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, ~~2023~~2024

☐

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 ☒~~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 ☒ No 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.~~

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 a shell company (as defined in Rule 12b-2 of the Exchange Act). ~~Yes~~ YES ☐ No NO ☒

As of ~~September~~April 22, ~~2023~~2024, there were 3637,~~417~~924,~~560~~003 shares of the Registrant’s common stock, par value $.0001 per share, outstanding.

Transitional Small Business Disclosure Format: ~~Yes~~ YES ☐ No NO ☒

Innovative Designs, Inc.

Index

Form 10-Q for the Quarter Ended ~~July~~January 31, ~~2023~~2024

	Part I -- Financial Information	Page No.
Item 1.	Condensed Financial Statements (Unaudited)	1
	Condensed Balance Sheets as of July 31, 2023 (Unaudited) and October 31, 2022	3
	Condensed Balance Sheets as of January 31, 2024 (Unaudited) And October 31, 2023	5
	Condensed Statements of Operations for the Three And Nine Month Periods Ended July 31, 2023 and 2022 (Unaudited)	4
	Condensed Statements of Operations for the Three Month Periods Ended January 31, 2024 and 2023 (Unaudited)	7
	Condensed Statements of Changes Stockholders’ Equity as of July 31, 2023 (Unaudited) and October 31, 2022	5
	Condensed Statements of Changes in Stockholders’ Equity as of January 31, 2024 (Unaudited) and October 31, 2023	8
	Condensed Statements of Cash Flows for the Nine Month Periods Ended July 31, 2023 and 2022 (Unaudited)	6
	Condensed Statements of Cash Flows for the Three Month Periods Ended January 31, 2024 and 2023 (Unaudited)	9
	Notes to the Condensed Financial Statements	710
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1315
	Part II -- Other Information	17
Items 1, 2, 3, and 4T.		17-18
Items	1, 2, 3, 4, 4T and 5.	17
Item 6.	Exhibits	19

~~ITEM 1. CONDENSED FINANCIAL STATEMENTS~~2

INNOVATIVE DESIGNS, INC.

FINANCIAL STATEMENTS ~~FOR THE QUARTER ENDED~~

~~JULY~~FOR THE ~~31,~~QUARTER ~~2023~~ENDED

~~-1-~~JANUARY 31, 2024

~~TABLE OF CONTENTS~~3

	PAGE
FINANCIAL STATEMENTS:	1
CONDENSED BALANCE SHEETS	3
CONDENSED STATEMENTS OF OPERATIONS	4
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDER’S EQUITY	5
CONDENSED STATEMENTS OF CASH FLOWS	6
NOTES TO FINANCIAL STATEMENTS	7

TABLE OF CONTENTS

-2-

	PAGE

FINANCIAL STATEMENTS:

CONDENSED BALANCE SHEETS	5

CONDENSED STATEMENTS OF OPERATIONS	7

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDER’S EQUITY	8

CONDENSED STATEMENTS OF CASH FLOWS

NOTES TO FINANCIAL STATEMENTS	9

~~INNOVATIVE DESIGNS, INC. CONDENSED BALANCE SHEETS JULY 31, 2023 (UNAUDITED) AND OCTOBER 31, 2022~~4

	July 31, 2023			October 31, 2022
ASSETS
CURRENT ASSETS:
Cash	$	178,817			263,293
Accounts receivable, net		82			11,203
Inventory, net		588,874			494,580
Total current assets		767,773			769,076
PROPERTY AND EQUIPMENT, net		24,247			5,960
OTHER ASSETS:
Inventory on consignment		—			1,625
Deposits on inventory		—			80,000
Advance to employees		13,200			13,200
Deposits on equipment		719,944			607,370
Total other assets		733,144			702,195
TOTAL	$	1,525,164		$	1,477,231
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	275,487		$	162,063
Current portion of note payable		20,265			20,128
Accrued interest of stockholder loans		54,073			46,345
Current portion of stockholder loans		71,668			110,631
Accrued expenses		3,778			3,778
Total current liabilities		425,271			342,945
LONG-TERM LIABILITIES:
Long-term portion of note payable		49,530			64,547
Long-term portion of stockholder loans		—			66,667
Total long-term liabilities		49,530			131,214
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 36,092,560 and 34,650,560 issued and outstanding		3,612			3,467
Common stock to be issued		—			—
Additional paid-in capital		11,637,980			11,335,184
Accumulated deficit		(10,591,228	)		(10,335,579	)
Total stockholders’ equity		1,050,363			1,003,072
TOTAL	$	1,525,164		$	1,477,231

CONDENSED BALANCE SHEETS

JANUARY 31, 2024 (UNAUDITED) AND OCTOBER 31, 2023

The accompanying notes are an integral part of these condensed financial statements.


