Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | |
Oct. 31, 2013 | Jan. 30, 2014 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'INNOVATIVE DESIGNS INC | ' |
Entity Central Index Key | '0001190370 | ' |
Current Fiscal Year End Date | '--10-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'IVDN | ' |
Entity Common Stock, Shares Outstanding | ' | 19,747,243 |
Document Type | '10-K | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Oct-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Public Float | ' | $3,120,973 |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash | $69,613 | $54,995 |
Accounts receivable | 90,583 | 102,350 |
Other receivables | 4,000 | 0 |
Inventory - net of obsolete inventory reserve of$52,000 and $65,000, respectively | 614,581 | 623,722 |
Inventory on consignment | 42,900 | 0 |
Deposits on inventory | 30,846 | 44,514 |
Prepaid insurance | 7,655 | 4,360 |
Total current assets | 860,178 | 829,941 |
PROPERTY AND EQUIPMENT - NET | 18,346 | 20,448 |
TOTAL ASSETS | 878,524 | 850,389 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 83,183 | 64,455 |
Current portion of notes payable | 155,053 | 91,298 |
Accrued interest expense | 240,121 | 190,859 |
Due to shareholders | 416,500 | 266,600 |
Loss contingency | 0 | 190,000 |
Accrued expenses | 3,419 | 876 |
Total current liabilities | 898,276 | 804,088 |
Long-term portion of notes payable | 335,371 | 347,663 |
TOTAL LIABILITIES | 1,233,647 | 1,151,751 |
STOCKHOLDERS' DEFICIT | ' | ' |
Preferred stock, $0.0001 par value, 100,000,000 shares authorized | 0 | 0 |
Common stock, $0.0001 par value, 500,000,000 shares authorized, and 19,325,743 and 18,935,743 issued and outstanding as of October 31, 2013 and 2012, respectively | 1,935 | 1,896 |
Additional paid-in capital | 5,777,606 | 5,688,645 |
Accumulated deficit | -6,134,664 | -5,991,903 |
Total stockholders' deficit | -355,123 | -301,362 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $878,524 | $850,389 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS [Parenthetical] (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
Inventory Reserves (in dollars) | $52,000 | $65,000 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 19,325,743 | 18,935,743 |
Common stock, shares outstanding | 19,325,743 | 18,935,743 |
STATEMENTS_OF_OPERATIONS
STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
REVENUES | $484,299 | $812,761 |
OPERATING EXPENSES | ' | ' |
Cost of sales | 206,939 | 320,021 |
Selling, general and administrative expenses | 507,868 | 635,255 |
LOSS FROM OPERATIONS | -230,508 | -142,515 |
OTHER INCOME (EXPENSE) | ' | ' |
Other income | 0 | 600 |
Loss contingency | 190,000 | -190,000 |
Interest expense | -102,253 | -122,799 |
TOTAL OTHER INCOME (EXPENSE) | 87,747 | -312,199 |
NET LOSS | ($142,761) | ($454,714) |
PER SHARE INFORMATION Basic | ' | ' |
Net Loss Per Common Share (in dollars per share) | ($0.01) | ($0.02) |
Weighted Average Number of Common Shares Outstanding (in shares) | 18,974,811 | 18,830,401 |
STATEMENTS_OF_STOCKHOLDERS_EQU
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance at Oct. 31, 2011 | $112,852 | $1,880 | $5,648,161 | ($5,537,189) |
Balance (in shares) at Oct. 31, 2011 | ' | 18,775,743 | ' | ' |
Shares issued for services | 40,500 | 16 | 40,484 | 0 |
Shares issued for services (in shares) | ' | 160,000 | ' | ' |
Net loss | -454,714 | 0 | 0 | -454,714 |
Balance at Oct. 31, 2012 | -301,362 | 1,896 | 5,688,645 | -5,991,903 |
Balance (in shares) at Oct. 31, 2012 | ' | 18,935,743 | ' | ' |
Shares issued for services | 25,000 | 7 | 24,993 | 0 |
Shares issued for services (in shares) | ' | 70,000 | ' | ' |
Sale of Stock | 64,000 | 32 | 63,968 | 0 |
Sale of stock (in shares) | ' | 320,000 | ' | ' |
Net loss | -142,761 | 0 | 0 | -142,761 |
Balance at Oct. 31, 2013 | ($355,123) | $1,935 | $5,777,606 | ($6,134,664) |
Balance (in shares) at Oct. 31, 2013 | ' | 19,325,743 | ' | ' |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($142,761) | ($454,714) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Common stock issued for services | 25,000 | 40,500 |
Common stock issued for cash | 64,000 | 0 |
Depreciation | 2,102 | 649 |
Loss contingency | -190,000 | 190,000 |
Provision for inventory reserves | -13,000 | -51,439 |
Increase (decrease) from changes in: | ' | ' |
Accounts receivable | 7,767 | 88,785 |
Inventory | -20,759 | 128,648 |
Deposits on inventory | 13,668 | -6,618 |
Prepaid insurance | -3,295 | -4,360 |
Accounts payable | 18,728 | -13,524 |
Accrued expenses | 2,543 | -5,594 |
Accrued interest expense | 49,262 | 86,156 |
Net cash used in operating activities | -186,745 | -1,511 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | 0 | -19,826 |
Net cash used in investing activities | 0 | -19,826 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Payments on shareholder advances | -155,100 | -165,500 |
Proceeds from shareholder advances | 305,000 | 185,000 |
Payments on notes payable | -119,933 | -117,853 |
Proceeds from notes payable | 171,396 | 83,476 |
Net cash provided by (used in) financing activities | 201,363 | -14,877 |
Net increase (decrease) in cash equivalents | 14,618 | -36,214 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 54,995 | 91,209 |
CASH AND CASH EQUIVALENTS, END OF THE YEAR | 69,613 | 54,995 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | $52,991 | $36,643 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Oct. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | ' | |
1 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations - Innovative Designs, Inc. (the “Company”), which was incorporated in the State of Delaware on June 25, 2002, markets cold weather recreational and industrial clothing products that are made from INSULTEX, a low density foamed polyethylene, a material with buoyancy, scent block, and thermal resistant properties. These products are offered and sold by retailers, distributors, and companies throughout the United States, Canada, the Russian Federation and Finland. | ||
Basis of Accounting - The financial statements are prepared using the accrual basis of accounting in which revenues are recognized when earned and expenses are recognized when incurred. | ||
Fiscal Year End - The Company’s fiscal year ends on October 31. The fiscal years ending October 31, 2013 and 2012 are referred to as 2013 and 2012, respectively, throughout the Company’s financial statements. | ||
Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results may differ from these estimates and assumptions. | ||
Cash and Cash Equivalents - The Company defines cash and cash equivalents as those highly liquid investments purchased with a maturity of three months or less. | ||
Revenue Recognition - The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectibility is probable. Revenue is derived from sales of the Company’s recreational products such as Arctic Armor. Sales of these items are recognized when the items are shipped. The Company offers a 5 day return policy and no warranty on all of its products. All sales outside the United States are entered into using the U.S. dollar as its functional currency. During 2013 and 2012, the Company took back certain products from customers that accounted for $4,598 and $17,778 in revenue, respectively. The Company was not required to accept these returns but made a business decision to do so. | ||
Fair Value of Financial Instruments - The carrying value of cash and cash equivalents, accounts receivable, accounts payable, and certain other liabilities approximate their estimated fair values due to the short-term nature of these instruments. The fair value of the Company’s debt instruments approximates their fair values as the interest is tied to or approximates market rates. | ||
Estimated Uncollectable Accounts - The Company considers all accounts receivable balances to be fully collectable at October 31, 2013 and 2012, accordingly, no allowance for doubtful accounts is provided. During 2012, the Company wrote-off approximately $3,800 in uncollectable accounts receivable. | ||
Inventory - Inventory consists principally of purchased finished goods. Inventory is stated at the lower of cost or market on a first-in, first-out basis. | ||
During 2013, the Company entered into an agreement with Dick’s Sporting Goods in which it has consigned certain Arctic Armor products. These items will be offered in select stores and through the Dick’s Sporting Goods website. As of October 31, 2013, the Company had provided $42,900 of inventory to be placed in stores. As part of the agreement, at the end of the contract the Company will receive payment for all inventory sold and any remaining merchandise will be returned to the Company. As of October 31, 2013, there have been no sales related to this merchandise and the full amount is included in inventory. | ||
