UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



FORM 10-Q

(Mark One)

|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------

For
the quarterly period ended January 31, 2013

or



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

For
the transition period from _______________________ to ___________________





Commission File Number 0-53359










REALBIZ MEDIA GROUP, INC.

Formerly Webdigs, Inc.



(Exact name of registrant as specified in
its charter)



|Delaware                                       |  | 11-3820796                          
|---------------------------------------------- |  | ------------------------------------
|(State of incorporation)                       |  | (I.R.S. Employer Identification No.)
|                                               |  |                                     
|2690 Weston Road, Suite 200
        Weston, FL |  | 33331                               
|(Address of principal executive offices)       |  | (Zip Code)                          



Registrant’s telephone number, including
area code: (954) 888-9779



Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements
for the past 90 days.

 ̈YesxNo



Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T ( §232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

 ̈ Yes     ̈ No



Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions
of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule
12b-2 of the Exchange Act:



Large
accelerated filer ̈Accelerated filer ̈Non-accelerated filer ̈Smaller reporting company   x



As of March 22, 2013 there were 6,478,889 shares of the issuer’s
common stock, $0.001 par value, outstanding. This takes into account the 1 for 200 reverse stock split which occurred on May 17,
2012.











Realbiz Media Group, Inc.



Form 10-Q



Table of Contents



|Page                          
|------------------------------
|PART I – FINANCIAL INFORMATION
|Item 1.                       
|Item 2.                       
|Item 3.                       
|Item 4.                       
|                              
|PART II – OTHER INFORMATION   
|Item 1.                       
|Item 1A.                      
|Item 2.                       
|Item 3.                       
|Item 4.                       
|Item 5.                       
|Item 6.                       
|                              
|SIGNATURES                    
|                              
|EXHIBIT INDEX                 



---











REALBIZ MEDIA GROUP, INC.



CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)



FOR THE THREE MONTH

PERIOD ENDED JANUARY 31, 2013 AND 2012





---



REALBIZ MEDIA GROUP, INC.



---



TABLE OF CONTENTS



|                                           | PAGE
|------------------------------------------ | ----
|                                           |     
|Consolidated Financial Statements:         |     
|                                           |     
|Consolidated Balance Sheets                | F-2 
|                                           |     
|Consolidated Statements of Operations      | F-3 
|                                           |     
|Consolidated Statements of Cash Flows      | F-4 
|                                           |     
|Notes to Consolidated Financial Statements | F-5 



F-1







Real Biz Media Group, Inc.

Consolidated
Balance Sheets



|                                                                                                                                                                            |  | January 31, 2013 |            | October
    31, 2012(1) |  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------- | ---------- | ----------------------- | -
|ASSETS                                                                                                                                                                      |  | (unaudited)      |            |                         |  
|Current Assets:                                                                                                                                                             |  |                  |            |                         |  
|Cash and cash equivalents                                                                                                                                                   |  | $                | 33,983     |                         | $
|Accounts receivable, net                                                                                                                                                    |  |                  | 66,275     |                         |  
|Total current assets                                                                                                                                                        |  |                  | 100,258    |                         |  
|                                                                                                                                                                            |  |                  |            |                         |  
|Intangible assets                                                                                                                                                           |  |                  | 4,796,978  |                         |  
|                                                                                                                                                                            |  |                  |            |                         |  
|Total Assets                                                                                                                                                                |  | $                | 4,897,236  |                         | $
|                                                                                                                                                                            |  |                  |            |                         |  
|LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                        |  |                  |            |                         |  
|Current Liabilities:                                                                                                                                                        |  |                  |            |                         |  
|Accounts payable and accrued liabilities                                                                                                                                    |  | $                | 902,896    |                         | $
|Deferred revenue                                                                                                                                                            |  |                  | 45,204     |                         |  
|Advances from affiliate                                                                                                                                                     |  |                  | 1,230,938  |                         |  
|Loans payable                                                                                                                                                               |  |                  | 50,000     |                         |  
|Due to minority stockholder                                                                                                                                                 |  |                  | 615,264    |                         |  
|Total current liabilities                                                                                                                                                   |  |                  | 2,844,302  |                         |  
|                                                                                                                                                                            |  |                  |            |                         |  
|Total liabilities                                                                                                                                                           |  |                  | 2,844,302  |                         |  
|                                                                                                                                                                            |  |                  |            |                         |  
|Shareholders' Equity :                                                                                                                                                      |  |                  |            |                         |  
|Preferred series A shares $.001 par value 125,000,000 authorized, 100,000,000 and 100,000,000 issued and outstanding at January 31, 2013 and October 31, 2012 respectively. |  |                  | 100,000    |                         |  
|Common stock $.001 par value, 125,000,000 authorized, 383,651 and 383,651 issued and outstanding at January 31, 2013 and October 31, 2012 respectively.                     |  |                  | 383        |                         |  
|Additional paid in capital                                                                                                                                                  |  |                  | 8,482,483  |                         |  
|Other comprehensive loss                                                                                                                                                    |  |                  | (4,383     | )                       |  
|Accumulated deficit                                                                                                                                                         |  |                  | (6,525,549 | )                       |  
|Total Shareholders' Equity                                                                                                                                                  |  |                  | 2,052,934  |                         |  
|                                                                                                                                                                            |  |                  |            |                         |  
|Total Liabilities and Shareholders' Equity                                                                                                                                  |  | $                | 4,897,236  |                         | $



(1) Derived from audited financial statements



See accompanying notes to unaudited consolidated financial statements.



F-2







Real
Biz Media Group, Inc.

