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 April 30, 2013                                          



Or



|o | 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.

xYes£No



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).

xYesoNo



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 fileroAccelerated fileroNon-accelerated fileroSmaller reporting companyx



As of June 10, 2013 there were 23,161,489 shares of the issuer’s
common stock, $0.001 par value, outstanding.















Realbiz Media Group, Inc.



Form 10-Q



Table of Contents



|                               |                                                                                       | Page
|------------------------------ | ------------------------------------------------------------------------------------- | ----
|PART I – FINANCIAL INFORMATION |                                                                                      
|Item 1.                        | Consolidated Financial Statements                                                     | F-1 
|Item 2.                        | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 2   
|Item 3.                        | Quantitative and Qualitative Disclosures About Market Risk                            | 6   
|Item 4.                        | Controls and Procedures                                                               | 6   
|                               |                                                                                       |     
|PART II – OTHER INFORMATION    |                                                                                      
|Item 1.                        | Legal Proceedings                                                                     | 7   
|Item 1A.                       | Risk Factors                                                                          | 7   
|Item 2.                        | Unregistered Sales of Equity Securities                                               | 7   
|Item 3.                        | Defaults Upon Senior Securities                                                       | 7   
|Item 4.                        | Mine Safety Disclosures                                                               | 7   
|Item 5.                        | Other Information                                                                     | 7   
|Item 6.                        | Exhibits                                                                              | 7   
|                               |                                                                                       |     
|SIGNATURES                     | 8                                                                                    
|                               |                                                                                       |     
|EXHIBIT INDEX                  | 8                                                                                    



---











REALBIZ MEDIA GROUP, INC.



CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)



FOR THE THREE AND SIX MONTH

PERIODS ENDED APRIL 30, 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



|                                                                                                                                                                          |  | April 30, 2013 |            |   | October 31, 2012 |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------- | ---------- | - | ---------------- | -
|ASSETS                                                                                                                                                                    |  | (unaudited)    |            |   | (1)              |  
|Current Assets:                                                                                                                                                           |  |                |            |   |                  |  
|Cash and cash equivalents                                                                                                                                                 |  | $              | 25,674     |   |                  | $
|Accounts receivable, net                                                                                                                                                  |  |                | 84,645     |   |                  |  
|Prepaid and other assets                                                                                                                                                  |  |                | 1,126      |   |                  |  
|Total current assets                                                                                                                                                      |  |                | 111,445    |   |                  |  
|                                                                                                                                                                          |  |                |            |   |                  |  
|Property, plant and equipment, net                                                                                                                                        |  |                | -          |   |                  |  
|Intangible assets                                                                                                                                                         |  |                | 4,030,685  |   |                  |  
|Total Assets                                                                                                                                                              |  | $              | 4,142,130  |   |                  | $
|                                                                                                                                                                          |  |                |            |   |                  |  
|LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                      |  |                |            |   |                  |  
|Current Liabilities:                                                                                                                                                      |  |                |            |   |                  |  
|Accounts payable and accrued liabilities                                                                                                                                  |  | $              | 950,197    |   |                  | $
|Deferred revenue                                                                                                                                                          |  |                | 23,787     |   |                  |  
|Advances from affiliate                                                                                                                                                   |  |                | 813,857    |   |                  |  
|Notes payable                                                                                                                                                             |  |                | 605,000    |   |                  |  
|Total current liabilities                                                                                                                                                 |  |                | 2,392,841  |   |                  |  
|                                                                                                                                                                          |  |                |            |   |                  |  
|Total liabilities                                                                                                                                                         |  |                | 2,392,841  |   |                  |  
|                                                                                                                                                                          |  |                |            |   |                  |  
|Shareholders' Equity:                                                                                                                                                     |  |                |            |   |                  |  
|Preferred series A shares $.001 par value 125,000,000 authorized, 94,009,762 and 100,000,000  issued and outstanding at April 30, 2013 and October 31, 2012 respectively. |  |                | 94,010     |   |                  |  
|Common stock $.001 par value, 125,000,000 authorized, 10,255,822 and 383,651 issued and outstanding at April 30, 2013 and October 31, 2012  respectively.                 |  |                | 10,255     |   |                  |  
|Common stock subscribed                                                                                                                                                   |  |                | 12,500     |   |                  |  
|Additional paid in capital                                                                                                                                                |  |                | 9,109,819  |   |                  |  
|Other comprehensive income (loss)                                                                                                                                         |  |                | 14,098     |   |                  |  
|Accumulated deficit                                                                                                                                                       |  |                | (7,491,393 | ) |                  |  
|Total Shareholders' Equity                                                                                                                                                |  |                | 1,749,289  |   |                  |  
|                                                                                                                                                                          |  |                |            |   |                  |  
|Total Liabilities and Shareholders' Equity                                                                                                                                |  | $              | 4,142,130  |   |                  | $



