Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Jan. 13, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | INNOVATIVE DESIGNS INC | |
Entity Central Index Key | 1,190,370 | |
Document Type | 10-K | |
Trading Symbol | IVDN | |
Document Period End Date | Oct. 31, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $ 14,382,955 | |
Entity Common Stock, Shares Outstanding | 25,045,310 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,015 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Oct. 31, 2015 | Oct. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,151,904 | $ 988,681 |
Accounts receivable | $ 85,827 | 64,298 |
Other receivables | 30,000 | |
Inventory - net of obsolete inventory reserve of $40,000 and $46,000, respectively | $ 924,054 | $ 889,560 |
Deposits on inventory | 78,320 | |
Prepaid expenses | 7,619 | $ 2,881 |
Total current assets | 2,247,724 | 1,975,420 |
PROPERTY AND EQUIPMENT - NET | $ 51,200 | 56,189 |
OTHER ASSETS | ||
Deferred financing costs, net of accumulated amortization of $2,000 and $990, respectively | $ 1,010 | |
Deposit on equipment | $ 420,000 | |
TOTAL OTHER ASSETS | 420,000 | $ 1,010 |
TOTAL ASSETS | 2,718,924 | 2,032,619 |
CURRENT LIABILITIES | ||
Accounts payable | 119,360 | 87,933 |
Current portion of notes payable | 14,657 | 59,407 |
Accrued interest expense | 78,251 | 184,487 |
Due to stockholders | 354,130 | 330,000 |
Accrued expenses | 92,533 | 87,266 |
Total current liabilities | 658,931 | 749,093 |
Long-term portion of notes payable | 235,146 | 327,529 |
TOTAL LIABILITIES | 894,077 | 1,076,622 |
STOCKHOLDERS' EQUITY | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized as of October 31, 2015 and 2014, and 24,371,310 and 22,438,043 issued and outstanding as of October 31, 2015 and 2014, respectively | 2,437 | 2,244 |
Additional paid-in capital | 8,902,744 | 7,522,487 |
Accumulated deficit | (7,080,334) | (6,568,734) |
Total stockholders' equity | 1,824,847 | 955,997 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,718,924 | $ 2,032,619 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) | Oct. 31, 2015 | Oct. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Inventory obsolete reserve | $ 40,000 | $ 46,000 |
Accumulated amortization | $ 2,000 | $ 990 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 24,371,310 | 22,438,043 |
Common stock, shares outstanding | 24,371,310 | 22,438,043 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Income Statement [Abstract] | ||
REVENUES - NET OF RETURNS AND ALLOWANCES | $ 772,900 | $ 771,184 |
OPERATING EXPENSES | ||
Cost of sales | 371,715 | 433,861 |
Selling, general and administrative expenses | 816,235 | 646,932 |
LOSS FROM OPERATIONS | (415,050) | $ (309,609) |
OTHER INCOME (EXPENSE) | ||
Loss on sale of equipment | (3,363) | |
Misc. - Other Income | 385 | |
Interest expense | (93,572) | $ (124,461) |
TOTAL OTHER INCOME (EXPENSE) | (96,550) | (124,461) |
NET LOSS | $ (511,600) | $ (434,070) |
Basic | ||
Net Loss Per Common Share (in dollars per share) | $ (0.022) | $ (0.021) |
Weighted Average Number of Common Shares Outstanding (in shares) | 23,438,254 | 20,397,432 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at beginning at Oct. 31, 2013 | $ 1,935 | $ 5,777,606 | $ (6,134,664) | $ (355,123) |
Balance at beginning (in shares) at Oct. 31, 2013 | 19,325,743 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued for services | $ 18 | 86,982 | 87,000 | |
Shares issued for services (in shares) | 180,000 | |||
Shares issued for debt conversion | $ 39 | 86,861 | 86,900 | |
Shares issued for debt conversion (in shares) | 392,300 | |||
Sale of stock | $ 252 | $ 1,571,038 | 1,571,290 | |
Sale of stock (in shares) | 2,540,000 | |||
Net loss | $ (434,070) | (434,070) | ||
Balance at ending at Oct. 31, 2014 | $ 2,244 | $ 7,522,487 | $ (6,568,734) | 955,997 |
Balance at ending (in shares) at Oct. 31, 2014 | 22,438,043 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued for services | $ 10 | 98,990 | 99,000 | |
Shares issued for services (in shares) | 107,000 | |||
Shares issued for debt conversion | $ 12 | 91,988 | 92,000 | |
Shares issued for debt conversion (in shares) | 122,667 | |||
Sale of stock | $ 171 | $ 1,189,279 | 1,189,450 | |
Sale of stock (in shares) | 1,703,600 | |||
Net loss | $ (511,600) | (511,600) | ||
Balance at ending at Oct. 31, 2015 | $ 2,437 | $ 8,902,744 | $ (7,080,334) | $ 1,824,847 |
Balance at ending (in shares) at Oct. 31, 2015 | 24,371,310 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (511,600) | $ (434,070) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Common stock issued for services and interest expense | 99,000 | 96,400 |
Amortization | 1,010 | 990 |
Depreciation | $ 9,737 | 4,000 |
Increase in deferred financing | (2,000) | |
Provision for inventory reserves | $ (6,000) | (6,000) |
Increase (decrease) from changes in: | ||
Accounts receivable | (21,529) | 26,285 |
Other receivables | 30,000 | (26,000) |
Inventory | (28,494) | (226,079) |
Deposits on inventory | (78,320) | 30,846 |
Prepaid insurance | (4,738) | 4,774 |
Accounts payable | 31,427 | 4,750 |
Accrued expenses | 5,267 | 83,847 |
Accrued interest expense | (14,236) | (55,634) |
Net cash used in operating activities | (488,476) | (497,891) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (8,111) | $ (41,843) |
Loss on sale of equipment | 3,363 | |
Deposits on equipment | (420,000) | |
Net cash used in investing activities | (424,748) | $ (41,843) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of stock | 1,189,450 | 1,571,290 |
Payments on stockholder advances | (45,000) | (84,000) |
Proceeds from stockholder advances | 69,130 | 50,000 |
Payments on notes payable | $ (137,133) | (158,488) |
Proceeds from notes payable | 80,000 | |
Net cash provided by financing activities | $ 1,076,447 | 1,458,802 |
Net increase in cash equivalents | 163,223 | 919,068 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 988,681 | 69,613 |
CASH AND CASH EQUIVALENTS, END OF THE YEAR | 1,151,904 | 988,681 |
Supplemental disclosure of cash flow information: | ||
Stock issuance for debt and interest conversion | 92,000 | 86,900 |