Shipping and Handling - Shipping costs associated with acquiring inventories are charged to cost of goods sold when incurred. The Company pays shipping and handling costs on behalf of customers for purchased merchandise. These costs are billed back to the customer through the billing invoice. The shipping and handling costs associated with customer orders was $29,827 and $66,590 as of October 31, 2013 and 2012, respectively. Freight costs for delivering products to customers are included in revenues from sales at the time the goods are shipped. | ||
Net Income Per Common Share - The Company calculates net income per share in accordance with ASC Topic 260 “Earnings per Share”. Basic earnings per share are calculated by dividing net income by the weighted average number of common shares outstanding for the period. The Company only has common stock outstanding for 2013 and 2012. As a result, diluted earnings per share was not calculated. | ||
Stock-Based Compensation - The Company accounts for stock based compensation in accordance with ASC Topic 718 “Compensation - Stock Compensation”. In accordance with the provisions of ASC 718 share-based payment transactions with employees are measured based on the fair value of the equity instruments issued on the grant date or on the fair value of the liabilities incurred. Share-based payments to nonemployees are measured and recognized using the fair-value method, based on the fair value of the equity instruments issued or the fair value of goods or services received, whichever is more reliably measured. | ||
New Accounting Pronouncements - During 2013 and 2012, the FASB issued various Accounting Standards Updates (“ASUs”). Based on management’s review, it was determined that the ASUs will have no material effect on the Company’s financial statements. As new ASUs are issued, management will evaluate their impact on the Company. Any future impact will be included in the notes to the Company’s financial statements. | ||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
2 | PROPERTY AND EQUIPMENT | |||||||
Property and equipment are summarized by major classifications as follows: | ||||||||
2013 | 2012 | |||||||
Equipment | $ | 28,987 | $ | 28,987 | ||||
Furniture and fixtures | 11,092 | 11,092 | ||||||
Leasehold improvements | 4,806 | 4,806 | ||||||
Automobile | 7,841 | 7,841 | ||||||
52,726 | 52,726 | |||||||
Less accumulated depreciation | 34,380 | 32,278 | ||||||
Property and equipment - net | $ | 18,346 | $ | 20,448 | ||||
Depreciation expense for the years ended October 31, 2013 and 2012 was $2,102 and $649, respectively. | ||||||||
BORROWINGS
BORROWINGS | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Subordinated Borrowings [Abstract] | ' | |||||||
Subordinated Borrowings Disclosure [Text Block] | ' | |||||||
3 | BORROWINGS | |||||||
Borrowings at October 31, 2013 and 2012 consisted of the following: | ||||||||
2013 | 2012 | |||||||
Due to Shareholders | ||||||||
Note Payable - Joseph Riccelli Interest is 8% per quarter with no payment terms. | $ | 31,000 | $ | 84,100 | ||||
Note Payable $100,000 - James Kearney, September 2005. Interest of $8,000 per | 12,500 | 12,500 | ||||||
quarter was charged from October 2005 through October 2008; principal and | ||||||||
interest due and payable in full at any time after December 10, 2005. | ||||||||
Note Payable $10,000 - Frank Riccelli, July 2011. Due December 20, 2011; | 10,000 | 10,000 | ||||||
payable on demand; interest is 10% for 120 days. Note was extended through | ||||||||
a verbal agreement. | ||||||||
Note Payable $8,000 - Roberta Riccelli, February 2012. Due June 17, 2012; | 8,000 | 8,000 | ||||||
interest is 10% for 120 days. Note was extended through a verbal agreement. | ||||||||
Note Payable $100,000 - Sol & Tina Waxman Family Foundation, May 2012. | - | 75,000 | ||||||
Due December 20, 2012; payable on demand; interest is 10%. | ||||||||
Note Payable $50,000 - Joseph Riccelli, July 2012. Due January 9, 2013; | 50,000 | 50,000 | ||||||
interest is 10% for 120 days. Note was extended through a verbal agreement. | ||||||||
Note Payable $27,000 - Darryl Zaontz, July 2012. Due January 31, 2013; | - | 27,000 | ||||||
payable on demand; interest is 10% for 6 months. | ||||||||
Note Payable $20,000 - Corinthian Development, January 15, 2013. Due May | 20,000 | - | ||||||
15, 2013; payable on demand;interest is 10%; Note was extended through | ||||||||
a verbal agreement. | ||||||||
Subtotal Due to Shareholders | $ | 131,500 | $ | 266,600 | ||||
2013 | 2012 | |||||||
Subtotal Due to Shareholders from Page 39 | $ | 131,500 | $ | 266,600 | ||||
Note Payable $100,000 - Sol & Tina Waxman Family Foundation, May 2013. | 100,000 | - | ||||||
Due December 31, 2013; payable on demand; interest is 10%. | ||||||||
Note Payable $90,000 - Joseph Riccelli, May 2013. Due November 22, 2013; | 90,000 | - | ||||||
interest is 10% for 180 days. | ||||||||
Note Payable $25,000 - Darryl Zaontz, July 2013. Due January 16, 2014; | 25,000 | - | ||||||
payable on demand; interest is 10% for 6 months. | ||||||||
Note Payable $15,000 - John and Priscilla Zaontz, July 2013. Due January | 15,000 | - | ||||||
6, 2014; payable on demand; interest is 10% for 6 months. | ||||||||
Note Payable $55,000 - Joseph Riccelli, September 2013. Due March 23, 2014; | 55,000 | - | ||||||
interest is 10% for 180 days. | ||||||||
Total Due to Shareholders | $ | 416,500 | $ | 266,600 | ||||
Notes Payable | ||||||||
Note Payable - U.S. Small Business Administration. Due July 2035; payable | $ | 351,625 | $ | 362,076 | ||||
in monthly installments of $1,820 including interest at 2.9% annum. | ||||||||
Note Payable $8,477 - Prime Rate Premium Finance Corporation, March 2012. | - | 1,885 | ||||||
Monthly payments of $992 due beginning April 10, 2012, including interest at 12.5%. | ||||||||
Note Payable $25,000 - Hilary Ackermann, July 2012. Due January 31, 2013; | - | 25,000 | ||||||
payable on demand; interest is 10% for 6 months. | ||||||||
Note Payable $50,000 - Aaron Riccelli, September 2012. Due January 14, 2013; | - | 50,000 | ||||||
payable on demand; interest is 10% for 120 days. | ||||||||
Subtotal of Notes Payable | $ | 351,625 | $ | 438,961 | ||||
2013 | 2012 | |||||||
Subtotal of Notes Payable from Page 40 | $ | 351,625 | $ | 438,961 | ||||
Note Payable $9,911 - Prime Rate Premium Finance Corporation, March 2013. | 3,304 | - | ||||||
Monthly payments of $1,159 due beginning April 10, 2013, including interest | ||||||||
at 12.5%. | ||||||||
Note Payable $40,000 - Xunjin Hua, November 2012. Due March 22, 2013; | 40,000 | - | ||||||
payable on demand; interest is 10% for 6 months. Note was extended through | ||||||||
a verbal agreement. | ||||||||
Note Payable $4,485 - Prime Rate Premium Finance Corporation, April 2013. | 1,495 | - | ||||||
Monthly payments of $529 due beginning May 16, 2013, including | ||||||||
interest at 14.5%. | ||||||||
Note Payable $25,000 - Aaron Riccelli, April 2013. Due August 31, 2013; | 25,000 | - | ||||||
payable on demand; interest is 10% for 120 days. Note was extended through | ||||||||
a verbal agreement | ||||||||
Note Payable $25,000 - Hoi Ping Lee, July 2013. Due January 6, 2014; | 25,000 | - | ||||||
payable on demand; interest is 10% for 6 months. | ||||||||
Note Payable $25,000 - Xunjin Hua, August 2013. Due February 10, 2014; | 25,000 | - | ||||||
payable on demand; interest is 10% for 6 months. | ||||||||
Note Payable $19,000 - Veronique Francois, September 2013. Due March 6, 2014; | 19,000 | - | ||||||
payable on demand; interest is 10% for 6 months. | ||||||||
Total Notes Payable | $ | 490,424 | $ | 438,961 | ||||
Total Borrowings | 906,924 | 705,561 | ||||||
Less Due to Shareholders | 416,500 | 266,600 | ||||||
Less Current Portion of Notes Payable | 155,053 | 91,298 | ||||||
Total Long Term Portion of Notes Payable | $ | 335,371 | $ | 347,663 | ||||
Maturities of long-term debt are as follows: | ||||||||
Year Ending | ||||||||
October 31 | Amount Due | |||||||
2014 | 571,553 | |||||||
2015 | 12,150 | |||||||
2016 | 12,481 | |||||||
2017 | 12,874 | |||||||
2018 | 13,252 | |||||||
Thereafter | 284,614 | |||||||
Total | $ | 906,924 | ||||||
The Company has received various advances from our Chief Executive Officer, Joseph Riccelli which have been used to fund operations. These advances totaled $31,000 and $84,100 as of October 31, 2013 and 2012, respectively. | ||||||||