See accompanying
notes to unaudited consolidated financial statements.



(1) Derived from
audited financial statements.





F-2







Real Biz Media Group, Inc.

Consolidated Statements of Operations

(unaudited)



|                                                                        |  | For the Three Months ended April 30, |           |   | For the Six Months ended April 30, |  
|----------------------------------------------------------------------- |  | ------------------------------------ | --------- | - | ---------------------------------- | -
|                                                                        |  | 2013                                 |           |   | 2012                               |  
|Revenues                                                                |  |                                      |           |   |                                    |  
|Real estate revenues                                                    |  | $                                    | 297,907   |   |                                    | $
|Other revenue                                                           |  |                                      | 21,267    |   |                                    |  
|Total revenue                                                           |  |                                      | 319,174   |   |                                    |  
|                                                                        |  |                                      |           |   |                                    |  
|Cost of revenues                                                        |  |                                      | 13,414    |   |                                    |  
|                                                                        |  |                                      |           |   |                                    |  
|Gross profit                                                            |  |                                      | 305,760   |   |                                    |  
|                                                                        |  |                                      |           |   |                                    |  
|Operating expenses                                                      |  |                                      |           |   |                                    |  
|Salaries and benefits expenses                                          |  |                                      | 263,988   |   |                                    |  
|Selling and promotion expenses                                          |  |                                      | 59,734    |   |                                    |  
|General and administrative expenses                                     |  |                                      | 929,884   |   |                                    |  
|Total
    operating expenses                                            |  |                                      | 1,253,606 |   |                                    |  
|                                                                        |  |                                      |           |   |                                    |  
|Operating loss                                                          |  |                                      | (947,846  | ) |                                    |  
|                                                                        |  |                                      |           |   |                                    |  
|Other income (expense)                                                  |  |                                      |           |   |                                    |  
|Gain (loss) on forgiveness of
    notes payable and accrued liabilities |  |                                      | 384,304   |   |                                    |  
|Other income (expense)                                                  |  |                                      | 209       |   |                                    |  
|Total
    other income (expense)                                        |  |                                      | 384,513   |   |                                    |  
|                                                                        |  |                                      |           |   |                                    |  
|Net loss                                                                |  | $                                    | (563,333  | ) |                                    | $
|                                                                        |  |                                      |           |   |                                    |  
|Preferred stock dividend                                                |  |                                      | (125,001  | ) |                                    |  
|                                                                        |  |                                      |           |   |                                    |  
|Net loss applicable to common shareholders                              |  |                                      | (688,334  | ) |                                    |  
|                                                                        |  |                                      |           |   |                                    |  
|Weighted average numbers of shares outstanding                          |  |                                      | 5,173,607 |   |                                    |  
|                                                                        |  |                                      |           |   |                                    |  
|Basic and diluted net loss per share                                    |  | $                                    | (0.13     | ) |                                    | $





|Consolidated Statements of Comprehensive Loss                
|-------------------------------------------------------------
|                                                             
|                                                             
|                                                             
|                                                             
|Net Loss                                                     
|Other comprehensive income (loss)                            
|Unrealized gains (losses) on currency translation adjustments
|Comprehensive loss                                           





See accompanying notes to unaudited consolidated financial statements.





