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and
related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques
used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted)
in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair
value hierarchy defined by Paragraph 820-10-35-37 are described below:



|Level
    1 | Quoted
    market prices available in active markets for identical assets or liabilities as of the reporting date.                                                 
|----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Level
    2 | Pricing
    inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable
    as of the reporting date.
|Level
    3 | Pricing
    inputs that are generally observable inputs and not corroborated by market data.                                                                       



The
carrying amounts of the Company’s financial assets and liabilities, such as cash and accounts payable approximate their
fair values because of the short maturity of these instruments.



The
Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently,
the Company did not have any fair value adjustments for assets and liabilities measured at fair value at December 31, 2011 nor
gains or losses are reported in the statement of operations that are attributable to the change in unrealized gains or losses
relating to those assets and liabilities still held at the reporting date for the for the years ended December 31, 2011 and 2010,
respectively.



(47)









ORGANIC
PLANT HEALTH INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2011
AND 2010





NOTE
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



Revenue
Recognition



In
accordance with guidance by paragraph 605-10-S99-1 of the FASB ASC for revenue recognition, the Company recognizes revenue when
persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered, the selling price
is fixed or determinable and collectability is reasonably assured. The Company provides a warranty, but only in as much as the
products conform to their descriptions and that they are reasonably fit for the purpose stated on the label, when used properly
under normal conditions.



(a)
Sale of products



The
Company recognizes revenue from the sale of products upon delivery to the customers and the transfer of title and risk of loss.
The Company did not record any product returns for the years ended December 31, 2011 and 2010, respectively.



(b)
License income



License
income is generated from the sale of license agreements, and optional license agreements, to approved distribution partners that
desire to represent the Company in developing sales and marketing agreements with potential wholesale customers. The license fee
paid by the approved distribution partners is nonrefundable, one-time charge and independent from the sale of products or services.
The Company amortizes licensing revenue on a straight-line basis over the relative license periods.



Cost
of Goods Sold



Cost
of goods sold consists primarily of costs of raw materials and direct labor, and other costs directly attributable to the production
of products. Write-down of inventories to lower of cost or market is also recorded in cost of goods sold.



Stock-Based
Compensation



The
Company accounts for stock-based compensation using the fair value method following the guidance set forth in ASC 718-10 for disclosure
about Stock-Based Compensation. This section requires a public entity to measure the cost of services received in exchange for
an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized
over the period during which a consultant is required to provide service in exchange for the award within the requisite service
period (usually the vesting period). No compensation cost is recognized for equity instruments for which consultants do not render
the requisite service. During the year ended December 31, 2011 and 2010, the Company recorded $75,000 and $50,000, respectively,
in compensation expense based on the fair value of services rendered in exchange for common shares issued to the consultants.
These approximated the fair value of the shares at the dates of issuances.



(48)









ORGANIC
PLANT HEALTH INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2011
AND 2010





NOTE
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



Income
Taxes



The
Company adopts the ASC 740, “Income Taxes” regarding accounting for uncertainty in income taxes, which prescribes
the recognition threshold, and measurement attributes for financial statement recognition and measurement of tax positions taken
or expected to be taken on a tax return. In addition, the guidance requires the determination of whether the benefits of tax positions
will be more likely than not sustained upon audit based upon the technical merits of the tax position. For tax positions that
are determined to be more likely than not sustained upon audit, a company recognizes the largest amount of benefit that is greater
than 50% likely of being realized upon ultimate settlement in the financial statements. For tax positions that are not determined
to be more likely than not sustained upon audit, a company does not recognize any portion of the benefit in the financial statements.
The guidance provides for de-recognition, classification, penalties and interest, accounting in interim periods and disclosure.



For
the years ended December 31, 2011 and 2010, the Company did not have any interest and penalties associated with tax positions.
As of December 31, 2011 and 2010, the Company did not have any significant unrecognized uncertain tax positions.



Deferred
tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured
using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected
to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of income
in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets if it is more likely
than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is
uncertain.



Loss
per Share



The
Company calculates net loss per share in accordance with FASB ASC 260, “Earnings per Share”.  Basic
loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding. No diluted loss
per share is required to be represented.



Related
Parties



Parties,
which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly,
to control the other party or exercise significant influence over the other party in making financial and operating decisions.
Companies are also considered to be related if they are subject to common control or common significant influence. A material
related party transaction has been identified in Note 7 and Note 8 in the financial statements.



Subsequent
Events



The
Company evaluated for subsequent events through the issuance date of the Company’s financial statements.



(49)









ORGANIC
PLANT HEALTH INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2011
AND 2010





NOTE
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



Recently
issued accounting standards



The
Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption
of any such pronouncements may be expected to cause a material impact on its consolidated financial condition or the consolidated
results of its operations.



In
July 2010, the FASB amended the requirements for Disclosures about the Credit Quality of Financing Receivables and the Allowance
for Credit Losses. As a result of these amendments, an entity is required to disaggregate by portfolio segment or class certain
existing disclosures and provide certain new disclosures about its financing receivables and related allowance for credit losses.
The new disclosures as of the end of the reporting period are effective for the fiscal year ending December 31, 2010, while the
disclosures about activity that occurs during a reporting period are effective for the first fiscal quarter of 2011. The adoption
of this guidance will not impact the Company’s consolidated results of operations or financial position.



In
January 2010, the FASB issued authoritative guidance regarding fair value measures and disclosures. The guidance requires
disclosure of significant transfers between level 1 and level 2 fair value measurements along with the reason for the
transfer. An entity must also separately report purchases, sales, issuances and settlements within the level 3 fair value
roll forward. The guidance further provides clarification of the level of disaggregation to be used within the fair value measurement
disclosures for each class of assets and liabilities and clarified the disclosures required for the valuation techniques and inputs
used to measure level 2 or level 3 fair value measurements. This new authoritative guidance is effective for the Company
in fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The adoption of this
guidance will not impact the Company’s consolidated results of operations or financial position.



In
September 2011, the FASB issued ASU 2011-08 which provides an entity the option to first assess qualitative factors to determine
whether it is necessary to perform the current two-step test for goodwill impairment.  If an entity believes, as a result
of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying
amount, the quantitative impairment test is required.  Otherwise, no further testing is required. The revised standard
is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011.  
The Company does not expect that the adoption of this standard will have a material impact on the Company’s results of operations,
cash flows or financial condition.



In
December 2011, FASB issued Accounting Standards Update 2011-11, “Balance Sheet - Disclosures about Offsetting Assets and
Liabilities” to enhance disclosure requirements relating to the offsetting of assets and liabilities on an entity's balance
sheet. The update requires enhanced disclosures regarding assets and liabilities that are presented net or gross in the statement
of financial position when the right of offset exists, or that are subject to an enforceable master netting arrangement. The new
disclosure requirements relating to this update are retrospective and effective for annual and interim periods beginning on or
after January 1, 2013. The update only requires additional disclosures, as such, the Company does not expect that the adoption
of this standard will have a material impact on the Company’s results of operations, cash flows or financial condition.





