Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Jan. 31, 2014 | Mar. 13, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Jan-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'IVDN | ' |
Entity Common Stock, Shares Outstanding | ' | 19,747,243 |
Entity Registrant Name | 'INNOVATIVE DESIGNS INC | ' |
Entity Central Index Key | '0001190370 | ' |
Current Fiscal Year End Date | '--10-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
CONDENSED_BALANCE_SHEETS
CONDENSED BALANCE SHEETS (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
CURRENT ASSETS | ' | ' |
Cash | $96,120 | $69,613 |
Accounts receivable | 158,838 | 90,583 |
Other receivables | 0 | 4,000 |
Inventory - net of obsolete inventory reserve of $52,000 for 2014 and 2013 | 516,871 | 614,581 |
Inventory on consignment | 68,088 | 42,900 |
Deposits on inventory | 37,281 | 30,846 |
Prepaid insurance | 2,196 | 7,655 |
Total current assets | 879,394 | 860,178 |
PROPERTY AND EQUIPMENT - NET | 17,231 | 18,346 |
TOTAL ASSETS | 896,625 | 878,524 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 83,239 | 83,183 |
Current portion of notes payable | 61,447 | 155,053 |
Accrued interest expense | 242,862 | 240,121 |
Due to shareholders | 354,500 | 416,500 |
Accrued expenses | 59,474 | 3,419 |
Total current liabilities | 801,522 | 898,276 |
Long-term portion of notes payable | 331,232 | 335,371 |
TOTAL LIABILITIES | 1,132,754 | 1,233,647 |
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 19,747,243 and 19,325,743 issued and outstanding as of January 31, 2014 and October 31, 2013 | 1,977 | 1,935 |
Additional paid-in capital | 5,861,864 | 5,777,606 |
Accumulated deficit | -6,099,970 | -6,134,664 |
Total stockholders' deficit | -236,129 | -355,123 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $896,625 | $878,524 |
CONDENSED_BALANCE_SHEETS_Paren
CONDENSED BALANCE SHEETS [Parenthetical] (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
Inventory Reserves (in dollars) | $52,000 | $52,000 |
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 | 19,747,243 | 19,325,743 |
Common stock, shares outstanding | 19,747,243 | 19,325,743 |
CONDENSED_STATEMENTS_OF_OPERAT
CONDENSED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
REVENUES - NET | $373,752 | $295,046 |
OPERATING EXPENSES: | ' | ' |
Cost of sales | 169,952 | 127,631 |
Selling, general and administrative expenses | 140,836 | 150,064 |
TOTAL OPERATING EXPENSES | 310,788 | 277,695 |
INCOME FROM OPERATIONS | 62,964 | 17,351 |
INTEREST EXPENSE | -28,270 | -24,323 |
NET INCOME/(LOSS) | $34,694 | ($6,972) |
PER SHARE INFORMATION | ' | ' |
Net Income/(Loss) Per Common Share (in dollars per share) | $0.00 | $0 |
Weighted Average Number of Common Shares Outstanding (in shares) | 19,440,281 | 18,935,743 |
CONDENSED_STATEMENTS_OF_CHANGE
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
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 income (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 | ' | ' |
Shares issues for debt conversion | 74,300 | 37 | 74,263 | 0 |
Shares issues for debt conversion (in shares) | ' | 371,500 | ' | ' |
Sale of stock | 10,000 | 5 | 9,995 | 0 |
Sale of stock (in shares) | ' | 50,000 | ' | ' |
Net income (loss) | 34,694 | 0 | 0 | 34,694 |
Balance at Jan. 31, 2014 | ($236,129) | $1,977 | $5,861,864 | ($6,099,970) |
Balance (in shares) at Jan. 31, 2014 | ' | 19,747,243 | ' | ' |
CONDENSED_STATEMENTS_OF_CASH_F
CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income (loss) | $34,694 | ($6,972) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Common stock issued for service | 9,300 | 0 |
Depreciation | 1,115 | 479 |
Increase (decrease) from changes in: | ' | ' |
Accounts receivable | -68,255 | 13,597 |
Other receivable | 4,000 | 0 |
Inventory | 72,522 | 38,314 |
Deposits on inventory | -6,435 | 20,912 |
Prepaid insurance | 5,459 | 3,110 |
Accounts payable | 56 | 13,164 |
Accrued expenses | 56,055 | 0 |
Accrued interest expense | 2,741 | 3,500 |
Net cash provided by operating activities | 111,252 | 86,104 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from sale of stock | 10,000 | 0 |
Payments on shareholder advances | -22,000 | -88,000 |
Proceeds from shareholder advances | 0 | 20,000 |
Payments on notes payable | -72,745 | -80,163 |
