Verus International (VRUS) 10-Q 4 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jan. 31, 2018	May 03, 2018
Document And Entity Information
Entity Registrant Name	REALBIZ MEDIA GROUP, INC
Entity Central Index Key	1,430,523
Document Type	10-Q
Document Period End Date	Jan. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		357,284,081
Trading Symbol	RBIZ
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jan. 31, 2018	Oct. 31, 2017
Current Assets
Cash	$ 657,511	$ 280,111
Marketable securities	32,370
Accounts receivable, net of allowance for doubtful accounts of $119,106 and $45,933, respectively	801,053	822,312
NestBuilder receivable	8,327
Inventory	185,689	341,188
Other assets	104,586	16,621
Total Current Assets	1,789,536	1,463,532
Current Liabilities
Accounts payable and accrued expenses	1,068,708	1,230,998
Interest payable	35,262	22,559
Due to officer	33,301	33,301
Convertible notes payable, net of discount of $9,560 and $15,000	1,427,027	975,250
Total Current Liabilities	2,564,298	2,262,109
Commitments and Contingencies (Note 7)
Stockholders' Deficit
Common stock, $0.001 par value; 1,500,000,000 shares authorized and 359,447,396 and 249,369,810 shares issued and outstanding as of January 31, 2018 and October 31, 2017, respectively	359,448	249,370
Additional paid-in-capital	22,798,878	22,409,041
Accumulated other comprehensive loss	(66,849)	(53,285)
Accumulated deficit	(23,910,969)	(23,403,963)
Total Stockholders' Deficit	(774,762)	(798,577)
Total Liabilities and Stockholders' Deficit	1,789,536	1,463,532
Series A Convertible Preferred Stock [Member]
Stockholders' Deficit
Convertible Preferred Stock, value	44,570	100
Series B Convertible Preferred Stock [Member]
Stockholders' Deficit
Convertible Preferred Stock, value
Series C Convertible Preferred Stock [Member]
Stockholders' Deficit
Convertible Preferred Stock, value	$ 160	$ 160

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jan. 31, 2018	Oct. 31, 2017
Allowance for doubtful accounts	$ 119,106	$ 45,933
Convertible notes payable, net of discount	$ 9,560	$ 15,000
Convertible Preferred Stock, par value	$ 0.001
Convertible Preferred Stock, shares authorized	320,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,500,000,000	1,500,000,000
Common stock, shares issued	359,447,396	249,369,810
Common stock, shares outstanding	359,447,396	249,369,810
Series A Convertible Preferred Stock [Member]
Convertible Preferred Stock, par value	$ 0.001	$ 0.001
Convertible Preferred Stock, shares authorized	120,000,000	120,000,000
Convertible Preferred Stock, shares issued	44,570,101	100,000
Convertible Preferred Stock, shares outstanding	44,570,101	100,000
Series B Convertible Preferred Stock [Member]
Convertible Preferred Stock, par value	$ 0.001	$ 0.001
Convertible Preferred Stock, shares authorized	1,000,000	1,000,000
Convertible Preferred Stock, shares issued
Convertible Preferred Stock, shares outstanding
Series C Convertible Preferred Stock [Member]
Convertible Preferred Stock, par value	$ 0.001	$ 0.001
Convertible Preferred Stock, shares authorized	1,000,000	1,000,000
Convertible Preferred Stock, shares issued	160,000	160,000
Convertible Preferred Stock, shares outstanding	160,000	160,000

