Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Jul. 31, 2014 | Sep. 09, 2014 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'REALBIZ MEDIA GROUP, INC | ' |
Entity Central Index Key | '0001430523 | ' |
Current Fiscal Year End Date | '--10-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'RBIZ | ' |
Entity Common Stock, Shares Outstanding | ' | 77,266,755 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Jul-14 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jul. 31, 2014 | Oct. 31, 2013 |
Current Assets | ' | ' |
Cash | $11,100 | $1,304,374 |
Accounts receivable, net of allowance for doubtful accounts | 87,599 | 76,047 |
Prepaid expenses | 3,050 | 272 |
Security deposits | 0 | 345 |
Total current assets | 101,749 | 1,381,038 |
Property and equipment, net | 49,100 | 56,357 |
Website development costs and intangible assets, net | 4,170,002 | 4,254,582 |
Due from affiliates | 1,295,938 | 4,199 |
Total assets | 5,616,789 | 5,696,176 |
Current Liabilities | ' | ' |
Accounts payable and accrued expenses | 1,717,529 | 1,257,032 |
Deferred revenue | 31,038 | 31,310 |
Convertible notes payable | 60,000 | 280,000 |
Loans payable | 170,000 | 191,214 |
Total current liabilities | 1,978,567 | 1,759,556 |
Total liabilities | 1,978,567 | 1,759,556 |
Stockholders' Equity | ' | ' |
Common stock, $.001 par value; 125,000,000 authorized and 73,703,454 shares issued and outstanding at July 31,2014 and 49,039,511 shares issued and outstanding at October 31, 2013, respectively | 73,703 | 49,040 |
Additional paid-in-capital | 17,282,851 | 14,179,044 |
Subscription advances | 30,000 | 13,500 |
Accumulated other comprehensive income (loss) | 41,276 | -19,215 |
Accumulated deficit | -13,883,618 | -10,379,759 |
Total stockholders' equity | 3,638,222 | 3,936,620 |
Total liabilities and stockholders' equity | 5,616,789 | 5,696,176 |
Series A Preferred Stock [Member] | ' | ' |
Stockholders' Equity | ' | ' |
Series A convertible preferred stock, $.001 par value; 100,000,000 authorized and 94,009,762 shares issued and outstanding at July 31,2014 and October 31, 2013, respectively | $94,010 | $94,010 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jul. 31, 2014 | Oct. 31, 2013 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares, issued | 73,703,454 | 49,039,511 |
Common stock, shares outstanding | 73,703,454 | 49,039,511 |
Series A Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred Stock, shares issued | 94,009,762 | 94,009,762 |
Preferred stock, shares outstanding | 94,009,762 | 94,009,762 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | |
Revenues | ' | ' | ' | ' |
Real estate media revenue | $274,712 | $272,853 | $773,326 | $864,022 |
Cost of revenues | 170,801 | 15,538 | 209,926 | 51,157 |
Gross profit | 103,911 | 257,315 | 563,400 | 812,865 |
Operating expenses | ' | ' | ' | ' |
Salaries and benefits | 333,479 | 157,166 | 827,849 | 829,121 |
Selling and promotions expense | 13,337 | 40,146 | 219,085 | 156,261 |
General and administrative | 599,283 | 657,754 | 2,841,045 | 1,648,926 |
Total operating expenses | 946,099 | 855,066 | 3,887,979 | 2,634,308 |
Operating loss | -842,188 | -597,751 | -3,324,579 | -1,821,443 |
Other income (expense) | ' | ' | ' | ' |
Interest expense | 0 | 0 | -1,314 | 0 |
Loss on conversion of debt to equity | 0 | -1,066 | 0 | -1,066 |
Gain on forgiveness of debt | 0 | 0 | 0 | 384,304 |
Exchange gain (loss) | 12,832 | -1,419 | -2,875 | -1,419 |
Other income (expense) | -1,156 | 2,581 | 176,533 | 0 |
Total other income (expense) | 11,676 | 96 | 172,344 | 381,819 |
Net loss | -830,512 | -597,655 | -3,152,235 | -1,439,624 |
Preferred Stock Dividend | -118,496 | -125,261 | -351,624 | -405,399 |
Net loss attributable to common stockholders | -949,008 | -722,916 | -3,503,859 | -1,845,023 |
Weighted average number of shares outstanding (in shares) | 69,163,833 | 23,379,147 | 61,036,665 | 9,667,400 |
Basic and diluted net loss per share (in dollars per share) | ($0.01) | ($0.03) | ($0.06) | ($0.19) |
Comprehensive income (loss): | ' | ' | ' | ' |
Unrealized gain (loss) on currency translation adjustment | -6,697 | 11,665 | 60,491 | 31,612 |
Comprehensive loss | ($955,705) | ($711,251) | ($3,443,368) | ($1,813,411) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Cash flows from operating activities: | ' | ' |
Net loss | ($3,152,235) | ($1,439,624) |
Adjustments to reconcile net loss to net cash from operating activities: | ' | ' |
Amortization and depreciation | 1,276,094 | 1,109,873 |
Gain on forgiveness of debt | 0 | -384,304 |
Stock based compensation and consulting fees | 785,781 | 63,418 |
Changes in operating assets and liabilities: | ' | ' |
Increase in accounts receivable | -11,552 | -102,154 |
Increase in prepaid expenses | -2,778 | -691 |
Increase in subscription receivable | 0 | -5,000 |
(Increase) decrease in security deposits | 345 | -9,542 |
(Increase) decrease in due from affiliates | -1,291,738 | 162,728 |
Increase (decrease) in accounts payable and accrued expenses | 108,873 | -7,842 |
Decrease in deferred revenue | -272 | -6,038 |
Net cash used in operating activities | -2,287,482 | -619,176 |
Cash flows from investing activities: | ' | ' |
Purchase of computer equipment | -4,960 | -42,149 |
Payments towards software developments costs | -16,260 | 0 |
Payments towards website development costs | -563,037 | -168,610 |
Net cash used in investing activities | -584,257 | -210,759 |
Cash flows from financing activities: | ' | ' |
Proceeds from loans payable | 0 | 35,000 |
Payments applied to loans payable | -21,214 | -55,385 |
Proceeds from subscription advances | 30,000 | 0 |
Proceeds from the sale of common stock and warrants | 842,668 | 802,000 |
Proceeds from the exercise of outstanding warrants | 666,520 | 0 |
Net cash provided by financing activities | 1,517,974 | 781,615 |
Effect of exchange rate changes on cash | 60,491 | 31,612 |
Net decrease in cash | -1,293,274 | -16,708 |
Cash at beginning of period | 1,304,374 | 36,408 |
Cash at end of period | 11,100 | 19,700 |
Supplemental disclosure: | ' | ' |
Cash paid for interest | 1,314 | 1,066 |
Supplemental disclosure of non-cash investing and financing activity: | ' | ' |
Preferred stock dividends accrued, Value | 351,624 | 280,138 |
Warrants issued on debt modification,Value | 4,809,308 | 0 |
Warrants issued on debt modification | 12,000,000 | 0 |
Common Stock [Member] | ' | ' |
Supplemental disclosure of non-cash investing and financing activity: | ' | ' |
Conversion of Stock, Amount Issued | 13,500 | 0 |
Conversion of Stock, Shares Issued | 27,000 | 0 |
Warrant [Member] | ' | ' |
Supplemental disclosure of non-cash investing and financing activity: | ' | ' |
Conversion of Stock, Shares Issued | 9,000 | 0 |
Preferred Series B shares converted to common stock [Member] | ' | ' |
Supplemental disclosure of non-cash investing and financing activity: | ' | ' |
Conversion of Stock, Amount Issued | 453,250 | 44,250 |
Conversion of Stock, Shares Issued | 9,065,000 | 885,000 |
Preferred Series C shares converted to common stock [Member] | ' | ' |
Supplemental disclosure of non-cash investing and financing activity: | ' | ' |
Conversion of Stock, Amount Issued | 0 | 150,000 |
Conversion of Stock, Shares Issued | 0 | 1,500,000 |
Preferred Series D shares converted to common stock [Member] | ' | ' |
Supplemental disclosure of non-cash investing and financing activity: | ' | ' |
Conversion of Stock, Amount Issued | 133,225 | 1,860,686 |
Conversion of Stock, Shares Issued | 888,078 | 14,334,942 |
Promissory notes converted to common stock [Member] | ' | ' |
Supplemental disclosure of non-cash investing and financing activity: | ' | ' |
Conversion of Stock, Amount Issued | $80,000 | $56,376 |
Conversion of Stock, Shares Issued | 1,600,000 | 27,500 |
NATURE_OF_BUSINESS_AND_BASIS_O
NATURE OF BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Jul. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
NOTE 1: NATURE OF BUSINESS AND BASIS OF PRESENTATION | |
Nature of Business | |
We are engaged in the business of providing digital media and marketing services for the real estate industry. We currently generate revenue from advertising, real estate broker commissions and referral fees. | |
Basis of Presentation | |
The unaudited interim consolidated financial information furnished herein reflects all adjustments, consisting only of normal recurring items, which in the opinion of management are necessary to fairly state RealBiz Media Group, Inc. and its subsidiaries’ (collectively, the “Company” or “we,” “us” or “our”) financial position, results of operations and cash flows for the dates and periods presented and to make such information not misleading. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”); nevertheless, management of the Company believes that the disclosures herein are adequate to make the information presented not misleading. | |
These consolidated financial statements should be read in conjunction with the Company’s audited financial statements for the year ended October 31, 2013, contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 13, 2014. The results of operations for the three and nine months ended July 31, 2014, are not necessarily indicative of results to be expected for any other interim period or the fiscal year ending October 31, 2014. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | |||
Jul. 31, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Business Description and Accounting Policies [Text Block] | ' | |||
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Use of Estimates | ||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. If actual results significantly differ from the Company’s estimates, the Company’s financial condition and results of operations could be materially impacted. | ||||
Cash and Cash Equivalents | ||||