Consolidated
Statements of Operations

(unaudited)



|                                                     |  | For the Three Months ended January 31, |         
|---------------------------------------------------- |  | -------------------------------------- | --------
|                                                     |  | 2013                                   |         
|                                                     |  |                                        |         
|Revenues                                             |  |                                        |         
|Real estate revenues                                 |  | $                                      | 258,328 
|Other revenue                                        |  |                                        | 13,667  
|Total Revenue                                        |  |                                        | 271,995 
|                                                     |  |                                        |         
|Cost of revenues                                     |  |                                        | 22,205  
|                                                     |  |                                        |         
|Gross profit                                         |  |                                        | 249,790 
|                                                     |  |                                        |         
|Operating expenses                                   |  |                                        |         
|Salaries and benefits expenses                       |  |                                        | 363,821 
|Selling and promotion expenses                       |  |                                        | 56,381  
|General and administrative expenses                  |  |                                        | 105,434 
|Total operating expenses                             |  |                                        | 525,636 
|                                                     |  |                                        |         
|Operating loss                                       |  |                                        | (275,846
|                                                     |  |                                        |         
|Other expense                                        |  |                                        |         
|Foreign exchange loss                                |  |                                        | (2,791  
|Total other expense, net                             |  |                                        | (2,791  
|                                                     |  |                                        |         
|Net loss                                             |  | $                                      | (278,637
|                                                     |  |                                        |         
|Preferred Stock Dividend                             |  |                                        | (155,137
|                                                     |  |                                        |         
|Net loss applicable to common shareholders           |  |                                        | (433,774
|                                                     |  |                                        |         
|Other comprehensive income (loss)                    |  |                                        |         
|Unrealized gains on currency translation adjustments |  |                                        | 1,466   
|Comprehensive loss                                   |  | $                                      | (432,308
|                                                     |  |                                        |         
|Weighted average numbers of shares outstanding       |  |                                        | 383,651 
|                                                     |  |                                        |         
|Basic and diluted net loss per share                 |  | $                                      | (1.13   



See
accompanying notes to unaudited consolidated financial statements.



F-3







Real
Biz Media Group, Inc.

Consolidated Statements of Cash Flows

(unaudited)



|                                                                                |  | For The Three Months Ended January 31, |         
|------------------------------------------------------------------------------- |  | -------------------------------------- | --------
|                                                                                |  | 2013                                   |         
|                                                                                |  |                                        |         
|Cash flows from operating activities:                                           |  |                                        |         
|Net loss                                                                        |  | $                                      | (278,637
|Adjustments to reconcile net loss to net cash provided by operating activities: |  |                                        |         
|Other comprehensive income                                                      |  |                                        | 1,466   
|Changes in operating assets and liabilities:                                    |  |                                        |         
|Increase in accounts receivable                                                 |  |                                        | (34,606 
|Increase in prepaid and other assets                                            |  |                                        | -       
|Decrease in accounts payable
    & accrued liabilities                          |  |                                        | (89,202 
|Increase in deferred revenue                                                    |  |                                        | 3,344   
|Net cash used in operating activities                                           |  |                                        | (397,635
|                                                                                |  |                                        |         
|Cash flows from financing activities                                            |  |                                        |         
|Proceeds
    from advances from affiliates                                      |  |                                        | 395,210 
|Proceeds from notes payable                                                     |  |                                        | -       
|Net cash provided by financing activities                                       |  |                                        | 395,210 
|                                                                                |  |                                        |         
|Decrease in cash and cash equivalents                                           |  |                                        | (2,425  
|                                                                                |  |                                        |         
|Cash and equivalents, at beginning of year                                      |  |                                        | 36,408  
|                                                                                |  |                                        |         
|Cash and equivalents, at end of year                                            |  | $                                      | 33,983  



See accompanying notes to unaudited consolidated
financial statements.



F-4









REALBIZ MEDIA GROUP, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Quarter Ended January 31, 2013
and 2012



NOTE 1: BASIS OF PRESENTATION



The accompanying unaudited consolidated
financial information has been prepared by Realbiz Media Group, Inc. (the “Company”) in accordance with accounting
principles generally accepted in the United States of America for interim financial information and the instructions to Form 10-Q
and Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC).  Accordingly, it does not include all
of the information and notes required by accounting principles generally accepted in the United States of America for complete
financial statements.  In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered
necessary for a fair statement of this financial information have been included.  Financial results for the interim period
presented are not necessarily indicative of the results that may be expected for the fiscal year as a whole or any other interim
period.  This financial information should be read in conjunction with the audited consolidated financial statements
and notes included in the Company’s Annual Report on Form 10K for the year ended October 31, 2012.



NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES



Organization



On October 9, 2012 RealBiz Holdings, Inc.
(RealBiz) n.k.a. Realbiz Media Group, Inc., formerly a private entity, was party to two transactions. In the first transaction
it was acquired by an unrelated public company, Next 1 Interactive, Inc. (the Parent). This transaction was accounted for by the
Parent as a business combination using the acquisition method of accounting. Accordingly, the fair value adjustments were "pushed
down" to RealBiz's books in accordance with the SEC Staff Accounting Bulletin Topic 5J "New Basis of Accounting Required
in Certain Circumstances. In the second transaction the Parent, in order to make its new subsidiary, RealBiz, a public company,
had RealBiz enter into a reverse acquisition transaction with another public company, Webdigs, Inc. (Webdigs) whereby Webdigs acquired
100% of RealBiz in exchange for Webdigs issuing a voting preferred stock to the Parent giving the Parent control over Webdigs.
This transaction was accounted for as a recapitalization of RealBiz. Webdigs then changed its name to Realbiz Media Group, Inc.



The chronological historical events leading
to the above transactions are as follows:



On August 8, 2012, Next 1 Interactive,
Inc., a Nevada corporation (“Next 1”) together with its subsidiary Next One Realty (the trade name for Next 1’s
wholly owned subsidiary Attaché Travel International, Inc.) entered into a Purchase Agreement (“Acknew Purchase Agreement”)
with Acknew Investments Inc. (“Acknew”) and RealBiz Holdings Inc. Under the Acknew Purchase Agreement, Next 1 has agreed
to acquire from Acknew common shares of RealBiz Holdings, Inc. representing approximately an 85% ownership interest in RealBiz
Holdings, Inc. RealBiz Holdings Inc. is the parent corporation of RealBiz 360, Inc. and RealBiz 360 Enterprise (Canada), Inc. (together
referred to as “RealBiz”).



Pursuant to the Acknew Purchase Agreement,
Next 1 and Webdigs, Inc. (“Webdigs” or the “Company”) would consummate a share exchange transaction contemplated
by a Share Exchange Agreement dated April 5, 2012 (“Share Exchange Agreement”) by and between Next 1 and Webdigs. In
that contemplated share exchange transaction, Next 1 would receive a controlling interest in Webdigs through its receipt of approximately
93 million shares of newly designated preferred stock representing approximately 92% of the total outstanding capital stock of
Webdigs immediately after the transaction. In exchange, Next 1 would transfer its entire share ownership in Next One Realty to
Webdigs.



