Innovative Designs (IVDN) 10-Q 21 Mar 14 2014 Q1 Quarterly report Financial data

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