For purposes of balance sheet presentation and reporting of cash flows, the Company considers all unrestricted demand deposits, money market funds and highly liquid debt instruments with an original maturity of less than 90 days to be cash and cash equivalents. There were no cash equivalents at July 31, 2014 and October 31, 2013. | ||||
Accounts Receivable | ||||
The Company provides its marketing and promotional services to agents or brokers via a web-based portal that allows for credit card payments. The Company recognizes accounts receivable for amounts uncollected from the credit card service provider at the end of the accounting period. The Company regularly reviews outstanding receivables and provides for estimated losses through an allowance for doubtful accounts. In evaluating the level of established loss reserves, the Company makes judgments regarding its customers’ ability to make required payments, economic events and other factors. As the financial condition of these parties change, circumstances develop or additional information becomes available, adjustments to the allowance for doubtful accounts may be required. The Company maintains reserves for potential credit losses, and such losses traditionally have been within its expectations. | ||||
Property and Equipment | ||||
All expenditures on the acquisition for property and equipment are recorded at cost and capitalized as incurred, provided the asset benefits the Company for a period of more than one year. Expenditures on routine repairs and maintenance of property and equipment are charged directly to operating expense. The property and equipment is depreciated based upon its estimated useful life after being placed in service. The estimated useful life of computer equipment is 3 years. When equipment is retired, sold or impaired, the resulting gain or loss is reflected in earnings. The Company incurred depreciation expense of $12,217 and $-0- for the nine months ended July 31, 2014 and 2013, respectively. | ||||
Impairment of Long-Lived Assets | ||||
In accordance with Accounting Standards Codification 360-10, “Property, Plant and Equipment”, the Company periodically reviews its long- lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. For the nine months ended July 31, 2014 and 2013, the Company did not impair any long-lived assets. | ||||
Website Development Costs | ||||
The Company accounts for website development costs in accordance with Accounting Standards Codification 350-50 “Website Development Costs”. Accordingly, all costs incurred in the planning stage are expensed as incurred, costs incurred in the website application and infrastructure development stage that meet specific criteria are capitalized and costs incurred in the day to day operation of the website are expensed as incurred. | ||||
Software Development Costs | ||||
The Company capitalizes internal software development costs subsequent to establishing technological feasibility of a software application in accordance with guidelines established by "ASC 985-20-25" Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed, requiring certain software development costs to be capitalized upon the establishment of technological feasibility. The establishment of technological feasibility and the ongoing assessment of the recoverability of these costs require considerable judgment by management with respect to certain external factors such as anticipated future revenue, estimated economic life, and changes in software and hardware technologies. Amortization of the capitalized software development costs begins when the product is available for general release to customers. Capitalized costs are amortized based on the greater of (a) the ratio of current gross revenues to the total current and anticipated future gross revenues, or (b) the straight-line method over the remaining estimated economic life of the product. For the nine months ended July 31, 2014, the Company has capitalized $16,260 of costs associated with the development of a mobile app that has not been placed into service. | ||||
Goodwill and Other Intangible Assets | ||||
In accordance with ASC 350-30-65 “Goodwill and Other Intangible Assets", the Company assesses the impairment of identifiable intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors the Company considers to be important which could trigger an impairment review include the following: | ||||
1 | Significant underperformance compared to historical or projected future operating results; | |||
2 | Significant changes in the manner or use of the acquired assets or the strategy for the overall business; and | |||
3 | Significant negative industry or economic trends. | |||
When the Company determines that the carrying value of an intangible may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flow, the Company records an impairment charge equal to the amount that the book value exceeds fair value. The Company measures fair value based on a projected discounted cash flow method using a discount rate determined by management to be commensurate with the risk inherent to the current business model. Significant management judgment is required in determining whether an indicator of impairment exists and in projecting cash flows. The Company did not consider it necessary to record an impairment charge on its intangible assets during the nine months ended July 31, 2014 and 2013. | ||||
Intellectual properties that have finite useful lives are amortized over their useful lives. The Company incurred amortization expense of $1,263,877 and $1,109,873 for the nine months ended July 31, 2014 and 2013, respectively. | ||||
Convertible Debt Instruments | ||||
The Company records debt net of debt discount for beneficial conversion features and warrants, on a relative fair value basis. Beneficial conversion features are recorded pursuant to the Beneficial Conversion and Debt Topics of the FASB Accounting Standards Codification. The amounts allocated to warrants and beneficial conversion rights are recorded as debt discount and as additional paid-in-capital. Debt discount is amortized to interest expense over the life of the debt. | ||||
Fair Value of Financial Instruments | ||||
The Company adopted ASC topic 820, “Fair Value Measurements and Disclosures” (ASC 820), formerly SFAS No. 157 “Fair Value Measurements,” effective January 1, 2009. ASC 820 defines “fair value” as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There was no impact relating to the adoption of ASC 820 to the Company’s consolidated financial statements. | ||||
ASC 820 also describes three levels of inputs that may be used to measure fair value: | ||||
Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. | ||||
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | ||||
Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. | ||||
Financial instruments consist principally of cash, accounts receivable, prepaid expenses, due from affiliates, accounts payable, accrued liabilities and other current liabilities. The carrying amounts of such financial instruments in the accompanying balance sheets approximate their fair values due to their relatively short- term nature. The fair value of long-term debt is based on current rates at which the Company could borrow funds with similar remaining maturities. The carrying amounts approximate fair value. It is management’s opinion that the Company is not exposed to any significant currency or credit risks arising from these financial instruments. | ||||
Revenue Recognition | ||||
The Company provides its marketing and promotional services to agents or brokers via a web-based portal that allows for credit card payments. Customers may pay a monthly recurring fee or an annual fee. Some customers additionally pay a one-time set up fee. Monthly recurring fees are recognized in the month the service is rendered. Collection of one-time set up fees and annual services fees give rise to recognized monthly revenue in the then-current month as well as deferred revenue liabilities representing the collected fee for services yet to be delivered. | ||||
Cost of Revenues | ||||
Cost of revenues includes costs attributable to services sold and delivered. These costs include such items as credit card fees, sales commission to business partners, expenses related to our participation in industry conferences, and public relations expenses. | ||||
Advertising Expense | ||||
Advertising costs are charged to expense as incurred and are included in selling and promotions expense in the accompanying unaudited consolidated financial statements. Advertising expense for the nine months ended July 31, 2014 and 2013 was $58,990 and $33,405, respectively. | ||||
Share-Based Compensation | ||||
The Company computes share based payments in accordance with Accounting Standards Codification 718-10 “Compensation” (ASC 718-10). ASC 718-10 establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods and services at fair value, focusing primarily on accounting for transactions in which an entity obtains employees services in share-based payment transactions. It also addresses transactions in which an entity incurs liabilities in exchange for goods and services that are based on the fair value of an entity’s equity instruments or that may be settled by the issuance of those equity instruments. In March 2005, the SEC issued SAB No. 107, Share-Based Payment (“SAB 107”) which provides guidance regarding the interaction of ASC 718-10 and certain SEC rules and regulations. The Company has applied the provisions of SAB 107 in its adoption of ASC 718-10. The Company accounts for non-employee share-based awards in accordance with ASC Topic 505-50, Equity Based Payments to Non-Employees. The Company estimates the fair value of stock options by using the Black-Scholes option pricing model. | ||||
