10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended July 31, 2017

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 ☒   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 ☒   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  ☒
(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 ☒

As of September 14, 2017, there were 25,747,310 shares of the Registrant’s common stock, par value $.0001 per share, outstanding.

Transitional Small Business Disclosure Format:          YES ☐ NO ☒

Innovative Designs, Inc.

Index

Form 10-Q for the Quarter Ended July 31, 2017

	Part I -- Financial Information	Page No.
Item 1.	Condensed Financial Statements (Unaudited)
	Condensed Balance Sheets as of July 31, 2017 (Unaudited) and October 31, 2016	1
	Condensed Statements of Operations for the Three and Nine Month Periods Ended July 31, 2017 and 2016 (Unaudited)	2
	Condensed Statements of Changes in Stockholders’ Equity as of July 31, 2017 (Unaudited) and October 31, 2016	3
	Condensed Statements of Cash Flows for the Nine Month Periods Ended July 31, 2017 and 2016 (Unaudited)	4
	Notes to the Condensed Financial Statements	5 - 8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	9 - 12
	Part II -- Other Information
Items 1., 2., 3., and 4T.		13 - 14
Item 6.	Exhibits	15 - 17

ITEM 1. CONDENSED FINANCIAL STATEMENTS

INNOVATIVE DESIGNS, INC.

CONDENSED BALANCE SHEETS

July 31, 2017 (Unaudited) and October 31, 2016

ASSETS 

	2017			2016
CURRENT ASSETS
Cash	$	264,908		$	502,777
Accounts receivable		14,562			72,143
Inventory - net of obsolete inventory reserve of $40,000		794,375			936,587
Inventory on consignment		1,625			1,625
Prepaid expenses		17,861			17,485
Total current assets		1,093,331			1,530,617
PROPERTY AND EQUIPMENT - NET		168,969			176,925
OTHER ASSETS
Advance to employee		4,000			4,000
Deposits on equipment		617,000			617,000
Total other assets		621,000			621,000
TOTAL ASSETS	$	1,883,300		$	2,328,542
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	151,009		$	116,512
Current portion of notes payable		15,467			15,467
Accrued interest expense		55,484			49,885
Due to shareholders		75,100			119,000
Accrued expenses		61,535			93,333
Total current liabilities		358,595			394,197
Long-term portion of notes payable		167,053			188,891
TOTAL LIABILITIES		525,648			583,088
STOCKHOLDERS’ EQUITY
Common stock, $0.0001 par value, 100,000,000 shares authorized, and 25,747,310 and 25,370,310 issued and outstanding as of July 31, 2017 and October 31, 2016		2,575			2,537
Additional paid-in capital		9,543,926			9,455,674
Accumulated deficit		(8,188,849	)		(7,712,757	)
Total stockholders’ equity		1,357,652			1,745,454
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,883,300		$	2,328,542

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

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INNOVATIVE DESIGNS, INC.

CONDENSED STATEMENTS OF OPERATIONS

Three and Nine Month Periods Ended July 31, 2017 and 2016 (Unaudited)

	Three Month Periods Ended July 31,						Nine Month Periods Ended July 31,
	2017			2016			2017			2016
REVENUES - NET	$	41,811		$	159,643		$	250,183		$	497,807
OPERATING EXPENSES:
Cost of sales		39,463			75,944			145,537			258,895
Selling, general and administrative expenses		183,868			184,999			562,080			580,953
		223,331			260,943			707,617			839,848
LOSS FROM OPERATIONS		(181,520	)		(101,300	)		(457,434	)		(342,041	)
OTHER EXPENSE
Miscellaneous expense		—			—			(2,559	)		—
Interest expense		(5,446	)		(15,156	)		(16,099	)		(53,162	)
Total other expense		(5,446	)		(15,156	)		(18,658	)		(53,162	)
NET LOSS	$	(186,966	)	$	(116,456	)	$	(476,092	)	$	(395,203	)
PER SHARE INFORMATION
Net Loss Per Common Share	$	(0.007	)	$	(0.005	)	$	(0.019	)	$	(0.016	)
Weighted Average Number of Common Shares Outstanding		25,616,962			25,340,310			25,461,892			25,045,664

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

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INNOVATIVE DESIGNS, INC.

 CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

July 31, 2017 (Unaudited) and October 31, 2016

	Common Stock Number of Shares	Common Stock Amount		Additional Paid-in Capital		Accumulated Deficit			Total
Balance at October 31, 2015	24,371,310	$	2,437	$	8,902,744	$	(7,080,334	)	$	1,824,847
Shares issued for services	120,000		12		67,188		—			67,200
Shares issued for fixed assets	30,000		3		23,997		—			24,000
Sale of stock	849,000		85		461,745		—			461,830
Net loss	—		—		—		(632,423	)		(632,423	)
Balance at October 31, 2016	25,370,310		2,537		9,455,674		(7,712,757	)		1,745,454
Shares issued for services	160,000		16		47,684		—			47,700
Sale of stock	217,000		22		40,568		—			40,590
Net loss	—		—		—		(476,092	)		(476,092	)
Balance at July 31, 2017	25,747,310	$	2,575	$	9,543,926	$	(8,188,849	)	$	1,357,652

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

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INNOVATIVE DESIGNS, INC.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Month Periods Ended July 31, 2017 and 2016 (Unaudited)

	For the Nine Month Periods Ended
	July 31, 2017			July 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(476,092	)	$	(395,203	)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for services		47,700			52,200
Depreciation		22,856			14,384
Increase (decrease) from changes in:
Accounts receivable		57,581			28,013
Inventory		142,212			(53,713	)
Inventory on consignment		—			(1,625	)
Deposits on inventory		—			78,320
Prepaid expenses		(376	)		(5,025	)
Advance to employee		—			(4,000	)
Accounts payable		34,497			(25,510	)
Accrued interest expense		5,599			(20,018	)
Accrued expenses		(31,798	)		4,622
Net cash used in operating activities		(197,821	)		(327,555	)
CASH FLOWS FROM INVESTING ACTIVITIES
Deposits on equipment		—			(187,000	)
Capital expenditures		(14,900	)		(88,299	)
Net cash used in investing activities		(14,900	)		(275,299	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock		40,590			461,830
Payments on shareholder advances		(43,900	)		(179,630	)
Payments on notes payable		(21,838	)		(32,882	)
Net cash (used in) provided by financing activities		(25,148	)		249,318
Net decrease in cash		(237,869	)		(353,536	)
CASH, BEGINNING OF YEAR		502,777			1,151,904
CASH, END OF THE PERIOD	$	264,908		$	798,368
Supplemental disclosure of cash flow information:
Cash paid for interest	$	11,001		$	73,180
Supplemental schedule of noncash financing activies:
Stock issued for services related to fixed asset additions	$	—		$	24,000

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

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INNOVATIVE DESIGNS, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS 

Nine Month Period Ended July 31, 2017 and 2016 (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, 2017, 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, 2017 and 2016.

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 Innovative Designs, Inc.’s annual report on Form 10-K for the fiscal year ended October 31, 2016. The results of operations for the three and nine month periods ended July 31, 2017 and 2016 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 selling of its hunting and swimming line of apparel. The Company has booked a reserve against this inventory at July 31, 2017 and October 31, 2016 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 Period Ended July 31, 2017 and 2016 (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 $16,000 and $25,000 for the nine month periods ended July 31, 2017 and 2016, respectively.

NOTE 7. COMMON STOCK

During the quarter ended April 30, 2017, the Company issued stock to one director for services. The stock was issued at a price of $0.25 per share. The Company issued 30,000 shares for services in February 2017 valued at $7,500. Pursuant to Rule 12b-15 under the Securities and Exchange Act of 1934, as amended, this Form 10-Q includes new certifications by our principal executive officer and principal financial officer under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002.

