A UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13l OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended ~~July~~January 31, ~~2022~~2023

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from _______ to ________.

Commission File Number: 000-51791

INNOVATIVE DESIGNS, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	03-0465528
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

124 Cherry Street

Pittsburgh, Pennsylvania 15223

(Address of Principal Executive Offices, Zip Code)

(412) 799-0350

(Issuer’s Phone Number Including Area Code)

N/A

(Former Name or Former Address, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES ☐ ☒ NO ☐☒

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of regulation S-T during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files). YES ☒[X] NO ☐[ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting Company” in Rule 12b-2 of the Exchange Act.

(Check One)

Large Accelerated Filer ☐	Accelerated Filer ☐

Non-accelerated Filer ☐	Smaller reporting company ☒

☐

(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

As of ~~September~~March 1413, ~~2022~~2023, there were 3435,~~475~~262,560 shares of the Registrant’s common stock, par value $.0001 per share, outstanding.

Transitional Small Business Disclosure Format: YES ☐ NO ☒

Innovative Designs, Inc.

Index

Form 10-Q for the Quarter Ended ~~July~~January 31, ~~2018~~2023

	Part I -- Financial Information	Page No.
Item 1.	Condensed Financial Statements (Unaudited)
	Condensed Balance Sheets as of July 31, 2022 (Unaudited) and October 31, 2021	1
	Condensed Balance Sheets as of January 31, 2023 (Unaudited) And October 31, 2022	1
	Condensed Statements of Operations for the Three And Nine Month Periods Ended July 31, 2022 and 2021 (Unaudited)	3
	Condensed Statements of Operations for the Three Month Periods Ended January 31, 2023 and 2022 (Unaudited)	3
	Condensed Statements of Changes in Stockholders’ Equity as of July 31, 2022 (Unaudited) and October 31, 2021	4
	Condensed Statements of Changes in Stockholders’ Equity as of January 31, 2023 (Unaudited) and October 31, 2022	4
	Condensed Statements of Cash Flows for the Nine Month Periods Ended July 31, 2022 and 2021 (Unaudited)	5
	Condensed Statements of Cash Flows for the Three Month Periods Ended January 31, 2023 and (Unaudited) 2022	5
	Notes to the Condensed Financial Statements	6 ~~- 11~~
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	~~12 - 15~~11
	Part II -- Other Information	14
Items 1, 2, 3, and 4T.		16
Items	1, 2, 3, 4 and 4T.	14
Item 6.	Exhibits	1715

iINNOVATIVE DESIGNS, INC. CONDENSED BALANCE SHEETS JANUARY 31, 2023 (UNAUDITED) AND OCTOBER 31, 2022

ITEM 1. CONDENSED FINANCIAL STATEMENTS


	January 31, 2023		October 31, 2022
ASSETS
CURRENT ASSETS
Cash	$	169,395	$	263,293
Accounts receivable - net of allowance for doubtful accounts of $-0- and $5,860, respectively		8,067		11,203
Inventory - net of obsolete inventory reserve of $75,468		643,329		494,580

Total current assets		820,791		769,076

PROPERTY AND EQUIPMENT - NET		25,784		5,960

OTHER ASSETS
Inventory on consignment		—		1,625
Deposits on inventory		—		80,000
Advance to employees		13,200		13,200
Deposits on equipment		607,370		607,370
Total other assets		620,570		702,195

TOTAL ASSETS	$	1,467,145	$	1,477,231

~~INNOVATIVE~~The ~~DESIGNS,~~accompanying ~~INC.~~notes ~~CONDENSED~~are ~~BALANCE~~an ~~SHEETS~~integral ~~JULY~~part ~~31,~~of ~~2022~~these ~~(UNAUDITED)~~condensed ~~AND~~financial ~~OCTOBER 31, 2021~~statements.

	July 31, 2022		October 31, 2021
ASSETS
CURRENT ASSETS
Cash	$	159,510	$	480,451
Accounts receivable - net of allowance for doubtful accounts of $5,860		9,613		1,201
Inventory - net of obsolete inventory reserve of $75,468		531,484		542,588
Current portion of right of use asset		10,452		40,962
Receivable due		260,000		—
Total current assets		971,059		1,065,202
PROPERTY AND EQUIPMENT - NET		6,332		7,450
OTHER ASSETS
Inventory on consignment		1,625		1,625
Deposits on inventory		40,000		—
Advance to employees		8,200		8,200
Deposits on equipment		607,370		600,000
Total other assets		657,195		609,825
TOTAL ASSETS	$	1,634,586	$	1,682,477

~~The~~INNOVATIVE ~~accompanying~~DESIGNS, ~~notes~~INC. ~~are~~CONDENSED anBALANCE ~~integral~~SHEETS ~~part~~JANUARY of31, ~~these~~2023 ~~condensed~~(UNAUDITED) ~~financial~~AND ~~statements.~~OCTOBER 31, 2022

	January 31, 2023			October 31, 2022
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	176,152		$	162,063
Current portion of notes payable		20,305			20,128
Accrued interest expense		50,992			46,345
Due to stockholders		96,458			110,631
Accrued expenses		3,778			3,778
Total current liabilities		347,685			342,945

LONG-TERM LIABILITIES
Long-term portion of due to stockholders		—			66,667
Long-term portion of notes payable		59,542			64,547
Total long-term liabilities		59,542			131,214

TOTAL LIABILITIES		407,227			474,159

STOCKHOLDERS' EQUITY
Preferred stock, $0.0001 par value, 25,000,000 shares authorized		—			—
Common stock, $0.0001 par value, 100,800,000 shares authorized, and 35,177,560 and 34,650,560 issued and outstanding		3,520			3,467
Additional paid-in capital		11,451,071			11,335,184
Accumulated deficit		(10,394,673	)		(10,335,579	)
Total stockholders' equity		1,059,918			1,003,072

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,467,145		$	1,477,231

	July 31, 2022			October 31, 2021
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	294,306		$	228,667
Current portion of notes payable		18,628			18,628
Current portion of lease liability		10,452			40,962
Accrued interest expense		40,496			43,136
Due to stockholders		119,630			188,632
Accrued expenses		5,223			25,037
Total current liabilities		488,735			545,062
LONG-TERM LIABILITIES
Long-term portion of due to stockholders		66,667			133,332
Long-term portion of notes payable		71,122			71,722
Total long-term liabilities		137,789			205,054
TOTAL LIABILITIES		626,524			750,116
STOCKHOLDERS' EQUITY
Preferred stock, $0.0001 par value, 25,000,000 shares authorized					—
Common stock, $0.0001 par value, 100,800,000 shares authorized, and 34,375,560 and 33,315,560 issued and outstanding		3,454			3,333
Common stock to be issued
Additional paid-in capital		11,310,197			11,039,118
Accumulated deficit		(10,305,589	)		(10,110,090	)
Total stockholders' equity		1,008,062			932,361
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,634,586		$	1,682,477

~~The~~INNOVATIVE ~~accompanying~~DESIGNS, ~~notes~~INC. ~~are~~CONDENSED anSTATEMENTS ~~integral~~OF ~~part~~OPERATIONS ofTHREE ~~these~~MONTHS ~~condensed~~PERIODS ~~financial~~ENDED ~~statements.~~JANURARY 31, 2023 AND 2022 (UNAUDITED)


	Three Months Ended January 31,
	2023			2022

REVENUES - NET	$	71,647		$	62,400

OPERATING EXPENSES:
Cost of sales		17,010			32,346
Selling, general and administrative expenses		114,651			150,618
Total Operating Expenses		131,661			182,964

LOSS FROM OPERATIONS		(60,014	)		(120,564	)

OTHER INCOME (EXPENSE)
Miscellaneous income (expense)		7,519			—
Interest expense		(6,599	)		(11,476	)
Total other income (expense)		920			(11,476	)

NET LOSS	$	(59,094	)	$	(132,040	)

PER SHARE INFORMATION - BASIC
Net Loss Per Common Share	$	(0.002	)	$	(0.004	)

Weighted Average Number of Common Shares Outstanding		34,914,060			33,510,560

PER SHARE INFORMATION - DILUTED
Net Loss Per Common Share	$	(0.002	)	$	(0.004	)

Weighted Average Number of Common Shares Outstanding		35,908,060			34,884,560

~~INNOVATIVE~~The ~~DESIGNS,~~accompanying ~~INC.~~notes ~~CONDENSED~~are ~~STATEMENTS~~an OFintegral ~~OPERATIONS~~part ~~THREE~~of ~~AND~~these ~~NINE~~condensed ~~MONTHS~~financial ~~ENDED JULY 31, 2022 AND 2021 (UNAUDITED)~~statements.