Foreign Currency and Other Comprehensive Income (Loss) | ||||
The functional currency of our foreign subsidiaries is typically the applicable local currency. The translation from the respective foreign currencies to United States Dollars (U.S. Dollar) is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for income statement accounts using a weighted average exchange rate during the period. Gains or losses resulting from such translation are included as a separate component of accumulated other comprehensive income. Gains or losses resulting from foreign currency transactions are included in foreign currency income or loss except for the effect of exchange rates on long-term inter-company transactions considered to be a long-term investment, which are accumulated and credited or charged to other comprehensive income. | ||||
Transaction gains and losses are recognized in our results of operations based on the difference between the foreign exchange rates on the transaction date and on the reporting date. We recognized net foreign exchange loss of $2,875 and $1,419 for nine months ended July 31, 2014 and 2013, respectively. The foreign currency exchange gains and losses are included as a component of other (income) expense, net, in the accompanying Consolidated Unaudited Statements of Operations. For the nine months ended July 31, 2014 and 2013, the increase in accumulated comprehensive gain was $60,491 and $31,612, respectively. | ||||
The exchange rate adopted for the foreign exchange transactions are the rates of exchange as quoted on OANDA. Translation of amount from Canadian dollars into United States dollars was made at the following exchange rates for the respective periods: | ||||
⋅ | As of July 31, 2014 - Canadian dollar $0.91970 to US $1.00 | |||
⋅ | For the nine months ended July 31, 2014 - Canadian dollar $0.92563 to US $1.00 | |||
Income Taxes | ||||
The Company accounts for income taxes in accordance with ASC 740, Accounting for Income Taxes, as clarified by ASC 740-10, Accounting for Uncertainty in Income Taxes. Under this method, deferred income taxes are determined based on the estimated future tax effects of differences between the financial statement and tax basis of assets and liabilities and net operating loss and tax credit carryforwards given the provisions of enacted tax laws. Deferred income tax provisions and benefits are based on changes to the assets or liabilities from year to year. In providing for deferred taxes, the Company considers tax regulations of the jurisdictions in which the Company operates, estimates of future taxable income, and available tax planning strategies. If tax regulations, operating results or the ability to implement tax-planning strategies vary, adjustments to the carrying value of deferred tax assets and liabilities may be required. Valuation allowances are recorded related to deferred tax assets based on the “more likely than not” criteria of ASC 740. | ||||
ASC 740-10 requires that the Company recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the “more-likely-than-not” threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. | ||||
Earnings Per Share | ||||
Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. | ||||
Diluted earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. Diluted loss per common share is considered to be equal to basic because it is anti-dilutive. The Company’s common stock equivalents include the following: | ||||
July 31, | ||||
2014 | ||||
Series A convertible preferred stock issued and outstanding | 94,009,762 | |||
Warrants to purchase common stock issued, outstanding and exercisable | 17,099,257 | |||
Stock options issued, outstanding and exercisable | 1,000 | |||
Shares on convertible promissory notes | 400,000 | |||
111,510,019 | ||||
Concentrations, Risks and Uncertainties | ||||
The Company’s operations are related to the real estate industry and its prospects for success are tied indirectly to interest rates and the general housing and business climates in the United States. | ||||
Reclassifications | ||||
Certain reclassifications have been made in the consolidated financial statements for comparative purposes. These reclassifications have no effect on the results of operations or financial position of the Company. | ||||
Recently Issued Accounting Pronouncements | ||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update that amends the accounting guidance on revenue recognition. The amendments in this accounting standard update are intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, and improve disclosure requirements. The amendments in this accounting standard update are effective for interim and annual reporting periods beginning after December 15, 2016. We are currently evaluating the impact of the provisions of the accounting standard update. | ||||
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements and Property, Plant, and Equipment,” (ASU 2014-08). This ASU changes the threshold for reporting discontinued operations and adds new disclosures. The new guidance defines a discontinued operation as a disposal of a component or group of components that is disposed of or is classified as held for sale and “represents a strategic shift that has (or will have) a major effect on our operations and financial results.” For disposals of individually significant components that do not qualify as discontinued operations, we must disclose pre-tax earnings of the disposed component. This guidance is effective for us prospectively for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. | ||||
GOING_CONCERN
GOING CONCERN | 9 Months Ended |
Jul. 31, 2014 | |
Going Concern [Abstract] | ' |
Going Concern Disclosure [Text Block] | ' |
NOTE 3: GOING CONCERN | |
The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. | |
The Company has incurred a net losses of $3,152,235 for the nine months ended July 31, 2014. At July 31, 2014, the Company had a working capital deficit of $1,876,818, and an accumulated deficit of $13,883,618. It is management’s opinion that these facts raise substantial doubt about the Company’s ability to continue as a going concern without additional debt or equity financing. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts nor to the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. | |
In order to meet its working capital needs through the next twelve months, the Company may consider plans to raise additional funds through the issuance of additional shares of common or preferred stock and or through the issuance of debt instruments. Although we intend to obtain additional financing to meet our cash needs, we may be unable to secure any additional financing on terms that are favorable or acceptable to us, if at all. | |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Jul. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ' |
Property, Plant and Equipment Disclosure [Text Block] | ' |
Note 4: Property and Equipment | |
During the nine months ended July 31, 2014, the Company recorded the purchase of $4,960 of computer equipment and placed into service $42,149 of equipment purchased in the prior fiscal year, all depreciated using the straight line method over a 3 year period. The Company has recorded $12,217 and $-0- of depreciation expense for the nine months ended July 31, 2014 and 2013, respectively. The depreciable equipment has a weighted average remaining useful life of 2.3 years. There was no asset impairment recorded for the nine months ended July 31, 2014 and 2013. | |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 9 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||||||
NOTE 5: INTANGIBLE ASSETS | |||||||||||||
The following table sets forth the intangible assets, both acquired and developed, including accumulated amortization: | |||||||||||||
July 31, 2014 | |||||||||||||
Remaining | Accumulated | Net Carrying | |||||||||||
Useful Life | Cost | Amortization | Value | ||||||||||
Sales/Marketing agreement | 1.7 years | $ | 4,796,178 | $ | 2,410,359 | $ | 2,385,819 | ||||||
Website development costs | 2.6 years | 1,398,789 | 180,868 | 1,217,921 | |||||||||
Web platform/customer list - ReachFactor acquisition | 2.8 years | 600,000 | 49,998 | 550,002 | |||||||||
Software development costs (not placed in service) | 3.0 years | 16,260 | -0- | 16,260 | |||||||||
$ | 6,811,227 | $ | 2,641,225 | $ | 4,170,002 | ||||||||
During the nine months ended July 31, 2014, the Company incurred expenditures of $563,037 for website development costs as a new development team was brought in to assess the quality of the website. Upon their recommendation, significant changes, upgrades and modifications were recommended and have been ongoing since the post launch date of March 4, 2014. This is being done to ensure that the site works capably as the Company's "revenue driver". This capitalization falls with the scope of ASC 350-50-25-15 wherein costs of upgrades and enhancements should be capitalized as they will result in added functionality of the website. | |||||||||||||
During the nine months ended July 31, 2014, the Company incurred expenditures of $16,260 for software development costs to develop a mobile app called "EZ FLIX" as a tool to assist users in converting still pictures to video. The Company capitalizes internal software development costs subsequent to establishing technological feasibility of a software application in accordance with guidelines established by "ASC 985-20-25" Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed, requiring certain software development costs to be capitalized upon the establishment of technological feasibility. As of July 31, 2014, the app has not been placed into service. | |||||||||||||
