Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 31, 2019 | Mar. 11, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Skkynet Cloud Systems, Inc. | |
Entity Central Index Key | 0001546853 | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 51,363,022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 | |
Entity Emerging Growth Company | true | |
Entity Small Business | true | |
Entity Ex Transition Period | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jan. 31, 2019 | Oct. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 669,597 | $ 677,303 |
Accounts receivable | 98,560 | 203,052 |
Inventory | 2,319 | 2,319 |
Prepaid | 45,687 | 7,431 |
Total current assets | 816,163 | 890,105 |
Property and equipment, net of accumulated depreciation of $77,516 and $81,713 respectively | 8,549 | 6,060 |
Other assets | 6,006 | 7,221 |
Total Assets | 830,718 | 903,386 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 118,209 | 74,701 |
Accrued liabilities - related party | 80,338 | 84,210 |
Deferred Income | 79,296 | 88,386 |
Total current liabilities | 277,843 | 247,297 |
Total liabilities | 277,843 | 247,297 |
Stockholders' Equity: | ||
Preferred stock value | 5 | 5 |
Common stock; $0.001 par value, 70,000,000 shares authorized, 51,363,022 and 51,363,022 shares issued and outstanding, respectively | 51,364 | 51,364 |
Additional paid-in capital | 5,892,569 | 5,832,725 |
Accumulated Other Comprehensive loss | (83,389) | (74,643) |
Accumulated deficit | (5,501,335) | (5,347,023) |
Total shareholders' equity | 552,875 | 656,089 |
Total Liabilities and Stockholders' Equity | 830,718 | 903,386 |
Series B preferred stock [Member] | ||
Stockholders' Equity: | ||
Preferred stock value | $ 193,661 | $ 193,661 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jan. 31, 2019 | Oct. 31, 2018 |
ASSETS | ||
Property and equipment, Accumulated depreciation | $ 77,516 | $ 81,713 |
Stockholders' Deficit: | ||
Preferred stock, Par value | $ 0.001 | $ 0.001 |
Preferred stock, Authorized | 5,000,000 | 5,000,000 |
Preferred stock, Issued | 5,000 | 5,000 |
Preferred stock, Outstanding | 5,000 | 5,000 |
Common stock, Par value | $ 0.001 | $ 0.001 |
Common stock, Authorized | 70,000,000 | 70,000,000 |
Common stock, Issued | 51,363,022 | 51,363,022 |
Common stock, Outstanding | 51,363,022 | 51,363,022 |
Series B preferred stock [Member] | ||
Stockholders' Deficit: | ||
Preferred stock, Par value | $ 0.001 | $ 0.001 |
Preferred stock, Authorized | 500,000 | 500,000 |
Preferred stock, Issued | 193,661 | 193,661 |
Preferred stock, Outstanding | 193,661 | 193,661 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Consolidated Statements Of Operations And Other Comprehensive Income Loss | ||
Revenue | $ 293,129 | $ 382,879 |
Cost of goods sold | 6,154 | 13,401 |
Gross Profit | 286,975 | 369,478 |
Operating Expenses: | ||
General and administrative expense | 447,604 | 517,809 |
Depreciation and amortization | 120 | 126 |
Loss from operations | (160,749) | (148,457) |
Other Income (Expenses): | ||
Other income | 1 | |
Currency exchange | 6,436 | (20,645) |
Total other income (expense) | 6,437 | (20,465) |
Net loss | (154,312) | (169,102) |
Preferred dividends | (2,905) | (2,905) |
Net loss to common shareholders | (157,217) | (172,007) |
Foreign currency translation adjustment | (8,746) | 36,325 |
Comprehensive (loss) | $ (165,963) | $ (135,682) |
Net loss per common share attributable to common stockholders (basic and diluted) | $ 0 | $ 0 |
Weighted average common shares outstanding (basic and diluted): | 51,363,022 | 51,287,266 |
CONSOLDIATED STATEMENTS OF CASH
CONSOLDIATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (154,312) | $ (169,102) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization expense | 120 | 126 |
Option based compensation | 59,844 | 102,912 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 104,492 | (24,825) |
Accounts payable and accrued expense | 43,508 | 19,521 |
Inventory | (101) | |
Accrued liability-related party | (3,872) | 68,312 |
Prepaid and other assets | (37,041) | (37,580) |
Deferred revenue | (9,090) | 11,276 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 3,649 | (29,461) |
Effect of exchange rate changes on cash | (11,355) | 32,139 |
Net increase (decrease) in cash | (7,706) | 2,678 |
Cash - beginning of year | 677,303 | 582,671 |
Cash - end of year | 669,597 | 585,349 |
SUPPLEMENTAL CASH FLOWS INFORMATION | ||
Interest paid | ||
Income taxes paid | ||
NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Conversion of accrued compensation to equity- related parties | $ 67,414 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended |
Jan. 31, 2019 | |
Notes to Financial Statements | |
