Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Mar. 16, 2020 | Jun. 30, 2019 | |
Document And Entity Information | |||
Entity Registrant Name | INNOVATIVE DESIGNS INC | ||
Entity Central Index Key | 0001190370 | ||
Document Type | 10-K | ||
Document Period End Date | Oct. 31, 2019 | ||
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 | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,662,275 | ||
Entity Common Stock, Shares Outstanding | 30,861,560 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Interactive data current | Yes | ||
Entity file number | 000-51791 | ||
State of incorporation | DE |
Balance Sheets
Balance Sheets - USD ($) | Oct. 31, 2019 | Oct. 31, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 34,525 | $ 112,203 |
Accounts receivable - Net of allowance for doubtful accounts of $10,409 as of October 31, 2019 and $9,320 as of October 31, 2018 | 5,948 | 13,455 |
Inventory - net of inventory reserve of $75,468 as of October 31, 2019 and 2018 | 636,459 | 721,262 |
Inventory on consignment | 1,625 | 1,625 |
Deposits on inventory | 57,330 | 57,330 |
Prepaid expenses | 10,018 | 11,669 |
Right of use asset, current portion | 36,537 | 0 |
Total current assets | 782,442 | 917,544 |
PROPERTY AND EQUIPMENT - NET | 98,495 | 131,532 |
OTHER ASSETS | ||
Advance to employee | 8,200 | 8,200 |
Right of use asset, net of current portion | 79,373 | 0 |
Deposit on equipment | 600,000 | 617,000 |
TOTAL OTHER ASSETS | 687,573 | 625,200 |
TOTAL ASSETS | 1,568,510 | 1,674,276 |
CURRENT LIABILITIES | ||
Accounts payable | 589,505 | 194,963 |
Current portion of notes payable | 19,168 | 18,628 |
Current portion of lease liability | 36,537 | 0 |
Accrued interest expense | 19,237 | 22,885 |
Due to stockholders | 96,100 | 145,350 |
Accrued expenses | 10,916 | 10,775 |
Total current liabilities | 771,463 | 392,601 |
LONG TERM LIABILITIES | ||
Lease liability, net of current portion | 79,373 | 0 |
Long-term portion of notes payable | 80,896 | 100,858 |
TOTAL LIABILITIES | 931,732 | 493,459 |
STOCKHOLDERS' EQUITY | ||
Common stock, $0.0001 par value, 100,800,000 shares authorized as of October 31, 2019 and 2018, and 30,111,560 and 27,789,560 issued and outstanding as of October 31, 2019 and 2018, respectively | 3,013 | 2,780 |
Additional paid-in capital | 10,404,438 | 10,106,731 |
Accumulated deficit | (9,770,673) | (8,928,694) |
Total stockholders' equity | 636,778 | 1,180,817 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,568,510 | $ 1,674,276 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Oct. 31, 2019 | Oct. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 10,409 | $ 9,320 |
Inventory obsolete reserve | $ 75,468 | $ 75,468 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 100,800,000 | 100,800,000 |
Common stock, issued | 30,111,560 | 27,789,560 |
Common stock, outstanding | 30,111,560 | 27,789,560 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Income Statement [Abstract] | ||
REVENUES - NET OF RETURNS AND ALLOWANCES | $ 215,975 | $ 249,682 |
OPERATING EXPENSES | ||
Cost of sales | 126,645 | 188,791 |
Selling, general and administrative expenses | 898,448 | 648,363 |
LOSS FROM OPERATIONS | (809,118) | (587,472) |
OTHER INCOME (EXPENSE) | ||
Other income | 3,685 | 0 |
Other expense | (18,286) | 27,250 |
Interest expense | (18,260) | (22,660) |
TOTAL OTHER (EXPENSE) | (32,861) | 4,590 |
NET LOSS | $ (841,979) | $ (582,882) |
Basic | ||
Net Loss Per Common Share (in dollars per share) | $ (0.029) | $ (0.021) |
Weighted Average Number of Common Shares Outstanding (in shares) | 28,708,182 | 27,122,315 |
Statements of Shareholders' Equ
Statements of Shareholders' Equity - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at beginning at Oct. 31, 2017 | $ 2,639 | $ 9,725,412 | $ (8,345,812) | $ 1,382,239 |
Balance at beginning (in shares) at Oct. 31, 2017 | 26,392,310 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued for services | $ 24 | 69,876 | 69,900 | |
Shares issued for services (in shares) | 240,000 | |||
Sale of stock | $ 117 | 311,443 | 311,560 | |
Sale of stock (in shares) | 1,157,250 | |||
Net loss | (582,882) | (582,882) | ||
Balance at end at Oct. 31, 2018 | $ 2,780 | 10,106,731 | (8,928,694) | 1,180,817 |
Balance at end (in shares) at Oct. 31, 2018 | 27,789,560 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued for services | $ 21 | 35,479 | 35,500 | |
Shares issued for services (in shares) | 210,000 | |||
Shares issued for debt extinguishment | $ 55 | 54,945 | 55,000 | |
Shares issued for debt extinguishment (in shares) | 550,000 | |||
Sale of stock | $ 157 | 207,283 | 207,440 | |
Sale of stock (in shares) | 1,562,000 | |||
Net loss | (841,979) | (841,979) | ||
Balance at end at Oct. 31, 2019 | $ 3,013 | $ 10,404,438 | $ (9,770,673) | $ 636,778 |
Balance at end (in shares) at Oct. 31, 2019 | 30,111,560 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (841,979) | $ (582,882) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Allowance for doubtful accounts | 10,409 | 9,320 |
Allowance for obsolete inventory | 0 | 24,468 |
Impairment of deposits on machinery | 17,000 | |
Common stock issued for services | 35,500 | 69,900 |
Depreciation | 33,037 | 33,588 |
(Increase) decrease from changes in: | ||
Accounts receivable | (2,902) | 1,030 |
Inventory | 84,803 | (15,885) |
Deposits on inventory | 0 | 12,670 |
Prepaid expenses | 1,651 | 2,984 |
Advance to employees | 0 | (4,200) |
Right of use asset | (115,910) | 0 |
Increase (decrease) from changes in: | ||
Accounts payable | 394,542 | 65,685 |
Lease liability | 115,910 | 0 |
Accrued interest expense | (3,648) | (21,299) |
Accrued expenses | 5,141 | (14,327) |
Net cash used in operating activities | (266,446) | (418,948) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | 0 | (4,258) |
Net cash used in investing activities | 0 | (4,258) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of stock | 207,440 | 311,560 |
Proceeds from stockholder advances | 47,600 | 53,350 |
Payments on stockholder advances | (46,850) | (26,500) |
Payments on notes payable | (19,422) | (17,872) |
Net cash provided by financing activities | 188,768 | 320,538 |