	January 31, 2024		October 31, 2023

ASSETS

CURRENT ASSETS:
Cash	$	208,153	$	238,677
Accounts receivable, net		10,397		31,050
Inventory, net		601,027		549,277
Prepaid rent		6,400		—

Total current assets		825,977		819,004

PROPERTY AND EQUIPMENT, net		22,314		23,479

OTHER ASSETS:
Deposits on inventory		20,000		—
Advance to employees		13,200		8,200
Deposits on equipment		652,944		652,944

Total other assets		666,144		661,144

TOTAL	$	1,514,435	$	1,503,627

~~-3-~~The accompanying notes are an integral part of these condensed financial statements.

~~INNOVATIVE DESIGNS, INC. CONDENSED STATEMENTS OF OPERATIONS THREE AND NINE MONTHS ENDED JULY 31, 2023 AND 2022 (UNAUDITED)~~5

	Three Months Ended July 31,						Nine Months Ended July 31,
	2023			2022			2023			2022
REVENUES, net	$	124,650		$	135,048		$	223,546		$	235,164
OPERATING EXPENSES:
Cost of sales		76,480			56,224			106,839			109,884
Selling, general and administrative expenses		124,944			115,384			359,917			545,212
Total operating expenses		201,424			171,608			466,756			655,096
Income (loss) from operations		(76,774	)		(36,560	)		(243,210	)		(419,932	)
OTHER INCOME (EXPENSE):
Miscellaneous income (expense)		—			260,000			7,519			260,000
Interest expense		(6,421	)		(10,710	)		(17,652	)		(34,450	)
Depreciation		(769	)		(373	)		(2,306	)		(1,118	)
Total other income (expense)		(7,190	)		248,917			(12,439	)		224,432
Net income (loss)	$	(83,964	)	$	212,357		$	(255,649	)	$	(195,500	)
PER SHARE INFORMATION - UNDILUTED:
Net income (loss) per common share		(0.002	)		0.006		$	(0.007	)	$	(0.006	)
Weighted average number of common shares outstanding		35,656,821			33,845,560			35,339,663			33,845,560
PER SHARE INFORMATION - DILUTED:
Net income (loss) per common share		(0.002	)		0.006		$	(0.007	)	$	(0.006	)
Weighted average number of common shares outstanding		36,633,430			34,902,893			36,153,406			34,902,893

CONDENSED BALANCE SHEETS

JANUARY 31, 2024 (UNAUDITED) AND OCTOBER 31, 2023

The accompanying notes are an integral part of these condensed financial statements.

	January 31, 2024			October 31, 2023

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable	$	84,720			216,626
Current portion of notes payable		70,530			20,397
Accrued interest of stockholder loans		35,244			42,873
Current portion of stockholder loans		12,000			70,668

Total current liabilities		202,494			350,564

LONG-TERM LIABILITIES,
Long-term portion of notes payable		39,380			44,429

Total long-term liabilities		39,380			44,429

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 37,783,448 and 34,650,560 issued and outstanding		3,781			3,656
Common stock to be issued		—			—
Additional paid-in capital		11,969,130			11,741,935
Accumulated deficit		(10,700,350	)		(10,636,957	)

Total stockholders' equity		1,272,561			1,108,634

TOTAL	$	1,514,435		$	1,503,627

~~-4-~~The accompanying notes are an integral part of these condensed financial statements.