On May 24, 2014, RealBiz Media Group, Inc. (“RBIZ”) entered into an Asset Sale Agreement with ReachFactor, Inc. (“ReachFactor”) and its two principals, Suresh Srinivasan and Arun Srinivasan pursuant to which the Company acquired substantially all of the assets of ReachFactor and the Company assumed certain liabilities of ReachFactor not to exceed $25,000 in consideration of RBIZ's issuance to ReachFactor of 2,000,000 shares of RBIZ's common stock valued at $0.15 per share for a total of $300,000. The acquisition of the assets is subject to an unwind at the option of Suresh Srinivasan and Arun Srinivasan if on or prior to the date that is six months after the closing of the Asset Sale Agreement, the Company terminates the employment of either of Suresh Srinivasan and/ or Arun Srinivasan (each referred to as an “Executive”) without cause or either Executive terminates his employment for good reason. In the event of an unwind the assets revert back to ReachFactor and the 2,000,000 shares of stock revert back to RBIZ. | |||||||||||||
The value of the common stock was based on the fair value of the stock at the time of issuance which was $0.15 per share and RBIZ capitalized $600,000 as intangible assets to be amortized over a three year period beginning June 1, 2014. The $600,000 included the capitalization of the stock issuance valued at $300,000 referred to above along with additional consideration of $300,000, related to the acquisition, representing the value of an additional 2,000,000 shares of RBIZ's common stock that were issued on the acquisition date to an escrow account and is considered as part of the purchase price consideration because these shares can only be forfeited upon the total rewinding of the acquisition or voluntary termination of employment by the Srinivasans and the Srinivasans are receiving market-based cash compensation for their services to RBIZ. These additional shares are to be released to Suresh Srinivasan and Arun Srinivasan at the rate of 500,000 shares every three months. The transaction represents an asset acquisition that is accounted for as a business combination under ASC 805. | |||||||||||||
Intangible assets are amortized on a straight-line basis over their expected useful lives, estimated to be 4 years, except for the website(s), which is 3 years. Amortization expense related to website development costs and intangible assets was $1,263,877 and $1,109,873, for nine months ended July 31, 2014 and 2013, respectively. | |||||||||||||
ACCOUNTS_PAYABLE_AND_ACCRUED_E
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 9 Months Ended | ||||
Jul. 31, 2014 | |||||
Payables and Accruals [Abstract] | ' | ||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | ||||
NOTE 6: ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |||||
At July 31, 2014, the Company’s accounts payable and accrued expenses are as follows: | |||||
July 31, 2014 | |||||
Trade payables and accruals | $ | 231,647 | |||
Accrued preferred stock dividends | 875,519 | ||||
Payroll and commissions | 414,209 | ||||
Other liabilities | 196,154 | ||||
Total accounts payable and accrued expenses | $ | 1,717,529 | |||
DUE_FROMTO_AFFILIATES
DUE FROM/TO AFFILIATES | 9 Months Ended |
Jul. 31, 2014 | |
Receivables [Abstract] | ' |
Due to and from Broker-Dealers and Clearing Organizations Disclosure [Text Block] | ' |
NOTE 7: DUE FROM/TO AFFILIATES | |
During the normal course of business, the Company receives and/ or makes advances for operating expenses to/from our parent Company, Next 1 Interactive, Inc. As of July 31, 2014, the Company is due $1,295,938 as a result of such transactions. | |
CONVERTIBLE_NOTES_PAYABLE
CONVERTIBLE NOTES PAYABLE | 9 Months Ended | |
Jul. 31, 2014 | ||
Debt Disclosure [Abstract] | ' | |
Convertible Notes Payable [Text Block] | ' | |
NOTE 8: CONVERTIBLE NOTES PAYABLE | ||
During the nine months ended July 31, 2014, the Company: | ||
· | issued 1,366,666 shares at the conversion rate of $0.15 per share, upon the noteholder's request, to convert the remaining principal balance of $205,000. | |
· | issued 100,000 shares at the conversion rate of $0.15 per share, upon the noteholder's request, to convert $15,000 in principal leaving a remaining principal balance of $60,000. | |
LOANS_PAYABLE
LOANS PAYABLE | 9 Months Ended | ||||
Jul. 31, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Debt Disclosure [Text Block] | ' | ||||
NOTE 9: LOANS PAYABLE | |||||
During the nine months ended July 31, 2014, the Company made $21,214 in principal payments and incurred $1,314 in interest expense for the promissory note. There was no activity for the nine months ended July 31, 2014 for the non-related third party investors. | |||||
The Company’s loans payable is summarized follows: | |||||
July 31, 2014 | |||||
Promissory note | $ | -0- | |||
Non-related third party investors | 170,000 | ||||
Total Loans payable | $ | 170,000 | |||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended | |
Jul. 31, 2014 | ||
Stockholders' Equity Note [Abstract] | ' | |
Stockholders' Equity Note Disclosure [Text Block] | ' | |
NOTE 10: STOCKHOLDERS’ EQUITY | ||
The Company has 250,000,000 shares available and has designated 125,000,000 shares of common stock as authorized and 100,000,000 shares of Series A convertible preferred stock as authorized, both with a par value of $.001 as of July 31, 2014. There are 25,000,000 shares available for future designation as either common or preferred stock | ||
Common Stock | ||
During the nine months ended July 31, 2014, the Company: | ||
· | issued 3,950,379 shares of its common stock along with 3,079,056 one year warrants with an exercise price between a $0.18 and $1.25 for cash proceeds of $842.668. | |
· | issued 2,975,111 shares of its common stock upon exercise of 2,975,111 outstanding warrants for cash proceeds of $666,520. | |
· | issued 27,000 shares of its common stock along with 9,000 one year warrants with an exercise price between $0.18 to $1.00 as settlement of $13,500 of proceeds received in advance for prior fiscal year subscription agreements. | |
· | issued 620,830 shares of its common stock along with 235,780 one year warrants with an exercise price between $0.05 to $1.00 for a total value of $773,025 for consulting fees rendered. The value of the common stock issued was based on the fair value of the stock at the time of issuance. The value of the warrants was estimated at the time of grant using the Black-Scholes option pricing model with the following assumptions: risk free interest rate between 0.10% and 0.14%, dividend yield of -0-%, volatility factor between 318.89% and 611.08% and expected life of one year. | |
· | issued 9,065,000 shares of its common stock valued at $453,250 upon the conversion of the holders of convertible Series B preferred shares held in its parent company Next 1 Interactive, Inc. These common shares were valued at the carrying value of the converted parent company Series B preferred shares. | |
· | issued 888,078 shares of its common stock valued at $133,225 upon the conversion of the holders of convertible Series D preferred shares held in its parent company Next 1 Interactive, Inc. These common shares were valued at the carrying value of the converted parent company Series D preferred shares. | |
· | issued 1,600,000 shares of its common stock valued at $80,000 upon the conversion of the holders of convertible promissory notes held in its parent company Next 1 Interactive, Inc. These common shares were valued at the carrying value of the converted parent company promissory notes. | |
· | issued 12,000,000 one (1) year common stock warrants with an exercise price of $0.50 for a debt modification of convertible promissory notes held in its parent company Next 1 Interactive, Inc valued at $4,809,308. The value of the warrants was estimated at the time of grant using the Black-Scholes option pricing model with the following assumptions: risk free interest rate of 0.35%, dividend yield of -0-%, volatility factor of 324.34% and expected life of one year. | |
· | issued 2,000,000 shares of common stock as part of employment agreements in place with executives valued at $300,000. The value of the common stock was based on the fair value of the stock at the time of issuance. | |
· | issued 2,000,000 shares of common stock upon execution of an Asset Sale Agreement with ReachFactor, Inc. pursuant to which the Company acquired substantially all of the assets of ReachFactor and the Company assumed certain liabilities of ReachFactor not to exceed $25,000. The value of the common stock was based on the fair value of the stock at the time of issuance and totaled $300,000. | |
· | issued 1,366,666 shares at the conversion rate of $0.15 per share, upon the noteholder's request, to convert the remaining principal balance of $205,000. | |
· | issued 100,000 shares at the conversion rate of $0.15 per share, upon the noteholder's request, to convert $15,000 in principal leaving a remaining principal balance of $60,000. | |
· | issued 70,789 shares upon the exercise of 70,879 warrants in settlement of consulting fees valued at $12,758. | |
· | On May 5, 2014, the Company's board of directors authorized a special warrant exercise pricing available to warrant holders of record as of May 5, 2014. The Board agreed to reduce the pricing on the warrants to $0.18 from their current level of $1.00 to $1.25 for the month of May 2014 only. The Company evaluated the incremental value of the modified warrants, as compared to the original warrant value, concluding that modification expense incurred was immaterial and the modification expense not recorded. | |
· | All of the conversions of Next 1 Interactive, Inc. securities were accounted for as contributed capital. | |
Common Stock Warrants | ||