On October 9, 2012, Webdigs and Next 1
completed the transactions contemplated by the Share Exchange Agreement. Under the Share Exchange Agreement, Webdigs received all
of the outstanding equity in Attaché Travel International, Inc. (“Attaché”). In exchange for our Webdigs’s
receipt of the Attaché shares from Next 1, Webdigs issued to Next 1 a total of 93 million shares of our newly designated
Series A Convertible Preferred Stock (our “Series A Stock”). The exchange of Attaché shares in exchange for
our Series A Stock is referred to as the “Exchange Transaction.”



As a condition to the closing of the Exchange
Transaction, our Company changed its name from “Webdigs, Inc.” to “RealBiz Media Group, Inc.” on October
9, 2012, by engaging in a short-form parent-subsidiary merger in the State of Delaware.



F-5







REALBIZ MEDIA GROUP, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Quarter Ended January 31, 2013
and 2012



NOTE 2: SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (continued)



Nature of Business



RealBiz is a real estate media services
company that provides marketing and promotional services to listing agents and brokers through its proprietary video processing
technology or virtual home tours. RealBiz has positioned itself in the following three areas:



| | 1. | Real Estate Video on Demand Channel - We earn commissions and fees on home sales, pre-roll/post-roll advertising, banner ads and cross-market advertising promotions. We charge a listing and marketing fee and earn revenue from web-based and mobile advertising.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2. | Website and Mobile Applications - We are developing a real estate web portal to work in conjunction with our national Video on Demand (VOD) Television Platform. This site will be unique to the world of real estate search sites on multiple levels, first the user experience will be completely visual and video centric, secondly, the site will focus on local neighborhood participation for social interaction between home seekers and current residents who can provide an unbiased view of the selected neighborhood and lastly the content on the site will focus on the entire home ownership lifecycle from purchase through maintenance to home sale therefore giving the site a much deeper and more loyal audience over time.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3. | Traditional Real Estate Sales - Our previous company, Webdigs, had a licensed real estate brokerage division with participating brokers in 19 states. We believe there may be potential opportunities to take advantage of an improving real estate market.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Basis of Consolidation



The consolidated financial statements for
the quarters ended January 31, 2013 and 2012 include the operations of Webdigs, Inc. and its wholly-owned subsidiary, Webdigs,
LLC, which includes the dormant wholly owned subsidiaries of Home Equity Advisors, LLC, and Credit Garage, LLC from the recapitalization
date of October 9, 2012 and the historical operations of RealBiz Media Group, Inc, which includes its subsidiaries RealBiz 360
Enterprise (Canada), Inc. and RealBiz 360, Inc. All significant intercompany accounts and transactions have been eliminated in
the consolidation.



On May 17, 2012, the Company affected a
1 for 200 reverse stock split. All share and per share information in the consolidated financial statements presented has been
retrospectively adjusted for the split.



Estimates



The preparation of consolidated financial
statements in conformity with generally accepted accounting principles in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. If actual results significantly differ from the Company’s estimates, the
Company’s financial condition and results of operations could be materially impacted.



Cash and Cash Equivalents



For purposes of balance sheet presentation
and reporting of cash flows, the Company considers all unrestricted demand deposits, money market funds and highly liquid debt
instruments with an original maturity of less than 90 days to be cash and cash equivalents.



Accounts Receivable



The Company provides its marketing and
promotional services to agents or brokers via a web-based portal that allows for credit card payments. The Company recognizes
accounts receivable for amounts uncollected from the credit card service provider at the end of the accounting period. The Company
regularly reviews outstanding receivables and provides for estimated losses through an allowance for doubtful accounts. In evaluating
the level of established loss reserves, the Company makes judgments regarding its customers’ ability to make required payments,
economic events and other factors. As the financial condition of these parties change, circumstances develop or additional information
becomes available, adjustments to the allowance for doubtful accounts may be required. The Company maintains reserves for potential
credit losses, and such losses traditionally have been within its expectations.



F-6







REALBIZ MEDIA GROUP, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Quarter Ended January 31, 2013
and 2012



NOTE 2: SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (continued)



Intangible Assets



In accordance with ASC 350-30-65 “Goodwill
and Other Intangible Assets, the Company assesses the impairment of identifiable intangible assets whenever events or changes in
circumstances indicate that the carrying value may not be recoverable. Factors the Company considers to be important which could
trigger an impairment review include the following:



| | 1. | Significant underperformance to expected historical or projected future operating results;
| | -- | ------------------------------------------------------------------------------------------



| | 2. | Significant changes in the manner or use of the acquired assets or the strategy for the overall business; and
| | -- | -------------------------------------------------------------------------------------------------------------



| | 3. | Significant negative industry or economic trends.
| | -- | -------------------------------------------------



When the Company determines that the carrying
value of an intangible many not be recoverable based upon the existence of one or more of the above indicators of impairment and
the carrying value of the asset cannot be recovered from projected undiscounted cash flow, the Company records an impairment charge
equal to the amount book value exceeds fair value. The Company measures fair value based on a projected discounted cash flow method
using a discount rate determined by management to be commensurate with the risk inherent to the current business model. Significant
management judgment is required in determining whether an indicator of impairment exists and in projecting cash flows. The Company
did not consider it necessary to record an impairment charge on its intangible assets during the quarters ended January 31, 2013
and 2012.



Intangible assets that have finite useful
lives are amortized over their useful lives.



Convertible Debt Instruments



The Company records debt net of debt discount
for beneficial conversion features and warrants, on a relative fair value basis. Beneficial conversion features are recorded pursuant
to the Beneficial Conversion and Debt Topics of the FASB Accounting Standards Codification. The amounts allocated to warrants and
beneficial conversion rights are recorded as debt discount and as additional paid-in-capital. Debt discount is amortized to interest
expense over the life of the debt.



Fair Value of Financial Instruments



The Company’s financial instruments
consist of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, notes payable, commissions and fees
payable, and interest payable. The carrying amounts of such financial instruments approximate their respective estimated fair value
due to the short-term maturities and approximate market interest rates of these instruments.