Note 1 - ORGANIZATION AND BASIS OF PRESENTATION | Skkynet Cloud Systems, Inc. (“Skkynet” or “the Company”) is a Nevada corporation formed on August 31, 2011 and headquartered in Toronto, Canada. Skkynet operates its business through its wholly-owned subsidiaries Cogent Real-Time Systems, Inc. (“Cogent”), Skkynet Corp. (Canada), Skkynet, Inc. (USA) and Skkynet Japan (Japan). Skkynet was formed primarily for the purpose of taking the existing business lines of Cogent and its current and future customers and integrating these businesses with Cloud based systems. We also intend to expand the areas of business activity to which the kinds of products and services we provide are applied. On November 1, 2014, the Company acquired Skkynet Japan NiC as a wholly owned subsidiary. On February 1, 2015, the Company formed a wholly owned US subsidiary Skkynet, Inc., and a wholly owned Canadian subsidiary Skkynet Corp. On July 30, 2015, the Company designated 500,000 shares of the preferred stock as Series B Convertible preferred. The Series B shares have a par value of $0.001 and issue value of $1.00 per share. The series B is convertible by the holder into common stock at $1.35 per share. The Company may, any time at its option, redeem the Series B shares at their stated value. The Series B preferred shares hold a 6% per annum cumulative dividend. On July 30, 2015, the Company issued 193,661 shares of Series B convertible preferred stock to three related parties in exchange for the outstanding notes payable and accrued interest of $193,661. Dividends are not paid. The Company has accounted for $2,905 in Series B dividends which increases the loss to common shareholders from $154,312 to $157,217 for the three month period ended January 31, 2019. The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (the “SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s October 31, 2018 Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year end October 31, 2018 as reported on Form 10-K, have been omitted. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jan. 31, 2019 | |
Notes to Financial Statements | |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES | Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency in presentation with the current year presentation to better present this year’s grouping. The footnotes were added to present the sales by geographic area and line of business. These reclassifications had no effect on the reported results of operations. Recently Adopted Accounting Pronouncements In April 2016, the FASB issued ASU 2016–10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments in this Update do not change the core principle of the guidance in Topic 606. Rather, the amendments in this Update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. Topic 606 includes implementation guidance on (a) contracts with customers to transfer goods and services in exchange for consideration and (b) determining whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time). The amendments are intended to render more detailed implementation guidance with the expectation to reduce the degree of judgement necessary to comply with Topic 606. ASC Topic 606 prescribes a new five-step model entities should follow in order to recognize revenue in accordance with the core principle. These five steps are: 1. Identify the contract(s) with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue when (or as) the entity satisfied the performance obligations. The Company has five revenue streams, each of which the revenue is recognized in accordance to the five steps included in topic 606 . The revenue streams are: 1. Sale of software direct to the end customer 2. Sale of software through distributors and channel partners 3. Maintenance support services 4. Cloud services 5. Hardware sales (Skkynet Japan only) Effective November 1, 2018 the Company implemented the transition using the modified retrospective method of transition. Under this method the determination date of open contracts which could affect any adjustments was November 1, 2018. The open contracts at the time period are the unfulfilled portions of the maintenance contracts. Based on the cut off treatment of the recognition of revenue on the open contract being determined at the end of the previous period and being no changes in the open obligation requirements, the Company determined there are no adjustments in the value of the revenue recognized from these contracts. As part of the revenue recognition reporting the Company reports revenue by product line and geographic area. During the three month periods ended January 31, 2019 and 2018 the revenue by product line was as follows: Category 2019 2018 Product sales 192,331 286,815 Support 92,567 96,064 Other 8,231 -- Total 293,129 382,879 The Company sells its products on a worldwide basis. During the three month periods ended January 31, 2019 and 2018 and the Company’s revenue resulted in the following amounts geographically: Area Percentage 2019 2018 North America 31 % 90,870 73,895 Europe 44 % 128,977 144,096 Asia 17 % 49,832 92,369 Middle East-Africa 5 % 14,656 42,960 South America 3 % 8,794 29,559 Total 100 % 293,129 382,879 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jan. 31, 2019 | |