During the quarter ended July 31, 2017, the Company issued stock to one shareholder for services. The stock was issued at a price of $0.30 per share. The Company issued 100,000 shares to the stockholders for services in April 2017 valued at $30,000. The Company also issued 30,000 shares of stock to an individual valued at $0.34 per share for services in May 2017 valued at $10,200. Pursuant to Rule 12b-15 under the Securities and Exchange Act of 1934, as amended, this Form 10-Q includes new certifications by our principal executive officer and principal financial officer under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002.

Additionally for the quarter ended July 31, 2017, the Company sold stock for a price ranging from $0.18-$0.22 per share. The Company sold 217,000 shares of stock in June and July of 2017 for an aggregate price of $40,590. 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 this 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.

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, 2017, the Company has made payments of $500,000 in accordance with the agreement, and made a $100,000 pre-payment as the machine is not yet producing INSULTEX. 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 Period Ended July 31, 2017 and 2016 (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 period ended July 31, 2017 and 2016: 

	2017		2016
Revenues:
Apparel	$	161,015	$	195,949
House Wrap		89,168		301,858
Total Revenues	$	250,183	$	497,807
Assets:
Apparel	$	680,465	$	1,316,622
House Wrap		1,202,835		1,291,711
Total	$	1,883,300	$	2,608,333
Capital Expenditures:
House Wrap	$	14,900	$	88,299
Total	$	14,900	$	88,299
Depreciation:
Apparel	$	5,184	$	1,388
House Wrap		17,672		12,996
Total	$	22,856	$	14,384

NOTE 10. LEGAL PROCEEDINGS

On November 4, 2016, the Federal Trade Commission (FTC) filed a complaint against the Company in the U.S. District Court Western District of Pennsylvania, number 16-1669. In the complaint, the FTC alleges, that, among other matters, the Company does not have substantiation of claims made by the Company regarding the R value and energy efficiency of its INSULTEX House Wrap products. The complaint asks as redress of rescission of revenue the Company received from the sale of House Wrap and a permanent injunction. The parties are currently in the discovery phase.

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INNOVATIVE DESIGNS, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS 

Nine Month Period Ended July 31, 2017 and 2016 (Unaudited)

The Company strongly denies the allegation and intends to vigorously defend itself. It is the Company’s belief that the complaint is based on improper testing of the INSULTEX products using the wrong type of testing equipment.

NOTE 11. SUBSEQUENT EVENTS

The Company has evaluated subsequent events in accordance with ASC Topic 855, “Subsequent Events”, through September 14, 2017, which is the date financial statements were available to be issued. The Company identified the below subsequent event.

During August 2017, the Company entered into a notes payable agreement with Riccelli Properties for $40,672.

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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 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, 2016.

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.

In an attempt to increase global business we recently entered into two separate agreements to market INSULTEX to the military market of India and to enter the apparel market in the United States.

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INNOVATIVE DESIGNS, INC.  

Results of Operations

Comparison of the Three Month Period Ended July 31, 2017 with the Three Month Period Ended July 31, 2016.

	Three Month						Three Month
	Period Ended						Period Ended
	July 31,			% of			July 31,			% of			Increase
	2017			Sales			2016			Sales			(Decrease)			% Change
REVENUE - NET	$	41,811			100.00	%	$	159,643			100.00	%	$	(117,832	)		-73.81	%
OPERATING EXPENSES
Cost of sales		39,463			94.38	%		75,944			47.57	%		(36,481	)		-48.04	%
Selling, general and
administrative expenses		183,868			439.76	%		184,999			115.88	%		(1,131	)		-0.61	%
Loss from operations		(181,520	)		-434.14	%		(101,300	)		-63.45	%		(80,220	)		79.19	%
OTHER EXPENSE
Interest expense		(5,446	)		-13.03	%		(15,156	)		-9.49	%		9,710			-64.07	%
Net loss	$	(186,966	)		-447.17	%	$	(116,456	)		-72.95	%	$	(70,510	)		60.55	%

Revenues for the three month period ended July 31, 2017 were $41,811 compared to revenues of $159,643 for the three month period ended July 31, 2016. The decrease is caused by the decrease in our apparel sales and the sales in our House Wrap product line. The apparel sales were adversely affected by warm weather. In December 2016, we voluntarily ceased advertising our House Wrap products as a result of the legal action brought by the Federal Trade Commission (“FTC”). 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, 2017 was ($186,966). During the period revenue from apparel sales was $3,484. Revenue from House Wrap sales was $38,327.

