Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 30, 2019 | Jun. 13, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | INNOVATIVE DESIGNS INC | |
Entity Central Index Key | 0001190370 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 000-51791 | |
Entity Common Stock, Shares Outstanding | 29,009,560 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 |
CONDENSED BALANCE SHEETS (Unaud
CONDENSED BALANCE SHEETS (Unaudited) - USD ($) | Apr. 30, 2019 | Oct. 31, 2018 |
CURRENT ASSETS | ||
Cash | $ 44,358 | $ 112,203 |
Accounts receivable - net of allowance for doubtful accounts of $10,570 and $10,354 as of April 30, 2019 and October 31, 2018, respectively | 857 | 13,455 |
Inventory - net of obsolete inventory reserve of $75,468 as of April 30, 2019 and October 31, 2018, respectively | 666,408 | 721,262 |
Inventory on consignment | 1,625 | 1,625 |
Deposits on inventory | 57,330 | 57,330 |
Current portion of right of use asset | 39,482 | 40,584 |
Prepaid expenses | 10,018 | 11,669 |
Total current assets | 820,078 | 958,128 |
PROPERTY AND EQUIPMENT - NET | 115,149 | 131,532 |
OTHER ASSETS | ||
Advance to employees | 8,200 | 8,200 |
Assets held for sale | 600,000 | 617,000 |
Total other assets | 608,200 | 625,200 |
RIGHT OF USE ASSET, NET OF CURRENT PORTION | 86,900 | 106,368 |
TOTAL ASSETS | 1,630,327 | 1,821,228 |
CURRENT LIABILITIES | ||
Accounts payable | 343,095 | 194,963 |
Current portion of notes payable | 18,628 | 18,628 |
Accrued interest expense | 26,121 | 22,885 |
Due to shareholders | 131,350 | 145,350 |
Current portion of right of use lease liability | 39,482 | 40,584 |
Accrued expenses | 10,916 | 10,775 |
Total current liabilities | 569,592 | 433,185 |
LONG-TERM PORTION OF NOTES PAYABLE | 90,720 | 100,858 |
RIGHT OF USE LEASE LIABILITY, NET OF CURRENT PORTION | 86,900 | 106,368 |
TOTAL LIABILITIES | 747,212 | 640,411 |
STOCKHOLDERS' EQUITY | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized, and 28,334,560 and 27,789,560 issued and outstanding as of April 30, 2019 and October 31, 2018 | 2,835 | 2,780 |
Additional paid-in capital | 10,188,076 | 10,106,731 |
Accumulated deficit | (9,307,796) | (8,928,694) |
Total stockholders' equity | 883,115 | 1,180,817 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,630,327 | $ 1,821,228 |
CONDENSED BALANCE SHEETS (Una_2
CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Apr. 30, 2019 | Oct. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 10,570 | $ 10,354 |
Inventory obsolete reserve | $ 75,468 | $ 75,468 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 28,334,560 | 27,789,560 |
Common stock, outstanding | 28,334,560 | 27,789,560 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Income Statement [Abstract] | ||||
REVENUES - NET | $ 30,359 | $ 17,163 | $ 139,703 | $ 133,366 |
OPERATING EXPENSES: | ||||
Cost of sales | 13,207 | 18,080 | 79,411 | 82,462 |
Selling, general and administrative expenses | 140,249 | 154,888 | 411,153 | 345,699 |
Total Operating Expenses | 153,456 | 172,968 | 490,564 | 428,161 |
LOSS FROM OPERATIONS | (123,097) | (155,805) | (350,861) | (294,795) |
OTHER EXPENSE | ||||
Miscellaneous expense | 600 | 487 | 1,286 | 1,034 |
Impairment loss on assets held for sale | 17,000 | |||
Interest expense | 5,037 | 1,731 | 9,955 | 8,443 |
Total other expense | 5,637 | 2,218 | 28,241 | 9,477 |
NET LOSS | $ (128,734) | $ (158,023) | $ (379,102) | $ (304,272) |
PER SHARE INFORMATION | ||||
Net Loss Per Common Share (in dollars per share) | $ (0.005) | $ (0.006) | $ (0.014) | $ (0.011) |
Weighted Average Number of Common Shares Outstanding (in shares) | 28,211,021 | 27,033,872 | 28,041,880 | 26,880,559 |
CONDENSED STATEMENTS OF CHANGES
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - 6 months ended Apr. 30, 2019 - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at beginning at Oct. 31, 2018 | $ 2,780 | $ 10,106,731 | $ (8,928,694) | $ 1,180,817 |