Net decrease in cash and cash equivalents | (77,678) | (102,668) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 112,203 | 214,871 |
CASH AND CASH EQUIVALENTS, END OF THE YEAR | 34,525 | 112,203 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 21,908 | $ 29,779 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 31, 2019 | |
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 $75,468 was recorded as of October 31, 2019 and 2018. The reserve is evaluated on a quarterly basis and adjusted accordingly. 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 Company’s 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. Concentration of Credit Risk Shipping and Handling Net Income Per Common Share Earnings per Share Stock-Based Compensation Compensation - Stock Compensation Recent Accounting Standards Update In February 2016, the FASB issued ASU 2016-02, “Leases”, which added a requirement than an entity, when acting as a lessee, should recognize in the balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For public business entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 including interim periods within fiscal years beginning after December 15, 2019. Management has adopted the guidance as noted within Notes 2, 15, and 16 of the financial statements. |
RIGHT OF USE ASSETS AND LEASE L
RIGHT OF USE ASSETS AND LEASE LIABILITIES | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
RIGHT OF USE ASSETS AND LEASE LIABILITIES | 2. RIGHT OF USE ASSETS AND LEASE LIABILITIES |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Oct. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 3. PROPERTY AND EQUIPMENT Property and equipment are summarized by major classifications as follows: 2019 2018 Equipment $ 221,835 $ 221,835 Containers 14,900 14,900 Furniture and fixtures 11,083 11,083 Leasehold improvements 4,806 4,806 Automobile 9,121 9,121 261,745 261,745 Less accumulated depreciation 163,250 130,213 Property and equipment - net $ 98,495 $ 131,532 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Oct. 31, 2019 | |
Debt Disclosure [Abstract] | |
BORROWINGS | 4. BORROWINGS Borrowings at October 31, 2019 and 2018 consisted of the following: 2019 2018 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. $ 3,000 $ 5,000 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 10,000 Note Payable $25,000 - Sol & Tina Waxman Family Foundation, March 2015. Amended January 15, 2018 for $30,250; Due January 5, 2019; interest is 10%. — 30,250 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. 8,400 13,500 Note Payable $4,500 - Joseph Riccelli, Sr., August 2019. Interest is 10% for 180 days; No set maturity date. 4,500 — Note Payable $36,500 - Joseph Riccelli, Sr., September 2019. Interest is 10% for 180 days; No set maturity date. 36,500 — Note Payable $3,000 - Joseph Riccelli, Sr., October 2019. Interest is 10% for 180 days; No set maturity date. 3,000 — Note Payable $50,000 - Lawrence Fraser, May 29, 2018. Due June 1, 2019; interest is 10% annually. Note was extended through a verbal agreement with no set maturity date; — 50,000 Note Payable $40,672 - Riccelli Properties, August 7, 2017. Due February 7, 2018; interest is 10%. Note was extended through a verbal agreement with no set maturity date 32,200 36,600 Total Due to Stockholders $ 99,100 $ 145,350 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. $ 100,064 $ 119,486 Total Borrowings 199,164 264,836 Less Due to Stockholders 99,100 145,350 Less Current Portion of Notes Payable 19,168 18,628 Total Long Term Portion of Notes Payable $ 80,896 $ 100,858 Maturities of long-term debt are as follows: Year Ending Notes October 31 Stockholders Payable Amount Due 2020 $ 99,100 $ 19,168 $ 118,268 2021 — 19,739 19,739 2022 — 20,319 20,319 2023 — 20,916 20,916 2024 — 19,922 19,922 Total $ 99,100 $ 100,064 $ 199,16 4 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, 2019 and 2018 was $3,000 and $5,000, 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% with an original repayment date of May 2013. This note was extended through a verbal agreement. The loan balance at October 31, 2019 and 2018 was $10,000. 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. The Company’s CEO has pledged 250,000 shares of his stock, as collateral. This note is also personally guaranteed by the Company’s CEO. There have been various subsequent amendments to the original note agreement. The most recent amendment was made in January 2019 for the balance of $30,250. Interest is payable at 10% and total payment is due by January 5, 2019. The loan balance at October 31, 2019 and 2018 was $0 and $30,250, respectively. In May 2013, the Company entered into a note payable with its CEO, Joseph Riccelli, 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% with an original repayment date of November 2013. This note was extended through a verbal agreement. The loan balance at October 31, 2019 and 2018 was $9,900 and $13,500, respectively. During May 2018, the Company entered into a note payable agreement with Lawrence Fraser for $50,000. This loan was used to fund the operations of the Company. This loan is due on June 1, 2019, including interest at 10%. The loan balance was converted to common stock during 2019. During August 2017, the Company entered into a note payable agreement with Riccelli Properties, which is wholly owned and operated by the Company’s CEO, Joseph Riccelli, in the amount of $40,672. This amount reflects payments made by Riccelli Properties on the Small Business Association promissory note. Riccelli Properties sold the real estate that was collateral on the promissory note. The note has a term of 6 months and an interest rate of 10%. This loan balance at October 31, 2019 and 2018 was $32,200 and $36,600, respectively. In August 2019, the Company entered into a note payable with its CEO, Joseph Riccelli, for $36,500. This loan was to be used to fund operations of the Company. This loan has no set maturity date, including interest at 10%. The loan balance at October 31, 2019 and 2018 was $36,500 and $0, respectively. In September 2019, the Company entered into a note payable with its CEO, Joseph Riccelli, for $4,500. This loan was to be used to fund operations of the Company. This loan has no set maturity date, including interest at 10%. The loan balance at October 31, 2019 and 2018 was $4,500 and $0, respectively. In October 2019, the Company entered into a note payable with its CEO, Joseph Riccelli, for $3,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% with an original repayment date of November 2013. This note was extended through a verbal agreement. The loan balance at October 31, 2019 and 2018 was $3,000 and $0, respectively. NOTES PAYABLE 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 monthly. A payment was made on the note of $40,672 during the year ended October 31, 2017 due to the sale of real estate by Riccelli Properties that was collateral on the promissory note. The loan balance was $100,064 and $119,486 at October 31, 2019 and 2018, respectively. This note is guaranteed by the Company’s CEO. |