Notes to Financial Statements | |
NOTE 3 - RELATED PARTY TRANSACTIONS | Sakura Software, a corporation owned by our CEO and Chairman of the Board of Directors, Andrew S. Thomas, and Benford Consultancy, a corporation owned by our COO and a member of our Board of Directors, Paul Benford, own, respectively, 72.34% and 27.66% of the issued and outstanding shares of Real Innovations International LLC, (“Real Innovations”) a corporation organized under the laws of Nevis, West Indies. In March 2012, Cogent, our operating subsidiary, assigned all of its intellectual property including the pending patent applications for its real-time data transmission and display technology (the “IP”) to Real Innovations under an assignment of intellectual property agreement (the “Assignment Agreement”). In return for the assignment Real Innovations required a one-time payment of $30,000 to Cogent. Cogent elected to forgo the payment allowing Real Innovations to offset future expenses against the payment. There is no ongoing royalty payment or other form of compensation from Real Innovations to Cogent under the Assignment Agreement. Real Innovations, in turn, entered into a master intellectual property license agreement (the “License Agreement”) with Cogent for all of the same IP. Under the License Agreement Real Innovations granted a royalty-free license in perpetuity to Cogent for the use and exploitation of the IP in return for which Cogent agreed to: (i) pay all operating expenses of Real Innovations incurred in connection with the continued prosecution of pending patent applications and others that may be prepared; (ii) prosecute all claims for infringement of the IP; (iii) defend and indemnify Real Innovations from and against all claims of infringement of the IP asserted by third parties against Real Innovations, Cogent or our Company; (iv) purchase liability insurance in favor of Real Innovations for this purpose. Under the termination provision of the licenses agreement, there is no unilateral right of termination. Termination may occur by mutual consent of the parities, the Company ceasing doing business, by breach by the Company or by the Company failing to maintain the license and the support to prosecute and protect the license under applicable laws. Under the License Agreement, Messrs. Andrew S. Thomas and Paul Benford will benefit indirectly from their indirect ownership of all of the shares of Real Innovations to the extent of any such payments or other undertakings by Cogent on behalf of Real Innovations, but the exact amount of these benefits cannot be determined at this time. During the three month periods ended January 31, 2019 and 2018 the Company recognized but did not pay dividends of $2,905 and $2,905, respectively. As of January 31, 2019, and October 31, 2018, the Company had the following outstanding accrued liabilities due to related parties: As of January 31, 2019 October 31, 2018 Accrued Commissions $ 32,146 $ 36,772 Accrued compensation $ 48,192 $ 47,438 Total accrued liabilities and accrued expense $ 80,338 $ 84,210 |
OPTIONS
OPTIONS | 3 Months Ended |
Jan. 31, 2019 | |
Notes to Financial Statements | |
NOTE 4 - OPTIONS | The Company, under its 2012 Stock Option Plan, issues options to various officers, directors, and consultants. The options vest in equal annual installments over a five year period with the first 20% vested when the options are granted. All of the options are exercisable at a purchase price based on the last trading price of the Company’s common stock. The Company has elected to expense the options over the life of the option as stock based compensation. The expense is calculated with a Black Scholes model to reach the fair value over the length of each option. The total value calculated for option expense is $2,780,512. During the three month period ended January 31, 2019, the Company expensed $59,844 for options. The unrecognized future balance to be expensed over the term of the options is $797,019. The following sets forth the options granted and outstanding as of January 31, 2019: Options Weighted Average Exercise price Weighted Average Remaining Contract Life Granted Options Exercisable Intrinsic value Outstanding at October 31, 2018 7,772,200 0.34 5.27 6,317,750 2,241,496 Granted -- -- -- -- -- Exercised -- -- -- -- -- Forfeited/Expired by termination -- -- -- -- -- Outstanding at January 31, 2019 7,772,200 0.34 5.05 6,429,880 1,336,896 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jan. 31, 2019 | |
Notes to Financial Statements | |
