Innovative Designs (IVDN) 10-Q 16 Mar 15 2015 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Jan. 31, 2015	Mar. 12, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Jan-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Entity Registrant Name	INNOVATIVE DESIGNS INC
Entity Central Index Key	1190370
Current Fiscal Year End Date	-21
Entity Filer Category	Smaller Reporting Company
Trading Symbol	IVDN
Entity Common Stock, Shares Outstanding		23,170,643

CONDENSED_BALANCE_SHEETS

CONDENSED BALANCE SHEETS (USD $)	Jan. 31, 2015	Oct. 31, 2014
CURRENT ASSETS
Cash	$1,106,913	$988,681
Accounts receivable	135,912	64,298
Other receivables	0	30,000
Inventory - net of obsolete inventory reserve of $46,000 for 2015 and 2014	980,195	889,560
Prepaid insurance	1,317	2,881
Total current assets	2,224,337	1,975,420
PROPERTY AND EQUIPMENT - NET	53,743	56,189
OTHER ASSETS
Deferred financing costs, net of accumulated amortization of $1,302 and $990 for 2015 and 2014	698	1,010
TOTAL ASSETS	2,278,778	2,032,619
CURRENT LIABILITIES
Accounts payable	36,833	87,933
Current portion of notes payable	44,369	59,407
Accrued interest expense	196,017	184,487
Due to shareholders	300,000	330,000
Accrued expenses	235,042	87,266
Total current liabilities	812,261	749,093
Long-term portion of notes payable	322,360	327,529
TOTAL LIABILITIES	1,134,621	1,076,622
STOCKHOLDERS' EQUITY
Preferred stock, $0.0001 par value, 25,000,000 shares authorized	0	0
Common stock, $0.0001 par value, 100,000,000 shares authorized, and 22,721,043 and 22,438,043 issued and outstanding as of January 31, 2015 and October 31, 2014	2,272	2,244
Additional paid-in capital	7,726,209	7,522,487
Accumulated deficit	-6,584,324	-6,568,734
Total stockholders' equity	1,144,157	955,997
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$2,278,778	$2,032,619

CONDENSED_BALANCE_SHEETS_Paren

CONDENSED BALANCE SHEETS [Parenthetical] (USD $)	Jan. 31, 2015	Oct. 31, 2014
Inventory Reserves (in dollars)	$46,000	$46,000
Accumulated Amortization, Deferred Finance Costs	$1,302	$990
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	25,000,000	25,000,000
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	22,721,043	22,438,043
Common stock, shares outstanding	22,721,043	22,438,043

CONDENSED_STATEMENTS_OF_OPERAT

CONDENSED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
REVENUES - NET	$286,404	$373,752
OPERATING EXPENSES:
Cost of sales	132,736	169,952
Selling, general and administrative expenses	151,907	140,836
Total Operating Expenses	284,643	310,788
INCOME FROM OPERATIONS	1,761	62,964
OTHER INCOME/(EXPENSE)
Miscellaneous income	385	0
Interest expense	-17,736	-28,270
Total other income/(expense)	-17,351	-28,270
NET INCOME/(LOSS)	($15,590)	$34,694
PER SHARE INFORMATION
Net Income/(Loss) Per Common Share (in Dollars per share)	($0.00)	$0.00
Weighted Average Number of Common Shares Outstanding (in shares)	22,640,706	19,440,281

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, 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	87,000	18	86,982	0
Shares issued for services (in shares)		180,000
Shares issued for debt conversion	86,900	39	86,861	0
Shares issued for debt conversion (in shares)		392,300
Sale of stock	1,571,290	252	1,571,038	0
Sale of stock (in shares)		2,540,000
Net loss	-434,070	0	0	-434,070
Balance at Oct. 31, 2014	955,997	2,244	7,522,487	-6,568,734
Balance (in shares) at Oct. 31, 2014		22,438,043
Sale of stock	203,750	28	203,722	0
Sale of stock (in shares)	283,000	283,000
Net loss	-15,590	0	0	-15,590
Balance at Jan. 31, 2015	$1,144,157	$2,272	$7,726,209	($6,584,324)
Balance (in shares) at Jan. 31, 2015		22,721,043

