10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended July 31, 2016

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: 000-51791

INNOVATIVE DESIGNS, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	03-0465528
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

124 Cherry Street

Pittsburgh, Pennsylvania 15223

(Address of Principal Executive Offices, Zip Code)

(412) 799-0350

(Issuer’s Phone Number Including Area Code)

N/A

(Former Name or Former Address, if changed since last report)

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 and 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 such filing requirements for the past 90 days.

YES  x        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 during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files).  YES  x        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 definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting Company” in Rule 12b-2 of the Exchange Act.

(Check One)

Large Accelerated Filer ¨	Accelerated Filer ¨
Non-accelerated Filer ¨	Smaller reporting company x

(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).                 YES  ¨        NO  x

As of September 19, 2016, there were 25,370,310 shares of the Registrant’s common stock, par value $.0001 per share, outstanding.

Transitional Small Business Disclosure Format:          YES  ¨        NO  x

Innovative Designs, Inc.

Index

Form 10-Q for the Quarter Ended July 31, 2016

		Page No.
	Part I — Financial Information
Item 1.	Condensed Financial Statements (Unaudited)
	Condensed Balance Sheets as of July 31, 2016 (Unaudited) and October 31, 2015	1
	Condensed Statements of Operations for the Three and Nine Month Periods Ended July 31, 2016 and 2015 (Unaudited)	2
	Condensed Statements of Changes in Stockholders’ Equity as of July 31, 2016 (Unaudited) and October 31, 2015	3
	Condensed Statements of Cash Flows for the Nine Month Periods Ended July 31, 2016 and 2015 (Unaudited)	4
	Notes to the Condensed Financial Statements	5 - 9
Item 2.	Management’s Discussion and Analysis of Financial Condition  and Results of Operations	10 - 13
	Part II — Other Information
Items 1., 2., 3. and 4T		14 - 15
Item 6.	Exhibits	16

ITEM 1. CONDENSED FINANCIAL STATEMENTS

INNOVATIVE DESIGNS, INC.

CONDENSED BALANCE SHEETS

July 31, 2016 (Unaudited) and October 31, 2015

	2016			2015
ASSETS
CURRENT ASSETS
Cash	$	798,368		$	1,151,904
Accounts receivable		57,814			85,827
Inventory - net of obsolete inventory reserve of $40,000		977,767			924,054
Inventory on consignment		1,625			-
Deposits on inventory		-			78,320
Prepaid expenses		12,644			7,619
Total current assets		1,848,218			2,247,724
PROPERTY AND EQUIPMENT - NET		149,115			51,200
OTHER ASSETS
Advance to employee		4,000			-
Deposits on equipment		607,000			420,000
TOTAL ASSETS	$	2,608,333		$	2,718,924
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	93,850		$	119,360
Current portion of notes payable		15,467			14,657
Accrued interest expense		58,233			78,251
Due to shareholders		174,500			354,130
Accrued expenses		97,155			92,533
Total current liabilities		439,205			658,931
Long-term portion of notes payable		201,454			235,146
TOTAL LIABILITIES		640,659			894,077
STOCKHOLDERS' EQUITY
Preferred stock, $0.0001 par value, 25,000,000 shares authorized		-			-
Common stock, $0.0001 par value, 100,000,000 shares authorized, and 25,340,310 and 24,371,310 issued and outstanding as of July 31, 2016 and October 31, 2015		2,534			2,437
Additional paid-in capital		9,440,677			8,902,744
Accumulated deficit		(7,475,537	)		(7,080,334	)
Total stockholders' equity		1,967,674			1,824,847
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,608,333		$	2,718,924

The accompanying condensed notes are an integral part of these financial statements.

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INNOVATIVE DESIGNS, INC.

CONDENSED STATEMENTS OF OPERATIONS

Three and Nine Month Periods Ended July 31, 2016 and 2015 (Unaudited)

	Three Month Periods Ended July 31,						Nine Month Periods Ended July 31,
	2016			2015			2016			2015
REVENUES - NET	$	159,643		$	46,593		$	497,807		$	549,374
OPERATING EXPENSES:
Cost of sales		75,944			24,903			258,895			277,817
Selling, general and administrative expenses		184,999			224,426			580,953			541,207
		260,943			249,329			839,848			819,024
LOSS FROM OPERATIONS		(101,300	)		(202,736	)		(342,041	)		(269,650	)
OTHER INCOME/(EXPENSE)
Miscellaneous income		-			-			-			390
Interest expense		(15,156	)		(31,227	)		(53,162	)		(70,736	)
Total other expense		(15,156	)		(31,227	)		(53,162	)		(70,346	)
NET LOSS	$	(116,456	)	$	(233,963	)	$	(395,203	)	$	(339,996	)
PER SHARE INFORMATION
Net Loss Per Common Share	$	(0.005	)	$	(0.010	)	$	(0.016	)	$	(0.015	)
Weighted Average Number of Common Shares Outstanding		25,340,310			23,708,444			25,045,664			23,153,055

The accompanying condensed notes are an integral part of these financial statements.

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INNOVATIVE DESIGNS, INC.

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

July 31, 2016 (Unaudited) and October 31, 2015

	Common Stock		Common Stock		Additional		Accumulated
	Number of Shares		Amount		Paid-in Capital		Deficit			Total
Balance at October 31, 2014		22,438,043	$	2,244	$	7,522,487	$	(6,568,734	)	$	955,997
Shares issued for services		107,000		10		98,990		-			99,000
Shares issued for debt conversion		122,667		12		91,988		-			92,000
Sale of stock		1,703,600		171		1,189,279		-			1,189,450
Net loss		-		-		-		(511,600	)		(511,600	)
Balance at October 31, 2015		24,371,310		2,437		8,902,744		(7,080,334	)		1,824,847
Shares issued for services related to fixed asset additions		30,000		3		23,997		-			24,000
Shares issued for services		90,000		9		52,191		-			52,200
Sale of stock		849,000		85		461,745		-			461,830
Net loss		-		-		-		(395,203	)		(395,203	)
Balance at July 31, 2016		25,340,310	$	2,534	$	9,440,677	$	(7,475,537	)	$	1,967,674

The accompanying condensed notes are an integral part of these financial statements.

