Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Apr. 30, 2015 | Jun. 15, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Apr-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 | |
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 | 23,267,643 |
CONDENSED_BALANCE_SHEETS
CONDENSED BALANCE SHEETS (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
CURRENT ASSETS | ||
Cash | $1,454,672 | $988,681 |
Accounts receivable | 47,776 | 64,298 |
Other receivables | 0 | 30,000 |
Inventory - net of obsolete inventory reserve of $46,000 for 2015 and 2014 | 874,033 | 889,560 |
Prepaid insurance | 10,987 | 2,881 |
Total current assets | 2,387,468 | 1,975,420 |
PROPERTY AND EQUIPMENT - NET | 51,378 | 56,189 |
OTHER ASSETS | ||
Deferred financing costs, net of accumulated amortization of $1,646 and $990 for 2015 and 2014 | 354 | 1,010 |
TOTAL ASSETS | 2,439,200 | 2,032,619 |
CURRENT LIABILITIES | ||
Accounts payable | 31,577 | 87,933 |
Current portion of notes payable | 28,610 | 59,407 |
Accrued interest expense | 206,354 | 184,487 |
Due to shareholders | 349,130 | 330,000 |
Accrued expenses | 148,912 | 87,266 |
Total current liabilities | 764,583 | 749,093 |
Long-term portion of notes payable | 248,208 | 327,529 |
TOTAL LIABILITIES | 1,012,791 | 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 23,223,643 and 22,438,043 issued and outstanding as of April 30, 2015 and October 31, 2014 | 2,322 | 2,244 |
Additional paid-in capital | 8,098,859 | 7,522,487 |
Accumulated deficit | -6,674,772 | -6,568,734 |
Total stockholders' equity | 1,426,409 | 955,997 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $2,439,200 | $2,032,619 |
CONDENSED_BALANCE_SHEETS_Paren
CONDENSED BALANCE SHEETS [Parenthetical] (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
Inventory Reserves (in dollars) | $46,000 | $46,000 |
Accumulated Amortization, Deferred Finance Costs | $1,646 | $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 | 23,223,643 | 22,438,043 |
Common stock, shares outstanding | 23,223,643 | 22,438,043 |
CONDENSED_STATEMENTS_OF_OPERAT
CONDENSED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
REVENUES - NET | $216,377 | $66,670 | $502,781 | $440,422 |
OPERATING EXPENSES: | ||||
Cost of sales | 120,178 | 29,204 | 252,914 | 199,156 |
Selling, general and administrative expenses | 164,874 | 204,726 | 316,781 | 345,562 |
Total Operating Expenses | 285,052 | 233,930 | 569,695 | 544,718 |
LOSS FROM OPERATIONS | -68,675 | -167,260 | -66,914 | -104,296 |
OTHER INCOME/(EXPENSE) | ||||
Miscellaneous income | 0 | 0 | 385 | 0 |
Interest expense | -21,773 | -35,403 | -39,509 | -63,673 |
Total other expense | -21,773 | -35,403 | -39,124 | -63,673 |
NET LOSS | ($90,448) | ($202,663) | ($106,038) | ($167,969) |
PER SHARE INFORMATION | ||||
Net Loss Per Common Share | ($0.00) | ($0.01) | ($0.01) | ($0.01) |
Weighted Average Number of Common Shares Outstanding (in shares) | 23,108,564 | 19,776,232 | 22,870,758 | 19,605,472 |
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 | |||
Shares issued for services | 12,000 | 1 | 11,999 | 0 |
Shares issued for services (in shares) | 10,000 | |||
Sale of stock | 564,450 | 77 | 564,373 | 0 |
Sale of stock (in shares) | 775,600 | |||
Net loss | -106,038 | 0 | 0 | -106,038 |
Balance at Apr. 30, 2015 | $1,426,409 | $2,322 | $8,098,859 | ($6,674,772) |
Balance (in shares) at Apr. 30, 2015 | 23,223,643 |
CONDENSED_STATEMENTS_OF_CASH_F
CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | ($106,038) | ($167,969) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Common stock issued for services | 12,000 | 23,300 |
Amortization | 656 | 312 |
Depreciation | 4,811 | 1,969 |
Increase (decrease) from changes in: | ||
Accounts receivable | 16,522 | -7,976 |
Other receivable | 30,000 | 4,000 |
Inventory | 15,527 | 92,410 |
Deposits on inventory | 0 | -33,409 |
Prepaid insurance | -8,106 | 5,586 |
Deferred loan costs | 0 | -2,000 |
Accounts payable | -56,356 | -11,174 |
Accrued expenses | 61,646 | 120,527 |
Accrued interest expense | 21,867 | -836 |
