Innovative Designs (IVDN) 10-Q 16 Jun 14 2014 Q2 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	6 Months Ended
	Apr. 30, 2014	Jun. 16, 2014
Document Information [Line Items]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Apr-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
Trading Symbol	'IVDN	'
Entity Common Stock, Shares Outstanding	'	19,952,243
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 $)	Apr. 30, 2014	Oct. 31, 2013
CURRENT ASSETS	'	'
Cash	$71,637	$69,613
Accounts receivable	98,559	90,583
Other receivables	0	4,000
Inventory - net of obsolete inventory reserve of $52,000 for 2014 and 2013	565,071	614,581
Inventory on consignment	0	42,900
Deposits on inventory	64,255	30,846
Prepaid insurance	2,069	7,655
Deferred loan costs	1,688	0
Total current assets	803,279	860,178
PROPERTY AND EQUIPMENT - NET	21,220	18,346
TOTAL ASSETS	824,499	878,524
CURRENT LIABILITIES	'	'
Accounts payable	72,009	83,183
Current portion of notes payable	94,653	155,053
Accrued interest expense	239,285	240,121
Due to shareholders	329,928	416,500
Accrued expenses	123,946	3,419
Total current liabilities	859,821	898,276
Long-term portion of notes payable	343,470	335,371
TOTAL LIABILITIES	1,203,291	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 19,897,243 and 19,325,743 issued and outstanding as of April 30, 2014 and October 31, 2013	1,991	1,935
Additional paid-in capital	5,921,850	5,777,606
Accumulated deficit	-6,302,633	-6,134,664
Total stockholders' deficit	-378,792	-355,123
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$824,499	$878,524

CONDENSED_BALANCE_SHEETS_Paren

CONDENSED BALANCE SHEETS [Parenthetical] (USD $)	Apr. 30, 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	19,897,243	19,325,743
Common stock, shares outstanding	19,897,243	19,325,743

CONDENSED_STATEMENTS_OF_OPERAT

CONDENSED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2014	Apr. 30, 2013
REVENUES - NET	$66,670	$55,010	$440,422	$350,056
OPERATING EXPENSES:	'	'	'	'
Cost of sales	29,204	15,184	199,156	142,815
Selling, general and administrative expenses	204,726	137,043	345,562	287,107
TOTAL OPERATING EXPENSES	233,930	152,227	544,718	429,922
LOSS FROM OPERATIONS	-167,260	-97,217	-104,296	-79,866
OTHER EXPENSE	'	'	'	'
INTEREST EXPENSE	-35,403	-19,943	-63,673	-44,266
NET LOSS	($202,663)	($117,160)	($167,969)	($124,132)
PER SHARE INFORMATION	'	'	'	'
Net Loss Per Common Share (in dollars per share)	($0.01)	($0.01)	($0.01)	($0.01)
Weighted Average Number of Common Shares Outstanding (in shares)	19,776,232	18,964,732	19,605,472	18,949,997

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 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 issued for services	14,000	3	13,997	0
Shares issued for services (in shares)	'	35,000	'	'
Shares issued for debt conversion	74,300	37	74,263	0
Shares issued for debt conversion (in shares)	'	371,500	'	'
Sale of stock	56,000	16	55,984	0
Sale of stock (in shares)	'	165,000	'	'
Net loss	-167,969	0	0	-167,969
Balance at Apr. 30, 2014	($378,792)	$1,991	$5,921,850	($6,302,633)
Balance (in shares) at Apr. 30, 2014	'	19,897,243	'	'

CONDENSED_STATEMENTS_OF_CASH_F

CONDENSED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($167,969)	($124,132)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Common stock issued for services	23,300	9,000
Amortization	312	'
Depreciation	1,969	943
Provision for inventory reserves	0	-7,000
Increase (decrease) from changes in:	'	'
Accounts receivable	-7,976	83,918
Other receivable	4,000	0
Inventory	92,410	56,678
Deposits on inventory	-33,409	-5,088
Prepaid insurance	5,586	-14,213
Deferred loan costs	-2,000	0
Accounts payable	-11,174	27,339
Accrued expenses	120,527	21,260
Accrued interest expense	-836	12,856
Net cash provided by operating activities	24,740	61,561
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Capital expenditures	-4,843	0
Net cash used in investing activities	-4,843	0
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Proceeds from sale of stock	56,000	0
Payments on shareholder advances	-46,572	-124,500
Proceeds from shareholder advances	0	20,000
Payments on notes payable	-107,301	-84,224
Proceeds from notes payable	80,000	102,396
Net cash used in financing activities	-17,873	-86,328
Net increase (decrease) in cash	2,024	-24,767
CASH, BEGINNING OF YEAR	69,613	54,995
CASH, END OF THE PERIOD	71,637	30,228
Supplemental disclosure of cash flow information:	'	'
Stock issuance for debt conversion	74,300	0
Cash paid for interest	$58,009	$31,410

FASB_ACCOUNTING_STANDARDS_CODI

FASB ACCOUNTING STANDARDS CODIFICATION TOPIC 210 COMPREHENSIVE INCOME (FASB ASC 210)	6 Months Ended
	Apr. 30, 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 April 30, 2014, the changes therein for the three and six month periods then ended and the results of operations for the three and six month periods ended April 30, 2014 and 2013.

BASIS_OF_PRESENTATION_INTERIM_

BASIS OF PRESENTATION - INTERIM FINANCIAL STATEMENTS	6 Months Ended
	Apr. 30, 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 and six month periods ended April 30, 2014 and 2013 are not necessarily indicative of operating results for the full year.