~~INNOVATIVE DESIGNS, INC. CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY THREE AND NINE MONTHS ENDED JULY 31, 2023 AND 2022 (UNAUDITED)~~6

	Common Stock				Common Stock		Additional Paid-In		Accumulated
	Shares		Amount		To Be 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 income (loss)		—		—		—		—		(59,094	)		(59,094	)
Balance at January 31, 2023		35,177,560		3,520		—		11,451,071		(10,394,673	)		1,059,918
Sale of stock		—		—		—		—		—			—
Shares issued for services		—		—		—		—		—			—
Net income (loss)		—		—		—		—		(112,591	)		(112,591	)
Balance at April 30, 2023		35,177,560		3,520		—		11,451,071		(10,507,264	)		947,327
Sale of stock		695,000		70		—		140,931		—			141,000
Exercise of warrants		40,000		4		—		9,996		—			10,000
Shares issued for services		180,000		18		—		35,982		—			36,000
Net income (loss)		—		—		—		—		(83,964	)		(83,964	)
Balance at July 31, 2023		36,092,560		3,612		—		11,637,980		(10,591,228	)		1,050,363
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 income (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 income (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 (loss)		—		—		—		—		212,357			212,357
Balance at July 31, 2022		34,525,560	$	3,454	$	—	$	11,310,197	$	(10,305,589	)	$	1,008,062

INNOVATIVE DESIGNS, INC.

The accompanying notes are an integral part of these condensed financial statements.


CONDENSED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED JANUARY 31, 2024 AND 2023 (UNAUDITED)

	Three Months Ended January 31,
	2024			2023

REVENUES, net	$	65,886			71,647

OPERATING EXPENSES:
Cost of sales		34,824			17,010
Selling, general and administrative expenses		85,682			113,882

Total operating expenses		120,506			130,892

Income (loss) from operations		(54,620	)		(59,245	)

OTHER INCOME (EXPENSE):
Miscellaneous income (expense)		—			7,519
Interest expense		(7,608	)		(6,599	)
Depreciation		(1,165	)		(769	)

Total other income (expense)		(8,773	)		151

Net income (loss)	$	(63,393	)	$	(59,094	)

PER SHARE INFORMATION - UNDILUTED:
Net income (loss) per common share		(0.002	)		(0.002	)

Weighted average number of common shares outstanding		37,092,277			34,914,060

PER SHARE INFORMATION - DILUTED:
Net income (loss) per common share		(0.002	)		(0.002	)

Weighted average number of common shares outstanding		38,046,277			35,908,060

~~-5-~~The accompanying notes are an integral part of these condensed financial statements.

~~INNOVATIVE DESIGNS, INC. CONDENSED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED JULY 31, 2023 AND 2022 (UNAUDITED)~~7

	Nine Months Ended July 31,
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(255,649	)	$	(195,500	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Bad debt expense		—			—
Common stock issued for services		41,940			185,000
Depreciation		2,306			1,118
Amortization of right of use asset		—			30,510
Gain on sale of asset		(7,519	)		—
(Increase) decrease from changes in:
Accounts receivable		11,121			(8,412	)
Inventory		(92,669	)		11,104
Deposits on inventory		80,000			(40,000	)
Receivable due		—			(260,000	)
Increase (decrease) from changes in:
Accounts payable and accrued expenses		113,424			45,826
Accrued interest expense		7,728			(2,640	)
Net cash provided by (used in) operating activities		(99,318	)		(232,994	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equpment		(20,593	)		—
Deposits on equipment		(112,574	)		(7,370	)
Proceeds from sale of equipment		7,519			—
Net cash provided by (used in) investing activities		(125,648	)		(7,370	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock		261,000			86,200
Payments on shareholder advances		(105,630	)		(135,667	)
Payments on lease liability		—			(30,510	)
Proceeds on notes payable		—			1,818
Payments on notes payable		(14,880	)		(2,418	)
Net cash provided by (used in) financing activities		140,490			(80,577	)
NET INCREASE (DECREASE) IN CASH		(84,476	)		(320,941	)
CASH, BEGINNING OF YEAR		263,293			480,451
CASH, END OF THE PERIOD	$	178,817		$	159,510
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	$	9,924		$	37,090
Non-cash financing activities - common stock issued for services	$	41,940		$	185,000

INNOVATIVE DESIGNS, INC.