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INNOVATIVE DESIGNS, INC.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Month Periods Ended July 31, 2016 and 2015 (Unaudited)

	For the Nine Month Periods Ended
	July 31, 2016			July 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(395,203	)	$	(339,996	)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for services		52,200			57,000
Amortization		-			999
Depreciation		14,384			7,226
Increase (decrease) from changes in:
Accounts receivable		28,013			29,116
Other receivable		-			30,000
Inventory		(53,713	)		(39,992	)
Inventory on consignment		(1,625	)		-
Deposits on inventory		78,320			-
Prepaid expenses		(5,025	)		(4,922	)
Advance to employee		(4,000	)		-
Accounts payable		(25,510	)		(32,308	)
Accrued interest expense		(20,018	)		43,664
Accrued expenses		4,622			9,088
Net cash used in operating activities		(327,555	)		(240,125	)
CASH FLOWS FROM INVESTING ACTIVITIES
Deposits on equipment		(187,000	)		(200,000	)
Capital expenditures		(88,299	)		-
Net cash used in investing activities		(275,299	)		(200,000	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock		461,830			1,086,950
Payments on shareholder advances		(179,630	)		(70,000	)
Proceeds from shareholder advances		-			69,130
Payments on notes payable		(32,882	)		(128,135	)
Net cash provided by financing activities		249,318			957,945
Net (decrease) increase in cash		(353,536	)		517,820
CASH, BEGINNING OF YEAR		1,151,904			988,681
CASH, END OF THE PERIOD	$	798,368		$	1,506,501
Supplemental disclosure of cash flow information:
Cash paid for interest	$	73,180		$	27,072
Supplemental schedule of noncash financing activies:
Stock issued for services related to fixed asset additions	$	24,000		$	-
Stock issuance for conversion of accrued interest		-			92,000

The accompanying condensed notes are an integral part of these financial statements.

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INNOVATIVE DESIGNS, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

Nine Month Periods Ended July 31, 2016 and 2015 (Unaudited)

NOTE 1. In the opinion of management, the accompanying unaudited financial statements contain all adjustments necessary to present fairly Innovative Designs, Inc.’s financial position as of July 31, 2016, the changes therein for the three and nine month periods then ended and the results of operations for the three and nine month periods ended July 31, 2016 and 2015.

NOTE 2. The financial statements included in the Form 10-Q are presented in accordance with the requirements of the Form and do not include all of the disclosures required by accounting principles generally accepted in the United States of America. For additional information, reference is made to the Company’s annual report on Form 10-K for the fiscal year ended October 31, 2015. The results of operations for the three and nine month periods ended July 31, 2016 and 2015 are not necessarily indicative of operating results for the full year.

NOTE 3. INVENTORY

Inventory consists principally of purchased apparel inventory and House Wrap which is manufactured by the Company. Inventory is stated at the lower of cost or net realizable value on a first-in, first-out basis. Innovative Designs, Inc. (the “Company”) has decided to discontinue the manufacturing of its hunting and swimming line of apparel. The Company has booked a reserve against this inventory at July 31, 2016 and October 31, 2015 of $40,000. Management will continue to evaluate its obsolete inventory reserve throughout the year and make adjustments as needed.

NOTE 4. EARNINGS PER SHARE

The Company calculates net income (loss) per share in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 260 “Earnings per Share”. Basic earnings (loss) per share is calculated by dividing income (loss) by the weighted average number of common shares outstanding for the period. During the periods presented, the Company only has common stock outstanding. As a result, diluted earnings per share was not calculated.

NOTE 5. INCOME TAXES

The Company accounts for income taxes in accordance with ASC Topic 740 "Income Taxes", which requires an asset and liability approach for financial reporting purposes.

Deferred income taxes are provided for differences between the tax bases of assets and liabilities and the financial reporting amounts at the end of the period, and for net operating loss and tax credit carryforwards available to offset future taxable income. Changes in enacted tax rates or laws result in adjustments to recorded deferred tax assets and liabilities in the periods in which the tax laws are enacted or tax rates are changed. The Company will continue to evaluate its income tax obligation throughout the year and will record a tax provision when it is necessary.

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INNOVATIVE DESIGNS, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

Nine Month Periods Ended July 31, 2016 and 2015 (Unaudited)

NOTE 6. SHIPPING AND HANDLING COSTS

The Company pays shipping and handling costs on behalf of customers for purchased apparel merchandise. These costs are billed back to the customer through the billing invoice. The shipping and handling costs associated with merchandise ordered by the Company are included as part of inventory as these costs are allocated across the merchandise received. With House Wrap orders, the customer pays the shipping cost. The shipping and handling costs associated with customer orders was approximately $25,000 and $29,000 for the nine month periods ended July 31, 2016 and 2015, respectively.

NOTE 7. COMMON STOCK

During the three month period ended January 31, 2016, the Company sold its stock to seven investors. The stock was issued for prices from $0.54 - $0.60 per share. A total of 579,000 shares of common stock were sold, resulting in proceeds of $314,830. In addition, the Company issued 90,000 shares to three individuals for services performed during the period. The shares issued were valued at $0.50 - $0.73 per share or an aggregate price of $52,200. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because these transactions did not involve a public offering and there was no general solicitation or general advertising involved in these transactions. We placed legends on the stock certificates stating that the securities were not registered under the Securities Act and set forth the restrictions on their transferability and sale.

During the three month period ended April 30, 2016, the Company sold its stock to three investors. The stock was issued for prices from $0.52-$0.55 per share. A total of 270,000 shares of common stock were sold, resulting in proceeds of $147,000. In addition, the Company issued 30,000 shares for services performed related to fixed asset additions during March 2016. The shares were issued at $0.80 per share or an aggregate price of $24,000. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because these transactions did not involve a public offering and there was no general solicitation or general advertising involved in these transactions. We placed legends on the stock certificates stating that the securities were not registered under the Securities Act and set forth the restrictions on their transferability and sale.

During the three month period ended July 31, 2016, there was no stock sold or issued.

NOTE 8. DEPOSITS ON EQUIPMENT

On July 12, 2015 the Company reached an agreement with Ketut Jaya to purchase the machinery and equipment utilized to produce the INSULTEX material. The purchase price is $700,000 which was to be paid in four installments. The first installment of $300,000 was to be paid at the execution of the agreement. The second installment of $200,000 was to be paid when the machinery and equipment is ready to be shipped to the United States. The third installment of $100,000 is to be paid once the machinery and equipment is producing INSULTEX, and the fourth and final installment of $100,000 is to made after the first commercial production run of INSULTEX is completed. As of July 31, 2016, the Company has made payments of $590,000. Additionally, the Company has incurred $17,000 of additional expenses related to shipping, site improvements and installation of the equipment.

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INNOVATIVE DESIGNS, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

Nine Month Periods Ended July 31, 2016 and 2015 (Unaudited)

NOTE 9. SEGMENT INFORMATION

We have organized our operations into two segments. We rely on an internal management reporting process that provides segment information for purposes of making financial decisions and allocating resources.