Our selling, general and administrative expenses were $183,868 for the three month period ended July 31, 2017 compared to $184,999 for the three month period ended July 31, 2016. Professional fees for the period were $82,258, and consisted primarily of legal fees related to the FTC matter. We expect our professional fees to continue to be substantial during the course of this legal matter.

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INNOVATIVE DESIGNS, INC.

Comparison of the Nine Month Period Ended July 31, 2017 with the Nine Month Period Ended July 31, 2016.

The following table shows a comparison of the results of operations between the nine month periods ended July 31, 2017 and July 31, 2016:

	Nine Month						Nine Month
	Period Ended						Period Ended
	July 31,			% of			July 31,			% of			Increase
	2017			Sales			2016			Sales			(Decrease)			% Change
REVENUE - NET	$	250,183			100.00	%	$	497,807			100.00	%	$	(247,624	)		-49.74	%
OPERATING EXPENSES
Cost of sales		145,537			58.17	%		258,895			52.01	%		(113,358	)		-43.79	%
Selling, general and administrative expenses		562,080			224.67	%		580,953			116.70	%		(18,873	)		-3.25	%
Loss from operations		(457,434	)		-182.84	%		(342,041	)		-68.71	%		(115,393	)		33.74	%
OTHER EXPENSE
Miscellaneous expense		(2,559	)		-1.02	%		—			0.00	%		(2,559	)		#DIV/0!
Interest expense		(16,099	)		-6.43	%		(53,162	)		-10.68	%		37,063			-69.72	%
Total other expense		(18,658	)
Net loss	$	(476,092	)		-190.30	%	$	(395,203	)		-79.39	%	$	(80,889	)		20.47	%

Revenues for the nine month period ended July 31, 2017 were $250,183 compared to revenues of $497,807 for the nine month period ended July 31, 2016. The decrease is caused, by the decrease in our apparel sales and the sales in our House Wrap product line. The apparel sales were adversely affected by warm weather. In December 2016, we voluntarily ceased advertising our House Wrap products as a result of the legal action brought by the Federal Trade Commission (“FTC”). See Note 9 of the Notes to the Condensed Financial Statements appearing elsewhere in this Report for a description of our segment products sales. During the nine month period ended July 31, 2017 House Wrap sales totaled $89,168 in comparison with $301,858 during the nine month period ended July 31, 2016. Our net loss for the nine month period ended July 31, 2017 was ($476,092).

Our selling, general and administrative expenses were $562,080 for the nine months ended July 31, 2017 compared to $580,953 for the nine month period ended July 31, 2016. The decrease was a result, in part, by lower seasonal help expense and less advertising and promotional expense. We do not expect our seasonal help expense or advertising and promotional expenses to increase in the current fiscal year ending October 31, 2017. Our professional fees for this period ended July 31, 2017, were $225,363 compared to professional fees of $201,202 for the nine month period ended July 31, 2016. The increase is a result of the legal fees related to the ongoing legal matter involving the Company and the FTC.

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INNOVATIVE DESIGNS, INC.

Liquidity and Capital Resources

During the period ended July 31, 2017, we funded our operations from revenues from sales.

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 INSULTEX products and to purchase equipment needed for the manufacture of the INSULTEX product. The Company 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. The Company will have to have the machine installed and ensure that it can be operated in compliance with all environmental rules and regulations. The Company has not made an estimate of the cost required for bringing the operation of the machine into compliance with the environmental regulations but it is considered to be a substantial amount. 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 $600,000 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.

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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 November 4, 2016, describing this matter is incorporated herein by reference.