In September 2005, the Company entered into a new loan agreement with James Kearney for a note payable. This new agreement is for a prior note payable of $100,000, dated July 2004. Interest of $8,000 per quarter was charged from October 2005 through October 2008. Interest accrued and due on this note was $92,000 as of October 31, 2012. The principal and interest are due and payable in full at any time after December 10, 2005. The principal balance as of October 31, 2013 and 2012 was $12,500. | ||||||||
In July 2005, the Company was approved for a low interest promissory note from the U.S. Small Business Administration in the amount of $280,100. The Company qualified for the loan due to the significant loss of inventory, raw materials, and equipment when its leased warehouse, in which it maintained these items, was flooded by the remnants of Hurricane Ivan in September 2004. The note bears interest at an annual rate of 2.9%. Monthly installment payments, including principal and interest of $1,186 began five months from the date of the promissory note. The note is payable over 30 years. Certain guarantees of collateral were made by the Company’s Chief Executive Officer and shareholder, Joseph Riccelli to service the note. The Company was to use the loan proceeds to repair or replace the following: approximately $6,200 for machinery and equipment; approximately $80,100 for furniture and fixtures; approximately $148,700 for inventory; and approximately $45,100 for working capital. The Company received the full amount of this loan at October 31, 2005. In January 2006 the Company amended the promissory note with the Small Business Administration increasing the principal balance to $430,500. The note still bears an annual interest rate of 2.9% and matures on July 13, 2035. Monthly payments, including principal and interest, of $1,820 are due each month beginning February 13, 2006. All remaining principal and accrued interest are due and payable on July 13, 2035. The loan balance was $351,625 and $362,076 at October 31, 2013 and 2012, respectively. | ||||||||
In July 2011, the Company entered into a note payable with Frank Riccelli for $10,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 120 days. This note was extended through a verbal agreement. The loan balance at October 31, 2013 and 2012 was $10,000. | ||||||||
In February 2012, the Company entered into a note payable with Roberta Riccelli for $8,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 120 days. This note was extended through a verbal agreement. The loan balance as of October 31, 2013 and 2012 was $8,000. | ||||||||
In March 2012, the Company entered into a note payable with Prime Rate Premium Finance for $8,477. This loan was to be used to finance insurance premiums of the Company. Monthly payments of $992 were due beginning April 10, 2012, including interest at 12.5%. This note was paid in full during 2013. | ||||||||
In May 2012, the Company entered into a note payable with the Sol & Tina Waxman Family Foundation for $100,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 180 days. The Company has pledged 250,000 shares of its stock, as collateral. This note is also personally guaranteed by the Company’s president. This note was paid in full during 2013. | ||||||||
In July 2012, the Company entered into a note payable with its president, Joseph Riccelli for $50,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 120 days. This note was extended through a verbal agreement. The loan balance at October 31, 2013 and 2012 was $50,000. | ||||||||
In July 2012, the Company entered into a note payable with Darryl Zaontz for $27,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 180 days. This note was paid in full during 2013. | ||||||||
In July 2012, the Company entered into a note payable with Hilary Ackermann for $25,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 120 days. This note was paid in full during 2013. | ||||||||
In September 2012, the Company entered into a note payable with Aaron Riccelli for $50,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 120 days. This note was paid in full during 2013. | ||||||||
In November 2012, the Company entered into a note payable with Xunjin Hua for $40,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 6 months. The loan was extended through a verbal agreement. The loan balance at October 31, 2013 was $40,000. | ||||||||
In January 2013, the Company entered into a note payable with Corinthian Development for $20,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 4 months. This note was extended through a verbal agreement. The loan balance at October 31, 2013 was $20,000. | ||||||||
In March 2013, the Company entered into a note payable with Prime Rate Premium Finance for $9,911. This loan was to be used to finance insurance premiums of the Company. Monthly payments of $1,159 were due beginning April 10, 2013, including interest at 12.5%. The loan balance at October 31, 2013 was $3,304. | ||||||||
In April 2013, the Company entered into a note payable with Prime Rate Premium Finance for $4,485. This loan was to be used to finance insurance premiums of the Company. Monthly payments of $529 were due beginning May 16, 2013, including interest at 14.5%. The loan balance at October 31, 2013 was $1,495. | ||||||||
In April 2013, the Company entered into a note payable with Aaron Riccelli for $25,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 120 days. The loan balance at October 31, 2013 was $25,000. | ||||||||
In May 2013, the Company entered into a note payable with the Sol & Tina Waxman Family Foundation for $100,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% on December 31, 2013. The Company has pledged 250,000 shares of its stock, as collateral. This note is also personally guaranteed by the Company’s president. The loan balance at October 31, 2013 was $100,000. | ||||||||
In May 2013, the Company entered into a note payable with its president, Joseph Riccelli for $90,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 180 days. The loan balance at October 31, 2013 was $90,000. | ||||||||
In July 2013, the Company entered into a note payable with Darryl Zaontz for $25,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 6 months, as well as 5,000 restricted shares of stock. Principal and interest may be converted into shares of stock upon request of the lender. The loan balance at October 31, 2013 was $25,000. Loan was converted to stock at $.20 per share. | ||||||||
In July 2013, the Company entered into a note payable with Hoi Ping Lee for $25,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 6 months, as well as 5,000 restricted shares of stock. Principal and interest may be converted into shares of stock upon request of the lender. The loan balance at October 31, 2013 was $25,000. Loan was converted to stock at $.20 per share. | ||||||||
In July 2013, the Company entered into a note payable with John and Priscilla Zaontz for $15,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 6 months, as well as 4,000 restricted shares of stock. Principal and interest may be converted into shares of stock upon request of the lender. The loan balance at October 31, 2013 was $15,000. Loan was converted to stock at $.20 per share. | ||||||||
In August 2013, the Company entered into a note payable with Xunjin Hua for $25,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 6 months, as well as 5,000 restricted shares of stock. The loan balance at October 31, 2013 was $25,000. | ||||||||
In September 2013, the Company entered into a note payable with Veronique Francois for $19,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 6 months. Principal and interest may be converted into shares of stock upon request of the lender. The loan balance at October 31, 2013 was $19,000. | ||||||||
In September 2013, the Company entered into a note payable with its president, Joseph Riccelli for $55,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 180 days. The loan balance at October 31, 2013 was $55,000. | ||||||||
EXCLUSIVE_LICENSING_AND_MANUFA
EXCLUSIVE LICENSING AND MANUFACTURING AGREEMENT | 12 Months Ended | |
Oct. 31, 2013 | ||
Licensing And Manufacturing Agreement [Abstract] | ' | |
Licensing And Manufacturing Agreement [Text Block] | ' | |
4 | EXCLUSIVE LICENSING AND MANUFACTURING AGREEMENT | |
