Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 30, 2018 | Jun. 06, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | INNOVATIVE DESIGNS INC | |
Entity Central Index Key | 1,190,370 | |
Document Type | 10-Q | |
Trading Symbol | IVDN | |
Document Period End Date | Apr. 30, 2018 | |
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 Common Stock, Shares Outstanding | 27,234,560 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 |
CONDENSED BALANCE SHEETS (Unaud
CONDENSED BALANCE SHEETS (Unaudited) - USD ($) | Apr. 30, 2018 | Oct. 31, 2017 |
CURRENT ASSETS | ||
Cash | $ 140,066 | $ 214,871 |
Accounts receivable - net of allowance for doubtful accounts of $8,026 and $0 as of April 30, 2018 and October 31, 2017, respectively | 23,805 | |
Inventory - net of obsolete inventory reserve of $51,000 | 797,223 | 729,845 |
Inventory on consignment | 1,625 | 1,625 |
Deposits on inventory | 57,330 | 70,000 |
Prepaid expenses | 14,971 | 14,653 |
Total current assets | 1,011,215 | 1,054,799 |
PROPERTY AND EQUIPMENT - NET | 147,364 | 160,862 |
OTHER ASSETS | ||
Advance to employees | 8,200 | 4,000 |
Deposits on equipment | 617,000 | 617,000 |
Total other assets | 625,200 | 621,000 |
TOTAL ASSETS | 1,783,779 | 1,836,661 |
CURRENT LIABILITIES | ||
Accounts payable | 168,273 | 129,278 |
Current portion of notes payable | 18,096 | 18,096 |
Accrued interest expense | 45,039 | 44,184 |
Due to shareholders | 98,850 | 118,500 |
Accrued expenses | 19,190 | 25,102 |
Total current liabilities | 349,448 | 335,160 |
Long-term portion of notes payable | 109,904 | 119,262 |
TOTAL LIABILITIES | 459,352 | 454,422 |
STOCKHOLDERS' EQUITY | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized, and 27,204,560 and 26,392,310 issued and outstanding as of April 30, 2018 and October 31, 2017 | 2,720 | 2,639 |
Additional paid-in capital | 9,971,791 | 9,725,412 |
Accumulated deficit | (8,650,084) | (8,345,812) |
Total stockholders' equity | 1,324,427 | 1,382,239 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,783,779 | $ 1,836,661 |
CONDENSED BALANCE SHEETS (Unau3
CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Apr. 30, 2018 | Oct. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 8,026 | $ 0 |
Inventory obsolete reserve | $ 51,000 | $ 51,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 27,204,560 | 26,392,310 |
Common stock, outstanding | 27,204,560 | 26,392,310 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Income Statement [Abstract] | ||||
REVENUES - NET | $ 17,163 | $ 39,162 | $ 133,366 | $ 208,372 |
OPERATING EXPENSES: | ||||
Cost of sales | 18,080 | 25,568 | 82,462 | 106,074 |
Selling, general and administrative expenses | 154,888 | 170,741 | 345,699 | 378,212 |
Total Operating Expenses | 172,968 | 196,309 | 428,161 | 484,286 |
LOSS FROM OPERATIONS | (155,805) | (157,147) | (294,795) | (275,914) |
OTHER EXPENSE | ||||
Miscellaneous expense | 487 | 1,034 | 3,424 | |
Interest expense | 1,731 | 3,604 | 8,443 | 10,653 |
Total other expense | 2,218 | 3,604 | 9,477 | 14,077 |
NET LOSS | $ (158,023) | $ (160,751) | $ (304,272) | $ (289,991) |
PER SHARE INFORMATION | ||||
Net Loss Per Common Share (in dollars per share) | $ (0.006) | $ (0.006) | $ (0.011) | $ (0.011) |
Weighted Average Number of Common Shares Outstanding (in shares) | 27,033,872 | 25,396,265 | 26,880,559 | 25,383,288 |
CONDENSED STATEMENTS OF CHANGES
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at beginning at Oct. 31, 2016 | $ 2,537 | $ 9,455,674 | $ (7,712,757) | $ 1,745,454 |
Balance at beginning (in shares) at Oct. 31, 2016 | 25,370,310 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued for services | $ 30 | 97,670 | 97,700 | |
Shares issued for services (in shares) | 300,000 | |||
Sale of stock | $ 72 | 172,068 | 172,140 | |
Sale of stock (in shares) | 722,000 | |||
Net loss | (633,055) | (633,055) | ||
Balance at end at Oct. 31, 2017 | $ 2,639 | 9,725,412 | (8,345,812) | 1,382,239 |
Balance at end (in shares) at Oct. 31, 2017 | 26,392,310 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued for services | $ 10 | 29,890 | 29,900 | |
Shares issued for services (in shares) | 105,000 | |||
Sale of stock | $ 71 | 216,489 | 216,560 | |
Sale of stock (in shares) | 707,250 | |||
Net loss | (304,272) | (304,272) | ||
Balance at end at Apr. 30, 2018 | $ 2,720 | $ 9,971,791 | $ (8,650,084) | $ 1,324,427 |