Proceeds from notes payable | 0 | 63,000 |
Net cash used in financing activities | -84,745 | -85,163 |
Net increase in cash | 26,507 | 941 |
CASH, BEGINNING OF YEAR | 69,613 | 54,995 |
CASH, END OF THE PERIOD | 96,120 | 55,936 |
Supplemental disclosure of cash flow information: | ' | ' |
Stock issuance for debt conversion | 74,300 | 0 |
Cash paid for interest | $18,979 | $20,823 |
FASB_ACCOUNTING_STANDARDS_CODI
FASB ACCOUNTING STANDARDS CODIFICATION TOPIC 210 COMPREHENSIVE INCOME (FASB ASC 210) | 3 Months Ended | ||
Jan. 31, 2014 | |||
Accounting Changes and Error Corrections [Abstract] | ' | ||
Accounting Changes and Error Corrections [Text Block] | ' | ||
NOTE 1. | In the opinion of management, the accompanying unaudited financial statements contain all adjustments necessary to present fairly the Company’s financial position as of January 31, 2014, the changes therein for the three month period then ended and the results of operations for the three month periods ended January 31, 2014 and 2013. | ||
BASIS_OF_PRESENTATION_INTERIM_
BASIS OF PRESENTATION - INTERIM FINANCIAL STATEMENTS | 3 Months Ended | |
Jan. 31, 2014 | ||
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ' | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | |
NOTE 2. | The financial statements included in the Form 10-Q are presented in accordance with the requirements of the Form and do not include all of the disclosures required by accounting principles generally accepted in the United States of America. For additional information, reference is made to the Company’s annual report on Form 10-K for the fiscal year ended October 31, 2013. The results of operations for the three month periods ended January 31, 2014 and 2013 are not necessarily indicative of operating results for the full year. | |
INVENTORY
INVENTORY | 3 Months Ended | |
Jan. 31, 2014 | ||
Inventory Disclosure [Abstract] | ' | |
Inventory Disclosure [Text Block] | ' | |
NOTE 3. | 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. The Company has decided to discontinue the manufacturing of its hunting and swimming line of apparel. The Company has booked a reserve against this inventory at January 31, 2014 and October 31, 2013 of $52,000. Management will continue to evaluate its obsolete inventory reserve throughout the year and make adjustments as needed. | ||
During 2013, the Company entered into an agreement with Dick’s Sporting Goods (“Dick’s”) in which it consigned certain Arctic Armor products to be offered in select stores. As of January 31, 2014, the Company earned revenues of $34,908 on consigned inventory, and is awaiting the return of its consigned Arctic Armor products of approximately $68,000 from Dick’s. | ||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | |
Jan. 31, 2014 | ||
Earnings Per Share [Abstract] | ' | |
Earnings Per Share [Text Block] | ' | |
NOTE 4. | EARNINGS PER SHARE | |
Innovative Designs, Inc. (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. | ||
DEPOSITS
DEPOSITS | 3 Months Ended | |
Jan. 31, 2014 | ||
Deposits [Abstract] | ' | |
Deposits [Text Block] | ' | |
NOTE 5. | DEPOSITS | |
The Company only has one manufacturer that produces the apparel on behalf of the Company, located in Indonesia. The Company will send deposits to the manufacturer for future production of the apparel based on approved purchase orders between the Company and the manufacturer. Once finished purchase orders are received by the Company, the deposits associated with those purchase orders are transferred into inventory. As of January 31, 2014 and October 31, 2013, the Company had $37,281 and $30,846, respectively, on deposit with its manufacturer. | ||
INCOME_TAXES
INCOME TAXES | 3 Months Ended | ||
Jan. 31, 2014 | |||
Income Tax Disclosure [Abstract] | ' | ||
Income Tax Disclosure [Text Block] | ' | ||
NOTE 6. | 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. | |||
SHIPPING_AND_HANDLING_COSTS
SHIPPING AND HANDLING COSTS | 3 Months Ended | |
Jan. 31, 2014 | ||
Shipping and Handling Costs [Abstract] | ' | |
Shipping and Handling Costs [Text Block] | ' | |
NOTE 7. | SHIPPING AND HANDLING COSTS | |