(50)









ORGANIC
PLANT HEALTH INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2011
AND 2010





NOTE
3 ACCOUNTS RECEIVABLE



Accounts
receivable was comprised of the following amounts as of December 31, 2011 and 2010:



|                                                   | 2011 |         | 2010
|-------------------------------------------------- | ---- | ------- | ----
|                                                   |      |         |     
|Gross
    trade accounts receivable from customers | $    | 51,540  |     
|Allowance
    for doubtful customer accounts       |      | (2,577) |     
|Accounts
    receivable, net                       | $    | 48,963  |     
|                                                   |      |         |     



Bad
debt expenses of $2,720 and $122 were recognized during the years ended December 31, 2011 and 2010, respectively, in the accompanying
consolidated income statements.



NOTE
4 INVENTORY



Inventory
was comprised of the following as of December 31, 2011 and 2010:



|                                       | 2011 |        | 2010
|-------------------------------------- | ---- | ------ | ----
|                                       |      |        |     
|Raw
    materials                      | $    | 16,665 |     
|Work
    in process                    |      | 0      |     
|Finished
    goods                     |      | 22,147 |     
|                                       |      | 38,812 |     
|Provision
    for obsolete inventories |      | 0      |     
|                                       | $    | 38,812 |     
|                                       |      |        |     



NOTE
5 PROPERTY AND EQUIPMENT



Property
and equipment was comprised of the following as of December 31, 2011 and 2010:



|                                   | 2011 |           | 2010
|---------------------------------- | ---- | --------- | ----
|Cost:                              |      |           |     
|Machinery
    and equipment        | $    | 178,309   |     
|Furniture
    and fixtures         |      | 25,623    |     
|Software                           |      | 13,252    |     
|Total
    cost                     |      | 217,184   |     
|Less:
    Accumulated depreciation |      | (110,410) |     
|Property
    and equipment, net    | $    | 106,774   |     
|                                   |      |           |     



| |  | Depreciation
                                                         expense was $30,109 and $32,603 for the years ended December 31, 2011
                                                         and 2010, respectively.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



NOTE
6 NOTES PAYABLE



The
Company had outstanding balances on its notes payable of the following amounts as of December 31, 2011 and 2010:



|                                                                                             |  | 2011 |           |  | 2010 |  
|-------------------------------------------------------------------------------------------- |  | ---- | --------- |  | ---- | -
|Bank
    of Granite, 8.5% interest rate, due on March 26, 2012 (1)                           |  | $    | 2,377     |  |      | $
|Bank
    of NC, 6.5% interest rate, due on June 30, 2013 (2)                                 |  |      | 66,337    |  |      |  
|Greentree
    Financial Group, 6% interest rate, due on January 1, 2013, net of discount (3) |  |      | 50,000    |  |      |  
|NEKCO
    LLC, 20% interest rate, due on April 21, 2012 (4)                                  |  |      | 40,000    |  |      |  
|Mark
    Blumberg, 5.75% interest rate, due on October 1, 2015 (5)                           |  |      | 96,823    |  |      |  
|Total
    notes payable                                                                      |  | $    | 255,537   |  |      | $
|Less:
    Current portion of notes payable                                                   |  |      | (103,310) |  |      |  
|Total
    long-term notes payable                                                            |  | $    | 152,227   |  |      | $
|                                                                                             |  |      |           |  |      |  



(1)	The
Company has a line of credit with Bank of Granite at an interest rate of prime plus 3 % per annum. The balance on this credit
line was $2,377 as of December 31, 2011. Accordingly, the Company recorded interest expenses of $1,682 and $2,510 during the years
ended December 31, 2011 and 2010, respectively.



(2)	The
Company has loan payable to Bank of North Carolina at an interest rate of 6.5% per annum and due on June 30, 2013. The balance
of this bank loan was $66,337 as of December 31, 2011, of which $48,237 was classified as short-term loan payable. The Company
recorded interest expenses of $4,968 and $13,551 during the years ended December 31, 2011 and 2010, respectively.



(3)	On
January 1, 2011, the Company entered into a convertible promissory note (the Note) in a principal amount of $100,000
payable to Greentree Financial Group (“Greentree”), which bears an interest rate of 6% per annum and is due on
January 1, 2013. Pursuant to the Note, Greentree has an option to convert all or any portion of the accrued interest and
unpaid principal balance of the Note into the Common Stock of the Company or its successors, at Ten Cents ($.10) per share,
no sooner than September 30, 2012. The conversion price associated with the Note was determined based on the facts that the
Company had nominal trading volume for its stock, and had negative shareholder equity at the time of issuance.



The
Note is discounted in full amount due to the issuance of 1,000,000 shares of Common Stock as sweetener to the Note, and a beneficial
conversion feature. The fair value of the 1,000,000 shares was $68,245 determined by an arm’s length payable settlement
with a non-affiliate since there was nominal trading volume of our common stock in the market, and recorded as discount to note
payable, which will be amortized over 2 years starting from January 1, 2011. The remaining discount of $31,755 represented the
intrinsic value of the beneficial conversion option, which will be amortized over 2 years starting from January 1, 2011. The Company
recorded interest expense related to this note of $56,000 for the year ended December 31, 2011.



The
carry value of the Note was $50,000 as of December 31, 2011. The 1,000,000 shares of Common Stock were issued on May 13, 2011.





(51)









ORGANIC
PLANT HEALTH INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2011
AND 2010





NOTE
6 NOTES PAYABLE (CONTINUED)



(4)	The
Company has loan payable to NEKCO, LLC in amount of $40,000 (“Principal Amount”) due on April 21, 2012 (“Maturity
Date”). Interest will accrue on the unpaid balance of the Principal Amount from December 21, 2011 until the maturity date
of April 21, 2012, at the fixed rate of 20.0% calculated on the basis of a flat interest payment if the loan is repaid on or before
Maturity Date. Accordingly, the Company recorded interest expense of $241 related to this note during the year ended December
31, 2011.



(5)	The
Company has a loan payable to Mark Blumberg (“Mr. Blumberg”), a former member of the Company, at an interest rate
of 5.75% per annum and due on October 1, 2015. The loan was due to the redemption of Mr. Blumberg’s membership of the Company
pursuant to a settlement agreement entered on January 1, 2011. The balance of this loan was $96,823 as of December 31, 2011, of
which $12,697 was classified as short-term loan payable. The Company recorded interest expenses of $5,886 during the year ended
December 31, 2011.