Revenue Recognition



The Company provides its marketing and
promotional services to agents or brokers via a web-based portal that allows for credit card payments. Customers may pay a monthly
recurring fee or an annual fee. Some customers additionally pay a one-time set up fee. Monthly recurring fees are recognized in
the month the service is rendered. Collection of one-time set up fees and annual services fees give rise to recognized monthly
revenue in the then-current month as well as deferred revenue liabilities representing the collected fee for services yet to be
delivered.



Cost of Revenues



Cost of revenues includes costs attributable
to services sold and delivered. These costs include such items as credit card fees, sales commission to business partners, expenses
related to our participation in industry conferences, and public relations expenses.



Share-Based Compensation



The Company computes share based payments
in accordance with Accounting Standards Codification 718-10 “Compensation” (ASC 718-10). ASC 718-10 establishes standards
for the accounting for transactions in which an entity exchanges its equity instruments for goods and services at fair value, focusing
primarily on accounting for transactions in which an entity obtains employees services in share-based payment transactions. It
also addresses transactions in which an entity incurs liabilities in exchange for goods and services that are based on the fair
value of an entity’s equity instruments or that may be settled by the issuance of those equity instruments.



F-7







REALBIZ MEDIA GROUP, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Quarter Ended January 31, 2013
and 2012



NOTE 2: SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (continued)



In March 2005, the SEC issued SAB No. 107,
Share-Based Payment (“SAB 107”) which provides guidance regarding the interaction of ASC 718-10 and certain SEC rules
and regulations. The Company has applied the provisions of SAB 107 in its adoption of ASC 718-10.



Other Comprehensive Income (Loss)



Comprehensive income (loss) includes net
income (loss) and items defined as other comprehensive income (loss). Items defined as other comprehensive income (loss) include
items such as foreign currency translation adjustments and unrealized gains and losses on certain marketable securities. For the
quarters ended January 31, 2013 and 2012, the accumulated comprehensive loss was ($277,171) and ($210,238), respectively.



Income Taxes



The Company accounts for income taxes in
accordance with ASC 740, Accounting for Income Taxes, as clarified by ASC 740-10, Accounting for Uncertainty in Income Taxes. Under
this method, deferred income taxes are determined based on the estimated future tax effects of differences between the financial
statement and tax basis of assets and liabilities given the provisions of enacted tax laws. Deferred income tax provisions and
benefits are based on changes to the assets or liabilities from year to year. In providing for deferred taxes, the Company considers
tax regulations of the jurisdictions in which the Company operates, estimates of future taxable income, and available tax planning
strategies. If tax regulations, operating results or the ability to implement tax-planning strategies vary, adjustments to the
carrying value of deferred tax assets and liabilities may be required. Valuation allowances are recorded related to deferred tax
assets based on the “more likely than not” criteria of ASC 740.



ASC 740-10 requires that the Company recognize
the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than
not sustain the position following an audit. For tax positions meeting the “more-likely-than-not” threshold, the amount
recognized in the consolidated financial statements is the largest benefit that has a greater than 50 percent likelihood of being
realized upon ultimate settlement with the relevant tax authority.



Income (Loss) Per Share



Basic net income
(loss) per common share is computed by dividing the net income (loss) attributable to common shareholders by the weighted average
number of shares of common stock outstanding during the period.



Diluted net income (loss) per common
share is computed in the same manner, but also considers the effect of common stock shares underlying the following:



|                      |  | January 31, 2013 |       |  | January 31, 2012 | 
|--------------------- |  | ---------------- | ----- |  | ---------------- | 
|Common stock options  |  |                  | 4,000 |  |                  | 
|Common stock warrants |  |                  | -     |  |                  | 



All of the common shares underlying
the stock options and warrants above were excluded from diluted weighted average shares outstanding for the quarters ended January
31, 2013 and 2012 respectively because their effects were considered anti-dilutive.



Concentrations, Risks and Uncertainties



The Company’s operations are related
to the real estate industry and its prospects for success are tied indirectly to interest rates and the general housing and business
climates in the United States.



F-8







REALBIZ MEDIA GROUP, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Quarter Ended January 31, 2013
and 2012



NOTE 2: SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (continued)



Recently Issued Accounting Pronouncements



Effective January
1, 2012, the Company adopted ASU 2011-05,   Presentation of Comprehensive Income   (“ASU 2011-05”). ASU 2011-05
requires entities to report components of comprehensive income in either (1) a continuous statement of comprehensive income
or (2) two separate but consecutive statements. Under the two-statement approach, the first statement would include components
of net income, and the second statement would include components of other comprehensive income. This ASU does not change the items
that must be reported in other comprehensive income.   . The adoption of ASU 2011-05 did not have a material impact on
the Company’s interim unaudited consolidated financial statements.



Effective January
1, 2012, the Company adopted ASU 2011-08,   Intangibles – Goodwill and Other   (“ASU 2011-08”). ASU
2011-08   permits an entity to make a qualitative assessment of whether it is more likely than not that a reporting unit’s
fair value is less than its carrying amount before applying the two-step goodwill impairment test. If an entity concludes it is
not more likely than not that the fair value of a reporting unit is less than its carrying amount, it need not perform the two-step
impairment test.   The adoption of ASU 2011-08 did not have a material impact on the Company’s interim unaudited consolidated
financial statements.



In July 2012,
the Financial Accounting Standards Board (FASB) amended ASC 350, “ Intangibles — Goodwill and Other”.
This amendment is intended to simplify how an entity tests indefinite-lived assets other than goodwill for impairment by providing
entities with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. The amended
provisions will be effective for the Company beginning in the first quarter of 2014, and early adoption is permitted. This amendment
impacts impairment testing steps only, and therefore adoption will not have an impact on the Company’s consolidated financial
position, results of operations or cash flows.



In August 2012,
the FASB issued Accounting Standards Update (“ASU”) 2012-03, “Technical Amendments and Corrections to SEC Sections:
Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 114, Technical Amendments Pursuant to SEC Release
No. 33-9250, and Corrections Related to FASB Accounting Standards Update 2010-22 (SEC Update)” in Accounting Standards Update
No. 2012-03. This update amends various SEC paragraphs pursuant to the issuance of SAB No. 114. The adoption of ASU 2012-03 is
not expected to have a material impact on financial position or results of operations of the Company.