Net cash (used in) provided by operating activities | -7,471 | 24,740 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | 0 | -4,843 |
Net cash used in investing activities | 0 | -4,843 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of stock | 564,450 | 56,000 |
Payments on shareholder advances | -50,000 | -46,572 |
Proceeds from shareholder advances | 69,130 | 0 |
Payments on notes payable | -110,118 | -107,301 |
Proceeds from notes payable | 0 | 80,000 |
Net cash provided by (used in) financing activities | 473,462 | -17,873 |
Net increase in cash | 465,991 | 2,024 |
CASH, BEGINNING OF YEAR | 988,681 | 69,613 |
CASH, END OF THE PERIOD | 1,454,672 | 71,637 |
Supplemental disclosure of cash flow information: | ||
Stock issuance for debt conversion | 0 | 74,300 |
Cash paid for interest | $17,642 | $58,009 |
FASB_ACCOUNTING_STANDARDS_CODI
FASB ACCOUNTING STANDARDS CODIFICATION TOPIC 210 COMPREHENSIVE INCOME (FASB ASC 210) | 6 Months Ended | ||
Apr. 30, 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 April 30, 2015, 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, 2015 and 2014. | |
BASIS_OF_PRESENTATION_INTERIM_
BASIS OF PRESENTATION - INTERIM FINANCIAL STATEMENTS | 6 Months Ended | ||
Apr. 30, 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 and six month periods ended April 30, 2015 and 2014 are not necessarily indicative of operating results for the full year. | |
INVENTORY
INVENTORY | 6 Months Ended | ||
Apr. 30, 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 April 30, 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 | 6 Months Ended | ||
Apr. 30, 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. | |||
INCOME_TAXES
INCOME TAXES | 6 Months Ended | ||
Apr. 30, 2015 | |||
Income Tax Disclosure [Abstract] | |||
Income Tax Disclosure [Text Block] | NOTE 5. | 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, 2015 | |||
Shipping And Handling Costs [Abstract] | |||
Shipping And Handling Costs [Text Block] | NOTE 6. | 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 $10,000 and $15,000 for the six month periods ended April 30, 2015 and 2014, respectively. These amounts are included in both revenue and selling, general and administrative expenses. | |||
DEBT
DEBT | 6 Months Ended | ||
Apr. 30, 2015 | |||
Debt Disclosure [Abstract] | |||
Debt Disclosure [Text Block] | NOTE 7. | DEBT | |
During February 2015, the Company entered into a note payable agreement with Riccelli Properties, which is wholly owned and operated by Joseph Riccelli, Sr., in the amount of $69,130. This amount reflects payments made by Riccelli Properties on other debt obligations of the Company with proceeds of the sale of real estate. The note has a term of 1 year and an interest rate of 10%. | |||
COMMON_STOCK
COMMON STOCK | 6 Months Ended | ||
Apr. 30, 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 $.60-$.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. | |||
During the three month period ended April 30, 2015, the Company sold its stock to eleven investors. The stock was issued for prices from $.60-$.80 per share. A total of 492,600 shares of common stock were sold, resulting in proceeds of $360,700. In addition, the Company issued 10,000 shares for services performed during February 2015. The shares issued were valued at $1.20 per share or an aggregate price of $12,000. 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. | |||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 6 Months Ended | |||||||
Apr. 30, 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 six month periods ended April 30, 2015 and 2014: | ||||||||
2015 | 2014 | |||||||
Revenues: | ||||||||
Apparel | $ | 325,616 | $ | 417,941 | ||||
Housewrap | 177,165 | 22,481 | ||||||
Total Revenues | $ | 502,781 | $ | 440,422 | ||||
Assets: | ||||||||
Apparel | $ | 2,084,565 | $ | 599,839 | ||||
Housewrap | 354,635 | 224,660 | ||||||
Total | $ | 2,439,200 | $ | 824,499 | ||||
Depreciation: | ||||||||
Apparel | $ | 945 | $ | 1,010 | ||||
Housewrap | 3,866 | 959 | ||||||
Total | $ | 4,811 | $ | 1,969 | ||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 6 Months Ended | ||