On April 16, 2006, the Company entered into an Exclusive License and Manufacturing Agreement (the “Agreement”) with the Ketut Group, with an effective date of April 1, 2006, whereby the Company acquired an exclusive license to develop, use, sell, manufacture and market products related to or utilizing INSULTEX™, Korean Patent Number, (0426429) or any Insultex Technology. At the behest of the Board of Directors, the Insultex trademark was chosen as the mark to identify the product utilized by Innovative since its inception, and was originally registered by Joseph Riccelli on February 17, 2005. The new trademark, intended to avoid confusion arising from the use of the old Eliotex trademark in association with a new, subsequent, different and separately-patented product, was assigned by Mr. Riccelli to the Company on April 25, 2006, with that assignment to become effective upon final approval of the Statement of Use by the United States Patent and Trademark Office. The License was awarded by the Korean inventor, an individual who is part of the Ketut Group, and the manufacturer of INSULTEX™. The Company received an exclusive forty (40) year worldwide license, except for Korea and Japan, with an initial term of ten (10) years and an option to renew the License for up to three (3) successive ten (10) year terms. Additionally, the Company was granted the exclusive rights to any current or future inventions, improvements, discoveries, patent applications and letters of patent which the Ketut Group controls or may control related to INSULTEX™. Furthermore, the Company has the right to grant sub-licenses to other manufacturers for the use of INSULTEX™ or any Insultex Technology. | ||
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended | |
Oct. 31, 2013 | ||
Risks and Uncertainties [Abstract] | ' | |
Concentration Risk Disclosure [Text Block] | ' | |
5 | CONCENTRATIONS | |
Revenues from two customers were approximately 42% and 23% of the Company’s revenues for the years ended October 31, 2013 and 2012, respectively. | ||
Accounts receivable from three customers were approximately 61% of the Company’s accounts receivable as of October 31, 2013. Two customers accounted for approximately 40% of the Company’s October 31, 2012 accounts receivable balance. | ||
The Company only has one supplier of INSULTEX, the special material which is manufactured within the apparel of the Company. Additionally, the Company only has one manufacturer that produces the apparel on behalf of the Company, located in Indonesia, and one manufacturer that produces house wrap on behalf of the Company. | ||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Tax Disclosure [Text Block] | ' | |||||||
6 | INCOME TAXES | |||||||
In prior years the Company incurred net operating losses and, accordingly, no provision for income taxes has been recorded. In addition, no benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets. For the 2012 tax year, fiscal year end October 31, 2013, the Company had net operating loss carryforwards of approximately $2,789,000 for tax purposes. The carryforwards are available to offset taxable income of future periods and begin to expire after the Company’s 2024 tax year, fiscal year end October 31, 2025. Realization of the deferred tax benefit related to the carryforward is dependent upon the Company generating sufficient taxable income in the future, against which the loss can be offset, which is not guaranteed. | ||||||||
Deferred income taxes reflect the net tax effect of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as tax benefits of net operating loss carryforwards. The significant components of the Company’s deferred tax assets and liabilities relate to the following: | ||||||||
2013 | 2012 | |||||||
Net operating loss carryforward | $ | 948,500 | $ | 872,600 | ||||
Depreciation | -200 | -200 | ||||||
Net deferred tax assets before valuation allowance | 948,300 | 872,400 | ||||||
Less: Valuation allowance | -948,300 | -872,400 | ||||||
Net deferred tax assets | $ | - | $ | - | ||||
For financial reporting purposes, the Company has incurred losses in previous years. Based on the available objective evidence, including the Company’s previous losses, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company provided for a full valuation allowance against its net deferred tax assets as of October 31, 2013 and 2012, respectively. | ||||||||
The effective income tax rate varied from the statutory Federal tax rate as follows: | ||||||||
2013 | 2012 | |||||||
Federal statutory rate | 34 | % | 34 | % | ||||
Effect of net operating losses | -34 | % | -34 | % | ||||
Effective income tax rate | - | - | ||||||
The Company’s effective tax rate is lower than what would be expected if the federal statutory rate were applied to income (loss) before taxes, primarily due to net operating loss carryforwards. | ||||||||
COMMITMENTS
COMMITMENTS | 12 Months Ended | |
Oct. 31, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Commitments Disclosure [Text Block] | ' | |
7 | COMMITMENTS | |
The Company currently maintains two locations which are leased pursuant to oral agreements on a month-to-month basis. The Company leases offices from Riccelli Properties, which is solely owned by our Chief Executive Officer, Joseph Riccelli, Sr., for $700 per month. The Company leases its executive offices/warehouse space from Frank Riccelli, a stockholder and brother of our Chief Executive Officer, for $3,500 per month. For the years ended October 31, 2013 and 2012, rent expense totaled approximately $50,400. | ||
QUARTERLY_FINANCIAL_INFORMATIO
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information [Text Block] | ' | ||||||||||||||||
8 | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2013 | Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||
Revenue | $ | 295,046 | $ | 55,010 | $ | 11,117 | $ | 123,126 | $ | 484,299 | |||||||
Income/(loss) from | 17,351 | -97,217 | -107,870 | -42,772 | -230,508 | ||||||||||||
operations | |||||||||||||||||
Net income (loss) | $ | -6,972 | $ | -117,160 | $ | 55,316 | $ | -73,945 | $ | -142,761 | |||||||
Weighted average | 18,935,743 | 18,964,732 | 18,975,308 | 19,023,134 | 18,974,811 | ||||||||||||
shares | |||||||||||||||||
outstanding | |||||||||||||||||
Basic income/(loss) | 0 | -0.006 | 0.003 | -0.004 | -0.008 | ||||||||||||
per share | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2012 | Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||
Revenue | $ | 551,771 | $ | 45,471 | $ | 7,165 | $ | 208,354 | $ | 812,761 | |||||||
Income/(loss) from | 129,715 | -169,474 | -79,941 | -22,815 | -142,515 | ||||||||||||
operations | |||||||||||||||||
Net income (loss) | $ | 108,019 | $ | -183,929 | $ | -97,283 | $ | -281,521 | $ | -454,714 | |||||||
Weighted average | 18,775,743 | 18,783,132 | 18,843,352 | 18,918,352 | 18,830,401 | ||||||||||||
shares | |||||||||||||||||
outstanding | |||||||||||||||||
Basic income/(loss) | 0.006 | -0.01 | -0.005 | -0.015 | -0.024 | ||||||||||||
per share | |||||||||||||||||
COMMON_STOCK
COMMON STOCK | 12 Months Ended | |
Oct. 31, 2013 | ||
Stockholders' Equity Note [Abstract] | ' | |
Stockholders' Equity Note Disclosure [Text Block] | ' | |
9 | COMMON STOCK | |
On April 12, 2012, the Company issued 35,000 shares of its common stock for professional services for $.30 per share or $10,500. The negotiated value was divided by the approximate trading value of the Company’s common stock and the date the transaction was entered into to calculate the number of shares issued to the service provider. The shares were issued without registration pursuant to the exemption provided by Section 4(2) of the Securities Act of 1933, as amended. | ||
On July 2, 2012, the Company issued 100,000 shares of its common stock for professional services for $.25 per share or $25,000. The negotiated value was divided by the approximate trading value of the Company’s common stock and the date the transaction was entered into to calculate the number of shares issued to the service provider. The shares were issued without registration pursuant to the exemption provided by Section 4(2) of the Securities Act of 1933, as amended. | ||
On October 4, 2012, the Company issued 25,000 shares of its common stock for professional services for $.20 per share or $5,000. The negotiated value was divided by the approximate trading value of the Company’s common stock and the date the transaction was entered into to calculate the number of shares issued to the service provider. The shares were issued without registration pursuant to the exemption provided by Section 4(2) of the Securities Act of 1933, as amended. | ||