F-3







Real Biz Media Group, Inc.

Consolidated Statements of Cash Flows

(unaudited)



|                                                                                |  | For The Six Months Ended April 30, |         
|------------------------------------------------------------------------------- |  | ---------------------------------- | --------
|                                                                                |  | 2013                               |         
|                                                                                |  |                                    |         
|Cash flows from operating activities:                                           |  |                                    |         
|Net loss                                                                        |  | $                                  | (841,969
|Adjustments to reconcile net loss to net cash provided by operating activities: |  |                                    |         
|Depreciation and amortization                                                   |  |                                    | 765,493 
|Gain on foregiveness of notes payable and accrued liabilities                   |  |                                    | (384,304
|Other comprehensive income (loss)                                               |  |                                    | 19,947  
|Changes in operating assets and liabilities:                                    |  |                                    |         
|Increase in accounts receivable                                                 |  |                                    | (52,976 
|Increase in prepaid and other assets                                            |  |                                    | (1,126  
|Increase (decrease) in accounts payable & accrued libilities                    |  |                                    | 113,236 
|Increase in advances from affiliates                                            |  |                                    | 161,537 
|Decrease in deferred revenue                                                    |  |                                    | (18,072 
|Net cash used in operating activities                                           |  |                                    | (238,234
|Cash flows from financing activities                                            |  |                                    |         
|Proceeds from sales of common stock                                             |  |                                    | 227,500 
|Net cash provided by from financing activities                                  |  |                                    | 227,500 
|                                                                                |  |                                    |         
|Decrease in cash and cash equivalents                                           |  |                                    | (10,734 
|                                                                                |  |                                    |         
|Cash and equivalents, at beginning of period                                    |  |                                    | 36,408  
|                                                                                |  |                                    |         
|Cash and equivalents, at end of period                                          |  | $                                  | 25,674  



See accompanying notes to unaudited consolidated financial statements.





F-4







REALBIZ
MEDIA GROUP, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Three and Six Months Ended April
30, 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 United States Securities Act of 1933,
as amended.  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 Three and Six Months Ended April
30, 2013 and 2012



NOTE 2: SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (continued)



Nature of Business





Realbiz is a Real Estate Media Service
company that has positioned itself in to be both a media specialist and a licensed operator. As such the Company is poised to emerge
as a multi revenue streams from advertising revenues as well as commissions and referral fees. This new “Next Generation”
media company is well positioned to capture revenues from the convergence of TV, Mobile devices and the Internet by providing video,
search and purchase capabilities on multiple platform dynamics for web, mobile, interactivity on TV and Video On Demand. Realbiz
Media currently operates an INTERACTIVE VOD Network for Real Estate in conjunction with its partner Realtor.com. The network is
branded under the name of Home Tour Network and is carried on Cox Communications and Comcast stations. In late May 2012, RealBiz
Media signed a significant multiyear partnership with Realtor.com that included agreements to rebrand the network to “Realtor.com
channel” and expand the network into 55 million households. Additionally the Company has been commissioned to develop a major
real estate web portal and enhanced Widget/Microvideo app platforms to work in conjunction with Realtor.com and other major real
estate brokerage groups.



RealBiz is a leader in digital media and
marketing for the real estate Industry. The Company includes a fully licensed real estate division (formerly known as Webdigs)
, certain key TV media contracts ( Extraordinary Vacation Homes/ Third home) and a Virtual Tour and Media group (Realbiz 360) which
enjoys significant real estate industry servicing contracts. As a combined group, the key driver for all is the Company’s
proprietary technology which allows for an automated conversion of data (text and pictures of home listings) to a video with voice
and music.