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income Loss (Unaudited) - USD ($)	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Revenues
Real estate	$ 70,016	$ 101,633
Food products	996,125
Total Revenues	1,066,141	101,633
Cost of Revenues
Cost of revenues - Real estate	19,800	49,796
Cost of revenues - Food products	938,190
Cost of revenues	957,990	49,796
Gross Profit	108,151	51,837
Operating expenses
Salaries and benefits	182,583	670,831
Selling and promotions expense	133	1,050
Legal and professional fees	115,015	232,636
General and administrative	78,585	43,354
Total Operating Expenses	376,316	947,871
Operating Loss	(268,165)	(896,033)
Other Income (Expense)
Interest expense	(49,358)	(83,703)
Loss on legal settlement	(189,483)
Loss on settlement of accounts payable and convertible debt		(23,716)
Total Other Income (Expense)	(238,841)	(107,419)
Net Loss	$ (507,006)	$ (1,003,452)
Weighted Average Number of Shares Outstanding	274,118,608	183,046,600
Basic and Diluted Net Loss Per Share	$ 0	$ 0
Comprehensive Income (Loss):
Unrealized gain (loss) on foreign currency translation adjustment	$ (13,564)	$ 32,005
Comprehensive loss	$ (520,570)	$ (971,447)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Cash flows from operating activities:
Net loss	$ (507,006)	$ (1,003,452)
Adjustments to reconcile net loss to net cash from operating activities:
Loss on settlement of accounts payable and convertible debt		23,716
Depreciation		5,904
Amortization of debt discount	5,440	61,603
Legal settlement settled in shares	289,483
Stock based compensation		626,468
Changes in operating assets and liabilities:
Decrease in accounts receivable	21,259	10,571
Increase in prepaid expenses	(87,965)	(99,050)
Decrease in inventory	155,499
Decrease in due from former officer		24,390
(Decrease) increase in accounts payable and accrued expenses	(128,746)	168,091
Net cash used in operating activities	(252,036)	(181,759)
Cash flows from financing activities:
Payments applied to convertible promissory notes	(40,000)
Proceeds from issuance of convertible promissory notes	683,000
Net cash provided by financing activities	643,000	100,610
Effect of exchange rate on cash and cash equivalents	(13,564)
Net increase (decrease) in cash	377,400	(81,149)
Cash at beginning of period	280,111	148,887
Cash at end of period	657,511	67,738
Supplemental disclosure:
Cash paid for interest	17,952	7,350
Series A Convertible Preferred Stock [Member]
Cash flows from financing activities:
Proceeds from issuance of Convertible Preferred Stock		610
Series C Convertible Preferred Stock [Member]
Cash flows from financing activities:
Proceeds from issuance of Convertible Preferred Stock		100,000
Settlement of Loans Payable Through Issuance of Series C Convertible Preferred Stock [Member]
Supplemental disclosure of non-cash investing and financing activity:
Value		$ 25,000
Shares		25,000
Settlement of Loans Payable, Accrued Interest and Professional Fees Through Issuance of Common Stock [Member]
Supplemental disclosure of non-cash investing and financing activity:
Value	$ 214,205	$ 1,137,100
Shares	99,517,696	69,368,539