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

During the quarter ended April 30, 2017, the Company issued stock to one director for services. The stock was issued at a price of $0.25 per share. The Company issued 30,000 shares for services in February 2017 valued at $7,500. Pursuant to Rule 12b-15 under the Securities and Exchange Act of 1934, as amended, this Form 10-Q includes new certifications by our principal executive officer and principal financial officer under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002.

During the quarter ended July 31, 2017, the Company issued stock to one shareholder for services. The stock was issued at a price of $0.30 per share. The Company issued 100,000 shares to the stockholders for services in April 2017 valued at $30,000. The Company also issued 30,000 shares of stock to an individual valued at $0.34 per share for services in May 2017 valued at $10,200. Pursuant to Rule 12b-15 under the Securities and Exchange Act of 1934, as amended, this Form 10-Q includes new certifications by our principal executive officer and principal financial officer under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002.

Additionally for the quarter ended July 31, 2017, the Company sold stock for a price ranging from $0.18-$0.22 per share. The Company sold 217,000 shares of stock in June and July of 2017 for an aggregate price of $40,590. There were a total of three investors all of whom were existing stockholders. 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 this 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.

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 period ended July 31, 2017, 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 first, second and third quarters of 2017, 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 January 31, 2017, April 30, 2017 and July 31, 2017 within the timeline established by the SEC and was required to seek an extension for filing the form.

- 13 - 

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.

- 14 - 

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 November 4, 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 14, 2017	by:	/s/ Joseph Riccelli
		Joseph Riccelli, Sr., Chief Executive Officer
		and Chief Financial Officer

- 15 -

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 14, 2017	by:	/s/ Joseph Riccelli
		Joseph Riccelli, Sr.
		Chief Executive Officer

- 16 - 

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, 2017, 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 14, 2017	by:	/s/ Joseph Riccelli
		Joseph Riccelli, Sr.
		Chief Executive Officer, Chief
		Financial Officer, Principal
		Accounting Officer and Director

- 17 - 

XML

Document and Entity Information - shares	9 Months Ended
	Jul. 31, 2017	Sep. 14, 2017
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, 2017
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		25,747,310
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2017

XML

CONDENSED BALANCE SHEETS (Unaudited) - USD ($)	Jul. 31, 2017	Oct. 31, 2016
CURRENT ASSETS
Cash	$ 264,908	$ 502,777
Accounts receivable	14,562	72,143
Inventory - net of obsolete inventory reserve of $40,000	794,375	936,587
Inventory on consignment	1,625	1,625
Prepaid expenses	17,861	17,485
Total current assets	1,093,331	1,530,617
PROPERTY AND EQUIPMENT - NET	168,969	176,925
OTHER ASSETS
Advance to employee	4,000	4,000
Deposits on equipment	617,000	617,000
Total other assets	621,000	621,000
TOTAL ASSETS	1,883,300	2,328,542
CURRENT LIABILITIES
Accounts payable	151,009	116,512
Current portion of notes payable	15,467	15,467
Accrued interest expense	55,484	49,885
Due to shareholders	75,100	119,000
Accrued expenses	61,535	93,333
Total current liabilities	358,595	394,197
Long-term portion of notes payable	167,053	188,891
TOTAL LIABILITIES	525,648	583,088
STOCKHOLDERS' EQUITY
Common stock, $0.0001 par value, 100,000,000 shares authorized, and 25,747,310 and 25,370,310 issued and outstanding as of July 31, 2017 and October 31, 2016	2,575	2,537
Additional paid-in capital	9,543,926	9,455,674
Accumulated deficit	(8,188,849)	(7,712,757)
Total stockholders' equity	1,357,652	1,745,454
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,883,300	$ 2,328,542

XML

CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Jul. 31, 2017	Oct. 31, 2016
Statement of Financial Position [Abstract]
Inventory obsolete reserve	$ 40,000	$ 40,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	25,747,310	25,370,310
Common stock, outstanding	25,747,310	25,370,310