NOTE
7 NOTES PAYABLE – RELATED PARTIES



The
Company had outstanding balances on its notes payable – related parties of the following amounts as of December 31, 2011
and 2010:



|                                                                               |  | 2011 |           |  | 2010
|------------------------------------------------------------------------------ |  | ---- | --------- |  | ----
|Shareholder
    loans, Prime plus 2.5% interest rate, due July 2012            |  | $    | 55,800    |  |     
|Loans
    from officer, 5.5% interest rate, due on demand                      |  |      | 60,884    |  |     
|Loan
    from officer, 0% interest rate, due on demand                         |  |      | 0         |  |     
|Loans
    from company owned by shareholders, 5.5% interest rate, due May 2016 |  |      | 42,500    |  |     
|Total
    notes payable – related parties                                      |  | $    | 159,884   |  |     
|Less:
    Current portion of notes payable – related parties                   |  |      | (116,684) |  |     
|Total
    long-term note payable – related parties                             |  | $    | 42,500    |  |     



In
July 2009, the Company’s shareholders made several loans in total amount of $275,000 to the Company to fund its operations.
The shareholder loans were evidenced by promissory notes due in July 2012, with interest at the floating interest rate of Prime
plus 2.5%. The interest rate will be adjusted each calendar quarter of January 1, April 1, July 1 and October 1. The principal
balance of the shareholder loans was $55,800 as of December 31, 2011 and 2010. Accordingly, the Company recorded interest expenses
of $3,209 and $15,341 during the years ended December 31, 2011 and 2010, respectively.



In
addition, the Company had outstanding balances of $60,884 due to the Company’s President as of December 31, 2011. The funds
borrowed from the Company’s President were to fund the Company’s operations. The loan agreement was not evidenced
by any promissory note, but rather a verbal agreement between the President and the Company. The note is due on demand. Accordingly,
the Company recorded interest expenses of $3,584 and $3,239 during the years ended December 31, 2011 and 2010, respectively.



The
Company has a loan payable to US Green Pros, LLC at an interest rate of 5.5% per annum and which is due in full on May 17, 2016.
The balance of this loan was $42,500 as of December 31, 2011, of which $40,000 was received during the second quarter of 2011.
Accordingly, the Company recorded interest expenses of $0 during the year ended December 31, 2011. Interest will begin to accrue
on January 1, 2012.



NOTE
8 CAPITAL TRANSACTIONS



On
March 14, 2011, the Board of Directors and Majority Shareholders of the Company authorized the effectuation of a 1-for-4 reverse
split of the Company’s Preferred Stock (the “Preferred Stock Reverse Split”). Accordingly, the Preferred Stock
Reverse Splitcombined the Company’s authorized and outstanding Preferred Stock
on the basis of 4 authorized and outstanding shares being changed to 1 authorized and outstanding share. All
options, warrants, and any other similar instruments convertible into, or exchangeable or exercisable for, shares of preferred
stock were proportionally adjusted. As a result, the Company’s number of authorized shares of preferred stock decreased
to 5,000,000 shares, of which 4,000,000 shares of preferred stock were issued and outstanding.



The
Preferred Stock Reverse Split became effective upon the Company filing
a Certificate of Change with the Secretary of State of the State of Nevada onApril 21, 2011. The consolidated statement
of stockholders’ equity has been restated per FASB 128 paragraph 134, as if the Preferred Stock
Reverse Split took effect at the beginning of the periods presented.



On
February 28, 2011, the Board of Directors of the Company approved the issuance of 4,075,000 shares of the Company’s Common
Stock in exchange for cash payment of $75,000 made by an investor. The transaction was independently negotiated between the Company
and the investor. The Company evaluated the transaction based on the fact that the Company had nominal trading volume for its
stock, and had negative shareholder equity at the time of issuance. The proceeds from this issuance mitigated the Company’s
cash pressure in short term.



On
March 31, 2011, the Board of Directors of the Company approved the issuance of 1,000,000 shares of the Company’s Common
Stock to settle accounts payable of $68,245 to a non-related party. The transaction was independently negotiated between the Company
and the creditor. The Company evaluated the transaction based on the fact that the Company had nominal trading volume for its
stock, and had negative shareholder equity at the time of issuance. The settlement of the accounts payable through the issuance
of common stock preserved the limited cash available currently in the Company.



On
April 22, 2011, the Board of Directors of the Company approved the conversion of 4,000,000 shares of the Company’s Preferred
Stock into 40,000,000 shares of the Company’s Common Stock at a ratio of 1:10, which was designated by the Amendment to
Articles of Incorporation of the Company.



On
May 13, 2011, the Company issued 1,000,000 shares of Common Stock of the Company to the Note holder pursuant to the Convertible
Promissory Note, dated January 1, 2011 (see Note 6). The Note is discounted in full amount due to the issuance of 1,000,000 shares
of Common Stock as sweetener to the Note, and a beneficial conversion feature. The fair value of the 1,000,000 shares was $68,245
determined by an arm’s length payable settlement with a non-affiliate since there was nominal trading volume of our common
stock in the market, and recorded as discount to note payable, which will be amortized over 2 years starting from January 1, 2011.
The remaining discount of $31,755 represented the intrinsic value of the beneficial conversion option, which will be amortized
over 2 years starting from January 1, 2011. We recorded interest expense from the Note of $56,000 for the year ended December
31, 2011. The transaction was independently negotiated between the Company and the note holder. The Company evaluated the transaction
based on the fact that the Company had nominal trading volume for its stock, and had negative shareholder equity at the time of
issuance. The proceeds from this Convertible Promissory Note mitigated the Company’s cash pressure in short term.





(52)









ORGANIC
PLANT HEALTH INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2011
AND 2010





NOTE
8 CAPITAL TRANSACTIONS	(CONTINUED)



In
May of 2011, the Company entered into a consulting service agreement with a Consultant for business advisory services in exchange
for 1,000,000 shares of Common Stock of the Company. The agreement had a term of 6 months effective from May 15, 2011 ending November
15, 2011. The fair value of this stock issuance was determined by the fair value of the Company’s Common Stock on the grant
date, at a price of approximately $.075 per share.  Accordingly, the stock based compensation of $75,000 was recognized
in the consolidated statement of operations for the year ended December 31, 2011. The transaction was independently negotiated
between the Company and the Consultant. The Company evaluated the transaction based on the fact that the Company had nominal trading
volume for its stock, and had negative shareholder equity at the time of issuance. The stock based compensation preserved the
limited cash available currently in the Company.



On
June 27, 2011, the Board of Directors of the Company approved the issuance of 727,578 shares of the Company’s Common Stock
at a price of $.09 per share, in exchange for cash payment of total $65,482. The transaction was independently negotiated between
the Company and the investors. The Company evaluated the transaction based on the fact that the Company had nominal trading volume
for its stock, and had negative shareholder equity at the time of issuance. The proceeds from this issuance mitigated the Company’s
cash pressure in short term.



In
July of 2011, the Board of Directors of the Company approved the issuance of 1,300,000 shares of the Company’s Common Stock
at a price of $.05 per share, in exchange for cash payment of total $65,000. The transaction was independently negotiated between
the Company and the investors. The Company evaluated the transaction based on the fact that the Company had nominal trading volume
for its stock, and had negative shareholder equity at the time of issuance. The proceeds from this issuance mitigated the Company’s
cash pressure in short term.



