Sunset Island (SIGO) 10-Q 27 Aug 19 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jan. 31, 2018	Jul. 01, 2019
Document And Entity Information
Entity Registrant Name	Sunset Island Group
Entity Central Index Key	0001689066
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	No
Document Period End Date	Jan. 31, 2018
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2018
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		5,386,771

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet - USD ($)	Jan. 31, 2018	Oct. 31, 2017
Cash and cash equivalents	$ 2,740	$ 24,656
Total Current Assets	2,740	24,656
Deposit	14,000	14,000
Total Assets	16,740	38,656
Accounts payable and accrued liabilities	18,240	25,817
Accrued interest - related party	497
Dividend payable	46,029	46,029
Due to related party	2,885	2,885
Convertible note, net of unamortized discount of $33,123	136,877
Current portion of notes payable - related party	157,200
Total Current Liabilities	361,728	74,731
Notes payable - related party	272,200	330,200
Total Liabilities	633,928	404,931
Commitments and Contingencies (note 7)
Stockholders' Equity (Deficit)
Preferred stock, $0.0001 par value, 15,000,000 shares authorized;
Common Stock, par value $0.0001, 27,000,000 shares authorized, 5,371,771 and 4,871,771 shares issued and outstanding, respectively	537	487
Additional paid in capital	463,403	334,168
Subscriptions received - shares to be issued		50,000
Accumulated deficit	(1,081,588)	(751,390)
Total Stockholders' Deficit	(617,188)	(366,275)
Total Liabilities and Stockholders' Deficit	16,740	38,656
Series A Preferred Stock [Member]
Stockholders' Equity (Deficit)
Preferred stock, $0.0001 par value, 15,000,000 shares authorized;	460	460
Series B Preferred Stock [Member]
Stockholders' Equity (Deficit)
Preferred stock, $0.0001 par value, 15,000,000 shares authorized;
Series C Preferred Stock [Member]
Stockholders' Equity (Deficit)
Preferred stock, $0.0001 par value, 15,000,000 shares authorized;

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheet (Parenthetical) - USD ($)	Jan. 31, 2018	Oct. 31, 2017
Stockholders' Equity (Deficit)
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred Stock, Shares designated	15,000,000	15,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	27,000,000	27,000,000
Common stock, shares issued	5,371,771	4,871,771
Common stock, shares outstanding	5,371,771	4,871,771
Convertible note, net of unamortized discount	$ 33,123
Series A Preferred Stock [Member]
Stockholders' Equity (Deficit)
Preferred Stock, Shares designated	4,600,000	4,600,000
Preferred stock, shares issued	4,600,000	4,600,000
Preferred stock, shares outstanding	4,600,000	4,600,000
Series B Preferred Stock [Member]
Stockholders' Equity (Deficit)
Preferred Stock, Shares designated	8,000,000	8,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series C Preferred Stock [Member]
Stockholders' Equity (Deficit)
Preferred Stock, Shares designated	500,000	500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statement of Operations (unaudited) - USD ($)	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Condensed Consolidated Statement of Operations (unaudited)
Revenue
Operating Expenses
Labor	184,978
Supplies	27,575
General and administrative expenses	42,547	980
Lease	54,930
Lab testing	250
Utilities	3,467
Professional fees	2,036
Total Operating Expenses	315,783	980
Loss from operations	(315,783)	(980)
Other Expenses
Interest expense	14,415
Net Loss	$ (315,783)	$ (980)
Net loss per common share - basic and diluted	$ (0.06)	$ 0
Weighted average number of common shares outstanding	5,371,771	50,031,771