Once created, these home listing videos
are automatically distributed to multiple media platforms (Television, broadband, web and mobile) for consumer viewing. From this
core technology the Company has expanded its operations to encompass the following 3 areas:



| | 1. | Home Tour Network - Real Estate Virtual Tour and Video on Demand Agent Offering - real estate agents can have a video
created of their customer’s homes and then posted on television, over 200 real estate websites, You Tube, and mobile applications
for a monthly fee of $89. The Company currently works with over 20,000 agents monthly. This Network offers unique Advertising
Opportunitiesdue to the broad media exposure of highly targeted consumers, the Company is positioned to capture income from
pre-roll/post-roll advertising for televisions, lead generation fees, banner ads and cross market advertising promotions.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2. | Realtor.com Partnership – Expanding Home Tour Networks to include Video Portal, Widget and Mobile applications –the Company is developing a major real estate web portal and Agent Widget Program to work in conjunction with Realtor.com
under a multiyear agreement. Rollout is planned in the second quarter of 2013 and when finished it will include an “all about
home ownership” website for the consumer along with a turnkey marketing model using widgets and microvideo apps for the agents.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3. | Traditional real estate sales –the Company has participating brokers licensed
                                                                      in 38 states and                                                                       is
                                                                      positioned to take advantage of both and improving                                                                       real
                                                                      estate market.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



With the move to automate creation processes in combination with emerging video adoption, Realbiz Media
now develops custom Enterprise solutions to support our existing and new Franchise partners. Though photos and virtual tours are
listed as highly important on the home buyer’s lists, the astonishing growth of YouTube and Social Media fueled by the change
in consumer demographics has left the Real Estate Industry scrambling to keep up. Realbiz Media`s direct feed services into listing
databases provides for the automated creation and syndication of Virtual Tours and YouTube Videos posted directly to YouTube Channels
and promoted on Social Networks. These solutions continue to support our Agent/Broker revenue base through setup and monthly recurring
fees. These capabilities and forward thinking were key elements in the establishment of a multiyear contract with Move.com/Realtor.com.







Basis of Consolidation



The consolidated financial statements for
the three and six months ended April 30, 2013 and 2012 include the operations of Webdigs, Inc.,
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 Three and Six Months Ended April
30, 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.



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 Three and Six Months Ended April
30, 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
three and six months ended April 30, 2013 and 2012, the accumulated comprehensive gain was $19,947 and $14,362, 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:



|                      |  | April 30, 2013 |         |  | April 30, 2012 | 
|--------------------- |  | -------------- | ------- |  | -------------- | 
|Common stock options  |  |                | 4,000   |  |                | 
|Common stock warrants |  |                | 452,000 |  |                | 



All of the common shares underlying
the stock options and warrants above were excluded from diluted weighted average shares outstanding for the three and six months
ended April 30, 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 Three and Six Months Ended April
30, 2013 and 2012



NOTE 2: SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (continued)



Recently Issued Accounting Pronouncements





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 $841,969
and $400,381 for the six months ended April 30, 2013 and 2012 respectively. At April 30, 2013, the Company had a working capital
deficit of $2,281,396 and an accumulated deficit of $7,491,393. 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 Three and Six Months Ended April
30, 2013 and 2012



NOTE 4: INTANGIBLE
ASSETS



At April 30, 2013 and October 31, 2012,
the Company’s intangible assets, related to a sales/marketing agreement, are as follows:



|                 |  | Gross Carrying Amount |           |  | Accumulated Amortization |   |         | Net Carrying Amount | 
|---------------- |  | --------------------- | --------- |  | ------------------------ | - | ------- | ------------------- | 
|April 30, 2013   |  | $                     | 4,796,178 |  |                          | $ | 766,293 |                     | 
|October 31, 2012 |  | $                     | 4,796,178 |  |                          | $ | -       |                     | 







On October 3, 2012, Next 1 Interactive,
Inc. (“Next 1”) entered a securities exchange agreement and exercised the option purchase agreement to purchase 664.1
common shares of Real Biz Holdings, Inc. Next 1 applied $300,000 of cash, issued a Series D Preferred stock subscription agreement
for 380,000 shares and agreed to a $50,000 thirty day (30) day post closing final buyout bringing the total value of the agreement
to $2,250,000.