In
August of 2011, 2 investors submitted subscription agreements to the Company regarding the purchase of 650,000 shares of the Company’s
Common Stock at a price of $.05 per share, or cash payment of total $32,500. The transaction was independently negotiated between
the Company and the investors. The Company evaluated the transaction based on the fact that the Company had nominal trading volume
for its stock, and had negative shareholder equity at the time entering the subscription agreements. The proceeds from the subscription
agreements, which were collected in full during the fourth quarter of 2011, mitigated the Company’s cash pressure in short
term. The 650,000 shares have not been granted or issued as of the date of this report.



NOTE
9 COMMITMENT AND CONTINGENCIES



The
Company leases its retail stores and manufacturing facilities under non-cancelable operating lease agreements.  The
Company has no long-term lease agreements as the current expansion plans call for the Company to move to larger manufacturing
and warehousing facilities in 2012.



|                                  | Lease
    payment
|--------------------------------- | -----------------
|Year
    ended, December 31, 2011 | $122,694         
|2012                              | $0               
|2013                              | $0               
|2014                              | $0               
|2015                              | $0               
|Total                             | $122,694         



For
the years ended December 31, 2011 and 2010, the Company had rental expenses of $122,694 and $123,248, respectively.



NOTE
10 LOSS PER SHARE



Basic
net loss per share is computed using the weighted average number of common shares outstanding during the years ended December
31, 2011 and 2010, respectively.  There was no dilutive earning per share as of December 31, 2011 due to net losses
during the periods.



The
following table sets forth the computation of basic net loss per share for the periods indicated:



|                                                   |  |  |  |  | For the years ended | 
|-------------------------------------------------- |  |  |  |  | ------------------- | 
|                                                   |  |  |  |  |                     | 
|Numerator:                                         |  |  |  |  |                     | 
|-  
    Net loss                                   |  |  |  |  |                     | 
|Denominator:                                       |  |  |  |  |                     | 
|-  
    Weighted average common shares outstanding |  |  |  |  |                     | 
|                                                   |  |  |  |  |                     | 
|Basic net loss per share                           |  |  |  |  |                     | 
|                                                   |  |  |  |  |                     | 



(53)









ORGANIC
PLANT HEALTH INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2011
AND 2010





NOTE
12 CONCENTRATION AND RISK



(a)	Major
Customers



The
Company had no customers whose purchases represented 10% or more of the Company’s total revenues during the year ended December
31, 2011 and one customer whose purchases represented 10% or more of the company’s total revenue during the year ended December
31, 2010. That customer purchased $99,158 from the company in 2010, totaling 10.08% of the company’s total revenues during
the year ended December 31, 2010.



(b)	Major
Vendors



During
the year ended December 31, 2011, major vendors were as follows:



|Vendors      |       |  | Purchase |         |  |  |  |    |   | Accounts
        Payable | 
|------------ | ----- |  | -------- | ------- |  |  |  | -- | - | ------------------------ | 
|Vendor
    A |       |  | $        | 90,006  |  |  |  | 24 | % |                          | 
|Vendor B     |       |  |          | 56,405  |  |  |  | 15 | % |                          | 
|Vendor C     |       |  |          | 40,212  |  |  |  | 11 | % |                          | 
|Vendor D     |       |  |          | 35,520  |  |  |  | 9  | % |                          | 
|             | Total |  | $        | 222,143 |  |  |  | 59 | % | Total:                   | 



During
the year ended December 31, 2010, major vendors were as follows:



|Vendors      |       |  | Purchases |         |  |  |  |       |   | Accounts
        Payable | 
|------------ | ----- |  | --------- | ------- |  |  |  | ----- | - | ------------------------ | 
|Vendor
    A |       |  | $         | 117,395 |  |  |  | 33.8  | % |                          | 
|Vendor B     |       |  |           | 55,643  |  |  |  | 16.02 | % |                          | 
|Vendor C     |       |  |           | 33,000  |  |  |  | 9.5   | % |                          | 
|Vendor D     |       |  |           | 29,797  |  |  |  | 8.6   | % |                          | 
|             | Total |  | $         | 235,835 |  |  |  | 67.92 | % | Total:                   | 



NOTE
12 CONCENTRATION AND RISK (CONTINUED)



(c)
Credit risk



Financial
instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and
trade accounts receivable. The Company performs ongoing credit evaluations of its customers' financial condition, but does not
require collateral to support such receivables.



NOTE
13 GOING CONCERN



These
consolidated financial statements have been prepared assuming that Company will continue as a going concern, which contemplates
the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.



As
of December 31, 2011, the Company had an accumulated deficit of $1,251,436. Management has taken certain action and continues
to implement changes designed to improve the Company’s financial results and operating cash flows. The actions involve certain
cost-saving initiatives and growing strategies, including (a) reductions in raw materials costs, as well as packaging costs; and
(b) expansion of the business model into new markets. Management believes that these actions will enable the Company to improve
future profitability and cash flow in its continuing operations through December 31, 2012. As a result, the financial statements
do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the
amounts and classification of liabilities that may result from the outcome of the Company’s ability to continue as a going
concern.



Management
is confident that funds raised through the registration statement effective with the SEC on February 10, 2012 will allow the Company
to build out its infrastructure and make key hires in sales and sales management that will increase revenues significantly and
return the Company to profitability in the short term.



NOTE
14 SUBSEQUENT EVENTS



On
September 1, 2011, the Company entered into an agreement with a Security Attorney for legal advisory services in exchange for
cash payment of $6,000 and the issuance of 75,000 shares of Common Stock of the Company. The shares were valued at $.09 per share
based on the facts that the Company had nominal trading volume for its stock, and had negative shareholder equity at the time
entering the agreement. The transaction was independently negotiated between the Company and the Consultant. The stock based compensation
preserved the limited cash available currently in the Company. The grant and issuance of the shares is scheduled for the first
quarter of 2012.



In
accordance with ASC Topic 855-10,the Company has analyzed its operations subsequent to December 31, 2011 to the date
these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in
these financial statements.



(54)









ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE



There
have been no changes in and disagreements with accountants on accounting and financial disclosure in the past two fiscal years.



ITEM
9A. CONTROLS AND PROCEDURES



We
maintain disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed under
the Securities Exchange Act of 1934 (“Exchange Act”) is recorded, processed, summarized and reported within the specified
time periods. Our Chief Executive Officer and our Chief Financial Officer (collectively, the “Certifying Officers”)
are responsible for maintaining our disclosure controls and procedures. The controls and procedures established by us are designed
to provide reasonable assurance that information required to be disclosed by the issuer in the reports that it files or submits
under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission’s
rules and forms.



To
evaluate the effectiveness of our internal controls over financial reporting, we have adopted the framework prescribed by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO).  We believe that this framework will assist
in the provision of reasonable assurance of the effectiveness and efficiency of operations, the reliability of financial reporting,
and compliance with applicable laws and regulations.  In adopting the COSO framework, we maintain a control environment,
perform risk assessments, carry out control activities, emphasize quality information and effective communication, and perform
monitoring.  In the maintenance of a control environment, we are committed to integrity and ethical values as well as
to competence.  We strive to assign authority and responsibility in a manner that supports our internal controls, and
we also maintain human resources policies and procedures designed to support our internal controls.  Our risk assessments
are designed to ensure the achievement of company-wide and process-level objectives as well as to identify and analyze risks while
managing change.  We believe that all of these components together form a foundation for sound internal control through
directed leadership, shared values and a culture that emphasizes accountability for control.