The following tables present our business segment information for the Nine month periods ended July 31, 2016 and 2015:

	2016		2015
Revenues:
Apparel	$	195,949	$	328,820
Housewrap		301,858		220,554
Total Revenues	$	497,807	$	549,374
Assets:
Apparel	$	1,316,622	$	1,985,066
Housewrap		1,291,711		742,946
Total	$	2,608,333	$	2,728,012
Capital Expenditures:
Housewrap	$	88,299	$	-
Total	$	88,299	$	-
Depreciation:
Apparel	$	1,388	$	1,395
Housewrap		12,996		5,831
Total	$	14,384	$	7,226

NOTE 10. CORRECTION OF AN ERROR

While preparing the interim financial statements, management became aware of an error in inventory related to the cost calculation for House Wrap that was produced during the 2016. This error has been adjusted for in the financial statements for the period ended July 31, 2016, but resulted in an overstatement of cost of goods sold by $13,972, an overstatement of inventory by $8,841, and an overstatement of accrued expenses of $22,813 during the period ended April 30, 2016. The following tables summarize the corrections of previously reported amounts:

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INNOVATIVE DESIGNS, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

Nine Month Periods Ended July 31, 2016 and 2015 (Unaudited)

	Three Month Periods Ended April 30,						Six Month Periods Ended April 30,
	2016						2016
	as report			as adjusted			as report			as adjusted
Statement of Operations
Cost of sales	$	84,197		$	70,225		$	182,951		$	168,979
Loss from operations		(126,009	)		(112,037	)		(240,741	)		(226,769	)
Net loss	$	(145,535	)	$	(131,563	)	$	(278,747	)	$	(264,775	)
Net Loss Per Common Share	$	(0.006	)	$	(0.005	)	$	(0.011	)	$	(0.011	)

	Six Month Periods Ended April 30, 2016
	as report		as adjusted
Balance Sheet
Inventory - net of obsolete inventory reserve of $40,000	$	1,008,165	$	999,324
Total Asset		2,841,660		2,832,819
Accrued expenses		150,828		128,015
Total Liabilities		757,530		734,717
Stockholders Equity		2,084,130		2,098,102
Total Liabilities And Stockholders Equity	$	2,841,660	$	2,832,819

	Six Month Periods Ended April 30,
	2016
	as report			as adjusted
Statement of Stockholder’s Equity
Net loss	$	(278,747	)	$	(264,775	)
Stockholders deficit		(7,359,081	)		(7,345,109	)
Total stockholders equity	$	2,084,130		$	2,098,102

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INNOVATIVE DESIGNS, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

Nine Month Periods Ended July 31, 2016 and 2015 (Unaudited)

NOTE 11. SUBSEQUENT EVENTS

The Company has evaluated subsequent events in accordance with ASC Topic 855, “Subsequent Events”, through September 19, 2016, which is the date financial statements were available to be issued. No subsequent event items were identified except the item discussed below by the Company.

In September 2016, the Company issued 30,000 shares of its common stock for professional services at $0.50 per share, or $15,000.

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INNOVATIVE DESIGNS, INC.

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

General

The following information should be read in conjunction with the consolidated financial statements and the notes thereto and in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended October 31, 2015.

Disclosure Regarding Forward-Looking Statements

Certain statements made in this report, and other written or oral statements made by or on behalf of the Company, may constitute “forward-looking statements” within the meaning of the federal securities laws. When used in this report, the words “believes,” “expects,” “estimates,” “intends” and similar expressions are intended to identify forward-looking statements. Statements regarding future events and developments and our future performance, as well as our expectations, beliefs, plans, intentions, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. Examples of such statements in this report include descriptions of our plans and strategies with respect to developing certain market opportunities and our overall business plan. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected. We believe that these forward-looking statements are reasonable; however, you should not place undue reliance on such statements. These statements are based on current expectations and speak only as of the date of such statements. We undertake no obligations to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.

Background

Innovative Designs, Inc. (hereinafter referred to as the “Company”, “we or “our”) was formed on June 25, 2002. We market and sell clothing products such as outdoor apparel, and cold weather gear called “Arctic Armor” that are made from INSULTEX, a material with buoyancy, scent block and thermal resistant properties. We also market our House Wrap product line which is a building material with thermal qualities. House Wrap is also made from INSULTEX. We obtain INSULTEX through a license agreement with the owner and manufacturer of the material. Since our formation we have devoted our efforts to:

· Completing the development, design and prototypes of our products,

· Obtaining retail stores or sales agents to offer and sell our products,

· Developing our website to sell more of our products, and

· Establishing distribution channels for our House Wrap product.

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INNOVATIVE DESIGNS, INC.

Results of Operations

Comparison of the Three Month Period Ended July 31, 2016 with the Three Month Period Ended July 31, 2015.

The following table shows a comparison of the results of operations between the three month periods ended July 31, 2016 and July 31, 2015:

	Three Month						Three Month
	Period Ended						Period Ended
	July 31,			% of			July 31,			% of			Increase
	2016			Sales			2015			Sales			(Decrease)			% Change
REVENUE	$	159,643			100.00	%	$	46,593			100.00	%	$	113,050			242.63	%
OPERATING EXPENSES
Cost of sales		75,944			47.57	%		24,903			53.45	%		51,041			204.96	%
Selling, general and administrative expenses		184,999			115.88	%		224,426			481.67	%		(39,427	)		-17.57	%
Loss from operations		(101,300	)		-63.45	%		(202,736	)		-435.12	%		101,436			-50.03	%
OTHER EXPENSE
Interest expense		(15,156	)		-9.49	%		(31,227	)		-67.02	%		16,071			-51.47	%
Net loss	$	(116,456	)		-72.95	%	$	(233,963	)		-502.14	%	$	117,507			-50.22	%

Revenues for the quarter ended July 31, 2016 were $159,643 compared to revenues of $46,593 for the quarter ended July 31, 2015. The increase is caused, primarily, by the increased sales of our House Wrap product line. See Note 9 of the Notes to the Condensed Financial Statements appearing elsewhere in this Report for a description of our segment products sales. Our net loss for the three month period ended July 31, 2016 was ($116,456).

Our selling, general and administrative expenses were $184,999 for the three months ended July 31, 2016 compared to $224,426 for the three month period ended July 31, 2015. The decrease was a result, in part, by lower professional fees. We expect our professional fees to increase in the current period ending October 31, 2016.

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INNOVATIVE DESIGNS, INC.

Comparison of the Nine Month Period Ended July 31, 2016 with the Nine Month Period ended July 31, 2015.