CONDENSED_STATEMENTS_OF_CASH_F

CONDENSED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	($15,590)	$34,694
Adjustments to reconcile net income(loss) loss to net cash (used in) provided by operating activities:
Common stock issued for services	0	9,300
Amortization	312	0
Depreciation	2,446	1,115
Increase (decrease) from changes in:
Accounts receivable	-71,614	-68,255
Other receivable	30,000	4,000
Inventory	-90,635	72,522
Deposits on inventory	0	-6,435
Prepaid insurance	1,564	5,459
Accounts payable	-51,100	56
Accrued expenses	147,776	56,055
Accrued interest expense	11,530	2,741
Net cash (used in) provided by operating activities	-35,311	111,252
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock	203,750	10,000
Payments on shareholder advances	-30,000	-22,000
Payments on notes payable	-20,207	-72,745
Net cash provided by (used in) financing activities	153,543	-84,745
Net increase in cash	118,232	26,507
CASH, BEGINNING OF YEAR	988,681	69,613
CASH, END OF THE PERIOD	1,106,913	96,120
Supplemental disclosure of cash flow information:
Stock issuance for debt conversion	0	74,300
Cash paid for interest	$6,206	$18,979

FASB_ACCOUNTING_STANDARDS_CODI

FASB ACCOUNTING STANDARDS CODIFICATION TOPIC 210 COMPREHENSIVE INCOME (FASB ASC 210)	3 Months Ended
	Jan. 31, 2015
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 Innovative Designs, Inc.’s financial position as of January 31, 2015, the changes therein for the three month period then ended and the results of operations for the three month periods ended January 31, 2015 and 2014.

BASIS_OF_PRESENTATION_INTERIM_

BASIS OF PRESENTATION - INTERIM FINANCIAL STATEMENTS	3 Months Ended
	Jan. 31, 2015
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, 2014. The results of operations for the three month periods ended January 31, 2015 and 2014 are not necessarily indicative of operating results for the full year.

INVENTORY

INVENTORY	3 Months Ended
	Jan. 31, 2015
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. Innovative Designs, Inc. (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, 2015 and October 31, 2014 of $46,000. Management will continue to evaluate its obsolete inventory reserve throughout the year and make adjustments as needed.

EARNINGS_PER_SHARE

EARNINGS PER SHARE	3 Months Ended
	Jan. 31, 2015
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	NOTE 4.	EARNINGS PER SHARE
	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, 2015
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 January 31, 2015 and October 31, 2014, the Company had no deposits with its manufacturer.

INCOME_TAXES

INCOME TAXES	3 Months Ended
	Jan. 31, 2015
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, 2015
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 $9,700 and $11,600 for the three month periods ended January 31, 2015 and 2014, respectively. These amounts are included in both revenue and selling, general and administrative expenses.

COMMON_STOCK

COMMON STOCK	3 Months Ended
	Jan. 31, 2015
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]		NOTE 8.	COMMON STOCK
	During the three month period ended January 31 2015, the Company sold its stock to five investors. The stock was issued for prices from $.60 to $.80 per share. A total of 283,000 shares of common stock were sold, resulting in proceeds of $203,750. 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.

SEGMENT_INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Jan. 31, 2015
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	NOTE 9.	SEGMENT INFORMATION
	We have organized our operations into two segments. We rely on an internal management reporting process that provides segment information for purposes of making financial decisions and allocating resources.
	The following tables present our business segment information for the three month periods ended January 31, 2015 and 2014:
			2015		2014
	Revenues:
	Apparel		$	278,799	$	366,901
	Housewrap			7,605		6,851
	Total Revenues		$	286,404	$	373,752
	Assets:
	Apparel		$	1,635,341	$	677,688
	Housewrap			643,437		218,937
	Total		$	2,278,778	$	896,625
	Depreciation:
	Apparel		$	481	$	677
	Housewrap			1,965		438
	Total		$	2,446	$	1,115

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Jan. 31, 2015
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 March 12, 2015, 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.
	The Company sold 190,000 shares of stock, at between $0.60 and $0.75 for $133,000 to 5 investors from February 1, 2015 through March 10, 2015. During the same period, the Company issued 10,000 shares of stock, at $1.20 per share, for services with a fair value of $12,000 to an individual.
	During February 2014, the Company entered into a notes payable agreement with Riccelli Properties, which is solely owned by our Chief Executive Officer, Joseph Riccelli, Sr., for $69,130.