At July 31, 2014, there were 17,099,257 warrants outstanding with a weighted average exercise price of $0.57 and weighted average life of .52 years. During the nine months ended July 31, 2014, the Company granted 15,323,836 warrants, 3,045,990 were exercised, 3,430,500 expired and 10,000 were assigned and 63,921 were cancelled. | ||
Convertible Preferred Stock Series A | ||
As of July 31, 2014, the Company had 94,009,762 shares of Convertible Preferred Stock Series A issued and outstanding. The preferred shares were issued at $.001 par and bear dividends at a rate of 10% per annum payable on a quarterly basis when declared by the board of directors. Dividends accrue whether or not they have been declared by the board. At the election of the Company, Preferred Dividends may be converted into Series A Stock, with each converted share having a value equal to the market price per share, subject to adjustment for stock splits. In order to exercise such option, the Company delivers written notice to the holder. Each share of Series A Stock is convertible at the option of the holder thereof at any time into a number of shares of Common Stock determined by dividing the Stated Value by the Conversion Price then in effect. The conversion price for the Series A Stock is equal to $1.00 per share. | ||
In the event of (a) the sale, conveyance, exchange, exclusive license, lease or other disposition of all or substantially all of the intellectual property or assets of the Company, (b) any acquisition of the Company by means of consolidation, stock exchange, stock sale, merger of other form of corporate reorganization of the Company with any other entity in which the Company's stockholders prior to the consolidation or merger own less than a majority of the voting securities of the surviving entity, or (c) the winding up or dissolution of the Company, whether voluntary or involuntary (each such event in clause (a), (b) or (c) a "liquidation event"), the Board shall determine in good faith the amount legally available for distribution to stockholders after taking into account the distribution of assets among, or payment thereof over to, creditors of the Company (the "net assets available for distribution"). The holders of the Series A stock then outstanding shall be entitled to be paid out of the net assets available for Distribution (or the consideration received in such transaction) before any payment or distribution shall be made to the holders of any class of preferred stock ranking junior to the Series A Stock or to the Common Stock, an amount for each share of Series A Stock equal to all accrued and unpaid Preferred Dividends plus the Stated Value, as adjusted (the "Series A Liquidation Amount"). | ||
Accrued but unpaid preferred stock dividends on the outstanding preferred shares as of July 31, 2014 totaled $875,519 and are included in accrued expenses. | ||
OTHER_INCOME
OTHER INCOME | 9 Months Ended |
Jul. 31, 2014 | |
Other Income and Expenses [Abstract] | ' |
Other Income and Other Expense Disclosure [Text Block] | ' |
NOTE 11: OTHER INCOME | |
Other income for the three and nine months ended July 31, 2014 represents primarily the proceeds from a Canadian grant program encouraging research and development activities. | |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jul. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
NOTE 12: RELATED PARTY TRANSACTIONS | |
During the nine months ended July 31, 2014, the Company paid $800 a month in rent for office space on behalf of an officer of the Company. | |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jul. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE 13: SUBSEQUENT EVENTS | |
The Company has evaluated subsequent events occurring after the balance sheet date and has identified the following: | |
On August 22, 2014, RealBiz’s board of directors has unanimously adopted a resolution seeking stockholder approval to authorize the Amendment to our Certificate of Incorporation to increase the number of authorized shares of common stock from 125 million shares to 250 million shares (the “Common Increase”) and to increase the number of shares of preferred stock designated as Series A Preferred Stock from 100 million shares to 120 million shares (the “Preferred Increase”). RealBiz’s Certificate of Incorporation, as currently in effect, authorizes RealBiz to issue up to 125 million shares of common stock, par value $0.001 per and One Hundred Twenty-Five Million (125,000,000) shares which may be designated as common or preferred stock, $.001 par value per share. The board of directors has proposed an increase in the number of authorized shares of the common stock and shares designated as Series A Preferred Stock of RealBiz and a stockholder holding in excess of 98.9% of the Series A Preferred Stock outstanding voting power which represents in excess of 55.5% of the outstanding voting power has approved the filing of the Amendment. Upon the filing of the Amendment, RealBiz will be authorized to issue 250 million shares of common stock $.001 par value and the number of shares of preferred stock designated as Series A Preferred Stock will increase to One Hundred Twenty Million (120,000,000) and par value, will remain the same. | |
During August and September of 2014, the Company received an aggregate of $75,000 in consideration of the future issuance of shares of a new series of Series B Preferred Stock, which to date have not been issued. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | |||
Jul. 31, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Use of Estimates, Policy [Policy Text Block] | ' | |||
Use of Estimates | ||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. If actual results significantly differ from the Company’s estimates, the Company’s financial condition and results of operations could be materially impacted. | ||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |||
Cash and Cash Equivalents | ||||
For purposes of balance sheet presentation and reporting of cash flows, the Company considers all unrestricted demand deposits, money market funds and highly liquid debt instruments with an original maturity of less than 90 days to be cash and cash equivalents. There were no cash equivalents at July 31, 2014 and October 31, 2013. | ||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' | |||
Accounts Receivable | ||||
The Company provides its marketing and promotional services to agents or brokers via a web-based portal that allows for credit card payments. The Company recognizes accounts receivable for amounts uncollected from the credit card service provider at the end of the accounting period. The Company regularly reviews outstanding receivables and provides for estimated losses through an allowance for doubtful accounts. In evaluating the level of established loss reserves, the Company makes judgments regarding its customers’ ability to make required payments, economic events and other factors. As the financial condition of these parties change, circumstances develop or additional information becomes available, adjustments to the allowance for doubtful accounts may be required. The Company maintains reserves for potential credit losses, and such losses traditionally have been within its expectations. | ||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |||
Property and Equipment | ||||
All expenditures on the acquisition for property and equipment are recorded at cost and capitalized as incurred, provided the asset benefits the Company for a period of more than one year. Expenditures on routine repairs and maintenance of property and equipment are charged directly to operating expense. The property and equipment is depreciated based upon its estimated useful life after being placed in service. The estimated useful life of computer equipment is 3 years. When equipment is retired, sold or impaired, the resulting gain or loss is reflected in earnings. The Company incurred depreciation expense of $12,217 and $-0- for the nine months ended July 31, 2014 and 2013, respectively. | ||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | |||
Impairment of Long-Lived Assets | ||||
In accordance with Accounting Standards Codification 360-10, “Property, Plant and Equipment”, the Company periodically reviews its long- lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. For the nine months ended July 31, 2014 and 2013, the Company did not impair any long-lived assets. | ||||
Website Development Costs [Policy Text Block] | ' | |||
Website Development Costs | ||||
The Company accounts for website development costs in accordance with Accounting Standards Codification 350-50 “Website Development Costs”. Accordingly, all costs incurred in the planning stage are expensed as incurred, costs incurred in the website application and infrastructure development stage that meet specific criteria are capitalized and costs incurred in the day to day operation of the website are expensed as incurred. | ||||
Software to be Sold, Leased, or Otherwise Marketed, Policy [Policy Text Block] | ' | |||
Software Development Costs | ||||
The Company capitalizes internal software development costs subsequent to establishing technological feasibility of a software application in accordance with guidelines established by "ASC 985-20-25" Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed, requiring certain software development costs to be capitalized upon the establishment of technological feasibility. The establishment of technological feasibility and the ongoing assessment of the recoverability of these costs require considerable judgment by management with respect to certain external factors such as anticipated future revenue, estimated economic life, and changes in software and hardware technologies. Amortization of the capitalized software development costs begins when the product is available for general release to customers. Capitalized costs are amortized based on the greater of (a) the ratio of current gross revenues to the total current and anticipated future gross revenues, or (b) the straight-line method over the remaining estimated economic life of the product. For the nine months ended July 31, 2014, the Company has capitalized $16,260 of costs associated with the development of a mobile app that has not been placed into service. | ||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | ' | |||