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Stockholders' Equity (Deficit) - USD ($)	Total	Series A Preferred Stock Shares	Common Stock Shares	Additional Paid-In Capital	Common Stock Subscription Received	Accumulated Deficit
Balance - shares at Oct. 31, 2016			50,031,771
Balance - amount at Oct. 31, 2016	$ 970		$ 5,003	$ 5,997		$ (10,030)
Net loss for the period	(980)					(980)
Balance - shares at Jan. 31, 2017			50,031,771
Balance - amount at Jan. 31, 2017	(10)		$ 5,003	5,997		(11,010)
Balance - shares at Oct. 31, 2017		4,600,000	4,871,771
Balance - amount at Oct. 31, 2017	(366,275)	$ 460	$ 487	334,168	50,000	(751,390)
Common stock issued for cash, shares			500,000
Net loss for the period	(330,198)					(330,198)
Common stock issued for cash, amount			50	49,950	(50,000)
Beneficial conversion feature	9,444			9,444
Contribution	69,841			69,841
Balance - shares at Jan. 31, 2018		4,600,000	5,371,771
Balance - amount at Jan. 31, 2018	$ (617,188)	$ 460	$ 537	$ 463,403		$ (1,081,588)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Cash Flows From Operating Activities
Net loss	$ (315,783)	$ (980)
Adjustments to reconcile net loss to net cash used in operating activities
Amortization of debt discount	11,321
Change in operating assets and liabilities:
Accounts payable and accrued liabilities	(7,577)
Accrued interest - related party	497
Net Cash Used in Operating Activities	(325,957)	(980)
Cash Flows From Financing Activities:
Bank overdraft		10
Repayment of promissory notes - related party	99,200
Contribution	69,841
Proceeds from convertible note	135,000
Net Cash Provided by Financing Activities	304,041	10
Net change in cash and cash equivalents	(21,916)	(970)
Cash and cash equivalents, beginning of period	24,656	970
Cash and cash equivalents, end of period	2,740
Supplemental cash flow information:
Cash paid for interest
Cash paid for taxes
Non-cash financing transactions:
Common stock issued	50,000
Beneficial conversion feature	$ 9,444