As
of the end of the period covered by this report, the Certifying Officers evaluated the effectiveness of our disclosure controls
and procedures. Based on the evaluation, the Certifying Officers concluded that our disclosure controls and procedures were effective
to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the
Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the applicable rules and forms,
and that it is accumulated and communicated to our management, including the Certifying Officers, as appropriate to allow timely
decisions regarding required disclosure.



The
Certifying Officers have also concluded, based on our evaluation of our controls and procedures that as of December 31, 2011,
our internal controls over financial reporting are effective and provide a reasonable assurance of achieving their objective.



Due
to its inherent limitations, internal control over financial reporting may not prevent or detect misstatements under all potential
conditions. Therefore, effective internal control over financial reporting provides only reasonable, and not absolute, assurance
that a restatement of our financial statements would be prevented or detected.



This
annual report does not include an attestation report of our registered public accounting firm regarding internal control
over financial reporting. Management's report was not subject to attestation by our registered public accounting firm pursuant
to temporary rules of the Securities and Exchange Commission that permit us to provide only management's report in this annual
report.



Changes
in Internal Control Over Financial Reporting



There
were no changes in the our internal control over financial reporting that occurred during the period covered by this report that
have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.



This
annual report does not include an attestation report of our registered public accounting firm regarding internal control
over financial reporting. Management's report was not subject to attestation by our registered public accounting firm pursuant
to temporary rules of the Securities and Exchange Commission that permit us to provide only management's report in this annual
report.





(55)







ITEM
9A(T).CONTROLS AND PROCEDURES



(a) Conclusions
regarding disclosure controls and procedures. Disclosure controls and procedures are the Company’s controls and
other procedures that are designed to ensure that information required to be disclosed by the Company in the reports that the
Company files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified
in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation,
controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files
under the Exchange Act is accumulated and communicated to the Company’s management, including its Chief Executive Officer
and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Management is responsible
for establishing and maintaining adequate internal control over financial reporting.



Under
the supervision and with the participation of our management, including our principal executive officer and principal financial
officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-14(c) promulgated
under the Exchange Act as of December 31, 2011, and, based on their evaluation, as of the end of such period, the our disclosure
controls and procedures were effective as of the end of the period covered by the Annual Report,



(b) Management’s
Report On Internal Control Over Financial Reporting. It is management’s responsibilities to establish and maintain
adequate internal controls over the Company’s financial reporting. Internal control over financial reporting is defined
in Rule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act as a process designed by, or under the supervision of, the issuer’s
principal executive and principal financial officers and effected by the issuer’s management and other personnel, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:



•
	Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions
of the assets of the issuer; and



•
	Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles and that receipts and expenditures of the issuer are being made only
in accordance with authorizations of management of the issuer; and



•
	Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the
issuer’s assets that could have a material effect on the financial statements.



As
of the end of the period covered by the Annual Report, an evaluation was carried out under the supervision and with the participation
of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our internal control
over financial reporting.



Management
assessed the effectiveness of our internal control over financial reporting as of December 31, 2011. In making this assessment,
management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated
Framework.



Based
on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period,
internal controls over financial reporting were effective as of the end of the period covered by the Report.



Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or procedures may deteriorate. All internal control systems,
no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only
reasonable assurance with respect to financial statement preparation and presentation. Because of the inherent limitations of
internal control, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control
over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore,
it is possible to design into the process safeguards to reduce, though not eliminate, this risk.



This
Annual Report does not include an attestation report of our registered public accounting firm regarding internal control over
financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant
to temporary rules of the Securities and Exchange Commission that permit us to provide only management’s report in this
Annual Report.



(c) Changes
in internal control over financial reporting. There were no changes in our internal control over financial reporting identified
in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our last
fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial
reporting.



ITEM
9B. OTHER INFORMATION



None.



(56)









PART
III



ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT



Directors
and Executive Officers



Our directors
are elected at the annual meeting of shareholders and hold office for one year and until their successors are elected and qualified.
Our officers are appointed by the Board of Directors and serve at the pleasure of the Board. We have not entered into any employment
agreements with our executive officers.



|Name              | Age | Position                                                                             | Date
    to Start    
|----------------- | --- | ------------------------------------------------------------------------------------ | ---------------------
|William G. Styles | 55  | President and Chief Executive
    Officer; Director, Chairman of the Board           | December
    10, 2010
|J. Alan Talbert   | 47  | Vice President and
    Chief Operating Officer; Director, Vice-Chairman of the Board | December
    10, 2010
|Paul K. DiFraia   | 62  | Vice President and
    Chief Financial Officer; Director                             | December
    10, 2010





The following
is a brief description of the principal occupation and recent business experience of each of our directors and executive officers:





Billy
Styles: President & CEO



Billy
Styles has held the position of President and CEO of Organic Plant Health since April of 2007, the month the company came into
existence. Prior to that, Mr. Styles was President of Shrub Doctor, LLC, a North Carolina LLC, operating in the field of Tree
& Shrub fertilization and plant health management. Mr. Styles has been Chairman of the Board of Directors since the company
became a public company in December of 2010. He is serving a 1-year term.



Billy
Styles holds a variety of professional certifications: Certified Master Gardener, Certified Clean Stream Administrator, Certified
Turf Grass Professional and a Certified Plantsman.



Alan
Talbert: Vice President & COO



Alan
Talbert has held the position of Vice President of Organic Plant Health since April of 2007, the month the company came into existence.
Prior to that, Mr. Talbert was the owner and CEO of Talbert Marketing, Inc., a North Carolina corporation, operating in the field
of Marketing, Communications and Business Strategy since 1992. Mr. Talbert has been Vice-Chairman of the Board of Directors since
the company became a public company in December of 2010. He is serving a 1-year term.



Paul
DiFraia: Vice President & CFO



Paul
DiFraia has held the position of Vice President of Organic Plant Health since July of 2009. Prior to that, Mr. DiFraia had been
self-employed as a manufacturing and operations consultant since 2005. Prior to 2005 Mr. DiFraia held positions of Vice President
of Operations for Resound, Inc., a Hi-tech manufacturer of hearing devices, and President of Lifescan, Inc., a Johnson & Johnson
company, operating in the field of Medical Equipment Manufacturing. Mr. DiFraia joined Organic Plant Health as a minority investor
in July of 2009 to provide expertise for the company’s manufacturing and distribution. Mr. DiFraia has been a Director for
the company since the company became a public company in December of 2010. He is serving a 1-year term.





(57)







Compensation
of Directors



The
Board of Directors may compensate directors for their services as such. The Board of Directors may also provide for the payment
of all travel and out-of-pocket expenses in connection with Directors’ attendance at Board meetings. Each board member serves
for a one-year term until elections are held at each annual meeting.



