Note 18. Subsequent Events

On October 3, 2012, the Company completed the sale of the remaining two parcels of the Lee County, Florida properties. The sales price for the two parcels was $2,500,000 of which we received cash of $2,391,000 after the deduction of certain closing costs and taxes. During the third quarter of fiscal year 2012, we recorded an impairment charge to reduce the carrying value to the net realizable value; therefore, we did not realize any gain or loss on the transaction in October of 2012. The Company sold the first two parcels of the Lee County, Florida properties on July 25, 2012. See Note 7. Property, Buildings and Equipment, net.

On October 9, 2012, the Company paid the State of Florida $323,000 for taxes and interest as a result of the settlement of the IRS Audit. The payment included $318,000 for taxes and $5,000 for interest. The Company has additional pending state interest and penalties totaling $149,000 outstanding as a result of the final settlement amounts which were accrued at September 30, 2012. See Note 12. Income Taxes.

On October 10, 2012, the Company paid in full the outstanding mortgage note with an interest rate of 6.68% held by Farm Credit of Florida totaling $1,860,000. The payment included $1,794,000 for the principal balance and $66,000 for a prepayment penalty. The mortgage was collateralized by 7,680 acres of real estate used for farm leases, sugarcane and citrus production. Documents evidencing satisfaction of the mortgage and release of collateral are in process and will be recorded upon completion. See Note 10. Long-Term Debt.