Cash paid for interest | $ 107,808 | $ 173,595 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations We operate two reportable segments: Apparel and House Wrap. Our apparel segment offers a wide variety of extreme cold weather apparel and related items. Our House Wrap segment offers our Insultex House Wrap which has an R-value of 3 and an R-value of 6 and our own seam tape. Basis of Accounting Fiscal Year End Estimates Cash and Cash Equivalents Revenue Recognition Fair Value of Financial Instruments Estimated Uncollectable Accounts Inventory During the fiscal year ended October 31, 2010, the Company discontinued its hunting and swimming lines of apparel. A reserve balance of approximately $40,000 and $46,000 was recorded as of October 31, 2015 and 2014, respectively. The reserve is evaluated on a quarterly basis and adjusted accordingly. During 2013, the Company entered into an agreement with Dicks Sporting Goods in which it has consigned certain Arctic Armor products. These items were offered in select stores and through the Dicks Sporting Goods website. As of October 31, 2013, the Company had provided $42,900 of inventory to be placed in stores. This agreement resulted in revenues of $44,600 as of October 31, 2014. There were no sales of these products during 2013. At the expiration of this agreement, $68,600 of inventory was not sold by Dicks Sporting Goods and subsequently returned to the Company during its 2014 fiscal year, in accordance with the agreement. Deposits on Inventory Property and Equipment For financial reporting purposes, depreciation is primarily provided on the straight-line method over the estimated useful lives of depreciable assets, which range from 5 to 7 years. Deposits on Equipment Impairment of Long-lived Assets Income Taxes Income Taxes In addition, ASC 740 clarifies the accounting for uncertainty in tax positions and requires that a company recognize in its financial statements the impact of a tax position, only if it is more likely than not of being sustained upon examination, based on the technical merits of the position. The Company recognized no material adjustments to the liability for unrecognized income tax benefits. The Companys policy regarding the classification of interest and penalties recognized in accordance with ASC 740 is to classify them as income tax expense in its financial statements, if applicable. The Company is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Company believes it is no longer subject to income tax examinations for years up to and including the year ended October 31, 2011. Concentration of Credit Risk Shipping and Handling Net Income Per Common Share Earnings per Share Stock-Based Compensation Compensation - Stock Compensation Amendment to the Certificate of the Incorporation The terms of the lesser shares of Common Stock will be identical to those of the currently outstanding shares of Common Stock. This amendment and the creation of lesser shares of authorized Common Stock will not alter the current number of issued shares. The relative rights and limitations of the shares of Common Stock remained unchanged under this amendment. Holders of Common Stock have no preemptive rights to purchase or subscribe for any unissued capital stock of the Company. This amendment did not alter this limitation. Recent Accounting Standards Update In August, 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements Going Concern, which requires management to evaluate whether there are conditions or events, considered in the aggregate, the raise substantial doubt about an entitys ability to continue as a going concern within one year after the date that the financial statements are issued or the date the financial statements are available to be issued. ASU 2014-15 is effective for the annual period ending after December 15, 2016. Early adoption is permitted. Management has determined that the adoption of this guidance will not have any impact on the financial statements and notes hereto. In May 2015, the FASB issued ASU 2015-07, Fair Value Measurement Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share, which removed the requirement to categorize within the fair value hierarchy all investments measured at fair value using the net asset value per share. It also removes the requirement to make certain disclosures for all investments that are measured at fair value using the net asset value per share. ASU 2015-07 is effective for public entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, ASU 2015-7 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early application is permitted and the ASU should be applied retrospectively to all periods presented. Management has determined that the adoption of this guidance will not have any impact on the financial statements and notes hereto. In July 2015, the FASB issued ASU 2015-11, Inventory Simplifying the Measurement of Inventory, which requires that an entity measure their inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. For public business entities, ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. It should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. Management has determined that the adoption of this guidance will not have any impact on the financial statements and notes thereto. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Oct. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 2. PROPERTY AND EQUIPMENT Property and equipment are summarized by major classifications as follows: 2015 2014 Equipment $ 70,830 $ 70,830 Furniture and fixtures 11,092 11,092 Leasehold improvements 4,806 4,806 Automobile 9,121 7,841 95,849 94,569 Less accumulated depreciation 44,639 38,380 Property and equipment - net $ 51,210 $ 56,189 Depreciation expense for the years ended October 31, 2015 and 2014 was $9,737 and $4,000, respectively. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Oct. 31, 2015 | |
Debt Disclosure [Abstract] | |
BORROWINGS | 3. BORROWINGS Borrowings at October 31, 2015 and 2014 consisted of the following: 2015 2014 Due to Stockholders Note Payable $8,000 - Roberta Riccelli, February 2012. Due June 17, 2012; interest is 10% for 120 days. Note was extended through a verbal agreement with no set maturity date. 5,000 5,000 Note Payable $50,000 - Joseph Riccelli, Sr., July 2012. Due January 9, 2013; interest is 10% for 120 days. Note was extended through a verbal agreement with no set maturity date. 45,000 50,000 Note Payable $20,000 - Corinthian Development, January 15, 2013. Due May 15, 2013; payable on demand; interest is 10%; Note was extended through a verbal agreement with no set maturity date. 10,000 20,000 Note Payable $100,000 - Sol & Tina Waxman Family Foundation, September 2014. Due March 31, 2015; payable on demand; interest is 10%. Note was extended through a verbal agreement with no set maturity date. 50,000 60,000 Note Payable $90,000 - Joseph Riccelli, Sr., May 2013. Due November 22, 2013; interest is 10% for 180 days. Note was extended through a verbal agreement with no set maturity date. 90,000 90,000 Note Payable $55,000 - Joseph Riccelli, Sr., September 2013. Due March 23, 2014; interest is 10% for 180 days. Note was extended through a verbal agreement with no set maturity date. 55,000 55,000 Note Payable $50,000 - Joseph Riccelli, Sr., May 2014. Due November 12, 2014; interest is 10% for 180 days. Note was extended through a verbal agreement with no set maturity date. 50,000 50,000 Note Payable $69,130 - Riccelli Properties, February 2015. Due February 26, 2016; interest is 10% annually. 49,130 - Total Due to Stockholders $ 354,130 $ 330,000 2015 2014 Notes Payable Note Payable - U.S. Small Business Administration. Due July 2035; payable in monthly installments of $1,820 including interest at 2.9% annum. $ 249,803 $ 338,696 Note Payable $80,000 - OnDeck Capital, February 2014. 