	Three Months Ended July 31,						Nine Months Ended July 31,
	2022			2021			2022			2021
REVENUES - NET	$	135,048		$	110,475		$	235,164		$	176,388
OPERATING EXPENSES:
Cost of sales		56,224			50,712			109,884			78,352
Selling, general and administrative expenses		115,757			66,845			546,330			275,998
Total Operating Expenses		171,981			117,557			656,214			354,350
LOSS FROM OPERATIONS		(36,933	)		(7,082	)		(421,050	)		(177,962	)
OTHER INCOME (EXPENSE)
Miscellaneous income (expense)		260,000			33,652			260,000			62,475
Interest expense		(10,710	)		(13,417	)		(34,450	)		(30,810	)
Total other income (expense)		249,290			20,235			225,550			31,665
NET (LOSS) INCOME	$	212,357		$	13,153		$	(195,500	)	$	(146,297	)
PER SHARE INFORMATION - UNDILUTED
Net Loss Per Common Share	$	0.006		$	0.000		$	(0.006	)	$	(0.005	)
Weighted Average Number of Common Shares Outstanding		33,845,560			32,216,560			33,845,560			31,776,560
PER SHARE INFORMATION - DILUTED
Net Loss Per Common Share	$	0.006		$	0.000		$	(0.006	)	$	(0.005	)
Weighted Average Number of Common Shares Outstanding		34,902,893			32,229,060			34,902,893			31,789,060

~~The~~INNOVATIVE ~~accompanying~~DESIGNS, ~~notes~~INC. ~~are~~CONDENSED anSTATEMENTS ~~integral~~OF ~~part~~CHANGES ofIN ~~these~~STOCKHOLDERS’ ~~condensed~~EQUITY ~~financial~~THREE ~~statements.~~MONTHS PERIODS ENDED JANUARY 31, 2023 AND 2022 (UNAUDITED)


	Common Stock				Common Stock To be		Additional Paid-in		Accumulated
	Shares		Amount		Issued		Capital		Deficit			Total

Balance at October 31, 2022		34,650,560	$	3,467	$	—	$	11,335,184	$	(10,335,579	)	$	1,003,072

Sale of stock		500,000		50		—		109,950		—			110,000

Shares issued for services		27,000		3				5,937					5,940

Net loss		—		—		—		—		(59,094	)		(59,094	)

Balance at January 31, 2023		35,177,560		3,520		—		11,451,071		(10,394,673	)		1,059,918

Balance at October 31, 2021		33,315,560		3,333		—		11,039,118		(10,110,090	)		932,361

Sale of stock		340,000		34		—		60,966		—			61,000

Shares issued for services		50,000		5				9,995					10,000

Net loss		—		—		—		—		(132,040	)		(132,040	)

Balance at January 31, 2022		33,705,560		3,372		—		11,110,079		(10,242,130	)		871,321

~~INNOVATIVE~~The ~~DESIGNS,~~accompanying ~~INC.~~notes ~~CONDENSED~~are ~~STATEMENTS~~an OFintegral ~~CHANGES~~part INof ~~STOCKHOLDERS’~~these ~~EQUITY~~condensed ~~THREE~~financial ~~AND NINE MONTHS ENDED JULY 31, 2022 AND 2021 (UNAUDITED)~~statements.

	Common Stock				Common Stock To be		Additional Paid-in		Accumulated
	Shares		Amount		Issued		Capital		Deficit			Total
Balance at October 31, 2021		33,315,560	$	3,333	$	—	$	11,039,118	$	(10,110,090	)	$	932,361
Sale of stock		340,000		34		—		60,966		—			61,000
Shares issued for services		50,000		5				9,995					10,000
Net loss		—		—		—		—		(132,040	)		(132,040	)
Balance at January 31, 2022		33,705,560		3,372		—		11,110,079		(10,242,130	)		871,321
Sale of stock		120,000		12				25,188					25,200
Shares issued for services		700,000		70				174,930					175,000
Net loss						—				(275,816	)		(275,816	)
Balance at April 30, 2022		34,525,560		3,454		—		11,310,197		(10,517,946	)		795,705
Sale of stock		—		—				—		—			—
Shares issued for services		—		—				—		—			—
Net income						—				212,357			212,357
Balance at July 31, 2022		34,525,560	$	3,454	$	—	$	11,310,197	$	(10,305,589	)	$	1,008,062
Balance at October 31, 2020		31,211,560	$	3,123	$	—	$	10,574,828	$	(9,730,028	)	$	847,923
Sale of stock		—		—		—		—		—			—
Shares issued for services		100,000		10		—		24,990		—			25,000
Net loss		—		—		—		—		(35,965	)		(35,965	)
Balance at January 31, 2021		31,311,560		3,133		—		10,599,818		(9,765,993	)		836,958
Sale of stock		280,000		28				69,972		—			70,000
Shares issued for services		500,000		50				63,950					64,000
Net loss		—		—		—		—		(123,485	)		(123,485	)
Balance at April 30, 2021		32,091,560		3,211		—		10,733,740		(9,889,478	)		847,473
Sale of stock		240,000		24				59,976					60,000
Shares issued for services		10,000		1				1,999					2,000
Net Income						—				13,153			13,153
Balance at July 31, 2021		32,341,560	$	3,236	$	—	$	10,795,715	$	(9,876,325	)	$	922,626

~~The~~INNOVATIVE ~~accompanying~~DESIGNS, ~~notes~~INC. ~~are~~CONDENSED anSTATEMENTS ~~integral~~OF ~~part~~CASH ofFLOWS ~~these~~THREE ~~condensed~~MONTHS ~~financial~~ENDED ~~statements.~~JANUARY 31, 2023 AND 2022 (UNAUDITED)


	For the Three Month Periods
	Ended
	January 31, 2023			January 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(59,094	)		(132,040	)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for services		5,940			10,000
Depreciation		769			373
Amortization of right of use asset		—			10,031
Bad debt					—
Gain on sale of asset		(7,519	)
(Increase) decrease from changes in:
Accounts receivable		3,136			(8,282	)
Inventory		(147,124	)		(5,686	)
Deposits on inventory		80,000			(30,000	)
Increase (decrease) from changes in:
Accounts payable		14,089			9,672
Lease liability		—			(10,031	)
Accrued interest expense		4,647			(3,389	)
Accrued expenses		—			(15,508	)
Net cash used in operating activities		(105,156	)		(174,860	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment		(20,593	)		—
Gain on disposal of equipment		7,519			—
Net cash used in investing activities		(13,074	)		—

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock		110,000			61,000
Payments on stockholder advances		(80,840	)		(76,666	)
Payments on notes payable		(4,828	)		—
Net cash provided by financing activities		24,332			(15,666	)

Net change in cash		(93,898	)		(190,526	)

CASH, BEGINNING OF PERIOD		263,293			480,451

CASH, END OF THE PERIOD	$	169,395		$	289,925

Supplemental disclosure of cash flow information:
Cash paid during period for interest	$	1,953		$	14,865

Non-cash investment activities - common stock issue for services	$	5,940		$	10,000

Cash paid during period for taxes	$	—		$	—

	$	—

~~INNOVATIVE~~The ~~DESIGNS,~~accompanying ~~INC.~~notes ~~CONDENSED~~are ~~STATEMENTS~~an OFintegral ~~CASH~~part ~~FLOWS~~of ~~NINE~~these ~~MONTHS~~condensed ~~ENDED~~financial ~~JULY 31, 2022 AND 2021 (UNAUDITED)~~statements.