XML

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2017	Jul. 31, 2016	Jul. 31, 2017	Jul. 31, 2016
Income Statement [Abstract]
REVENUES - NET	$ 41,811	$ 159,643	$ 250,183	$ 497,807
OPERATING EXPENSES:
Cost of sales	39,463	75,944	145,537	258,895
Selling, general and administrative expenses	183,868	184,999	562,080	580,953
Total operating expense	223,331	260,943	707,617	839,848
LOSS FROM OPERATIONS	(181,520)	(101,300)	(457,434)	(342,041)
OTHER EXPENSE
Miscellaneous expense			(2,559)
Interest expense	(5,446)	(15,156)	(16,099)	(53,162)
Total other expense	(5,446)	(15,156)	(18,658)	(53,162)
NET LOSS	$ (186,966)	$ (116,456)	$ (476,092)	$ (395,203)
PER SHARE INFORMATION
Net Loss Per Common Share (in dollars per share)	$ (0.007)	$ (0.005)	$ (0.019)	$ (0.016)
Weighted Average Number of Common Shares Outstanding (in shares)	25,616,962	25,340,310	25,461,892	25,045,664

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, 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	$ 12	67,188		67,200
Shares issued for services (in shares)	120,000
Shares issued for fixed assets	$ 3	23,997		24,000
Shares issued for fixed assets (in shares)	30,000
Sale of stock	$ 85	461,745		461,830
Sale of stock (in shares)	849,000
Net loss			(632,423)	(632,423)
Balance at ending at Oct. 31, 2016	$ 2,537	9,455,674	(7,712,757)	1,745,454
Balance at ending (in shares) at Oct. 31, 2016	25,370,310
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for services	$ 16	47,684		47,700
Shares issued for services (in shares)	160,000
Sale of stock	$ 22	40,568		40,590
Sale of stock (in shares)	217,000
Net loss			(476,092)	(476,092)
Balance at ending at Jul. 31, 2017	$ 2,575	$ 9,543,926	$ (8,188,849)	$ 1,357,652
Balance at ending (in shares) at Jul. 31, 2017	25,747,310

XML

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (476,092)	$ (395,203)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for services	47,700	52,200
Depreciation	22,856	14,384
Increase (decrease) from changes in:
Accounts receivable	57,581	28,013
Inventory	142,212	(53,713)
Inventory on consignment		(1,625)
Deposits on inventory		78,320
Prepaid expenses	(376)	(5,025)
Advance to employee		(4,000)
Accounts payable	34,497	(25,510)
Accrued interest expense	5,599	(20,018)
Accrued expenses	(31,798)	4,622
Net cash used in operating activities	(197,821)	(327,555)
CASH FLOWS FROM INVESTING ACTIVITIES
Deposits on equipment		(187,000)
Capital expenditures	(14,900)	(88,299)
Net cash used in investing activities	(14,900)	(275,299)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock	40,590	461,830
Payments on shareholder advances	(43,900)	(179,630)
Payments on notes payable	(21,838)	(32,882)
Net cash (used in) provided by financing activities	(25,148)	249,318
Net decrease in cash	(237,869)	(353,536)
CASH, BEGINNING OF YEAR	502,777	1,151,904
CASH, END OF THE PERIOD	264,908	798,368
Supplemental disclosure of cash flow information:
Cash paid for interest	11,001	73,180
Supplemental schedule of noncash financing activies:
Stock issued for services related to fixed asset additions		$ 24,000

XML

ACCOUNTING CHANGES AND ERROR CORRECTIONS

9 Months Ended

Jul. 31, 2017

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, 2017, 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, 2017 and 2016.

XML

BASIS OF PRESENTATION

9 Months Ended

Jul. 31, 2017

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 Innovative Designs, Inc.’s annual report on Form 10-K for the fiscal year ended October 31, 2016. The results of operations for the three and nine month periods ended July 31, 2017 and 2016 are not necessarily indicative of operating results for the full year.