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Jan. 31, 2018
DESCRIPTION OF BUSINESS
NOTE 1- DESCRIPTION OF BUSINESS	Sunset Island Group, Inc. was originally incorporated in the State of Colorado on September 29, 2005 under the name of Titan Global Entertainment, Inc. On May 7, 2008, the Company changed its name to Sunset Island Group. Our business and corporate address is 555 N. El Camino Real #A418, San Clemente CA 82672, our phone number is (424) 239-6230. Our corporate website is www.sunsetislandgroup.com. We have one subsidiary, VBF Brands, Inc. (“VBF Brands”), a California, corporation. Our Business The State of California requires company engaged in the cannabis operations to be licensed by the State of California. The Company is regulated by the following entities in California The Bureau of Cannabis Control (Bureau) is the lead agency in regulating commercial cannabis licenses for medical and adult-use cannabis in California. The Bureau is responsible for licensing retailers, distributors, testing labs, microbusinesses, and temporary cannabis events. CalCannabis Cultivation Licensing, a division of the California Department of Food and Agriculture (CDFA), ensures public safety and environmental protection by licensing and regulating commercial cannabis cultivators in California. Manufactured Cannabis Safety Branch, a division of the California Department of Public Health, (CDPH). MCSB is responsible for regulation of all commercial cannabis manufacturing in California. MCSB strives to protect public health and safety by ensuring commercial cannabis manufacturers operate safe, sanitary workplaces and follow good manufacturing practices to produce products that are free of contaminants, meet product guidelines and are properly packaged and labeled. These three divisions require the company to license packages and be compliant with all local, state and environmental regulations. The Company estimates that the cost of licensing each year will be approximately $50,000 - $100,000 per year. The amount will vary year to year depending on what changes have been made to regulations and if any upgrades would be required to be made on the property. The Company currently is licensed by the State of California for the following activities: License Type License Number Cannabis Cultivation PAL18-0000119 (Provisional) Cannabis Cultivation Nursery TAL18-0008563 Medical Use Manufacturing License CDPH-T00000243 Adult Use Manufacturing License CDPH-T00000244 Adult Use and Medicinal Distribution C11-0000102-LIC The Company operates through its wholly owned subsidiary VBF Brands. VBF Brands operated as a Nonprofit Mutual Benefit entity until December 21, 2017 when it was converted to a For Profit entity. Prior to December 21, 2017, VBF Brands operated as a collective under the Compassionate Use Act. Since VBF Brands was operating as a Nonprofit until December 21, 2017, the Company determined that it cannot book any revenue from the activities associated while it operated as collective under the Compassionate Use Act and as a non-profit. However, the Company will book the revenue generated by VBF Brands since December 21, 2017. The Company previously was operating Battle Mountain Genetics; however, upon the conversion of VBF Brands to a for profit entity the Company has been operating all of its cannabis actives through VBF Brands and Battle Mountain Genetics ceased operations. Reverse Merger On October 17, 2016, the Company executed a reverse merger with Battle Mountain Genetics, Inc. On October 17, 2016, the Company entered into an Agreement whereby the Company acquired 100% of Battle Mountain Genetics, Inc, in exchange for 50,000,000 shares of Sunset Island Group common stock. Immediately prior to the reverse merger, there were 30,894 common shares outstanding and no shares of Preferred shares outstanding. After the reverse merger, the Company had 50,031,771 Common shares outstanding and no shares of Preferred shares outstanding. Battle Mountain Genetics was incorporated in the State of California on September 29, 2016. Battle Mountain Genetics, Inc. was the surviving Company and became a wholly owned subsidiary of Sunset Island Group. Sunset Island Group had no operations, assets or liabilities prior to the reverse merger.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Jan. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Basis of Presentation of Interim Financial Statements The accompanying interim unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended January 31, 2018 are not necessarily indicative of the results that may be expected for the year ending October 31, 2018. Notes to the unaudited interim consolidated financial statements that would substantially duplicate the disclosures contained in the audited consolidated financial statements for fiscal year 2017 have been omitted. This report should be read in conjunction with the audited consolidated financial statements and the footnotes thereto for the fiscal year ended October 31, 2017 included in the Company’s 10-K as filed with the Securities and Exchange Commission on March 25, 2019. Consolidation Policy The unaudited condensed consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiary, VBF Brands, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates and Assumptions The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and cash equivalents Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired. As of January 31, 2018 and October 31, 2017, cash primarily consists of cash in bank. As of January 31, 2018 and October 31, 2017, cash was $2,740 and $24,656, respectively. Basic and Diluted Net Loss Per Share of Common Stock The Company has adopted ASC Topic 260, “Earnings per Share,” As at January 31, 2018, the Company has potentially 46,000,000 in dilutive securities, from outstanding Series A convertible preferred stock, which were excluded from the computation of diluted net loss per common share as the result of the computation was anti-dilutive. Concentrations of Credit Risk The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables that it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company’s management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited. Financial Instruments The Company follows ASC 820, “ Fair Value Measurements and Disclosures, Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of January 31, 2018. The carrying values of our financial instruments, including, cash and cash equivalents, accounts payable and accrued expenses; and dividend payable and due to related party approximate their fair values due to the short-term maturities of these financial instruments. Related Parties The Company follows ASC 850, “Related Party Disclosures,” Income Taxes We account for income taxes under ASC 740 “ Income Taxes Revenue Recognition The Company recognizes revenue in accordance with “Revenue from Contracts with Customers” (“ASC 606”). ASC 606 requires that the criteria must be met before revenue can be recognized: 1. The parties to the contract have approved the contract (in writing, orally, or in accordance with other customary business practices) and are committed to perform their respective obligations. 2. The Company can identify each party’s rights regarding the goods or services to be transferred. 3. The Company can identify the payment terms for the goods or services to be transferred. 4. The contract has commercial substance (that is, the risk, timing, or amount of the entity’s future cash flows is expected to change as a result of the contract). 5. It is probable that the Company will collect substantially all of the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. In evaluating whether collectability of an amount of consideration is probable, an entity shall consider only the customer’s ability and intention to pay that amount of consideration when it is due. The amount of consideration to which the entity will be entitled may be less than the price stated in the contract if the consideration is variable because the entity may offer the customer a price concession. Research and Development Expenses We follow ASC 730, “Research and Development,” Capitalization Expenditures for repairs and maintenance are charged to operating expense as incurred. Additions and betterments are capitalized. Recently Issued Accounting Standards In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718), Improvements to Nonemployee Share-based Payments (“ASU 2018-07”). This ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The effective date for the standard is for interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted, but no earlier than the Company's adoption date of Topic 606. Under the new guidance, the measurement of nonemployee equity awards is fixed on the grant date. The new guidance is required to be applied retrospectively with the cumulative effect recognized at the date of initial application. The Company is currently evaluating the effect ASU 2018-07 will have on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU modifies the disclosure requirements in Topic 820, Fair Value Measurement, by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements, such as disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This ASU is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The Company is currently evaluating the effect, if any, that the ASU will have on its consolidated financial statements. In September 2017, the FASB has issued Accounting Standards Update (ASU) No. 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” In May 2014, the FASB issued some accounting standards update which modifies the requirements for identifying, allocating, and recognizing revenue related to the achievement of performance conditions under contracts with customers. This update also requires additional disclosure related to the nature, amount, timing, and uncertainty of revenue that is recognized under contracts with customers. This guidance is effective for fiscal and interim periods beginning after December 15, 2017 and is required to be applied retrospectively to all revenue arrangements. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In February 2017, the FASB has issued Accounting Standards Update (ASU) No. 2017-05, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.” In January 2017, the FASB has issued Accounting Standards Update (ASU) No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” Management has considered all recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