	Nine Months Ended July 31,
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(195,500	)	$	(146,297	)
Adjustments to reconcile net loss to net cash used in operating activities:
Allowance for doubtful accounts		—			—
Common stock issued for services		185,000			66,000
Depreciation		1,118			24,981
Amortization of right of use asset		30,510			28,881
(Increase) decrease from changes in:
Accounts receivable		(8,412	)		16,844
Inventory		11,104			25,821
Deposits on inventory		(40,000	)		—
Receivable due		(260,000	)
Increase (decrease) from changes in:
Accounts payable and accrued expenses		45,826			(66,534	)
Accrued interest expense		(2,640	)		(11,420	)
Net cash used in operating activities		(232,994	)		(61,724	)
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in deposit on Equipment		(7,370	)		—
Net cash used in investing activities		(7,370	)		—
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock		86,200			155,000
Forgivness from loans		—			(33,652	)
Proceeds from shareholder advances		—			250,000
Payments on shareholder advances		(135,667	)		—
Payments on lease liability		(30,510	)		(28,881	)
Proceeds on notes payable		1,818			—
Payments on notes payable		(2,418	)		(1,820	)
Net cash provided by financing activities		(80,577	)		340,647
Net change in cash		(320,941	)		278,923
CASH, BEGINNING OF YEAR		480,451			48,009
CASH, END OF THE PERIOD	$	159,510		$	326,932
Supplemental disclosure of cash flow information:
Cash paid for interest	$	37,090		$	39,100
Cash paid for taxes	$	—		$	—

~~The~~INNOVATIVE ~~accompanying~~DESIGNS, ~~notes are an integral part of these condensed financial statements~~INC.

5NOTES TO THE CONDENSED FINANCIAL STATEMENTS

~~INNOVATIVE~~Three ~~DESIGNS~~Month Periods Ended January 31, ~~INC.~~2023 and 2022 (Unaudited)

~~NOTES~~NOTE TO1. ~~THE~~BASIS ~~CONDENSED~~OF ~~FINANCIAL STATEMENTS~~ PRESENTATION

~~Three~~In ~~and~~the ~~Nine~~opinion ~~Month~~of ~~Periods~~management, ~~Ended~~the ~~July~~accompanying unaudited 31condensed financial statements contain all adjustments necessary to present fairly Innovative Designs, ~~2022~~Inc.’s financial position as of January 31, 2023, the changes therein for the three periods then ended and ~~2021~~the ~~(Unaudited)~~results of operations for the three periods ended January, 2023 and 2022.

~~NOTE~~The 1condensed 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. ~~BASIS~~For OFadditional ~~PRESENTATION~~information, reference is made to the Innovative Designs, Inc.’s annual report on Form 10-K for the fiscal year ended October 31, 2022. The results of operations for the three periods ended January, 2023 and 2022 are not necessarily indicative of operating results for the full year.

InNOTE ~~the opinion of management, the accompanying unaudited financial statements contain all adjustments necessary to present fairly Innovative Designs, Inc~~2.’s ~~financial~~RIGHT ~~position as~~OF ofUSE ~~July~~ASSETS ~~31,~~AND ~~2022,~~LEASE ~~the changes therein for the three and nine month periods then ended and the results of operations for the three and nine month periods ended July 31, 2022 and 2021.~~LIABILITIES

~~The~~During ~~financial~~the ~~statements~~quarter ~~included~~ended inApril ~~the~~30, 2019, ~~Form~~the ~~10-Q~~Company ~~are~~implemented ~~presented~~Accounting inStandards ~~accordance~~Update ~~with~~2016-02, leases. Under the ~~requirements~~new ofguidance, ~~the~~a ~~Form~~lessee ~~and~~must dorecord ~~not~~a ~~include~~liability ~~all~~for oflease payments ~~the~~(referred ~~disclosures~~to ~~required~~as bythe ~~accounting principles~~lease ~~generally~~liability) ~~accepted~~and inan asset for the ~~United~~right ~~States~~to ofuse ~~America.~~the ~~For~~leased ~~additional~~asset ~~information,~~during ~~reference~~the islease ~~made~~term (referred to as the ~~Innovative~~right ~~Designs, Inc.’s~~of ~~annual~~use ~~report~~asset) onfor ~~Form~~all ~~10-K~~leases, ~~for~~regardless ~~the~~of ~~fiscal~~whether ~~year~~they ~~ended~~are ~~October~~designated ~~31,~~as ~~2021.~~finance ~~The~~or ~~results~~operating ofleases. ~~operations~~This ~~for~~election requires the ~~three~~lessee ~~and~~to ~~nine~~recognize ~~month periods~~lease ~~ended~~expense ~~July~~on ~~31,~~a ~~2022~~straight-line ~~and~~basis ~~2021~~over ~~are~~the ~~not~~lease ~~necessarily~~term. ~~indicative~~The right of ~~operating~~use ~~results~~assets ~~for~~and corresponding right of use liabilities have been recorded using the ~~full~~present ~~year~~value of the leases.

NOTE 23. ~~RIGHT~~GOING ~~OF USE ASSETS AND LEASE LIABILITIES~~CONCERN

~~During~~These ~~the~~condensed ~~quarter~~financial ~~ended~~statements ~~April~~have been ~~30,~~prepared ~~2019~~on a going concern basis, which implies that the Company ~~implemented~~will ~~Accounting~~continue ~~Standards~~to ~~Update~~realize ~~2016-02,~~its ~~Leases.~~assets ~~Under~~and discharge its liabilities in the ~~new~~normal ~~guidance,~~course aof ~~lessee~~business. ~~must~~The beCompany ~~recorded~~had a ~~liability~~net ~~for lease~~loss ~~payments~~of (~~referred~~$59,094) toand asa ~~the~~negative ~~lease~~cash ~~liability)~~flow ~~and~~from anoperations ~~asset~~of ($105,156) for the three ~~right~~month toperiod ~~use~~ended ~~the~~January ~~leased~~31, ~~asset~~2023. ~~during~~In addition, the ~~lease~~Company ~~term~~has ~~(referred to~~an ataccumulated ~~the~~deficit ~~right~~ of ~~use asset~~($10,394,673). ~~for~~Management’s ~~all~~plans include ~~leases~~cash receipts through sales, ~~regardless~~sales of ~~whether~~Company ~~they~~stock, ~~are~~and ~~designated~~borrowings asfrom ~~finance~~private orparties. ~~operating~~These ~~leases.~~factors ~~This~~raise ~~election~~substantial doubt ~~requires~~regarding the ~~lessee~~Company’s ability to ~~recognize~~continue ~~lease~~as ~~expense~~a ongoing aconcern ~~straight-line~~for ~~basis~~a ~~over~~period ~~the~~of ~~lease~~one ~~term.~~year ~~The~~from ~~right~~the issuance of ~~use~~these ~~assets~~condensed ~~and corresponding~~financial ~~right~~statements. ofThese ~~use~~condensed ~~liabilities~~financial ~~have~~statements ~~been~~do ~~recorded~~not ~~using~~include any adjustments to the ~~present~~recoverability ~~value~~and classification of ~~the~~recorded ~~leases.~~asset amounts ~~See~~and ~~Notes~~classification 11of ~~and~~liabilities 12that ~~within~~might be necessary should the ~~financial~~Company ~~statement for~~be ~~additional~~unable ~~disclosure~~to oncontinue ~~leases~~as a going concern.