378 payments of $307 due on each business day; interest is 45% for 18 months. - 48,240 Total Notes Payable $ 249,803 $ 386,936 Total Borrowings 603,933 716,936 Less Due to Stockholders 354,130 330,000 Less Current Portion of Notes Payable 14,657 59,407 Total Long Term Portion of Notes Payable $ 235,146 $ 327,529 Maturities of long-term debt are as follows: Year Ending Notes October 31 Stockholders Payable Amount Due 2016 $ 354,130 $ 14,657 $ 368,787 2017 - 14,808 14,808 2018 - 15,243 15,243 2019 - 15,674 15,674 2020 - 16,151 16,151 Thereafter - 173,270 173,270 Total $ 354,130 $ 249,803 $ 603,933 NOTES PAYABLE The Company has received various advances from our Chief Executive Officer, Joseph Riccelli, Sr., which have been used to fund operations. In July 2005, the Company was approved for a low interest promissory note from the U.S. Small Business Administration in the amount of $280,100.In January 2006 the Company amended the promissory note with the Small Business Administration increasing the principal balance to $430,500. The note bears an annual interest rate of 2.9% and matures on July 13, 2035. Monthly payments, including principal and interest, of $1,820 are due each month beginning February 13, 2006. The loan balance was $249,803 and $338,696 at October 31, 2015 and 2014, respectively. DUE TO STOCKHOLDERS In February 2012, the Company entered into a note payable with Roberta Riccelli for $8,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 120 days. This note was extended through a verbal agreement. The loan balance as of October 31, 2015 and 2014 was $5,000. In July 2012, the Company entered into a note payable with its president, Joseph Riccelli, Sr., for $50,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 120 days. This note was extended through a verbal agreement. The loan balance at October 31, 2015 and 2014 was $45,000 and $50,000, respectively. In January 2013, the Company entered into a note payable with Corinthian Development for $20,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 4 months. This note was extended through a verbal agreement. The loan balance at October 31, 2015 and 2014 was $10,000 and $20,000, respectively. In May 2013, the Company entered into a note payable with the Sol & Tina Waxman Family Foundation for $100,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% on December 31, 2013. The Companys CEO has pledged 250,000 shares of his stock, as collateral. This note is also personally guaranteed by the Companys CEO. This note was converted into a $60,000 note due March 31, 2015 after $40,000 in principal and $10,000 in interest was paid. The loan was extended through a verbal agreement. The loan balance at October 31, 2015 and 2014 was $50,000 and $60,000, respectively. In May 2013, the Company entered into a note payable with its CEO, Joseph Riccelli, Sr., for $90,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 180 days. This note was extended through a verbal agreement. The loan balance at October 31, 2015 and 2014 was $90,000. In September 2013, the Company entered into a note payable with its CEO, Joseph Riccelli, Sr., for $55,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 180 days. The loan balance at October 31, 2015 and 2014 was $55,000. The loan was extended through a verbal agreement. In February 2014, the Company entered into a new loan agreement with OnDeck Capital for a note payable for $80,000. The note has 378 payments of $307, due on each business day, including interest at 45% for 18 months. The balance as of October 31, 2014 was $48,240, and was paid in full during 2015. In May 2014, the Company entered into a note payable with its CEO, Joseph Riccelli, Sr., for $50,000. The loan is used to fund operations of the Company. The loan is due on demand, including interest at 10% for 180 days. This note was extended through a verbal agreement. The loan balance as of October 31, 2015 and 2014 is $50,000. During February 2015, the Company entered into a note payable agreement with Riccelli Properties, which is wholly owned and operated by the Companys Chief Executive Officer, 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 one year and an interest rate of 10%. The loan balance as of October 31, 2015 was $49,130. |
EXCLUSIVE LICENSING AND MANUFAC
EXCLUSIVE LICENSING AND MANUFACTURING AGREEMENT | 12 Months Ended |
Oct. 31, 2015 | |
Exclusive Licensing And Manufacturing Agreement | |
EXCLUSIVE LICENSING AND MANUFACTURING AGREEMENT | 4. EXCLUSIVE LICENSING AND MANUFACTURING AGREEMENT On April 16, 2006, the Company entered into an Exclusive License and Manufacturing Agreement (the Agreement) with the Ketut Group, with an effective date of April 1, 2006, whereby the Company acquired an exclusive license to develop, use, sell, manufacture and market products related to or utilizing INSULTEX, Korean Patent Number, (0426429) or any Insultex Technology. At the behest of the Board of Directors, the Insultex trademark was chosen as the mark to identify the product utilized by Innovative since its inception, and was originally registered by Joseph Riccelli on February 17, 2005. The new trademark, intended to avoid confusion arising from the use of the old Eliotex trademark in association with a new, subsequent, different and separately-patented product, was assigned by Mr. Riccelli to the Company on April 25, 2006, with that assignment to become effective upon final approval of the Statement of Use by the United States Patent and Trademark Office. The License was awarded by the Korean inventor, an individual who is part of the Ketut Group, and the manufacturer of INSULTEX. The Company received an exclusive forty (40) year worldwide license, except for Korea and Japan, with an initial term of ten (10) years and an option to renew the License for up to three (3) successive ten (10) year terms. Additionally, the Company was granted the exclusive rights to any current or future inventions, improvements, discoveries, patent applications and letters of patent which the Ketut Group controls or may control related to INSULTEX. Furthermore, the Company has the right to grant sub-licenses to other manufacturers for the use of INSULTEX or any Insultex Technology. |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Oct. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | 5. CONCENTRATIONS Revenues from one customer were approximately 20% of the Companys revenues for the fiscal year ended October 31, 2015. Revenues from three customers were approximately 43% of the Companys revenues for the fiscal year ended October 31, 2014. Accounts receivable from four customers were approximately 75% of the Companys accounts receivable as of October 31, 2015. Two customers accounted for approximately 52% of the Companys accounts receivable as of October 31, 2014. The Company only has one supplier of INSULTEX, the special material which is manufactured within the apparel of the Company. Additionally, the Company only has one manufacturer that produces the apparel on behalf of the Company, located in Indonesia, and one manufacturer that produces house wrap on behalf of the Company in Massachusetts. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 6. INCOME TAXES In prior years the Company incurred net operating losses and, accordingly, no provision for income taxes has been recorded. In addition, no benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets. For the 2013 tax year, fiscal year end October 31, 2014, the Company had net operating loss carryforwards of approximately $2,900,000 for tax purposes. The carryforwards are available to offset taxable income of future periods and begin to expire after the Companys 2024 tax year, fiscal year end October 31, 2025. Realization of the deferred tax benefit related to the carryforward is dependent upon the Company generating sufficient taxable income in the future, against which the loss can be offset, which is not guaranteed. Deferred income taxes reflect the net tax effect of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as tax benefits of net operating loss carryforwards. The significant components of the Companys deferred tax assets and liabilities relate to the following: 2015 2014 Net operating loss carryforward $ 1,498,000 $ 986,000 Depreciation - - Net deferred tax assets before valuation allowance 1,498,000 986,000 Less: Valuation allowance (1,498,000 ) (986,000 ) Net deferred tax assets $ - $ - For financial reporting purposes, the Company has incurred losses in previous years. Based on the available objective evidence, including the Companys previous losses, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company provided for a full valuation allowance against its net deferred tax assets as of October 31, 2015 and 2014, respectively. The effective income tax rate varied from the statutory Federal tax rate as follows: 2015 2014 Federal statutory rate 34 % 34 % Effect of net operating losses (34 )% (34 )% Effective income tax rate - - The Companys effective tax rate is lower than what would be expected if the federal statutory rate were applied to income (loss) before taxes, primarily due to net operating loss carryforwards. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Oct. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | 7. COMMITMENTS The Company currently maintains two locations which are leased pursuant to oral agreements on a month-to-month basis. The Company leases offices from Riccelli Properties, which is solely owned by our Chief Executive Officer, Joseph Riccelli, Sr., for $700 per month. This lease expired in April 2015 and was not renewed. The Company leases its executive offices/warehouse space from Frank Riccelli, a stockholder and brother of our Chief Executive Officer, for $3,500 per month. For the years ended October 31, 2015 and 2014, rent expense totaled $46,200 and $50,650, respectively. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Oct. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 8. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) First Second Third Fourth 2015 Quarter Quarter Quarter Quarter Year Revenue $ 286,789 $ 216,377 $ 46,598 $ 223,136 $ 772,900 Income/(loss) from operations 2,146 66,529 269,260 (752,985 ) (415,050 ) Net income (loss) $ (15,590 ) $ (90,448 ) $ (233,958 ) $ (171,604 ) $ (511,600 ) Weighted average shares outstanding 22,640,706 23,108,564 23,723,118 $ 24,257,093 23,438,254 Basic income/(loss) per share (0.001 ) (0.004 ) (0.010 ) (0.007 ) (0.022 ) First Second Third Fourth 2014 Quarter Quarter Quarter Quarter Year Revenue $ 373,752 $ 66,670 $ 5,035 $ 325,727 $ 771,184 Income/(loss) from operations 62,964 (167,260 ) (98,437 ) (106,876 ) (309,609 ) Net income (loss) $ 34,694 $ (202,663 ) $ (123,249 ) $ (142,852 ) $ (434,070 ) Weighted average shares outstanding 19,440,281 19,776,232 20,444,578 21,908,380 20,397,432 Basic income/(loss) per share 0.002 (0.010 ) (0.006 ) (0.007 ) (0.021 ) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Oct. 31, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 9. SEGMENT INFORMATION We have organized our operations into two segments as discussed in Note 1 to the financial statements. 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 fiscal years ending October 31, 2014 and 2013: 2015 2014 Revenues: Apparel $ 357,282 $ 564,764 Housewrap 415,618 206,420 Total Revenues $ 772,900 $ 771,184 Assets: Apparel $ 2,193,494 $ 1,736,681 Housewrap 525,430 295,938 Total $ 2,718,924 $ 2,032,619 Capital Expenditures: Apparel $ 8,111 $ - Housewrap 420,000 41,843 Total $ 428,111 $ 41,843 Depreciation: Apparel $ 1,941 $ 1,813 Housewrap 7,796 2,187 Total $ 9,737 $ 4,000 |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Oct. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK | 10. COMMON STOCK During the first quarter of the fiscal year ended October 31, 2014 the Company sold 50,000 shares of stock for $.20 per share or $10,000 and converted three notes into stock at the principal of the note plus interest totaling $74,300, at $.20 per share, resulting in 371,500 shares of stock issued. During the second quarter of the fiscal year ended October 31, 2014 the Company sold 115,000 shares of stock, at $.40 per share, for $46,000, and issued 35,000 shares, at $.40 per share, for services with a fair value of $14,000 to two individuals. During the third quarter of the fiscal year ended October 31, 2014 the Company sold 1,080,680 shares of stock, at between $.40 and $.70 per share, for $632,340. The Company also issued 55,000 shares, at $.40 per share, for services with a fair value of $22,000 to two individuals, and issued 25,000 shares, at $.50 per share, for services with a fair value of $12,500 to an additional two individuals. The Company converted one note into stock at the principal of the note plus interest totaling $12,600, at $.60 per share, resulting in 20,800 shares of stock issued. During the fourth quarter of the fiscal year ended October 31, 2014 the Company sold 1,294,320 shares of stock, at between $.50 and $.80 per share, for $882,950. The Company also issued 45,000 shares, at $.50 per share, for services with a fair value of $22,500 to two individuals, and issued 20,000 shares, at $.80 per share, for services with a fair value of $16,000 to one of those individuals for services performed later during the quarter. 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. During the three month period ended July 31, 2015, the Company sold its stock to eight investors. The stock was issued for prices from $.60 - $.75. A total of 760,000 shares of common stock were sold, resulting in proceeds of $522,500. In addition, the Company issued 55,000 shares to two individuals for services performed during May and June 2015. The shares were issued for prices from $.70 - $1.25 per share or an aggregate price of $45,000. Additionally during July 2015, an individual converted accrued interest of $92,000 into 122,667 shares of common stock. 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 October 31, 2015, the Company sold its stock to four investors. The stock was issued for prices ranging from $.60-$.67 per share. A total of 168,000 shares of common stock were sold, resulting in proceeds of $102,500. In addition, the Company issued 42,000 shares to one individual for services performed during August 2015. The shares were issued at a price of $1.00 per share or an aggregate price of $42,000. 