In October 2012,
the FASB issued ASU 2012-04, “Technical Corrections and Improvements” in Accounting Standards Update No. 2012-04 ("ASU
2012-04"). The amendments in this update cover a wide range of topics in the Accounting Standards Codification. These amendments
include technical corrections and improvements to the Accounting Standards Codification and conforming amendments related to fair
value measurements. The amendments in this update will be effective for fiscal periods beginning after December 15, 2012. The adoption
of ASU 2012-04 is not expected to have a material impact on financial position or results of operations of the Company.



Management does not believe that any other
recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying
consolidated financial statements.



NOTE 3: GOING CONCERN



The accompanying consolidated financial
statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities
in the normal course of business.



The Company has incurred losses of $278,637
and $223,641 for the three months ended January 31, 2013 and 2012 respectively. At January 31, 2013, the Company had a working
capital deficit of $2,744,044, and an accumulated deficit of $6,525,549. It is management’s opinion that these facts raise
substantial doubt about the Company’s ability to continue as a going concern without additional debt or equity financing.
The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded
asset amounts nor to the amounts and classification of liabilities that might be necessary should the Company be unable to continue
as a going concern.



In order to meet its working capital needs
through the next twelve months, the Company may consider plans to raise additional funds through the issuance of additional shares
of common stock and or through the issuance of debt instruments. Although we intend to obtain additional financing to meet our
cash needs, we may be unable to secure any additional financing on terms that are favorable or acceptable to us, if at all.



F-9







REALBIZ MEDIA GROUP, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Quarter Ended January 31, 2013
and 2012



NOTE 4: INTANGIBLE
ASSETS



At January 31, 2013 and October 31, 2012,
the Company’s intangible assets are as follows:



|                 |  | Gross    |           |  |              |   |   | Net      | 
|---------------- |  | -------- | --------- |  | ------------ | - | - | -------- | 
|                 |  | Carrying |           |  | Accumulated  |   |   | Carrying | 
|                 |  | Amount   |           |  | Amortization |   |   | Amount   | 
|January 31, 2013 |  | $        | 4,796,978 |  |              | $ | - |          | 
|October 31, 2012 |  | $        | 4,796,978 |  |              | $ | - |          | 



On October 9, 2012, the Company
entered a Share Exchange Agreement (Note 1). The Company accounted for the acquisition utilizing the purchase method of
accounting in accordance with ASC 805 "Business Combinations". The Company is the acquiree for accounting purposes.
Accordingly, the Company applied push-down accounting and has recorded the intangible asset as described herein. In the
accompanying consolidated balance sheet.



* The Company is in review of the facts
and circumstances surrounding events to determine if the carrying amount of held-and-used identifiable intangibles
acquired during the October 2012 acquisition may be reallocated under the provisions of ASC 350 and ASC 805. The Company has until
October 2013 (12 months) to determine the final allocations and it is studying a reallocation between “customer
relationships and customer lists” and “goodwill”. No amortization has been calculated based on the original allocations.



NOTE 5: ACCOUNTS PAYABLE AND ACCRUED
LIABILITIES



At January 31, 2013, the Company’s
accounts payable and accrued liabilities are as follows:



|                                               |  | January 31, 2013 |        
|---------------------------------------------- |  | ---------------- | -------
|Trade payables and accruals                    |  | $                | 271,031
|Preferred stock dividend accrual               |  |                  | 155,137
|Professional Fees                              |  |                  | 30,000 
|Payroll and commissions (1)                    |  |                  | 446,728
|Total accounts payable and accrued liabilities |  | $                | 902,896



| | (1) | Includes deferred payroll expenses payable to a related party. (See Note 10)
| | --- | ----------------------------------------------------------------------------



NOTE 6: ADVANCES FROM NEXT 1 INTERACTIVE,
INC.



During the normal course of business, Next
1 makes operating advances for operating expenses to RealBiz 360 Enterprise (Canada), Inc. and Webdigs, Inc. As of January 31,
2013, advances to RealBiz 360 Enterprise (Canada), Inc. totaled $1,148,541 and $82,397 to Webdigs, Inc.



NOTE 7: LOANS PAYABLE



As of January 31, 2013, as part of the
Acknew Purchase Agreement, the remaining obligation to Acknew totaled $50,000. This payment obligation was satisfied on March 22,
2013.



F-10







REALBIZ MEDIA GROUP, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Quarter Ended January 31, 2013
and 2012



NOTE 8: SHARE-BASED COMPENSATION



The Company recognizes compensation expense
for stock option grants over the requisite service period for vesting of the award.



Stock Options outstanding,
after taking into account a 200 for 1 reverse stock split on May 17, 2012, at January 31, 2013, are 4,000 options at $50 per
share and the weighted average remaining term is 0.25 years. The aggregate intrinsic value represents the difference between
the closing stock price on January 31, 2013 and the exercise price, multiplied by the number of in-the-money options that
would have been received by the option holders had all option holders exercised their options on January 31,
2013.  There were no options exercised during the quarter ended January 31, 2013.



NOTE 9: SHAREHOLDERS’ EQUITY



As of January 31, 2013, the
Company has 125,000,000 shares of common stock authorized with a par value of $0.001 and 125,000,000 shares of preferred stock
authorized with a par value of $0.001.



Common Stock



On October 9, 2012 the Company recapitalized
by being acquired by a public company which resulted in a deemed issuance of 383,009 shares of common stock to the original shareholders
of the public entity, a deemed issuance of 7,000,000 Preferred Series A voting shares to the original shareholders of the public
entity, and a new issuance of 93,000,000 Preferred Series A voting shares. Total net liabilities of $977,575 were assumed in the
recapitalization.



Preferred Stock Series A



As of January 31, 2013, the Company had
100,000,000 shares of Series A Preferred stock issued and outstanding respectively. The Preferred shares were issued pursuant to
the recapitalization and share exchange (Note1). The preferred shares were issued at $.001 par, bear dividends at an annual rate
of 10% per annum payable on a quarterly basis when declared by the board of directors. Dividends shall accrue whether or not they
have been declared by the board. At the election of the Company, Preferred Dividends may be converted into Series A Stock, with
each converted share having a value equal to the Market Price per share, subject to adjustment for stock splits. In order to exercise
such option, the Company shall deliver written notice to the holder. Each share of Series A Stock shall be convertible at the option
of the holder thereof at any time into a number of shares of Common Stock determined by dividing the Stated Value by the Conversion
Price then in effect. The initial conversion price for the Series A Stock shall be equal to $0.05 per share.