XML

INVENTORY

9 Months Ended

Jul. 31, 2017

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 selling of its hunting and swimming line of apparel. The Company has booked a reserve against this inventory at July 31, 2017 and October 31, 2016 of $40,000. Management will continue to evaluate its obsolete inventory reserve throughout the year and make adjustments as needed.

XML

EARNINGS PER SHARE

9 Months Ended

Jul. 31, 2017

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.

XML

INCOME TAXES

9 Months Ended

Jul. 31, 2017

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.

XML

SHIPPING AND HANDLING COSTS

9 Months Ended

Jul. 31, 2017

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 $16,000 and $25,000 for the nine month periods ended July 31, 2017 and 2016, respectively.

XML

COMMON STOCK

9 Months Ended

Jul. 31, 2017

Equity [Abstract]

COMMON STOCK

NOTE 7. COMMON STOCK

During the quarter ended April 30, 2017, the Company issued stock to one director for services. The stock was issued at a price of $0.25 per share. The Company issued 30,000 shares for services in February 2017 valued at $7,500. Pursuant to Rule 12b-15 under the Securities and Exchange Act of 1934, as amended, this Form 10-Q includes new certifications by our principal executive officer and principal financial officer under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002.

During the quarter ended July 31, 2017, the Company issued stock to one shareholder for services. The stock was issued at a price of $0.30 per share. The Company issued 100,000 shares to the stockholders for services in April 2017 valued at $30,000. The Company also issued 30,000 shares of stock to an individual valued at $0.34 per share for services in May 2017 valued at $10,200. Pursuant to Rule 12b-15 under the Securities and Exchange Act of 1934, as amended, this Form 10-Q includes new certifications by our principal executive officer and principal financial officer under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002.

Additionally for the quarter ended July 31, 2017, the Company sold stock for a price ranging from $0.18-$0.22 per share. The Company sold 217,000 shares of stock in June and July of 2017 for an aggregate price of $40,590. 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 this 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.

XML

DEPOSITS ON EQUIPMENT

9 Months Ended

Jul. 31, 2017

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, 2017, the Company has made payments of $500,000 in accordance with the agreement, and made a $100,000 pre-payment as the machine is not yet producing INSULTEX. Additionally, the Company has incurred $17,000 of additional expenses related to shipping, site improvements and installation of the equipment.

XML

SEGMENT INFORMATION

9 Months Ended

Jul. 31, 2017

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 period ended July 31, 2017 and 2016: 

	2017		2016
Revenues:
Apparel	$	161,015	$	195,949
House Wrap		89,168		301,858
Total Revenues	$	250,183	$	497,807
Assets:
Apparel	$	680,465	$	1,316,622
House Wrap		1,202,835		1,291,711
Total	$	1,883,300	$	2,608,333
Capital Expenditures:
House Wrap	$	14,900	$	88,299
Total	$	14,900	$	88,299
Depreciation:
Apparel	$	5,184	$	1,388
House Wrap		17,672		12,996
Total	$	22,856	$	14,384

XML

LEGAL PROCEEDINGS

9 Months Ended

Jul. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

LEGAL PROCEEDINGS

NOTE 10. LEGAL PROCEEDINGS

On November 4, 2016, the Federal Trade Commission (FTC) filed a complaint against the Company in the U.S. District Court Western District of Pennsylvania, number 16-1669. In the complaint, the FTC alleges, that, among other matters, the Company does not have substantiation of claims made by the Company regarding the R value and energy efficiency of its INSULTEX House Wrap products. The complaint asks as redress of rescission of revenue the Company received from the sale of House Wrap and a permanent injunction. The parties are currently in the discovery phase.

The Company strongly denies the allegation and intends to vigorously defend itself. It is the Company’s belief that the complaint is based on improper testing of the INSULTEX products using the wrong type of testing equipment.

XML

SUBSEQUENT EVENTS

9 Months Ended

Jul. 31, 2017

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 14, 2017, which is the date financial statements were available to be issued. The Company identified the below subsequent event.