~~The~~CONDENSED ~~accompanying~~STATEMENTS ~~notes are~~OF anCHANGES ~~integral~~IN ~~part~~STOCKHOLDERS’ ofEQUITY ~~these~~THREE ~~condensed~~MONTHS ~~financial~~ENDED ~~statements.~~JANUARY 31, 2024 AND 2023 (UNAUDITED)

-6-


	Common Stock				Common Stock To Be		Additional Paid-In		Accumulated
	Shares		Amount		Issued		Capital		Deficit			Total

Balance at October 31, 2023		36,532,560		3,656		—		11,741,935		(10,636,957	)		1,108,634

Sale of stock		580,888		58		—		105,862		—			105,920

Shares issued for services		670,000		67		—		121,333		—			121,400

Net income (loss)		—		—		—		—		(63,393	)		(63,393	)

Balance at January 31, 2024		37,783,448		3,781		—		11,969,130		(10,700,350	)		1,272,561

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 income (loss)		—		—		—		—		(59,094	)		(59,094	)

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

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

~~NOTES TO FINANCIAL STATEMENTS~~8

1.INNOVATIVE ~~BASIS~~DESIGNS, ~~OF PRESENTATION~~INC.

InCONDENSED ~~the~~STATEMENTS ~~opinion~~OF ofCASH management, the accompanying unaudited financial statements contain all adjustments necessary to present fairly Innovative Designs, Inc.’s (the “Company”) financial position as of July 31, 2023, 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, 2023 and 2022.FLOWS

~~The financial~~THREE ~~statements included~~MONTHS inENDED ~~the~~JANUARY Form 10-Q (the “Form”) are presented in accordance with the requirements of the Form and do not include all of the disclosures required by accounting principles generally accepted in the United States of America. For additional information, reference is made to the Company’s annual report on Form 10-K for the fiscal year ended October 31, ~~2022.~~2024 ~~The~~AND ~~results of operations for the three and nine month periods ended July 31,~~ 2023 ~~and 2022 are not necessarily indicative of operating results for the full year.~~(UNAUDITED)

2. GOING CONCERN


	Three Months Ended January 31,
	2024			2023

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(63,393	)	$	(59,094	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Common stock issued for services		121,400			5,940
Depreciation		1,165			769
Gain on sale of asset		—			(7,519	)
(Increase) decrease from changes in:
Accounts receivable		20,653			3,136
Inventory		(31,750	)		(147,124	)
Prepaid rent		(6,400	)		—
Deposits on inventory		(20,000	)		80,000
Advances to employees		(5,000	)		—
Increase (decrease) from changes in:
Accounts payable and accrued expenses		(131,906	)		14,089
Accrued interest expense		(7,629	)		4,647

Net cash provided by (used in) operating activities		(102,860	)		(105,156	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment		—			(20,593	)
Deposits on equipment		—			—
Proceeds from sale of equipment		—			7,519

Net cash provided by (used in) investing activities		—			(13,074	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock		105,920			110,000
Payments on shareholder advances		(58,668	)		(80,840	)
Proceeds from notes payable		50,000			—
Payments on notes payable		(4,916	)		(4,828	)

Net cash provided by (used in) financing activities		92,336			24,332

NET INCREASE (DECREASE) IN CASH		(30,524	)		(93,898	)

CASH, BEGINNING OF YEAR		238,677			263,293

CASH, END OF THE PERIOD	$	208,153		$	169,395

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Cash paid for interest	$	15,237		$	1,952

Non-cash financing activities - common stock issued for services	$	121,400		$	5,940

These financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The ~~Company~~accompanying ~~had a~~notes ~~net~~are ~~loss of ($255,649) and a negative cash flow of ($84,476) for the nine month period ended July 31, 2023. In addition, the Company has~~ an ~~accumulated deficit of ($10,591,228).~~integral ~~Management’s~~part ~~plans include cash receipts through sales, sales~~ of ~~Company stock, and borrowings from private parties. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern for a period of one year from the issuance of~~ these ~~financial~~condensed ~~statements. 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.

~~3. ACCOUNTS RECEIVABLE~~9

~~Accounts receivable are reported~~INNOVATIVE atDESIGNS, ~~their net realizable value~~INC. ~~The Company evaluates its receivables on a quarterly basis to assess the validity of remaining receivables.~~ ~~Management~~NOTES ~~has~~TO ~~determined~~FINANCIAL that there is significant doubt regarding the receivable balance over 90 days. There were no balances over 90 days as July 31, 2023. As of October 31, 2022, balances over 90 days totaled $5,860 which have been recorded as an allowance.STATEMENTS

~~-7-~~1. BASIS OF PRESENTATION

~~INNOVATIVE~~In ~~DESIGNS~~the opinion of management, ~~INC~~the accompanying unaudited financial statements contain all adjustments necessary to present fairly Innovative Designs, Inc.’s ~~NOTES~~(the “Company”) TOfinancial ~~FINANCIAL~~position ~~STATEMENTS~~as of January 31, 2024, the changes therein for the three month periods then ended and the results of operations for the three month periods ended January 31, 2024 and 2023.

