Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jan. 31, 2016 | Mar. 13, 2016 | |
Entity Registrant Name | REALBIZ MEDIA GROUP, INC | |
Entity Central Index Key | 1,430,523 | |
Trading Symbol | rbiz | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 149,416,379 | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jan. 31, 2016 | Oct. 31, 2015 |
Series A Preferred Stock [Member] | ||
Stockholders' Deficit | ||
Series A convertible preferred stock, $.001 par value; 120,000,000 authorized and 45,188,600 and 46,188,600 shares issued and outstanding at January 31,2016 and October 31, 2015, respectively | $ 45,189 | $ 46,189 |
Series B Preferred Stock [Member] | ||
Stockholders' Deficit | ||
Series A convertible preferred stock, $.001 par value; 120,000,000 authorized and 45,188,600 and 46,188,600 shares issued and outstanding at January 31,2016 and October 31, 2015, respectively | ||
Series C Preferred Stock [Member] | ||
Stockholders' Deficit | ||
Series A convertible preferred stock, $.001 par value; 120,000,000 authorized and 45,188,600 and 46,188,600 shares issued and outstanding at January 31,2016 and October 31, 2015, respectively | $ 35 | $ 35 |
Cash | 299,900 | 307,774 |
Accounts receivable, net of allowance for doubtful accounts | 52,731 | 68,152 |
Due from former officer | 14,940 | 87,500 |
Prepaid expenses | 3,300 | 3,300 |
Total current assets | 370,871 | 466,726 |
Property and equipment, net | $ 28,601 | $ 34,747 |
Due from affiliates, net of allowance | ||
Restricted cash | $ 27,977 | |
Total assets | 427,449 | $ 501,473 |
Accounts payable and accrued expenses | 683,339 | 743,659 |
Deferred revenue | $ 16,994 | 26,494 |
Derivative liabilities | 628,762 | |
Loans payable | $ 170,000 | 220,000 |
Total current liabilities | 870,333 | 1,618,915 |
Convertible notes payable, net of discount of $376,238 and $875,656, respectively | 753,762 | 690,210 |
Total liabilities | 1,624,095 | 2,309,125 |
Common stock, $.001 par value; 250,000,000 authorized and 149,994,879 shares issued and outstanding at January 31, 2016 and 133,687,500 shares issued and outstanding at October 31, 2015, respectively | 149,995 | 133,688 |
Additional paid-in-capital | 19,786,596 | 19,047,754 |
Accumulated other comprehensive income (loss) | (54,544) | (60,626) |
Accumulated deficit | (20,936,536) | (20,796,181) |
Total stockholders' (deficit) attributable to Realbiz Media Group, Inc. | (1,009,265) | (1,629,141) |
Non-controlling interest | (187,381) | (178,512) |
Total stockholders’ deficit | (1,196,646) | (1,807,652) |
Total liabilities and stockholders' deficit | $ 427,449 | $ 501,473 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Jan. 31, 2016 | Oct. 31, 2015 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Convertible preferred stock, shares issued (in shares) | 45,188,600 | 46,188,600 |
Convertible preferred stock, shares outstanding (in shares) | 45,188,600 | 46,188,600 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Convertible preferred stock, shares issued (in shares) | 0 | 0 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Convertible preferred stock, shares issued (in shares) | 35,000 | 35,000 |
Convertible preferred stock, shares outstanding (in shares) | 35,000 | 35,000 |
Debt Discount | $ 376,238 | $ 875,656 |
Preferred stock, par value (in dollars per share) | $ 0.001 | |
Convertible preferred stock, shares authorized (in shares) | 320,000,000 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 149,994,879 | 133,687,500 |
Common stock, shares outstanding (in shares) | 149,994,879 | 133,687,500 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Revenues | ||
Real estate media revenue | $ 273,924 | $ 292,656 |
Operating expenses | ||
Technology and development | 45,110 | 305,257 |
Salaries and benefits | 233,041 | 331,717 |
Selling and promotions expense | 5,146 | 39,095 |
General and administrative | 140,628 | 1,007,960 |
Total operating expenses | 423,925 | 1,684,029 |
Operating loss | (150,001) | (1,391,373) |
Other income (expense) | ||
Interest expense | (160,625) | (49,385) |
Gain (loss) on change on fair value of derivatives | 628,762 | (266,410) |
Gain (loss )on legal settlement of accounts payable and convertible debt | (470,727) | 32,483 |
Foreign exchange gain | 9,450 | 9,613 |
Total other income (expense) | 6,860 | (273,699) |
Net loss | (143,141) | $ (1,665,072) |
Net loss attributable to non-controlling interest | 8,869 | |
Net loss attributable to Realbiz Media Group, Inc. | $ (134,272) | $ (1,665,072) |
Weighted average number of shares outstanding (in shares) | 143,349,582 | 87,598,484 |
Basic and diluted net loss per share (in dollars per share) | $ 0 | $ (0.02) |
Comprehensive income (loss): | ||
Unrealized gain (loss) on currency translation adjustment | $ 6,082 | $ 8,063 |
Comprehensive loss | $ (137,059) | $ (1,657,009) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Subscription Agreements [Member] | ||
Supplemental disclosure of non-cash investing and financing activity: | ||
Value | $ 0 | $ 30,000 |
Shares (in shares) | 0 | 100,000 |
Preferred Series B Shares Converted To Common Stock [Member] | ||
Supplemental disclosure of non-cash investing and financing activity: | ||
Value | $ 0 | $ 45,000 |
Shares (in shares) | 0 | 900,000 |
Preferred Series C Shares Converted To Common Stock [Member] | ||
Supplemental disclosure of non-cash investing and financing activity: | ||
Value | $ 0 | $ 77,000 |
Shares (in shares) | 0 | 770,000 |
Preferred Series D Shares Converted To Common Stock [Member] | ||
Supplemental disclosure of non-cash investing and financing activity: | ||
Value | $ 65,000 | $ 82,500 |
Shares (in shares) | 1,000,000 | 549,945 |
Series B Shares Issued for Settlement of Prior Years Proceeds [Member] | ||
Supplemental disclosure of non-cash investing and financing activity: | ||
Value | $ 0 | $ 100,000 |
Series B Shares Issued for Monaker Group, Inc. Debt Settled [Member] | ||
Supplemental disclosure of non-cash investing and financing activity: | ||
Value | $ 0 | $ 30,000 |
Series B Shares Issued for Settlement of Prior Year's Proceeds and Monaker Group, Inc. Debt [Member] | ||
Supplemental disclosure of non-cash investing and financing activity: | ||
Shares (in shares) | 0 | 13,000 |
Loans Payable Through Issuance of Common Stock [Member] | ||
Supplemental disclosure of non-cash investing and financing activity: | ||
Value | $ 50,000 | $ 0 |
Shares (in shares) | 1,000,000 | 0 |
Due from Former Officer for Retirement of Common Stock [Member] | ||
Supplemental disclosure of non-cash investing and financing activity: | ||
Value | $ 50,000 | $ 0 |
Shares (in shares) | 1,000,000 | 0 |
Warrant [Member] | ||
Supplemental disclosure of non-cash investing and financing activity: | ||
Shares (in shares) | 0 | 100,000 |
Net loss | $ (143,141) | $ (1,665,072) |
(Gain) loss on legal settlement of accounts payable and convertible debt | 470,727 | (32,483) |
Amortization and depreciation | 6,146 | 514,524 |
Amortization of debt discount | 92,825 | 33,199 |
Loss ( Gain) on change in fair value of derivative liabilities | (628,762) | 266,410 |
Stock based consulting fees | 32,000 | 173,865 |
Decrease in accounts receivable | 15,421 | $ 25,071 |
Common stock issued for interest | 42,050 | |
Increase in restricted cash | (27,977) | |
Decrease in due from former officer | 22,560 | |
Increase (decrease) in accounts payable and accrued expenses | $ (60,223) | $ 5,340 |
Decrease in due to/from affiliates | (176,007) | |
Decrease in deferred revenue | $ (9,500) | (9,962) |
Net cash used in operating activities | $ (187,874) | (865,115) |
Payments towards software developments costs | (31,810) | |
Net cash used in investing activities | (31,810) | |
Proceeds from convertible promissory notes | $ 935,000 | |
Payments applied to convertible promissory notes | $ (500,000) | |
Proceeds from the sale of common stock and warrants | 680,000 | $ 75,000 |
Net cash provided by financing activities | $ 180,000 | 1,010,000 |
Effect of exchange rate changes on cash | 8,063 | |
Net increase (decrease) in cash | $ (7,874) | 121,138 |
Cash at beginning of period | 307,774 | 20,066 |