On February 4, 2013, the Company issued 30,000 shares of its common stock for professional services for $.30 per share or $9,000. The negotiated value was divided by the approximate trading value of the Company’s common stock and the date the transaction was entered into to calculate the number of shares issued to the service provider. The shares were issued without registration pursuant to the exemption provided by Section 4(2) of the Securities Act of 1933, as amended. | ||
On July 10, 2013, the Company issued 40,000 shares of its common stock for professional services for $.40 per share or $16,000. The negotiated value was divided by the approximate trading value of the Company’s common stock and the date the transaction was entered into to calculate the number of shares issued to the service provider. The shares were issued without registration pursuant to the exemption provided by Section 4(2) of the Securities Act of 1933, as amended. | ||
On October 27, 2013, the Company issued 320,000 shares of its common stock for cash for $.20 per share or $64,000. Of the $64,000, only $60,000 had been received as of October 31, 2013. The remaining $4,000 was classified as other receivables. | ||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | |
Oct. 31, 2013 | ||
Related Party Transactions [Abstract] | ' | |
Related Party Transactions Disclosure [Text Block] | ' | |
10 | RELATED PARTY TRANSACTIONS | |
The Company has entered into various debt agreements with related parties. These agreements are classified as shareholder loans within Note 3 to the financial statements. | ||
The Company has entered into 2 verbal lease agreements as further discussed in Note 7 to the financial statements. | ||
LITIGATION
LITIGATION | 12 Months Ended | |
Oct. 31, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Loss Contingency Disclosures [Text Block] | ' | |
11 | LITIGATION | |
During 2012, the Company filed a civil complaint in which we asserted that the defendants made deceptive claims in advertising and promotions that were aimed at our Arctic Armor products. The Company was then named as a defendant in a countersuit that asserted libel, slander, and torturous interference. The Company did not respond timely to the summons and complaint in the Minnesota action, and as a result recorded a $190,000 contingent liability as of October 31, 2012. | ||
During 2013, a settlement was reached regarding the open litigation. The Company withdrew the complaint in Pennsylvania, and the defendant withdrew the complaint in Minnesota. The parties have entered a mutual non-disparagement agreement. As a result, the Company has reversed the contingent liability of $190,000 associated with the countersuit as of October 31, 2013. | ||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | |
Oct. 31, 2013 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events [Text Block] | ' | |
12 | SUBSEQUENT EVENTS | |
In accordance with ASC Topic 855, “Subsequent Events”, the Company evaluated subsequent events through February 3, 2014, the date these financial statements were available to be issued. During such evaluation the following subsequent events were identified those discussed below: | ||
On January 7, 2014, the Company sold 50,000 shares of its common stock for $.20 per share or $10,000, to one purchaser. The shares were issued without registration pursuant to the exemption provided by Section 4(2) of the Securities Act of 1933, as amended. | ||
In January, 2014, the following converted their notes into common stock at $.20 per share: Priscilla and John Zaontz 86,500 shares; Hoi Ping Lee 142,000 shares; Darryl Zaontz 142,500 shares of stock. | ||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Business Description and Accounting Policies [Policy Text Block] | ' |
Nature of Operations - Innovative Designs, Inc. (the “Company”), which was incorporated in the State of Delaware on June 25, 2002, markets cold weather recreational and industrial clothing products that are made from INSULTEX, a low density foamed polyethylene, a material with buoyancy, scent block, and thermal resistant properties. These products are offered and sold by retailers, distributors, and companies throughout the United States, Canada, the Russian Federation and Finland. | |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of Accounting - The financial statements are prepared using the accrual basis of accounting in which revenues are recognized when earned and expenses are recognized when incurred. | |
Fiscal Period, Policy [Policy Text Block] | ' |
Fiscal Year End - The Company’s fiscal year ends on October 31. The fiscal years ending October 31, 2013 and 2012 are referred to as 2013 and 2012, respectively, throughout the Company’s financial statements. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results may differ from these estimates and assumptions. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Cash and Cash Equivalents - The Company defines cash and cash equivalents as those highly liquid investments purchased with a maturity of three months or less. | |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition - The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectibility is probable. Revenue is derived from sales of the Company’s recreational products such as Arctic Armor. Sales of these items are recognized when the items are shipped. The Company offers a 5 day return policy and no warranty on all of its products. All sales outside the United States are entered into using the U.S. dollar as its functional currency. During 2013 and 2012, the Company took back certain products from customers that accounted for $4,598 and $17,778 in revenue, respectively. The Company was not required to accept these returns but made a business decision to do so. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' |
Fair Value of Financial Instruments - The carrying value of cash and cash equivalents, accounts receivable, accounts payable, and certain other liabilities approximate their estimated fair values due to the short-term nature of these instruments. The fair value of the Company’s debt instruments approximates their fair values as the interest is tied to or approximates market rates. | |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' |
Estimated Uncollectable Accounts - The Company considers all accounts receivable balances to be fully collectable at October 31, 2013 and 2012, accordingly, no allowance for doubtful accounts is provided. During 2012, the Company wrote-off approximately $3,800 in uncollectable accounts receivable. | |
Inventory, Policy [Policy Text Block] | ' |
Inventory - Inventory consists principally of purchased finished goods. Inventory is stated at the lower of cost or market on a first-in, first-out basis. | |
During 2013, the Company entered into an agreement with Dick’s Sporting Goods in which it has consigned certain Arctic Armor products. These items will be offered in select stores and through the Dick’s Sporting Goods website. As of October 31, 2013, the Company had provided $42,900 of inventory to be placed in stores. As part of the agreement, at the end of the contract the Company will receive payment for all inventory sold and any remaining merchandise will be returned to the Company. As of October 31, 2013, there have been no sales related to this merchandise and the full amount is included in inventory. | |
Shipping and Handling Cost, Policy [Policy Text Block] | ' |
Shipping and Handling - Shipping costs associated with acquiring inventories are charged to cost of goods sold when incurred. The Company pays shipping and handling costs on behalf of customers for purchased merchandise. These costs are billed back to the customer through the billing invoice. The shipping and handling costs associated with customer orders was $29,827 and $66,590 as of October 31, 2013 and 2012, respectively. Freight costs for delivering products to customers are included in revenues from sales at the time the goods are shipped. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Net Income Per Common Share - The Company calculates net income per share in accordance with ASC Topic 260 “Earnings per Share”. Basic earnings per share are calculated by dividing net income by the weighted average number of common shares outstanding for the period. The Company only has common stock outstanding for 2013 and 2012. As a result, diluted earnings per share was not calculated. | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