NOTE 34. ~~GOING~~ACCOUNTS ~~CONCERN~~RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

~~These~~Management ~~financial~~evaluates ~~statements~~its ~~have~~receivables ~~been prepared~~ on a quarterly ~~going concern~~ basis, ~~which~~to ~~implies~~assess ~~that~~ the ~~Company~~validity ~~will~~of ~~continue~~remaining toreceivables. ~~realize~~Management ~~its~~has ~~assets~~determined ~~and~~that ~~discharge~~there ~~its~~is ~~liabilities~~significant indoubt ~~the~~regarding ~~normal~~the ~~course~~receivable ofbalance ~~business.~~over ~~The~~90 ~~Company~~days ~~had a net loss~~ of ($~~195,500)~~-0- and ~~a negative cash flow from operations of (~~$~~232~~5,~~994)~~860 ~~for~~January ~~the~~31, ~~nine~~2023 ~~month period~~and ~~ended~~October ~~July~~ 31, 2022~~. In addition~~, ~~the Company has an accumulated deficit of ($10,305,589)~~respectively. Management’s ~~plans~~has ~~include~~applied ~~cash receipts~~an ~~through sales, sales of Company stock, and borrowings from private parties. These factors raise substantial doubt regarding the~~allowance ~~Company’s~~on ~~ability~~all tobalances ~~continue~~in asexcess ~~a going concern for a period~~ of ~~one~~90 ~~year from the issuance of these financial statements~~days. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

~~NOTE 4. ACCOUNTS RECEIVABLE~~6

~~Management~~INNOVATIVE 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 $5DESIGNS,~~860~~ ~~as of the July 31, 2022 and October 31, 2021~~INC. ~~Management has applied an allowance on all balances in excess of 90 days.~~

6NOTES TO THE CONDENSED FINANCIAL STATEMENTS

~~INNOVATIVE~~Three ~~DESIGNS~~Month Periods Ended January 31, ~~INC.~~2023 and 2022 (Unaudited)

~~NOTES~~NOTE TO5. ~~THE~~OPENING ~~CONDENSED~~AND ~~FINANCIAL~~CLOSING ~~STATEMENTS~~ BALANCES OF RECEIVABLES

~~Three~~The ~~and~~opening ~~Nine~~balance ~~Month~~of ~~Periods~~accounts ~~Ended~~receivables was ~~July~~$11,203 31which was net of the allowance for doubtful accounts of $5,860. ~~2022~~The ending balance of accounts receivable for the three month ~~and~~period ~~2021~~ending ~~(Unaudited)~~January 31, 2023 was $8,067. There was not an allowance for doubtful accounts at the end of the period.

NOTE 56. 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. The Company has ~~decided~~discontinued ~~to discontinue~~ the manufacturing of its hunting and swimming line of apparel. The Company has booked a reserve against apparel inventory at ~~July~~January 31, ~~2022~~2023 and October 31, ~~2021~~2022 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~~ throughout the year and make adjustments as needed.

NOTE 67. EARNINGS PER SHARE

The Company calculates net income (loss) per share in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 260 “”Earnings per Share”. Basic earnings (loss) per share is calculated by dividing income (loss) by the weighted average number of common shares outstanding for the period. During the periods presented, the Company only has common stock outstanding. In 2021, the Company issued a convertible debt instrument ~~and has subsequently retired this debt in May of 2022~~. In addition, the Company also has stock warrants of 994,000 and ~~860~~1,254,000 as of ~~July~~January 31, ~~2022~~2023 and ~~2021~~2022, respectively. The Company has calculated diluted earnings per share utilizing the outstanding stock warrants and convertible debt.

NOTE 78. INCOME TAXES

The Company accounts for income taxes in accordance with ASC Topic 740 "”Income Taxes"”, which requires an asset and liability approach for financial reporting purposes.

Deferred income taxes are provided for differences between the tax bases of assets and liabilities and the financial reporting amounts at the end of the period, and for net operating loss and tax credit carryforwards available to offset future taxable income. Changes in enacted tax rates or laws result in adjustments to recorded deferred tax assets and liabilities in the periods in which the tax laws are enacted or tax rates are changed. The Company will continue to evaluate its income tax obligation throughout the year and will record a tax provision when it is necessary.

NOTE 89. 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 $2115,~~199~~125 and $68,~~400~~647 for the ~~nine~~three month periods ended ~~July~~January 31, ~~2022~~2023 and ~~2021~~2022, respectively.

INNOVATIVE DESIGNS, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

Three ~~and Nine~~ Month Periods Ended January ~~July~~ 31, ~~2022~~ 2023 and ~~2021~~2022 (Unaudited)

NOTE 910. COMMON STOCK

During the ~~nine~~three month period ended ~~July~~ January 31, ~~2022~~ 2023, the Company sold ~~460~~500,000 shares of common stock to ~~seven~~one ~~investors~~investor for total proceeds of $86110,~~200~~000 and issued ~~750~~27,000 shares to ~~eight~~one ~~investors~~investor for services. The stock was issued ~~between~~at $0.1722 ~~and $0.25~~ per share.

During the ~~nine~~three month period ended ~~July~~ January 31, ~~2021~~ 2022, the Company sold ~~520~~340,000 shares of common stock to ~~twelve~~five investors for total proceeds of $~~130~~61,000 and issued ~~610~~50,000 shares to ~~nine~~one ~~investors~~investor for services. The stock was issued between $0.1217 and $0.25 per share.

NOTE 1011. DEPOSITS ON EQUIPMENT

On July 12, 2015, the Company reached an ~~agreement~~ agreement with Ketut Jaya to purchase the machinery and equipment utilized to produce the INSULTEX material. The purchase price is $700,000 ~~which~~ ~~was~~and to be ~~paid~~made in four installments. The first installment of $300,000 ~~was~~is to be ~~paid~~made at the execution of the agreement. The second installment of $200,000 ~~was~~is to be ~~paid~~made when the machinery and equipment is ready to be shipped to the United States. The third installment of $100,000 is to be ~~paid~~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. As of ~~April~~October 3031, ~~2020~~2018, the Company has made payments of $500,000 in accordance with the agreement and made a $100,000 pre-payment as the machine is not yet producing INSULTEX. ~~Additionally,~~During ~~the Company has incurred $17~~2019,~~000~~ ~~of additional expenses related to shipping, site improvements and installation of~~ the ~~equipment. Due to various environmental regulations that must be met and other costs to assemble the machine the~~ Company ~~expects~~determined ~~to incur costs in excess of~~ the ~~current deposit~~ ~~agreement. Management of the Company currently cannot reasonably estimate the costs. During the six month period ended April 30, 2019 Management decided to sell the machine. The~~ shipping ~~and other purchase~~ costs ~~associated with the purchase~~ of ~~the machine that were originally capitalized as part of the machine cost that were written off. The total loss on impairment for the six month period ended April 30, 2019 was~~ $17,000. Inwere ~~July~~impaired ~~2021, management has decided that it is no longer selling this equipment~~ and isthese ~~moving~~costs ~~forward~~were ~~with~~written ~~plans of putting it in service in the future~~down.

InDuring ~~May of~~ 2022, the ~~Company~~company has made ana ~~additional~~ separate deposit ofon ~~$7,320~~a ~~for~~different apiece ~~new~~of ~~testing~~equipment ~~machine~~of $7,370.

~~NOTE~~Total ~~11.~~deposits ~~RIGHT~~on OFEquipment ~~USE~~as ~~ASSETS~~of January 31, 2023 and January 31, 2022 were $607,370 and $600,000, respectively.