Nature of Business and Basis of

Nature of Business and Basis of Presentation	3 Months Ended
	Jan. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	NOTE 1: NATURE OF BUSINESS AND BASIS OF PRESENTATION Organization and Nature of Business RealBiz Media Group, Inc., including all its subsidiaries, are collectively referred to herein as “RealBiz,” “RBIZ”, “the Company,” “us,” or “we”. RealBiz operates in two business segments – Food Products and Real Estate. Food Products Verus Foods, Inc. (“Verus”) a Nevada corporation, and our wholly owned subsidiary, was incorporated in January 2017, and is an international supplier of consumer food products. Verus markets under its own brand primarily to supermarkets, hotels and other members of the wholesale trade. In 2018, Verus is pursuing a three-pronged development program through the addition of cold-storage facilities, product line expansion and new vertical farm-to-market operations. Subsequently, in 2017, Verus added beverages as a second vertical. Verus’ initial focus is on frozen foods, particularly meat, poultry, seafood, vegetables and french fries. Verus has a significant regional presence in the Middle East and North Africa (“MENA”) and sub-Saharan Africa (excluding Office of Foreign Assets Control (“OFAC”) restricted nations), with deep roots in the Gulf Cooperation Council (“GCC”) countries, which includes the United Arab Emirates (“UAE”), Oman, Bahrain, Qatar, Kingdom of Saudi Arabia and Kuwait. In January 2017, Verus received a contract valued at approximately $78 million to supply beef to the GCC countries. The first orders under this contract were shipped in February 2017. In addition, Verus executed an agreement in August 2017 to which it became the exclusive distributor of Disney-branded juice products in the UAE and Oman. The first purchase order under the agreement was issued in December 2017. Real Estate Our real estate segment generates revenue from service fees (video creation and production and website hosting (ReachFactor)) and product sales (Nestbuilder Agent 2.0 and Microvideo app). The real estate segment was 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. In October 2017, we announced the execution of a definitive agreement to spin-off the real estate segment into a separate public company named NestBuilder.com Corp. (“NestBuilder”). All stockholders of record at the time of the spin-off will receive an equivalent stock position in NestBuilder (the “Distribution”). The obligation of the Company and NestBuilder to consummate the Distribution was subject to the Securities and Exchange Commission (“SEC”) declaring NestBuilder’s Registration Statement on Form 10 effective, which Form 10 was declared effective by the SEC on February 20, 2018. Following the effective date of the Registration Statement on Form 10, the parties deemed it advisable and in the best interest of such parties to fix the record date as April 25, 2018 for the determination of stockholders entitled to receive the Distribution. The distribution date has been set as May 18, 2018. 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 the Company’s 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 (“US GAAP”) have been omitted pursuant to rules and regulations of the 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, 2017, contained in the Company’s Annual Report on Form 10-K filed with the SEC on March 26, 2018. The results of operations for the three months ended January 31, 2018, are not necessarily indicative of results to be expected for any other interim period or the fiscal year ending October 31, 2018.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Jan. 31, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of unaudited consolidated financial statements in conformity with US GAAP 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. Significant estimates include the collectability of accounts receivable, stock-based compensation and the deferred tax asset valuation allowance. Reclassifications Certain reclassifications have been made to prior year’s consolidated financial statements to enhance comparability with the current year’s consolidated financial statements. Concentrations of Credit Risk The Company’s Food Products accounts receivable, net and revenues are geographically concentrated with customers located in the GCC countries. In addition, significant concentrations exist with a limited number of customers. If demand for the Company’s products from these customers should decrease, there could be an adverse effect on the Company’s consolidated results of operations and financial position. The Company purchases substantially all of its food products from a limited number of regions around the world or from a limited number of suppliers. The Company’s consolidated results of operations and financial position may be materially and adversely affected if there are significant price increases for these food products, the Company has difficulty obtaining these food products, or the quality of available food products deteriorates. For periods in which the prices of these food products are rising, the Company may be unable to pass on the increased cost to the Company’s customers, which would result in decreased margins. For periods in which the prices are declining, the Company may be required to write down its inventory carrying cost which, depending on the extent of the differences between market price and carrying cost, could have a material adverse effect on the Company’s consolidated results of operations and financial position. 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 as of January 31, 2018 and October 31, 2017. Marketable securities In January 2018, as part of the legal settlement with Monaker Group, Inc. (“Monaker”), Nestbuilder received Monaker common shares valued at $32,270, which we have classified as “available for sale” securities. Pursuant to Statement of Financial Accounting Standards (“SFAS”) No. 115, Accounting for Certain Investments in Debt and Equity Securities Accounts Receivable 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 Company has determined the allowance for doubtful accounts to be $119,106 and $45,933 as of January 31, 2018 and October 31, 2017, respectively. Inventory Inventory is stated at the lower of net realizable value, determined on the first-in, first-out basis, or cost. Net realizable value is based on estimated selling prices in the ordinary course of business less reasonably predictable costs of completion and transportation. 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 Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”). 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 has adopted ASC topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”), formerly SFAS No. 157 “Fair Value Measurements”. 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. 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, marketable securities, 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 exists; (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. Share-Based Compensation The Company computes share based payments in accordance with ASC 718-10, Compensation Equity Based Payments to Non-Employees Foreign Currency Assets and liabilities of non-U.S. subsidiaries, where the functional currency is not the U.S. dollar, have been translated at year-end exchange rates and profit and loss accounts have been translated using average exchange rates. Foreign currency translation gains and losses are included in the Consolidated Statements of Operations and Comprehensive Loss as a component of Other comprehensive loss. Assets and liabilities of an entity that are denominated in currencies other than an entity’s functional currency are re-measured into the functional currency using end of period exchange rates or historical rates, where applicable to certain balances. Gains and losses related to these re-measurements are recorded within the Consolidated Statements of Operations and Comprehensive Loss as a component of Other income (expense). Income Taxes The Company accounts for income taxes in accordance with Accounting for Income Taxes, as clarified by ASC 740-10, Accounting for Uncertainty in Income Taxes ASC 740-10 requires that the Company recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the “more-likely-than-not” threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company’s tax returns for its October 31, 2017, 2016 and 2015 tax years may be selected for examination by the taxing authorities as the statute of limitations remains open. The Company recognizes expenses for tax penalties and interest assessed by the Internal Revenue Service and other taxing authorities upon receiving valid notice of assessments. The Company has received no such notices for the tax years ended October 31, 2017 and 2016. Earnings Per Share In accordance with the provisions of FASB ASC Topic 260, Earnings per Share In computing diluted EPS, only potential common shares that are dilutive, those that reduce EPS or increase loss per share, are included. The effect of contingently issuable shares are not included if the result would be anti-dilutive, such as when a net loss is reported. Therefore, basic and diluted EPS are computed using the same number of weighted average shares for the three months ended January 31, 2018 and 2017 as we incurred a net loss for those periods. As of January 31, 2018, there were outstanding warrants to purchase 16,786,467 shares of the Company’s common stock and approximately 256 million shares of the Company’s common stock which may dilute future earnings per share as a result of conversions of outstanding convertible promissory notes. Concentrations, Risks and Uncertainties The Company’s operations are related to the real estate and international food industries, and its prospects for success are tied indirectly to interest rates, the general housing and business climates in the United States and the worldwide demand for the Company’s food products. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases Revenue Recognition Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842 In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Business Combinations (Topic 805) – Clarifying the Definition of a Business In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting Compensation—Stock Compensation Compensation—Stock Compensation (Topic 718)—Scope of Modification Accounting Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on the accompanying consolidated unaudited financial statements.