SEGMENT_INFORMATION_Tables

SEGMENT INFORMATION (Tables)	3 Months Ended
	Jan. 31, 2015
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	The following tables present our business segment information for the three month periods ended January 31, 2015 and 2014:
		2015		2014
	Revenues:
	Apparel	$	278,799	$	366,901
	Housewrap		7,605		6,851
	Total Revenues	$	286,404	$	373,752
	Assets:
	Apparel	$	1,635,341	$	677,688
	Housewrap		643,437		218,937
	Total	$	2,278,778	$	896,625
	Depreciation:
	Apparel	$	481	$	677
	Housewrap		1,965		438
	Total	$	2,446	$	1,115

INVENTORY_Details_Textual

INVENTORY (Details Textual) (USD $)	Jan. 31, 2015	Oct. 31, 2014
Inventory [Line Items]
Inventory Valuation Reserves	$46,000	$46,000

SHIPPING_AND_HANDLING_COSTS_De

SHIPPING AND HANDLING COSTS (Details Textual) (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Shipping, Handling and Transportation Costs	$9,700	$11,600

COMMON_STOCK_Details_Textual

COMMON STOCK (Details Textual) (USD $)	3 Months Ended	12 Months Ended
	Jan. 31, 2015	Oct. 31, 2014
Stockholders Equity Note [Line Items]
Sale of stock (in shares)	283,000
Sale of stock	$203,750	$1,571,290
Maximum [Member]
Stockholders Equity Note [Line Items]
Share Price	$0.80
Minimum [Member]
Stockholders Equity Note [Line Items]
Share Price	$0.60
Common Stock [Member]
Stockholders Equity Note [Line Items]
Sale of stock (in shares)	283,000	2,540,000
Sale of stock	$28	$252

SEGMENT_INFORMATION_Details

SEGMENT INFORMATION (Details) (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Oct. 31, 2014
Segment Reporting Information [Line Items]
Total Revenues	$286,404	$373,752
Assets	2,278,778	896,625	2,032,619
Depreciation	2,446	1,115
Apparel [Member]
Segment Reporting Information [Line Items]
Total Revenues	278,799	366,901
Assets	1,635,341	677,688
Depreciation	481	677
Housewrap [Member]
Segment Reporting Information [Line Items]
Total Revenues	7,605	6,851
Assets	643,437	218,937
Depreciation	$1,965	$438

SUBSEQUENT_EVENTS_Details_Text

SUBSEQUENT EVENTS (Details Textual) (USD $)	3 Months Ended	12 Months Ended	1 Months Ended
	Jan. 31, 2015	Oct. 31, 2014	Mar. 10, 2015	Feb. 28, 2014
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues	283,000
Stock Issued During Period, Value, New Issues	$203,750	$1,571,290
Stock Issued During Period, Value, Issued For Services		87,000
Minimum [Member]
Subsequent Event [Line Items]
Share Price	$0.60
Maximum [Member]
Subsequent Event [Line Items]
Share Price	$0.80
Subsequent Event [Member] | Chief Executive Officer [Member]
Subsequent Event [Line Items]
Notes Payable				69,130
Subsequent Event [Member] | Individual [Member]
Subsequent Event [Line Items]
Share Price			$1.20
Stock Issued During Period, Value, Issued For Services			12,000
Stock Issued During Period, Shares, Issued For Services			10,000
Subsequent Event [Member] | Five Investors [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues			190,000
Stock Issued During Period, Value, New Issues			$133,000
Subsequent Event [Member] | Five Investors [Member] | Minimum [Member]
Subsequent Event [Line Items]
Shares Issued, Price Per Share			$0.60
Subsequent Event [Member] | Five Investors [Member] | Maximum [Member]
Subsequent Event [Line Items]
Shares Issued, Price Per Share			$0.75