~~The~~NOTE ~~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~~12. ~~The~~RIGHT ~~lease~~OF ~~for~~USE the Company’s office space is estimated to be through October 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 April 30, 2020.ASSETS

8The Company entered 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. Effective July 2022, the Company is leasing the property on a month to month basis.

~~INNOVATIVE DESIGNS, INC.~~8

~~NOTES~~INNOVATIVE TODESIGNS, ~~THE CONDENSED FINANCIAL STATEMENTS~~ INC.

~~Three~~ NOTES ~~and~~TO ~~Nine~~THE ~~Month~~CONDENSED ~~Periods~~FINANCIAL ~~Ended July 31, 2022 and 2021 (Unaudited)~~STATEMENTS

~~NOTE~~Three ~~11.~~Month ~~RIGHT~~Periods OFEnded ~~USE~~January ~~ASSETS~~31, 2022 and 2021 (~~CONTINUED~~Unaudited)

AsNOTE of13. ~~July~~SEGMENT ~~31, 2022, the right of use assets associated with future operating lease is as follows:~~INFORMATION

Right of use assets associated with future operating leases
Total present value of right of use asset under lease agreement	$	150,496
Amortization of right of use asset – operating lease		(140,044	)
Total right of use asset – operating lease as of July 31, 2022	$	10,452
Less current portion due within one year		10,452
Long-term right of use asset – operating lease	$	-0-

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.

~~Total~~The ~~amortization~~following ~~expense~~tables ~~related~~present toour ~~the~~business ~~right~~segment ofinformation ~~use assets under the verbal lease agreement was $30,510 and $28,881~~ for the ~~nine~~three month periods ended ~~July~~January 31, ~~2022~~2023 and ~~2021, respectively.~~2022:

Future amortization of the right of use asset as of July 31, 2022 is as follows:


	2023		2022

Revenues:
Apparel	$	25,364	$	45,272
House Wrap		46,283		17,128
Total Revenues	$	71,647	$	62,400

Assets:
Apparel	$	75,972	$	134,245
House Wrap		1,391,173		1,391,270
Total	$	1,467,145	$	1,525,515

Depreciation:
Apparel	$	-0-	$	-0-
House Wrap		769		373
Total	$	769	$	373

Future amortization of right of use assets
2022			$	10,452

~~NOTE~~INNOVATIVE ~~12.~~DESIGNS, ~~RIGHT OF USE LEASE LIABILITY~~INC.

AsNOTES ~~disclosed~~TO inTHE ~~Note~~CONDENSED ~~11,~~FINANCIAL ~~the Company entered into a verbal lease for office space prior to the quarter ended July 31, 2022 that is classified as a right of use asset and lease liability.~~STATEMENTS

AsThree ofMonth ~~July~~Periods Ended January 31, ~~2022,~~2023 ~~the~~and ~~lease liability~~2022 ~~associated with future payments due under the verbal lease is as follows:~~(Unaudited)

Schedule of future minimum lease payments
Total future minimum lease payments	$	150,496
Principal payments made as of the period ended July 31, 2022		(140,044	)
Total operating lease liability as of July 31, 2022		10,452
Less current portion due within one year		10,452
Long-term operating lease liability	$	-0-

NOTE 14.

LEGAL PROCEEDINGS

9On November 4, 2016, the FTC filed a complaint against the Company in the U.S. District Court Western District of Pennsylvania, Case number 16-1669. In the complaint, the FTC alleges that, among other matters, the Company did 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 to redress a rescission of revenue the Company received from the sale of House Wrap and a permanent injunction. On September 24, 2020, a judgment was entered in favor of the Company as to all claims set forth in the FTC complaint. It was further ordered that as there were no remaining claims in the action the case shall be marked as closed.

~~INNOVATIVE~~On ~~DESIGNS~~November 23, ~~INC~~2020, the Company was informed that the FTC had filed a notice of appeal in regard to the case. The appeal is from the District Court’s September 24, 2020, Order granting the Company’s Motion for Judgment on Partial Findings Pursuant to Fed. R. Civ. P. 52(c) and subsequent Judgment in favor of the Company and from the District Court’s February 14, 2020, striking Dr. David Yarbrough’s expert testimony made on behalf of the FTC. The FTC filed its appeal and on March 24, 2021, the Company filed its answer.

~~NOTES~~On TOJuly ~~THE~~22, ~~CONDENSED~~2021, ~~FINANCIAL~~the ~~STATEMENTS~~Registrant was informed that the United States Court of Appeals for the Third District affirmed the District Court’s ruling in favor of the Registrant. The ruling was in connection with the Federal Trade Commission complaint filed against the Registrant in November 2016, alleging, among other matters, that the Registrant did not have substantiation for claims made by the Registrant regarding the R-value and energy efficiency of its INSULTIX House Wrap products.

~~Three~~In November 2021, in connection with the FTC litigation, the Company filed an application for attorney fees, expenses and ~~Nine~~cost ~~Month~~in ~~Periods~~the ~~Ended~~U.S. ~~July~~District 31Court for the Western District of Pennsylvania, Case No.2:16-cv-01669-NBF. On June 29, 2022, a settlement order was signed by the Court. Pursuant to the Order, the FTC ~~and~~paid ~~2021~~the ~~(Unaudited)~~Company $260,000 to resolve all such claims. The parties agreed to waive all rights to appeal or otherwise challenge or contest the validity of the Order.

~~Total~~NOTE ~~maturities~~15. ofRELATED ~~lease~~PARTY ~~liability as of July 31, 2022 are as follows:~~SALES

Schedule of maturities of lease liabilities
	Total future minimum lease payments		Present value discount		Operating lease liability
2022	$	10,500	$	48	$	10,452

During the three month period ending January 31, 2023, the company sold apparel and house wrap to a shareholder. The amount total amount of the related party sale was approximately $3,275.

NOTE 1315. ~~SEGMENT~~SUBSEQUENT ~~INFORMATION~~EVENTS

WeThe ~~have~~Company ~~organized~~has ~~our~~evaluated ~~operations~~subsequent ~~into two~~events ~~segments.~~in Weaccordance ~~rely~~with onASC anTopic ~~internal~~855, ~~management~~“Subsequent ~~reporting~~Events”, ~~process~~through ~~that~~March ~~provides~~10, ~~segment~~2023, ~~information~~which ~~for~~is ~~purposes~~the ofdate ~~making~~the ~~financial~~condensed ~~decisions~~financial ~~and~~statements ~~allocating~~were ~~resources~~available to be issued.

~~The following tables present our business segment information for the nine month periods ended July 31, 2022 and 2021:~~10

Schedule of business segment information
	2022		2021
Revenues:
Apparel	$	59,126	$	49,675
House Wrap		176,038		126,713
Total Revenues	$	235,164	$	176,388
Assets:
Apparel	$	81,045	$	135,542
House Wrap		1,546,171		1,503,627
Total	$	1,627,216	$	1,639,169
Depreciation:
Apparel	$	-0-	$	7,116
House Wrap		1,118		17,865
Total	$	1,118	$	24,981

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

10General

~~INNOVATIVE~~The ~~DESIGNS~~following information should be read in conjunction with the financial statements and the notes thereto and in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended October 31, ~~INC~~2022.

~~NOTES~~Forward-Looking ~~TO THE CONDENSED FINANCIAL STATEMENTS~~Statements

~~Three~~This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding future results of operation, made in this Quarterly Report on Form 10-Q are forward-looking statements. We use words such as expects, believes, intends, and ~~Nine~~similar ~~Month~~expressions ~~Periods~~to ~~Ended~~identify ~~July~~forward-looking 31statements. Forward looking-looking statements reflect management’s current expectations and are inherently uncertain. Actual results could differ materially for a variety of reasons, ~~2022~~including, among others, , competition in our cold weather markets, our ability to sell out HouseWrap product line, our inability to secure sufficient funding to maintain and/or ~~2021~~expand ~~(Unaudited)~~our current level of operations and the seasonality of our cold weather product line. These risks and uncertainties, as well as other risks and uncertainties that could cause our actual results to differ significantly from management’s expectations, are described in greater detail in our Annual Report on Form 10-K for the fiscal year ended October 31, 2020. The Company undertakes no obligation to publicity update or revise any forward-looking statement, whether as a result of new information, future events or otherwise except as required by law.