Beginning
October 1, 2011 The Board of Directors shall be paid either $1,500 per month, or an equivalent in company common stock computed
at the share price of $0.025 per share, for their participation as Board members and participation in committees as needed. The
choice of cash or stock equivalent will be determined, jointly, by the Chairman of the Board and the individual board member.



Directors
are elected at the Company’s annual meeting of Stockholders and serve for one year until the next annual Stockholders’
meeting or until their successors are elected and qualified. Officers are elected by the Board of Directors and their terms of
office are, except to the extent governed by employment contract, at the discretion of the Board. The Company may reimburse all
Directors for their expenses in connection with their activities as directors of the Company.



Family
Relationships



There
are no family relationships amongst our management and directors.



Involvement
in Certain Legal Proceedings



To
the best of our knowledge, during the past five years, none of the following occurred with respect to a present or former director
or executive officer of the Company: (1) any bankruptcy petition filed by or against any business of which such person was
a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; (2) any
conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other
minor offenses); (3) being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of
any court of any competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement
in any type of business, securities or banking activities; and (4) being found by a court of competent jurisdiction (in a
civil action), the Commission or the commodities futures trading commission to have violated a Federal or state securities or
commodities law, and the judgment has not been reversed, suspended or vacated.



Director
Independence



We
are not subject to listing requirements of any national securities exchange or national securities association and, as a result,
we are not at this time required to have our board comprised of a majority of “independent directors.”



Audit
Committee



We
do not have a separately designated standing audit committee. Pursuant to Section 3(a)(58)(B) of the Exchange Act, the entire
Board of Directors acts as an audit committee for the purpose of overseeing the accounting and financial reporting processes,
and audits of our financial statements. The Commission recently adopted new regulations relating to audit committee composition
and functions, including disclosure requirements relating to the presence of an "audit committee financial expert" serving
on its audit committee. In connection with these new requirements, our Board of Directors examined the Commission's definition
of "audit committee financial expert" and concluded that we do not currently have a person that qualifies as such an
expert. We have had minimal operations for the past two (2) years. Presently, there are only four (4) directors serving on our
Board, and us are not in a position at this time to attract, retain and compensate additional directors in order to acquire a
director who qualifies as an "audit committee financial expert", but we intend to retain an additional director who
will qualify as such an expert, as soon as reasonably practicable. While neither of our current directors meets the qualifications
of an "audit committee financial expert", each of our directors, by virtue of his past employment experience, has considerable
knowledge of financial statements, finance, and accounting, and has significant employment experience involving financial oversight
responsibilities. Accordingly, we believe that our current directors capably fulfill the duties and responsibilities of an audit
committee in the absence of such an expert.



(58)









Code
of Ethics



We
have adopted a code of ethic (the "Code of Ethics") that applies to our principal chief executive officer, principal
financial officer, principal accounting officer or controller, or persons performing similar functions. The Code of Ethics is
being designed with the intent to deter wrongdoing, and to promote the following:





| | • | Honest
                                                                                                                                                                                                                        and
                                                                                                                                                                                                                        ethical
                                                                                                                                                                                                                        conduct,
                                                                                                                                                                                                                        including
                                                                                                                                                                                                                        the
                                                                                                                                                                                                                        ethical
                                                                                                                                                                                                                        handling
                                                                                                                                                                                                                        of
                                                                                                                                                                                                                        actual
                                                                                                                                                                                                                        or
                                                                                                                                                                                                                        apparent
                                                                                                                                                                                                                        conflicts
                                                                                                                                                                                                                        of
                                                                                                                                                                                                                        interest
                                                                                                                                                                                                                        between
                                                                                                                                                                                                                        personal
                                                                                                                                                                                                                        and
                                                                                                                                                                                                                        professional
                                                                                                                                                                                                                        relationships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | • | Full,
                                                                                                                                                                      fair,
                                                                                                                                                                      accurate,
                                                                                                                                                                      timely
                                                                                                                                                                      and
                                                                                                                                                                      understandable
                                                                                                                                                                      disclosure
                                                                                                                                                                      in
                                                                                                                                                                      reports
                                                                                                                                                                      and
                                                                                                                                                                      documents
                                                                                                                                                                      that
                                                                                                                                                                      a
                                                                                                                                                                      small
                                                                                                                                                                      business
                                                                                                                                                                      issuer
                                                                                                                                                                      files
                                                                                                                                                                      with,
                                                                                                                                                                      or
                                                                                                                                                                      submits
                                                                                                                                                                      to,
                                                                                                                                                                      the
                                                                                                                                                                      Commission
                                                                                                                                                                      and
                                                                                                                                                                      in
                                                                                                                                                                      other
                                                                                                                                                                      public
                                                                                                                                                                      communications
                                                                                                                                                                      made
                                                                                                                                                                      by
                                                                                                                                                                      the
                                                                                                                                                                      small
                                                                                                                                                                      business
                                                                                                                                                                      issuer
| | • | Compliance
                                                                                                                                                                                                                        with
                                                                                                                                                                                                                        applicable
                                                                                                                                                                                                                        governmental
                                                                                                                                                                                                                        laws,
                                                                                                                                                                                                                        rules
                                                                                                                                                                                                                        and
                                                                                                                                                                                                                        regulations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | • | The
                                                                                                                                                                                                                        prompt
                                                                                                                                                                                                                        internal
                                                                                                                                                                                                                        reporting
                                                                                                                                                                                                                        of
                                                                                                                                                                                                                        violations
                                                                                                                                                                                                                        of
                                                                                                                                                                                                                        the
                                                                                                                                                                                                                        code
                                                                                                                                                                                                                        to
                                                                                                                                                                                                                        an
                                                                                                                                                                                                                        appropriate
                                                                                                                                                                                                                        person
                                                                                                                                                                                                                        or
                                                                                                                                                                                                                        persons
                                                                                                                                                                                                                        identified
                                                                                                                                                                                                                        in
                                                                                                                                                                                                                        the
                                                                                                                                                                                                                        code                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | • | Accountability
                                                                                                                                                                for
                                                                                                                                                                adherence
                                                                                                                                                                to
                                                                                                                                                                the
                                                                                                                                                                code                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             





Section
16(a) Beneficial Ownership Reporting Compliance



Under
Section 16(a) of the Exchange Act, all executive officers, directors, and each person who is the beneficial owner of more than
10% of the common stock of a company that files reports pursuant to Section 12 of the Exchange Act, are required to report the
ownership of such common stock, options, and stock appreciation rights (other than certain cash-only rights) and any changes in
that ownership with the Commission. Specific due dates for these reports have been established, and we are required to report,
in this Form 10-K, any failure to comply therewith during the fiscal year ended December 2008. We believe that all of these filing
requirements were satisfied by our executive officers, directors and by the beneficial owners of more than 10% of our common stock.
In making this statement, hawse have relied solely on copies of any reporting forms received by it, and upon any written representations
received from reporting persons that no Form 5 (Annual Statement of Changes in Beneficial Ownership) was required to be filed
under applicable rules of the Commission.