Apr. 30, 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 June 15, 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. | |||
In May 2015, the Company issued an aggregate of 44,000 shares of stock, valued from $0.75 per share to $1.25 per share, for services with a fair value of $38,000. 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. | |||
The Company has reached an agreement in principle with the manufacturer of the INSULTEX material to purchase a machine capable of producing the INSULTEX material. Also included in the proposed agreement will be the propriety formula that creates INSULTEX. The Company intends to have the machine shipped to the United States where the Company will produce INSULTEX under its own brand name. | |||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 6 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following tables present our business segment information for the six month periods ended April 30, 2015 and 2014: | |||||||
2015 | 2014 | |||||||
Revenues: | ||||||||
Apparel | $ | 325,616 | $ | 417,941 | ||||
Housewrap | 177,165 | 22,481 | ||||||
Total Revenues | $ | 502,781 | $ | 440,422 | ||||
Assets: | ||||||||
Apparel | $ | 2,084,565 | $ | 599,839 | ||||
Housewrap | 354,635 | 224,660 | ||||||
Total | $ | 2,439,200 | $ | 824,499 | ||||
Depreciation: | ||||||||
Apparel | $ | 945 | $ | 1,010 | ||||
Housewrap | 3,866 | 959 | ||||||
Total | $ | 4,811 | $ | 1,969 | ||||
INVENTORY_Details_Textual
INVENTORY (Details Textual) (USD $) | Apr. 30, 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 $) | 6 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Shipping, Handling and Transportation Costs | $10,000 | $15,000 |
DEBT_Details_Textual
DEBT (Details Textual) (USD $) | 6 Months Ended | |
Apr. 30, 2015 | Oct. 31, 2014 | |
Notes Payable, Current | $28,610 | $59,407 |
Debt Instrument, Interest Rate, Effective Percentage | 10.00% | |
Debt Instrument, Term | 1 year | |
Riccelli Properties [Member] | ||
Notes Payable, Current | $69,130 |
COMMON_STOCK_Details_Textual
COMMON STOCK (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2015 | Jan. 31, 2015 | Apr. 30, 2015 | Oct. 31, 2014 | |
Stockholders Equity Note [Line Items] | ||||
Sale of stock (in shares) | 492,600 | 283,000 | ||
Sale of stock | $360,700 | $203,750 | $564,450 | $1,571,290 |
Stock Issued During Period, Value, Issued For Services | $12,000 | $12,000 | $87,000 | |
Stock Issued During Period, Shares, Issued For Services | 10,000 | |||
Shares Issued, Price Per Share | $1.20 | $1.20 | ||
Maximum [Member] | ||||
Stockholders Equity Note [Line Items] | ||||
Share Price | $0.80 | $0.80 | $0.80 | |
Minimum [Member] | ||||
Stockholders Equity Note [Line Items] | ||||
Share Price | $0.60 | $0.60 | $0.60 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Oct. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Total Revenues | $502,781 | $440,422 | |
Assets | 2,439,200 | 824,499 | 2,032,619 |
Depreciation | 4,811 | 1,969 | |
Apparel [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 325,616 | 417,941 | |
Assets | 2,084,565 | 599,839 | |
Depreciation | 945 | 1,010 | |
Housewrap [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 177,165 | 22,481 | |
Assets | 354,635 | 224,660 | |
Depreciation | $3,866 | $959 |
SUBSEQUENT_EVENTS_Details_Text
SUBSEQUENT EVENTS (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended |
Apr. 30, 2015 | Apr. 30, 2015 | Oct. 31, 2014 | 31-May-15 | |
Subsequent Event [Line Items] | ||||
Shares Issued, Price Per Share | $1.20 | $1.20 | ||
Stock Issued During Period, Shares, Issued For Services | 10,000 | |||
Stock Issued During Period, Value, Issued For Services | $12,000 | $12,000 | $87,000 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Stock Issued During Period, Shares, Issued For Services | 44,000 | |||
Stock Issued During Period, Value, Issued For Services | $38,000 | |||
Subsequent Event [Member] | Minimum [Member] | ||||
Subsequent Event [Line Items] | ||||
Shares Issued, Price Per Share | $0.75 | |||
Subsequent Event [Member] | Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Shares Issued, Price Per Share | $1.25 |