Going Concern

Going Concern	3 Months Ended
	Jan. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	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 incurred a net loss of $507,006 for the three months ended January 31, 2018. As of January 31, 2018, the Company had a working capital deficit of $774,762 and an accumulated deficit of $23,910,969. It is management’s opinion that these facts raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the date of this filing, without additional debt or equity financing. 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 and to fund the growth of the food business, 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.

Segment Reporting

Segment Reporting	3 Months Ended
	Jan. 31, 2018
Segment Reporting [Abstract]
Segment Reporting	Note 4: Segment reporting The Company has two reportable segments: Real Estate and Food Products. The Real Estate segment provides service in the form of (video creation and production and website hosting (ReachFactor)) and product sales (Nestbuilder Agent 2.0 and Microvideo app). The Food Products segment is an international supplier of consumer food products, marketing its own brand primarily to supermarkets, hotels, and other members of the wholesale trade. The Company evaluates segment performance based on segment income (loss) before taxes. Costs excluded from segment income (loss) before taxes and reported as “Other” consist of corporate general and administrative costs which are not allocable to the three reportable segments. Management of the Company assesses assets on a consolidated basis only and, therefore, assets by reportable segment have not been included in the reportable segments below. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies contained in the Company’s Annual Report on Form 10-K for the year ended October 31, 2017. The following financial information represents the operating results of the reportable segments of the Company for the three months ended January 31, 2018: Real Estate Food Products Other Consolidated Sales $ 70,016 $ 996,125 $ - $ 1,066,741 Cost of Sales 19,800 938,190 - 957,990 Gross Profit 50,216 57,935 - 108,151 Operating Expenses: Sales and Marketing 133 - - 133 Salaries and benefits 35,375 147,208 - 182,583 Legal and professional fees 47,000 68,015 - 115,015 General and administrative expense 12,602 65,983 - 78,585 Total Operating Expenses 95,110 281,206 - 376,316 Loss From Operations (44,894 ) (223,271 ) - (268,165 ) Other Income (Expense): Interest expense - - (49,358 ) (49,358 ) Gain (Loss) on legal settlement 132,370 (351,853 ) (30,000 ) (189,483 ) Total Other Income (Expense) 132,370 (351,853 ) (79,358 ) (238,841 ) Net Income (Loss) $ 87,476 $ (575,124 ) $ (79,358 ) $ (507,006 )