Cash at end of period | 299,900 | 141,204 |
Cash paid for interest | $ 25,650 | $ 0 |
Note 1 - Nature of Business and
Note 1 - Nature of Business and Basis of Presentation | 3 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
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 service fees (video creation and production and website hosting (ReachFactor)) and product sales (Nestbuilder Agent 2.0 and Microvideo app). We were formed through the merging of three divisions: (i) our fully licensed real estate division (formerly known as Webdigs); (ii) our TV media contracts (Home Preview Channel /Extraordinary Vacation Homes) division; and (iii) our Real Estate Virtual Tour and Media group (Realbiz 360). The assets of these divisions were used to create a new suite of real estate products and services that create stickiness through the utilization of video, social media and loyalty programs. At the core of our programs is our proprietary video creation technology which allows for an automated conversion of data (text and pictures of home listings) to a video with voice and music. We provide video search, storage and marketing capabilities on multiple platform dynamics for web, mobile, and TV. Once a home, personal or community video is created using our proprietary technology, it can be published to social media, email or distributed to multiple real estate websites, broadband or television for consumer viewing. Products and Services We currently offer the following products and services: Enterprise Video Production Nestbuilder Agent 2.0 (formerly PowerAgent) : The Virtual Tour (VT) and Microvideo App (MVA) ReachFactor NestBuilder Website Portal Nestbuilder Agent Ezflix Mobile App way to personalize their listing videos with entertaining local relevant content. This application is available in both Web and Mobile, was initially launched in both the Android and iOS versions in January and February 2015. This platform as it evolves will combine our VT (Virtual Tour) and MVA (Microvideo App) platform into one solution and distribute to multiple partners and resellers including Photographer and Videographer service providers’ network. This product integration has been substantially upgraded during 2015 and will integrate with our Nestbuilder Agent 2.0 product released in January 2016. 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 unaudited consolidated financial statements should be read in conjunction with the Company’s audited financial statements for the year ended October 31, 2015, contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 18, 2016. The results of operations for the three months ended January 31, 2016, are not necessarily indicative of results to be expected for any other interim period or the fiscal year ending October 31, 2016. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of unaudited 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 unaudited 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 January 31, 2016 and October 31, 2015. 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. The allowance for doubtful accounts at January 31, 2016 and October 31, 2015, respectively is $-0-. 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. 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. During the three months ended January 31, 2016, 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 "350-40" Internal Use Software, 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 and is included in operating expenses in the accompanying statement of operations. During the three months ended January 31, 2016, the Company did not have any development projects in progress and, accordingly, did not capitalize any software costs. All the technology costs incurred during the quarter were related to maintenance activities and were charged to technology and development expenses in the statement of operations. 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. During the year ended October 31, 2015, the company recorded an impairment charge in the amount of $1,802,106 which represented the full unamortized value of the capitalized website development costs and other intangible assets at that time. The Company incurred amortization expense related to website development costs and other intangible assets of -0-and $509,199 for the three months ended January 31, 2016 and 2015, respectively. This amortization is included in technology and development expenses and general and administrative expenses in the accompanying statement of operations. Derivative Instruments The Company enters into financing arrangements that consist of freestanding derivative instruments or are hybrid instruments that contain embedded derivative features. The Company accounts for these arrangements in accordance with Accounting Standards Codification topic 815, Accounting for Derivative Instruments and Hedging Activities (“ASC 815”) as well as related interpretations of this standard. In accordance with this standard, derivative instruments are recognized as either assets or liabilities in the balance sheet and are measured at fair values with gains or losses recognized in earnings. Embedded derivatives that are not clearly and closely related to the host contract are bifurcated and are recognized at fair value with changes in fair value recognized as either a gain or loss in earnings. The Company determines the fair value of derivative instruments and hybrid instruments based on available market data using appropriate valuation models, considering all of the rights and obligations of each instrument. The Company estimates fair values of derivative financial instruments using various techniques (and combinations thereof) that are considered consistent with the objective measuring fair values. In selecting the appropriate technique, the Company considers, among other factors, the nature of the instrument, the market risks that it embodies and the expected means of settlement. For less complex derivative instruments, such as freestanding warrants, the Company generally uses the Black-Scholes model, adjusted for the effect of dilution, because it embodies all of the requisite assumptions (including trading volatility, estimated terms, dilution and risk free rates) necessary to fair value these instruments. Estimating fair values of derivative financial instruments requires the development of significant and subjective estimates that may, and are likely to, change over the duration of the instrument with related changes in internal and external market factors. In addition, option-based techniques (such as Black-Scholes model) are highly volatile and sensitive to changes in the trading market price of our common stock. Since derivative financial instruments are initially and subsequently carried at fair values, our income (expense) going forward will reflect the volatility in these estimates and assumption changes. Under the terms of the new accounting standard, increases in the trading price of the Company’s common stock and increases in fair value during a given financial quarter result in the application of non-cash derivative expense. Conversely, decreases in the trading price of the Company’s common stock and decreases in trading fair value during a given financial quarter result in the application of non-cash derivative income. Based upon ASC 815-25 the Company has adopted a sequencing approach regarding the application of ASC 815-40 to its outstanding convertible debentures. Pursuant to the sequencing approach, the Company evaluates its contracts based upon earliest issuance date. 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 unaudited 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 recognizes revenue when all of the following criteria are met: (1) persuasive evidence of an arrangement exits; (2) delivery has occurred or services have been rendered; (3) the Company's price to its customer is fixed or determinable and (4) collectability is reasonably assured. 