Balance at beginning (in shares) at Oct. 31, 2018 | 27,789,560 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Sale of stock | $ 55 | 81,345 | 81,400 | |
Sale of stock (in shares) | 545,000 | |||
Net loss | (379,102) | (379,102) | ||
Balance at end at Apr. 30, 2019 | $ 2,835 | $ 10,188,076 | $ (9,307,796) | $ 883,115 |
Balance at end (in shares) at Apr. 30, 2019 | 28,334,560 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (379,102) | $ (304,272) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Allowance for doubtful accounts | 216 | 8,026 |
Common stock issued for services | 29,900 | |
Impairment loss on assets held for sale | 17,000 | |
Depreciation | 16,383 | 17,756 |
Amortization of right of use asset | 20,570 | |
(Increase) decrease from changes in: | ||
Accounts receivable | 12,382 | 15,779 |
Inventory | 54,854 | (67,378) |
Deposits on inventory | 12,670 | |
Prepaid expenses | 1,651 | (318) |
Advance to employees | (4,200) | |
Increase (decrease) from changes in: | ||
Accounts payable | 148,132 | 38,995 |
Accrued interest expense | 3,236 | 855 |
Accrued expenses | 141 | (5,912) |
Net cash used in operating activities | (104,537) | (258,099) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (4,258) | |
Net cash used in investing activities | (4,258) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of stock | 81,400 | 216,560 |
Proceeds from shareholder advances | (19,650) | |
Payments on shareholder advances | (14,000) | (9,358) |
Payments on right of use lease liability | (20,570) | |
Payments on notes payable | (10,138) | |
Net cash provided by financing activities | 36,692 | 187,552 |
Net decrease in cash | (67,845) | (74,805) |
CASH, BEGINNING OF YEAR | 112,203 | 214,871 |
CASH, END OF THE PERIOD | 44,358 | 140,066 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 6,719 | $ 7,588 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 1. BASIS OF PRESENTATION 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, 2019, 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, 2019 and 2018. 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, 2018. The results of operations for the three and six periods ended April 30, 2019 and 2018 are not necessarily indicative of operating results for the full year. |
RIGHT OF USE ASSETS AND LEASE L
RIGHT OF USE ASSETS AND LEASE LIABILITIES | 6 Months Ended |
Apr. 30, 2019 | |
Notes to Financial Statements | |
RIGHT OF USE ASSETS AND LEASE LIABILITIES | NOTE 2. RIGHT OF USE ASSETS AND LEASE LIABILITIES During the quarter ended April 30, 2019, the Company implemented Accounting Standards Update 2016-02, Leases. Under the new guidance, a lessee must be recorded a liability for lease payments (referred to as the lease liability) and an asset for the right to use the leased asset during the lease term (referred to at the right of use asset) for all leases, regardless of whether they are designated as finance or operating leases. This election requires the lessee to recognize lease expense on a straight-line basis over the lease term. The right of use assets and corresponding right of use liabilities have been recorded using the present value of the leases. See Notes 11 and 12 within the Form 10-Q for additional disclosure on leases |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 3. GOING CONCERN The Company had a net loss of $379,102 and a negative cash flow from operations of $104,537 for the six month period ended April 30, 2019. In addition, the Company has an accumulated deficit of $9,307,796. Management of the Company has represented that they will be able to continue to support the Company’s cash needs through sales, sales of Company stock, and borrowings from private parties. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 6 Months Ended |