Balance at end (in shares) at Apr. 30, 2018 | 27,204,560 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (304,272) | $ (289,991) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Allowance for doubtful accounts | 8,026 | |
Common stock issued for services | 29,900 | 7,500 |
Depreciation | 17,756 | 15,293 |
(Increase) decrease from changes in: | ||
Accounts receivable | 15,779 | 39,467 |
Inventory | (67,378) | 112,778 |
Deposits on inventory | 12,670 | |
Prepaid expenses | (318) | (3,584) |
Advance to employees | (4,200) | |
Increase (decrease) from changes in: | ||
Accounts payable | 38,995 | 37,818 |
Accrued interest expense | 855 | 2,600 |
Accrued expenses | (5,912) | (27,790) |
Net cash used in operating activities | (258,099) | (105,909) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (4,258) | (10,000) |
Net cash used in investing activities | (4,258) | (10,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of stock | 216,560 | |
Payments on shareholder advances | (19,650) | (26,900) |
Payments on notes payable | (9,358) | (17,123) |
Net cash provided by (used in) financing activities | 187,552 | (44,023) |
Net decrease in cash | (74,805) | (159,932) |
CASH, BEGINNING OF YEAR | 214,871 | 502,777 |
CASH, END OF THE PERIOD | 140,066 | 342,845 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 7,588 | $ 8,053 |
ACCOUNTING CHANGES AND ERROR CO
ACCOUNTING CHANGES AND ERROR CORRECTIONS | 6 Months Ended |
Apr. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
ACCOUNTING CHANGES AND ERROR CORRECTIONS | 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, 2018, 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, 2018 and 2017. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Apr. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 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 Innovative Designs, Inc.’s annual report on Form 10-K for the fiscal year ended October 31, 2017. The results of operations for the three and six month periods ended April 30, 2018 and 2017 are not necessarily indicative of operating results for the full year. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 6 Months Ended |
Apr. 30, 2018 | |
Accounts Receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 3. ACCOUNTS RECEIVABLE Management evaluates its receivables on a quarterly basis to assess the validity of remaining receivables. During the quarter ended April 30, 2018 management has determined that there is significant doubt regarding the remaining receivable balance of $8,026 and as such applied a 100 percent allowance on the receivable balance. No allowance was deemed necessary for the fiscal year ended October 31, 2017. |
INVENTORY
INVENTORY | 6 Months Ended |
Apr. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 4. INVENTORY Inventory consists principally of purchased apparel inventory and House Wrap which is manufactured by the Company. Inventory is stated at the lower of cost or net realizable value on a first-in, first-out basis. Innovative Designs, Inc. (the “Company”) has decided to discontinue the selling of its hunting and swimming line of apparel. The Company has booked a reserve against this inventory at April 30, 2018 and October 31, 2017 of $51,000. 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, 2018 | |
PER SHARE INFORMATION | |
EARNINGS PER SHARE | NOTE 5. 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” |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 6. INCOME TAXES The Company accounts for income taxes in accordance with ASC Topic 740 “Income Taxes” 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, 2018 | |
Shipping And Handling Costs | |
SHIPPING AND HANDLING COSTS | 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 associated with customer orders was approximately $9,000 and $11,000 for the six month periods ended April 30, 2018 and 2017, respectively. |
COMMON STOCK
COMMON STOCK | 6 Months Ended |
Apr. 30, 2018 | |
Equity [Abstract] | |