NOTE 5 - COMMITMENTS AND CONTINGENCIES | The Company leases office space located at 2233 Argentia Road Suite 306 Mississauga, Ontario Canada L5N 2X7. During May 2017, the Company signed a new 5 year lease for the Company’s office being effective on August 1, 2017 through July 31, 2022. The lease is for approximately 2,210 square feet of office space with a gross monthly rental cost including common area charges of $4,097. The yearly rental obligations including the lease agreements are as follows: Fiscal Year 2019 $ 36,873 2020 $ 49,164 2021 $ 49,164 2022 $ 36,873 Total $ 172,074 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jan. 31, 2019 | |
Significant Accounting Policies Policies | |
Reclassification of Prior Year Presentation | Certain prior year amounts have been reclassified for consistency in presentation with the current year presentation to better present this year’s grouping. The footnotes were added to present the sales by geographic area and line of business. These reclassifications had no effect on the reported results of operations. |
Recently Adopted Accounting Pronouncements | In April 2016, the FASB issued ASU 2016–10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments in this Update do not change the core principle of the guidance in Topic 606. Rather, the amendments in this Update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. Topic 606 includes implementation guidance on (a) contracts with customers to transfer goods and services in exchange for consideration and (b) determining whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time). The amendments are intended to render more detailed implementation guidance with the expectation to reduce the degree of judgement necessary to comply with Topic 606. ASC Topic 606 prescribes a new five-step model entities should follow in order to recognize revenue in accordance with the core principle. These five steps are: 1. Identify the contract(s) with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue when (or as) the entity satisfied the performance obligations. The Company has five revenue streams, each of which the revenue is recognized in accordance to the five steps included in topic 606 . The revenue streams are: 1. Sale of software direct to the end customer 2. Sale of software through distributors and channel partners 3. Maintenance support services 4. Cloud services 5. Hardware sales (Skkynet Japan only) Effective November 1, 2018 the Company implemented the transition using the modified retrospective method of transition. Under this method the determination date of open contracts which could affect any adjustments was November 1, 2018. The open contracts at the time period are the unfulfilled portions of the maintenance contracts. Based on the cut off treatment of the recognition of revenue on the open contract being determined at the end of the previous period and being no changes in the open obligation requirements, the Company determined there are no adjustments in the value of the revenue recognized from these contracts. As part of the revenue recognition reporting the Company reports revenue by product line and geographic area. During the three month periods ended January 31, 2019 and 2018 the revenue by product line was as follows: Category 2019 2018 Product sales 192,331 286,815 Support 92,567 96,064 Other 8,231 -- Total 293,129 382,879 The Company sells its products on a worldwide basis. During the three month periods ended January 31, 2019 and 2018 and the Company’s revenue resulted in the following amounts geographically: Area Percentage 2019 2018 North America 31 % 90,870 73,895 Europe 44 % 128,977 144,096 Asia 17 % 49,832 92,369 Middle East-Africa 5 % 14,656 42,960 South America 3 % 8,794 29,559 Total 100 % 293,129 382,879 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Significant Accounting Policies | |
Revenue by product lines and geographic areas | Category 2019 2018 Product sales 192,331 286,815 Support 92,567 96,064 Other 8,231 -- Total 293,129 382,879 Area Percentage 2019 2018 North America 31 % 90,870 73,895 Europe 44 % 128,977 144,096 Asia 17 % 49,832 92,369 Middle East-Africa 5 % 14,656 42,960 South America 3 % 8,794 29,559 Total 100 % 293,129 382,879 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Related Party [Member] | |
Outstanding accrued liabilities due to related parties | As of January 31, 2019 October 31, 2018 Accrued Commissions $ 32,146 $ 36,772 Accrued compensation $ 48,192 $ 47,438 Total accrued liabilities and accrued expense $ 80,338 $ 84,210 |
OPTIONS (Tables)
OPTIONS (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Options Tables | |
Options granted and outstanding | Options Weighted Average Exercise price Weighted Average Remaining Contract Life Granted Options Exercisable Intrinsic value Outstanding at October 31, 2018 7,772,200 0.34 5.27 6,317,750 2,241,496 Granted -- -- -- -- -- Exercised -- -- -- -- -- Forfeited/Expired by termination -- -- -- -- -- Outstanding at January 31, 2019 7,772,200 0.34 5.05 6,429,880 1,336,896 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Commitments And Contingencies Tables | |