Apr. 30, 2019 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 4. ACCOUNTS RECEIVABLE Management evaluates its receivables on a quarterly basis to assess the validity of remaining receivables. Management has determined that there is significant doubt regarding the receivable balance over 90 days of $10,570 and $10,354 as of the quarter ended April 30, 2019 and as of the fiscal year ended October 31, 2018, respectively. Management has applied an allowance on all balances in excess of 90 days. |
INVENTORY
INVENTORY | 6 Months Ended |
Apr. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 5. 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 apparel inventory at April 30, 2019 and October 31, 2018 of $75,468. Management has determined that no allowance is currently necessary on their House Wrap Inventory. 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, 2019 | |
PER SHARE INFORMATION | |
EARNINGS PER SHARE | NOTE 6. 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, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 7. 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, 2019 | |
Shipping, site improvements and installation of the equipment expenses | |
SHIPPING AND HANDLING COSTS | NOTE 8. 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 $4,400 and $9,000 for the six month periods ended April 30, 2019 and 2018, respectively. |
COMMON STOCK
COMMON STOCK | 6 Months Ended |
Apr. 30, 2019 | |
Equity [Abstract] | |
COMMON STOCK | NOTE 9. COMMON STOCK During the six month period ended April 30, 2019, the Company sold 545,000 shares of common stock to seven investors for total proceeds of $81,400. The stock was issued between $0.08 and $0.17 per share. 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, 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. |
DEPOSITS ON EQUIPMENT
DEPOSITS ON EQUIPMENT | 6 Months Ended |
Apr. 30, 2019 | |
Deposit Assets [Abstract] | |
DEPOSITS ON EQUIPMENT | NOTE 10. 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, 2019, 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. Due to various environmental regulations regarding propane emitted from the machine into the air and other costs to assemble the machine the Company expects to incur costs in excess of the current deposit agreement. Management of the Company currently cannot reasonably estimate the costs. During the three month period ended January 31, 2019 Management decided to sell the machine. The shipping and other purchase costs associated with the purchase of the machine were deemed impaired and accordingly they were written off. The total loss on impairment for the six month period ended April 30, 2019 is $17,000. |
RIGHT OF USE ASSETS
RIGHT OF USE ASSETS | 6 Months Ended |
Apr. 30, 2019 | |
Notes to Financial Statements | |
RIGHT OF USE ASSETS | NOTE 11. RIGHT OF USE ASSETS The Company entered into a month to month verbal lease for office space prior to the quarter ended April 30, 2019 that are classified as right of use assets and lease liabilities. The lease for the Company’s office space is estimated to be through June 2022. In accordance with ASU 2016-02, the Company calculated the present a value of the leases using the average commercial real estate interest rate of 5.50% at the commencement of the office leases. Applying the commercial rate, the Company calculated the present value of $150,496 for the office lease as of April 30, 2019. As of April 30, 2019, the right of use assets associated with future operating leases are as follows: Total present value of right of use assets under lease agreements $ 150,496 Amortization of right of use assets (24,114 ) Total right of use assets as of April 30, 3019 $ 126,382 The right of use assets were amortized approximately $3,429 per month. Total amortization expense related to the right of use assets under the lease agreements was $20,570 and $0 for the six months ended April 30, 2019 and 2018, respectively. Future amortization of the right of use assets as of April 30, 2019 are as follows: 2020 $ 39,482 2021 37,366 2022 38,224 2023 11,310 $ 126,382 |
RIGHT OF USE LEASE LIABILITIES