COMMON STOCK | NOTE 8. COMMON STOCK During the six-month period ended April 30, 2018, the Company sold 707,250 shares of common stock to three investors for total proceeds of $216,560. The stock was issued for prices from $0.25 - $0.32 per share. In addition, the Company issued 105,000 shares to two individuals for services performed during the period. The shares issued were valued at $0.18 and $0.40 per share for a total price of $29,900. 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 six-month period ended April 30, 2017, the Company issued 30,000 shares to one director for services performed during the period. The shares issued were valued at $0.25 per share for a price of $7,500. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because these transactions did not involve a public offering and there was no general solicitation or general advertising involved in these transactions. We placed legends on the stock certificates stating that the securities were not registered under the Securities Act and set forth the restrictions on their transferability and sale. |
DEPOSITS ON EQUIPMENT
DEPOSITS ON EQUIPMENT | 6 Months Ended |
Apr. 30, 2018 | |
Deposit Assets [Abstract] | |
DEPOSITS ON EQUIPMENT | NOTE 9. DEPOSITS ON EQUIPMENT On July 12, 2015 the Company reached an agreement with Ketut Jaya to purchase the machinery and equipment utilized to produce the INSULTEX material. The purchase price is $700,000 which was to be paid in four installments. The first installment of $300,000 was to be paid at the execution of the agreement. The second installment of $200,000 was to be paid when the machinery and equipment is ready to be shipped to the United States. The third installment of $100,000 is to be paid once the machinery and equipment is producing INSULTEX, and the fourth and final installment of $100,000 is to be made after the first commercial production run of INSULTEX is completed. As of April 30, 2018, the Company has made payments of $500,000 in accordance with the agreement and made a $100,000 pre-payment as the machine is not yet producing INSULTEX. Additionally, the Company has incurred $17,000 of additional expenses related to shipping, site improvements and installation of the equipment. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Apr. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 10. 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 period ended April 30, 2018 and 2017: 2018 2017 Revenues: Apparel $ 96,172 $ 157,861 House Wrap 37,194 50,511 Total Revenues $ 133,366 $ 208,372 Assets: Apparel $ 556,343 $ 776,593 House Wrap 1,227,436 1,238,063 Total $ 1,783,779 $ 2,014,656 Capital Expenditures: Apparel $ 4,258 $ — Housewrap — $ 10,000 Total $ 4,258 $ 10,000 Depreciation: Apparel $ 6,039 $ 1,640 House Wrap 11,717 13,653 Total $ 17,756 $ 15,293 |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 6 Months Ended |
Apr. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | NOTE 11. LEGAL PROCEEDINGS On November 4, 2016, the Federal Trade Commission (FTC) filed a complaint against the Company in the U.S. District Court Western District of Pennsylvania, number 16-1669. In the complaint, the FTC alleges, that, among other matters, the Company does not have substantiation of claims made by the Company regarding the R value and energy efficiency of its INSULTEX House Wrap products. The complaint asks as redress of rescission of revenue the Company received from the sale of House Wrap and a permanent injunction. The parties are currently in the expert discovery phase. Expert depositions were completed in June 2018. The Company strongly denies the allegation and intends to vigorously defend itself. It is the Company’s belief that the complaint is based on improper testing of the INSULTEX products using the wrong type of testing equipment. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Apr. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12. SUBSEQUENT EVENTS The Company has evaluated subsequent events in accordance with ASC Topic 855, “ Subsequent Events In May 2018, the Company sold 25,000 shares to an individual for $5,000. The shares were valued at $0.20 per share. The Company issued 5,000 shares to one individual for services valued at $1,000. In May 2018, the Company entered into a loan agreement with an individual for $50,000. The loan and $5,000 in interest will be paid on or before June 1, 2019. The individual can convert all principal and interest to shares of Company stock at $0.20 per share. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of business segment information | The following tables present our business segment information for the six month period ended April 30, 2018 and 2017: 2018 2017 Revenues: Apparel $ 96,172 $ 157,861 House Wrap 37,194 50,511 Total Revenues $ 133,366 $ 208,372 Assets: Apparel $ 556,343 $ 776,593 House Wrap 1,227,436 1,238,063 Total $ 1,783,779 $ 2,014,656 Capital Expenditures: Apparel $ 4,258 $ — Housewrap — $ 10,000 Total $ 4,258 $ 10,000 Depreciation: Apparel $ 6,039 $ 1,640 House Wrap 11,717 13,653 Total $ 17,756 $ 15,293 |