Next 1 accounted for the acquisition utilizing
the purchase method of accounting in accordance with ASC 805 "Business Combinations". Next 1 is the acquirer for accounting
purposes and Real Biz Holdings, Inc. is the acquired Company. Accordingly, Next 1 applied push-down accounting and adjusted to
fair value all of the assets and liabilities directly on the financial statements of the subsidiary, Real Biz Holdings, Inc.



The net purchase price, including acquisition
costs paid by Next 1, was allocated to assets acquired and liabilities assume on the records of the Next 1 as follows:



|Cash                                                                |  | $ | 34,366    | 
|------------------------------------------------------------------- |  | - | --------- | 
|Other current assets                                                |  |   | 40,696    | 
|Intangible asset                                                    |  |   | 4,796,178 | 
|                                                                    |  |   | 4,871,240 | 
|                                                                    |  |   |           | 
|Accounts payable, accrued expenses and other miscellaneous payables |  |   | 2,330,846 | 
|Deferred revenue                                                    |  |   | 48,569    | 
|Convertible notes payable to officer                                |  |   | 241,825   | 
|                                                                    |  |   | 2,621,240 | 
|Net purchase price                                                  |  | $ | 2,250,000 | 



For the six months ended April 30, 2013, the Company recorded amortization of $766,293. For the six months
ended April 30, 2012, no amortization was recorded.





NOTE 5: ACCOUNTS PAYABLE AND ACCRUED
LIABILITIES



At April 30, 2013, the Company’s
accounts payable and accrued liabilities are as follows:



|                                               |  | April 30, 2013 |        
|---------------------------------------------- |  | -------------- | -------
|Trade payables and accruals                    |  | $              | 104,704
|Preferred stock dividend accruals              |  |                | 765,493
|Professional Fees                              |  |                | 30,000 
|Payroll and commissions (1)                    |  |                | 50,000 
|Total accounts payable and accrued liabilities |  | $              | 950,197



| | (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. As of April 30, 2013, advances to RealBiz owed
$813,857.



NOTE 7: NOTES PAYABLE



As of April 30, 2013, as part of the
Acknew Purchase Agreement, the remaining obligation to Acknew totaled $-0-. This payment obligation of $50,000 was satisfied
on March 22, 2013 resulting in a gain on forgiveness of notes and loans payable of $374,040.



As of April 30, 2013, the Company
has a Convertible Note Payable of $605,000 outstanding. This Note is Convertible into the Company’s common stock at
$0.15 per share and bears no interest.





F-10







REALBIZ
MEDIA GROUP, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Three and Six Months Ended April
30, 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 April 30, 2013, are 1,000 options at $50 per share and the weighted
average remaining term is 1.5 years. The aggregate intrinsic value represents the difference between the closing stock price on
April 30, 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 April 30, 2013.  There were no options exercised during the
three and six months ended April 30, 2013.



NOTE 9: SHAREHOLDERS’ EQUITY



As of April 30, 2013, the Company had 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.