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 merchandise ordered by the Company are included as part of in inventory as these costs are allocated across the merchandise received. The shipping and handling costs billed back to customer orders was approximately $11,600 and $10,500 for the three month periods ending January 31, 2014 and 2013, respectively. These amounts are included in both revenue and selling, general and administrative expenses. | ||
COMMON_STOCK
COMMON STOCK | 3 Months Ended | |
Jan. 31, 2014 | ||
Stockholders' Equity Note [Abstract] | ' | |
Stockholders' Equity Note Disclosure [Text Block] | ' | |
NOTE 8. | COMMON STOCK | |
On January 7, 2014, the Company sold 50,000 shares of its common stock for $.20 per share or $10,000, to one investor who was a shareholder in the Company. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because the sale did not involve a public offering and there was no general solicitation or general advertising involved in the sale. 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. | ||
In January, 2014, the following converted their notes into common stock at $.20 per share: John and Priscilla Zaontz converted a $15,000 note and interest into 82,500 shares; Hoi Ping Lee converted a $25,000 note and interest into 137,500 shares; Darryl Zaontz converted a $25,000 note and interest into 137,500 shares of stock. Each of these individuals was also issued shares as additional consideration as called for in the notes, which totaled 14,000 shares. We believe that Section 4(2) of the Securities Act, as amended, was available because these a sales did not involve a public offering and there was no general solicitation or general advertising involved in the sale. 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. | ||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended | |
Jan. 31, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events [Text Block] | ' | |
NOTE 9. | SUBSEQUENT EVENTS | |
The Company has evaluated subsequent events in accordance with ASC Topic 855, “Subsequent Events”, through March 21, 2014, which is the date financial statements were available to be issued. With the exception of the matters discussed below, no subsequent event items were identified by the Company. | ||
During February 2014 the Company received an $80,000 advance from a financial institution. | ||
INVENTORY_Details_Textual
INVENTORY (Details Textual) (USD $) | 3 Months Ended | |
Jan. 31, 2014 | Oct. 31, 2013 | |
Inventory [Line Items] | ' | ' |
Inventory Reserves | $52,000 | $52,000 |
Revenue, Net | 34,908 | ' |
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | $68,088 | $42,900 |
DEPOSITS_Details_Textual
DEPOSITS (Details Textual) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
Deposits Disclosure [Line Items] | ' | ' |
Deposits on inventory | $37,281 | $30,846 |
SHIPPING_AND_HANDLING_COSTS_De
SHIPPING AND HANDLING COSTS (Details Textual) (USD $) | 3 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Shipping And Handling Costs [Line Items] | ' | ' |
Shipping, Handling and Transportation Costs | $11,600 | $10,500 |
COMMON_STOCK_Details_Textual
COMMON STOCK (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Jan. 07, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' |
Sale of stock (in shares) | 50,000 | ' | ' | ' |
Sale of stock | $10,000 | ' | $10,000 | $64,000 |
Share Price | $0.20 | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price | ' | $0.20 | $0.20 | ' |
Conversion of Stock, Shares Issued | ' | 14,000 | ' | ' |
John And Priscilla Zaontz [Member] | ' | ' | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' |
Debt Conversion, Converted Instrument, Amount | ' | 15,000 | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued | ' | 82,500 | ' | ' |
Hoi Ping Lee [Member] | ' | ' | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' |
Debt Conversion, Converted Instrument, Amount | ' | 25,000 | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued | ' | 137,500 | ' | ' |
Darryl Zaontz [Member] | ' | ' | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' |
Debt Conversion, Converted Instrument, Amount | ' | $25,000 | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued | ' | 137,500 | ' | ' |
SUBSEQUENT_EVENTS_Details_Text
SUBSEQUENT EVENTS (Details Textual) (Subsequent Event [Member], USD $) | Feb. 28, 2014 |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Short-term Debt | $80,000 |