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. Technology and Development Costs to research and develop our products are expensed as incurred. These costs consist of primarily of technology and development related expenses including third party contractor fees and technology software services. Technology and development also includes amortization of capitalized costs of the Nestbuilder website associated with the development of our marketplace. The amortization of the Nestbuilder website for the three months ending January 31, 2016 and 2015 is -0- and $127,272, respectively. 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. The company has not incurred any advertising expenses for the three months ended January 31, 2016 and 2015. 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 gain of $0 and $9,613 for three months ended January 31, 2016 and 2015, respectively. The foreign currency exchange gains and losses are included as a component of other (income) expense, net, in the accompanying Unaudited Consolidated Statements of Operations. For the three months ended January 31, 2016 and 2015, the change in accumulated comprehensive income was $6,082 and $8,063, respectively Foreign Currency and Other Comprehensive Income (Loss) (continued) The exchange rate adopted for the foreign exchange transactions are the rates of exchange as quoted on an internet website. Translation of amount from Canadian dollars into United States dollars was made at the following exchange rates for the respective periods: ● As of January 31, 2016 - Canadian dollar $0.71582 to US $1.00 ● For the three months ended January 31, 2016 - Canadian dollar $0.87365 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 unaudited 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: January 31, 6 Series A convertible preferred stock issued and outstanding 45,188,600 Series C convertible preferred stock issued and outstanding 35,000 Warrants to purchase common stock issued, outstanding and exercisable 16,355,000 Shares on convertible promissory notes 11,300,000 72,878,635 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 unaudited 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 FASB issued an accounting standard update on revenue recognition that will be applied to all contracts with customers. The update requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This guidance will be required to be applied on a retrospective basis, using one of two methodologies, and will be effective for annual reporting periods beginning after December 15, 2016, with early application not being permitted. The Company is currently evaluating the impact that this guidance will have on its financial position and results of operations. In August 2014, the FASB issued an accounting standard update which provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The update requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. It also requires management to provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. This guidance will be required for annual reporting periods ending after December 15, 2016, and interim reporting periods thereafter, with early application permitted. The Company is currently evaluating the impact that this guidance will have on its financial position and results of operations. |
Note 3 - Going Concern
Note 3 - Going Concern | 3 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Going Concern Disclosure [Text Block] | NOTE 3: GOING CONCERN The accompanying unaudited 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 loss of $143,141 for the three months ended January 31, 2016. At January 31, 2016, the Company had a working capital deficit of $499,462 and an accumulated deficit of $20,936,536. It is management’s opinion that these facts raise substantial doubt about the Company’s ability to continue as a going concern. . The unaudited 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 the Company intends to obtain additional financing to meet our cash needs, the Company may be unable to secure any additional financing on terms that are favorable or acceptable to it, if at all. |
Note 4 - Restricted Cash
Note 4 - Restricted Cash | 3 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | NOTE 4 : RESTRICTED CASH At January 31, 2016 the company posted a surety bond with the California Department of Labor in the amount of $27,977 as required in connection with an appeal of an assessment relating to an employment matter. |
Note 5 - Property and Equipment
Note 5 - Property and Equipment | 3 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 5 : PROPERTY AND EQUIPMENT At January 31, 2016, the Company's property and equipment are as follows: January 31, 201 6 Remaining Accumulated Net Carrying Useful Life Cost Depreciation Value Computer equipment 1.5 Years $ 82,719 $ 54,118 $ 28,601 The Company has recorded $6,146 and $5,415 of depreciation expense for the three months ended January 31, 2016 and 2015, respectively. |
Note 6 - Accounts Payable and A
Note 6 - Accounts Payable and Accrued Expenses | 3 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 6: ACCOUNTS PAYABLE AND ACCRUED EXPENSES At January 31, 2016, the Company’s accounts payable and accrued expenses are as follows: January 31, 201 6 Trade payables $ 395,539 Accrued interest payable 67,800 Accrued payroll and commissions 220,000 Total accounts payable and accrued expenses $ 683,339 |
Note 7 - Due From or To Affilia
Note 7 - Due From or To Affiliates | 3 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
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 and various debt obligation conversions to/from our former parent Company, Monaker Group, Inc. As a result of these transactions the Company is due $1,287,517 as of January 31, 2016 and October 31, 2015, respectively. Management has elected to record an allowance against the entire amount due from affiliate. The allowance was required due to the uncertainty of the collectability of the outstanding balance. |
Note 8 - Derivative Liabilities
Note 8 - Derivative Liabilities | 3 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Derivatives and Fair Value [Text Block] | NOTE 8 : D ERIVATIVE LIABILITIES The following table sets forth a summary of change in fair value of our derivative liabilities for the years ended October 31, 2015 and 2014: Balance 10/31/2015 $ 628,762 Elimination of deferred liability due to payoff of convertible debenture (628,762 ) Balance 1/31/2016 $ - |
Note 9 - Convertible Notes Paya
Note 9 - Convertible Notes Payable | 3 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Convertible Notes Payable[Text Block] | NOTE 9 : CONVERTIBLE NOTES PAYABLE In December 2015, the company consummated a settlement with Himmil Investments Ltd. pursuant to which we redeemed our outstanding 7.5% convertible promissory note issued to Himmil and cancellation of their common stock purchase warrants for $500,000. At January 31, 2016, the company had convertible notes payable with principle outstanding balance of $1,130,000. The note matures on December 31, 2016 and bears interest at the rate of 24% which is payable quarterly and can be paid to the noteholder at their election in a combination of cash and common stock. The noteholders can elect to receive their interest payments in all common stock or a combination of common stock at 12% per annum based upon $0.10 (ten) cents per share and cash at 12% per annum.. The noteholders, at their option have the right, but not the obligation, at any time and from time to time, to convert all or any portion of the principal and interest into fully paid and non-assessable shares of Company common stock at the conversion price of $0.10 per share. |
Note 10 - Loans Payable