Stock-Based Compensation - The Company accounts for stock based compensation in accordance with ASC Topic 718 “Compensation - Stock Compensation”. In accordance with the provisions of ASC 718 share-based payment transactions with employees are measured based on the fair value of the equity instruments issued on the grant date or on the fair value of the liabilities incurred. Share-based payments to nonemployees are measured and recognized using the fair-value method, based on the fair value of the equity instruments issued or the fair value of goods or services received, whichever is more reliably measured. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
New Accounting Pronouncements - During 2013 and 2012, the FASB issued various Accounting Standards Updates (“ASUs”). Based on management’s review, it was determined that the ASUs will have no material effect on the Company’s financial statements. As new ASUs are issued, management will evaluate their impact on the Company. Any future impact will be included in the notes to the Company’s financial statements. | |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
Property and equipment are summarized by major classifications as follows: | ||||||||
2013 | 2012 | |||||||
Equipment | $ | 28,987 | $ | 28,987 | ||||
Furniture and fixtures | 11,092 | 11,092 | ||||||
Leasehold improvements | 4,806 | 4,806 | ||||||
Automobile | 7,841 | 7,841 | ||||||
52,726 | 52,726 | |||||||
Less accumulated depreciation | 34,380 | 32,278 | ||||||
Property and equipment - net | $ | 18,346 | $ | 20,448 | ||||
BORROWINGS_Tables
BORROWINGS (Tables) | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Subordinated Borrowings [Abstract] | ' | |||||||
Schedule of Debt [Table Text Block] | ' | |||||||
Borrowings at October 31, 2013 and 2012 consisted of the following: | ||||||||
2013 | 2012 | |||||||
Due to Shareholders | ||||||||
Note Payable - Joseph Riccelli Interest is 8% per quarter with no payment terms. | $ | 31,000 | $ | 84,100 | ||||
Note Payable $100,000 - James Kearney, September 2005. Interest of $8,000 per | 12,500 | 12,500 | ||||||
quarter was charged from October 2005 through October 2008; principal and | ||||||||
interest due and payable in full at any time after December 10, 2005. | ||||||||
Note Payable $10,000 - Frank Riccelli, July 2011. Due December 20, 2011; | 10,000 | 10,000 | ||||||
payable on demand; interest is 10% for 120 days. Note was extended through | ||||||||
a verbal agreement. | ||||||||
Note Payable $8,000 - Roberta Riccelli, February 2012. Due June 17, 2012; | 8,000 | 8,000 | ||||||
interest is 10% for 120 days. Note was extended through a verbal agreement. | ||||||||
Note Payable $100,000 - Sol & Tina Waxman Family Foundation, May 2012. | - | 75,000 | ||||||
Due December 20, 2012; payable on demand; interest is 10%. | ||||||||
Note Payable $50,000 - Joseph Riccelli, July 2012. Due January 9, 2013; | 50,000 | 50,000 | ||||||
interest is 10% for 120 days. Note was extended through a verbal agreement. | ||||||||
Note Payable $27,000 - Darryl Zaontz, July 2012. Due January 31, 2013; | - | 27,000 | ||||||
payable on demand; interest is 10% for 6 months. | ||||||||
Note Payable $20,000 - Corinthian Development, January 15, 2013. Due May | 20,000 | - | ||||||
15, 2013; payable on demand;interest is 10%; Note was extended through | ||||||||
a verbal agreement. | ||||||||
Subtotal Due to Shareholders | $ | 131,500 | $ | 266,600 | ||||
2013 | 2012 | |||||||
Subtotal Due to Shareholders from Page 39 | $ | 131,500 | $ | 266,600 | ||||
Note Payable $100,000 - Sol & Tina Waxman Family Foundation, May 2013. | 100,000 | - | ||||||
Due December 31, 2013; payable on demand; interest is 10%. | ||||||||
Note Payable $90,000 - Joseph Riccelli, May 2013. Due November 22, 2013; | 90,000 | - | ||||||
interest is 10% for 180 days. | ||||||||
Note Payable $25,000 - Darryl Zaontz, July 2013. Due January 16, 2014; | 25,000 | - | ||||||
payable on demand; interest is 10% for 6 months. | ||||||||
Note Payable $15,000 - John and Priscilla Zaontz, July 2013. Due January | 15,000 | - | ||||||
6, 2014; payable on demand; interest is 10% for 6 months. | ||||||||
Note Payable $55,000 - Joseph Riccelli, September 2013. Due March 23, 2014; | 55,000 | - | ||||||
interest is 10% for 180 days. | ||||||||
Total Due to Shareholders | $ | 416,500 | $ | 266,600 | ||||
Notes Payable | ||||||||
Note Payable - U.S. Small Business Administration. Due July 2035; payable | $ | 351,625 | $ | 362,076 | ||||
in monthly installments of $1,820 including interest at 2.9% annum. | ||||||||
Note Payable $8,477 - Prime Rate Premium Finance Corporation, March 2012. | - | 1,885 | ||||||
Monthly payments of $992 due beginning April 10, 2012, including interest at 12.5%. | ||||||||
Note Payable $25,000 - Hilary Ackermann, July 2012. Due January 31, 2013; | - | 25,000 | ||||||
payable on demand; interest is 10% for 6 months. | ||||||||
Note Payable $50,000 - Aaron Riccelli, September 2012. Due January 14, 2013; | - | 50,000 | ||||||
payable on demand; interest is 10% for 120 days. | ||||||||
Subtotal of Notes Payable | $ | 351,625 | $ | 438,961 | ||||
2013 | 2012 | |||||||
Subtotal of Notes Payable from Page 40 | $ | 351,625 | $ | 438,961 | ||||
Note Payable $9,911 - Prime Rate Premium Finance Corporation, March 2013. | 3,304 | - | ||||||
Monthly payments of $1,159 due beginning April 10, 2013, including interest | ||||||||
at 12.5%. | ||||||||
Note Payable $40,000 - Xunjin Hua, November 2012. Due March 22, 2013; | 40,000 | - | ||||||
payable on demand; interest is 10% for 6 months. Note was extended through | ||||||||
a verbal agreement. | ||||||||
Note Payable $4,485 - Prime Rate Premium Finance Corporation, April 2013. | 1,495 | - | ||||||
Monthly payments of $529 due beginning May 16, 2013, including | ||||||||
interest at 14.5%. | ||||||||
Note Payable $25,000 - Aaron Riccelli, April 2013. Due August 31, 2013; | 25,000 | - | ||||||
payable on demand; interest is 10% for 120 days. Note was extended through | ||||||||
a verbal agreement | ||||||||
Note Payable $25,000 - Hoi Ping Lee, July 2013. Due January 6, 2014; | 25,000 | - | ||||||
payable on demand; interest is 10% for 6 months. | ||||||||
Note Payable $25,000 - Xunjin Hua, August 2013. Due February 10, 2014; | 25,000 | - | ||||||
payable on demand; interest is 10% for 6 months. | ||||||||
Note Payable $19,000 - Veronique Francois, September 2013. Due March 6, 2014; | 19,000 | - | ||||||
payable on demand; interest is 10% for 6 months. | ||||||||
Total Notes Payable | $ | 490,424 | $ | 438,961 | ||||
Total Borrowings | 906,924 | 705,561 | ||||||
Less Due to Shareholders | 416,500 | 266,600 | ||||||
Less Current Portion of Notes Payable | 155,053 | 91,298 | ||||||
Total Long Term Portion of Notes Payable | $ | 335,371 | $ | 347,663 | ||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | |||||||
Maturities of long-term debt are as follows: | ||||||||
Year Ending | ||||||||
October 31 | Amount Due | |||||||
2014 | 571,553 | |||||||
2015 | 12,150 | |||||||
2016 | 12,481 | |||||||
2017 | 12,874 | |||||||
2018 | 13,252 | |||||||
Thereafter | 284,614 | |||||||
Total | $ | 906,924 | ||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Summary of Tax Credit Carryforwards [Table Text Block] | ' | |||||||
The significant components of the Company’s deferred tax assets and liabilities relate to the following: | ||||||||
2013 | 2012 | |||||||
Net operating loss carryforward | $ | 948,500 | $ | 872,600 | ||||
Depreciation | -200 | -200 | ||||||
Net deferred tax assets before valuation allowance | 948,300 | 872,400 | ||||||
Less: Valuation allowance | -948,300 | -872,400 | ||||||
Net deferred tax assets | $ | - | $ | - | ||||
Federal Income Tax Note [Table Text Block] | ' | |||||||
The effective income tax rate varied from the statutory Federal tax rate as follows: | ||||||||
2013 | 2012 | |||||||
Federal statutory rate | 34 | % | 34 | % | ||||
Effect of net operating losses | -34 | % | -34 | % | ||||
Effective income tax rate | - | - | ||||||
QUARTERLY_FINANCIAL_INFORMATIO1
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | ||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2013 | Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||
Revenue | $ | 295,046 | $ | 55,010 | $ | 11,117 | $ | 123,126 | $ | 484,299 | |||||||
Income/(loss) from | 17,351 | -97,217 | -107,870 | -42,772 | -230,508 | ||||||||||||
operations | |||||||||||||||||
Net income (loss) | $ | -6,972 | $ | -117,160 | $ | 55,316 | $ | -73,945 | $ | -142,761 | |||||||
Weighted average | 18,935,743 | 18,964,732 | 18,975,308 | 19,023,134 | 18,974,811 | ||||||||||||
shares | |||||||||||||||||