Goodwill and Other Intangible Assets | ||||
In accordance with ASC 350-30-65 “Goodwill and Other Intangible Assets", the Company assesses the impairment of identifiable intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors the Company considers to be important which could trigger an impairment review include the following: | ||||
1 | Significant underperformance compared to historical or projected future operating results; | |||
2 | Significant changes in the manner or use of the acquired assets or the strategy for the overall business; and | |||
3 | Significant negative industry or economic trends. | |||
When the Company determines that the carrying value of an intangible may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flow, the Company records an impairment charge equal to the amount that the book value exceeds fair value. The Company measures fair value based on a projected discounted cash flow method using a discount rate determined by management to be commensurate with the risk inherent to the current business model. Significant management judgment is required in determining whether an indicator of impairment exists and in projecting cash flows. The Company did not consider it necessary to record an impairment charge on its intangible assets during the nine months ended July 31, 2014 and 2013. | ||||
Intellectual properties that have finite useful lives are amortized over their useful lives. The Company incurred amortization expense of $1,263,877 and $1,109,873 for the nine months ended July 31, 2014 and 2013, respectively. | ||||
Debt, Policy [Policy Text Block] | ' | |||
Convertible Debt Instruments | ||||
The Company records debt net of debt discount for beneficial conversion features and warrants, on a relative fair value basis. Beneficial conversion features are recorded pursuant to the Beneficial Conversion and Debt Topics of the FASB Accounting Standards Codification. The amounts allocated to warrants and beneficial conversion rights are recorded as debt discount and as additional paid-in-capital. Debt discount is amortized to interest expense over the life of the debt. | ||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | |||
Fair Value of Financial Instruments | ||||
The Company adopted ASC topic 820, “Fair Value Measurements and Disclosures” (ASC 820), formerly SFAS No. 157 “Fair Value Measurements,” effective January 1, 2009. ASC 820 defines “fair value” as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There was no impact relating to the adoption of ASC 820 to the Company’s consolidated financial statements. | ||||
ASC 820 also describes three levels of inputs that may be used to measure fair value: | ||||
Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. | ||||
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | ||||
Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. | ||||
Financial instruments consist principally of cash, accounts receivable, prepaid expenses, due from affiliates, accounts payable, accrued liabilities and other current liabilities. The carrying amounts of such financial instruments in the accompanying balance sheets approximate their fair values due to their relatively short- term nature. The fair value of long-term debt is based on current rates at which the Company could borrow funds with similar remaining maturities. The carrying amounts approximate fair value. It is management’s opinion that the Company is not exposed to any significant currency or credit risks arising from these financial instruments. | ||||
Revenue Recognition, Policy [Policy Text Block] | ' | |||
Revenue Recognition | ||||
The Company provides its marketing and promotional services to agents or brokers via a web-based portal that allows for credit card payments. Customers may pay a monthly recurring fee or an annual fee. Some customers additionally pay a one-time set up fee. Monthly recurring fees are recognized in the month the service is rendered. Collection of one-time set up fees and annual services fees give rise to recognized monthly revenue in the then-current month as well as deferred revenue liabilities representing the collected fee for services yet to be delivered. | ||||
Cost of Sales, Policy [Policy Text Block] | ' | |||
Cost of Revenues | ||||
Cost of revenues includes costs attributable to services sold and delivered. These costs include such items as credit card fees, sales commission to business partners, expenses related to our participation in industry conferences, and public relations expenses. | ||||
Advertising Cost, Policy, Expensed Advertising Cost [Policy Text Block] | ' | |||
Advertising Expense | ||||
Advertising costs are charged to expense as incurred and are included in selling and promotions expense in the accompanying unaudited consolidated financial statements. Advertising expense for the nine months ended July 31, 2014 and 2013 was $58,990 and $33,405, respectively. | ||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |||
Share-Based Compensation | ||||
The Company computes share based payments in accordance with Accounting Standards Codification 718-10 “Compensation” (ASC 718-10). ASC 718-10 establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods and services at fair value, focusing primarily on accounting for transactions in which an entity obtains employees services in share-based payment transactions. It also addresses transactions in which an entity incurs liabilities in exchange for goods and services that are based on the fair value of an entity’s equity instruments or that may be settled by the issuance of those equity instruments. In March 2005, the SEC issued SAB No. 107, Share-Based Payment (“SAB 107”) which provides guidance regarding the interaction of ASC 718-10 and certain SEC rules and regulations. The Company has applied the provisions of SAB 107 in its adoption of ASC 718-10. The Company accounts for non-employee share-based awards in accordance with ASC Topic 505-50, Equity Based Payments to Non-Employees. The Company estimates the fair value of stock options by using the Black-Scholes option pricing model. | ||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | |||
Foreign Currency and Other Comprehensive Income (Loss) | ||||
The functional currency of our foreign subsidiaries is typically the applicable local currency. The translation from the respective foreign currencies to United States Dollars (U.S. Dollar) is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for income statement accounts using a weighted average exchange rate during the period. Gains or losses resulting from such translation are included as a separate component of accumulated other comprehensive income. Gains or losses resulting from foreign currency transactions are included in foreign currency income or loss except for the effect of exchange rates on long-term inter-company transactions considered to be a long-term investment, which are accumulated and credited or charged to other comprehensive income. | ||||
Transaction gains and losses are recognized in our results of operations based on the difference between the foreign exchange rates on the transaction date and on the reporting date. We recognized net foreign exchange loss of $2,875 and $1,419 for nine months ended July 31, 2014 and 2013, respectively. The foreign currency exchange gains and losses are included as a component of other (income) expense, net, in the accompanying Consolidated Unaudited Statements of Operations. For the nine months ended July 31, 2014 and 2013, the increase in accumulated comprehensive gain was $60,491 and $31,612, respectively. | ||||
The exchange rate adopted for the foreign exchange transactions are the rates of exchange as quoted on OANDA. Translation of amount from Canadian dollars into United States dollars was made at the following exchange rates for the respective periods: | ||||
⋅ | As of July 31, 2014 - Canadian dollar $0.91970 to US $1.00 | |||
⋅ | For the nine months ended July 31, 2014 - Canadian dollar $0.92563 to US $1.00 | |||
Income Tax, Policy [Policy Text Block] | ' | |||
Income Taxes | ||||
The Company accounts for income taxes in accordance with ASC 740, Accounting for Income Taxes, as clarified by ASC 740-10, Accounting for Uncertainty in Income Taxes. Under this method, deferred income taxes are determined based on the estimated future tax effects of differences between the financial statement and tax basis of assets and liabilities and net operating loss and tax credit carryforwards given the provisions of enacted tax laws. Deferred income tax provisions and benefits are based on changes to the assets or liabilities from year to year. In providing for deferred taxes, the Company considers tax regulations of the jurisdictions in which the Company operates, estimates of future taxable income, and available tax planning strategies. If tax regulations, operating results or the ability to implement tax-planning strategies vary, adjustments to the carrying value of deferred tax assets and liabilities may be required. Valuation allowances are recorded related to deferred tax assets based on the “more likely than not” criteria of ASC 740. | ||||