The following table shows a comparison of the results of operations between the nine month periods ended July 31, 2016 and July 31, 2015:

	Nine Month						Nine Month
	Period Ended						Period Ended
	July 31,			% of			July 31,			% of			Increase
	2016			Sales			2015			Sales			(Decrease)			% Change
REVENUE	$	497,807			100.00	%	$	549,374			100.00	%	$	(51,567	)		-9.39	%
OPERATING EXPENSES
Cost of sales		258,895			52.01	%		277,817			50.57	%		(18,922	)		-6.81	%
Selling, general and administrative expenses		580,953			116.70	%		541,207			98.51	%		39,746			7.34	%
Loss from operations		(342,041	)		-68.71	%		(269,650	)		-49.08	%		(72,391	)		26.85	%
OTHER INCOME/(EXPENSE)
Miscellaneous income		-			0.00	%		390			0.07	%		(390	)		-100.00	%
Interest expense		(53,162	)		-10.68	%		(70,736	)		-12.88	%		17,574			-24.84	%
Net loss	$	(395,203	)		-79.39	%	$	(339,996	)		-61.89	%	$	(55,207	)		16.24	%

Revenues for the period ended July 31, 2016 were $497,807 compared to revenues of $549,374 for the period ended July 31, 2015. The decrease in revenue was largely the result of decreased sales of our apparel product line caused by the warmer weather in our target market areas. During the nine month period ended July 31, 2016, apparel sales totaled $195,949 in comparison with $328,820 during the nine month period ended July 31, 2015. We continue focusing most of our resources and efforts toward the development of a market for our House Wrap product line including the purchase of a machine capable of producing INSULTEX. We are in the permitting stage relating to environmental issues necessary to begin the installation and domestic production of our INSULTEX material. During the nine month period ended July 31, 2016 House Wrap sales totaled $301,858 in comparison with $220,554 during the nine month period ended July 31, 2015. Our net loss for the nine months ended July 31, 2016 was $(395,203).

Our selling, general and administrative expenses were $580,953 for the nine months ended July 31, 2016 compared to $541,207 for the nine month period ended July 31, 2015. The increase is largely attributable to an increase in professional fees for the current period. The professional fees are primarily related to the inquiry by the Federal Trade Commission.

Liquidity and Capital Resources

During the quarter ended July 31, 2016, we funded our operations from revenues from sales.

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INNOVATIVE DESIGNS, INC.

Short Term: We will continue to fund our operations from sales and the sale of our securities. We continue to pay our creditors when payments are due. We will require more funds to be able to order the material for our House Wrap and apparel products and to purchase equipment needed for the manufacture of the INSULTEX product. The Company has reached an agreement with the manufacturer of the INSULTEX material to purchase a machine capable of producing the INSULTEX material. Also included in the proposed agreement will be the propriety formula that creates INSULTEX. The Company took delivery of the equipment in December 2015. We are in the permitting stage relating to environmental issues necessary to begin the installation of the equipment. The Company has currently made deposits of $590,000 on the equipment. The Company has incurred $17,000 of additional expenses related to shipping. The Company will produce INSULTEX under its own brand name. See Note 8 of the Notes to the Condensed Financial Statements.

Long Term: The Company will continue to fund its operations from revenues, borrowings from private parties and the possible sale of our securities. Should we not be able to rely on the private sources for borrowing and /or increased sales, our operations would be severely affected as we would not be able to fund our purchase orders to our suppliers for finished goods and our efforts to produce our own INSULTEX would be delayed.

- 13 -

INNOVATIVE DESIGNS, INC.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDING

The Company is engaged in a matter with the Federal Trade Commission. A Form 8-K filed June 2, 2016, describing this matter is incorporated herein by reference.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During the three month period ended January 31, 2016, the Company sold its stock to seven investors. The stock was issued for prices from $0.54 - $0.60 per share. A total of 579,000 shares of common stock were sold, resulting in proceeds of $314,830. In addition, the Company issued 90,000 shares to three individuals for services performed during the period. The shares issued were valued at $0.50 - $0.73 per share or an aggregate price of $52,200. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because these transactions did not involve a public offering and there was no general solicitation or general advertising involved in these transactions. We placed legends on the stock certificates stating that the securities were not registered under the Securities Act and set forth the restrictions on their transferability and sale.

During the three month period ended April 30, 2016, the Company sold its stock to four investors. The stock was issued for prices from $0.52-$0.80 per share. A total of 300,000 shares of common stock were sold, resulting in proceeds of $171,000. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because these transactions did not involve a public offering and there was no general solicitation or general advertising involved in these transactions. We placed legends on the stock certificates stating that the securities were not registered under the Securities Act and set forth the restrictions on their transferability and sale.

During the three month period ended July 31, 2016, there was no stock sold or issued.

ITEM 3. QUANTITATATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a smaller reporting company, we are not required to provide the information otherwise required by this Item.

ITEM 4T. CONTROLS AND PROCEDURES

Management has developed and implemented a policy and procedures for reviewing, on a quarterly basis, our disclosure controls and procedures. During the quarter ended July 31, 2016, our principle executive/financial officer concluded that these controls and procedures were ineffective. At this time we do not have the financial resources to employ a financial staff with accounting and financial expertise, once we have the necessary financial resources, we plan to hire and designate an individual responsible for identifying reportable developments and to implement procedures designed to remediate the material weakness by focusing additional attention and resources in our internal accounting functions. During the second quarter of 2016, the Company was not able to close the books and records in a timely fashion. Consequently, the Company was unable to file its Form 10-Q for the period ended April 30, 2016 and July 31, 2016 within the timeline established by the SEC and was required to seek an extension for filing the form. There were no reclassifications made during the first or second quarter of 2016. Further, the Company was required to amend its previously filed Form 10Q for the quarter ended April 30, 2016.

- 14 -

INNOVATIVE DESIGNS, INC.

Changes in Internal Control Over Financial Reporting

During the most recent fiscal quarter, there were no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13(a)-15 or 15d-15 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Until the Company has the financial resources to employ a financial staff with accounting and financial expertise, to be able to properly account for internal financial reporting, errors that may have a material effect on the financial statements have the potential to occur. While preparing the financial statements, management became aware of an error in inventory related to the cost calculation for House Wrap inventory that was produced during 2016. The errors have been adjusted for in the current quarter financial statements for the period ended July 31, 2106. For the April 30, 2016 quarter which had already been filed at the time the error was discovered, there was an overstatement of cost of goods sold by $13,972, an overstatement of inventory by $8,841, and an overstatement of accrued expenses of $22,813. The result of the error caused the second quarter ended April 30, 2016 to be restated and the Form 10-Q for the quarter ended April 30, 2016 to be amendment.

- 15 -

INNOVATIVE DESIGNS, INC.

ITEM 6. EXHIBITS

*3.1	Revised Certificate of Incorporation
**3.2	By-Laws
31.1	Rule 13a - 14a Certification of Chief Executive Officer and Chief Financial Officer
32.1	Section 1350 Certification of Chief Executive Officer and Chief Financial Officer
*	Incorporated by reference to the Company’s Form 10-K filed February 12, 2015
**	Incorporated by reference to the Company’s registration statement on Form SB-2, filed March 11, 2003
99***	Incorporated by reference to the Company’s Current Report on Form 8-k, filed June 2, 2016

SIGNATURES

Pursuant to the requirements 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.