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 included 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. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Oct. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 11. RELATED PARTY TRANSACTIONS The Company has entered into various debt agreements with related parties. These agreements are classified as shareholder loans within Note 3 to the financial statements. The Company has entered into 2 verbal lease agreements as further discussed in Note 7 to the financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Oct. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 12. SUBSEQUENT EVENTS In accordance with ASC Topic 855, Subsequent Events The Company sold 579,000 shares of stock, at between $0.50 and $0.60 per share, for $314,830, to seven investors from November 1, 2014 through January 7, 2016. The Company issued 15,000 shares of stock to two directors at $0.74 per share, totaling 30,000 shares issued, for services performed. The stock was issued December 17, 2015. The machinery and equipment purchased from Ketut Jaya as described in Note 1, has arrived in the United States. |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations We operate two reportable segments: Apparel and House Wrap. Our apparel segment offers a wide variety of extreme cold weather apparel and related items. Our House Wrap segment offers our Insultex House Wrap which has an R-value of 3 and an R-value of 6 and our own seam tape. |
Basis of Accounting | Basis of Accounting |
Fiscal Year End | Fiscal Year End |
Estimates | Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Revenue Recognition | Revenue Recognition |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Estimated Uncollectable Accounts | Estimated Uncollectable Accounts |
Inventory | Inventory During the fiscal year ended October 31, 2010, the Company discontinued its hunting and swimming lines of apparel. A reserve balance of approximately $40,000 and $46,000 was recorded as of October 31, 2015 and 2014, respectively. The reserve is evaluated on a quarterly basis and adjusted accordingly. During 2013, the Company entered into an agreement with Dicks Sporting Goods in which it has consigned certain Arctic Armor products. These items were offered in select stores and through the Dicks Sporting Goods website. As of October 31, 2013, the Company had provided $42,900 of inventory to be placed in stores. This agreement resulted in revenues of $44,600 as of October 31, 2014. There were no sales of these products during 2013. At the expiration of this agreement, $68,600 of inventory was not sold by Dicks Sporting Goods and subsequently returned to the Company during its 2014 fiscal year, in accordance with the agreement. |
Deposits on Inventory | Deposits on Inventory |
Property and Equipment | Property and Equipment For financial reporting purposes, depreciation is primarily provided on the straight-line method over the estimated useful lives of depreciable assets, which range from 5 to 7 years. |
Deposits on Equipment | Deposits on Equipment |
Impairment of Long-lived Assets | Impairment of Long-lived Assets |
Income Taxes | Income Taxes Income Taxes In addition, ASC 740 clarifies the accounting for uncertainty in tax positions and requires that a company recognize in its financial statements the impact of a tax position, only if it is more likely than not of being sustained upon examination, based on the technical merits of the position. The Company recognized no material adjustments to the liability for unrecognized income tax benefits. The Companys policy regarding the classification of interest and penalties recognized in accordance with ASC 740 is to classify them as income tax expense in its financial statements, if applicable. The Company is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Company believes it is no longer subject to income tax examinations for years up to and including the year ended October 31, 2011. |
Concentration of Credit Risk | Concentration of Credit Risk |
Shipping and Handling | Shipping and Handling |
Net Income Per Common Share | Net Income Per Common Share Earnings per Share |
Stock-Based Compensation | Stock-Based Compensation Compensation - Stock Compensation |
Amendment to the Certificate of the Incorporation | Amendment to the Certificate of the Incorporation The terms of the lesser shares of Common Stock will be identical to those of the currently outstanding shares of Common Stock. This amendment and the creation of lesser shares of authorized Common Stock will not alter the current number of issued shares. The relative rights and limitations of the shares of Common Stock remained unchanged under this amendment. Holders of Common Stock have no preemptive rights to purchase or subscribe for any unissued capital stock of the Company. This amendment did not alter this limitation. |
Recent Accounting Standards Update | Recent Accounting Standards Update In August, 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements Going Concern, which requires management to evaluate whether there are conditions or events, considered in the aggregate, the raise substantial doubt about an entitys ability to continue as a going concern within one year after the date that the financial statements are issued or the date the financial statements are available to be issued. ASU 2014-15 is effective for the annual period ending after December 15, 2016. Early adoption is permitted. Management has determined that the adoption of this guidance will not have any impact on the financial statements and notes hereto. In July 2015, the FASB issued ASU 2015-11, Inventory Simplifying the Measurement of Inventory, which requires that an entity measure their inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. For public business entities, ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. It should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. Management has determined that the adoption of this guidance will not have any impact on the financial statements and notes thereto. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment summarized by major classifications | Property and equipment are summarized by major classifications as follows: 2015 2014 Equipment $ 70,830 $ 70,830 Furniture and fixtures 11,092 11,092 Leasehold improvements 4,806 4,806 Automobile 9,121 7,841 95,849 94,569 Less accumulated depreciation 44,639 38,380 Property and equipment - net $ 51,210 $ 56,189 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings | Borrowings at October 31, 2015 and 2014 consisted of the following: 2015 2014 Due to Stockholders Note Payable $8,000 - Roberta Riccelli, February 2012. Due June 17, 2012; interest is 10% for 120 days. Note was extended through a verbal agreement with no set maturity date. 5,000 5,000 Note Payable $50,000 - Joseph Riccelli, Sr., July 2012. Due January 9, 2013; interest is 10% for 120 days. Note was extended through a verbal agreement with no set maturity date. 45,000 50,000 Note Payable $20,000 - Corinthian Development, January 15, 2013. Due May 15, 2013; payable on demand; interest is 10%; Note was extended through a verbal agreement with no set maturity date. 10,000 20,000 Note Payable $100,000 - Sol & Tina Waxman Family Foundation, September 2014. Due March 31, 2015; payable on demand; interest is 10%. Note was extended through a verbal agreement with no set maturity date. 50,000 60,000 Note Payable $90,000 - Joseph Riccelli, Sr., May 2013. Due November 22, 2013; interest is 10% for 180 days. Note was extended through a verbal agreement with no set maturity date. 90,000 90,000 Note Payable $55,000 - Joseph Riccelli, Sr., September 2013. Due March 23, 2014; interest is 10% for 180 days. Note was extended through a verbal agreement with no set maturity date. 55,000 55,000 Note Payable $50,000 - Joseph Riccelli, Sr., May 2014. Due November 12, 2014; interest is 10% for 180 days. Note was extended through a verbal agreement with no set maturity date. 50,000 50,000 Note Payable $69,130 - Riccelli Properties, February 2015. Due February 26, 2016; interest is 10% annually. 49,130 - Total Due to Stockholders $ 354,130 $ 330,000 Notes Payable Note Payable - U.S. Small Business Administration. Due July 2035; payable in monthly installments of $1,820 including interest at 2.9% annum. $ 249,803 $ 338,696 Note Payable $80,000 - OnDeck Capital, February 2014. 378 payments of $307 due on each business day; interest is 45% for 18 months. - 48,240 Total Notes Payable $ 249,803 $ 386,936 Total Borrowings 603,933 716,936 Less Due to Stockholders 354,130 330,000 Less Current Portion of Notes Payable 14,657 59,407 Total Long Term Portion of Notes Payable $ 235,146 $ 327,529 |
Schedule of long-term debt maturities | Maturities of long-term debt are as follows: Year Ending Notes October 31 Stockholders Payable Amount Due 2016 $ 354,130 $ 14,657 $ 368,787 2017 - 14,808 14,808 2018 - 15,243 15,243 2019 - 15,674 15,674 2020 - 16,151 16,151 Thereafter - 173,270 173,270 Total $ 354,130 $ 249,803 $ 603,933 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax assets and liabilities | The significant components of the Companys deferred tax assets and liabilities relate to the following: 2015 2014 Net operating loss carryforward $ 1,498,000 $ 986,000 Depreciation - - Net deferred tax assets before valuation allowance 1,498,000 986,000 Less: Valuation allowance (1,498,000) (986,000) Net deferred tax assets $ - $ - |
Schedule of effective income tax rate varied from statutory federal tax rate | The effective income tax rate varied from the statutory Federal tax rate as follows: 2015 2014 Federal statutory rate 34 % 34 % Effect of net operating losses (34 )% (34 )% Effective income tax rate - - |
QUARTERLY FINANCIAL INFORMATI23
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quaterly financial information | First Second Third Fourth 2015 Quarter Quarter Quarter Quarter Year Revenue $ 286,789 $ 216,377 $ 46,598 $ 223,136 $ 772,900 Income/(loss) from operations 2,146 66,529 269,260 (752,985 ) (415,050 ) Net income (loss) $ (15,590 ) $ (90,448 ) $ (233,958 ) $ (171,604 ) $ (511,600 ) Weighted average shares outstanding 22,640,706 23,108,564 23,723,118 $ 24,257,093 23,438,254 Basic income/(loss) per share (0.001 ) (0.004 ) (0.010 ) (0.007 ) (0.022 ) First Second Third Fourth 2014 Quarter Quarter Quarter Quarter Year Revenue $ 373,752 $ 66,670 $ 5,035 $ 325,727 $ 771,184 Income/(loss) from operations 62,964 (167,260 ) (98,437 ) (106,876 ) (309,609 ) Net income (loss) $ 34,694 $ (202,663 ) $ (123,249 ) $ (142,852 ) $ (434,070 ) Weighted average shares outstanding 19,440,281 19,776,232 20,444,578 21,908,380 20,397,432 Basic income/(loss) per share 0.002 (0.010 ) (0.006 ) (0.007 ) (0.021 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of business segment information | The following tables present our business segment information for the fiscal years ending October 31, 2014 and 2013: 2015 2014 Revenues: Apparel $ 357,282 $ 564,764 Housewrap 415,618 206,420 Total Revenues $ 772,900 $ 771,184 Assets: Apparel $ 2,193,494 $ 1,736,681 Housewrap 525,430 295,938 Total $ 2,718,924 $ 2,032,619 Capital Expenditures: Apparel $ 8,111 $ - Housewrap 420,000 41,843 Total $ 428,111 $ 41,843 Depreciation: Apparel $ 1,941 $ 1,813 Housewrap 7,796 2,187 Total $ 9,737 $ 4,000 |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narraive) | Jul. 12, 2015USD ($) | Oct. 31, 2015USD ($)shares | Jul. 31, 2015USD ($) | Apr. 30, 2015USD ($) | Jan. 31, 2015USD ($) | Oct. 31, 2014USD ($)shares | Jul. 31, 2014USD ($) | Apr. 30, 2014USD ($) | Jan. 31, 2014USD ($) | Oct. 31, 2015USD ($)Nshares | Oct. 31, 2014USD ($)shares | Oct. 02, 2014shares | Oct. 31, 2013USD ($) |
Number of reportable segments | N | 2 | ||||||||||||
Number of days for return policy | 5 days | ||||||||||||
Return products from customers | $ 19,036 | $ 1,971 | |||||||||||
Inventory valuation reserves | $ 40,000 | $ 46,000 | 40,000 | 46,000 | |||||||||
Revenue | 223,136 | $ 46,598 | $ 216,377 | $ 286,789 | 325,727 | $ 5,035 | $ 66,670 | $ 373,752 | 772,900 | $ 771,184 | |||
Deposits on inventory | 78,320 | 78,320 | |||||||||||
Purchase price machinery and equipment | $ 420,000 | ||||||||||||
Description of purchase price payment terms | The first installment of $300,000 is to be made at the execution of the agreement. The second installment of $200,000 is to be made when the machinery and equipment is ready to be shipped to the United States. The third installment of $100,000 is to be made once the machinery and equipment is producing INSULTEX, and the fourth and final installment of $100,000 is to made after the first commercial production run of INSULTEX is completed. | ||||||||||||
Uninsured cash balances | $ 905,770 | $ 738,681 | $ 905,770 | $ 738,681 | |||||||||
Shipping and handling costs | $ 38,727 | $ 29,568 | |||||||||||
Common stock share authorized | shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 500,000,000 | ||||||||
Preferred stock share authorized | shares | 25,000,000 | 25,000,000 | 100,000,000 | ||||||||||
Common stock share issued | shares | 24,371,310 | 22,438,043 | 24,371,310 | 22,438,043 | 21,638,043 | ||||||||
Common stock share outstanding | shares | 24,371,310 | 22,438,043 | 24,371,310 | 22,438,043 | 21,638,043 | ||||||||
Minimum [Member] | |||||||||||||
Estimated useful lives of property and equipment | 5 years | ||||||||||||
Maximum [Member] | |||||||||||||
Estimated useful lives of property and equipment | 7 years | ||||||||||||
Ketut Jaya [Member] | |||||||||||||
Purchase price machinery and equipment | $ 700,000 | ||||||||||||
Hunting & Swimming Lines of Apparel [Member] | |||||||||||||
Inventory valuation reserves | $ 40,000 | $ 46,000 | $ 40,000 | $ 46,000 | |||||||||
Arctic Armor Products [Member] | Dick Sporting Goods [Member] | |||||||||||||
Return products from customers | 68,600 | ||||||||||||
Other inventory placed in stores | $ 42,900 | ||||||||||||