ASC 740-10 requires that the Company recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the “more-likely-than-not” threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. | ||||
Earnings Per Share, Policy [Policy Text Block] | ' | |||
Earnings Per Share | ||||
Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. | ||||
Diluted earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. Diluted loss per common share is considered to be equal to basic because it is anti-dilutive. The Company’s common stock equivalents include the following: | ||||
July 31, | ||||
2014 | ||||
Series A convertible preferred stock issued and outstanding | 94,009,762 | |||
Warrants to purchase common stock issued, outstanding and exercisable | 17,099,257 | |||
Stock options issued, outstanding and exercisable | 1,000 | |||
Shares on convertible promissory notes | 400,000 | |||
111,510,019 | ||||
Concentrations Risks and Uncertainties [Policy Text Block] | ' | |||
Concentrations, Risks and Uncertainties | ||||
The Company’s operations are related to the real estate industry and its prospects for success are tied indirectly to interest rates and the general housing and business climates in the United States. | ||||
Reclassification, Policy [Policy Text Block] | ' | |||
Reclassifications | ||||
Certain reclassifications have been made in the consolidated financial statements for comparative purposes. These reclassifications have no effect on the results of operations or financial position of the Company. | ||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||
Recently Issued Accounting Pronouncements | ||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update that amends the accounting guidance on revenue recognition. The amendments in this accounting standard update are intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, and improve disclosure requirements. The amendments in this accounting standard update are effective for interim and annual reporting periods beginning after December 15, 2016. We are currently evaluating the impact of the provisions of the accounting standard update. | ||||
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements and Property, Plant, and Equipment,” (ASU 2014-08). This ASU changes the threshold for reporting discontinued operations and adds new disclosures. The new guidance defines a discontinued operation as a disposal of a component or group of components that is disposed of or is classified as held for sale and “represents a strategic shift that has (or will have) a major effect on our operations and financial results.” For disposals of individually significant components that do not qualify as discontinued operations, we must disclose pre-tax earnings of the disposed component. This guidance is effective for us prospectively for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. | ||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | |||
Jul. 31, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | |||
The Company’s common stock equivalents include the following: | ||||
July 31, | ||||
2014 | ||||
Series A convertible preferred stock issued and outstanding | 94,009,762 | |||
Warrants to purchase common stock issued, outstanding and exercisable | 17,099,257 | |||
Stock options issued, outstanding and exercisable | 1,000 | |||
Shares on convertible promissory notes | 400,000 | |||
111,510,019 | ||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 9 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||||||
The following table sets forth the intangible assets, both acquired and developed, including accumulated amortization: | |||||||||||||
July 31, 2014 | |||||||||||||
Remaining | Accumulated | Net Carrying | |||||||||||
Useful Life | Cost | Amortization | Value | ||||||||||
Sales/Marketing agreement | 1.7 years | $ | 4,796,178 | $ | 2,410,359 | $ | 2,385,819 | ||||||
Website development costs | 2.6 years | 1,398,789 | 180,868 | 1,217,921 | |||||||||
Web platform/customer list - ReachFactor acquisition | 2.8 years | 600,000 | 49,998 | 550,002 | |||||||||
Software development costs (not placed in service) | 3.0 years | 16,260 | -0- | 16,260 | |||||||||
$ | 6,811,227 | $ | 2,641,225 | $ | 4,170,002 | ||||||||
ACCOUNTS_PAYABLE_AND_ACCRUED_E1
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 9 Months Ended | ||||
Jul. 31, 2014 | |||||
Payables and Accruals [Abstract] | ' | ||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | ' | ||||
At July 31, 2014, the Company’s accounts payable and accrued expenses are as follows: | |||||
July 31, 2014 | |||||
Trade payables and accruals | $ | 231,647 | |||
Accrued preferred stock dividends | 875,519 | ||||
Payroll and commissions | 414,209 | ||||
Other liabilities | 196,154 | ||||
Total accounts payable and accrued expenses | $ | 1,717,529 | |||
LOANS_PAYABLE_Tables
LOANS PAYABLE (Tables) | 9 Months Ended | ||||
Jul. 31, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Schedule of Debt [Table Text Block] | ' | ||||
The Company’s loans payable is summarized follows: | |||||
July 31, 2014 | |||||
Promissory note | $ | -0- | |||
Non-related third party investors | 170,000 | ||||
Total Loans payable | $ | 170,000 | |||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 9 Months Ended |
Jul. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount | 111,510,019 |
Series A Convertible Preferred Stock [Member] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount | 94,009,762 |
Warrant [Member] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount | 17,099,257 |
Equity Option [Member] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount | 1,000 |
Convertible Debt Securities [Member] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount | 400,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Foreign Currency Transaction Gain (Loss), before Tax, Total | $12,832 | ($1,419) | ($2,875) | ($1,419) |
Amortization of Intangible Assets | ' | ' | 1,263,877 | 1,109,873 |
Advertising Expense | ' | ' | 58,990 | 33,405 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | -6,697 | 11,665 | 60,491 | 31,612 |
Capitalized Computer Software, Net | 16,260 | ' | 16,260 | ' |
Foreign Currency Exchange Rate, Translation | 0.9197 | ' | 0.9197 | ' |
Description of Difference between Reported Amount and Reporting Currency Denominated Amount | ' | ' | 'Canadian dollar $0.92563 to US $1.00 | ' |
Computer Equipment [Member] | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | '3 years | ' |
Depreciation | ' | ' | $12,217 | $0 |
GOING_CONCERN_Details_Textual
GOING CONCERN (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | Oct. 31, 2013 | |
Going Concern [Line Items] | ' | ' | ' | ' | ' |
Net losses | $830,512 | $597,655 | $3,152,235 | $1,439,624 | ' |
Working capital deficit | 1,876,818 | ' | 1,876,818 | ' | ' |
Accumulated deficit | $13,883,618 | ' | $13,883,618 | ' | $10,379,759 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details Textual) (USD $) | 9 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Payments to Acquire Machinery and Equipment | $4,960 | $42,149 |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Payments to Acquire Machinery and Equipment | 4,960 | ' |
Machinery and Equipment, Gross | 42,149 | ' |
Depreciation | $12,217 | $0 |
Property, Plant and Equipment, Useful Life | '3 years | ' |
Weighted Average Remaining Useful Life | '2 years 3 months 18 days | ' |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | 9 Months Ended | |
Jul. 31, 2014 | Oct. 31, 2013 | |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | $6,811,227 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | 2,641,225 | ' |
Finite-Lived Intangible Assets, Net, Total | 4,170,002 | 4,254,582 |
Payments to Develop Software | 16,260 | ' |
Sales or Marketing Agreement [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Remaining Useful Life | '1 year 8 months 12 days | ' |
Finite-Lived Intangible Assets, Gross | 4,796,178 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | 2,410,359 | ' |
Finite-Lived Intangible Assets, Net, Total | 2,385,819 | ' |
Web Site Development Costs not placed in servie [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Remaining Useful Life | '2 years 7 months 6 days | ' |
Finite-Lived Intangible Assets, Gross | 1,398,789 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | 180,868 | ' |
Finite-Lived Intangible Assets, Net, Total | 1,217,921 | ' |
Web Platform or Customer List ReacFactor Acquisition [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Remaining Useful Life | '2 years 9 months 18 days | ' |
Finite-Lived Intangible Assets, Gross | 600,000 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | 49,998 | ' |
Finite-Lived Intangible Assets, Net, Total | 550,002 | ' |
Software Development Cost Not Placed in Service [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Remaining Useful Life | '3 years | ' |
Finite-Lived Intangible Assets, Gross | 16,260 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | ' |
Finite-Lived Intangible Assets, Net, Total | $16,260 | ' |
INTANGIBLE_ASSETS_Details_Text
INTANGIBLE ASSETS (Details Textual) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||
Jul. 31, 2014 | Jul. 31, 2013 | 24-May-14 | Jul. 31, 2014 | Jul. 31, 2013 | 24-May-14 | Jul. 31, 2014 | Jul. 31, 2014 | |
Executive Officer [Member] | Website [Member] | Website [Member] | ReachFactor, Inc [Member] | ReachFactor, Inc [Member] | ReachFactor, Inc [Member] | |||
Maximum [Member] | ||||||||
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '4 years | ' | ' | '3 years | ' | ' | ' | ' |
Amortization of Intangible Assets | $1,263,877 | $1,109,873 | ' | $1,263,877 | $1,109,873 | ' | ' | ' |
Costs Incurred, Development Costs | ' | ' | ' | 563,037 | ' | ' | ' | ' |
Liabilities Assumed | ' | ' | ' | ' | ' | ' | ' | 25,000 |
Stock Repurchased During Period, Shares | ' | ' | ' | ' | ' | 2,000,000 | ' | ' |