~~NOTE 14. LEGAL PROCEEDINGS~~Background

OnInnovative ~~November 4~~Designs, ~~2016,~~Inc. ~~the~~(hereinafter ~~FTC filed~~referred ato ~~complaint~~as ~~against~~ the “Company”, in“we” ~~the~~or ~~U.S.~~“our”) ~~District~~was ~~Court~~formed ~~Western~~on ~~District~~June ~~of Pennsylvania~~25, ~~Case~~2002. ~~number~~We ~~16-1669.~~market Inand ~~the~~sell ~~complaint,~~clothing ~~the~~products ~~FTC~~such ~~alleges~~as ~~that,~~outdoor ~~among other matters~~apparel, ~~the~~and ~~Company~~cold ~~did~~weather ~~not~~gear ~~have~~called ~~substantiation~~“Arctic ofArmor” ~~claims~~that are made byfrom ~~the~~INSULTEX, ~~Company~~a ~~regarding~~material ~~the~~with Rbuoyancy, scent ~~value~~block and ~~energy~~ ~~efficiency~~thermal ofresistant ~~its~~properties. ~~INSULTEX~~We ~~House~~also ~~Wrap~~market ~~products.~~our ~~The~~House ~~complaint~~Wrap ~~asks~~product asline towhich ~~redress~~is a ~~rescission~~building ofmaterial ~~revenue~~with ~~the~~thermal ~~Company received from~~qualities. ~~the sale of~~ House Wrap ~~and~~is aalso ~~permanent~~made ~~injunction~~from INSULTEX. On ~~September~~We ~~24,~~obtain ~~2020,~~INSULTEX through a ~~judgment~~license ~~was~~agreement ~~entered~~with ~~in favor of~~ the ~~Company~~owner asand tomanufacturer ~~all claims~~of ~~set forth in~~ the ~~FTC complaint~~material. Since Itour ~~was~~formation ~~further~~we ~~ordered~~have ~~that~~devoted asour ~~there~~efforts ~~were no remaining claims in the action the case shall be marked as closed.~~to:

On● ~~November~~Completing ~~23, 2020,~~ the ~~Company was informed that the FTC had filed a notice of appeal in regard to the case. The appeal is from the District Court’s September 24~~development, ~~2020,~~design ~~Order granting the Company’s Motion for Judgment on Partial Findings Pursuant to Fed. R. Civ. P. 52(c)~~ and ~~subsequent Judgment~~prototypes ~~in favor~~ of ~~the~~our ~~Company and from the District Court’s February 14~~products, ~~2020, striking Dr. David Yarbrough’s expert testimony made on behalf of the FTC. The FTC filed its appeal and on March 24, 2021, the Company filed its answer.~~

On● ~~July~~Obtaining ~~22,~~retail ~~2021,~~stores ~~the~~or ~~Registrant~~sales ~~was~~agents ~~informed that~~to ~~the~~offer United States Court of Appeals for the Third District affirmed the District Court’s ruling in favor of the Registrant. The ruling was in connection with the Federal Trade Commission complaint filed against the Registrant in November 2016, alleging, among other matters, that the Registrant did not have substantiation for claims made by the Registrant regarding the R-value and ~~energy~~sell ~~efficiency of~~our ~~its INSULTIX House Wrap~~ products.,

In● ~~November~~Developing ~~2021,~~our inwebsite connection with the FTC litigation, the Company filed an application for attorney fees, expenses and cost in the U.S. District Court for the Western District of Pennsylvania, Case No.2:16-cv-01669-NBF. On June 29, 2022, a settlement order was signed by the Court. Pursuant to ~~the~~sell ~~Order,~~more ~~the FTC shall pay the Company $260,000 to resolve all such claims. The parties agreed to waive all rights to appeal or otherwise challenge or contest the validity~~ of ~~the~~our ~~Order~~products.

~~NOTE 15. SUBSEQUENT EVENTS~~11

~~The~~INNOVATIVE ~~Company has evaluated subsequent events in accordance with ASC Topic 855~~DESIGNS, ~~“Subsequent Events”, through September 14, 2022, which is the date financial statements were available to be issued~~INC.

OnResults ~~August 30, 2022, the Company received a partial payment~~ of ~~$200,000~~Operations ~~from the settlement with the FTC.~~

11Comparison of the Three-Month Period Ended January 31, 2023, with the Three Month Period Ended January 31, 2022

INNOVATIVE DESIGNS, INC.

	Three Month						Three Month
	Period Ended						Period Ended
	January 31,			% of			January 31,			% of			Increase
	2023			Sales			2022			Sales			(Decrease)			% Change

REVENUE - NET	$	71,647			100	%	$	62,400			100	%	$	9,247			15	%

OPERATING EXPENSES
Cost of sales		17,010			24	%		32,346			52	%		(15,336	)		-47	%
Selling, general and
administrative expenses		113,882			159	%		150,246			241	%		(36,364	)		-24	%
		130,892			183	%		182,592			293	%		(51,700	)		-28	%

(Loss) Income from operations		(59,245	)		-83	%		(120,192	)		-193	%		60,947			-51	%

Other income (expense)		7,519			10	%		—			0	%		7,519			100	%
Other Expense
Interest expense		(6,599	)		-9	%		(11,476	)		-18	%		4,877			-42	%
Depreciation expense		(769	)		-1	%		(372	)		-1	%		(397	)		107	%

Net (Loss) Income	$	(59,094	)		-82	%	$	(132,040	)		-212	%	$	72,946			-55	%

~~ITEM~~Revenues 2for the three-month period ended January 31, 2023, was $71,647 compared to revenues of $62,400 for the three-month period ended January 31, 2022. ~~MANAGEMENT’S~~The ~~DISCUSSION~~increase ~~AND~~in ~~ANALYSIS~~revenue is OFprimarily ~~FINANCIAL~~attributable ~~CONDITION~~to ~~AND~~more ~~RESULTS~~sales OFof ~~OPERATIONS~~our House Wrap product. See Note 13 of the Notes to the Condensed Financial Statements appearing elsewhere in this Report for a description of our segment products sales. Our net loss for the three-month period ended January 31, 2022, was ($ 132,040) compared to a net loss of ($ 35,965) for the same period in 2021.

~~General~~Our selling, general and administrative expenses were $114,651 for the three-month period ended January 31, 2023, compared to $150,618 for the three-month period ended January 31, 2022. Professional fees for the three-month period ended January 31, 2023, were $19,481 compared to $40,610 for the three-month period ended January 31, 2022. The decrease is primarily a result of lower accounting and legal costs. Salary was $35,773 for the three-months ended January 31, 2023 compared to $43,284 for the three months ended January 31, 2022.