Note 10 - Loans Payable | 3 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 10 : LOANS PAYABLE During the three months ended January 31, 2016, the Company issued its Chairman 1,000,000 common shares with a value of $50,000 in exchange for the cancellation of the existing loan payable at that time. There was no activity for the three months ended January 31, 2016 for the non-related third party investors and the remaining principal balance is $170,000. |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity | 3 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 11 : STOCKHOLDERS’ EQUITY On July 31, 2014, the Board and the holders of a majority of the voting power of our shareholders approved an amendment to our articles of incorporation to increase our authorized shares of common stock to 250,000,000 from 125,000,000 and increased the Company's Series A Convertible Preferred Stock to 120,000,000 from 100,000,000. Additionally, on July 31, 2014, the Board designated the terms of Series B Convertible Preferred Stock and 1,000,000 shares were authorized. Additionally, on August 6, 2015, the Board designated the terms of Series C Convertible Preferred Stock and 1,000,000 shares were authorized. The total number of shares of all classes of stock that the Company shall have the authority to issue is 570,000,000 shares consisting of 250,000,000 shares of common stock with a $0.001 par value per shares; of which 149,994,879 are outstanding as of the date of this report and 320,000,000 shares of preferred stock, par value $0.001 per share of which (A) 120,000,000 shares have been designated as Series A Convertible Preferred of which 45,188,600 are outstanding as of the date of this report (B) 1,000,000 shares have been designated as Series B Convertible Preferred Stock, of which no shares are outstanding as of the date of this report and (C) 1,000,000 have been designated as Series C Convertible Preferred Stock, of which 35,000 shares are outstanding as of the date of this report. Common Stock During the three months ended January 31, 2016, the Company: On November 19, 2015, the Company agreed to issue 1 million shares of common stock valued at $0.05 per share (based on the quoted market price on that date) to a company controlled by its Chairman (Don Monaco) in consideration of his agreement to cancel and extinguish a 0%, $50,000 promissory note issued to him on August 29, 2015. On November 30, 2015, the Company sold 13,600,000 units (“Units”) at a price of $0.05 per Unit for gross proceeds of $680,000. Each Unit consists of 1 share of common stock and a warrant to purchase 1 share of common stock requiring the issuance of 13,600,000 shares of common stock and 1-year warrants to purchase 13,600,000 shares of our common stock with an exercise price of $0.05 per share. The Company used $500,000 of these proceeds as the final payment required under our Settlement Agreement and Release with Himmil Investments, Ltd. including repayment in full of its outstanding 7.5% $500,000 convertible promissory note issued to Himmil Investments Ltd. A company controlled by Don Monaco, our Chairman on our board of directors, purchased 6,000,000 Units for $300,000 and Thomas Grbelja, our Chief Financial Officer purchased 200,000 Units for $10,000. On December 1, 2015, our Chief Executive Officer (Alex Aliksanyan) converted 30,000 shares of Monaker Group Inc. Series D Preferred Stock into 1 million shares of our common stock pursuant to the terms of the Monaker Group, Inc. Series D Preferred Certificate of Designation. In conjunction with this transaction, On December 1, 2015, the Company issued 421,500 shares of its common stock valued at $42,150 as payment for accrued interest on certain convertible promissory notes as requested by the note holders in accordance with contractual terms. The Company did not receive any proceeds for the issuance of these shares. . On December 10, 2015, a former employee returned 1,000,000 shares of its common stock with a value of $50,000 to the Company to resolve an outstanding dispute. These shares were intitially returned to treasury and cancelled on March 7, 2016. On January 20, 2016, the Company issued 800,000 shares of common stock to a third-party consultant in consideration of professional services rendered. The market value of these shares was based on the closing price (0.04) on the date of issuance which was approximately $32,000 and included as a component of general and administrative expenses. Common Stock Warrants The following table sets forth common share purchase warrants outstanding as of January 31, 2016: Warrants Weighted Average Exercise Price Intrinsic Value Outstanding, October 31, 2015 4,980,000 $ 0.12 $ 0.00 Warrants granted and issued 13,600,000 $ 0.05 $ 0.00 Warrants exercised/forfeited (2,225,000 ) $ (0.14 ) $ 0.00 Outstanding, January 31, 2016 16,355,000 $ 0.12 $ 0.00 Common stock issuable upon exercise of warrants 16,355,000 $ 0.12 $ 0.00 Common Stock Issuable Upon Exercise of Warrants Outstanding Common Stock Issuable Upon Warrants Exercisable Number Weighted Weighted Number Weighted Range of Outstanding Average Average Exercisable Average Exercise At January 31, Remaining Exercise at October Exercise Prices 2016 Contractual Price 31, 2015 Price Life (Years) $ 0.05 13,600,000 0.83 $ 0.05 13,600,000 $ 0.05 $ 0.10 2,455,000 2.87 $ 0.10 2,455,000 $ 0.10 $ 0.17 300,000 0.72 $ 0.17 300,000 $ 0.17 16,355,000 $ 0.06 16,355,000 $ 0.06 Convertible Preferred Stock Series A On October 14, 2014, the Company filed a certificate of amendment pursuant to the July 31st, 2014 Board of Directors approval to increase the Preferred A shares from 100,000,000 shares to 120,000,000 shares. As of January 31, 2016, the Company had 45,188,600 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 accumulate 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 of a $1 per share by the Conversion Price then in effect. The conversion price for the Series A Stock is equal to $1.00 per share. Each holder of Series A stock shall be entitled to one vote for each whole share of common stock that would be issuable upon conversion of such share on the record date for determining eligibility to participate in the action being taken. 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"). In September 2015, the Company entered into an agreement with the holders of our Series A Preferred Stock under which they agreed to waive and cancel any further dividends owing on the Series A Preferred from and after May 1, 2015 in exchange for our agreement to pay all accrued dividends through April 30, 2015. During the three months ended January 31, 2016, the Company recorded the following activity with respect to its Series A Convertible Preferred Stock: On December 1, 2015, the Company retired 1,000,000 of its Series A Preferred shares held by Monaker Group Inc., in accordance with the original securities and purchase agreement of October 2012. This was based upon the issuances of 1 million RealBiz common shares issued for conversion of 30,000 shares of Monaker Group,Inc. Series D preferred stock on such date. Convertible Preferred Stock Series B On July 31, 2014, the Company's Board of Directors approved the creation of a new Series B Preferred stock and on October 14, 2014 a certificate of designation was filed with the state of Delaware designating 1,000,000 shares with a par value of $0.001, a stated value of $5.00 per share and convertible into the Company's common stock at $0.05 per share. As of January 31, 2015, the Company had 26,000 shares of Convertible Preferred Stock Series B issued and outstanding. The Series B Preferred stock will bear dividends at a rate of 10% per annum and shall accrue on the stated value of such shares of the Series B Stock. Dividends accrue whether or not they have been declared by the Board of Directors. At the election of the Company, it may satisfy its obligations hereunder to pay dividends on the Series B stock by issuing shares of common stock to the holders of Series B stock on a uniform and prorated basis. Each share of Series B 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 B Stock is equal to $0.05 per share. Each holder of Series B stock shall be entitled to the number of votes equal to two hundred (200) votes for each shares of Series B stock held by them. 