outstanding | |||||||||||||||||
Basic income/(loss) | 0 | -0.006 | 0.003 | -0.004 | -0.008 | ||||||||||||
per share | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2012 | Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||
Revenue | $ | 551,771 | $ | 45,471 | $ | 7,165 | $ | 208,354 | $ | 812,761 | |||||||
Income/(loss) from | 129,715 | -169,474 | -79,941 | -22,815 | -142,515 | ||||||||||||
operations | |||||||||||||||||
Net income (loss) | $ | 108,019 | $ | -183,929 | $ | -97,283 | $ | -281,521 | $ | -454,714 | |||||||
Weighted average | 18,775,743 | 18,783,132 | 18,843,352 | 18,918,352 | 18,830,401 | ||||||||||||
shares | |||||||||||||||||
outstanding | |||||||||||||||||
Basic income/(loss) | 0.006 | -0.01 | -0.005 | -0.015 | -0.024 | ||||||||||||
per share | |||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | |
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Net, Total | $123,126 | $11,117 | $55,010 | $295,046 | $208,354 | $7,165 | $45,471 | $551,771 | $484,299 | $812,761 |
Allowance for Doubtful Accounts Receivable | ' | ' | ' | ' | 3,800 | ' | ' | ' | ' | 3,800 |
Shipping, Handling and Transportation Costs | ' | ' | ' | ' | ' | ' | ' | ' | 29,827 | 66,590 |
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | 42,900 | ' | ' | ' | 0 | ' | ' | ' | 42,900 | 0 |
Products Withdrawn [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Net, Total | ' | ' | ' | ' | ' | ' | ' | ' | $4,598 | $17,778 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $52,726 | $52,726 |
Less accumulated depreciation | 34,380 | 32,278 |
Property and equipment - net | 18,346 | 20,448 |
Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 28,987 | 28,987 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 11,092 | 11,092 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 4,806 | 4,806 |
Automobiles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $7,841 | $7,841 |
PROPERTY_AND_EQUIPMENT_Details1
PROPERTY AND EQUIPMENT (Details Textual) (USD $) | 12 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation | $2,102 | $649 |
BORROWINGS_Details
BORROWINGS (Details) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2005 | Jul. 31, 2004 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Jan. 31, 2006 | Oct. 31, 2013 | Oct. 31, 2012 |
Joseph Riccelli [Member] | Joseph Riccelli [Member] | James Kearney [Member] | James Kearney [Member] | Frank Riccelli [Member] | Frank Riccelli [Member] | Roberta Riccelli [Member] | Roberta Riccelli [Member] | Sol And Tina Waxman Family Due December 20 2012 [Member] | Sol And Tina Waxman Family Due December 20 2012 [Member] | Joseph Riccelli Due January 9 [Member] | Joseph Riccelli Due January 9 [Member] | Darryl Zaontz Due January 31 [Member] | Darryl Zaontz Due January 31 [Member] | Corinthian Development [Member] | Corinthian Development [Member] | Aaron Riccelli [Member] | Aaron Riccelli [Member] | Hilary Ackermann [Member] | Hilary Ackermann [Member] | Sol And Tina Waxman Family Due December 31 2013 [Member] | Sol And Tina Waxman Family Due December 31 2013 [Member] | Joseph Riccelli Due November 22 2013 [Member] | Joseph Riccelli Due November 22 2013 [Member] | Darryl Zaontz Due January 16 2014 [Member] | Darryl Zaontz Due January 16 2014 [Member] | John and Priscilla Zaontz Due January 6 2014 [Member] | John and Priscilla Zaontz Due January 6 2014 [Member] | Joseph Riccelli Due March 23 2014 [Member] | Joseph Riccelli Due March 23 2014 [Member] | Prime Rate Premium Finance due beginning April 10, 2013 [Member] | Prime Rate Premium Finance due beginning April 10, 2013 [Member] | Xunjin Hua Due March 22, 2013 [Member] | Xunjin Hua Due March 22, 2013 [Member] | Prime Rate Premium Finance due beginning May 16, 2013 [Member] | Prime Rate Premium Finance due beginning May 16, 2013 [Member] | Aaron Riccelli Due August 31, 2013 [Member] | Aaron Riccelli Due August 31, 2013 [Member] | Hoi Ping Lee Due January 6, 2014 [Member] | Hoi Ping Lee Due January 6, 2014 [Member] | Xunjin Hua Due February 10, 2014 [Member] | Xunjin Hua Due February 10, 2014 [Member] | Veronique Francois Due March 6, 2014 [Member] | Veronique Francois Due March 6, 2014 [Member] | Us Business Administration [Member] | Us Business Administration [Member] | Us Business Administration [Member] | Prime Rate Premium Finance Corporation due beginning April 10, 2012 [Member] | Prime Rate Premium Finance Corporation due beginning April 10, 2012 [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Due to Shareholders | $416,500 | $266,600 | ' | ' | $31,000 | $84,100 | $12,500 | $12,500 | $10,000 | $10,000 | $8,000 | $8,000 | $0 | $75,000 | $50,000 | $50,000 | $0 | $27,000 | $20,000 | $0 | ' | ' | ' | ' | $100,000 | $0 | $90,000 | $0 | $25,000 | $0 | $15,000 | $0 | $55,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable | 490,424 | 438,961 | 280,100 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 50,000 | 0 | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,304 | 0 | 40,000 | 0 | 1,495 | 0 | 25,000 | 0 | 25,000 | 0 | 25,000 | 0 | 19,000 | 0 | 351,625 | 362,076 | 430,500 | 0 | 1,885 |
Total Borrowings | 906,924 | 705,561 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less Due to Shareholders | 416,500 | 266,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less Current Portion of Notes Payable | 155,053 | 91,298 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Long Term Portion of Notes Payable | $335,371 | $347,663 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
BORROWINGS_Details_1
BORROWINGS (Details 1) (USD $) | Oct. 31, 2013 |
Debt Instrument [Line Items] | ' |
2014 | $571,553 |
2015 | 12,150 |
2016 | 12,481 |
2017 | 12,874 |
2018 | 13,252 |
Thereafter | 284,614 |
Total | $906,924 |
BORROWINGS_Details_Textual
BORROWINGS (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 36 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Jul. 31, 2005 | Oct. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2004 | Jul. 31, 2005 | Jul. 31, 2005 | Jul. 31, 2005 | Jul. 31, 2005 | Sep. 30, 2013 | 31-May-13 | Jul. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2008 | Oct. 31, 2012 | Sep. 30, 2005 | Jul. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Feb. 29, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Jan. 15, 2013 | Jan. 31, 2013 | Oct. 31, 2013 | 31-May-13 | Oct. 31, 2013 | Oct. 31, 2013 | Jul. 31, 2012 | Apr. 30, 2013 | Sep. 30, 2012 | Oct. 31, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Oct. 31, 2013 | Mar. 31, 2013 | Oct. 31, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Apr. 30, 2012 | Apr. 30, 2012 | Mar. 31, 2012 | 31-May-12 | Oct. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2012 | Oct. 31, 2013 | Aug. 31, 2013 | Nov. 30, 2012 | Jul. 31, 2013 | Oct. 31, 2013 | Jul. 31, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Jan. 31, 2006 | Jul. 31, 2005 | Jul. 31, 2005 | Oct. 31, 2013 | Oct. 31, 2012 | |
Inventory [Member] | Furniture and Fixtures [Member] | Machinery and Equipment [Member] | Working Capital [Member] | Joseph Riccelli [Member] | Joseph Riccelli [Member] | Joseph Riccelli [Member] | James Kearney [Member] | James Kearney [Member] | James Kearney [Member] | James Kearney [Member] | Frank Riccelli [Member] | Frank Riccelli [Member] | Frank Riccelli [Member] | Roberta Riccelli [Member] | Roberta Riccelli [Member] | Roberta Riccelli [Member] | Joseph Riccelli Due January 9 [Member] | Joseph Riccelli Due January 9 [Member] | Corinthian Development [Member] | Corinthian Development [Member] | Corinthian Development [Member] | Sol Tina Waxman Family Due December 31 2013 [Member] | Joseph Riccelli Due November 22 2013 [Member] | Joseph Riccelli Due March 23 2014 [Member] | Hilary Ackermann [Member] | Aaron Riccelli [Member] | Aaron Riccelli [Member] | Aaron Riccelli [Member] | Prime Rate Premium Finance due beginning April 10, 2013 [Member] | Prime Rate Premium Finance due beginning April 10, 2013 [Member] | Prime Rate Premium Finance due beginning April 10, 2013 [Member] | Prime Rate Premium Finance due beginning April 10, 2013 [Member] | Xunjin Hua Due March 22, 2013 [Member] | Prime Rate Premium Finance due beginning May 16, 2013 [Member] | Prime Rate Premium Finance due beginning May 16, 2013 [Member] | Prime Rate Premium Finance due beginning May 16, 2013 [Member] | Xunjin Hua Due February 10, 2014 [Member] | Prime Rate Premium Finance [Member] | Prime Rate Premium Finance [Member] | Prime Rate Premium Finance [Member] | Sol Tina Waxman Family Foundation [Member] | Sol Tina Waxman Family Foundation [Member] | Darryl Zaontz [Member] | Darryl Zaontz [Member] | Darryl Zaontz [Member] | Xunjin Hua [Member] | Xunjin Hua [Member] | Hoi Ping Lee [Member] | Hoi Ping Lee [Member] | John And Priscilla Zaontz [Member] | John And Priscilla Zaontz [Member] | Veronique Francois [Member] | Veronique Francois [Member] | Us Business Administration [Member] | Us Business Administration [Member] | Us Business Administration [Member] | Us Business Administration [Member] | Us Business Administration [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Total | $280,100 | $490,424 | $438,961 | $100,000 | ' | ' | ' | ' | $55,000 | $90,000 | $50,000 | ' | ' | ' | $100,000 | $10,000 | ' | ' | $8,000 | ' | ' | ' | ' | $20,000 | ' | ' | $100,000 | ' | ' | $25,000 | $25,000 | $50,000 | ' | ' | ' | $3,304 | $9,911 | ' | $4,485 | $4,485 | $1,495 | ' | ' | ' | $8,477 | $100,000 | ' | $25,000 | $27,000 | ' | $25,000 | $40,000 | $25,000 | ' | $15,000 | ' | $19,000 | ' | $430,500 | ' | ' | $351,625 | $362,076 |