Convertible Notes Payable

Convertible Notes Payable	3 Months Ended
	Jan. 31, 2018
Debt Disclosure [Abstract]
Convertible Notes Payable	NOTE 5: CONVERTIBLE NOTES PAYABLE 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 ASC. 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. As of January 31, 2018 and October 31, 2017, there was $1,427,027 and $975,250 of convertible notes payable outstanding, net of discounts, respectively. All convertible notes are currently in default due to the Company not filing this Quarterly Report on Form 10-Q on a timely basis. On December 21, 2017, the Company issued EMA Financial, LLC a convertible note in the principal amount of $100,000 (the “EMA Note 2”). The EMA Note 2 accrues interest at a rate of 8% per annum and matures on December 21, 2018. Pursuant to the terms of the EMA Note 2, the Company may prepay the principal amount of the note together with accrued interest at any time on or prior to June 21, 2018, subject to certain prepayment penalties. Pursuant to the terms of the convertible note, the outstanding principal and accrued interest of the EMA Note 2 are convertible into shares of the Company’s common stock at a discount rate of 40% of the market price on the date of conversion, subject to certain restrictions. On December 28, 2017, the Company issued Power Up Lending Group Ltd. (“Power Up”) a convertible note in the principal amount of $53,000 (the “Power Up Note 6”). The Power Up Note 6 accrues interest at a rate of 8% per annum and matures on October 5, 2018. Pursuant to the terms of the Power Up Note 6, the Company may prepay the principal amount of the note together with accrued interest at any time on or prior to June 26, 2018, subject to certain prepayment penalties. Pursuant to the terms of the convertible note, the outstanding principal and accrued interest of the Power Up Note 6 are convertible into shares of the Company’s common stock at a discount rate of 39% of the market price on the date of conversion, subject to certain restrictions. On January 26, 2018, the Company issued the Donald P. Monaco Insurance Trust a promissory note in the amount of $530,000 (the “Monaco Note”). The Monaco Note accrues interest at a rate of 12% per annum and matures on January 22, 2019. Pursuant to the terms of the Monaco Note, the Company may prepay the principal amount of the note together with accrued interest at any time prior to the date of maturity without a prepayment penalty. Pursuant to the terms of the Monaco Note, the outstanding principal and accrued interest of the Monaco Note are not convertible into shares of the Company’s common stock, provided, however, upon the Company’s failure to pay the obligations set forth in the Monaco Note on the maturity date, the holder may convert the Monaco Note into shares of the Company’s common stock at a conversion price equal to the lowest closing price of the Company’s common stock during the 15 trading days prior to the date the holder gives notice of the default to the Company. During the three months ended January 31, 2018, holders of convertible notes payable converted an aggregate of $196,662 of outstanding principal, $12,793 of accrued interest and $4,750 of associated professional fees into an aggregate of 99,517,696 shares of the Company’s common stock. In addition, during the three months ended January 31, 2018, the Company made a payment of $57,952 to Power Up to prepay the Power Up Note 3 which included a principal payment of $40,000 and an interest payment together with prepayment penalties of $17,952. In December 2016, one of our convertible noteholders converted $25,000 of outstanding principal into 25,000 shares of the Company’s Series C Convertible Preferred Stock, at a price of $1.00 per share. On December 31, 2016, the holders of convertible notes payable with an outstanding principal balance of $1,105,000 converted their notes into an aggregate of 69,368,539 shares of the Company’s common stock.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Jan. 31, 2018
Equity [Abstract]
Stockholders' Equity	NOTE 6: STOCKHOLDERS’ EQUITY The total number of shares of all classes of stock that the Company shall have the authority to issue is 1,625,000,000 shares consisting of 1,500,000,000 shares of common stock with a $0.001 par value per shares; of which 359,447,396 are outstanding as of January 31, 2018 and 125,000,000 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 44,570,101 are outstanding as of January 31, 2018, (B) 1,000,000 shares have been designated as Series B Convertible Preferred Stock, of which no shares are outstanding as of January 31, 2018 and (C) 1,000,000 have been designated as Series C Convertible Preferred Stock, of which 160,000 shares are outstanding as of January 31, 2018. Common Stock During the three months ended January 31, 2018, holders of convertible notes payable converted an aggregate of $196,662 principal, $12,793 of accrued interest and $4,750 of associated professional fees into an aggregate of 99,517,696 shares of the Company’s common stock. On December 22, 2017, the Company settled litigation matters with Monaker which resulted in the issuance of 10,559,890 shares of the Company’s common stock to Monaker. On January 29, 2018, the Company settled litigation with NestBuilder which resulted in the return and cancellation of 4,163,315 shares of the Company’s common stock on February 2, 2018. As of January 31, 2018, there were outstanding warrants to purchase 16,786,467 shares of the Company’s common stock and approximately 256 million shares of the Company’s common stock which may dilute future earnings per share as a result of conversions of outstanding convertible promissory notes. Series A Convertible Preferred Stock On December 22, 2017, the Company settled litigation matters with Monaker which resulted in the issuance of 44,470,101 shares of the Company’s Series A Convertible Preferred Stock. See Note 8. Litigation for further discussion.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jan. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 7: COMMITMENTS AND CONTINGENCIES On October 27, 2017, we entered into a Contribution and Spin-off Agreement (the “Spin-Off Agreement”) with NestBuilder pursuant to which we will spin-off our real estate division into NestBuilder. All stockholders of record at the time of the spin-off will receive an equivalent stock position in NestBuilder (the “Distribution”). The obligation of the Company and NestBuilder to consummate the Distribution was subject to the SEC declaring NestBuilder’s Registration Statement on Form 10 effective, which Form 10 was declared effective by the SEC on February 20, 2018. Following the effective date of the Registration Statement on Form 10, the parties deemed it advisable and in the best interest of such parties to fix April 25, 2018 as the record date for the determination of stockholders entitled to receive the Distribution. The Distribution is currently scheduled to occur on May 18, 2018. On January 29, 2018, NestBuilder, the Company, Mr. Aliksanyan and Mr. Bhatnagar entered into that certain First Amendment to Contribution and Spin-Off Agreement dated as of January 29, 2018 (the “First Amendment”), whereby the Spin-off Agreement was amended such that Mr. Bhatnagar is required to sell shares of NestBuilder common stock he and his affiliates receive in the Distribution to NestBuilder upon delivery of written notice by NestBuilder requesting such sale, which notice cannot be given less than 60 days after the effective date of the Distribution.