Revenue | $ 44,600 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Oct. 31, 2015 | Oct. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | $ 95,849 | $ 94,569 |
Less accumulated depreciation | 44,639 | 38,380 |
Property and equipment - net | 51,200 | 56,189 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 70,830 | 70,830 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 11,092 | 11,092 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 4,806 | 4,806 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | $ 9,121 | $ 7,841 |
PROPERTY AND EQUIPMENT (Detai27
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 9,737 | $ 4,000 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2005 | |
Total Notes Payable | $ 249,803 | $ 386,936 | |
Total Borrowings | 603,933 | 716,936 | |
Less Due to Stockholders | 354,130 | 330,000 | |
Less Current Portion of Notes Payable | 14,657 | 59,407 | |
Total Long Term Portion of Notes Payable | $ 235,146 | 327,529 | |
U.S. Small Business Administration [Member] | 2.9% Note Payable Due July 13, 2035 [Member] | |||
Face amount | $ 280,100 | ||
Description of maturity extended | Due July 2035 | ||
Periodic installment | $ 1,820 | ||
Frequency of periodic payment | Monthly | ||
Total Notes Payable | $ 249,803 | 338,696 | |
OnDeck Capital [Member] | 45% Note Payable Due February 2014 [Member] | |||
Face amount | $ 80,000 | ||
Maturity term | 18 months | ||
Periodic installment | $ 307 | ||
Payment terms | 378 payments of $307 due on each business day | ||
Total Notes Payable | 48,240 | ||
Roberta Riccelli [Member] | 10% Note Payable Due June 17, 2012 [Member] | |||
Face amount | $ 8,000 | ||
Issuance date | 2012-02 | ||
Maturity term | 120 days | ||
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date. | ||
Less Due to Stockholders | $ 5,000 | 5,000 | |
Joseph Riccelli, Sr [Member} | 10% Note Payable Due January 9, 2013 [Member] | |||
Face amount | $ 50,000 | ||
Issuance date | 2012-07 | ||
Maturity term | 120 days | ||
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date. | ||
Less Due to Stockholders | $ 45,000 | 50,000 | |
Joseph Riccelli, Sr [Member} | 10% Note Payable Due November 22, 2013 [Member] | |||
Face amount | $ 90,000 | ||
Issuance date | 2013-05 | ||
Maturity term | 180 days | ||
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date. | ||
Less Due to Stockholders | $ 90,000 | 90,000 | |
Joseph Riccelli, Sr [Member} | 10% Note Payable Due March 23, 2014 [Member] | |||
Face amount | $ 55,000 | ||
Issuance date | 2013-09 | ||
Maturity term | 180 days | ||
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date. | ||
Less Due to Stockholders | $ 55,000 | 55,000 | |
Joseph Riccelli, Sr [Member} | 10% Note Payable Due November 12, 2014 [Member] | |||
Face amount | $ 50,000 | ||
Issuance date | 2014-05 | ||
Maturity term | 180 days | ||
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date. | ||
Less Due to Stockholders | $ 50,000 | $ 50,000 | |
Joseph Riccelli, Sr [Member} | Riccelli Properties [Member] | 10% Note Payable Due February 26, 2016 [Member] | |||
Face amount | $ 69,130 | ||
Issuance date | 2015-02 | ||
Maturity term | 1 year | ||
Less Due to Stockholders | $ 49,130 | ||
Corinthian Development [Member] | 10% Note Payable Due May 15, 2013 [Member] | |||
Face amount | $ 20,000 | ||
Issuance date | 2013-01 | ||
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date. | ||
Less Due to Stockholders | $ 10,000 | $ 20,000 | |
Sol & Tina Waxman Family Foundation [Member] | 10% Note Payable Due March 31, 2015 [Member] | |||
Face amount | $ 100,000 | ||
Issuance date | 2014-09 | ||
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date. | ||
Less Due to Stockholders | $ 50,000 | $ 60,000 |
BORROWINGS (Details 1)
BORROWINGS (Details 1) | Oct. 31, 2015USD ($) |
Short-term Debt [Line Items] | |
2,016 | $ 368,787 |
2,017 | 14,808 |
2,018 | 15,243 |
2,019 | 15,674 |
2,020 | 16,151 |
Thereafter | 173,270 |
Total | 603,933 |
Notes Payable to Shareholders [Member] | |
Short-term Debt [Line Items] | |
2,016 | $ 354,130 |
2,017 | |
2,018 | |
2,019 | |
2,020 | |
Thereafter | |
Total | $ 354,130 |
Notes Payable to Other [Member] | |
Short-term Debt [Line Items] | |
2,016 | 14,657 |
2,017 | 14,808 |
2,018 | 15,243 |
2,019 | 15,674 |
2,020 | 16,151 |
Thereafter | 173,270 |
Total | $ 249,803 |
BORROWINGS (Details Narrative)
BORROWINGS (Details Narrative) - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Jan. 31, 2006 | Jul. 31, 2005 | |
2.9% Note Payable Due July 13, 2035 [Member] | U.S. Small Business Administration [Member] | |||
Face amount | $ 280,100 | ||
Revised amended face amount | $ 430,500 | ||
Periodic installment | $ 1,820 | ||
Frequency of periodic payment | Monthly | ||
10% Note Payable Due March 31, 2015 [Member] | Sol & Tina Waxman Family Foundation [Member] | |||
Face amount | $ 100,000 | ||
Number of shares collateral | 250,000 | ||
Beneficial conversion feature | $ 60,000 | ||
Repayment of principal debt amount | 40,000 | ||
Repayment of interest debt amount | 10,000 | ||
10% Note Payable Due February 26, 2016 [Member] | Riccelli Properties [Member] | Joseph Riccelli, Sr [Member} | |||
Face amount | $ 69,130 | ||
Maturity term | 1 year |
EXCLUSIVE LICENSING AND MANUF31
EXCLUSIVE LICENSING AND MANUFACTURING AGREEMENT (Details Narrative) - Exclusive Licensing & Manufacturing Agreement [Member] - Ketut Jaya [Member] | 12 Months Ended |
Oct. 31, 2015 | |
Description of agreement | Exclusive license to develop, use, sell, manufacture and market products related to or utilizing INSULTEX, Korean Patent Number, (0426429) or any Insultex Technology. |
Total licence term worldwide license, except for Korea and Japan | 40 years |
Initial licence term | 10 years |
Description of licence renewal option | An option to renew the License for up to three (3) successive ten (10) year terms. |
CONCENTRATIONS (Details Narrati
CONCENTRATIONS (Details Narrative) - N | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
INSULTEX [Member] | ||
Concentration Risk [Line Items] | ||
Number of supplier | 1 | |
Revenues [Member] | Customer [Member] | ||
Concentration Risk [Line Items] | ||
Number of customers | 1 | 3 |
Concentration risk, percentage | 20.00% | 43.00% |
Accounts Receivable [Member] | Customer [Member] | ||
Concentration Risk [Line Items] | ||
Number of customers | 4 | 2 |
Concentration risk, percentage | 75.00% | 52.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Oct. 31, 2015 | Oct. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforward | $ 1,498,000 | $ 986,000 |
Depreciation | ||
Net deferred tax assets before valuation allowance | $ 1,498,000 | $ 986,000 |
Less: Valuation allowance | $ (1,498,000) | $ (986,000) |
Net deferred tax assets |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | 34.00% | 34.00% |
Effect of net operating losses | (34.00%) | (34.00%) |
Effective income tax rate |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Oct. 31, 2015USD ($) | |
Income Tax Disclosure [Abstract] | |
Net operating loss carryforwards | $ 2,900,000 |
Expiration date | Oct. 31, 2025 |
COMMITMENTS (Details Narrative)
COMMITMENTS (Details Narrative) | 12 Months Ended | |