Interest Expense | ' | 102,253 | 122,799 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advances to Affiliate | ' | 31,000 | 84,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Payable | ' | ' | 92,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of Property Repairs and Maintenance | ' | ' | ' | ' | 148,700 | 80,100 | 6,200 | 45,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate During Period | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% | 10.00% | 8.00% | ' | ' | ' | 10.00% | ' | ' | 10.00% | ' | ' | ' | ' | 10.00% | ' | ' | 10.00% | ' | ' | 10.00% | 10.00% | 10.00% | ' | 12.50% | ' | ' | ' | ' | 14.50% | ' | ' | ' | 12.50% | ' | ' | 10.00% | ' | 10.00% | 10.00% | ' | 10.00% | 10.00% | 10.00% | ' | 10.00% | ' | 10.00% | ' | ' | 2.90% | 2.90% | ' | ' |
Repayments Of Notes Payable | ' | 119,933 | 117,853 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,159 | ' | ' | ' | ' | 529 | ' | ' | ' | 992 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,820 | ' | ' | ' | ' |
Shares Pledged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | 5,000 | ' | ' | 5,000 | ' | 5,000 | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Description | ' | ' | ' | ' | ' | ' | ' | ' | '180 days | '180 days | '120 days | ' | ' | ' | ' | '120 days | ' | ' | '120 days | ' | ' | ' | ' | ' | '4 months | ' | ' | ' | ' | '120 days | '120 days | '120 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '180 days | ' | '6 months | '180 days | ' | '6 months | '6 months | '6 months | ' | '6 months | ' | '6 months | ' | ' | ' | ' | ' | ' |
Debt Instrument, Periodic Payment | 1,186 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12,500 | ' | $12,500 | ' | ' | $10,000 | $10,000 | ' | $8,000 | $8,000 | $50,000 | $50,000 | ' | ' | $20,000 | ' | $90,000 | $55,000 | ' | ' | ' | $25,000 | ' | ' | ' | ' | $40,000 | ' | ' | ' | $25,000 | ' | ' | ' | ' | $100,000 | ' | ' | $25,000 | ' | ' | ' | $25,000 | ' | $15,000 | ' | $19,000 | ' | ' | ' | $351,625 | $362,076 |
Debt Instrument, Convertible, Conversion Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.20 | ' | ' | ' | ' | $0.20 | ' | $0.20 | ' | ' | ' | ' | ' | ' | ' | ' |
EXCLUSIVE_LICENSING_AND_MANUFA1
EXCLUSIVE LICENSING AND MANUFACTURING AGREEMENT (Details Textual) | 12 Months Ended |
Oct. 31, 2013 | |
Indefinite-lived Intangible Assets [Line Items] | ' |
Licensing And Manufacturing Description | 'The Company received an exclusive forty (40) year worldwide license, except for Korea and Japan, with an initial term of ten (10) years and an option to renew the License for up to three (3) successive ten (10) year terms. Additionally, the Company was granted the exclusive rights to any current or future inventions, improvements, discoveries, patent applications and letters of patent |
CONCENTRATIONS_Details_Textual
CONCENTRATIONS (Details Textual) | 12 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
Customer Two [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 42.00% | 23.00% |
Customer Two [Member] | Accounts Receivable [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | ' | 40.00% |
Customer Three [Member] | Accounts Receivable [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 61.00% | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
Income Taxes [Line Items] | ' | ' |
Net operating loss carryforward | $948,500 | $872,600 |
Depreciation | -200 | -200 |
Net deferred tax assets before valuation allowance | 948,300 | 872,400 |
Less: Valuation allowance | -948,300 | -872,400 |
Net deferred tax assets | $0 | $0 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) | 12 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
Income Taxes [Line Items] | ' | ' |
Federal statutory rate | 34.00% | 34.00% |
Effect of net operating losses | -34.00% | -34.00% |
Effective income tax rate | 0.00% | 0.00% |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) (USD $) | 12 Months Ended |
Oct. 31, 2013 | |
Income Taxes [Line Items] | ' |
Operating Loss Carryforwards | $2,789,000 |
Tax Credit Carryforward, Expiration Date | 31-Oct-25 |
COMMITMENTS_Details_Textual
COMMITMENTS (Details Textual) (USD $) | 12 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
Operating Leased Assets [Line Items] | ' | ' |
Operating Leases, Rent Expense | $50,400 | $50,400 |
Chief Executive Officer [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Operating Leases, Rent Expense | 700 | ' |
Frank Riccelli [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Operating Leases, Rent Expense | $3,500 | ' |
QUARTERLY_FINANCIAL_INFORMATIO2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $123,126 | $11,117 | $55,010 | $295,046 | $208,354 | $7,165 | $45,471 | $551,771 | $484,299 | $812,761 |
Income/(loss) from operations | -42,772 | -107,870 | -97,217 | 17,351 | -22,815 | -79,941 | -169,474 | 129,715 | -230,508 | -142,515 |
Net income (loss) | ($73,945) | $55,316 | ($117,160) | ($6,972) | ($281,521) | ($97,283) | ($183,929) | $108,019 | ($142,761) | ($454,714) |
Weighted average shares outstanding | 19,023,134 | 18,975,308 | 18,964,732 | 18,935,743 | 18,918,352 | 18,843,352 | 18,783,132 | 18,775,743 | 18,974,811 | 18,830,401 |
Basic income/(loss) per share | ($0.00) | $0.00 | ($0.01) | $0 | ($0.02) | ($0.01) | ($0.01) | $0.01 | ($0.01) | ($0.02) |
COMMON_STOCK_Details_Textual
COMMON STOCK (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | Jul. 31, 2013 | Feb. 28, 2013 | Oct. 30, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 27, 2013 | Jul. 10, 2013 | Feb. 04, 2013 | Oct. 04, 2012 | Jul. 02, 2012 | Apr. 12, 2012 | |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued for services (in shares) | ' | 40,000 | 30,000 | 25,000 | 100,000 | 35,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued for services | ' | $16,000 | $9,000 | $5,000 | $25,000 | $10,500 | $25,000 | $40,500 | ' | ' | ' | ' | ' | ' |
Share Price | ' | ' | ' | ' | ' | ' | ' | ' | $0.20 | $0.40 | $0.30 | $0.20 | $0.25 | $0.30 |
Proceeds from Issuance of Common Stock | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' | ' | ' | ' | ' | ' |
Other Receivables, Net, Current, Total | 4,000 | ' | ' | ' | ' | ' | 4,000 | 0 | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues (in shares) | 320,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale Of Stock Value Of Shares Issued In Transaction | $64,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LITIGATION_Details_Textual
LITIGATION (Details Textual) (USD $) | 12 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
Loss Contingencies [Line Items] | ' | ' |
Reversal of contingent liability | $190,000 | $190,000 |
SUBSEQUENT_EVENTS_Details_Text
SUBSEQUENT EVENTS (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | |||||||
Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jan. 31, 2014 | Jan. 07, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | |
John And Priscilla Zaontz [Member] | Hoi Ping Lee [Member] | Darryl Zaontz [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||
John And Priscilla Zaontz [Member] | Hoi Ping Lee [Member] | Darryl Zaontz [Member] | |||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | 320,000 | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' |
Stock Issued During Period, Value, New Issues | ' | $64,000 | ' | ' | ' | ' | $10,000 | ' | ' | ' | ' |
Common Stock, Par Or Stated Value Per Share | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' | $0.20 | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price | ' | ' | ' | $0.20 | $0.20 | $0.20 | $0.20 | ' | ' | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued | ' | ' | ' | ' | ' | ' | ' | ' | 86,500 | 142,000 | 142,500 |