		Innovative Designs, Inc.
		Registrant
Date:  September 19, 2016	by:	/s/ Joseph Riccelli
		Joseph Riccelli, Sr., Chief Executive Officer and Chief Financial Officer

- 16 -

EX-31.1

EXHIBIT 31.1

INNOVATIVE DESIGNS, INC.

CERTIFICATIONS

I, Joseph Riccelli, Sr., certify that:

1.         I have reviewed this quarterly report on Form 10-Q of Innovative Designs, Inc.;

2.         Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.         Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.         I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this quarterly report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.         I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  September 19, 2016	by:	/s/ Joseph Riccelli
		Joseph Riccelli, Sr.
		Chief Executive Officer

EX-32.1

EXHIBIT 32.1

SECTION 906 CERTIFICATION

CERTIFICATION REQUIRED BY

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Innovative Designs, Inc. (the "Company") on Form 10-Q for the quarterly period ended July 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  September 19, 2016	by:	/s/ Joseph Riccelli
		Joseph Riccelli, Sr.
		Chief Executive Officer, Chief
		Financial Officer, Principal
		Accounting Officer and Director

XML

Document and Entity Information - shares	9 Months Ended
	Jul. 31, 2016	Sep. 19, 2016
Document And Entity Information
Entity Registrant Name	INNOVATIVE DESIGNS INC
Entity Central Index Key	0001190370
Document Type	10-Q
Trading Symbol	IVDN
Document Period End Date	Jul. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		25,370,310
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2016

XML

CONDENSED BALANCE SHEETS (Unaudited) - USD ($)	Jul. 31, 2016	Oct. 31, 2015
CURRENT ASSETS
Cash	$ 798,368	$ 1,151,904
Accounts receivable	57,814	85,827
Inventory - net of obsolete inventory reserve of $40,000	977,767	924,054
Inventory on consignment	1,625
Deposits on inventory		78,320
Prepaid expenses	12,644	7,619
Total current assets	1,848,218	2,247,724
PROPERTY AND EQUIPMENT - NET	149,115	51,200
OTHER ASSETS
Advance to employee	4,000
Deposits on equipment	607,000	420,000
TOTAL ASSETS	2,608,333	2,718,924
CURRENT LIABILITIES
Accounts payable	93,850	119,360
Current portion of notes payable	15,467	14,657
Accrued interest expense	58,233	78,251
Due to shareholders	174,500	354,130
Accrued expenses	97,155	92,533
Total current liabilities	439,205	658,931
Long-term portion of notes payable	201,454	235,146
TOTAL LIABILITIES	640,659	894,077
STOCKHOLDERS' EQUITY
Preferred stock, $0.0001 par value, 25,000,000 shares authorized
Common stock, $0.0001 par value, 100,000,000 shares authorized, and 25,340,310 and 24,371,310 issued and outstanding as of July 31, 2016 and October 31, 2015	2,534	2,437
Additional paid-in capital	9,440,677	8,902,744
Accumulated deficit	(7,475,537)	(7,080,334)
Total stockholders' equity	1,967,674	1,824,847
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,608,333	$ 2,718,924

XML

CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Jul. 31, 2016	Oct. 31, 2015
Statement of Financial Position [Abstract]
Inventory obsolete reserve	$ 40,000	$ 40,000
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized	25,000,000	25,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	25,340,310	24,371,310
Common stock, outstanding	25,340,310	24,371,310

XML

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Income Statement [Abstract]
REVENUES - NET	$ 159,643	$ 46,593	$ 497,807	$ 549,374
OPERATING EXPENSES:
Cost of sales	75,944	24,903	258,895	277,817
Selling, general and administrative expenses	184,999	224,426	580,953	541,207
Total operating expense	260,943	249,329	839,848	819,024
LOSS FROM OPERATIONS	(101,300)	(202,736)	(342,041)	(269,650)
OTHER INCOME/(EXPENSE)
Miscellaneous income				390
Interest expense	(15,156)	(31,227)	(53,162)	(70,736)
Total other expense	(15,156)	(31,227)	(53,162)	(70,346)
NET LOSS	$ (116,456)	$ (233,963)	$ (395,203)	$ (339,996)
PER SHARE INFORMATION
Net Loss Per Common Share (in dollars per share)	$ (0.005)	$ (0.010)	$ (0.016)	$ (0.015)
Weighted Average Number of Common Shares Outstanding (in shares)	25,340,310	23,708,444	25,045,664	23,153,055

XML

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at beginning at Oct. 31, 2014	$ 2,244	$ 7,522,487	$ (6,568,734)	$ 955,997
Balance at beginning (in shares) at Oct. 31, 2014	22,438,043
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for services	$ 10	98,990		99,000
Shares issued for services (in shares)	107,000
Shares issued for debt conversion	$ 12	91,988		92,000
Shares issued for debt conversion (in shares)	122,667
Sale of stock	$ 171	1,189,279		1,189,450
Sale of stock (in shares)	1,703,600
Net loss			(511,600)	(511,600)
Balance at end at Oct. 31, 2015	$ 2,437	8,902,744	(7,080,334)	1,824,847
Balance at end (in shares) at Oct. 31, 2015	24,371,310
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss				(278,747)
Balance at end at Apr. 30, 2016				2,084,130
Balance at beginning at Oct. 31, 2015	$ 2,437	8,902,744	(7,080,334)	1,824,847
Balance at beginning (in shares) at Oct. 31, 2015	24,371,310
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for services related to fixed asset additions	$ 3	23,997		24,000
Shares issued for services related to fixed asset additions (in shares)	30,000
Shares issued for services	$ 9	52,191		52,200
Shares issued for services (in shares)	90,000
Sale of stock	$ 85	461,745		461,830
Sale of stock (in shares)	849,000
Net loss			(395,203)	(395,203)
Balance at end at Jul. 31, 2016	$ 2,534	9,440,677	(7,475,537)	1,967,674
Balance at end (in shares) at Jul. 31, 2016	25,340,310
Balance at beginning at Apr. 30, 2016				2,084,130
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for services				$ 24,000
Shares issued for services (in shares)				30,000
Net loss				$ (116,456)
Balance at end at Jul. 31, 2016	$ 2,534	$ 9,440,677	$ (7,475,537)	$ 1,967,674
Balance at end (in shares) at Jul. 31, 2016	25,340,310