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 B 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 B Stock or to the Common Stock, an amount for each share of Series B Stock equal to all accrued and unpaid Preferred Dividends plus the Stated Value, as adjusted (the "Series B Liquidation Amount"). There were no Series B Preferred stock outstanding at January 31, 2016 and October 31, 2015. Convertible Preferred Stock Series C Pursuant to authority granted by our certificate of incorporation and applicable state law, our Board of Directors, without any action or approval by our stockholders, may designate and issue shares in such classes or series (including other classes or series of preferred stock) as it deems appropriate and establish the rights, preferences and privileges of such shares, including dividends, liquidation and voting rights. The rights of holders of other classes or series of capital stock, including preferred stock that may be issued could be superior to the rights of the shares of common stock offered hereby. The designation and issuance of shares of capital stock having preferential rights could adversely affect other rights appurtenant to the shares of our common stock. Finally, any issuances of additional capital stock (common or preferred) will dilute the percentage of ownership interest of our stockholders and may dilute the per-share book value of the Company. Each share of our series C preferred stock is convertible into that number of shares of shares of common stock determined by dividing (i) the stated value ($5.00) by (ii) the conversion price then in effect ($0.05). For example, our Series C Preferred contain voting rights which provide each share of Series C Preferred Stock with 100 votes for each shares of common stock into which the Series C Preferred Stock is convertible. Accordingly, our currently outstanding 35,000 shares of Series C Preferred Stock (which are convertible into 3,500,000 shares) are entitled to 350,000,000 votes on any matter presented for a vote to our common stockholders. This has resulted in the holders of our Series C Preferred Stock having voting majority voting control of our corporation. There were 35,000 shares of Series C Preferred Stock outstanding on January 31, 2016. |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 3 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE 1 2 : RELATED PARTY TRANSACTIONS Equity transactions with the Company's former parent are described in Note 10. On November 19, 2015, the Company agreed to issue 1 million shares of common stock valued at $0.05 per share to a company controlled by its Chairman (Don Monaco) in consideration of his agreement to cancel and extinguish a 0%, $50,000 promissory note issued to him on August 29, 2015. On November 30, 2015, a company controlled by the Company’s Chairman (Don Monaco) purchased 6 million units at a price of $0.05 per unit for an aggregate purchase price of $300,000. Each unit consisted of 1 share of common stock and a 1-year warrant to purchase 1 share of common at an exercise price of $0.05 per share. This resulted in the issuance of 6 million shares of common stock and a 1-year warrant to purchase 6 million shares of our common stock at an exercise price of $0.05 per share. In addition, Thomas Grbelja, our Chief Financial Officer purchased 200,000 Units for $10,000. On December 1, 2015, the Company’s Chief Executive Officer (Alex Aliksanyan) converted 30,000 shares of Monaker Group Inc. Series D Preferred Stock into 1 million shares of our common stock pursuant to the terms of the Series D Preferred. Mr. Aliksanyan originally received these preferred shares in consideration of his sale of assets of Stingy Travel to Monaker Group in February 2015. Mr. Aliksanyan became an officer and director upon closing of this transaction in February 2015. |
Note 13 - Contingencies
Note 13 - Contingencies | 3 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | NOTE 1 3 : CONTINGENCIES On August 17, 2015, the Company filed a Complaint in the Superior Court of the State of California, in San Diego County, California, against former employees Steven Marques, Sherry Marques and Sean Herschmiller as well as Ken Marques, Amozaio LLC, Mike O’Donnell, Bobbie Ayers, Showoff.com, Inc., Philip Bliss, Tom Klawsuc, and Perceptible Inc. (“Defendants”). The Complaint further alleges that the Defendants misappropriated confidential business information and proprietary and confidential trade secrets of the Company in setting up a rival business utilizing the Company’s proprietary technology and current customers. The Complaint further alleges that the former employees Steven Marques, Sherry Marques and Sean Herschmiller breached their positions of trust and confidence and their duties of loyalty to the Company by using their positions with the company and information acquired in those positions to set up a business in direct competition with the Company, and the remaining Defendant’s conspired with the Company’s former employees to misappropriate and use the Company’s confidential business information and solicit and attempt to steal clients from the Company. The Complaint seeks, among other things, (i) general and special damages in an amount to be proven at trial; (ii) punitive and exemplary damages in an amount sufficient to punish and deter such conduct; and (iii) a temporary restraining order and preliminary and permanent injunctions enjoining and retraining the Defendants from using or otherwise disclosing or distributing the Company’s property or trade secrets. At January 31, 2016 the company posted a surety bond with the California Department of Labor in the amount of $27,977 as required in connection with an appeal of an assessment relating to an employment matter. |
Note 14 - Subsequent Events
Note 14 - Subsequent Events | 3 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 1 4 : SUBSEQUENT EVENTS Effective March 1, 2016, the Company paid cash of $25,650 and issued 421,500 shares of its common stock valued at $42,150 as quarterly payments for accrued interest on certain convertible promissory notes as requested by the note holders in accordance with contractual terms. The Company did not receive any proceeds for the issuance of these shares. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of unaudited 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 unaudited 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 January 31, 2016 and October 31, 2015. |
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. The allowance for doubtful accounts at January 31, 2016 and October 31, 2015, respectively is $-0-. |
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. |
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. During the three months ended January 31, 2016, 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 "350-40" Internal Use Software, 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 and is included in operating expenses in the accompanying statement of operations. During the three months ended January 31, 2016, the Company did not have any development projects in progress and, accordingly, did not capitalize any software costs. All the technology costs incurred during the quarter were related to maintenance activities and were charged to technology and development expenses in the statement of operations. |
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. During the year ended October 31, 2015, the company recorded an impairment charge in the amount of $1,802,106 which represented the full unamortized value of the capitalized website development costs and other intangible assets at that time. The Company incurred amortization expense related to website development costs and other intangible assets of -0-and $509,199 for the three months ended January 31, 2016 and 2015, respectively. This amortization is included in technology and development expenses and general and administrative expenses in the accompanying statement of operations. |
