Innovative Designs (IVDN) 10-Q15 Sep 142014 Q3 Quarterly reportFinancial data

Company Profile

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
Document And Entity Information	Jul. 31, 2014	Aug. 19, 2014
Document Information [Line Items]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Jul-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
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	'	21,638,043

CONDENSED_BALANCE_SHEETS

CONDENSED BALANCE SHEETS (USD $)	Jul. 31, 2014	Oct. 31, 2013
CURRENT ASSETS	'	'
Cash	$596,205	$69,613
Accounts receivable	32,854	90,583
Other receivables	0	4,000
Inventory - net of obsolete inventory reserve of $52,000 for 2014 and 2013	698,057	614,581
Inventory on consignment	0	42,900
Deposits on inventory	43,800	30,846
Prepaid insurance	2,185	7,655
Deferred loan costs	1,349	0
Total current assets	1,374,450	860,178
PROPERTY AND EQUIPMENT - NET	20,236	18,346
TOTAL ASSETS	1,394,686	878,524
CURRENT LIABILITIES	'	'
Accounts payable	73,273	83,183
Current portion of notes payable	65,054	155,053
Accrued interest expense	233,084	240,121
Due to shareholders	367,315	416,500
Accrued expenses	147,981	3,419
Total current liabilities	886,707	898,276
Long-term portion of notes payable	330,580	335,371
TOTAL LIABILITIES	1,217,287	1,233,647
STOCKHOLDERS' EQUITY/(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 21,078,723 and 19,325,743 issued and outstanding as of July 31, 2014 and October 31, 2013	2,108	1,935
Additional paid-in capital	6,601,173	5,777,606
Accumulated deficit	-6,425,882	-6,134,664
Total stockholders' equity/(deficit)	177,399	-355,123
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT)	$1,394,686	$878,524

CONDENSED_BALANCE_SHEETS_Paren

CONDENSED BALANCE SHEETS [Parenthetical] (USD $)	Jul. 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	21,078,723	19,325,743
Common stock, shares outstanding	21,078,723	19,325,743

CONDENSED_STATEMENTS_OF_OPERAT

CONDENSED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
CONDENSED STATEMENTS OF OPERATIONS (USD $)	Jul. 31, 2014	Jul. 31, 2013	Jul. 31, 2014	Jul. 31, 2013
REVENUES - NET	$195,035	$11,117	$635,457	$361,173
OPERATING EXPENSES:	'	'	'	'
Cost of sales	123,782	5,460	322,938	148,275
Selling, general and administrative expenses	169,690	113,527	515,252	400,634
TOTAL OPERATING EXPENSES	293,472	118,987	838,190	548,909
LOSS FROM OPERATIONS	-98,437	-107,870	-202,733	-187,736
OTHER INCOME/(EXPENSE)	'	'	'	'
Interest expense	-24,812	-26,814	-88,485	-71,080
Settlement of contingent liability	0	190,000	0	190,000
Total other income/(expense)	-24,812	163,186	-88,485	118,920
NET INCOME/(LOSS)	($123,249)	$55,316	($291,218)	($68,816)
PER SHARE INFORMATION	'	'	'	'
Net Income/(Loss) Per Common Share (in dollars per share)	($0.01)	$0.00	($0.02)	($0.00)
Weighted Average Number of Common Shares Outstanding (in shares)	20,444,578	18,980,091	19,888,248	18,960,118

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	48,500	10	48,490	0
Shares issued for services (in shares)	'	115,000	'	'
Shares issued for debt conversion	86,900	39	86,861	0
Shares issued for debt conversion (in shares)	'	392,300	'	'
Sale of stock	688,340	124	688,216	0
Sale of stock (in shares)	'	1,245,680	'	'
Net loss	-291,218	0	0	-291,218
Balance at Jul. 31, 2014	$177,399	$2,108	$6,601,173	($6,425,882)
Balance (in shares) at Jul. 31, 2014	'	21,078,723	'	'

CONDENSED_STATEMENTS_OF_CASH_F

CONDENSED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS (USD $)	Jul. 31, 2014	Jul. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($291,218)	($68,816)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Common stock issued for services	57,900	25,000
Amortization	651	0
Depreciation	2,953	1,408
Provision for inventory reserves	0	-7,000
Reversal of contingent liability	0	-190,000
Increase (decrease) from changes in:	'	'
Accounts receivable	57,729	95,805
Other receivable	4,000	0
Inventory	-40,576	62,102
Deposits on inventory	-12,954	-75,088
Prepaid insurance	5,470	-8,754
Deferred loan costs	-2,000	0
Accounts payable	-9,910	12,833
Accrued expenses	144,562	20,938
Accrued interest expense	-7,037	26,642
Net cash used in operating activities	-90,430	-104,930
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	688,340	0
Payments on shareholder advances	-46,685	-144,100
Proceeds from shareholder advances	50,000	235,000
Payments on notes payable	-149,790	-113,561
Proceeds from notes payable	80,000	142,396
Net cash provided by financing activities	621,865	119,735
Net increase in cash	526,592	14,805
CASH, BEGINNING OF YEAR	69,613	54,995
CASH, END OF THE PERIOD	596,205	69,800
Supplemental disclosure of cash flow information:	'	'
Stock issuance for debt conversion	86,900	0
Cash paid for interest	$89,022	$44,438