RIGHT OF USE LEASE LIABILITIES | 6 Months Ended |
Apr. 30, 2019 | |
Notes to Financial Statements | |
RIGHT OF USE LEASE LIABILITIES | NOTE 12. RIGHT OF USE LEASE LIABILITIES As disclosed in Note 11, the Company entered into a lease for office space prior to the quarter ended April 30, 2019 that are classified as a right of use assets and lease liabilities. As of April 30, 2019, the lease liabilities associated with future payments due under the leases are as follows: Total present value of future lease payments $ 150,496 Principal payments made (24,114 ) Total right of use lease liabilities as of April 30, 2019 $ 126,382 The following is a schedule of future minimum lease payments under the right of use lease agreements together with the present value of the net minimum lease payments as of April 30, 2019: Total future minimum lease payments $ 143,500 Less present value discount 17,118 Total right of use lease liabilities as of April 30, 2019 126,382 Less current portion due within one year 39,482 Long-term right of use liabilities $ 86,900 Total maturities of lease liabilities as of April 30, 2019 are as follows: Total future minimum lease Present value Right of use payments discount lease liabilities 2020 $ 42,000 $ 2,518 $ 39,482 2021 42,000 4,634 37,366 2022 42,000 6,636 35,364 2023 17,500 3,330 14,170 $ 143,500 $ 17,118 $ 126,382 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 13. 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, 2019 and 2018: 2019 2018 Revenues: Apparel $ 107,868 $ 96,172 House Wrap 31,835 37,194 Total Revenues $ 139,703 $ 133,366 Assets (Less Right of Use Asset): Apparel $ 365,888 $ 556,343 House Wrap 1,138,057 1,227,436 Total $ 1,503,945 $ 1,783,779 Capital Expenditures: Apparel $ — $ 4,258 Housewrap — — Total $ — $ 4,258 Depreciation: Apparel $ 4,666 $ 6,039 House Wrap 11,717 11,717 Total $ 16,383 $ 17,756 |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 6 Months Ended |
Apr. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | NOTE 14. 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. Due to the partial government shutdown a new trial date was set for July 29, 2019. 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, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 15. SUBSEQUENT EVENTS The Company has evaluated subsequent events in accordance with ASC Topic 855, “ Subsequent Events During May 2019, the Company sold 125,000 shares of stock to one investor for total proceeds of $10,000. The stock was issued for $0.08 per share. Additionally, during May 2019, one debt holder converted the $50,000 loan and $5,000 of accrued interest to $550,000 shares of stock. The debt was converted at $0.10 per share. 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. |
RIGHT OF USE ASSETS (Tables)
RIGHT OF USE ASSETS (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Notes to Financial Statements | |
Right of use assets associated with future operating leases | As of April 30, 2019, the right of use assets associated with future operating leases are as follows: Total present value of right of use assets under lease agreements $ 150,496 Amortization of right of use assets (24,114 ) Total right of use assets as of April 30, 3019 $ 126,382 |
Future amortization of right of use assets | Future amortization of the right of use assets as of April 30, 2019 are as follows: 2020 $ 39,482 2021 37,366 2022 38,224 2023 11,310 $ 126,382 |
RIGHT OF USE LEASE LIABILITIES
RIGHT OF USE LEASE LIABILITIES (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Notes to Financial Statements | |
Lease liabilities associated with future payments | As of April 30, 2019, the lease liabilities associated with future payments due under the leases are as follows: Total present value of future lease payments $ 150,496 Principal payments made (24,114 ) Total right of use lease liabilities as of April 30, 2019 $ 126,382 |