4The condensed financial statements included in the Form 10-Q (the “Form”) 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. ~~OPENING~~For ~~AND~~additional ~~CLOSING~~information, ~~BALANCE~~reference is OFmade ~~RECEIVABLES~~to the Company’s annual report on Form 10-K for the fiscal year ended October 31, 2023. The results of operations for the three month periods ended January 31, 2024 and 2023 are not necessarily indicative of operating results for the full year.

~~The opening balance of accounts receivable was $11,203 which was net of the allowance for doubtful accounts of $5,860~~2. ~~The~~ ~~ending~~GOING ~~balance of accounts receivable for the nine month period ended July 31, 2023 was $82. There was not an allowance for doubtful accounts at the end of the period.~~CONCERN

5These condensed financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. ~~INVENTORY~~The Company had a net loss of ($63,393) and a negative cash flow of ($102,860) for the three month period ended January 31, 2024. In addition, the Company has an accumulated deficit of ($10,700,350). Management’s plans include cash receipts through sales, sales of Company stock, and borrowings from private parties. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern for a period of one year from the issuance of these condensed financial statements. These condensed 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.

~~Inventory consists principally of purchased apparel inventory and house wrap which is manufactured by the Company~~3. ~~Inventory~~ isACCOUNTS stated at the lower of cost or net realizable value on a first-in, first-out basis. The Company has decided to discontinue the manufacturing of its Artic Armor, hunting and swimming line of apparel. The Company has booked a reserve against apparel inventory as of July 31, 2023 and October 31, 2022 of $75,468. Management has determined that no allowance is currently necessary on the house wrap inventory. Management will continue to evaluate its obsolete inventory reserve throughout the year and make adjustments as needed.RECEIVABLE

6Accounts receivable are reported at their net realizable value. ~~WARRANTIES~~The Company 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. There were no balances over 90 days as January 31, 2024 and October 31, 2023.

~~The Company provides a ten-year limited warranty covering defects in workmanship~~4. ~~These~~OPENING ~~warranties~~AND ~~are included~~CLOSING inBALANCE ~~the contract~~OF and do not provide customers with a service in addition to assurance of compliance with agreed-upon specifications. The Company does not consider these assurance-type warranties to be separate performance obligations.RECEIVABLES

~~Management~~The opening ~~has~~balance ~~determined~~of ~~that no~~accounts ~~warranty~~receivable ~~reserve~~was is$31,050. ~~currently~~The ~~necessary~~ending onbalance of accounts receivable for the ~~Company’s~~three ~~products.~~month ~~Management~~period ~~will~~ended ~~continue~~January 31, to2024 ~~evaluate~~was ~~the~~$10,397. ~~need~~There was not an allowance for ~~a warranty~~doubtful ~~reserve~~accounts ~~throughout~~at the ~~year~~beginning ~~and~~or ~~make~~end ~~adjustments~~of asthe ~~needed~~period.

75. ~~NOTE PAYABLE~~INVENTORY

~~During~~Inventory consists ~~2005,~~principally of purchased apparel inventory and house wrap which is manufactured by the Company ~~entered~~. ~~into~~Inventory anis ~~agreement~~stated ~~with~~at the ~~U.S.~~lower ~~Small~~of ~~Business~~cost ~~Association~~or net realizable value on a first-in, first-out basis. The ~~note~~Company ishas ~~payable~~decided into ~~monthly~~discontinue the ~~installments~~manufacturing of $1its Artic Armor,~~820~~ ~~with~~hunting ~~the~~and ~~balance~~swimming line of apparel. The Company ~~due~~has ~~and~~booked ~~payable~~a inreserve ~~November~~against ~~2026~~apparel inventory as of January 31, at2024 anand ~~interest~~October ~~rate~~31, 2023 of 2$65,600.~~60%~~ Management has determined that no allowance is currently necessary on the house wrap inventory. Management will continue to evaluate its obsolete inventory reserve throughout the year and make adjustments as needed.