As a result of push-down accounting applied
in October 2012 (See Note 1) the Company recorded $5,016,506 of additional paid-in-capital.



Accrued but unpaid preferred stock dividends
on the outstanding preferred shares totaled $155,137 as of January 31, 2013.



F-11







REALBIZ MEDIA GROUP, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Quarter Ended January 31, 2013
and 2012



NOTE 10: RELATED PARTY TRANSACTIONS



Due to - Minority Stockholder



The Company’s former principal advertising
agency/website developer was owed $615,264 at January 31, 2013. The two principals of this advertising company are also minority
stockholders in the Company - holding approximately 1.6% of the Company’s outstanding shares at January 31, 2013.



Due to Officers



As of January 31, 2013, the Company was
indebted to certain related parties for amounts totaling $69,327, for deferred salary and unreimbursed business expenses. All of
the indebtedness represented non-interest bearing payables due on demand. These amounts have been included in Accounts Payable
and Accrued Liabilities on our consolidated balance sheets.



Advance from Affiliate



As of January 31, 2013, the Company
was advanced $1,230,938 from Next1 Interactive, Inc.



NOTE 11: BASIC AND DILUTED EARNINGS
PER SHARE



The Company computes earnings per share
under two different methods, basic and diluted, and presents per share data for all periods in which statements of operations are
presented. Basic earnings per share are computed by dividing net loss by the weighted average number of shares of common stock
outstanding. Diluted earnings per share are computed by dividing net loss by the weighted average number of common stock and common
stock equivalent shares outstanding.



On May 17, 2012, the Company affected a
1 for 200 reverse stock split. The Company retrospectively restated the outstanding shares for the earnings per share calculation.



All of the common shares underlying the
stock options and warrants were excluded from diluted weighted average shares outstanding for the quarters ended January 31, 2013
and 2012 respectively because their effects were considered anti-dilutive.



NOTE 12: SUBSEQUENT EVENTS



On February 27, 2013, the
former CEO of Webdigs converted 5,990,238 Series A Preferred Stock into 5,990,238 shares of Realbiz Common Stock.



F-12







ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



The following discussion should be read
in conjunction with our audited consolidated financial statements and related notes that appear elsewhere in this filing.



Cautionary Note Regarding Forward-Looking
Statements



Some of the statements made in this section
of our report are forward-looking statements. These forward-looking statements generally relate to and are based upon our current
plans, expectations, assumptions and projections about future events. Our management currently believes that the various plans,
expectations, and assumptions reflected in or suggested by these forward-looking statements are reasonable. Nevertheless, all forward-looking
statements involve risks and uncertainties and our actual future results may be materially different from the plans, objectives
or expectations, or our assumptions and projections underlying our present plans, objectives and expectations, which are expressed
in this section.



In light of the foregoing, prospective
investors are cautioned that the forward-looking statements included in this filing may ultimately prove to be inaccurate—even
materially inaccurate. Because of the significant uncertainties inherent in such forward-looking statements, the inclusion of such
information should not be regarded as a representation or warranty by Realbiz Media Group, Inc. or any other person that our objectives,
plans, expectations or projections that are contained in this filing will be achieved in any specified time frame, if ever. We
undertake no obligation to publicly release any revisions to the forward-looking statements or reflect events or circumstances
after the date of this document. The risks discussed in the Item 1A of this filing should be considered in evaluating our prospects
and future performance.



General Overview



General Overview



On August 8, 2012, Next 1 Interactive,
Inc., a Nevada corporation (“Next 1”) together with its subsidiary Next One Realty (the trade name for Next 1’s
wholly owned subsidiary Attaché Travel International, Inc.) entered into a Purchase Agreement (“Acknew Purchase Agreement”)
with Acknew Investments Inc. (“Acknew”) and RealBiz Holdings Inc. Under the Acknew Purchase Agreement, Next 1 has agreed
to acquire from Acknew common shares of RealBiz Holdings, Inc. representing approximately an 85% ownership interest in RealBiz
Holdings, Inc. RealBiz Holdings Inc. is the parent corporation of RealBiz 360, Inc. and RealBiz 360 Enterprise (Canada), Inc. (together
referred to as “RealBiz”).



Pursuant to the Acknew Purchase Agreement,
Next 1 and Webdigs, Inc. (“Webdigs” or the “Company”) would consummate a share exchange transaction contemplated
by a Share Exchange Agreement dated April 5, 2012 (“Share Exchange Agreement”) by and between Next 1 and Webdigs. In
that contemplated share exchange transaction, Next 1 would receive a controlling interest in Webdigs through its receipt of approximately
93 million shares of newly designated preferred stock representing approximately 92% of the total outstanding capital stock of
Webdigs immediately after the transaction. In exchange, Next 1 would transfer its entire share ownership in Next One Realty to
Webdigs.



On October 9, 2012, Webdigs and Next 1
completed the transactions contemplated by the Share Exchange Agreement. Under the Share Exchange Agreement, Webdigs received all
of the outstanding equity in Attaché Travel International, Inc. (“Attaché”). In exchange for our Webdigs’s
receipt of the Attaché shares from Next 1, Webdigs issued to Next 1 a total of 93 million shares of our newly designated
Series A Convertible Preferred Stock (our “Series A Stock”). The exchange of Attaché shares in exchange for
our Series A Stock is referred to as the “Exchange Transaction.”



As a condition to the closing of the Exchange
Transaction, our Company changed its name from “Webdigs, Inc.” to “RealBiz Media Group, Inc.” on October
9, 2012, by engaging in a short-form parent-subsidiary merger in the State of Delaware.