Derivatives, Policy [Policy Text Block] | Derivative Instruments The Company enters into financing arrangements that consist of freestanding derivative instruments or are hybrid instruments that contain embedded derivative features. The Company accounts for these arrangements in accordance with Accounting Standards Codification topic 815, Accounting for Derivative Instruments and Hedging Activities (“ASC 815”) as well as related interpretations of this standard. In accordance with this standard, derivative instruments are recognized as either assets or liabilities in the balance sheet and are measured at fair values with gains or losses recognized in earnings. Embedded derivatives that are not clearly and closely related to the host contract are bifurcated and are recognized at fair value with changes in fair value recognized as either a gain or loss in earnings. The Company determines the fair value of derivative instruments and hybrid instruments based on available market data using appropriate valuation models, considering all of the rights and obligations of each instrument. The Company estimates fair values of derivative financial instruments using various techniques (and combinations thereof) that are considered consistent with the objective measuring fair values. In selecting the appropriate technique, the Company considers, among other factors, the nature of the instrument, the market risks that it embodies and the expected means of settlement. For less complex derivative instruments, such as freestanding warrants, the Company generally uses the Black-Scholes model, adjusted for the effect of dilution, because it embodies all of the requisite assumptions (including trading volatility, estimated terms, dilution and risk free rates) necessary to fair value these instruments. Estimating fair values of derivative financial instruments requires the development of significant and subjective estimates that may, and are likely to, change over the duration of the instrument with related changes in internal and external market factors. In addition, option-based techniques (such as Black-Scholes model) are highly volatile and sensitive to changes in the trading market price of our common stock. Since derivative financial instruments are initially and subsequently carried at fair values, our income (expense) going forward will reflect the volatility in these estimates and assumption changes. Under the terms of the new accounting standard, increases in the trading price of the Company’s common stock and increases in fair value during a given financial quarter result in the application of non-cash derivative expense. Conversely, decreases in the trading price of the Company’s common stock and decreases in trading fair value during a given financial quarter result in the application of non-cash derivative income. Based upon ASC 815-25 the Company has adopted a sequencing approach regarding the application of ASC 815-40 to its outstanding convertible debentures. Pursuant to the sequencing approach, the Company evaluates its contracts based upon earliest issuance date. |
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 unaudited 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 recognizes revenue when all of the following criteria are met: (1) persuasive evidence of an arrangement exits; (2) delivery has occurred or services have been rendered; (3) the Company's price to its customer is fixed or determinable and (4) collectability is reasonably assured. 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. |
Research and Development Expense, Policy [Policy Text Block] | Technology and Development Costs to research and develop our products are expensed as incurred. These costs consist of primarily of technology and development related expenses including third party contractor fees and technology software services. Technology and development also includes amortization of capitalized costs of the Nestbuilder website associated with the development of our marketplace. The amortization of the Nestbuilder website for the three months ending January 31, 2016 and 2015 is -0- and $127,272, respectively. |
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. The company has not incurred any advertising expenses for the three months ended January 31, 2016 and 2015. |
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 gain of $0 and $9,613 for three months ended January 31, 2016 and 2015, respectively. The foreign currency exchange gains and losses are included as a component of other (income) expense, net, in the accompanying Unaudited Consolidated Statements of Operations. For the three months ended January 31, 2016 and 2015, the change in accumulated comprehensive income was $6,082 and $8,063, respectively Foreign Currency and Other Comprehensive Income (Loss) (continued) The exchange rate adopted for the foreign exchange transactions are the rates of exchange as quoted on an internet website. Translation of amount from Canadian dollars into United States dollars was made at the following exchange rates for the respective periods: ? As of January 31, 2016 - Canadian dollar $0.71582 to US $1.00 ? For the three months ended January 31, 2016 - Canadian dollar $0.87365 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 unaudited 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: January 31, 6 Series A convertible preferred stock issued and outstanding 45,188,600 Series C convertible preferred stock issued and outstanding 35,000 Warrants to purchase common stock issued, outstanding and exercisable 16,355,000 Shares on convertible promissory notes 11,300,000 72,878,635 |
Concentration Risk, Credit Risk, Policy [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 unaudited 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 FASB issued an accounting standard update on revenue recognition that will be applied to all contracts with customers. The update requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This guidance will be required to be applied on a retrospective basis, using one of two methodologies, and will be effective for annual reporting periods beginning after December 15, 2016, with early application not being permitted. The Company is currently evaluating the impact that this guidance will have on its financial position and results of operations. In August 2014, the FASB issued an accounting standard update which provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The update requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. It also requires management to provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. This guidance will be required for annual reporting periods ending after December 15, 2016, and interim reporting periods thereafter, with early application permitted. The Company is currently evaluating the impact that this guidance will have on its financial position and results of operations. |
Note 2 - Summary of Significa21
Note 2 - Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | January 31, 6 Series A convertible preferred stock issued and outstanding 45,188,600 Series C convertible preferred stock issued and outstanding 35,000 Warrants to purchase common stock issued, outstanding and exercisable 16,355,000 Shares on convertible promissory notes 11,300,000 72,878,635 |
Note 5 - Property and Equipme22
Note 5 - Property and Equipment (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | January 31, 201 6 Remaining Accumulated Net Carrying Useful Life Cost Depreciation Value Computer equipment 1.5 Years $ 82,719 $ 54,118 $ 28,601 |
Note 6 - Accounts Payable and23
Note 6 - Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | January 31, 201 6 Trade payables $ 395,539 Accrued interest payable 67,800 Accrued payroll and commissions 220,000 Total accounts payable and accrued expenses $ 683,339 |
Note 8 - Derivative Liabiliti24
Note 8 - Derivative Liabilities (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | Balance 10/31/2015 $ 628,762 Elimination of deferred liability due to payoff of convertible debenture (628,762 ) Balance 1/31/2016 $ - |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Warrants Weighted Average Exercise Price Intrinsic Value Outstanding, October 31, 2015 4,980,000 $ 0.12 $ 0.00 Warrants granted and issued 13,600,000 $ 0.05 $ 0.00 Warrants exercised/forfeited (2,225,000 ) $ (0.14 ) $ 0.00 Outstanding, January 31, 2016 16,355,000 $ 0.12 $ 0.00 Common stock issuable upon exercise of warrants 16,355,000 $ 0.12 $ 0.00 |