Oct. 31, 2015USD ($)N | Oct. 31, 2014USD ($) | |
Number of leases properties | N | 2 | |
Rent expense, per month | $ 46,200 | $ 50,650 |
Frank Riccelli [Member] | ||
Rent expense, per month | 3,500 | |
Riccelli Properties [Member] | Joseph Riccelli, Sr [Member} | ||
Rent expense, per month | $ 700 |
QUARTERLY FINANCIAL INFORMATI37
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenue | $ 223,136 | $ 46,598 | $ 216,377 | $ 286,789 | $ 325,727 | $ 5,035 | $ 66,670 | $ 373,752 | $ 772,900 | $ 771,184 |
Income/(loss) from operations | (752,985) | 269,260 | 66,529 | 2,146 | (106,876) | (98,437) | (167,260) | 62,964 | (415,050) | (309,609) |
Net income (loss) | $ (171,604) | $ (233,958) | $ (90,448) | $ (15,590) | $ (142,852) | $ (123,249) | $ (202,663) | $ 34,694 | $ (511,600) | $ (434,070) |
Weighted average shares outstanding (in shares) | 24,257,093 | 23,723,118 | 23,108,564 | 22,640,706 | 21,908,380 | 20,444,578 | 19,776,232 | 19,440,281 | 23,438,254 | 20,397,432 |
Basic income/(loss) per share (in dollars per share) | $ (0.007) | $ (0.01) | $ (0.004) | $ (0.001) | $ (0.007) | $ (0.006) | $ (0.01) | $ 0.002 | $ (0.022) | $ (0.021) |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Segment Reporting Information [Line Items] | ||||||||||
Total Revenues | $ 223,136 | $ 46,598 | $ 216,377 | $ 286,789 | $ 325,727 | $ 5,035 | $ 66,670 | $ 373,752 | $ 772,900 | $ 771,184 |
Assets | 2,718,924 | 2,032,619 | 2,718,924 | 2,032,619 | ||||||
Capital Expenditures | 428,111 | 41,843 | ||||||||
Depreciation | 9,737 | 4,000 | ||||||||
Apparel Segment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total Revenues | 357,282 | 564,764 | ||||||||
Assets | 2,193,494 | 1,736,681 | 2,193,494 | $ 1,736,681 | ||||||
Capital Expenditures | 8,111 | |||||||||
Depreciation | 1,941 | $ 1,813 | ||||||||
Housewrap Segment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total Revenues | 415,618 | 206,420 | ||||||||
Assets | $ 525,430 | $ 295,938 | 525,430 | 295,938 | ||||||
Capital Expenditures | 420,000 | 41,843 | ||||||||
Depreciation | $ 7,796 | $ 2,187 |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) | 12 Months Ended |
Oct. 31, 2015N | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - USD ($) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2015 | Feb. 28, 2015 | Jun. 30, 2015 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Number of shares issued during the period | 1,294,320 | 1,080,680 | 115,000 | 50,000 | |||||||||
Value of shares issued during the period | $ 882,950 | $ 632,340 | $ 46,000 | $ 10,000 | $ 1,189,450 | $ 1,571,290 | |||||||
Share price (in dollars per share) | $ 1.20 | $ 0.60 | $ 0.40 | $ 0.20 | |||||||||
Number of shares issued for services | 10,000 | ||||||||||||
Value of shares issued for services | $ 12,000 | 99,000 | 87,000 | ||||||||||
Value of shares issued for converted accrued interest | $ 92,000 | $ 12,600 | $ 74,300 | $ 92,000 | $ 86,900 | ||||||||
Number of shares issued for converted accrued interest | 122,667 | 20,800 | 371,500 | ||||||||||
Minimum [Member] | |||||||||||||
Share price (in dollars per share) | $ 0.50 | $ 0.40 | $ 0.50 | ||||||||||
Maximum [Member] | |||||||||||||
Share price (in dollars per share) | 0.80 | 0.70 | 0.80 | ||||||||||
Five Investors [Member] | |||||||||||||
Number of shares issued during the period | 283,000 | ||||||||||||
Value of shares issued during the period | $ 203,750 | ||||||||||||
Five Investors [Member] | Minimum [Member] | |||||||||||||
Share price (in dollars per share) | $ 0.60 | ||||||||||||
Five Investors [Member] | Maximum [Member] | |||||||||||||
Share price (in dollars per share) | $ 0.80 | ||||||||||||
Eleven Investors [Member] | |||||||||||||
Number of shares issued during the period | 492,600 | ||||||||||||
Value of shares issued during the period | $ 360,700 | ||||||||||||
Eleven Investors [Member] | Minimum [Member] | |||||||||||||
Share price (in dollars per share) | $ 0.60 | ||||||||||||
Eleven Investors [Member] | Maximum [Member] | |||||||||||||
Share price (in dollars per share) | $ 0.80 | ||||||||||||
Eight Investors [Member] | |||||||||||||
Number of shares issued during the period | 760,000 | ||||||||||||
Value of shares issued during the period | $ 522,500 | ||||||||||||
Eight Investors [Member] | Minimum [Member] | |||||||||||||
Share price (in dollars per share) | $ 0.60 | ||||||||||||
Eight Investors [Member] | Maximum [Member] | |||||||||||||
Share price (in dollars per share) | $ 0.75 | ||||||||||||
Two Individuals [Member] | |||||||||||||
Share price (in dollars per share) | $ 0.50 | $ 0.40 | $ 0.40 | 0.50 | |||||||||
Number of shares issued for services | 55,000 | 45,000 | 55,000 | 35,000 | |||||||||
Value of shares issued for services | $ 45,000 | $ 22,500 | $ 22,000 | $ 14,000 | |||||||||
Two Individuals [Member] | Minimum [Member] | |||||||||||||
Share price (in dollars per share) | $ 0.70 | ||||||||||||
Two Individuals [Member] | Maximum [Member] | |||||||||||||
Share price (in dollars per share) | $ 1.25 | ||||||||||||
Four Investors [Member] | |||||||||||||
Number of shares issued during the period | 168,000 | ||||||||||||
Value of shares issued during the period | $ 102,500 | ||||||||||||
Four Investors [Member] | Minimum [Member] | |||||||||||||
Share price (in dollars per share) | $ 0.60 | $ 0.60 | |||||||||||
Four Investors [Member] | Maximum [Member] | |||||||||||||
Share price (in dollars per share) | $ 0.67 | $ 0.67 | |||||||||||
One Individuals [Member] | |||||||||||||
Share price (in dollars per share) | $ 1 | $ 0.80 | $ 0.80 | ||||||||||
Number of shares issued for services | 42,000 | 20,000 | |||||||||||
Value of shares issued for services | $ 42,000 | $ 16,000 | |||||||||||
Additional Two Individuals [Member] | |||||||||||||
Share price (in dollars per share) | $ 0.50 | ||||||||||||
Number of shares issued for services | 25,000 | ||||||||||||
Value of shares issued for services | $ 12,500 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Dec. 17, 2015 | Feb. 28, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Jan. 07, 2016 |
Number of shares issued during the period | 1,294,320 | 1,080,680 | 115,000 | 50,000 | |||||
Number of shares issued for services | 10,000 | ||||||||
Value of shares issued during the period | $ 882,950 | $ 632,340 | $ 46,000 | $ 10,000 | $ 1,189,450 | $ 1,571,290 | |||
Subsequent Event [Member] | |||||||||
Number of shares issued for services | 30,000 | ||||||||
Subsequent Event [Member] | Seven Investors [Member] | |||||||||
Number of shares issued during the period | 579,000 | ||||||||
Value of shares issued during the period | $ 314,830 | ||||||||
Subsequent Event [Member] | Two Directors [Member] | |||||||||
Number of shares issued during the period | 15,000 | ||||||||
Share price per share (in dollars per share) | $ 0.74 | ||||||||
Subsequent Event [Member] | Minimum [Member] | Seven Investors [Member] | |||||||||
Share price per share (in dollars per share) | $ 0.50 | ||||||||
Subsequent Event [Member] | Maximum [Member] | Seven Investors [Member] | |||||||||
Share price per share (in dollars per share) | $ 0.60 |