FASB_ACCOUNTING_STANDARDS_CODI

FASB ACCOUNTING STANDARDS CODIFICATION TOPIC 210 COMPREHENSIVE INCOME (FASB ASC 210)	9 Months Ended
	Jul. 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 July 31, 2014, the changes therein for the three and nine month periods then ended and the results of operations for the three and nine month periods ended July 31, 2014 and 2013.

BASIS_OF_PRESENTATION_INTERIM_

BASIS OF PRESENTATION - INTERIM FINANCIAL STATEMENTS	9 Months Ended
	Jul. 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 and nine month periods ended July 31, 2014 and 2013 are not necessarily indicative of operating results for the full year.

INVENTORY

INVENTORY	9 Months Ended
	Jul. 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 July 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.

EARNINGS_PER_SHARE

EARNINGS PER SHARE	9 Months Ended
	Jul. 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	9 Months Ended
	Jul. 31, 2014
Deposits [Abstract]	'
Deposits [Text Block]	'
	NOTE 5.	DEPOSITS

	The Company only has one manufacturer that produces the apparel and the INSULTEX material for the House Wrap on behalf of the Company, located in Indonesia. The Company will send deposits to the manufacturer for future production of the apparel and/or INSULTEX material, as the case may be, 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 July 31, 2014 and October 31, 2013, the Company had $43,800 and $30,846, respectively, on deposit with its manufacturer.

INCOME_TAXES

INCOME TAXES	9 Months Ended
	Jul. 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	9 Months Ended
	Jul. 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 apparel merchandise. These costs are billed back to the customer through the billing invoice. The shipping and handling costs associated with merchandise ordered by the Company are included as part of inventory as these costs are allocated across the merchandise received. With House Wrap orders the customer pays the shipping cost. The shipping and handling costs billed back to customer orders was approximately $46,000 and $26,000 for the nine month periods ended July 31, 2014 and 2013, respectively. These amounts are included in both revenue and selling, general and administrative expenses.

COMMON_STOCK

COMMON STOCK	9 Months Ended
	Jul. 31, 2014
Stockholders' Equity Note [Abstract]	'
Stockholders' Equity Note Disclosure [Text Block]	'
	NOTE 8.	COMMON STOCK

	During January of 2014, the Company sold its common stock to one private investor. The common stock was sold $.20 per share. A total of 50,000 shares of common stock were sold resulting in total proceeds of $10,000. No sales commissions were paid. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because the sales did not involve a public offering and there was no general solicitation or general advertising involved in the sales. 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.

	During January of 2014, three individuals converted notes payable its common stock at $.20 per share. These individuals converted principal and accrued interest of $71,500 into 357,500 shares of common stock. The Company also issued an additional 14,000 shares of common stock at $.20 per share, or $2,800, as additional consideration called for in the note payable agreements. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because the sales did not involve a public offering and there was no general solicitation or general advertising involved in the sales. 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.

	During April 2014, the Company sold its common stock to three private investors. The common stock was sold at $.40. A total of 115,000 shares were sold resulting in total proceeds of $46,000. No sales commissions were paid. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because the sales did not involve a public offering and there was no general solicitation or general advertising involved in the sales. 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.

	During April 2014, the Company issued an aggregate of 35,000 shares of our common stock, to two individuals for professional services. These issued shares were valued at $.40 per share for an aggregate price of $14,000. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because these transactions did not involve a public offering and there was no general solicitation or general advertising involved in these transactions. We placed legends on the stock certificates stating that the securities were not registered under the Securities Act and set forth the restrictions on their transferability and sale.

	During May through July 2014, the Company sold its common stock to twenty-six private investors. The common stock was sold at prices ranging between $.40 and $.70 per share. A total of 1,080,680 shares of common stock were sold resulting in total proceeds of $632,340. No sales commissions were paid. We relied on Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended, as the exemption from registration as all investors were “accredited investors” as that term is defined in the Regulation D, and no general solicitation or advertising was involved in these sales. 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 June 2014, a shareholder converted a note payable into common stock at approximately $.60 per share. The shareholder converted a $12,500 note into 20,800 shares of our common stock. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because the conversion did not involve a public offering and there was no general solicitation or general advertising involved in the conversion. 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.

	During May and June 2014, the Company issued an aggregate of 80,000 shares of our common stock, to four individuals for professional services. These issued shares were valued at either $.40 or $.50 a share for an aggregate price of $34,500. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because these transactions did not involve a public offering and there was no general solicitation or general advertising involved in these transactions. We placed legends on the stock certificates stating that the securities were not registered under the Securities Act and set forth the restrictions on their transferability and sale.