GOING CONCERN

GOING CONCERN	3 Months Ended
	Jan. 31, 2018
GOING CONCERN
NOTE 3 - GOING CONCERN	The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not established any source of revenue to cover its operating costs, and it does not have sufficient cash flow to maintain its operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company expects to develop its business and thereby increase its revenue. However, the Company would require sufficient capital to be invested into the Company to acquire the properties to begin generating sufficient revenue to cover the monthly expenses of the Company. Until the Company is able to generate revenue, the Company would be required to raise capital through the sale of its stock or through debt financing. Management may raise additional capital through future public or private offerings of the Company’s stock or through loans from private investors, although there can be no assurance that it will be able to obtain such financing. The Company’s failure to do so could have a material and adverse effect upon it and its shareholders. To this date the Company has relied on the sale of securities to finance its operations and growth. The Company expects to continue to fund the Company through debt and securities sales and issuances until the Company generates enough revenues through the operations. These transactions will initially be through related parties, such as the Company’s officers and directors.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Jan. 31, 2018
RELATED PARTY TRANSACTIONS
NOTE 4 - RELATED PARTY TRANSACTIONS	Note Payable During the three months ended January 31, 2018, the Company issued various 5% notes to a related party, for gross proceeds of $99,200. The notes are due on December 31, 2019. The notes accrue interest at 0% for the initial nine months and then 5% on annual rate thereafter. During the year ended October 31, 2017, the Company issued various 5% notes to Novus Group, for gross proceeds of $363,200. The notes are due on December 31, 2018 or December 31, 2019. The notes accrue interest at 0% for the initial nine months and then 5% on annual rate thereafter. As of January 31, 2018 and October 31, 2017, the notes payable were $272,200 and $330,200 and current portion of notes payable were $157,200 and $0, respectfully. During the three months ended January 31, 2018, the notes payable incurred interest expense of $497. Due to Related Party The loans are due on demand and non-interest bearing. As of January 31, 2018 and October 31, 2017, due to the officer was $2,885.

DIVIDEND PAYABLE

DIVIDEND PAYABLE	3 Months Ended
	Jan. 31, 2018
DIVIDEND PAYABLE
NOTE 5 - DIVIDEND PAYABLE	On August 30, 2017, the Company filed with FINRA its corporate notice for the cash dividend. As of January 31, 2018 and October 31, 2017, the dividend payable was $46,029.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Jan. 31, 2018
STOCKHOLDERS' EQUITY
NOTE 6 - STOCKHOLDERS' EQUITY	Preferred Stock The Company has authorized 15,000,000 preferred shares with a par value of $0.0001 per share. The Board of Directors is authorized to divide the authorized shares of Preferred Stock into one or more series, each of which shall be so designated as to distinguish the shares thereof from the shares of all other series and classes. Series A Preferred Stock The Company has designated 4,600,000 shares of Series A Convertible Preferred Stock. The Series A Preferred Stock may convert into Common Stock at a rate equal to 10 shares of common stock for each share of Series A Preferred stock. In the event that any cash dividend on the Common Stock is declared by the Board, the Board shall simultaneously declare a dividend for each share of Series A Preferred Stock in an amount equal to the product of (i) the per share dividend declared and to be paid in respect of each share of Common Stock and (ii) the amount of common stock the Series A Preferred Stock is convertible into under the designation. As at January 31, 2018 and October 31, 2017, the Company had 4,600,000 shares of Series A Preferred Stock issued and outstanding. Series B Preferred Stock The Company has designated 8,000,000 shares of Series B Preferred Stock, with a face value of $1.00 per share. The Series B Preferred Stock has no conversion right or no voting rights. The shareholders of the Series B Preferred will be entitled to $200 per pound that the Company harvested from its cultivation operations, which is divided by the outstanding shares of the Series B preferred shares. As at January 31, 2018 and October 31, 2017, the Company had no shares of Series B Preferred Stock issued and outstanding. Series C Preferred Stock The Company has designated 500,000 shares of Series C Convertible Preferred Stock. The Series C Preferred Stock has no voting rights. The Series C Preferred Stock may convert into Common Stock at a rate equal to 10 shares of common stock for each share of Series C Preferred stock. In the event that any cash dividend on the Common Stock is declared by the Board, the Board shall simultaneously declare a dividend for each share of Series C Preferred Stock in an amount equal to the product of (i) the per share dividend declared and to be paid in respect of each share of Common Stock and (ii) the amount of common stock the Series C Preferred Stock is convertible into under the designation. As at January 31, 2018 and October 31, 2017, the Company had no shares of Series C Preferred Stock issued and outstanding. Common Stock The Company has authorized 27,000,000 common shares with a par value of $0.0001 per share. Each common share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholders of the corporation is sought. During the three months ended January 31, 2018, the Company issued 500,000 shares of common stock for $50,000 recorded as subscription received at October 31, 2017. As at January 31, 2018 and October 31, 2017, the Company had 5,371,771 and 4,871,771 shares of common stock issued and outstanding, respectively. Additional paid in capital During the three months ended January 31, 2018, the Company’s officer contributed additional paid in capital in the amount of $69,841.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Jan. 31, 2018
COMMITMENTS AND CONTINGENCIES
Note 7 - COMMITMENTS AND CONTINGENCIES	On March 1, 2017, the Company executed a lease for 12,000 square feet green house space and 1,000 square of warehouse space expiring March 31, 2020. The monthly lease is $7,000 per month. During the three months ended January 31, 2018, we incurred total lease expenses of $54,930. The Company has aggregate future minimum lease commitments as of October 31, 2017, as follows: Year ending October 31, 2018 $ 84,000 2019 84,000 2020 35,000 Total $ 203,000