Litigation

Litigation	3 Months Ended
	Jan. 31, 2018
Litigation
Litigation	NOTE 8: LITIGATION RealBiz v. Monaker, Case No. 0:16-cv-61017-FAM. Monaker v. RealBiz, Case No. 1:16-cv-24978-DLG On December 22, 2017, the foregoing litigation was settled with the issuance of 44,470,101 shares of the Company’s Series A Convertible Preferred Stock and 10,559,890 shares of the Company’s common stock to Monaker and a $100,000 payment to NestBuilder by Monaker. The settlement included an anti-dilution provision requiring the Company to issue additional shares of its preferred or common stock to Monaker to maintain Monaker’s ownership percentage as of the date of the settlement. In addition, on January 29, 2018, additional litigation between the Company and NestBuilder was settled with the Company agreeing to pay NestBuilder $30,000 and NestBuilder agreeing to return to the Company 4,163,315 shares of the Company’s common stock.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jan. 31, 2018
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of unaudited consolidated financial statements in conformity with US GAAP 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. Significant estimates include the collectability of accounts receivable, stock-based compensation and the deferred tax asset valuation allowance.
Reclassifications	Reclassifications Certain reclassifications have been made to prior year’s consolidated financial statements to enhance comparability with the current year’s consolidated financial statements.
Concentrations of Credit Risk	Concentrations of Credit Risk The Company’s Food Products accounts receivable, net and revenues are geographically concentrated with customers located in the GCC countries. In addition, significant concentrations exist with a limited number of customers. If demand for the Company’s products from these customers should decrease, there could be an adverse effect on the Company’s consolidated results of operations and financial position. The Company purchases substantially all of its food products from a limited number of regions around the world or from a limited number of suppliers. The Company’s consolidated results of operations and financial position may be materially and adversely affected if there are significant price increases for these food products, the Company has difficulty obtaining these food products, or the quality of available food products deteriorates. For periods in which the prices of these food products are rising, the Company may be unable to pass on the increased cost to the Company’s customers, which would result in decreased margins. For periods in which the prices are declining, the Company may be required to write down its inventory carrying cost which, depending on the extent of the differences between market price and carrying cost, could have a material adverse effect on the Company’s consolidated results of operations and financial position.
Cash and Cash Equivalents	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 as of January 31, 2018 and October 31, 2017.
Marketable Securities	Marketable securities In January 2018, as part of the legal settlement with Monaker Group, Inc. (“Monaker”), Nestbuilder received Monaker common shares valued at $32,270, which we have classified as “available for sale” securities. Pursuant to Statement of Financial Accounting Standards (“SFAS”) No. 115, Accounting for Certain Investments in Debt and Equity Securities
Accounts Receivable	Accounts Receivable 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 Company has determined the allowance for doubtful accounts to be $119,106 and $45,933 as of January 31, 2018 and October 31, 2017, respectively.
Inventory	Inventory Inventory is stated at the lower of net realizable value, determined on the first-in, first-out basis, or cost. Net realizable value is based on estimated selling prices in the ordinary course of business less reasonably predictable costs of completion and transportation.
Convertible Debt Instruments	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 Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”). 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	Fair Value of Financial Instruments The Company has adopted ASC topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”), formerly SFAS No. 157 “Fair Value Measurements”. 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. 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, marketable securities, 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	Revenue Recognition The Company recognizes revenue when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (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.
Share-Based Compensation	Share-Based Compensation The Company computes share based payments in accordance with ASC 718-10, Compensation Equity Based Payments to Non-Employees
Foreign Currency	Foreign Currency Assets and liabilities of non-U.S. subsidiaries, where the functional currency is not the U.S. dollar, have been translated at year-end exchange rates and profit and loss accounts have been translated using average exchange rates. Foreign currency translation gains and losses are included in the Consolidated Statements of Operations and Comprehensive Loss as a component of Other comprehensive loss. Assets and liabilities of an entity that are denominated in currencies other than an entity’s functional currency are re-measured into the functional currency using end of period exchange rates or historical rates, where applicable to certain balances. Gains and losses related to these re-measurements are recorded within the Consolidated Statements of Operations and Comprehensive Loss as a component of Other income (expense).
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with Accounting for Income Taxes, as clarified by ASC 740-10, Accounting for Uncertainty in Income Taxes ASC 740-10 requires that the Company recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the “more-likely-than-not” threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company’s tax returns for its October 31, 2017, 2016 and 2015 tax years may be selected for examination by the taxing authorities as the statute of limitations remains open. The Company recognizes expenses for tax penalties and interest assessed by the Internal Revenue Service and other taxing authorities upon receiving valid notice of assessments. The Company has received no such notices for the tax years ended October 31, 2017 and 2016.
Earnings Per Share	Earnings Per Share In accordance with the provisions of FASB ASC Topic 260, Earnings per Share In computing diluted EPS, only potential common shares that are dilutive, those that reduce EPS or increase loss per share, are included. The effect of contingently issuable shares are not included if the result would be anti-dilutive, such as when a net loss is reported. Therefore, basic and diluted EPS are computed using the same number of weighted average shares for the three months ended January 31, 2018 and 2017 as we incurred a net loss for those periods. As of January 31, 2018, there were outstanding warrants to purchase 16,786,467 shares of the Company’s common stock and approximately 256 million shares of the Company’s common stock which may dilute future earnings per share as a result of conversions of outstanding convertible promissory notes.
Concentrations, Risks and Uncertainties	Concentrations, Risks and Uncertainties The Company’s operations are related to the real estate and international food industries, and its prospects for success are tied indirectly to interest rates, the general housing and business climates in the United States and the worldwide demand for the Company’s food products.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases Revenue Recognition Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842 In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Business Combinations (Topic 805) – Clarifying the Definition of a Business In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting Compensation—Stock Compensation Compensation—Stock Compensation (Topic 718)—Scope of Modification Accounting Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on the accompanying consolidated unaudited financial statements.