Lease obligations | Fiscal Year 2019 $ 36,873 2020 $ 49,164 2021 $ 49,164 2022 $ 36,873 Total $ 172,074 |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jul. 30, 2015 | Jan. 31, 2019 | Jan. 31, 2018 | Oct. 31, 2018 | |
State of incorporation | Nevada | |||
Date of Incorporation | Aug. 31, 2011 | |||
Preferred stock, authorized | 5,000,000 | 5,000,000 | ||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||
Preferred dividends | $ (2,905) | $ (2,905) | ||
Series B preferred stock [Member] | ||||
Preferred stock, authorized | 500,000 | 500,000 | 500,000 | |
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Preferred stock, issued value | 1 | |||
Conversion price per share | $ 1.35 | |||
Dividend rate | 6.00% | |||
Series B preferred stock [Member] | Three Related Parties [Member] | ||||
Preferred stock, issued for debt conversion | 193,661 | |||
Debt instrument converted amount | $ 193,661 | |||
Description of change in loss due to dinidend | <font style="font: 10pt Times New Roman, Times, Serif">Increases the loss to common shareholders from $154,312 to $157,217 for the three month period ended January 31, 2019.</font></p>" id="sjs-B17"><p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Increases the loss to common shareholders from $154,312 to $157,217 for the three month period ended January 31, 2019.</font></p> | |||
Preferred dividends | $ (2,905) |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Significant Accounting Policies Details Abstract | ||
Product sales | $ 192,331 | $ 286,815 |
Support | 92,567 | 96,064 |
Other | 8,231 | |
Total revenue | $ 293,129 | $ 382,879 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Total revenue | $ 293,129 | $ 382,879 |
Revenue percentage | 100.00% | |
North America [Member] | ||
Total revenue | $ 90,870 | 73,895 |
Revenue percentage | 31.00% | |
Europe [Member] | ||
Total revenue | $ 128,977 | 144,096 |
Revenue percentage | 44.00% | |
Asia [Member] | ||
Total revenue | $ 49,832 | 92,369 |
Revenue percentage | 17.00% | |
Middle East [Member] | ||
Total revenue | $ 14,656 | 42,960 |
Revenue percentage | 5.00% | |
South America [Member] | ||
Total revenue | $ 8,794 | $ 29,559 |
Revenue percentage | 3.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Jan. 31, 2019 | Oct. 31, 2018 |
Related Party Transactions Details | ||
Accrued liabilities related parties | $ 32,146 | $ 36,772 |
Accrued commissions | 48,192 | 47,438 |
Total accrued liabilities | $ 80,338 | $ 84,210 |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Preferred dividends | $ (2,905) | $ (2,905) |
One time payment to be made by Real Innovations in return of assignment to Cogent | $ 30,000 | |
Andrew Thomas [Member] | ||
Ownership percentage in Real Innovations hold by related parties | 72.34% | |
Paul Benford [Member] | ||
Ownership percentage in Real Innovations hold by related parties | 27.66% |
OPTIONS (Details)
OPTIONS (Details) | 3 Months Ended |
Jan. 31, 2019USD ($)$ / sharesshares | |
Stock Options | |
Shares outstanding | 7,772,200 |
Shares granted | |
Shares exercised | |
Forfeited/expired by termination | |
Shares outstanding | 7,772,200 |
Weighted Average Exercise Price | |
Weighted average exercise price of share outstanding | $ / shares | $ 0.34 |
Weighted average exercise price of share granted | $ / shares | |
Weighted average exercise price of share exercised | $ / shares | |
Weighted average exercise price of share forfeited/expired by termination | $ / shares | |
Weighted average exercise price of share outstanding | $ / shares | $ 0.34 |
Weighted Average Remaining Contractual Terms | |
Weighted average remaining contractual terms of share outstanding | 5 years 3 months 8 days |
Weighted average remaining contractual terms of share outstanding | 5 years 18 days |
Shares outstanding | 6,317,750 |
Shares granted | |
Shares exercised | |
Shares outstanding | 6,317,750 |
Intrinsic Value | |
Aggregate intrinsic value of share outstanding | $ | $ 2,241,496 |
Aggregate intrinsic value of share outstanding | $ | $ 1,336,896 |
OPTIONS (Details Narrative)
OPTIONS (Details Narrative) - USD ($) | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Options | ||
Total options expense | $ 2,780,512 | |
Option based compensation | 59,844 | $ 102,912 |
Unrecognized future expenses | $ 797,019 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | Jan. 31, 2019USD ($) |
Commitments And Contingencies | |
2019 | $ 36,873 |
2020 | 49,164 |
2021 | 49,164 |
2022 | 36,873 |
Total | $ 172,074 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Narrative) - August 1, 2017 through July 31, 2022 [Member] | 1 Months Ended |
May 31, 2017USD ($)Integer | |
Office space lease | Integer | 2,210 |
Monthly rental expense | $ | $ 4,097 |
Lease expiration | Jul. 31, 2022 |
Lease Term | 5 years |