2







Coincident with the closing of the Exchange
Transaction, we converted all of our outstanding debt, payables and liabilities owed to Robert A. Buntz, Jr. (“Buntz”)
and Edward Wicker (“Wicker”) into an aggregate of 7 million shares of Series A Stock. Specifically, Buntz received
5,983,600 shares of Series A Stock upon his conversion of approximately $401,498 in liabilities we owed him, and Wicker received
1,016,400 shares of Series A Stock upon his conversion of approximately $53,356 in liabilities we owed him. Buntz was, and remains
after the Exchange Transaction, a director of our Company. At the closing of the Exchange Transaction, Wicker resigned his position
as a director of our Company and as our Chief Financial Officer.



As a condition to the closing of the Exchange
Transaction, our Company changed its name from “Webdigs, Inc.” to “RealBiz Media Group, Inc.” on October
3, 2012, by engaging in a short-form parent-subsidiary merger in the State of Delaware.



As a result of the Exchange Transaction
and the conversion of liabilities referred to above, the shareholders of our Company before the Exchange Transaction retained approximately
365,176 shares of common stock (after giving effect to a reverse split effected as of May 3, 2012), representing approximately
..364% of our issued and outstanding shares of capital stock (both common and preferred) immediately after the Exchange Transaction.
Unless otherwise indicated, all common share figures set forth in this Current Report are on a post-split basis.



On March 16, 2012, the Company sold the
“Webdigs” domain, technology and certain trademarks to Fiontrai II, LLC for $15,000. These assets, which were held
in Webdigs, LLC, included US Trademark No. 3,461,665 "Webdigs", along with www.webdigs.com domain name and the original
webdigs.com website software and technology developed by MoCo, Inc. Included in this transaction was a royalty agreement whereby
Webdigs could receive royalty payments from Fiontrai upon its licensing the technology to other third parties. Also included in
this transaction was a royalty agreement for which Fiontrai II paid $1,000 (part of the total $15,000). Robert Buntz, CEO purchased
the royalty agreement from the Company in exchange for a principal reduction of his loan to the Company of $5,000.



Results of Operations



The following information should be read
in conjunction with the unaudited financial statements and notes thereto appearing elsewhere in this Annual Report.



For the fiscal quarter ended January
31, 2013 compared to the fiscal quarter ended January 31, 2012.



Revenues



Our total revenues decreased 17% to $271,995
for the three months ended January 31, 2013, compared to $326,747 for the three months ended January 31, 2012, a decrease of $54,752.
The decrease is due to reduced real estate revenue from virtual tours due to drop in available listings in a tough real estate
environment.



Revenues from real estate decreased 9%
to $258,328 for the three months ended January 31, 2013, compared to $284,426 for the three months ended January 31, 2012, a decrease
of $26,098. The decrease is due to the decline of virtual tours due to drop in available listings in a tough real estate environment.



Revenues from other sources, consulting,
decreased 68% to $13,667 for the three months ended January 31, 2013, compared to $42,321 for the three months ended January 31,
2012, a decrease of $28,654. This decrease was due to reduced real estate revenue from virtual tours due to drop in available listings
in a tough real estate environment.



Cost of Revenue



Cost of revenues decreased 22% to $22,205
for three months ended January 31, 2013, compared to $28,646 for the three months ended January 31, 2012, a decrease of $6,441.
The decrease in costs was primarily associated with the Company’s decrease in costs associated with the decrease in virtual
tours due to drop in available listings in a tough real estate environment.



Operating Expenses



Our total operating expenses increased
1% or $3,959 to $525,636 for the three months ended January 31, 2013, compared to $521,677 for the three months ended January 31,
2012. The increase was primarily due to an increase of $139,128 in salaries and benefits partially offset by a decrease of $132,673
in selling and promotion expenses.



3







Other Income (Expense)



Foreign exchange loss increased to $2,791
for the three months ended January 31, 2013, compared to a loss of $65 for three months ended January 31, 2012, an increase of
$2,726 primarily due to fluctuations in the exchange rates.



Net Loss



Net loss increased 25% to $278,637 for
the three months ended January 31, 2013, compared to net loss of $223,641 for the three months end January 31, 2012, a decrease
of $54,996 primarily due to the reduced revenue offset by reduced costs.



Assets and Employees; Research and
Development



We do not currently anticipate purchasing
any equipment or other assets in the near term, however, as we expand operations, we will need additional equipment and employees
to create and market our products.



Liquidity and Capital Resources;
Anticipated Financing Needs



At January 31, 2013, the Company had $33,983
cash on-hand, a decrease of $2,425 from $36,408 at the end of fiscal 2012. The decrease in cash was due primarily to operating
expenses.



Net cash used in operating activities was
$2,425 for the three months ended January 31, 2013, a decrease of $121,815 from $124,240 used during the three months ended January
31, 2012. This decrease was due to a decrease in accounts payable and accrued liabilities offset by advances from affiliates.



Net cash provided by financing activities
decreased $70,511 to $0, for the three months ended January 31, 2013, compared to $70,511 for the three months ended January 31,
2012.  This decrease was primarily due to the decrease in proceeds from notes payable.



Critical Accounting Policies



The discussion and analysis of our financial
condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting
principles generally accepted in the United States of America. The preparation of these financial statements requires us to make
estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures.
We evaluate these estimates on an on-going basis. We base our estimates on historical experience and on various other assumptions
that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the
carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these
estimates under different assumptions or conditions. Our significant estimates are determining some of the inputs for our stock
option fair value calculation and assessing the valuation allowance for income taxes.



We consider the following accounting policies
to be those most important to the portrayal of our results of operations and financial condition:



Revenue Recognition . Real estate brokerage
revenues were recognized at the closing of a real estate transaction. Fees due to third party real estate agents or clients are
accrued at the time of closing and treated as an offset to gross revenues.



Share-Based Compensation.
The Company accounts for stock incentive plans by measurement and recognition of compensation expense for all stock-based awards
based on estimated fair values, net of estimated forfeitures. Share-based compensation expense recognized for the three monthss
ended January 31, 2013 and 2012 includes compensation cost for restricted stock awards and stock options. The Company uses the
Black- Scholes option-pricing model to determine the fair value of options granted as of the grant date.



Accounts Receivable. The Company
reviews the outstanding receivables on a monthly basis and receivables are considered past due when payment has not been received
30 days after a transaction closes. Management provides for probable uncollectible amounts through a charge to earnings and a
credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances that are still
outstanding after management has used reasonable collection efforts are written off through a charge to the allowance for doubtful
accounts and a credit to receivables. Historically, the Company has not experienced significant losses related to receivables
from individual customers. At January 31, 2013 and 2012, the Company considers its accounts receivable to be fully collectible
and therefore, has not recorded an allowance for doubtful accounts.