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Jan. 31, 2018
SUBSEQUENT EVENTS
NOTE 8 - SUBSEQUENT EVENTS	On February 1, 2018, the Company issued a convertible promissory note for $220,000. The note is repayable in six months and bears interest at 12% per annum. The note is convertible into common shares at the option of the holder at issuance based on the discounted (50% discount) lowest trading prices of the Company’s shares during 25 days prior to the conversion. On February 20, 2018, Auctus Fund was repaid for the loan and as such it is no longer outstanding and has been retired. The Company had the right to prepay the note at 135% or negotiated the rate down to 125% plus 15,000 shares of restricted stock. The repayment amount was $276,627 plus 15,000 shares of restricted stock. On February 13, 2018, the Company has executed an agreement with St George Investments for $4,245,000 with the initial tranche being $850,000. This note carries an original issuance discount of $385,000 and the Company agreed to pay financing fees of $10,000. The note is repayable in one year and bears interest at 10% per annum. The note is convertible into common shares after six months from the issuance based on the discounted (50% discount) lowest trading prices of the Company’s shares during 25 days prior to the conversion. This Note shall be comprised of thirteen (13) tranches (each, a “ Tranche Initial Tranche Subsequent Tranche On February 20, 2018, the Company received the first tranche from St. George Investments, for net proceeds of $850,000. As part of the initial tranche, the Company repaid Auctus Fund. On February 20, 2018, the Company issued 15,000 shares of common stock to Auctus Funds, LLC as partial repayment for the convertible note issued on February 13, 2018. The total repayment amount was $276,627 and 15,000 shares of common stock. On February 26, 2018, the Company’s Board of Directors approved a cash dividend. The record date for the dividend is March 31, 2018 at a rate of $0.001 per share. On February 28, 2018, the Company issued 360,006 shares of common stock to Greg Tucker for consulting services. The shares were cancelled on July 18, 2018. On March 2, 2018. the Company has agreed to terms with REI Extracts regarding an extraction and distribution joint venture. Equipment has been ordered and is being shipped to the Company’s location in Salinas, California. The operations of the joint venture will be conducted under the Company’s licenses. Additionally, the Company has retained REI Extracts to provide consulting services related to cultivation and to provide a master grower. The new master grower has been working with the Company since January 2018. The grower will be paid based on the yield of sellable flower per bay. The incentive pay shall be paid as follows: Harvested pounds per bay of sellable flower Incentive Bonus 0-40 $0 40-60 $40 per pound in excess of 40 pounds 60-80 $70 per pound in excess of 40 pounds 80-100 $100 per pound in excess of 40 pounds 100+ $120 per pound in excess of 40 pounds On November 30, 2018, the Company issued 333,000 shares of Series C Preferred Stock, valued at $1,000,000, to Job Growing Inc. (“Job Growing”), for 50% of the profits of Job Growing. In the event that Job Growing either: (i) files a Registration Statement to become a reporting company under the Securities Exchange Act of 1934 which becomes effective, or (ii) is acquired by an unrelated third party, then Sunset Island Group has the right to buy a Fifty Percent (50%) equity interest in the Job Growing for One Dollar ($1.00). On February 11, 2019, the Company issued 333,000 shares of Series C Preferred Stock, valued at $1,000,000, to Cicero Travel Group Inc. (“Cicero Travel”) for 33% interest in the net profits of Cicero Travel, 19% equity interest in the common stock of Cicero Travel and the right to purchase an additional 14% equity interest in the common stock of Cicero Travel.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Jan. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation of Interim Financial Statements	The accompanying interim unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended January 31, 2018 are not necessarily indicative of the results that may be expected for the year ending October 31, 2018. Notes to the unaudited interim consolidated financial statements that would substantially duplicate the disclosures contained in the audited consolidated financial statements for fiscal year 2017 have been omitted. This report should be read in conjunction with the audited consolidated financial statements and the footnotes thereto for the fiscal year ended October 31, 2017 included in the Company’s 10-K as filed with the Securities and Exchange Commission on March 25, 2019.
Consolidation Policy	The unaudited condensed consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiary, VBF Brands, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates and Assumptions	The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and cash equivalents	Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired. As of January 31, 2018 and October 31, 2017, cash primarily consists of cash in bank. As of January 31, 2018 and October 31, 2017, cash was $2,740 and $24,656, respectively.