86. ~~STOCKHOLDER LOANS~~WARRANTIES

~~Stockholder~~The ~~loans~~Company toprovides a ten-year limited warranty covering defects in workmanship. These warranties are included in the ~~Company,~~ ~~including accrued~~contract ~~interest~~and ~~totaled~~do not ~~$125,741~~provide ~~and~~customers ~~$226,793~~with asa ofservice ~~July 31,~~in ~~2023~~addition ~~and~~to ~~2022,~~assurance ~~respectively~~of compliance with agreed-upon specifications. The ~~loans~~Company ~~bear~~does ~~interest~~not ~~between~~consider these ~~10%~~assurance-type ~~and~~warranties ~~12%~~to be separate performance obligations.

~~-8-~~10

INNOVATIVE DESIGNS, INC. NOTES TO FINANCIAL STATEMENTS

9Management has determined that no warranty reserve is currently necessary on the Company’s products. ~~REVENUES~~Management will continue to evaluate the need for a warranty reserve throughout the year and make adjustments as needed.

~~Revenues are measured based on the amount of consideration specified in a contract with a customer~~7. ~~The~~NOTES Company recognizes revenue when and as performance obligations (i.e., obligations to transfer goods and/or services) are satisfied, which generally occurs with the transfer of control of the goods or services to the customer.PAYABLE

ToDuring ~~determine~~December ~~proper revenue recognition~~2023, the Company ~~evaluates~~entered ~~whether~~into ~~two~~a orconvertible ~~more~~promissory ~~contracts should~~note bein ~~combined and~~the ~~accounted~~amount ~~for as~~of a$50,000 ~~single contract~~due and ~~whether a~~payable ~~combined~~in orDecember ~~single~~2024 ~~contract~~at ~~should~~an annual beinterest ~~accounted~~rate ~~for~~of ~~as more than one performance obligation~~6.0%. ~~This~~The ~~evaluation~~note ~~requires~~is ~~significant~~secured ~~judgment~~by $100,000 ~~and~~of the ~~decision~~Company’s ~~to combine contracts or separate a combined~~inventory. orAny ~~single~~principal ~~contract into~~and ~~multiple~~unpaid ~~performance obligations~~accrued ~~could~~interest ~~change the~~outstanding ~~amount~~as of ~~revenue~~the ~~and~~due ~~profit recorded~~date inmay abe ~~given~~converted ~~period.~~to ~~Contracts~~common ~~are~~stock ~~considered~~at ~~to contain~~ a ~~single~~value ~~performance~~of ~~obligation~~$0.20 ifper ~~the promise to transfer individual goods or services is not separately identifiable from other promises in the contracts~~share.

~~For contracts with multiple~~During ~~performance obligations~~2005, the Company ~~allocates~~entered into an agreement with the ~~transaction~~U.S. ~~price~~Small ~~to each~~Business ~~performance~~Association. ~~obligation using~~The ~~the~~note ~~best estimate~~is ofpayable ~~the standalone~~in ~~selling~~monthly ~~price~~ installments of $1,820 ~~each~~with ~~distinct~~the ~~good~~balance ordue ~~service~~and payable in ~~the~~November ~~contract~~2026, at an interest rate of 2.60%.

108. ~~EARNINGS~~STOCKHOLDER ~~PER SHARE~~LOANS

~~The Company calculates net~~Stockholder ~~loss~~loans ~~per~~to 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~~including ~~issued a~~accrued ~~convertible~~interest ~~debt~~totaled ~~instrument. In addition~~$47,244 ~~the Company also has stock warrants of 954,000~~ and ~~994~~$147,~~000~~450 as of ~~July~~January 31, ~~2023~~ 2024 and ~~2022~~2023, respectively. The ~~Company~~ ~~has calculated diluted~~loans ~~earnings~~bear ~~per~~interest ~~share~~between ~~utilizing~~10% ~~the outstanding stock warrants~~ and ~~convertible debt~~12%.

119. ~~INCOME TAXES~~REVENUES

~~The~~Revenues are ~~Company~~measured ~~accounts~~based ~~for~~on ~~income taxes~~the amount of consideration specified in ~~accordance~~a contract with ~~FASB~~a ~~ASC~~customer. ~~Topic~~The ~~740~~Company ~~“Income~~recognizes ~~Taxes”~~revenue when and as performance obligations (i.e., ~~which~~obligations ~~requires~~to antransfer ~~asset~~goods and/or ~~liability~~services) ~~approach~~are ~~for~~satisfied, which generally occurs with the transfer ~~financial~~of ~~reporting~~control ~~purposes~~of the goods or services to the customer.