EXCLUSIVE LICENSING AND MANUFAC
EXCLUSIVE LICENSING AND MANUFACTURING AGREEMENT | 12 Months Ended |
Oct. 31, 2019 | |
Exclusive Licensing And Manufacturing Agreement | |
EXCLUSIVE LICENSING AND MANUFACTURING AGREEMENT | 5. 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. The first ten-year option was exercised. 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, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | 6. CONCENTRATIONS Revenues from three customers were approximately 53% and 51% of the Company’s revenues for the fiscal years ended October 31, 2019 and 2018, respectively. 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, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 7. 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 2018 tax year, fiscal year end October 31, 2019, the Company had net operating loss carryforwards of approximately $5,700,000 for tax purposes. The carryforwards are available to offset taxable income of future periods and begin to expire after the Company’s 2037 tax year, fiscal year end October 31, 2038. Effective for tax years ending in 2018 or later, net operating losses cannot be carried back but can be carried forward to future tax years indefinitely. 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 Company’s deferred tax assets and liabilities relate to the following: 2019 2018 Net operating loss carryforward $ 3,396,604 $ 2,554,625 Depreciation — — Net deferred tax assets before valuation allowance 3,396,604 2,554,625 Less: Valuation allowance (3,396,604 ) (2,554,625 ) Net deferred tax assets $ — $ — For financial reporting purposes, the Company has incurred losses in previous years. Based on the available objective evidence, including the Company’s 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, 2019 and 2018, respectively. The effective income tax rate varied from the statutory Federal tax rate as follows: 2019 2018 Federal statutory rate 21 % 21 % Effect of net operating losses (21 %) (21 %) Effective income tax rate — — The Company’s 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, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | 8. COMMITMENTS 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. The lease is based on a verbal agreement with month to month terms. For the fiscal years ended October 31, 2019 and 2018 rent expense totaled $42,000. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Oct. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 9. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) First Second Third Fourth 2019 Quarter Quarter Quarter Quarter Year Revenue $ 109,344 $ 30,359 $ 49,033 $ 27,239 $215,975 Loss from operations $ (227,764 ) $ (123,097 ) $ (138,081 ) $ (320,176 ) $(809,118) Net loss $ (250,368 ) $ (128,734 ) $ (135,069 ) $ (327,808 ) $(841,979) Weighted average shares outstanding 27,228,038 28,211,021 28,934,049 29,938,602 28,708,182 Basic loss per share (0.009 ) (0.005 ) (0.005 ) (0.011 ) (0.029) First Second Third Fourth 2018 Quarter Quarter Quarter Quarter Year Revenue $ 116,203 $ 17,163 $ 34,149 $ 82,167 $ 249,682 Loss from operations $ (138,990 ) $ (155,805 ) $ (145,870 ) $ (146,807 ) $ (587,472 ) Net loss $ (146,249 ) $ (158,023 ) $ (154,221 ) $ (124,389 ) $ (582,882 ) Weighted average shares outstanding 26,732,245 27,033,872 27,228,038 27,492,223 27,122,315 Basic loss per share (0.005 ) (0.006 ) (0.006 ) (0.005 ) (0.021 ) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Oct. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 10. 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, 2019 and 2018: 2019 2018 Revenues: Apparel $ 135,506 $ 117,147 Housewrap 80,469 132,535 Total Revenues $ 215,975 $ 249,682 Assets: Apparel $ 456,125 $ 500,208 Housewrap 1,112,385 1,202,325 Total $ 1,568,510 $ 1,702,533 Capital Expenditures: Apparel $ — $ 4,258 Housewrap — — Total $ — $ 4,258 Depreciation: Apparel $ 9,410 $ 9,961 Housewrap 23,627 23,627 Total $ 33,037 $ 33,58 8 |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Oct. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK | 11. COMMON STOCK During the quarter ended January 31, 2018, the Company issued 50,000 shares of common stock to one individual for services performed during December 2017 valued at $20,000. The stock was issued at a price of $0.40 per share. In addition, the Company sold 351,000 shares of common stock to three individuals for total proceeds of $111,560. The stock was issued at a price ranging from $0.30-$0.32 per share. During the quarter ended April 30, 2018, the Company issued 55,000 shares of common stock to two individuals for services performed in April 2018 valued at $9,900. The stock was issued at a price of $0.18 per share. In addition, the Company sold 356,250 shares of common stock to three individuals for total proceeds of $105,000. The stock was issued at a price ranging from $0.25-$0.32 per share. During the quarter ended July 31, 2018, the Company issued 5,000 shares of common stock to one individual for services performed in May 2018 valued at $1,000 in total. The stock was issued at a price of $0.20 per share. In addition, the Company sold 25,000 shares of common stock to one individual for total proceeds of $5,000. The stock was issued at a price of $0.20 per share. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because these transactions and the transaction cited above 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 quarter ended October 31, 2018, the Company issued 130,000 shares of common stock to two shareholders for services performed in September and October 2018 valued at $39,000 in total. The stock was issued at a price of $0.80 per share. Additionally, for the quarter ended October 31, 2018, the Company sold 425,000 shares of common stock for total proceeds of $90,000. The stock was issued at a price ranging from $0.20 - $0.25 per share to three stockholders. 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 fiscal year ended October 31, 2019, the Company sold 1,867,000 shares of common stock to nine investors for total proceeds of $264,040. The stock was issued between $0.08 and $0.17 per share. During the fiscal year ended October 31,2019, 550,000 shares of common stock were issued to one note holder for the extinguishment of a $50,000 note payable and $5,000 of accrued interest. This stock was issued at $0.10 per share. The Company issued 210,000 shares of common stock to three individuals for services valued at $35,500. The stock was issued between $0.15 and $0.20 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 for the restrictions on their transferability and sale. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Oct. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 12. RELATED PARTY TRANSACTIONS The Company has entered into various debt agreements with related parties. These agreements are classified as shareholder loans within Note 8 to the financial statements. The Company has entered into a verbal lease agreement as further discussed in Note 7 to the financial statements. |
LITIGATION
LITIGATION | 12 Months Ended |
Oct. 31, 2019 | |
Litigation | |
LITIGATION | 13. LITIGATION 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. On February 24, 2020, the District Court released an opinion granting the Company’s motion to have the expert testimony of the FTC’s expert witness struck. The Company now plans to initiate the filing of a Rule 529 (c) motion. The Company continues to strongly deny 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. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Oct. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | 14. GOING CONCERN |
RIGHT OF USE ASSETS
RIGHT OF USE ASSETS | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
RIGHT OF USE ASSETS | 15. RIGHT OF USE ASSETS The Company entered into a month to month verbal lease at the time the Company was formed that is classified as right of use asset and lease liability. 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 value of the leases using the average commercial real estate interest rate of 5.50% at the commencement of the office lease. Applying the commercial rate, the Company calculated the present value of $150,496 for the office lease as of October 31, 2019. As of October 31, 2019, the right of use assets associated with future operating lease is as follows: Total present value of right of use asset under lease agreement $ 150,496 Amortization of right of use asset (34,586 ) Total right of use asset as of October 31, 2019 $ 115,910 Less current portion due within one year 36,537 Long-term right of use asset $ 79,37 3 Total amortization expense related to the right of use assets under the verbal lease agreement was $22,174 and $0 for the years ended October 31, 2019 and 2018, respectively. Future amortization of the right of use asset as of October 31, 2019 is as follows: 2020 $ 36,537 2021 38,598 2022 40,775 Total $ 115,91 0 |
RIGHT OF USE LEASE LIABILITY
RIGHT OF USE LEASE LIABILITY | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
RIGHT OF USE LEASE LIABILITIES | 16. RIGHT OF USE LEASE LIABILITY As disclosed in Note 15, the Company entered into a verbal lease for office space prior to the year ended October 31, 2019 that is classified as a right of use asset and lease liability. As of October 31, 2019, the lease liability associated with future payments due under the verbal lease is as follows: Total present value of future lease payments $ 150,496 Principal payments made as of the year ended October 31, 2019 (34,586 ) Total right of use lease liabilities as of October 31, 2019 $ 115,910 Total maturities of lease liability as of October 31, 2019 are as follows: Total future minimum lease Present value Right of use payments discount lease liability 2020 $ 42,000 $ 5,463 $ 36,537 2021 42,000 3,402 38,598 2022 42,000 1,225 40,775 $ 126,000 $ 10,090 $ 115,91 0 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Oct. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS Subsequent Events During November and December 2019, the Company entered into two new loans with the CEO for $1,500 and $38,000 respectively. Subsequent to October 31, 2019, the Company sold 750,000 shares of common stock for a total proceed of $121,500. The common stock was issued between $0.13 and $0.20 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. In early 2020, an outbreak of a novel strain of coronavirus was identified and infections have been found in a number of countries around the world, including the United States. The coronavirus and its impact on trade including customer demand, travel, employee productivity, supply chain, and other economic activities has had, and may continue to have, a significant effect on financial markets and business activity. The extent of the impact of the coronavirus on our operational and financial performance is currently uncertain and cannot be predicted. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 31, 2019 | |
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 $75,468 was recorded as of October 31, 2019 and 2018. The reserve is evaluated on a quarterly basis and adjusted accordingly. |
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 Company’s 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. |
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 |