Basic and Diluted Net Loss Per Share of Common Stock	The Company has adopted ASC Topic 260, “Earnings per Share,” As at January 31, 2018, the Company has potentially 46,000,000 in dilutive securities, from outstanding Series A convertible preferred stock, which were excluded from the computation of diluted net loss per common share as the result of the computation was anti-dilutive.
Financial Instruments	The Company follows ASC 820, “ Fair Value Measurements and Disclosures, Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of January 31, 2018. The carrying values of our financial instruments, including, cash and cash equivalents, accounts payable and accrued expenses; and dividend payable and due to related party approximate their fair values due to the short-term maturities of these financial instruments.
Concentrations of Credit Risk	The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables that it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company’s management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.
Related Parties	The Company follows ASC 850, “Related Party Disclosures,”
Revenue Recognition	The Company recognizes revenue in accordance with “Revenue from Contracts with Customers” (“ASC 606”). ASC 606 requires that the criteria must be met before revenue can be recognized: 1. The parties to the contract have approved the contract (in writing, orally, or in accordance with other customary business practices) and are committed to perform their respective obligations. 2. The Company can identify each party’s rights regarding the goods or services to be transferred. 3. The Company can identify the payment terms for the goods or services to be transferred. 4. The contract has commercial substance (that is, the risk, timing, or amount of the entity’s future cash flows is expected to change as a result of the contract). 5. It is probable that the Company will collect substantially all of the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. In evaluating whether collectability of an amount of consideration is probable, an entity shall consider only the customer’s ability and intention to pay that amount of consideration when it is due. The amount of consideration to which the entity will be entitled may be less than the price stated in the contract if the consideration is variable because the entity may offer the customer a price concession.
Income Taxes	We account for income taxes under ASC 740 “ Income Taxes
Capitalization	Expenditures for repairs and maintenance are charged to operating expense as incurred. Additions and betterments are capitalized.
Research and Development Expenses	We follow ASC 730, “Research and Development,”
Recently Issued Accounting Standards	In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718), Improvements to Nonemployee Share-based Payments (“ASU 2018-07”). This ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The effective date for the standard is for interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted, but no earlier than the Company's adoption date of Topic 606. Under the new guidance, the measurement of nonemployee equity awards is fixed on the grant date. The new guidance is required to be applied retrospectively with the cumulative effect recognized at the date of initial application. The Company is currently evaluating the effect ASU 2018-07 will have on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU modifies the disclosure requirements in Topic 820, Fair Value Measurement, by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements, such as disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This ASU is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The Company is currently evaluating the effect, if any, that the ASU will have on its consolidated financial statements. In September 2017, the FASB has issued Accounting Standards Update (ASU) No. 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” In May 2014, the FASB issued some accounting standards update which modifies the requirements for identifying, allocating, and recognizing revenue related to the achievement of performance conditions under contracts with customers. This update also requires additional disclosure related to the nature, amount, timing, and uncertainty of revenue that is recognized under contracts with customers. This guidance is effective for fiscal and interim periods beginning after December 15, 2017 and is required to be applied retrospectively to all revenue arrangements. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In February 2017, the FASB has issued Accounting Standards Update (ASU) No. 2017-05, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.” In January 2017, the FASB has issued Accounting Standards Update (ASU) No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” Management has considered all recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Jan. 31, 2018
COMMITMENTS AND CONTINGENCIES (Tables)
Future minimum lease	Year ending October 31, 2018 $ 84,000 2019 84,000 2020 35,000 Total $ 203,000