~~Deferred~~To determine ~~income~~proper ~~taxes~~revenue ~~are~~recognition, ~~provided~~the Company evaluates ~~for~~whether ~~differences~~two ~~between~~or ~~the~~more ~~tax~~contracts ~~bases~~should ofbe ~~assets~~combined and ~~liabilities~~accounted ~~and~~for ~~the~~as ~~financial~~a ~~reporting~~single ~~amounts~~contract atand ~~the~~whether ~~end~~a ofcombined ~~the~~or ~~period,~~single ~~and~~contract should be accounted for ~~net~~as ~~operating~~more ~~loss~~than ~~and~~one ~~tax credit~~performance ~~carryforwards~~obligation. ~~available to~~This ~~offset~~evaluation ~~future taxable~~requires ~~income.~~significant ~~Changes in~~judgment, ~~enacted~~and ~~tax~~the ~~rates~~decision to combine contracts or ~~laws~~separate ~~result~~a incombined ~~adjustments~~or tosingle ~~recorded~~contract ~~deferred~~into ~~tax assets~~multiple ~~and~~performance ~~liabilities~~obligations incould change the ~~periods~~amount inof ~~which the~~revenue ~~tax~~and ~~laws~~profit ~~are~~recorded ~~enacted~~in ~~or tax~~a ~~rates~~given ~~are changed~~period. ~~The~~Contracts ~~Company will~~are ~~continue~~considered to ~~evaluate~~contain ~~its~~a ~~income~~single ~~tax~~performance obligation ~~throughout~~if the ~~year~~promise ~~and~~to transfer individual ~~will~~goods ~~record~~or aservices ~~tax~~is ~~provision~~not ~~when~~separately itidentifiable isfrom ~~necessary~~other promises in the contracts.

~~-9-~~For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation using the best estimate of the standalone selling price of each distinct good or service in the contract.

~~INNOVATIVE DESIGNS, INC~~10. ~~NOTES~~EARNINGS TOPER ~~FINANCIAL STATEMENTS~~SHARE

12The Company calculates net loss per share in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 260, “Earnings per Share”. ~~SHIPPING~~Basic ~~AND~~earnings ~~HANDLING~~(loss) ~~COSTS~~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. In addition, the Company also has stock warrants of 954,000 and 994,000 as of January 31, 2024 and 2023, respectively. The Company has calculated diluted earnings per share utilizing the outstanding stock warrants and convertible debt.

~~The Company pays shipping and handling costs on behalf of customers for purchased apparel merchandise~~11. ~~These~~INCOME 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 $27,070 and $21,199 for the nine month periods ended July 31, 2023 and 2022, respectively.TAXES

~~13.~~The Company ~~COMMON~~accounts ~~STOCK~~for income taxes in accordance with FASB ASC Topic 740 “Income Taxes”, which requires an asset and liability approach for financial reporting purposes.

During the nine month period ended July 31, 2023, the Company sold 645,000 shares of common stock to four investors for total proceeds of $131,000, one investor exercised 40,000 warrants for stock for total proceeds of $10,000, and 230,000 shares were issued to two investors for services. The stock was issued between $0.20 and $0.25 per share.11

~~During~~INNOVATIVE ~~the nine month period ended July 31~~DESIGNS, ~~2022, the Company sold 460,000 shares of common stock~~ toINC. ~~seven investors~~ ~~for~~NOTES ~~total~~TO ~~proceeds of~~FINANCIAL ~~$86,200 and issued 750,000 shares to eight individuals for services. The stock was issued between $0.17 and $0.25 per share.~~STATEMENTS

14Deferred 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. ~~DEPOSITS~~Changes ONin ~~EQUIPMENT~~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.