4







Intangible Assets.



On October 9, 2012, the Company entered
a Share Exchange Agreement (Note 1). The Company accounted for the acquisition utilizing the purchase method of accounting in accordance
with ASC 805 “Business Combinations”. The Company is the acquiree for accounting purposes. Accordingly, the Company
applied push-down accounting and has recorded the intangible asset as described herein.



The Company is in review of the facts and
circumstances surrounding events to determine if the carrying amount of held-and-used identifiable amortized intangibles acquired
during the October 2012 acquisition may be reallocated under the provisions of ASC 350 and ASC 805. The Company has until October
2013 (12 months) to determine the final allocations and it is studying a reallocation with more emphasis on “customer relationships
and customer lists”. No amortization has been calculated based on the original allocations.



Recently Issued Accounting Pronouncements



ASU 2011-05 –
Presentation of comprehensive income



ASU 2011-05 was the
result of a joint project with the IASB and amends the guidance in ASC 220, Comprehensive Income, by eliminating the option
to present components of other comprehensive income (OCI) in the statement of stockholders’ equity. Instead, the new guidance
now requires entities to present all non-owner changes in stockholders’ equity either as a single continuous statement of
comprehensive income or as two separate but consecutive statements.



All entities that report
OCI items will be impacted by the changes in this ASU. The components of OCI have not changed, nor has the guidance on when OCI
items are reclassified to net income; however, the amendments require entities to present all reclassification adjustments from
OCI to net income on the face of the statement of comprehensive income.



The amendments to
ASC 220, Comprehensive Income, included in ASU 2011-05, Presentation of Comprehensive Income , are effective for
fiscal years and for interim periods within those fiscal years, beginning after December 15, 2011 (that is, the fiscal year beginning
January 1, 2012 for calendar-year entities) for public entities and for interim and annual periods thereafter. The amended guidance
must be applied retrospectively and early adoption is permitted. The Company does not expect the adoption of this recently issued
accounting pronouncement to have a significant impact on its results of operations, financial position or cash flows.



5







ITEM 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK



Not applicable.



ITEM 4. CONTROLS AND PROCEDURES



Management’s
Report On Internal Control Over Financial Reporting



Under the supervision and with the participation
of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of our disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of
1934, as amended (the “Exchange Act”)) as of the end of the period covered by this Quarterly Report on Form 10-Q to
ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and
forms, and is accumulated and communicated to our management as appropriate to allow timely decisions regarding required disclosure.



Based on this evaluation and taking into
account that certain material weaknesses existed as of January 31, 2013, our Chief Executive Officer and Chief Financial Officer
have each concluded that our disclosure controls and procedures were not effective.  As a result of this conclusion, the financial
statements for the period covered by this Quarterly Report on Form 10-Q were prepared with particular attention to the material
weaknesses previously disclosed. Notwithstanding the material weaknesses in internal controls that continue to exist as of January
31, 2013, we have concluded that the financial statements included in this Quarterly Report on Form 10-Q present fairly, the financial
position, results of operations and cash flows of the Company as required for interim financial statements.



Changes in Internal Control Over Financial Reporting



During the fiscal quarter ended January
31, 2013, there was no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange
Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Management has concluded that the material weaknesses in internal control as described in Item 9A of the Company’s Form
10-K for the year ended October 31, 2012 have not been remediated.  Due to the small number of employees dealing with general
administrative and financial matters and the expenses associated with increasing the number of employees to remediate the disclosure
control and procedure material weaknesses that have been identified, the Company continued to operate without changes to its internal
controls over financial reporting for the period covered by this Quarterly Report on Form 10-Q while continuing to seek the expertise
its needs to remediate the material weaknesses.



6







PART II –
OTHER INFORMATION



Item 1.  Legal Proceedings



We are not currently a party to any material litigation and
are not aware of any threatened litigation that would have a material effect on our business.



Item 1A.  Risk Factors.



None.



Item 2.  Unregistered Sales of Equity Securities



None.



Item 3.  Defaults Upon Senior Securities



None.



Item 4.  Mine Safety Disclosures



Not applicable



Item 5.  Other Information



None.





Item 6.  Exhibits.



|Exhibit No. |  | Description                                                                                       
|----------- |  | --------------------------------------------------------------------------------------------------
|31.1        |  | Certification of Chief Executive Officer                                                          
|            |  |                                                                                                   
|31.2        |  | Certification of Chief Financial Officer                                                          
|            |  |                                                                                                   
|32.1        |  | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|            |  |                                                                                                   
|32.2        |  | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



7







Exhibits



|Exhibit Number |  | Description                                    
|-------------- |  | -----------------------------------------------
|               |  |                                                
|31.1           |  | Certification of CEO pursuant to Section 302. *
|               |  |                                                
|31.2           |  | Certification of CFO pursuant to Section 302. *
|               |  |                                                
|32.1           |  | Certification of CEO pursuant to Section 906. *
|               |  |                                                
|32.2           |  | Certification of CFO pursuant to Section 906. *



* Filed electronically herewith.



SIGNATURES



Pursuant to the requirements of Section 13 or 15(d) of
the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.



| | Realbiz Media Group, Inc.            
| | -------------------------------------
| |                                      
| | /s/ William Kerby                    
| | William Kerby                        
| | President and Chief Executive Officer
| | March 25, 2013                       
| |                                      
| | /s/ Adam Friedman                    
| | Adam Friedman                        
| | Chief Financial Officer              
| | March 25, 2013                       



Pursuant to the requirements of the Securities
Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities
and on the dates indicated.





|Name              |  | Title                                |  | Date          
|----------------- |  | ------------------------------------ |  | --------------
|                  |  |                                      |  |               
|/s/ William Kerby |  | Chairman and Chief Executive Officer |  | March 25, 2013
|William Kerby     |  | (Principal Executive Officer)        |  |               
|                  |  |                                      |  |               
|/s/ Adam Friedman |  | Chief Financial Officer              |  | March 25, 2013
|Adam Friedman     |  | (Principal Financial Officer)        |  |               



8