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Jan. 31, 2018
Segment Reporting [Abstract]
Schedule of Operating Results of the Reportable Segments	The following financial information represents the operating results of the reportable segments of the Company for the three months ended January 31, 2018: Real Estate Food Products Other Consolidated Sales $ 70,016 $ 996,125 $ - $ 1,066,741 Cost of Sales 19,800 938,190 - 957,990 Gross Profit 50,216 57,935 - 108,151 Operating Expenses: Sales and Marketing 133 - - 133 Salaries and benefits 35,375 147,208 - 182,583 Legal and professional fees 47,000 68,015 - 115,015 General and administrative expense 12,602 65,983 - 78,585 Total Operating Expenses 95,110 281,206 - 376,316 Loss From Operations (44,894 ) (223,271 ) - (268,165 ) Other Income (Expense): Interest expense - - (49,358 ) (49,358 ) Gain (Loss) on legal settlement 132,370 (351,853 ) (30,000 ) (189,483 ) Total Other Income (Expense) 132,370 (351,853 ) (79,358 ) (238,841 ) Net Income (Loss) $ 87,476 $ (575,124 ) $ (79,358 ) $ (507,006 )

Nature of Business and Basis 16

Nature of Business and Basis of Presentation (Details Narrative)	1 Months Ended
	Jan. 31, 2017USD ($)
Verus Foods, Inc. [Member]
Contract cost	$ 78,000,000

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Jan. 31, 2018	Oct. 31, 2017
Cash equivalents
Allowance for doubtful accounts	$ 119,106	$ 45,933
Number of outstanding warrants to purchase shares of common stock	16,786,467
Number of shares dilute future earnings per share	256,000,000
Monaker Group, Inc. [Member]
Available for sale securities	$ 32,270

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Oct. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ 507,006	$ 1,003,452
Working capital deficit	774,762
Accumulated deficit	$ 23,910,969		$ 23,403,963

Segment Reporting (Details Narr

Segment Reporting (Details Narrative)	3 Months Ended
	Jan. 31, 2018Segments
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Reporting - Schedule of

Segment Reporting - Schedule of Operating Results of the Reportable Segments (Details) - USD ($)	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Sales	$ 1,066,141	$ 101,633
Cost of Sales	957,990	49,796
Gross Profit	108,151	51,837
Sales and Marketing	133	1,050
Salaries and benefits	182,583	670,831
Legal and professional fees	115,015	232,636
General and administrative expense	78,585	43,354
Total Operating Expenses	376,316	947,871
Loss From Operations	(268,165)	(896,033)
Interest expense	(49,358)	(83,703)
Gain (Loss) on legal settlement	(189,483)
Total Other Income (Expense)	(238,841)	(107,419)
Net Income (Loss)	(507,006)	$ (1,003,452)
Real Estate [Member]
Sales	70,016
Cost of Sales	19,800
Gross Profit	50,216
Sales and Marketing	133
Salaries and benefits	35,375
Legal and professional fees	47,000
General and administrative expense	12,602
Total Operating Expenses	95,110
Loss From Operations	(44,894)
Interest expense
Gain (Loss) on legal settlement	132,370
Total Other Income (Expense)	132,370
Net Income (Loss)	87,476
Food Products [Member]
Sales	996,125
Cost of Sales	938,190
Gross Profit	57,935
Sales and Marketing
Salaries and benefits	147,208
Legal and professional fees	68,015
General and administrative expense	65,983
Total Operating Expenses	281,206
Loss From Operations	(223,271)
Interest expense
Gain (Loss) on legal settlement	(351,853)
Total Other Income (Expense)	(351,853)
Net Income (Loss)	(575,124)
Other [Member]
Sales
Cost of Sales
Sales and Marketing
Salaries and benefits
General and administrative expense
Interest expense	(49,358)
Gain (Loss) on legal settlement	(30,000)
Total Other Income (Expense)	(79,358)
Net Income (Loss)	$ (79,358)