Recent Accounting Standards Update | Recent Accounting Standards Update In February 2016, the FASB issued ASU 2016-02, “Leases”, which added a requirement than an entity, when acting as a lessee, should recognize in the balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For public business entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 including interim periods within fiscal years beginning after December 15, 2019. Management has adopted the guidance as noted within Notes 2, 15, and 16 of the financial statements. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment summarized by major classifications | Property and equipment are summarized by major classifications as follows: 2019 2018 Equipment $ 221,835 $ 221,835 Containers 14,900 14,900 Furniture and fixtures 11,083 11,083 Leasehold improvements 4,806 4,806 Automobile 9,121 9,121 261,745 261,745 Less accumulated depreciation 163,250 130,213 Property and equipment - net $ 98,495 $ 131,532 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings | Borrowings at October 31, 2019 and 2018 consisted of the following: 2019 2018 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. $ 3,000 $ 5,000 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 10,000 Note Payable $25,000 - Sol & Tina Waxman Family Foundation, March 2015. Amended January 15, 2018 for $30,250; Due January 5, 2019; interest is 10%. — 30,250 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. 8,400 13,500 Note Payable $4,500 - Joseph Riccelli, Sr., August 2019. Interest is 10% for 180 days; No set maturity date. 4,500 — Note Payable $36,500 - Joseph Riccelli, Sr., September 2019. Interest is 10% for 180 days; No set maturity date. 36,500 — Note Payable $3,000 - Joseph Riccelli, Sr., October 2019. Interest is 10% for 180 days; No set maturity date. 3,000 — Note Payable $50,000 - Lawrence Fraser, May 29, 2018. Due June 1, 2019; interest is 10% annually. Note was extended through a verbal agreement with no set maturity date; — 50,000 Note Payable $40,672 - Riccelli Properties, August 7, 2017. Due February 7, 2018; interest is 10%. Note was extended through a verbal agreement with no set maturity date 32,200 36,600 Total Due to Stockholders $ 99,100 $ 145,350 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. $ 100,064 $ 119,486 Total Borrowings 199,164 264,836 Less Due to Stockholders 99,100 145,350 Less Current Portion of Notes Payable 19,168 18,628 Total Long Term Portion of Notes Payable $ 80,896 $ 100,858 |
Schedule of long-term debt maturities | Maturities of long-term debt are as follows: Year Ending Notes October 31 Stockholders Payable Amount Due 2020 $ 99,100 $ 19,168 $ 118,268 2021 — 19,739 19,739 2022 — 20,319 20,319 2023 — 20,916 20,916 2024 — 19,922 19,922 Total $ 99,100 $ 100,064 $ 199,16 4 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax assets and liabilities | The significant components of the Company’s deferred tax assets and liabilities relate to the following: 2019 2018 Net operating loss carryforward $ 3,396,604 $ 2,554,625 Depreciation — — Net deferred tax assets before valuation allowance 3,396,604 2,554,625 Less: Valuation allowance (3,396,604 ) (2,554,625 ) 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: 2019 2018 Federal statutory rate 21 % 21 % Effect of net operating losses (21 %) (21 %) Effective income tax rate — — |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quaterly financial information | First Second Third Fourth 2019 Quarter Quarter Quarter Quarter Year Revenue $ 109,344 $ 30,359 $ 49,033 $ 27,239 $215,975 Loss from operations $ (227,764 ) $ (123,097 ) $ (138,081 ) $ (320,176 ) $(809,118) Net loss $ (250,368 ) $ (128,734 ) $ (135,069 ) $ (327,808 ) $(841,979) Weighted average shares outstanding 27,228,038 28,211,021 28,934,049 29,938,602 28,708,182 Basic loss per share (0.009 ) (0.005 ) (0.005 ) (0.011 ) (0.029) First Second Third Fourth 2018 Quarter Quarter Quarter Quarter Year Revenue $ 116,203 $ 17,163 $ 34,149 $ 82,167 $ 249,682 Loss from operations $ (138,990 ) $ (155,805 ) $ (145,870 ) $ (146,807 ) $ (587,472 ) Net loss $ (146,249 ) $ (158,023 ) $ (154,221 ) $ (124,389 ) $ (582,882 ) Weighted average shares outstanding 26,732,245 27,033,872 27,228,038 27,492,223 27,122,315 Basic loss per share (0.005 ) (0.006 ) (0.006 ) (0.005 ) (0.021 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of business segment information | The following tables present our business segment information for the fiscal years ending October 31, 2019 and 2018: 2019 2018 Revenues: Apparel $ 135,506 $ 117,147 Housewrap 80,469 132,535 Total Revenues $ 215,975 $ 249,682 Assets: Apparel $ 456,125 $ 500,208 Housewrap 1,112,385 1,202,325 Total $ 1,568,510 $ 1,702,533 Capital Expenditures: Apparel $ — $ 4,258 Housewrap — — Total $ — $ 4,258 Depreciation: Apparel $ 9,410 $ 9,961 Housewrap 23,627 23,627 Total $ 33,037 $ 33,58 8 |
RIGHT OF USE ASSETS (Tables)
RIGHT OF USE ASSETS (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Right of use assets associated with future operating leases | As of October 31, 2019, the right of use assets associated with future operating lease is as follows: Total present value of right of use asset under lease agreement $ 150,496 Amortization of right of use asset (34,586 ) Total right of use asset as of October 31, 2019 $ 115,910 Less current portion due within one year 36,537 Long-term right of use asset $ 79,37 3 |
Future amortization of right of use assets | Future amortization of the right of use asset as of October 31, 2019 is as follows: 2020 $ 36,537 2021 38,598 2022 40,775 Total $ 115,91 0 |
RIGHT OF USE LEASE LIABILITY (T
RIGHT OF USE LEASE LIABILITY (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Schedule of future minimum lease payments | As of October 31, 2019, the lease liability associated with future payments due under the verbal lease is as follows: Total present value of future lease payments $ 150,496 Principal payments made as of the year ended October 31, 2019 (34,586 ) Total right of use lease liabilities as of October 31, 2019 $ 115,910 |