During August 2017, the Company entered into a notes payable agreement with Riccelli Properties for $40,672.

XML

SEGMENT INFORMATION (Tables)

9 Months Ended

Jul. 31, 2017

Segment Reporting [Abstract]

Schedule of business segment information

The following tables present our business segment information for the nine month period ended July 31, 2017 and 2016: 

	2017		2016
Revenues:
Apparel	$	161,015	$	195,949
House Wrap		89,168		301,858
Total Revenues	$	250,183	$	497,807
Assets:
Apparel	$	680,465	$	1,316,622
House Wrap		1,202,835		1,291,711
Total	$	1,883,300	$	2,608,333
Capital Expenditures:
House Wrap	$	14,900	$	88,299
Total	$	14,900	$	88,299
Depreciation:
Apparel	$	5,184	$	1,388
House Wrap		17,672		12,996
Total	$	22,856	$	14,384

XML

INVENTORY (Details Narrative) - USD ($)	Jul. 31, 2017	Oct. 31, 2016
Inventory Disclosure [Abstract]
Inventory valuation reserves	$ 40,000	$ 40,000

XML

SHIPPING AND HANDLING COSTS (Details Narrative) - USD ($)	9 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Shipping And Handling Costs
Shipping and handling costs	$ 16,000	$ 25,000

XML

COMMON STOCK (Details Narrative) - USD ($)	1 Months Ended			2 Months Ended	9 Months Ended	12 Months Ended
	May 30, 2017	Apr. 30, 2017	Feb. 28, 2017	Jul. 31, 2017	Jul. 31, 2017	Oct. 31, 2016
Value of shares issued for services					$ 47,700	$ 67,200
Sale of stock				$ 40,590	$ 40,590	$ 461,830
Number stock sold (in shares)				217,000
Minimum [Member]
Stock sold price (in dollars per share)				$ 0.18	$ 0.18
Maximum [Member]
Stock sold price (in dollars per share)				$ 0.22	$ 0.22
One Director [Member]
Share price (in dollars per share)		$ 0.25
Number of shares issued for services			30,000
Value of shares issued for services			$ 7,500
One Shareholder [Member]
Share price (in dollars per share)		$ 0.30
Number of shares issued for services		100,000
Value of shares issued for services		$ 30,000
An Individual [Member]
Share price (in dollars per share)	$ 0.34
Number of shares issued for services	30,000
Value of shares issued for services	$ 10,200

XML

DEPOSITS ON EQUIPMENT (Details Narrative) - USD ($)

9 Months Ended

Jul. 12, 2015

Jul. 31, 2017

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

$ 500,000

Shipping, site improvements and installation of the equipment expenses

$ 17,000

XML

SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2017	Jul. 31, 2016	Jul. 31, 2017	Jul. 31, 2016	Oct. 31, 2016
Segment Reporting Information [Line Items]
Total Revenues	$ 41,811	$ 159,643	$ 250,183	$ 497,807
Assets	1,883,300	2,608,333	1,883,300	2,608,333	$ 2,328,542
Capital Expenditures			14,900	88,299
Depreciation			22,856	14,384
Apparel Segment [Member]
Segment Reporting Information [Line Items]
Total Revenues			161,015	195,949
Assets	680,465	1,316,622	680,465	1,316,622
Depreciation			5,184	1,388
House Wrap Segment [Member]
Segment Reporting Information [Line Items]
Total Revenues			89,168	301,858
Assets	$ 1,202,835	$ 1,291,711	1,202,835	1,291,711
Capital Expenditures			14,900	88,299
Depreciation			$ 17,672	$ 12,996

XML

SEGMENT INFORMATION (Details Narrative)	9 Months Ended
	Jul. 31, 2017 Segment
Segment Reporting [Abstract]
Number of reportable segments	2

XML

SUBSEQUENT EVENTS (Details Narrative)	Aug. 31, 2017 USD ($)
Subsequent Event [Member] | Notes Payable Agreement [Member] | Riccelli Properties [Member]
Face amount	$ 40,672