XML

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (395,203)	$ (339,996)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for services	52,200	57,000
Amortization		999
Depreciation	14,384	7,226
Increase (decrease) from changes in:
Accounts receivable	28,013	29,116
Other receivable		30,000
Inventory	(53,713)	(39,992)
Inventory on consignment	(1,625)
Deposits on inventory	78,320
Prepaid expenses	(5,025)	(4,922)
Advance to employee	(4,000)
Accounts payable	(25,510)	(32,308)
Accrued interest expense	(20,018)	43,664
Accrued expenses	4,622	9,088
Net cash used in operating activities	(327,555)	(240,125)
CASH FLOWS FROM INVESTING ACTIVITIES
Deposits on equipment	(187,000)	(200,000)
Capital expenditures	(88,299)
Net cash used in investing activities	(275,299)	(200,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock	461,830	1,086,950
Payments on shareholder advances	(179,630)	(70,000)
Proceeds from shareholder advances		69,130
Payments on notes payable	(32,882)	(128,135)
Net cash provided by financing activities	249,318	957,945
Net (decrease) increase in cash	(353,536)	517,820
CASH, BEGINNING OF YEAR	1,151,904	988,681
CASH, END OF THE PERIOD	798,368	1,506,501
Supplemental disclosure of cash flow information:
Cash paid for interest	73,180	27,072
Supplemental schedule of noncash financing activies:
Stock issued for services related to fixed asset additions	24,000
Stock issuance for conversion of accrued interest		$ 92,000

XML

Accounting Changes and Error Corrections

9 Months Ended

Jul. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Accounting Changes and Error Corrections

NOTE 1. In the opinion of management, the accompanying unaudited financial statements contain all adjustments necessary to present fairly Innovative Designs, Inc.’s financial position as of July 31, 2016, the changes therein for the three and nine month periods then ended and the results of operations for the three and nine month periods ended July 31, 2016 and 2015.

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BASIS OF PRESENTATION

9 Months Ended

Jul. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

NOTE 2. The financial statements included in the Form 10-Q are presented in accordance with the requirements of the Form and do not include all of the disclosures required by accounting principles generally accepted in the United States of America. For additional information, reference is made to the Company’s annual report on Form 10-K for the fiscal year ended October 31, 2015. The results of operations for the three and nine month periods ended July 31, 2016 and 2015 are not necessarily indicative of operating results for the full year.

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INVENTORY

9 Months Ended

Jul. 31, 2016

Inventory Disclosure [Abstract]

INVENTORY

NOTE 3. INVENTORY

Inventory consists principally of purchased apparel inventory and House Wrap which is manufactured by the Company. Inventory is stated at the lower of cost or net realizable value on a first-in, first-out basis. Innovative Designs, Inc. (the “Company”) has decided to discontinue the manufacturing of its hunting and swimming line of apparel. The Company has booked a reserve against this inventory at July 31, 2016 and October 31, 2015 of $40,000. Management will continue to evaluate its obsolete inventory reserve throughout the year and make adjustments as needed.

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EARNINGS PER SHARE

9 Months Ended

Jul. 31, 2016

PER SHARE INFORMATION

EARNINGS PER SHARE

NOTE 4. EARNINGS PER SHARE

The Company calculates net income (loss) per share in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 260 “Earnings per Share”. Basic earnings (loss) per share is calculated by dividing income (loss) by the weighted average number of common shares outstanding for the period. During the periods presented, the Company only has common stock outstanding. As a result, diluted earnings per share was not calculated.

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INCOME TAXES

9 Months Ended

Jul. 31, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 5. INCOME TAXES

The Company accounts for income taxes in accordance with ASC Topic 740 "Income Taxes", which requires an asset and liability approach for financial reporting purposes.

Deferred income taxes are provided for differences between the tax bases of assets and liabilities and the financial reporting amounts at the end of the period, and for net operating loss and tax credit carryforwards available to offset future taxable income. Changes in enacted tax rates or laws result in adjustments to recorded deferred tax assets and liabilities in the periods in which the tax laws are enacted or tax rates are changed. The Company will continue to evaluate its income tax obligation throughout the year and will record a tax provision when it is necessary.

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SHIPPING AND HANDLING COSTS

9 Months Ended

Jul. 31, 2016

Shipping And Handling Costs

SHIPPING AND HANDLING COSTS

NOTE 6. SHIPPING AND HANDLING COSTS

The Company pays shipping and handling costs on behalf of customers for purchased apparel merchandise. These costs are billed back to the customer through the billing invoice. The shipping and handling costs associated with merchandise ordered by the Company are included as part of inventory as these costs are allocated across the merchandise received. With House Wrap orders, the customer pays the shipping cost. The shipping and handling costs associated with customer orders was approximately $25,000 and $29,000 for the nine month periods ended July 31, 2016 and 2015, respectively.

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COMMON STOCK

9 Months Ended

Jul. 31, 2016

Stockholders' Equity Note [Abstract]

COMMON STOCK

NOTE 7. COMMON STOCK

During the three month period ended January 31, 2016, the Company sold its stock to seven investors. The stock was issued for prices from $0.54 - $0.60 per share. A total of 579,000 shares of common stock were sold, resulting in proceeds of $314,830. In addition, the Company issued 90,000 shares to three individuals for services performed during the period. The shares issued were valued at $0.50 - $0.73 per share or an aggregate price of $52,200. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because these transactions did not involve a public offering and there was no general solicitation or general advertising involved in these transactions. We placed legends on the stock certificates stating that the securities were not registered under the Securities Act and set forth the restrictions on their transferability and sale.

During the three month period ended April 30, 2016, the Company sold its stock to three investors. The stock was issued for prices from $0.52-$0.55 per share. A total of 270,000 shares of common stock were sold, resulting in proceeds of $147,000. In addition, the Company issued 30,000 shares for services performed related to fixed asset additions during March 2016. The shares were issued at $0.80 per share or an aggregate price of $24,000. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because these transactions did not involve a public offering and there was no general solicitation or general advertising involved in these transactions. We placed legends on the stock certificates stating that the securities were not registered under the Securities Act and set forth the restrictions on their transferability and sale.

During the three month period ended July 31, 2016, there was no stock sold or issued.

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DEPOSITS ON EQUIPMENT

9 Months Ended

Jul. 31, 2016

Deposit Assets [Abstract]

DEPOSITS ON EQUIPMENT

NOTE 8. DEPOSITS ON EQUIPMENT

On July 12, 2015 the Company reached an agreement with Ketut Jaya to purchase the machinery and equipment utilized to produce the INSULTEX material. The purchase price is $700,000 which was to be paid in four installments. The first installment of $300,000 was to be paid at the execution of the agreement. The second installment of $200,000 was to be paid when the machinery and equipment is ready to be shipped to the United States. The third installment of $100,000 is to be paid once the machinery and equipment is producing INSULTEX, and the fourth and final installment of $100,000 is to made after the first commercial production run of INSULTEX is completed. As of July 31, 2016, the Company has made payments of $590,000. Additionally, the Company has incurred $17,000 of additional expenses related to shipping, site improvements and installation of the equipment.

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SEGMENT INFORMATION

9 Months Ended

Jul. 31, 2016

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 9. SEGMENT INFORMATION

We have organized our operations into two segments. We rely on an internal management reporting process that provides segment information for purposes of making financial decisions and allocating resources.