Schedule of maturities of lease liabilities | Total maturities of lease liability as of October 31, 2019 are as follows: Total future minimum lease Present value Right of use payments discount lease liability 2020 $ 42,000 $ 5,463 $ 36,537 2021 42,000 3,402 38,598 2022 42,000 1,225 40,775 $ 126,000 $ 10,090 $ 115,91 0 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narraive) | Jul. 12, 2015USD ($) | Oct. 31, 2019USD ($)SegmentInstallment | Oct. 31, 2018USD ($) |
Product Information [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
Number of days for return policy | 5 days | ||
Return products from customers | $ 1,716 | $ 5,165 | |
Allowance | 10,409 | 9,320 | |
Inventory valuation reserves | 75,468 | 75,468 | |
Deposits on inventory | 57,330 | 57,330 | |
Purchase price machinery and equipment | $ 500,000 | ||
Number of installments | Installment | 4 | ||
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 be made after the first commercial production run of INSULTEX is completed. | ||
Advance payment for machinery and equipment | $ 100,000 | ||
Uninsured cash balances | 0 | 0 | |
Shipping and handling costs | 15,433 | 16,247 | |
FDIC insured coverage | 250,000 | ||
Deposit on equipment | $ 600,000 | 617,000 | |
Minimum [Member] | |||
Product Information [Line Items] | |||
Estimated useful lives of property and equipment | 5 years | ||
Maximum [Member] | |||
Product Information [Line Items] | |||
Estimated useful lives of property and equipment | 7 years | ||
Hunting & Swimming Lines of Apparel [Member] | |||
Product Information [Line Items] | |||
Inventory valuation reserves | $ 75,468 | $ 75,468 | |
Ketut Jaya [Member] | |||
Product Information [Line Items] | |||
Purchase price machinery and equipment | $ 700,000 | ||
Shipping and handling costs | $ 17,000 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Oct. 31, 2019 | Oct. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | $ 261,745 | $ 261,745 |
Less accumulated depreciation | 163,250 | 130,213 |
Property and equipment - net | 98,495 | 131,532 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 221,835 | 221,835 |
Containers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 14,900 | 14,900 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 11,083 | 11,083 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 4,806 | 4,806 |
Automobile [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | $ 9,121 | $ 9,121 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 33,037 | $ 33,588 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Debt Instrument [Line Items] | ||
Total Due to Stockholders | $ 96,100 | $ 145,350 |
Total Borrowings | 199,164 | 264,836 |
Less Due to Stockholders | 99,100 | 145,350 |
Less Current Portion of Notes Payable | 19,168 | 18,628 |
Total Long Term Portion of Notes Payable | 80,896 | 100,858 |
2.9% Note Payable Due July 13, 2035 [Member] | U.S. Small Business Administration [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 100,064 | 119,486 |
Roberta Riccelli [Member] | 10% Note Payable Due June 17, 2012 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 8,000 | |
Issuance date | Feb. 28, 2012 | |
Maturity term | 120 days | |
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date. | |
Total Due to Stockholders | $ 3,000 | 5,000 |
Corinthian Development [Member] | 10% Note Payable Due May 15, 2013 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 20,000 | |
Issuance date | Jan. 15, 2013 | |
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date. | |
Total Due to Stockholders | $ 10,000 | 10,000 |
Sol & Tina Waxman Family Foundation [Member] | 10% Note Payable Due January 5, 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 25,000 | |
Issuance date | Mar. 31, 2015 | |
Total Due to Stockholders | $ 0 | 30,250 |
Chief Executive Officer [Member] | 10% Note Payable Due November 22, 2013 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 90,000 | |
Issuance date | May 31, 2013 | |
Maturity term | 180 days | |
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date. | |
Total Due to Stockholders | $ 8,400 | 13,500 |
Chief Executive Officer [Member] | 10% Note Payable Due August 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 4,500 | |
Maturity term | 180 days | |
Description of maturity extended | No set maturity date. | |
Total Due to Stockholders | $ 4,500 | 0 |
Chief Executive Officer [Member] | 10% Note Payable Due September 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 36,500 | |
Maturity term | 180 days | |
Description of maturity extended | No set maturity date. | |
Total Due to Stockholders | $ 36,500 | 0 |
Chief Executive Officer [Member] | 2.9% Note Payable Due October 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 3,000 | |
Maturity term | 180 days | |
Description of maturity extended | No set maturity date. | |
Total Due to Stockholders | $ 3,000 | 0 |
Chief Executive Officer [Member] | 10% Note Payable Due February 7, 2018 [Member] | Riccelli Properties [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 40,672 | |
Issuance date | Aug. 7, 2017 | |
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date | |
Total Due to Stockholders | $ 32,200 | 36,600 |
Lawrence Fraser [Member} | 10% Note Payable Due June 1, 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 50,000 | |
Issuance date | May 29, 2018 | |
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date. | |
Total Due to Stockholders | $ 0 | $ 50,000 |
U.S. Small Business Administration [Member] | 2.9% Note Payable Due July 13, 2035 [Member] | ||
Debt Instrument [Line Items] | ||
Periodic installment | $ 1,820 | |
Frequency of periodic payment | Monthly |
BORROWINGS (Details 1)
BORROWINGS (Details 1) | Oct. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 118,268 |
2021 | 19,739 |
2022 | 20,319 |
2023 | 20,916 |
Thereafter | 19,922 |
Total | 199,164 |
2.9% Note Payable Due July 13, 2035 [Member] | |
Debt Instrument [Line Items] | |
2020 | 99,100 |
2021 | |
2022 | |
2023 | |
Thereafter | |
Total | 99,100 |
Notes Payable to Other [Member] | |
Debt Instrument [Line Items] | |
2020 | 19,168 |
2021 | 19,739 |
2022 | 20,319 |
2023 | 20,916 |
Thereafter | 19,922 |
Total | $ 100,064 |
BORROWINGS (Details Narrative)
BORROWINGS (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