Convertible Notes Payable (Deta

Convertible Notes Payable (Details Narrative) - USD ($)	Jan. 26, 2018	Dec. 28, 2017	Dec. 21, 2017	Dec. 31, 2016	Dec. 31, 2016	Jan. 31, 2018	Jan. 31, 2017	Oct. 31, 2017
Convertible notes payable outstanding						$ 1,427,027		$ 975,250
Convertible debt, principal amount						$ 196,662
Accrued interest rate						1279300.00%
Accrued interest						$ 12,793
Professional fees						$ 4,750
Conversion of debt converted into shares						99,517,696
Repayment of convertible debt						$ 40,000
Series C Convertible Preferred Stock [Member]
Conversion of debt converted into shares					25,000
Conversion of debt converted value					$ 25,000
Debt instrument, convertible, conversion price				$ 1	$ 1
Common Stock [Member]
Conversion of debt converted into shares				69,368,539
Conversion of debt converted value				$ 1,105,000
EMA Financial, LLC [Member]
Convertible debt, principal amount			$ 100,000
Accrued interest rate			8.00%
Debt instrument, maturity date			Dec. 21, 2018
Convertible discount rate			40.00%
Power Up Lending Group Ltd [Member]
Convertible debt, principal amount		$ 53,000
Accrued interest rate		8.00%
Debt instrument, maturity date		Oct. 5, 2018
Convertible discount rate		39.00%
Repayment of convertible debt						57,952
Payment of principal						40,000
Payment of accrued interest						$ 17,952
Donald P. Monaco Insurance Trust [Member]
Convertible debt, principal amount	$ 530,000
Accrued interest rate	12.00%
Debt instrument, maturity date	Jan. 22, 2019

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Jan. 29, 2018	Dec. 22, 2017	Dec. 31, 2016	Jan. 31, 2018	Oct. 31, 2017
Number of shares authorized				1,625,000,000
Common stock, shares authorized				1,500,000,000	1,500,000,000
Common stock, par value				$ 0.001	$ 0.001
Common stock, shares outstanding				359,447,396	249,369,810
Preferred stock, shares authorized				320,000,000
Preferred stock, par value				$ 0.001
Debt principal amount				$ 196,662
Accrued interest				12,793
Professional fees				$ 4,750
Conversion of debt converted into shares				99,517,696
Warrants to purchase common stock				16,786,467
Dilutive common stock				256,000,000
Monaker [Member]
Number of shares issued		10,559,890
NestBuilder [Member]
Number of shares cancelled	4,163,315
Series A Convertible Preferred Stock [Member]
Preferred stock, shares authorized				120,000,000	120,000,000
Preferred stock, par value				$ 0.001	$ 0.001
Preferred stock, shares outstanding				44,570,101	100,000
Series A Convertible Preferred Stock [Member] | Monaker [Member]
Number of shares issued		44,470,101
Series B Convertible Preferred Stock [Member]
Preferred stock, shares authorized				1,000,000	1,000,000
Preferred stock, par value				$ 0.001	$ 0.001
Preferred stock, shares outstanding
Series C Convertible Preferred Stock [Member]
Preferred stock, shares authorized				1,000,000	1,000,000
Preferred stock, par value				$ 0.001	$ 0.001
Preferred stock, shares outstanding				160,000	160,000
Conversion of debt converted into shares			25,000

Litigation (Details Narrative)

Litigation (Details Narrative) - USD ($)	Jan. 29, 2018	Dec. 22, 2017	Jan. 31, 2018
Monaker [Member]
Litigation settlement amount			$ 1,300,000
Number of shares issued		10,559,890
Monaker [Member] | Common Stock [Member]
Number of shares issued		10,559,890
Monaker [Member] | Series A Convertible Preferred Stock [Member]
Number of shares issued		44,470,101
NestBuilder [Member]
Payments for litigation settlement	$ 30,000	$ 100,000
Number of shares returned	4,163,315