SUBSEQUENT EVENTS (Tables)

SUBSEQUENT EVENTS (Tables)	3 Months Ended
	Jan. 31, 2018
SUBSEQUENT EVENTS (Tables)
Summary of incentive payments	Harvested pounds per bay of sellable flower Incentive Bonus 0-40 $0 40-60 $40 per pound in excess of 40 pounds 60-80 $70 per pound in excess of 40 pounds 80-100 $100 per pound in excess of 40 pounds 100+ $120 per pound in excess of 40 pounds

DESCRIPTION OF BUSINESS (Detail

DESCRIPTION OF BUSINESS (Details Narrative) - shares	1 Months Ended	3 Months Ended
	Oct. 17, 2016	Jan. 31, 2018	Oct. 31, 2017
Licensing cost description		The Company estimates that the cost of licensing each year will be approximately $50,000 - $100,000 per year.
Common Stock, shares outstanding		5,371,771	4,871,771
Battle mountain genetics Inc [member]
Acquisition of entity, percentage	100.00%
Common stock issued for acquisition	50,000,000
Country or state of incorporation		Colorado
Date of incorporation		Sep. 29, 2005
Prior to reverse merger [member]
Preferred Stock, share outstanding	0
Common Stock, shares outstanding	30,894
After reverse merger [member]
Preferred Stock, share outstanding	0
Common Stock, shares outstanding	50,031,771

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	Jan. 31, 2018	Oct. 31, 2017
Cash	$ 2,740	$ 24,656
Series A Convertible Preferred Stock [Member]
Potential dilutive securities	46,000,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Oct. 31, 2017
Description of accrued interest rate	The notes accrue interest at 0% for the initial nine months and then 5% on annual rate thereafter.
Current portion of notes payable - related party	$ 157,200
Proceeds from notes payable	99,200
Accrued interest - related party	$ 497
Description of maturity date	December 31, 2019
Notes payable (Related Party)	$ 272,200		330,200
Notes payabe interest rate	5.00%
Due to related party	$ 2,885		$ 2,885
Novus Group [Member]
Description of accrued interest rate			The notes accrue interest at 0% for the initial nine months and then 5% on annual rate thereafter
Proceeds from notes payable			$ 363,200
Description of maturity date			December 31, 2018 or December 31, 2019
Notes payabe interest rate			5.00%
Officer [Member]
Due to related party	$ 2,885		$ 2,885

DIVIDEND PAYABLE (Details Narra

DIVIDEND PAYABLE (Details Narrative) - USD ($)	Jan. 31, 2018	Oct. 31, 2017
DIVIDEND PAYABLE (Details Narrative)
Dividend payable	$ 46,029	$ 46,029

STOCKHOLDERS' EQUITY (Details N

STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Jan. 31, 2018	Oct. 31, 2017
Common stock shares issued during the period	500,000
Preferred stock, shares authorized	15,000,000	15,000,000
Preferred stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	27,000,000	27,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares issued	5,371,771	4,871,771
Common stock, shares outstanding	5,371,771	4,871,771
Contribution to capital	$ 69,841
Subscriptions received - shares to be issued		$ 50,000
Series A Preferred Stock [Member]
Preferred stock, shares authorized	4,600,000	4,600,000
Preferred stock, outstanding	4,600,000	4,600,000
Preferred stock, issued	4,600,000	4,600,000
Series B Preferred Stock [Member]
Preferred stock, shares authorized	8,000,000	8,000,000
Preferred stock, outstanding	0	0
Preferred stock, issued	0	0
Convertible preferred stock, conversion terms	The Series B Preferred Stock has no conversion right or no voting rights
Preferred stock, redemption terms	The shareholders of the Series B Preferred will be entitled to $200 per pound that is sold by the Company which is divided by the outstanding shares of the Series B Preferred
Series C Preferred Stock [Member]
Preferred stock, shares authorized	500,000	500,000
Preferred stock, outstanding	0	0
Preferred stock, issued	0	0
Convertible preferred stock, conversion terms	The Series C Preferred Stock has no voting rights.

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details)	Oct. 31, 2017USD ($)
COMMITMENTS AND CONTINGENCIES (Details)
2018	$ 84,000
2019	84,000
2020	35,000
Total	$ 203,000

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details Narrative)	1 Months Ended	3 Months Ended
	Mar. 01, 2017USD ($)	Jan. 31, 2018USD ($)ft²
COMMITMENTS AND CONTINGENCIES (Details Narrative)
Monthly lease payments	$ 7,000	$ 7,000
Operating lease expiration date		Mar. 31, 2020
Description for warehouse space lease term		1,000 square of warehouse space expiring March 31, 2020
Area of greenhouse space leased | ft²		12,000
Lease expenses		$ 54,930