10% Note Payable Due June 17, 2012 [Member] | Roberta Riccelli [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 8,000 | |
Maturity term | 120 days | |
Loans balance outstanding | $ 3,000 | $ 5,000 |
10% Note Payable Due May 15, 2013 [Member] | Corinthian Development [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | 20,000 | |
Loans balance outstanding | 10,000 | 10,000 |
10% Note Payable Due January 5, 2019 [Member] | Sol & Tina Waxman Family Foundation [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 25,000 | |
Number of shares collateral | 250,000 | |
Loans balance outstanding | $ 0 | 30,250 |
10% Note Payable Due November 22, 2013 [Member] | Chief Executive Officer [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 90,000 | |
Maturity term | 180 days | |
Loans balance outstanding | $ 9,900 | 13,500 |
10% Note Payable Due August 2019 [Member] | Chief Executive Officer [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 4,500 | |
Maturity term | 180 days | |
Loans balance outstanding | $ 36,500 | 0 |
10% Note Payable Due September 2019 [Member] | Chief Executive Officer [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 36,500 | |
Maturity term | 180 days | |
Loans balance outstanding | $ 4,500 | 0 |
2.9% Note Payable Due October 2019 [Member] | Chief Executive Officer [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 3,000 | |
Maturity term | 180 days | |
Loans balance outstanding | $ 3,000 | 0 |
10% Note Payable Due June 1, 2019 [Member] | Lawrence Fraser [Member} | ||
Debt Instrument [Line Items] | ||
Face amount | 50,000 | |
2.9% Note Payable Due July 13, 2035 [Member] | U.S. Small Business Administration [Member] | ||
Debt Instrument [Line Items] | ||
Periodic installment | $ 1,820 | |
Frequency of periodic payment | Monthly | |
Riccelli Properties [Member] | 10% Note Payable Due February 7, 2018 [Member] | Chief Executive Officer [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 40,672 | |
Loans balance outstanding | 32,200 | 36,600 |
U.S. Small Business Administration [Member] | 2.9% Note Payable Due July 13, 2035 [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | $ 100,064 | $ 119,486 |
EXCLUSIVE LICENSING AND MANUF_2
EXCLUSIVE LICENSING AND MANUFACTURING AGREEMENT (Details Narrative) - Ketut Jaya [Member] - Exclusive Licensing & Manufacturing Agreement [Member] | 12 Months Ended |
Oct. 31, 2019 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Description of agreement | Exclusive license to develop, use, sell, manufacture and market\rproducts related to or utilizing INSULTEX™, Korean Patent Number, (0426429) or any INSULTEX Technology. |
Total license term worldwide license, except for Korea and Japan | 40 years |
Initial license term | 10 years |
Description of license renewal option | An option to renew the License for up to three (3) successive ten (10) year terms. |
Licence exercised term | 10 years |
CONCENTRATIONS (Details Narrati
CONCENTRATIONS (Details Narrative) | 12 Months Ended | |
Oct. 31, 2019CustomerSupplier | Oct. 31, 2018Customer | |
INSULTEX [Member] | ||
Concentration Risk [Line Items] | ||
Number of supplier | Supplier | 1 | |
Revenues [Member] | Customer [Member] | ||
Concentration Risk [Line Items] | ||
Number of customers | Customer | 3 | 3 |
Concentration risk, percentage | 53.00% | 51.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Oct. 31, 2019 | Oct. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforward | $ 3,396,604 | $ 2,554,625 |
Depreciation | ||
Net deferred tax assets before valuation allowance | 3,396,604 | 2,554,625 |
Less: Valuation allowance | (3,396,604) | (2,554,625) |
Net deferred tax assets |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | 21.00% | 21.00% |
Effect of net operating losses | (21.00%) | (21.00%) |
Effective income tax rate | 0.00% | 0.00% |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Oct. 31, 2019USD ($) | |
Income Tax Disclosure [Abstract] | |
Net operating loss carryforwards | $ 5,700,000 |
Expiration date | Oct. 31, 2038 |
COMMITMENTS (Details Narrative)
COMMITMENTS (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Operating Leased Assets [Line Items] | ||
Rent expense, per month | $ 42,000 | $ 42,000 |
Frank Riccelli [Member] | ||
Operating Leased Assets [Line Items] | ||
Rent expense, per month | $ 3,500 | |
Description of lease agreement | The lease is based on a verbal agreement with month to month terms. |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenue | $ 27,239 | $ 49,033 | $ 30,359 | $ 109,344 | $ 82,167 | $ 34,149 | $ 17,163 | $ 116,203 | $ 215,975 | $ 249,682 |
Loss from operations | (320,176) | (138,081) | (123,097) | (227,764) | (146,807) | (145,870) | (155,805) | (138,990) | (809,118) | (587,472) |
Net Loss | $ (327,808) | $ (135,069) | $ (128,734) | $ (250,368) | $ (124,389) | $ (154,221) | $ (158,023) | $ (146,249) | $ (841,979) | $ (582,882) |
Weighted average shares outstanding (in shares) | 29,938,602 | 28,934,049 | 28,211,021 | 27,228,038 | 27,492,223 | 27,228,038 | 27,033,872 | 26,732,245 | 28,708,182 | 27,122,315 |
Basic loss per share (in dollars per share) | $ (0.011) | $ (0.005) | $ (0.005) | $ (0.009) | $ (0.005) | $ (0.006) | $ (0.006) | $ (0.005) | $ (0.029) | $ (0.021) |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||||||||
Total Revenues | $ 27,239 | $ 49,033 | $ 30,359 | $ 109,344 | $ 82,167 | $ 34,149 | $ 17,163 | $ 116,203 | $ 215,975 | $ 249,682 |
Assets | 1,568,510 | 1,702,533 | 1,568,510 | 1,702,533 | ||||||
Capital Expenditures | 0 | 4,258 | ||||||||
Depreciation | 33,037 | 33,588 | ||||||||
Apparel Segment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total Revenues | 135,506 | 117,147 | ||||||||
Assets | 456,125 | 500,208 | 456,125 | 500,208 | ||||||
Capital Expenditures | 0 | 4,258 | ||||||||
Depreciation | 9,410 | 9,961 | ||||||||
Housewrap Segment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total Revenues | 80,469 | 132,535 | ||||||||
Assets | $ 1,112,385 | $ 1,202,325 | 1,112,385 | 1,202,325 | ||||||
Capital Expenditures | 0 | 0 | ||||||||
Depreciation | $ 23,627 | $ 23,627 |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) | 12 Months Ended |