The following tables present our business segment information for the Nine month periods ended July 31, 2016 and 2015:

	2016		2015
Revenues:
Apparel	$	195,949	$	328,820
Housewrap		301,858		220,554
Total Revenues	$	497,807	$	549,374
Assets:
Apparel	$	1,316,622	$	1,985,066
Housewrap		1,291,711		742,946
Total	$	2,608,333	$	2,728,012
Capital Expenditures:
Housewrap	$	88,299	$	-
Total	$	88,299	$	-
Depreciation:
Apparel	$	1,388	$	1,395
Housewrap		12,996		5,831
Total	$	14,384	$	7,226

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CORRECTION OF AN ERROR

9 Months Ended

Jul. 31, 2016

Accounting Changes and Error Corrections [Abstract]

CORRECTION OF AN ERROR

NOTE 10. CORRECTION OF AN ERROR

While preparing the interim financial statements, management became aware of an error in inventory related to the cost calculation for House Wrap that was produced during the 2016. This error has been adjusted for in the financial statements for the period ended July 31, 2016, but resulted in an overstatement of cost of goods sold by $13,972, an overstatement of inventory by $8,841, and an overstatement of accrued expenses of $22,813 during the period ended April 30, 2016. The following tables summarize the corrections of previously reported amounts:

	Three Month Periods Ended April 30,						Six Month Periods Ended April 30,
	2016						2016
	as report			as adjusted			as report			as adjusted
Statement of Operations
Cost of sales	$	84,197		$	70,225		$	182,951		$	168,979
Loss from operations		(126,009	)		(112,037	)		(240,741	)		(226,769	)
Net loss	$	(145,535	)	$	(131,563	)	$	(278,747	)	$	(264,775	)
Net Loss Per Common Share	$	(0.006	)	$	(0.005	)	$	(0.011	)	$	(0.011	)

	Six Month Periods Ended April 30, 2016
	as report		as adjusted
Balance Sheet
Inventory - net of obsolete inventory reserve of $40,000	$	1,008,165	$	999,324
Total Asset		2,841,660		2,832,819
Accrued expenses		150,828		128,015
Total Liabilities		757,530		734,717
Stockholders Equity		2,084,130		2,098,102
Total Liabilities And Stockholders Equity	$	2,841,660	$	2,832,819

	Six Month Periods Ended April 30,
	2016
	as report			as adjusted
Statement of Stockholder’s Equity
Net loss	$	(278,747	)	$	(264,775	)
Stockholders deficit		(7,359,081	)		(7,345,109	)
Total stockholders equity	$	2,084,130		$	2,098,102

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SUBSEQUENT EVENTS

9 Months Ended

Jul. 31, 2016

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 11. SUBSEQUENT EVENTS

The Company has evaluated subsequent events in accordance with ASC Topic 855, “Subsequent Events”, through September 19, 2016, which is the date financial statements were available to be issued. No subsequent event items were identified except the item discussed below by the Company.

In September 2016, the Company issued 30,000 shares of its common stock for professional services at $0.50 per share, or $15,000.

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SEGMENT INFORMATION (Tables)

9 Months Ended

Jul. 31, 2016

Segment Reporting [Abstract]

Schedule of business segment information

The following tables present our business segment information for the Nine month periods ended July 31, 2016 and 2015:

	2016		2015
Revenues:
Apparel	$	195,949	$	328,820
Housewrap		301,858		220,554
Total Revenues	$	497,807	$	549,374
Assets:
Apparel	$	1,316,622	$	1,985,066
Housewrap		1,291,711		742,946
Total	$	2,608,333	$	2,728,012
Capital Expenditures:
Housewrap	$	88,299	$	-
Total	$	88,299	$	-
Depreciation:
Apparel	$	1,388	$	1,395
Housewrap		12,996		5,831
Total	$	14,384	$	7,226

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CORRECTION OF AN ERROR (Tables)

9 Months Ended

Jul. 31, 2016

Accounting Changes and Error Corrections [Abstract]

Schedule of corrections of previously reported amounts

The following tables summarize the corrections of previously reported amounts:

	Three Month Periods Ended April 30,						Six Month Periods Ended April 30,
	2016						2016
	as report			as adjusted			as report			as adjusted
Statement of Operations
Cost of sales	$	84,197		$	70,225		$	182,951		$	168,979
Loss from operations		(126,009	)		(112,037	)		(240,741	)		(226,769	)
Net loss	$	(145,535	)	$	(131,563	)	$	(278,747	)	$	(264,775	)
Net Loss Per Common Share	$	(0.006	)	$	(0.005	)	$	(0.011	)	$	(0.011	)

	Six Month Periods Ended April 30, 2016
	as report		as adjusted
Balance Sheet
Inventory - net of obsolete inventory reserve of $40,000	$	1,008,165	$	999,324
Total Asset		2,841,660		2,832,819
Accrued expenses		150,828		128,015
Total Liabilities		757,530		734,717
Stockholders Equity		2,084,130		2,098,102
Total Liabilities And Stockholders Equity	$	2,841,660	$	2,832,819

	Six Month Periods Ended April 30,
	2016
	as report			as adjusted
Statement of Stockholder’s Equity
Net loss	$	(278,747	)	$	(264,775	)
Stockholders deficit		(7,359,081	)		(7,345,109	)
Total stockholders equity	$	2,084,130		$	2,098,102

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INVENTORY (Details Narrative) - USD ($)	Jul. 31, 2016	Apr. 30, 2016	Oct. 31, 2015
Inventory Disclosure [Abstract]
Inventory valuation reserves	$ 40,000	$ 40,000	$ 40,000

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SHIPPING AND HANDLING COSTS (Details Narrative) - USD ($)	9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Shipping And Handling Costs
Shipping and handling costs	$ 25,000	$ 29,000

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COMMON STOCK (Details Narrative) - USD ($)	3 Months Ended			9 Months Ended	12 Months Ended
	Jul. 31, 2016	Apr. 30, 2016	Jan. 31, 2016	Jul. 31, 2016	Oct. 31, 2015
Value of shares issued during the period				$ 461,830	$ 1,189,450
Share price (in dollars per share)	$ 0.80			$ 0.80
Number of shares issued for services	30,000
Value of shares issued for services	$ 24,000			$ 52,200	$ 99,000
Seven Investors [Member]
Number of shares issued during the period			579,000
Value of shares issued during the period			$ 314,830
Seven Investors [Member] | Minimum [Member]
Share price (in dollars per share)			$ 0.54
Seven Investors [Member] | Maximum [Member]
Share price (in dollars per share)			$ 0.60
Three Individuals [Member]
Number of shares issued for services			90,000
Value of shares issued for services			$ 52,200
Three Individuals [Member] | Minimum [Member]
Share price (in dollars per share)			$ 0.50
Three Individuals [Member] | Maximum [Member]
Share price (in dollars per share)			$ 0.73
Three Investors [Member]
Number of shares issued during the period		270,000
Value of shares issued during the period		$ 147,000
Three Investors [Member] | Minimum [Member]
Share price (in dollars per share)		$ 0.52
Three Investors [Member] | Maximum [Member]
Share price (in dollars per share)		$ 0.55

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DEPOSITS ON EQUIPMENT (Details Narrative)

9 Months Ended

Jul. 31, 2016

USD ($)

Deposit Assets [Abstract]

Description of assets contract

The purchase price is $700,000 and to be made in four installments. The first installment of $300,000 is to be made at the execution of the agreement. The second installment of $200,000 is to be made when the machinery and equipment is ready to be shipped to the United States. The third installment of $100,000 is to be made once the machinery and equipment is producing INSULTEX, and the fourth and final installment of $100,000 is to made after the first commercial production run of INSULTEX is completed.