ITEM
11. EXECUTIVE COMPENSATION



The
following Summary Compensation Table shows the compensation awarded to or earned by our Chief Executive Officer and other two
most highly compensated executive officers for fiscal 2011, 2010 and 2009. Also shown is the compensation awarded to or earned
by our former President due to the fact that he held such position during a portion of fiscal 2009. The persons listed in the
following Summary Compensation Table are referred to herein as the “Named Executive Officers.”



|SUMMARY
    COMPENSATION TABLE                
|----------------------------------------------
|Name
    and principal position  (a)          
|Gregory Antoine
     Former President         
|                                              
|                                              
|William G Styles,  President, CEO Director    
|                                              
|                                              
|J. Alan Talbert  Vice President  COO, Director
|                                              
|                                              
|Paul DiFraia Vice President  CFO, Director    
|                                              



[1]
The $32,900 was accrued but not paid to Mr. Styles during the years represented hereto.



[2]
The $30,000 was accrued but not paid to Mr. Styles during the years represented hereto.



[3]
The $23,200 was accrued but not paid to Mr. Talbert during the years represented hereto.



[4]
The $18,200 was accrued but not paid to Mr. Talbert during the years represented hereto.



[5]
The $35,500 was accrued but not paid to Mr. DiFraia during the years represented hereto.



[6]
The $51,700 was accrued but not paid to Mr. Styles during the years represented hereto.



[7]
The $29,300 was accrued but not paid to Mr. Talbert during the years represented hereto.



(59)









The
officers of the company are currently considered “at-will” employees. The company has no compensation agreements with
the officers, however simple compensation arrangements have been made and summarized as follows:



William
G. Styles is currently under an arrangement to receive $90,000.00 in annual compensation as President and CEO of the company.
No other compensation arrangements have been made with Mr. Styles at this time.



J.
Alan Talbert is currently under an arrangement to receive $75,000.00 in annual compensation as Vice President and COO of the company.
No other compensation arrangements have been made with Mr. Talbert at this time.



Paul
DiFraia was under a compensation arrangement to receive $37,500.00 in 2010. No other compensation arrangements have been made
with Mr. DiFraia at this time. Mr. DiFraia is currently retained as a consultant, and acting CFO for the company. He has waived
further compensation at this time.



The
officers of the company, in their efforts to provide as much working capital as possible to fund the company’s operations,
occasionally defer payment of all or part of their salaries to an undetermined later date defined as some point in the future
when the company is in better financial position to afford the payments.



Outstanding
Equity Awards At Fiscal Year-End Table



None.



Option
Exercises And Stock Vested Table



None.



Pension
Benefits Table



None.



Nonqualified
Deferred Compensation Table



None.



All
Other Compensation Table



None.



Perquisites
Table



None.



Potential
Payments Upon Termination Or Change In Control Table



None.



Long-Term
Incentive Plan Awards



We
do not have any long-term incentive plans that provide compensation intended to serve as incentive for performance to occur over
a period longer than one fiscal year, whether such performance is measured by reference to our financial performance, our stock
price, or any other measure.





(60)







ITEM
12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCK HOLDER MATTERS.



The
following table sets forth certain information regarding beneficial ownership of the common stock as of December
31, 2012, by (i) each person who is known by the Company to own beneficially more than 5% of any classes of
outstanding Stock, (ii) each director of the Company, (iii) each officer and (iv) all directors and executive officers
of the Company as a group.



The
number and percentage of shares beneficially owned is determined in accordance with Rule 13d-3 and 13d-5 of the Exchange Act,
and the information is not necessarily indicative of beneficial ownership for any other purpose. We believe that each individual
or entity named has sole investment and voting power with respect to the securities indicated as beneficially owned by them, subject
to community property laws, where applicable, except where otherwise noted.



|                                                                                                   |  |                                   |            |                      
|-------------------------------------------------------------------------------------------------- |  | --------------------------------- | ---------- | ---------------------
|Name of Beneficial Owner                                                                           |  | Number of Shares  of Common Stock |            | Percent of  Class (1)
|William G. Styles  President, CEO & Director  P. O. Box 2070  Indian Trail, NC 28079               |  |                                   | 22,419,200 |                      
|                                                                                                   |  |                                   |            |                      
|J. Alan Talbert  Vice President, COO & Director  P. O. Box 2070  Indian Trail, NC 28079            |  |                                   | 3,589,720  |                      
|                                                                                                   |  |                                   |            |                      
|Paul K. DiFraia  Vice President, CFO & Director  6812, Summerhill Ridge Drive  Charlotte, NC 28226 |  |                                   | 7,971,910  |                      
|                                                                                                   |  |                                   |            |                      
|David Blankenberg  1754 Rock Hill Church Road  Matthews, NC 28104                                  |  |                                   | 6,379,440  |                      
|                                                                                                   |  |                                   |            |                      
|Greentree Financial Group, Inc.  7951 SW 6th Street, Suite 216  Plantation, FL 33324               |  |                                   | 4,856,375  |                      
|All officers and directors as a group (3 persons)                                                  |  |                                   | 33,980,830 |                      









|(1) | Based on 61,215,081 issued and outstanding shares of common stock.
|--- | ------------------------------------------------------------------





Changes
in Control



On
December 10, 2010, the Company entered into a Plan of Exchange agreement (the “Plan of Exchange”) with the members
of OPH and Mr. Sperber, pursuant to which the Company acquired 100% of the membership interests of OPH in exchange for a transfer
of 3,985,000 shares of the Company’s Convertible Preferred Stock to OPH Members, which gaveOPH
Members a controlling interest in the Company, representing approximately 76.47% of the then issued and outstanding shares on
a dilutive basis. OPH and the Company were hereby reorganized, such that the Company acquired 100% of the ownership of OPH, and
OPH became a wholly-owned subsidiary of the Company.





(61)







ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE



We
had outstanding balances on our notes payable to related parties of the following amounts as of December 31, 2011 and 2010:



|                                                                               |  | 2011 |           |  | 2010
|------------------------------------------------------------------------------ |  | ---- | --------- |  | ----
|Shareholder
    loans, Prime plus 2.5% interest rate, due July 2012            |  | $    | 55,800    |  |     
|Loans
    from officer, 5.5% interest rate, due on demand                      |  |      | 60,884    |  |     
|Loan
    from officer, 0% interest rate, due on demand                         |  |      | 0         |  |     
|Loans
    from company owned by shareholders, 5.5% interest rate, due May 2016 |  |      | 42,500    |  |     
|Total
    notes payable – related parties                                      |  | $    | 159,884   |  |     
|Less:
    Current portion of notes payable – related parties                   |  |      | (116,684) |  |     
|Total
    long-term note payable – related parties                             |  | $    | 42,500    |  |     



In
July 2009, the Company’s shareholders made several loans in total amount of $275,000 to the Company to fund its operations.
The shareholder loans were evidenced by promissory notes due in July 2012, with interest at the floating interest rate of Prime
plus 2.5%. The interest rate will be adjusted each calendar quarter of January 1, April 1, July 1 and October 1. The principal
balance of the shareholder loans was $55,800 as of December 31, 2011 and 2010. Accordingly, the Company recorded interest expenses
of $3,209 and $15,341 during the years ended December 31, 2011 and 2010, respectively.