The following information should be read in conjunction with the financial statements and the notes thereto and in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended October 31, 2021.12

~~Forward-Looking~~Liquidity ~~Statements~~and Capital Resources

~~This~~During ~~Quarterly Report on Form 10-Q includes forward-looking statements within~~ the meaning of the Private Securities Reform Act of 1995. All statements other than statements of historical fact, including statements regarding future results of operation, made in this Quarterly Report on Form 10three-Qmonth ~~are~~period ~~forward-looking~~ended ~~statements.~~January ~~We use words such as expects~~31, ~~believes~~2023, ~~intends,~~we ~~and~~funded similar expressions to identify forward-looking statements. Forward looking-looking statements reflect management’s current expectations and are inherently uncertain. Actual results could differ materially for a variety of reasons, including, among others, an adverse outcome in our ~~legal~~operations ~~matter~~from ~~with~~revenues ~~the~~from ~~Federal Trade Commission~~sales, ~~competition in our cold weather markets, our inability to secure sufficient funding to maintain~~ and~~/or~~ ~~expand~~sale ~~our current level~~ of ~~operations and the seasonality of~~ our ~~cold~~common ~~weather product line~~stock. These risks and uncertainties, as well as other risks and uncertainties that could cause our actual results to differ significantly from management’s expectations, are described in greater detail in our Annual Report on Form 10-K for the fiscal year ended October 31, 2021. The Company undertakes no obligation to publicity update or revise any forward-looking statement, whether as a result of new information, future events or otherwise except as required by law.

~~Background~~Short Term: We will continue to fund our operations from sales and the sale of our securities. We continue to pay our creditors when payments are due. We will require more funds to be able to order the material for our INSULTEX products and to purchase equipment needed for the manufacture of the INSULTEX product. The Company reached an agreement with the manufacturer of the INSULTEX material to purchase a machine capable of producing the INSULTEX material. Also included in the proposed agreement will be the propriety formula that creates INSULTEX. The Company took delivery of the equipment in December 2015. The Company will have to have the machine installed and ensure that it can be operated in compliance with all environmental rules and regulations. It is the Company intentions to have the equipment operational but cannot currently provide a time estimate. Among the factors affecting the time estimate are financial resources available to the Company, finding a suitable facility and bringing technical personal from abroad to install the equipment. The Company has currently made deposits of $600,000 on the equipment. The Company has incurred $17,000 of additional expenses related to shipping. The Company will produce INSULTEX under its own brand name. See Note 10 of the Notes to the Condensed Financial Statements.

~~Innovative~~We ~~Designs,~~also ~~Inc.~~must ~~(hereinafter~~purchase ~~referred to~~new asquality ~~the~~control testing ~~“Company”,~~equipment ~~“we”~~for ~~or “~~our”) ~~was~~House ~~formed~~Wrap onProduct ~~June~~line ~~25,~~which ~~2002.~~we Weestimate ~~market~~may ~~and~~cost ~~sell~~approximately ~~clothing~~$100,000. ~~products such as outdoor apparel~~However, ~~and~~we ~~cold~~have ~~weather~~not ~~gear~~as ~~called~~yet ~~“Arctic~~received a ~~Armor”~~quote ~~that are made~~ from ~~INSULTEX,~~the ~~a material with buoyancy, scent block and thermal resistant properties~~vendor. We ~~also~~have ~~market~~placed ~~our House Wrap product line which is~~ a ~~building~~$7,000 ~~material~~deposit with ~~thermal~~the ~~qualities~~vendor. ~~House~~ ~~Wrap~~Once isthe ~~also~~equipment ~~made~~is ~~from~~built ~~INSULTEX.~~it Wewill ~~obtain~~have ~~INSULTEX~~to go through a ~~license agreement with the owner and manufacturer of the material.~~certification ~~Since our formation we have devoted our efforts to:~~process.

●Long ~~Completing~~Term: ~~the~~The ~~development~~Company will continue to fund its operations from revenues, ~~design~~borrowings from private parties and ~~prototypes~~the possible sale of our ~~products,~~securities. ●Should ~~Obtaining~~we ~~distributers,~~not ~~retail~~be ~~stores~~able to rely on the private sources for borrowing and /or increased sales, ~~agents~~our operations would be severely affected as we would not be able to ~~offer~~fund ~~and~~our purchase ~~sell~~orders to our ~~products,~~suppliers ●for ~~Developing~~finished goods and our ~~website~~efforts to ~~sell~~produce ~~more~~our ofown ~~our~~INSULTEX ~~products~~would be delayed.

1213

INNOVATIVE DESIGNS, INC.

~~Results~~PART ofII ~~Operations~~– OTHER INFORMATION

~~Comparison~~ITEM of1. ~~the~~LEGAL ~~Three Month Period Ended July 31, 2022, with the Three Month Period Ended July 31, 2021.~~PROCEEDING

	Three Month Period Ended July 31, 2022			% of Sales			Three Month Period Ended July 31, 2021			% of Sales			Increase (Decrease)			% Change
REVENUE - NET	$	135,048			100	%	$	110,475			100	%	$	24,573			22	%
OPERATING EXPENSES
Cost of sales		56,224			42	%		50,712			46	%		5,512			11	%
Selling, general and administrative expenses		115,385			85	%		58,518			53	%		56,867			97	%
		171,609			127	%		109,230			99	%		62,379			57	%
(Loss) Income from operations		(36,561	)		-27	%		1,245			1	%		(37,806	)		-3037	%
Other income (expense)		260,000			193	%		33,652			30	%		226,348			0	%
Other Expense
Interest expense		(10,710	)		-8	%		(13,417	)		-12	%		2,707			-20	%
Depreciation expense		(372	)		0	%		(8,327	)		-8	%		7,955			-96	%
Net (Loss) Income	$	212,357			157	%	$	13,153			12	%	$	199,204			1515	%

See Legal Proceedings set forth in Part I Item 3 of the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2022.

~~Revenues~~ITEM ~~for~~1A ~~the~~Risk three month period ended July 31, 2022 were $135,048 compared to revenues of $110,475 for the three month period ended July 31, 2021. The increase in revenue is attributable to more sales of our HouseWrap product line. See Note 13 of the Notes to the Condensed Financial Statements appearing elsewhere in this Report for a description of our segment products sales. Our net loss for the three month period ended July 31, 2022 was ($213,357).Factors

~~Our~~ As a ~~selling,~~smaller ~~general~~reporting ~~and administrative expenses were $115~~company,~~385~~ ~~for~~we ~~the~~are ~~three~~not ~~month~~required ~~period ended July 31, 2022, compared~~ to ~~$58,518~~provide ~~for~~ the ~~three~~information ~~month~~required ~~period~~by ~~ended~~this ~~July 31, 2021~~Item. ~~The increase is primarily the result of an increase in payroll as we brought back two employees who had been furloughed as a result of the pandemic.~~

13ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

~~INNOVATIVE~~ See ~~DESIGNS~~Part II Item 5 of the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, ~~INC~~2022.

~~Comparison~~ITEM of3. ~~the~~Defaults ~~Nine~~upon ~~Month~~Senior ~~Period Ended July 31, 2022, with the Nine Month Period Ended July 31, 2021.~~Securities

~~The following table shows a comparison of the results of operations between the nine month periods ended July 31, 2022 and July 31, 2021:~~ None

	Nine Month Period Ended July 31, 2022			% of Sales			Nine Month Period Ended July 31, 2021			% of Sales			Increase (Decrease)			% Change
REVENUE - NET	$	235,164			100	%	$	176,388			100	%	$	58,776			33	%
OPERATING EXPENSES
Cost of sales		109,884			47	%		78,352			44	%		31,532			40	%
Selling, general and administrative expenses		545,212			232	%		251,017			142	%		294,195			117	%
		655,096			279	%		329,369			187	%		325,727			99	%
Loss from operations		(419,932	)		-179	%		(152,981	)		-87	%		(266,951	)		174	%
Other income (expense)		260,000			111	%		62,475			35	%		197,525			0	%
Other Expense
Interest expense		(34,450	)		-15	%		(30,810	)		-17	%		(3,640	)		12	%
Depreciation expense		(1,118	)		0	%		(24,981	)		-14	%		23,863			-96	%
Net Loss	$	(195,500	)		-83	%	$	(146,297	)		-83	%	$	(49,203	)		34	%