Sale of Stock, Price Per Share | ' | ' | ' | ' | ' | $0.15 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | ' | ' | ' | ' | ' | 600,000 | ' | ' |
Stock Issued During Period, Value, Acquisitions | ' | ' | ' | ' | ' | 300,000 | ' | ' |
Stock Issued During Period, Shares, Acquisitions | ' | ' | ' | ' | ' | 2,000,000 | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | 500,000 | ' | ' | ' | 2,000,000 | ' |
Stock Issued During Period, Value, New Issues | ' | ' | ' | ' | ' | ' | $300,000 | ' |
ACCOUNTS_PAYABLE_AND_ACCRUED_E2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) (USD $) | Jul. 31, 2014 | Oct. 31, 2013 |
Accounts Payable And Accrued Expenses [Line Items] | ' | ' |
Trade payables and accruals | $231,647 | ' |
Accrued preferred stock dividends | 875,519 | ' |
Payroll and commissions | 414,209 | ' |
Other liabilities | 196,154 | ' |
Total accounts payable and accrued expenses | $1,717,529 | $1,257,032 |
DUE_FROMTO_AFFILIATES_Details_
DUE FROM/TO AFFILIATES (Details Textual) (Parent Company [Member], USD $) | Jul. 31, 2014 |
Parent Company [Member] | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Due To Affiliate, Current | $1,295,938 |
CONVERTIBLE_NOTES_PAYABLE_Deta
CONVERTIBLE NOTES PAYABLE (Details Textual) (USD $) | 9 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Short-term Debt [Line Items] | ' | ' |
Debt Conversion, Converted Instrument, Amount | $4,809,308 | $0 |
Debt Conversion One [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued | 1,366,666 | ' |
Debt Instrument, Convertible, Conversion Price | $0.15 | ' |
Debt Conversion, Converted Instrument, Amount | 205,000 | ' |
Debt Conversion Two [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued | 100,000 | ' |
Debt Instrument, Convertible, Conversion Price | $0.15 | ' |
Debt Conversion, Converted Instrument, Amount | 15,000 | ' |
Long-term Debt, Gross | $60,000 | ' |
LOANS_PAYABLE_Details
LOANS PAYABLE (Details) (USD $) | Jul. 31, 2014 | Oct. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Total Loans payable | $170,000 | $191,214 |
Non-Related Third Party Investors [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total Loans payable | 170,000 | ' |
Loans Payable [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total Loans payable | $0 | ' |
LOANS_PAYABLE_Details_Textual
LOANS PAYABLE (Details Textual) (USD $) | 9 Months Ended |
Jul. 31, 2014 | |
Debt Instrument [Line Items] | ' |
Debt Instrument, Periodic Payment, Principal | $21,214 |
Interest Expense, Debt | $1,314 |
STOCKHOLDERS_EQUITY_Details_Te
STOCKHOLDERS' EQUITY (Details Textual) (USD $) | 9 Months Ended | |||
Jul. 31, 2014 | Jul. 31, 2013 | 5-May-14 | Oct. 31, 2013 | |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Number of Shares Designated | 250,000,000 | ' | ' | ' |
Common Stock, Shares Authorized | 125,000,000 | ' | ' | 125,000,000 |
Common Stock, Par or Stated Value Per Share | $0.00 | ' | ' | $0.00 |
Stock Issued During Period, Shares, Issued for Services | 620,830 | ' | ' | ' |
Preferred stock dividend accruals | $875,519 | ' | ' | ' |
Warrants Issued | 3,079,056 | ' | ' | ' |
Proceeds from Issuance of Warrants | 842.668 | ' | ' | ' |
Warrants Issued for Services | 235,780 | ' | ' | ' |
Proceeds from Issuance of Warrants for Services | 773,025 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 0.10% | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 0.14% | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 318.89% | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 611.08% | ' | ' | ' |
Class of Warrant or Right, Outstanding | 2,975,111 | ' | ' | ' |
Common Stock issued Upon Warrants Execution | 2,975,111 | ' | ' | ' |
Proceeds From Issuance Of Common Stock and Warrants | 666,520 | ' | ' | ' |
Weighted Average Remaining Contractual Life (Years) | '6 months 7 days | ' | ' | ' |
Debt Conversion, Converted Instrument, Amount | 4,809,308 | 0 | ' | ' |
Proceeds from Warrant Exercises | 666,520 | 0 | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | ' | $0.18 | ' |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 2,000,000 | ' | ' | ' |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 300,000 | ' | ' | ' |
ReachFactor, Inc [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | 2,000,000 | ' | ' | ' |
Stock Issued During Period, Value, New Issues | 300,000 | ' | ' | ' |
Consulting Fee [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Common Stock issued Upon Warrants Execution | 70,789 | ' | ' | ' |
Number Of Warrants Excercised | 70,879 | ' | ' | ' |
Proceeds from Warrant Exercises | 12,758 | ' | ' | ' |
Debt Conversion One [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued | 1,366,666 | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price | $0.15 | ' | ' | ' |
Debt Conversion, Converted Instrument, Amount | 205,000 | ' | ' | ' |
Debt Conversion Two [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued | 100,000 | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price | $0.15 | ' | ' | ' |
Debt Conversion, Converted Instrument, Amount | 15,000 | ' | ' | ' |
Long-term Debt, Gross | 60,000 | ' | ' | ' |
Next 1 Interactive Inc [Member] | Promissory Note [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Conversion of Stock, Amount Issued | 80,000 | ' | ' | ' |
Conversion of Stock, Shares Issued | 1,600,000 | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Warrants Issued Exercise Price | $1 | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $1.25 | ' | $1.25 | ' |
Maximum [Member] | ReachFactor, Inc [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Liabilities Assumed | 25,000 | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Warrants Issued Exercise Price | $0.05 | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.18 | ' | $1 | ' |
Series A Preferred Stock [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Preferred Stock, Shares Excluding Designated | 100,000,000 | ' | ' | ' |
Preferred Stock, Par or Stated Value Per Share | $0.00 | ' | ' | $0.00 |
Stock Available to be Designated | 25,000,000 | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | 3,950,379 | ' | ' | ' |
Preferred Stock, Shares Issued | 94,009,762 | ' | ' | 94,009,762 |
Preferred Stock, Shares Outstanding | 94,009,762 | ' | ' | 94,009,762 |
Preferred Stock, Dividend Rate, Percentage | 10.00% | ' | ' | ' |
Series B Preferred Stock [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Conversion of Stock, Amount Issued | 453,250 | 44,250 | ' | ' |
Conversion of Stock, Shares Issued | 9,065,000 | 885,000 | ' | ' |
Series B Preferred Stock [Member] | Next 1 Interactive Inc [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Conversion of Stock, Amount Issued | 453,250 | ' | ' | ' |
Conversion of Stock, Shares Issued | 9,065,000 | ' | ' | ' |
Series D Preferred Stock [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Conversion of Stock, Amount Issued | 133,225 | 1,860,686 | ' | ' |
Conversion of Stock, Shares Issued | 888,078 | 14,334,942 | ' | ' |
Series D Preferred Stock [Member] | Next 1 Interactive Inc [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Conversion of Stock, Amount Issued | 133,225 | ' | ' | ' |
Conversion of Stock, Shares Issued | 888,078 | ' | ' | ' |
Series A Convertible Preferred Stock [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Common Stock, Par or Stated Value Per Share | $1 | ' | ' | ' |
Warrant [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | 12,000,000 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ' | ' | ' |
Conversion of Stock, Shares Issued | 9,000 | 0 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 17,099,257 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $0.57 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 15,323,836 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | 3,045,990 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations | 3,430,500 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | 63,921 | ' | ' | ' |
Stock Issued During Period, Value, New Issues | 4,809,308 | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.50 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.35% | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 324.34% | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Other | 10,000 | ' | ' | ' |
Warrant [Member] | Next 1 Interactive Inc [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '1 year | ' | ' | ' |
Common Stock [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Conversion of Stock, Amount Issued | $13,500 | $0 | ' | ' |
Conversion of Stock, Shares Issued | 27,000 | 0 | ' | ' |
Common Stock [Member] | Maximum [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $1 | ' | ' | ' |
Common Stock [Member] | Minimum [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.18 | ' | ' | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Textual) (USD $) | 9 Months Ended |
Jul. 31, 2014 | |
Related Party Transaction [Line Items] | ' |
Payments for Rent | $800 |
SUBSEQUENT_EVENTS_Details_Text
SUBSEQUENT EVENTS (Details Textual) (USD $) | Jul. 31, 2014 | Oct. 31, 2013 | Aug. 22, 2014 | Jul. 31, 2014 | Oct. 31, 2013 | Aug. 22, 2014 | Sep. 30, 2014 |
Subsequent Event [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | |||
Subsequent Event [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized | 125,000,000 | 125,000,000 | 250,000,000 | ' | ' | ' | ' |
Preferred Stock, Shares Authorized | ' | ' | ' | 100,000,000 | 100,000,000 | 120,000,000 | ' |
Common Stock, Par or Stated Value Per Share | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' |
Preferred Stock, Par or Stated Value Per Share | ' | ' | ' | $0.00 | $0.00 | ' | ' |
Stock Holder Outstanding Voting Percentage | ' | ' | 55.50% | ' | ' | 98.90% | ' |
Consideration of Future Issuance of Shares | ' | ' | ' | ' | ' | ' | $75,000 |