Purchase price of equipment

$ 700,000

First installment for equipment

300,000

Second installment for equipment

200,000

Third installment for equipment

100,000

Fourth installment for equipment

100,000

Deposits on equipment

590,000

Shipping, site improvements and installation of the equipment expenses

$ 17,000

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SEGMENT INFORMATION (Details Narrative)	9 Months Ended
	Jul. 31, 2016 Number
Segment Reporting [Abstract]
Number of reportable segments	2

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SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended		8 Months Ended	9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 15, 2015	Jul. 31, 2016	Jul. 31, 2015	Apr. 30, 2016	Oct. 31, 2015
Total Revenues	$ 159,643	$ 46,593		$ 497,807	$ 549,374
Total Assets	2,608,333	2,728,012		2,608,333	2,728,012	$ 2,841,660	$ 2,718,924
Total Capital Expenditures				88,299
Total Depreciation				14,384	7,226
Apparel [Member]
Total Revenues				195,949	328,820
Total Assets	1,316,622	1,985,066		1,316,622	1,985,066
Total Depreciation				1,388	1,395
Housewrap [Member]
Total Revenues			$ 220,554	301,858
Total Assets	$ 1,291,711	$ 742,946		1,291,711	$ 742,946
Total Capital Expenditures				88,299
Total Depreciation			$ 5,831	$ 12,996

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CORRECTION OF AN ERROR (Details Narrative) - USD ($)	3 Months Ended			6 Months Ended	9 Months Ended
	Jul. 31, 2016	Apr. 30, 2016	Jul. 31, 2015	Apr. 30, 2016	Jul. 31, 2016	Jul. 31, 2015	Oct. 31, 2015
Cost of goods sold	$ 75,944	$ 84,197	$ 24,903	$ 182,951	$ 258,895	$ 277,817
Inventory	977,767	1,008,165		1,008,165	977,767		$ 924,054
Accrued expenses	$ 97,155	150,828		150,828	$ 97,155		$ 92,533
Overstatement [Member]
Cost of goods sold				13,972
Inventory		8,841		8,841
Accrued expenses		$ 22,813		$ 22,813

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CORRECTION OF AN ERROR (Details) - USD ($)	3 Months Ended			6 Months Ended	9 Months Ended		12 Months Ended
	Jul. 31, 2016	Apr. 30, 2016	Jul. 31, 2015	Apr. 30, 2016	Jul. 31, 2016	Jul. 31, 2015	Oct. 31, 2015
Statement of Operations
Cost of sales	$ 75,944	$ 84,197	$ 24,903	$ 182,951	$ 258,895	$ 277,817
Loss from operations	(101,300)	(126,009)	(202,736)	(240,741)	(342,041)	(269,650)
Net loss	$ (116,456)	$ (145,535)	$ (233,963)	$ (278,747)	$ (395,203)	$ (339,996)	$ (511,600)
Net Loss Per Common Share	$ (0.005)	$ (0.006)	$ (0.010)	$ (0.011)	$ (0.016)	$ (0.015)
Restatement Adjustment [Member]
Statement of Operations
Cost of sales		$ 70,225		$ 168,979
Loss from operations		(112,037)		(240,741)
Net loss		$ (131,563)		$ (264,775)
Net Loss Per Common Share		$ (131,563)		$ (0.011)

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CORRECTION OF AN ERROR (Details 1) - USD ($)	Jul. 31, 2016	Apr. 30, 2016	Oct. 31, 2015	Jul. 31, 2015	Oct. 31, 2014
Balance Sheet
Inventory - net of obsolete inventory reserve of $40,000	$ 977,767	$ 1,008,165	$ 924,054
Total Asset	2,608,333	2,841,660	2,718,924	$ 2,728,012
Accrued expenses	97,155	150,828	92,533
Total Liabilities	640,659	757,530	894,077
Stockholders Equity	1,967,674	2,084,130	1,824,847		$ 955,997
Total Liabilities And Stockholders Equity	2,608,333	2,841,660	2,718,924
Inventory obsolete reserve	$ 40,000	40,000	$ 40,000
Restatement Adjustment [Member]
Balance Sheet
Inventory - net of obsolete inventory reserve of $40,000		999,324
Total Asset		2,832,819
Accrued expenses		128,015
Total Liabilities		734,717
Stockholders Equity		2,098,102
Total Liabilities And Stockholders Equity		2,832,819
Inventory obsolete reserve		$ 40,000

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CORRECTION OF AN ERROR (Details 2) - USD ($)	3 Months Ended			6 Months Ended	9 Months Ended		12 Months Ended
	Jul. 31, 2016	Apr. 30, 2016	Jul. 31, 2015	Apr. 30, 2016	Jul. 31, 2016	Jul. 31, 2015	Oct. 31, 2015	Oct. 31, 2014
Net loss	$ (116,456)	$ (145,535)	$ (233,963)	$ (278,747)	$ (395,203)	$ (339,996)	$ (511,600)
Stockholders deficit	(7,475,537)	(7,359,081)		(7,359,081)	(7,475,537)		(7,080,334)
Total stockholders equity	$ 1,967,674	2,084,130		2,084,130	$ 1,967,674		$ 1,824,847	$ 955,997
Restatement Adjustment [Member]
Net loss		(131,563)		(264,775)
Stockholders deficit		(7,345,109)		(7,345,109)
Total stockholders equity		$ 2,098,102		$ 2,098,102

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SUBSEQUENT EVENTS (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Jul. 31, 2016	Jul. 31, 2016	Oct. 31, 2015
Number of shares issued for professional service		30,000
Value of shares issued for professional service		$ 24,000	$ 52,200	$ 99,000
Share price (in dollars per share)		$ 0.80	$ 0.80
Subsequent Event [Member]
Number of shares issued for professional service	30,000
Value of shares issued for professional service	$ 15,000
Share price (in dollars per share)	$ 0.50