During the six months ended April 30, 2013, the Company:



| | • | Issued 455,000 shares of its common stock along with
450,000 one year warrants with an exercise price of $1 for cash proceeds of $227,500.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------



| | • | Issued 124,500 shares of its common stock along with
2,000 one year warrants with an exercise price of $1 for a total value of $63,418 for consulting fees rendered. The value of the
common stock was issued was based on the fair value of the stock at the time of issuance. The value of the warrants was estimated
at the time of grant using the Black-Scholes option pricing model with the following assumptions: risk free interest rate of 0.12%,
dividend yield of -0-%, volatility factor of 177.07% and expected life of one year.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Issued 3,302,433 shares of its common stock valued
at $352,800 upon the conversion of the holders of convertible preferred shares and promissory notes held in its parent company
Next 1 Interactive, Inc.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Issued 5,990,238 shares of its common stock valued
at $389,355 upon the conversion of 5,990,238 shares of the Company's Series A Preferred stock.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Entered into a subscription agreement for 116,660
shares of its common stock valued at $12,500 and as of April 30, 2013 the shares have not been issued.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------





Preferred Stock Series A



As of April 30, 2013, the Company had 94,009,762
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 originally recorded $5,016,506 of additional paid-in-capital.



Accrued but unpaid preferred stock dividends
on the outstanding preferred shares totaled $765,493 as of April 30, 2013 and is included in accrued liabilities.



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-11







REALBIZ
MEDIA GROUP, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Three and Six Months Ended April
30, 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. The two principals of this advertising company were also minority
stockholders in the Company - holding approximately 1.6% of the Company’s outstanding shares. During the three months
ended April 30, 2012, this note was sold to a different outside person and is now reported as a Convertible Note Payable of
$605,000 after a $10,264 gain was recorded.



Advance from Affiliate



As of April 30, 2013, the Company was advanced
$1,344,157 from Next 1 Interactive, Inc. and $813,857 remains due.



NOTE 11: SUBSEQUENT EVENTS



Between May 28, 2013 and June 7, 2013,
the Company issued 139,000 common shares at $0.50 per share for proceeds of $69,500.



On May 28, 2013, an investor in
Next 1 Interactive, Inc., the parent company, converted 3,000 Next 1 Series D Dual Convertible Preferred Shares into 100,000 common shares of Realbiz.



On June 7, 2013, Acknew
Investments, Inc., former owners of Realbiz, converted their 380,000 Next 1 Series D Dual Convertible Preferred Shares and
were issued 12,666,667 common shares of Realbiz.





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



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.



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.





2







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 three months ended April 30,
2013 compared to the three months ended April 30, 2012



Revenues



Our total revenues increased 10% to $319,174
for the three months ended April 30, 2013, compared to $290,873 for the three months ended April 30, 2012, an increase of $28,301.
The increase is due to increased real estate revenue from virtual tours as the real estate environment slowly improves.



Revenues from real estate increased 2%
to $297,907 for the three months ended April 30, 2013, compared to $272,674 for the three months ended April 30, 2012, an increase
of $25,233. The increase is due to increased real estate revenue from virtual tours.



Revenues from other sources, increased
17% to $21,267 for the three months ended April 30, 2013, compared to $18,199 for the three months ended April 30, 2012, an increase
of $3,068. This increase was due to the real estate environment slowly improving in bulk sales.



Cost of Revenue



Cost of revenues decreased 46% to $13,414
for three months ended April 30, 2013, compared to $24,831 for the three months ended April 30, 2012, a decrease of $11,417. 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.



Operating Expenses



Our total operating expenses increased
174% or $796,720 to $1,253,606 for the three months ended April 30, 2013, compared to $456,886 for the three months ended April
30, 2012. The increase was primarily due to an increase of $819,054 in general and administrative expenses due to the amoritization
of intangible assets.



Other Income (Expense)



Gain on forgiveness of notes payable and
accrued liabilities increased to $384,304 to account for expenses related to previous officers for the three months ended April
30, 2013, compared to a loss of $895 for three months ended April 30, 2012.



Net Loss



Net loss increased 219% to $563,333 for
the three months ended April 30, 2013, compared to net loss of $176,740 for the three months end April 30, 2012, a decrease of
$386,593 primarily due to the increased costs.





3







For the six months ended April 30, 2013
compared to the six months ended April 30, 2012



Revenues



Our total revenues decreased 4% to $591,169
for the six months ended April 30, 2013, compared to $617,620 for the six months ended April 30, 2012, a decrease of $26,451. The
decrease is due to reduced real estate revenue from virtual tours due to drop in available listings.