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event [Member]	Mar. 02, 2018
0-40 [Member]
Harvested pounds per bay of sellable flower	0-40
Incentive Bonus	$0
40-60 [Member]
Harvested pounds per bay of sellable flower	40-60
Incentive Bonus	$40 per pound in excess of 40 pounds
60-80 [Member]
Harvested pounds per bay of sellable flower	60-80
Incentive Bonus	$70 per pound in excess of 40 pounds
80-100 [Member]
Harvested pounds per bay of sellable flower	80-100
Incentive Bonus	$100 per pound in excess of 40 pounds
100+ [Member]
Harvested pounds per bay of sellable flower	100+
Incentive Bonus	$120 per pound in excess of 40 pounds

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)	Feb. 11, 2019USD ($)shares	Feb. 13, 2018USD ($)integer	Nov. 30, 2018shares	Feb. 28, 2018shares	Feb. 26, 2018$ / shares	Feb. 20, 2018USD ($)shares	Jan. 31, 2018USD ($)shares	Oct. 31, 2017shares
Series C Preferred Stock [Member]
Preferred stock, issued | shares							0	0
Subsequent Event [Member] | Greg Tucker [Member]
Cancellation date				Jul. 18, 2018
Shares issued | shares				360,006
Subsequent Event [Member] | Auctus Fund [Member]
Issuance of common stock | shares						15,000
Restricted shares value						$ 276,627
Description of restricted shares						The Company had the right to prepay the note at 135% nut negotiated the rate down to 125% plus 15,000 shares of restricted stock.
Subsequent Event [Member] | St George [Member]
Debt conversion, description		The note is convertible into common shares after six months from the issuance based on the discounted (50% discount) lowest trading prices of the Company’s shares during 25 days prior to the conversion.
Convertible promissory note, interest rate		10.00%
Investments		$ 4,245,000
Original issuance discount		385,000
Payment for financing fees		$ 10,000
Subsequent Event [Member] | Job Growing Inc [Member] | Unrelated Third Party [Member]
Description of equity interest			Fifty Percent (50%) equity interest in the Job Growing for One Dollar ($1.00).
Subsequent Event [Member] | Board of Directors [Member]
Rate of dividend | $ / shares					$ 0.001
Dividend record date					Mar. 31, 2018
Subsequent Event [Member] | Series C Preferred Stock [Member] | Cicero Travel Group Inc [Member]
Preferred Stock, value	$ 1,000,000
Preferred stock, issued | shares	333,000
Interest rate description	for 33% interest in the net profits of Cicero Travel, 19% equity interest in the common stock of Cicero Travel and the right to purchase an additional 14% equity interest in the common stock of Cicero Travel.
Interest in net profits	33.00%
Equity interest	19.00%
Additional equity interest, right to purchase	14.00%
Subsequent Event [Member] | Series C Preferred Stock [Member] | Job Growing Inc [Member]
Preferred stock, issued | shares			333,000
Subsequent Event [Member] | Subsequent Tranche [Member]
Description of tranche		This Note shall be comprised of thirteen (13) tranches (each, a “Tranche”), consisting of (i) an initial Tranche in an amount equal to $945,000.00 and any interest, costs, fees or charges accrued thereon or added thereto under the terms of this Note and the other Transaction Documents (as defined in the Purchase Agreement) (the “Initial Tranche”), and (ii) twelve (12) additional Tranches, each in the amount of $275,000.00, plus any interest, costs, fees or charges accrued thereon or added thereto under the terms of this Note and the other Transaction Documents (each, a “Subsequent Tranche”).
Subsequent Event [Member] | Initial Tranche [Member]
Original issue discount (OID)		$ 85,000
Subsequent Event [Member] | Tranche Two [Member]
Initial amount		$ 275,000
Number of tranches | integer		12
Subsequent Event [Member] | Tranche One [Member]
Initial amount		$ 945,000
Number of tranches | integer		13
Subsequent Event [Member] | Tranche One [Member] | St George [Member]
Proceeds from issuance of common stock						$ 850,000
Subsequent Event [Member] | Tranche [Member]
Initial amount		$ 850,000
Subsequent Event [Member] | Convertible Promissory Note [Member]
Debt conversion, description							The note is convertible into common shares at the option of the holder at issuance based on the discounted (50% discount) lowest trading prices of the Company’s shares during 25 days prior
Subsequent Event [Member] | Convertible Promissory Note [Member] | On February 1, 2018 [Member]
Debt conversion converted amount, principal							$ 220,000
Convertible promissory note, interest rate							12.00%