INVENTORY

INVENTORY	6 Months Ended
	Apr. 30, 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 April 30, 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. During the period of the agreement, the Company earned revenues of approximately $41,000 on consigned inventory.

EARNINGS_PER_SHARE

EARNINGS PER SHARE	6 Months Ended
	Apr. 30, 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	6 Months Ended
	Apr. 30, 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 April 30, 2014 and October 31, 2013, the Company had $64,255 and $30,846, respectively, on deposit with its manufacturer.

INCOME_TAXES

INCOME TAXES	6 Months Ended
	Apr. 30, 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	6 Months Ended
	Apr. 30, 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 inventory as these costs are allocated across the merchandise received. The shipping and handling costs billed back to customer orders was approximately $15,000 and $14,000 for the six month periods ending April 30, 2014 and 2013, respectively. These amounts are included in both revenue and selling, general and administrative expenses.

COMMON_STOCK

COMMON STOCK	6 Months Ended
	Apr. 30, 2014
Stockholders' Equity Note [Abstract]	'
Stockholders' Equity Note Disclosure [Text Block]	'
	NOTE 8.	COMMON STOCK
			In January of 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 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.
			In April 2014, the Company sold 115,000 shares of its common stock for $.40 per share, or $46,000, to three private investors. 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 April 2014, the Company issued an aggregate of 35,000 shares of our common stock to two individuals for professional services. These shares issued were valued at $.40 a share or an aggregate price of $14,000. We believe that Section 4(2) of the Securities Act, as amended, was available because these 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.

DEBT

DEBT	6 Months Ended
	Apr. 30, 2014
Debt Disclosure [Abstract]	'
Debt Disclosure [Text Block]	'
		Note 9.	DEBT
			The Company entered into a loan agreement, with a lending institution, during the three month period ended April 30, 2014, totaling $80,000. These borrowings were used to fund operations during the quarter.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Apr. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events [Text Block]	'
		NOTE 10.	SUBSEQUENT EVENTS
			The Company has evaluated subsequent events in accordance with ASC Topic 855, “Subsequent Events”, through June 16, 2014, which is the date financial statements were available to be issued. During such evaluation the following events were identified.
			In May 2014, the Company issued 15,000 shares of its common stock for professional services for $0.40 per share, or $6,000.
			In June 2014, the Company issued 40,000 shares of its common stock for professional services at $0.40 per share, or $16,000.

INVENTORY_Details_Textual

INVENTORY (Details Textual) (USD $)	6 Months Ended
	Apr. 30, 2014	Oct. 31, 2013
Inventory [Line Items]	'	'
Inventory Reserves	$52,000	$52,000
Revenue, Net	$41,000	'

DEPOSITS_Details_Textual

DEPOSITS (Details Textual) (USD $)	Apr. 30, 2014	Oct. 31, 2013
Deposits Disclosure [Line Items]	'	'
Deposits on inventory	$64,255	$30,846

SHIPPING_AND_HANDLING_COSTS_De

SHIPPING AND HANDLING COSTS (Details Textual) (USD $)	6 Months Ended
	Apr. 30, 2014	Apr. 30, 2013
Shipping And Handling Costs [Line Items]	'	'
Shipping, Handling and Transportation Costs	$15,000	$14,000

COMMON_STOCK_Details_Textual

COMMON STOCK (Details Textual) (USD $)	1 Months Ended	6 Months Ended	12 Months Ended
	Jan. 31, 2014	Apr. 30, 2014	Oct. 31, 2013
Stockholders Equity Note [Line Items]	'	'	'
Sale of stock	'	$56,000	$64,000
Debt Instrument, Convertible, Conversion Price	$0.20	'	'
Conversion of Stock, Shares Issued	14,000	'	'
Stock Issued During Period, Value, Issued For Services	'	14,000	25,000
Common Stock [Member]	'	'	'
Stockholders Equity Note [Line Items]	'	'	'
Sale of stock (in shares)	50,000	165,000	320,000
Sale of stock	10,000	16	32
Share Price	$0.20	'	'
Stock Issued During Period, Shares, Issued For Services	'	35,000	70,000
Stock Issued During Period, Value, Issued For Services	'	3	7
Shares Issued, Price Per Share	'	$0.40	'
Common Stock [Member] | Professional Services [Member]	'	'	'
Stockholders Equity Note [Line Items]	'	'	'
Stock Issued During Period, Value, Issued For Services	'	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	'	'
Three Private Investor [Member] | Common Stock [Member]	'	'	'
Stockholders Equity Note [Line Items]	'	'	'
Sale of stock (in shares)	'	115,000	'
Sale of stock	'	$46,000	'
Share Price	'	$0.40	'

DEBT_Details_Textual

DEBT (Details Textual) (USD $)	Apr. 30, 2014
Debt Disclosure [Line Items]	'
Long-term Debt, Gross	$80,000

SUBSEQUENT_EVENTS_Details_Text

SUBSEQUENT EVENTS (Details Textual) (USD $)	6 Months Ended	12 Months Ended		1 Months Ended
	Apr. 30, 2014	Oct. 31, 2013	Jan. 31, 2014	Jun. 30, 2014	31-May-14
				Subsequent Event [Member]	Subsequent Event [Member]
Subsequent Event [Line Items]	'	'	'	'	'
Stock Issued During Period, Shares, Issued For Services	'	'	'	40,000	15,000
Stock Issued During Period, Value, Issued For Services	$14,000	$25,000	'	$16,000	$6,000
Debt Instrument, Convertible, Conversion Price	'	'	$0.20	$0.40	$0.40