Schedule of future minimum lease payments | The following is a schedule of future minimum lease payments under the right of use lease agreements together with the present value of the net minimum lease payments as of April 30, 2019: Total future minimum lease payments $ 143,500 Less present value discount 17,118 Total right of use lease liabilities as of April 30, 2019 126,382 Less current portion due within one year 39,482 Long-term right of use liabilities $ 86,900 |
Schedule of maturities of lease liabilities | Total maturities of lease liabilities as of April 30, 2019 are as follows: Total future minimum lease Present value Right of use payments discount lease liabilities 2020 $ 42,000 $ 2,518 $ 39,482 2021 42,000 4,634 37,366 2022 42,000 6,636 35,364 2023 17,500 3,330 14,170 $ 143,500 $ 17,118 $ 126,382 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of business segment information | The following tables present our business segment information for the six month periods ended April 30, 2019 and 2018: 2019 2018 Revenues: Apparel $ 107,868 $ 96,172 House Wrap 31,835 37,194 Total Revenues $ 139,703 $ 133,366 Assets (Less Right of Use Asset): Apparel $ 365,888 $ 556,343 House Wrap 1,138,057 1,227,436 Total $ 1,503,945 $ 1,783,779 Capital Expenditures: Apparel $ — $ 4,258 Housewrap — — Total $ — $ 4,258 Depreciation: Apparel $ 4,666 $ 6,039 House Wrap 11,717 11,717 Total $ 16,383 $ 17,756 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | Oct. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Net loss | $ (128,734) | $ (158,023) | $ (379,102) | $ (304,272) | |
Cash flow from operations | (104,537) | $ (258,099) | |||
Accumulated deficit | $ (9,307,796) | $ (9,307,796) | $ (8,928,694) |
ACCOUNTS RECEIVABLE (Details Na
ACCOUNTS RECEIVABLE (Details Narrative) - USD ($) | Apr. 30, 2019 | Oct. 31, 2018 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Bad debts | $ 10,570 | $ 10,354 |
INVENTORY (Details Narrative)
INVENTORY (Details Narrative) - USD ($) | Apr. 30, 2019 | Oct. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves | $ 75,468 | $ 75,468 |
SHIPPING AND HANDLING COSTS (De
SHIPPING AND HANDLING COSTS (Details Narrative) - USD ($) | 6 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Shipping, site improvements and installation of the equipment expenses | ||
Shipping and handling costs | $ 4,400 | $ 9,000 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - USD ($) | 6 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Related Party Transaction [Line Items] | ||
Value of shares issued during the period | $ 81,400 | |
Seven Investors [Member] | ||
Related Party Transaction [Line Items] | ||
Number of shares issued during the period | 545,000 | |
Value of shares issued during the period | $ 81,400 | |
Seven Investors [Member] | Minimum [Member] | ||
Related Party Transaction [Line Items] | ||
Share price (in dollars per share) | $ 0.08 | |
Seven Investors [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Share price (in dollars per share) | $ 0.17 | |
Three Investors [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 Investors [Member] | Minimum [Member] | ||
Related Party Transaction [Line Items] | ||
Share price (in dollars per share) | $ 0.25 | |
Three Investors [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Share price (in dollars per share) | $ 0.32 | |
Two Individuals [Member] | ||
Related Party Transaction [Line Items] | ||
Stock Issued During Period, Shares, Issued for Services | 105,000 | |
Stock Issued During Period, Value, Issued for Services | $ 29,900 | |
Two Individuals [Member] | Minimum [Member] | ||
Related Party Transaction [Line Items] | ||
Share price (in dollars per share) | $ 0.18 | |
Two Individuals [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Share price (in dollars per share) | $ 0.40 |
DEPOSITS ON EQUIPMENT (Details
DEPOSITS ON EQUIPMENT (Details Narrative) - USD ($) | Jul. 12, 2015 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 |
Deposit Assets [Abstract] | |||||