Oct. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Oct. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Class of Stock [Line Items] | |||||||
Number of shares issued during the period | 425,000 | ||||||
Value of shares issued during the period | $ 90,000 | $ 207,440 | $ 311,560 | ||||
Value of shares issued for services | $ 35,500 | $ 69,900 | |||||
Number of debt converted | 550,000 | ||||||
Debt conversion price (in dollars per share) | $ 0.10 | $ 0.10 | |||||
Loan [Member] | |||||||
Class of Stock [Line Items] | |||||||
Value of debt converted | $ 50,000 | ||||||
Accrued interest [Member] | |||||||
Class of Stock [Line Items] | |||||||
Value of debt converted | $ 5,000 | ||||||
Maximum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share price (in dollars per share) | $ 0.20 | $ 0.20 | |||||
Minimum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share price (in dollars per share) | 0.25 | 0.25 | |||||
Three Individuals [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued during the period | 356,250 | 351,000 | |||||
Value of shares issued during the period | $ 105,000 | $ 111,560 | |||||
Number of shares issued for services | 210,000 | ||||||
Value of shares issued for services | $ 35,500 | ||||||
Three Individuals [Member] | Maximum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share price (in dollars per share) | 0.20 | $ 0.32 | $ 0.32 | $ 0.20 | |||
Three Individuals [Member] | Minimum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share price (in dollars per share) | 0.15 | 0.25 | 0.30 | $ 0.15 | |||
One Individuals [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued during the period | 25,000 | ||||||
Value of shares issued during the period | $ 5,000 | ||||||
Share price (in dollars per share) | $ 0.20 | $ 0.40 | |||||
Number of shares issued for services | 5,000 | 50,000 | |||||
Value of shares issued for services | $ 1,000 | $ 20,000 | |||||
Two Individuals [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share price (in dollars per share) | $ 0.18 | ||||||
Number of shares issued for services | 55,000 | ||||||
Value of shares issued for services | $ 9,900 | ||||||
Two Shareholders [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share price (in dollars per share) | $ 0.80 | $ 0.80 | |||||
Number of shares issued for services | 130,000 | ||||||
Value of shares issued for services | $ 39,000 | ||||||
Nine Investors [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued during the period | 1,867,000 | ||||||
Value of shares issued during the period | $ 264,040 | ||||||
Nine Investors [Member] | Maximum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share price (in dollars per share) | 0.17 | $ 0.17 | |||||
Nine Investors [Member] | Minimum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share price (in dollars per share) | $ 0.08 | $ 0.08 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Going Concern Details Narrative Abstract | ||||||||||
Net loss | $ (327,808) | $ (135,069) | $ (128,734) | $ (250,368) | $ (124,389) | $ (154,221) | $ (158,023) | $ (146,249) | $ (841,979) | $ (582,882) |
Net cash used in operating activities | (266,446) | (418,948) | ||||||||
Accumulated deficit | $ (9,770,673) | $ (8,928,694) | $ (9,770,673) | $ (8,928,694) |
RIGHT OF USE ASSETS (Details)
RIGHT OF USE ASSETS (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2019 | Jul. 31, 2019 | |
Notes to Financial Statements | ||
Total present value of right of use assets under lease agreements | $ 150,496 | |
Amortization of right of use assets | (34,586) | |
Total right of use assets | 115,910 | $ 115,910 |
Less current portion due within one year | 36,537 | |
Long-term right of use asset | 79,373 | |
Total present value of future lease payments | 150,496 | |
Principal payments made | (34,586) | |
Total right of use lease liabilities | $ 115,910 | $ 115,910 |
RIGHT OF USE ASSETS (Details 1)
RIGHT OF USE ASSETS (Details 1) - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Notes to Financial Statements | ||
2020 | $ 36,537 | |
2021 | 38,598 | |
2022 | 40,775 | |
Right of use asset | $ 115,910 | $ 115,910 |
RIGHT OF USE ASSETS (Details Na
RIGHT OF USE ASSETS (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Jul. 31, 2018 | Oct. 31, 2019 | Jul. 31, 2019 | |
Notes to Financial Statements | |||
Lease expiration date | Jun. 30, 2022 | ||
Average commercial real estate interest rate | 5.50% | ||
Amortization expense related to right of use assets | $ 0 | $ 22,174 | |
Present value of lease | $ 150,496 |
RIGHT OF USE LEASE LIABILITIES
RIGHT OF USE LEASE LIABILITIES (Details) | Oct. 31, 2019USD ($) |
Notes to Financial Statements | |
Total future minimum lease payments | $ 150,496 |
Less present value discount | (34,586) |
Total right of use lease liabilities | $ 115,910 |
RIGHT OF USE LEASE LIABILITIE_2
RIGHT OF USE LEASE LIABILITIES (Details 1) | Oct. 31, 2019USD ($) |
Future minimum lease payments | |
2020 | $ 42,000 |
2021 | 42,000 |
2022 | 42,000 |
Total future minimum lease payments | 126,000 |
Present value discount | |
2020 | 5,463 |
2021 | 3,402 |
2022 | 1,225 |
Present value discount | 10,090 |
Right of use lease liabilities | |
2020 | 36,537 |
2021 | 38,598 |
2022 | 40,775 |
Right of use lease liablilties | $ 115,910 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 5 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Nov. 30, 2019 | Oct. 31, 2018 | Mar. 16, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Loan from related party | $ 47,600 | $ 53,350 | ||||
Sale of stock | $ 90,000 | $ 207,440 | $ 311,560 | |||
Number stock sold (in shares) | 425,000 | |||||
Minimum [Member] | ||||||
Share price (in dollars per share) | $ 0.25 | $ 0.25 | ||||
Maximum [Member] | ||||||
Share price (in dollars per share) | $ 0.20 | $ 0.20 | ||||
Subsequent Event [Member] | ||||||
Sale of stock | $ 121,500 | |||||
Number stock sold (in shares) | 750,000 | |||||
Subsequent Event [Member] | Chief Executive Officer [Member] | ||||||
Loan from related party | $ 38,000 | $ 1,500 | ||||
Subsequent Event [Member] | Minimum [Member] | ||||||
Share price (in dollars per share) | $ 0.13 | |||||
Subsequent Event [Member] | Maximum [Member] | ||||||
Share price (in dollars per share) | $ 0.20 |