Item 4

Mine Safety Disclosures

~~Revenues~~ Not for the nine month period ended July 31, 2022 were $235,164 compared to revenues of $176,388 for the nine month period ended July 31, 2021. The increase is the result of more sales of our HouseWrap product line. The apparel sales were adversely affected by warm weather. See Note 13 of the Notes to the Condensed Financial Statements appearing elsewhere in this Report for a description of our segment product sales. During the nine month period ended July 31, 2022 House Wrap sales totaled $176,038 in comparison with $126,713 during the nine month period ended July 31, 2021. Our net loss for the nine month period ended July 31, 2022, was ($195,500).applicable

~~Our~~ITEM ~~selling, general and administrative expenses were $545,212 for the nine months ended July 31, 2022, compared to $251,017 for the nine month period ended July 31, 2021~~4T. ~~The increase~~CONTROLS ~~was~~AND a result, in part, by an increase in payroll expenses of approximately $101,000 as we brought back two employees who had been furloughed during the pandemic. we also incurred $50,000 in marketing cost through the issuance of our common stock. Directors’ fees increased by $33,000 as we issued common stock to members of the Board of Directors. Shipping costs increased by $9,000 from the prior nine month period.PROCEDURES

14As of January 31, 2023, our Chief Executive Officer/Chief Financial Officer identified the following specific material weaknesses in the Company’s internal controls over its financial reporting processes:

~~INNOVATIVE~~● ~~DESIGNS~~The Company is not maintaining supporting schedules, ~~INC~~or the schedules being maintained are inaccurate to support amounts presented and disclosed in the financial statements. Specific schedules in relation to inventory deposits, inventory reserves, fixed assets, debt balance (and related accrued interest) were not available, or in the case of debt schedules were not accurate and in accordance with the loan documents ● The Company’s internal controls policies are ineffective, or not being complied with, to identify errors, in the financial statements. These deficiencies may be considered as “material weaknesses”. ● In addition, the Company does not utilize an internal accounting system that captures all Company activity on a timely basis. Certain transactions, such as sales and receivables are maintained in one system and disbursements and accounts payable are maintained manually. On a quarterly basis this information is sent to an external accountant to retroactively enter the information into a general ledger system and then prepare the financial statements. The lack of a single accounting system presents multiple opportunities for errors to occur, and further contributes to a lack of timely internal and external financial reporting.

~~Liquidity~~This was due to our limited resources, including the absence of an internal financial staff member with accounting and ~~Capital~~financial expertise and deficiencies in the design or ~~Resources~~operation of our internal control over financial reporting that adversely affected our disclosure controls.

~~During~~However, the ~~nine~~material ~~period~~weakness ~~ended~~will ~~July~~not ~~31,~~be ~~2022,~~considered weremediated ~~funded~~until ~~our~~the ~~operations~~applicable ~~from~~remedial ~~revenues~~controls ~~from~~operate ~~sales~~for ~~and~~a ~~the~~sufficient ~~sale~~period of ~~our~~time ~~common~~and ~~stock~~management has concluded, through testing, that these controls are operating effectively.

Short Term: We will continue to fund our operations from sales and the sale of our securities. We continue to pay our creditors when payments are due. We will require more funds to be able to order the material for our INSULTEX products and to purchase equipment needed for the manufacture of the INSULTEX product. The Company reached an agreement with the manufacturer of the INSULTEX material to purchase a machine capable of producing the INSULTEX material. Also included in the proposed agreement will be the propriety formula that creates INSULTEX. The Company took delivery of the equipment in December 2015. The Company will have to have the machine installed and ensure that it can be operated in compliance with all environmental rules and regulations. The Company has not made an estimate of the cost required for bringing the operation of the machine into compliance with the environmental regulations, but it is considered to be a substantial amount. We are in the permitting stage relating to environmental issues necessary to begin the installation of the equipment. However, given our current limited financial resources we are not devoting the resources needed to complete the permitting process. The Company has currently made deposits of $600,000 on the equipment. The Company has incurred $17,000 of additional expenses related to shipping. The Company will produce INSULTEX under its own brand name. See Note 10 of the Notes to the Condensed Financial Statements. We also must purchase new quality control equipment for our HouseWrap product line. A deposit of $7,320 has been made however, we do not have a full cost estimate from the builder. We have estimated a cost of approximately $100,000.14

~~Long~~ITEM ~~Term: The Company will continue to fund its operations from revenues, borrowings from private parties and the possible sale of our securities~~6. Should we not be able to rely on the private sources for borrowing and /or increased sales, our operations would be severely affected as we would not be able to fund our purchase orders to our suppliers for finished goods and our efforts to produce our own INSULTEX would be delayed.EXHIBITS

Subsequent to the period on August 29, 2022, we received approximately $200,000 as partial payment on the amount owed under the settlement agreement with the FTC. See Note 14 of the Notes to the Condensed Financial Statement appearing elsewhere in this Report.

*3.1	Revised Certificate of Incorporation

**3.2	By-Laws

31.1	Rule 13a - 14a Certification of Chief Executive Officer

31.2	Rule 13a-14a Certification of Chief Financial Officer and Principal Accounting Officer

32.1	Section 1350 Certification of Chief Executive Officer and Chief Financial Officer

32.2	Section 1350 Certification of Chief Financial Officer and Chief Accounting Officer

*	Incorporated by reference to the Company’s Form 10-K filed February 12, 2015

**	Incorporated by reference to the Company’s registration statement on Form SB-2, filed March 11, 2003

99***	Incorporated by reference to the Company’s Current Report on Form 8-k, filed November4, 2016

~~INNOVATIVE DESIGNS, INC.~~SIGNATURES

~~PART~~Pursuant IIto –the ~~OTHER~~requirements ~~INFORMATION~~of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ITEM 1. LEGAL PROCEEDING

	Innovative Designs, Inc.
	Registrant

Date: March 15, 2023	by:	/s/ Joseph Riccelli
		Joseph Riccelli, Chief Executive Officer and Chief Financial Officer

~~See Note 14 of the Notes to Financial Statements appearing elsewhere in this Report.~~16

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 3. QUANTITATATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a smaller reporting company, we are not required to provide the information otherwise required by this Item.

ITEM 4T. CONTROLS AND PROCEDURES

Management has developed and implemented a policy and procedures for reviewing, on a quarterly basis, our disclosure controls and procedures. During the period ended July 31, 2022, our principal executive/financial officer concluded that these controls and procedures were ineffective. At this time, we do not have the financial resources to employ a financial staff with accounting and financial expertise. Once we have the necessary financial resources, we plan to hire and designate an individual responsible for identifying reportable developments and to implement procedures designed to remediate the material weakness by focusing additional attention and resources in our internal accounting functions.

Changes in Internal Control Over Financial Reporting

During the most recent fiscal quarter, there were no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13(a)-15 or 15d-15 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Until the Company has the financial resources to employ a financial staff with accounting and financial expertise, to be able to properly account for internal financial reporting, errors that may have a material effect on the financial statements have the potential to occur.

INNOVATIVE DESIGNS, INC.

ITEM 6. EXHIBITS

*3.1	Revised Certificate of Incorporation
**3.2	By-Laws
31.1	Rule 13a - 14a Certification of Chief Executive Officer and Chief Financial Officer
32.1	Section 1350 Certification of Chief Executive Officer and Chief Financial Officer
*	Incorporated by reference to the Company’s Form 10-K filed February 12, 2015
**	Incorporated by reference to the Company’s registration statement on Form SB-2, filed March 11, 2003
99***	Incorporated by reference to the Company’s Current Report on Form 8-k, filed November 4, 2016

INNOVATIVE DESIGNS, INC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Innovative Designs, Inc.
	Registrant
Date: September 13, 2022	by:	/s/ Joseph Riccelli
		Joseph Riccelli, Chief Executive Officer and Chief Financial Officer

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