Description of assets contract | 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. | ||||
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 | $ 500,000 | |||
Advanced payment on machine | 100,000 | 100,000 | |||
Shipping, site improvements and installation of the equipment expenses | 17,000 | ||||
Loss on impairment | $ 17,000 |
RIGHT OF USE ASSETS (Details)
RIGHT OF USE ASSETS (Details) | 6 Months Ended |
Apr. 30, 2019USD ($) | |
Notes to Financial Statements | |
Total present value of right of use assets under lease agreements | $ 150,496 |
Amortization of right of use assets | (24,114) |
Total right of use assets | $ 126,382 |
RIGHT OF USE ASSETS (Details 1)
RIGHT OF USE ASSETS (Details 1) | Apr. 30, 2019USD ($) |
Notes to Financial Statements | |
2020 | $ 39,482 |
2021 | 37,366 |
2022 | 38,224 |
2023 | 11,310 |
Right of use asset | $ 126,382 |
RIGHT OF USE ASSETS (Details Na
RIGHT OF USE ASSETS (Details Narrative) - USD ($) | 6 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Notes to Financial Statements | ||
Lease expiration date | Jun. 30, 2022 | |
Average commercial real estate interest rate | 5.50% | |
Amortization of right of use assets monthly | $ 3,429 | |
Amortization expense related to right of use assets | 20,570 | $ 0 |
Present value of lease | $ 150,496 |
RIGHT OF USE LEASE LIABILITIE_2
RIGHT OF USE LEASE LIABILITIES (Details) | 6 Months Ended |
Apr. 30, 2019USD ($) | |
Notes to Financial Statements | |
Total present value of future lease payments | $ 150,496 |
Principla payments made | (24,114) |
Total right of use lease liabilties | $ 126,382 |
RIGHT OF USE LEASE LIABILITIE_3
RIGHT OF USE LEASE LIABILITIES (Details 1) - USD ($) | Apr. 30, 2019 | Oct. 31, 2018 |
Notes to Financial Statements | ||
Total future minimum lease payments | $ 143,500 | |
Less present value discount | 17,118 | |
Total right of use lease liabilities | 126,382 | |
Less current portion due within one year | 39,482 | $ 40,584 |
Long-term right of use liabilities | $ 86,900 | $ 106,368 |
RIGHT OF USE LEASE LIABILITIE_4
RIGHT OF USE LEASE LIABILITIES (Details 2) | Apr. 30, 2019USD ($) |
Future minimum lease payments | |
2020 | $ 42,000 |
2021 | 42,000 |
2022 | 42,000 |
2023 | 17,500 |
Total future minimum lease payments | 143,500 |
Present value discount | |
2020 | 2,518 |
2021 | 4,634 |
2022 | 6,636 |
2023 | 3,330 |
Present value discount | (17,118) |
Right of use lease liabilities | |
2020 | 39,482 |
2021 | 37,366 |
2022 | 35,364 |
2023 | 14,170 |
Right of use lease liablilties | $ 126,382 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total Revenues | $ 30,359 | $ 17,163 | $ 139,703 | $ 133,366 |
Assets: (Less Right of Use Asset): | 1,503,945 | 1,783,779 | 1,503,945 | 1,783,779 |
Capital Expenditures | 4,258 | |||
Depreciation | 16,383 | 17,756 | ||
Apparel Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 107,868 | 96,172 | ||
Assets: (Less Right of Use Asset): | 365,888 | 556,343 | 365,888 | 556,343 |
Capital Expenditures | 4,258 | |||
Depreciation | 4,666 | 6,039 | ||
House Wrap Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 31,835 | 37,194 | ||
Assets: (Less Right of Use Asset): | $ 1,138,057 | $ 1,227,436 | 1,138,057 | 1,227,436 |
Capital Expenditures | ||||
Depreciation | $ 11,717 | $ 11,717 |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) | 6 Months Ended |
Apr. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended |
May 31, 2019 | Apr. 30, 2019 | |
Sale of stock | $ 81,400 | |
Subsequent Event [Member] | ||
Number of debt converted | 550,000 | |
Debt conversion price (in dollars per share) | $ 0.10 | |
Subsequent Event [Member] | Loan [Member] | ||
Value of debt converted | $ 50,000 | |
Subsequent Event [Member] | Accrued interest [Member] | ||
Value of debt converted | 5,000 | |
Subsequent Event [Member] | Investor | ||
Sale of stock | $ 10,000 | |
Number stock sold (in shares) | 125,000 | |
Share price (in dollars per share) | $ 0.08 |