Revenues from real estate decreased 0%
to $556,235 for the six months ended April 30, 2013, compared to $557,100 for the six months ended April 30, 2012, a decrease of
$865. The decrease is due to reduced real estate revenue from a drop in available listings.



Revenues from other sources, decreased
42% to $34,934 for the six months ended April 30, 2013, compared to $60,520 for the six months ended April 30, 2012, a decrease
of $25,586. This decrease was due to reduced real estate revenue from a drop in available listings



Cost of Revenue



Cost of revenues decreased 33% to $35,619
for six months ended April 30, 2013, compared to $53,477 for the six months ended April 30, 2012, a decrease of $17,858. 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
82% or $800,679 to $1,779,242 for the six months ended April 30, 2013, compared to $978,564 for the six months ended April 30,
2012. The increase was primarily due to an increase of $819,054 in general and administrative expenses due to the amoritization
of intangible assets.



Other Income (Expense)



Gain on forgiveness of notes payable and
accrued liabilities increased to $384,304 to account for expenses related to previous officers for the three months ended April
30, 2013, compared to a loss of $960 for six months ended April 30, 2012.



Net Loss



Net loss increased 110% to $841,969
for the six months ended April 30, 2013, compared to net loss of $400,381 for the six months end April 30, 2012, an increase
in loss of $441,588 primarily due to increased 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 April 30, 2013, the Company had $25,674
cash on-hand, a decrease of $10,734 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
$238,234 for the six months ended April 30, 2013, a decrease of $135,166 from $103,068 used during the six months ended April 30,
2012. This decrease was due to  additional amortization offset by gain on forgiveness of liabilities and additional net loss.





4







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 six monthss ended April 30, 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 April 30, 2013 and 2012, the Company considers its accounts receivable to be fully collectible and therefore, has
not recorded an allowance for doubtful accounts.



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



We do not hold any derivative instruments and do not
engage in any hedging activities.



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 rules
and forms of the Securities and Exchange Commission (the “SEC”), 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 April 30, 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 April
30, 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 April 30,
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.



We believe there are no changes that constitute material changes
from the risk factors previously disclosed in the Company’s Annual Report on Form 10-K/A for the fiscal year ended October
31, 2012, filed with the SEC on February 20, 2013.



Item 2.  Unregistered Sales of Equity Securities



There were no unregistered sales of the
Company’s equity securities during the three months ended April 30, 2013 that were not exempt from registration under Rule
144.



Item 3.  Defaults Upon Senior Securities



There were no defaults upon senior securities during the quarter
ended April 30, 2013.



Item 4.  Mine Safety Disclosures



Not applicable



Item 5.  Other Information



There is no other information required
to be disclosed under this item which was not previously disclosed.





Item 6.  Exhibits.





|Exhibit
        Number |  | Description                                                                                                                                                   
|---------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------
|                       |  |                                                                                                                                                               
|31.1                   |  | Certification by the Principal Executive Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)).* 
|                       |  |                                                                                                                                                               
|31.2                   |  | Certification by the Principal Accounting Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)).*
|                       |  |                                                                                                                                                               
|32.1                   |  | Certification by the Principal Executive Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*            
|                       |  |                                                                                                                                                               
|32.2                   |  | Certification by the Principal Accounting Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*           



* filed herewith







7









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
| | June 19, 2013                        
| |                                      
| | /s/ Adam Friedman                    
| | Adam Friedman                        
| | Chief Financial Officer              
| | June 19, 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 |  | June 19, 2013
|William Kerby     |  | (Principal Executive Officer)        |  |              
|                  |  |                                      |  |              
|/s/ Adam Friedman |  | Chief Financial Officer              |  | June 19, 2013
|Adam Friedman     |  | (Principal Financial Officer)        |  |              





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