In
addition, the Company had outstanding balances of $60,884 due to the Company’s President as of December 31, 2011. The funds
borrowed from the Company’s President were to fund the Company’s operations. The loan agreement was not evidenced
by any promissory note, but rather a verbal agreement between the President and the Company. The note is due on demand. Accordingly,
the Company recorded interest expenses of $3,584 and $3,239 during the years ended December 31, 2011 and 2010, respectively.



The
Company has a loan payable to US Green Pros, LLC at an interest rate of 5.5% per annum and which is due in full on May 17, 2016.
The balance of this loan was $42,500 as of December 31, 2011, of which $40,000 was received during the second quarter of 2011.
Accordingly, the Company recorded interest expenses of $0 during the year ended December 31, 2011. Interest will begin to accrue
on January 1, 2012.



ITEM
14. PRINCIPAL ACCOUNTING FEES AND SERVICES



Fees Billed
For Audit and Non-Audit Services



The
following table represents the aggregate fees billed for professional audit services rendered to the independent auditor, Silberstein
Ungar, PLLC (“Silberstein”), for our audit of the annual financial statements for the years ended December 31, 2011
and 2010. Audit fees and other fees of auditors are listed as follows:



|Year
    Ended December 31             |  | 2011(2)             |  | 2010
    (3)       
|-------------------------------------- |  | ------------------- |  | -------------------
|                                       |  |                     |  |                    
|Audit
    Fees (1)                     |  | $       
    15,560 |  | $       
    0     
|Audit-Related
    Fees (4)             |  | 2,500               |  | 50,000             
|Tax
    Fees (5)                       |  | 1,500               |  | --                 
|All
    Other Fees (6)                 |  | --                  |  | --                 
|Total
    Accounting Fees and Services |  | $      
     19,560 |  | $       
    50,000
|                                       |  |                     |  |                    



| | (1) | Audit
    Fees. These are fees for professional services for the audit of our annual financial statements, and for the review of
    the financial statements included in our filings on Form 10-Q, and for services that are normally provided in connection with
    statutory and regulatory filings or engagements.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | The
    amounts shown in 2011 relate to (i) the audit of our annual financial statements for the fiscal year ended December 31, 2011,
    and (ii) the review of the financial statements included in our filings on Form 10-Q for the quarters of 2012.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (3) | The
    amounts shown in 2010 relate to the audit of our annual financial statements for the fiscal year ended December 31, 2010.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------



| | (4) | Audit-Related
    Fees. These are fees for the assurance and related services reasonably related to the performance of the audit or the
    review of our financial statements.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (5) | Tax
    Fees. These are fees for professional services with respect to tax compliance, tax advice, and tax planning.
| | --- | --------------------------------------------------------------------------------------------------------------------



| | (6) | All
    Other Fees. These are fees for permissible work that does not fall within any of the other fee categories, i.e., Audit
    Fees, Audit-Related Fees, or Tax Fees.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------



(62)









Pre-Approval
Policy for Audit and Non-Audit Services



We
do not have a standing audit committee, and the full Board performs all functions of an audit committee, including the pre-approval
of all audit and non-audit services before we engage an accountant. All of the services rendered to us by Silberstein Ungar, PLLC
were pre-approved by our Board of Directors.



We
are presently working with its legal counsel to establish formal pre-approval policies and procedures for future engagements of
our accountants. The new policies and procedures will be detailed as to the particular service, will require that the Board or
an audit committee thereof be informed of each service, and will prohibit the delegation of pre-approval responsibilities to management.
It is currently anticipated that our new policy will provide (i) for an annual pre-approval, by the Board or audit committee,
of all audit, audit-related and non-audit services proposed to be rendered by the independent auditor for the fiscal year, as
specifically described in the auditor's engagement letter, and (ii) that additional engagements of the auditor, which were not
approved in the annual pre-approval process, and engagements that are anticipated to exceed previously approved thresholds, will
be presented on a case-by-case basis, by the President or Controller, for pre-approval by the Board or audit committee, before
management engages the auditors for any such purposes. The new policy and procedures may authorize the Board or audit committee
to delegate, to one or more of its members, the authority to pre-approve certain permitted services, provided that the
estimated fee for any such service does not exceed a specified dollar amount (to be determined). All pre-approvals shall be contingent
on a finding, by the Board, audit committee, or delegate, as the case may be, that the provision of the proposed services is compatible
with the maintenance of the auditor's independence in the conduct of its auditing functions. In no event shall any non-audit related
service be approved that would result in the independent auditor no longer being considered independent under the applicable rules
and regulations of the Securities and Exchange Commission.



(a)
On December 31, 2011, our Chief Executive Officer and Chief Financial Officer made an evaluation of our disclosure controls and
procedures. In our opinion, the disclosure controls and procedures are adequate because the systems of controls and procedures
are designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3)
transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial
condition, results of operations and cash flows for the respective periods being presented. Moreover, the evaluation did not reveal
any significant deficiencies or material weaknesses in our disclosure controls and procedures.



(b)
There have been no significant changes in our internal controls or in other factors that could significantly affect these controls
since the last evaluation.





(63)







PART
IV



ITEM
15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES



|(a) | Financial Statements
|--- | --------------------



1. The following
financial statements of Organic Plant Health Inc. are included in Part II, Item 8:



Report of
Independent Registered Public Accounting Firm Balance Sheet at December 31, 2011

Statements
of Operations - for the years ended December 31, 2011 and 2010

Statements
of Cash Flows - for the years ended December 31, 2011 and 2010

Statements
of Stockholders’ Equity - for the years ended December 31, 2011 and 2010

Notes to
Financial Statements



2. Exhibits



14.1 Code
of Ethics

31.1. Rule
13a-14(a)/15d-14(a) Certifications of Chief Executive Officer

31.2. Rule
13a-14(a)/15d-14(a) Certifications of Chief Financial Officer

32.1. Section
1350 Certifications of Chief Executive Officer

32.2. Section
1350 Certifications of Chief Financial Officer



|(b) | Reports on Form 8-K
|--- | -------------------



None.



(64)







SIGNATURES



In
accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has caused this report to be signed
on its behalf by the undersigned majority of the Board of Directors, thereunto duly authorized.



|                         | 
|------------------------ | 
|                         | 
|                         | 
|                         | 
|Date:
    April 13, 2012 | 
|                         | 
|                         | 







(65)









Exhibits



14.1 Code
of Ethics

31.1. Rule
13a-14(a)/15d-14(a) Certifications of Chief Executive Officer

31.2. Rule
13a-14(a)/15d-14(a) Certifications of Chief Financial Officer

32.1. Section
1350 Certifications of Chief Executive Officer

32.2. Section
1350 Certifications of Chief Financial Officer