Schedule of Share-based Compensation, Activity [Table Text Block] | Common Stock Issuable Upon Exercise of Warrants Outstanding Common Stock Issuable Upon Warrants Exercisable Number Weighted Weighted Number Weighted Range of Outstanding Average Average Exercisable Average Exercise At January 31, Remaining Exercise at October Exercise Prices 2016 Contractual Price 31, 2015 Price Life (Years) $ 0.05 13,600,000 0.83 $ 0.05 13,600,000 $ 0.05 $ 0.10 2,455,000 2.87 $ 0.10 2,455,000 $ 0.10 $ 0.17 300,000 0.72 $ 0.17 300,000 $ 0.17 16,355,000 $ 0.06 16,355,000 $ 0.06 |
Note 2 - Summary of Significa26
Note 2 - Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | Oct. 31, 2015USD ($) | |
Computer Equipment [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Cash Equivalents, at Carrying Value | $ 0 | $ 0 | |
Advertising Expense | 0 | $ 0 | |
Impairment of Long-Lived Assets Held-for-use | 0 | ||
Allowance for Doubtful Accounts Receivable | 0 | 0 | |
Impairment of Intangible Assets (Excluding Goodwill) | $ 1,802,106 | ||
Amortization of Intangible Assets | 0 | 509,199 | |
Capitalized Computer Software, Amortization | 0 | 127,272 | |
Foreign Currency Transaction Gain (Loss), Realized | 0 | 9,613 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ 6,082 | $ 8,063 | |
Foreign Currency Exchange Rate, Translation | 0.71582 | ||
Foreign Currency Exchange Rate, Translation, for the Year | 0.87365 |
Note 2 - Antidilutive Securitie
Note 2 - Antidilutive Securities (Details) | 3 Months Ended |
Jan. 31, 2016shares | |
Series A Convertible Preferred Stock [Member] | |
Common stock equivalents (in shares) | 45,188,600 |
Series C Convertible Preferred Stock [Member] | |
Common stock equivalents (in shares) | 35,000 |
Warrant Issued [Member] | |
Common stock equivalents (in shares) | 16,355,000 |
Convertible Debt Securities [Member] | |
Common stock equivalents (in shares) | 11,300,000 |
Common stock equivalents (in shares) | 72,878,635 |
Note 3 - Going Concern (Details
Note 3 - Going Concern (Details Textual) - USD ($) | 3 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Oct. 31, 2015 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (143,141) | $ (1,665,072) | |
Working Capital Deficit | 499,462 | ||
Retained Earnings (Accumulated Deficit) | $ (20,936,536) | $ (20,796,181) |
Note 4 - Restricted Cash (Detai
Note 4 - Restricted Cash (Details Textual) - USD ($) | Jan. 31, 2016 | Oct. 31, 2015 |
Restricted Cash and Cash Equivalents, Noncurrent | $ 27,977 |
Note 5 - Property and Equipme30
Note 5 - Property and Equipment (Details Textual) - USD ($) | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Depreciation | $ 6,146 | $ 5,415 |
Note 5 - Property and Equipme31
Note 5 - Property and Equipment (Details) | 3 Months Ended |
Jan. 31, 2016USD ($) | |
Computer Equipment [Member] | |
Computer equipment | 1 year 182 days |
Computer equipment | $ 82,719 |
Computer equipment | 54,118 |
Computer equipment | 28,601 |
Computer equipment | $ 28,601 |
Note 6 - Payables and Accruals
Note 6 - Payables and Accruals (Details) | Jan. 31, 2016USD ($) |
Trade payables | $ 395,539 |
Accrued interest payable | 67,800 |
Accrued payroll and commissions | 220,000 |
Total accounts payable and accrued expenses | $ 683,339 |
Note 7 - Due From or To Affil33
Note 7 - Due From or To Affiliates (Details Textual) - USD ($) | Jan. 31, 2016 | Oct. 31, 2015 |
Due to Affiliate, Current | $ 1,287,517 | $ 1,287,517 |
Note 8 - Change in Fair Value o
Note 8 - Change in Fair Value of Derivative Liabilities (Details) | 3 Months Ended |
Jan. 31, 2016USD ($) | |
Balance @ 10/31/2015 | $ 628,762 |
Elimination of deferred liability due to payoff of convertible debenture | $ (628,762) |
Balance @ 1/31/2016 |
Note 9 - Convertible Notes Pa35
Note 9 - Convertible Notes Payable (Details Textual) - Convertible Notes Payable [Member] - USD ($) | 1 Months Ended | |
Dec. 31, 2015 | Jan. 31, 2016 | |
Himmil [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | |
Extinguishment of Debt, Amount | $ 500,000 | |
Minimum [Member] | ||
Debt Instrument, Convertible, Conversion Price | $ 0.10 | |
Debt Instrument, Interest Rate, Stated Percentage | 24.00% | |
Convertible Notes Payable, Current | $ 1,130,000 | |
Percentage of Common Stock Interest Payment | 12.00% | |
Shares Issued, Price Per Share | $ 0.10 |
Note 10 - Loans Payable (Detail
Note 10 - Loans Payable (Details Textual) - USD ($) | 3 Months Ended | |
Jan. 31, 2016 | Oct. 31, 2015 | |
Board of Directors Chairman [Member] | ||
Stock Issued During Period, Shares, New Issues | 1,000,000 | |
Stock Issued During Period, Value, New Issues | $ 50,000 | |
Non-related Party [Member] | ||
Loans Payable, Current | $ 170,000 | |
Stock Issued During Period, Shares, New Issues | 13,600,000 | |
Loans Payable, Current | $ 170,000 | $ 220,000 |
Note 11 - Stockholders' Equit37
Note 11 - Stockholders' Equity (Details Textual) | Jan. 31, 2016USD ($)$ / sharesshares | Jan. 20, 2016USD ($)$ / sharesshares | Dec. 01, 2015shares | Nov. 30, 2015USD ($)$ / sharesshares | Oct. 14, 2014$ / sharesshares | Jan. 31, 2016USD ($)$ / sharesshares | Oct. 31, 2015$ / sharesshares | Aug. 06, 2015shares | Jan. 31, 2015shares | Jul. 31, 2014shares | Jul. 30, 2014shares |
Series A Convertible Preferred Stock [Member] | |||||||||||
Preferred Stock, Shares Outstanding | 45,188,600 | 45,188,600 | |||||||||
Preferred Stock, Shares Authorized | 120,000,000 | 120,000,000 | 120,000,000 | 100,000,000 | |||||||
Stock Repurchased and Retired During Period, Shares | 1,000,000 | ||||||||||
Preferred Stock, Dividend Rate, Percentage | 10.00% | ||||||||||
Preferred Stock Conversion Price Per Share | $ / shares | $ 1 | ||||||||||
Series B Convertible Preferred Stock [Member] | |||||||||||
Preferred Stock, Shares Outstanding | 0 | 0 | 26,000 | ||||||||
Number of Shares Designated | 1,000,000 | ||||||||||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | ||||||||||
Preferred Stock, Dividend Rate, Percentage | 10.00% | ||||||||||
Preferred Stock Conversion Price Per Share | $ / shares | 0.05 | $ 0.05 | |||||||||
Preferred Stock Stated Value | $ / shares | $ 5 | ||||||||||
Preferred Stock, Shares Issued | 26,000 | ||||||||||
Number of Voting Rights, Votes Per Share | 200 | ||||||||||
Series C Convertible Preferred Stock [Member] | |||||||||||
Preferred Stock, Shares Outstanding | 35,000 | 35,000 | |||||||||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||
Preferred Stock Conversion Price Per Share | $ / shares | $ 0.05 | ||||||||||
Preferred Stock Stated Value | $ / shares | $ 5 | $ 5 | |||||||||
Number of Voting Rights, Votes Per Share | 100 | ||||||||||
Convertible Preferred Stock, Shares Issuable upon Conversion | $ | $ 3,500,000 | $ 3,500,000 | |||||||||
Number of Voting Rights | 350,000,000 | 350,000,000 | |||||||||
Series A Preferred Stock [Member] | |||||||||||
Preferred Stock, Shares Outstanding | 45,188,600 | 45,188,600 | 46,188,600 | ||||||||
Preferred Stock, Shares Authorized | 120,000,000 | 120,000,000 | 120,000,000 | ||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Stock Issued During Period, Shares, Share-based Compensation, Forfeited | 1,000,000 | ||||||||||
Preferred Stock, Shares Issued | 45,188,600 | 45,188,600 | 46,188,600 | ||||||||
Company Controlled by Chairman [Member] | Issuance of Common Stock [Member] | |||||||||||
Stock Issued During Period, Shares, New Issues | 1 | ||||||||||
Share Price | $ / shares | $ 0.05 | $ 0.05 | |||||||||
Company Controlled by Chairman [Member] | Promissory Note [Member] | |||||||||||
Related Party Transaction, Rate | 0.00% | ||||||||||
Stock Issued During Period, Value, New Issues | $ | $ 50,000 | ||||||||||
Company Controlled by Chairman [Member] | |||||||||||
Stock Issued During Period, Shares, New Issues | 6,000,000 | ||||||||||
Number of Units Sold | 6,000,000 | ||||||||||
Price Per Unit | $ / shares | $ 0.05 | ||||||||||
Proceeds from Units Sold, Gross | $ | $ 300,000 | ||||||||||
Share Per Unit | 1 | ||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 1 | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 6,000,000 | ||||||||||
Warrant Term | 1 year | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.05 | ||||||||||
Chief Financial Officer [Member] | |||||||||||