ACCOUNTS RECEIVABLE (Details Na
ACCOUNTS RECEIVABLE (Details Narrative) - USD ($) | Apr. 30, 2018 | Oct. 31, 2017 |
Accounts Receivable, Net [Abstract] | ||
Bad debts | $ 8,026 | $ 0 |
INVENTORY (Details Narrative)
INVENTORY (Details Narrative) - USD ($) | Apr. 30, 2018 | Oct. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves | $ 51,000 | $ 51,000 |
SHIPPING AND HANDLING COSTS (De
SHIPPING AND HANDLING COSTS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Shipping And Handling Costs | ||||
Shipping and handling costs | $ 18,080 | $ 25,568 | $ 82,462 | $ 106,074 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | Oct. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Value of shares issued during the period | $ 216,560 | $ 172,140 | |
Value of shares issued for services | $ 29,900 | $ 97,700 | |
Three Individual [Member] | |||
Related Party Transaction [Line Items] | |||
Number of shares issued during the period | 707,250 | ||
Value of shares issued during the period | $ 216,560 | ||
Three Individual [Member] | Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Share price (in dollars per share) | $ 0.32 | ||
Three Individual [Member] | Minimum [Member] | |||
Related Party Transaction [Line Items] | |||
Share price (in dollars per share) | $ 0.25 | ||
Two Individual [Member] | |||
Related Party Transaction [Line Items] | |||
Number of shares issued for services (in shares) | 105,000 | ||
Value of shares issued for services | $ 29,900 | ||
Two Individual [Member] | Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Share price for shares issued for services (in dollars per share) | $ 0.40 | ||
Two Individual [Member] | Minimum [Member] | |||
Related Party Transaction [Line Items] | |||
Share price for shares issued for services (in dollars per share) | $ 0.18 | ||
One Director [Member] | |||
Related Party Transaction [Line Items] | |||
Number of shares issued during the period | 30,000 | ||
Value of shares issued during the period | $ 7,500 | ||
Share price (in dollars per share) | $ 0.25 |
DEPOSITS ON EQUIPMENT (Details
DEPOSITS ON EQUIPMENT (Details Narrative) - USD ($) | Jul. 12, 2015 | Apr. 30, 2018 |
Deposit Assets [Abstract] | ||
Description of assets contract | The purchase price is $700,000 and to be made in four installments. 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. | |
Purchase price of equipment | $ 700,000 | |
First installment for equipment | 300,000 | |
Second installment for equipment | 200,000 | |
Third installment for equipment | 100,000 | |
Fourth installment for equipment | $ 100,000 | |
Deposits on equipment | $ 500,000 | |
Advanced payment on machine | 100,000 | |
Shipping, site improvements and installation of the equipment expenses | $ 17,000 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | Oct. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Total Revenues | $ 17,163 | $ 39,162 | $ 133,366 | $ 208,372 | |
Assets | 1,783,779 | 2,014,656 | 1,783,779 | 2,014,656 | $ 1,836,661 |
Capital Expenditures | 4,258 | 10,000 | |||
Depreciation | 17,756 | 15,293 | |||
Apparel Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenues | 96,172 | 157,861 | |||
Assets | 556,343 | 776,593 | 556,343 | 776,593 | |
Capital Expenditures | 4,258 | ||||
Depreciation | 6,039 | 1,640 | |||
House Wrap Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenues | 37,194 | 50,511 | |||
Assets | $ 1,227,436 | $ 1,238,063 | 1,227,436 | 1,238,063 | |
Capital Expenditures | 10,000 | ||||
Depreciation | $ 11,717 | $ 13,653 |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) | 6 Months Ended |
Apr. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended |
May 31, 2018 | Apr. 30, 2018 | Oct. 31, 2017 | |
Sale of stock | $ 216,560 | $ 172,140 | |
Value of shares issued for services | $ 29,900 | $ 97,700 | |
Subsequent Event [Member] | Individual [Member] | |||
Sale of stock | $ 25,000 | ||
Number stock sold (in shares) | 5,000 | ||
Share price (in dollars per share) | $ 0.20 | ||
Subsequent Event [Member] | Individual [Member] | Loan Agreement [Member] | |||
Face amount | $ 50,000 | ||
Repayment of debt amount | $ 5,000 | ||
Conversion price | $ 0.20 | ||
Subsequent Event [Member] | One Individual [Member] | |||
Number of shares issued for services (in shares) | 5,000 | ||
Value of shares issued for services | $ 1,000 |