DEBT

DEBT	9 Months Ended
	Jul. 31, 2014
Debt Disclosure [Abstract]	'
Debt Disclosure [Text Block]	'
	NOTE 9.	DEBT

	The Company entered into a Note Payable Agreement with the President and CEO of the Company for $50,000 during the three month period ended July 31, 2014.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Jul. 31, 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 September 15, 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.

	In August 2014, the Company sold 514,320 shares of its common stock to private investors, for gross proceeds of $294,000. We relied on Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended, as the exemption from registration as all investors were “accredited investors” as that term is defined in the Regulation D, and no general solicitation or advertising was involved in these sales. 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 August 2014, the Company issued 45,000 shares of its common stock for professional services for $0.50 per share, or $22,500. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because these transactions did not involve a public offering and there was no general solicitation or general advertising involved in these transactions. We placed legends on the stock certificates stating that the securities were not registered under the Securities Act and set forth the restrictions on their transferability and sale.

INVENTORY_Details_Textual

INVENTORY (Details Textual) (USD $)	Jul. 31, 2014	Oct. 31, 2013
Inventory [Line Items]	'	'
Inventory Reserves	$52,000	$52,000

DEPOSITS_Details_Textual

DEPOSITS (Details Textual) (USD $)	Jul. 31, 2014	Oct. 31, 2013
Deposits Disclosure [Line Items]	'	'
Deposits on inventory	$43,800	$30,846

SHIPPING_AND_HANDLING_COSTS_De

SHIPPING AND HANDLING COSTS (Details Textual) (USD $)	9 Months Ended
SHIPPING AND HANDLING COSTS (Details Textual) (USD $)	Jul. 31, 2014	Jul. 31, 2013
Shipping And Handling Costs [Line Items]	'	'
Shipping, Handling and Transportation Costs	$46,000	$26,000

COMMON_STOCK_Details_Textual

COMMON STOCK (Details Textual) (USD $)

9 Months Ended

12 Months Ended

1 Months Ended

2 Months Ended

3 Months Ended

1 Months Ended

9 Months Ended

12 Months Ended

1 Months Ended

Jul. 31, 2014

Jul. 31, 2013

Oct. 31, 2013

Jan. 31, 2014

Jun. 30, 2014

Jul. 31, 2014

Apr. 30, 2014

Jan. 31, 2014

Jul. 31, 2014

Oct. 31, 2013

Apr. 30, 2014

Jun. 30, 2014

Individual Counterparty [Member]

Maximum [Member]

Minimum [Member]

Investor [Member]

Common Stock [Member]

Three Private Investor [Member]

Principal Owner [Member]

Individual Counterparty [Member]

Maximum [Member]

Minimum [Member]

Common Stock [Member]

Stockholders Equity Note [Line Items]

Sale of stock (in shares)

14,000

1,080,680

35,000

50,000

1,245,680

320,000

115,000

Sale of stock

$688,340

$64,000

$2,800

$14,000

$10,000

$124

$32

$46,000

Share Price

$0.20

$0.40

Debt Instrument, Convertible, Conversion Price

$0.20

$0.60

Debt Conversion, Converted Instrument, Amount

71,500

Debt Conversion, Converted Instrument, Shares Issued

357,500

20,800

Stock Issued During Period, Shares, Issued For Services

80,000

115,000

70,000

Stock Issued During Period, Value, Issued For Services

48,500

25,000

34,500

Shares Issued, Price Per Share

$0.50

$0.40

$0.70

$0.40

Noninterest Expense Commission Expense

Proceeds from Issuance of Common Stock

688,340

632,340

Debt Conversion, Original Debt, Amount

$12,500

DEBT_Details_Textual

DEBT (Details Textual) (USD $)	Jul. 31, 2014
Debt Disclosure [Line Items]	'
Long-term Debt, Gross	$50,000

SUBSEQUENT_EVENTS_Details_Text

SUBSEQUENT EVENTS (Details Textual) (USD $)	9 Months Ended		12 Months Ended	1 Months Ended
	Jul. 31, 2014	Jul. 31, 2013	Oct. 31, 2013	Aug. 31, 2014	Aug. 31, 2014
				Subsequent Event [Member]	Subsequent Event [Member]
					Investor [Member]
Subsequent Event [Line Items]	'	'	'	'	'
Stock Issued During Period, Shares, New Issues	'	'	'	'	514,320
Proceeds from Issuance of Common Stock	$688,340	$0	'	'	$294,000
Stock Issued During Period, Shares, Issued For Services	'	'	'	45,000	'
Stock Issued During Period, Value, Issued For Services	$48,500	'	$25,000	$22,500	'
Shares Issued, Price Per Share	'	'	'	$0.50	'