Stock Issued During Period, Shares, New Issues | 200,000 | ||||||||||
Stock Issued During Period, Value, New Issues | $ | $ 10,000 | ||||||||||
Number of Units Sold | 200,000 | ||||||||||
Proceeds from Units Sold, Gross | $ | $ 10,000 | ||||||||||
Himmil [Member] | Fully Repaid Convertible Promissory Note [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% | |||||||||
Himmil [Member] | |||||||||||
Payments for Legal Settlements | $ | $ 500,000 | ||||||||||
Company Controlled by Chairman [Member] | |||||||||||
Number of Units Sold | 6,000,000 | ||||||||||
Proceeds from Units Sold, Gross | $ | $ 300,000 | ||||||||||
Monaker Group Series D Preferred Stock Converted into Common Stock [Member] | |||||||||||
Conversion of Stock, Shares Converted | 30,000 | 30,000 | |||||||||
Conversion of Stock, Shares Issued | 1,000,000 | 1,000,000 | |||||||||
Stock Issued During Period, Shares, New Issues | 13,600,000 | ||||||||||
Proceeds from Shares Issued for Accrued Interest on Convertible Promissory Notes | $ | $ 0 | ||||||||||
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 | 250,000,000 | 250,000,000 | 125,000,000 | ||||||
Preferred Stock, Shares Authorized | 320,000,000 | 320,000,000 | |||||||||
Common Stock and Preferred Stock Authorized | 570,000,000 | ||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Common Stock, Shares, Outstanding | 149,994,879 | 149,994,879 | 133,687,500 | ||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | |||||||||
Number of Units Sold | 13,600,000 | ||||||||||
Price Per Unit | $ / shares | $ 0.05 | ||||||||||
Proceeds from Units Sold, Gross | $ | $ 680,000 | ||||||||||
Share Per Unit | 1 | ||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 1 | 1 | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 13,600,000 | 13,600,000 | |||||||||
Warrant Term | 1 year | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.05 | $ 0.05 | |||||||||
Proceeds from Units Sold, Portion Used to Pay Disputes and Claims | $ | $ 500,000 | ||||||||||
Stock Issued During Period, Shares, Issued for Accrued Interest on Convertible Promissory Notes | 421,500 | ||||||||||
Stock Issued During Period, Value, Issued for Accrued Interest on Convertible Promissory Notes | $ | $ 42,150 | ||||||||||
Stock Repurchased and Retired During Period, Shares | 1,000,000 | ||||||||||
Stock Repurchased and Retired During Period, Value | $ | $ 50,000 | ||||||||||
Stock Issued During Period, Shares, Issued for Services | 800,000 | ||||||||||
Stock Issued During Period Per Share Value for Services | $ / shares | $ (0.04) | ||||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 32,000 |
Note 11 - Warrant Activity (Det
Note 11 - Warrant Activity (Details) | 3 Months Ended |
Jan. 31, 2016$ / sharesshares | |
Warrant [Member] | |
Outstanding, (in shares) | shares | 4,980,000 |
Outstanding, (in dollars per share) | $ 0.12 |
Outstanding, (in dollars per share) | $ 0 |
Warrants granted and issued (in shares) | shares | 13,600,000 |
Warrants granted and issued (in dollars per share) | $ 0.05 |
Warrants granted and issued (in dollars per share) | $ 0 |
Warrants exercised/forfeited (in shares) | shares | (2,225,000) |
Warrants exercised/forfeited (in dollars per share) | $ (0.14) |
Warrants exercised/forfeited (in dollars per share) | $ 0 |
Common stock issuable upon exercise of warrants (in shares) | shares | 16,355,000 |
Common stock issuable upon exercise of warrants (in dollars per share) | $ 0.12 |
Common stock issuable upon exercise of warrants (in dollars per share) | $ 0 |
Outstanding (in shares) | shares | 16,355,000 |
Outstanding (in dollars per share) | $ 0.12 |
Outstanding (in dollars per share) | $ 0 |
Note 11 - Warrants Outstanding
Note 11 - Warrants Outstanding and Exercisable (Details) | 3 Months Ended |
Jan. 31, 2016$ / sharesshares | |
Range 1 [Member] | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.05 |
Warrants Outstanding (in shares) | shares | 13,600,000 |
Warrants Outstanding Weighted Average Remaining Contractual Life (Years) | 302 days |
Warrants Outstanding Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 0.05 |
Warrants Exercisable (in shares) | shares | 13,600,000 |
Range 2 [Member] | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.10 |
Warrants Outstanding (in shares) | shares | 2,455,000 |
Warrants Outstanding Weighted Average Remaining Contractual Life (Years) | 2 years 317 days |
Warrants Outstanding Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 0.10 |
Warrants Exercisable (in shares) | shares | 2,455,000 |
Range 3 [Member] | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.17 |
Warrants Outstanding (in shares) | shares | 300,000 |
Warrants Outstanding Weighted Average Remaining Contractual Life (Years) | 262 days |
Warrants Outstanding Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 0.17 |
Warrants Exercisable (in shares) | shares | 300,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.05 |
Warrants Outstanding (in shares) | shares | 16,355,000 |
Warrants Outstanding Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 0.06 |
Warrants Exercisable (in shares) | shares | 16,355,000 |
Note 12 - Related Party Trans40
Note 12 - Related Party Transactions (Details Textual) | Dec. 01, 2015shares | Nov. 30, 2015USD ($)$ / sharesshares | Nov. 19, 2015$ / sharesshares | Aug. 29, 2015USD ($) | Jan. 31, 2016USD ($)$ / sharesshares |
Company Controlled by Chairman [Member] | Issuance of Common Stock [Member] | |||||
Stock Issued During Period, Shares, New Issues | 1,000,000 | ||||
Share Price | $ / shares | $ 0.05 | ||||
Company Controlled by Chairman [Member] | Promissory Note [Member] | |||||
Related Party Transaction, Rate | 0.00% | ||||
Related Party Transaction, Amounts of Transaction | $ | $ 50,000 | ||||
Company Controlled by Chairman [Member] | |||||
Stock Issued During Period, Shares, New Issues | 6,000,000 | ||||
Number of Units Sold | 6,000,000 | ||||
Price Per Unit | $ / shares | $ 0.05 | ||||
Proceeds from Units Sold, Gross | $ | $ 300,000 | ||||
Share Per Unit | 1 | ||||
Warrant Term | 1 year | ||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 1 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.05 | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 6,000,000 | ||||
Chief Financial Officer [Member] | |||||
Stock Issued During Period, Shares, New Issues | 200,000 | ||||
Number of Units Sold | 200,000 | ||||
Proceeds from Units Sold, Gross | $ | $ 10,000 | ||||
Stock Issued During Period, Value, New Issues | $ | $ 10,000 | ||||
Monaker Group Series D Preferred Stock Converted into Common Stock [Member] | |||||
Conversion of Stock, Shares Converted | 30,000 | 30,000 | |||
Conversion of Stock, Shares Issued | 1,000,000 | 1,000,000 | |||
Stock Issued During Period, Shares, New Issues | 13,600,000 | ||||
Number of Units Sold | 13,600,000 | ||||
Price Per Unit | $ / shares | $ 0.05 | ||||
Proceeds from Units Sold, Gross | $ | $ 680,000 | ||||
Share Per Unit | 1 | ||||
Warrant Term | 1 year | ||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 1 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.05 | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 13,600,000 |
Note 13 - Contingencies (Detail
Note 13 - Contingencies (Details Textual) - USD ($) | Jan. 31, 2016 | Oct. 31, 2015 |
Restricted Cash and Cash Equivalents, Noncurrent | $ 27,977 |
Note 14 - Subsequent Events (De
Note 14 - Subsequent Events (Details Textual) - USD ($) | Mar. 01, 2016 | Jan. 31, 2016 |
Subsequent Event [Member] | ||
Proceeds from Shares Issued for Accrued Interest on Convertible Promissory Notes | $ 0 | |
Repayments of Debt | $ 25,650 | |
Stock Issued During Period, Shares, Issued for Accrued Interest on Convertible Promissory Notes | 421,500 | |
Stock Issued During Period, Value, Issued for Accrued Interest on Convertible Promissory Notes | $ 42,150 | |
Proceeds from Shares Issued for Accrued Interest on Convertible Promissory Notes | $ 0 | |
Stock Issued During Period, Shares, Issued for Accrued Interest on Convertible Promissory Notes | 421,500 | |
Stock Issued During Period, Value, Issued for Accrued Interest on Convertible Promissory Notes | $ 42,150 |