~~On July~~ 12~~, 2015, the Company reached an agreement with Ketut Jaya to purchase the machinery and equipment utilized to produce the INSULTEX material~~. ~~The~~SHIPPING ~~purchase price~~AND isHANDLING $700,000 and to be made in four installments. The first installment of $300,000 is to be made at the execution of the agreement. The second installment of $200,000 is to be made when the machinery and equipment is ready to be shipped to the United States. The third installment of $100,000 is to be made once the machinery and equipment is producing INSULTEX, and the fourth and final installment of $100,000 is to be made after the first commercial production run of INSULTEX is completed. As of October 31, 2018, the Company has made payments of $500,000 in accordance with the agreement and made a $100,000 pre-payment as the machine is not yet producing INSULTEX. Additionally, the Company has incurred $17,000 of additional expenses related to shipping, site improvements and installation of the equipment. During 2019, the Company determined the shipping costs of $17,000 were impaired and these costs were written off the balance due. In February 2023, the Company made an additional prepayment of $10,000 on the equipment and owes an additional $73,000 for the installation of the equipment.COSTS

~~During~~The Company ~~the~~pays ~~fiscal~~shipping ~~year~~and ~~ending October~~handling ~~31,~~costs ~~2022,~~on ~~the~~behalf ~~Company~~of ~~made~~customers ~~deposits~~for onpurchased aapparel ~~separate~~merchandise. ~~piece~~These ofcosts ~~equipment~~are ofbilled ~~$7,370.~~back ~~During~~to the customer ~~three~~through ~~quarters~~the ~~ended~~billing ~~July~~invoice. ~~31, 2023,~~The shipping and handling costs associated with merchandise ordered by the Company ~~made~~are ~~additional~~included as ~~deposits~~part of ~~$29~~inventory as these costs are allocated across the merchandise received. With house wrap orders,~~574~~ onthe ~~this~~customer ~~piece~~pays ofthe ~~equipment~~shipping cost. ~~Total~~The ~~deposits~~shipping ~~for~~and ~~this~~handling ~~piece~~costs ~~equipment~~associated aswith ofcustomer orders was approximately $10,899 and $15,125 for the three month periods ~~July~~ended January 31, ~~2023~~2024 ~~total~~and ~~$36~~2023,~~944~~ respectively.

~~Total~~13. ~~deposits~~COMMON ~~made for the three quarters ended July 31, 2023 total $112,574.~~STOCK

~~-10-~~During the three month period ended January 31, 2024, the Company sold 580,888 shares of common stock to eight investors for total proceeds of $105,920 and 670,000 shares were issued to two investors for services. The stock was issued between $0.18 and $0.20 per share.

~~INNOVATIVE~~During the ~~DESIGNS~~three month period ended January 31, ~~INC~~2023, the Company sold 500,000 shares of common stock to one investor for total proceeds of $110,000 and issued 27,000 shares to one individuals for services. ~~NOTES~~The TOstock ~~FINANCIAL~~was ~~STATEMENTS~~issued at $0.22 per share.

~~Total~~14. ~~overall deposits~~DEPOSITS onON ~~equipment as of July 31, 2023 and 2022 were $719,944 and $607,370, respectively.~~EQUIPMENT

15On July 12, 2015, the Company reached an agreement with Ketut Jaya to purchase the machinery and equipment utilized to produce the INSULTEX material. ~~LEASE~~The purchase price is $700,000 and to be made in four installments. The first installment of $300,000 is to be made at the execution of the agreement. The second installment of $200,000 is to be made when the machinery and equipment is ready to be shipped to the United States. The third installment of $100,000 is to be made once the machinery and equipment is producing INSULTEX, and the fourth and final installment of $100,000 is to be made after the first commercial production run of INSULTEX is completed. As of October 31, 2018, the Company has made payments of $500,000 in accordance with the agreement and made a $100,000 pre-payment as the machine is not yet producing INSULTEX. Additionally, the Company has incurred $17,000 of additional expenses related to shipping, site improvements and installation of the equipment. During 2019, the Company determined the shipping costs of $17,000 were impaired and these costs were written off the balance due. During the fiscal year ended October 31, 2023, the Company made additional prepayments totaling $16,000 on the equipment.

~~FASB~~During ~~ASC~~the ~~Topic 842,~~fiscal ~~“Leases”,~~year ~~establishes a~~ended ~~right~~October ~~of use~~31, ~~(“ROU”)~~2022, ~~model that~~the ~~requires~~Company ~~a lessee~~made todeposits ~~recognize~~on a ~~ROU~~separate ~~asset~~piece ~~and~~of ~~lease~~equipment ~~liability on the condensed balance sheets. ROU assets and lease liabilities are recognized at the commencement date based on the present value~~ of ~~lease payments over the lease term~~$7,370. ~~ROU~~During ~~assets are reduced each period by an amount equal to~~ the ~~difference~~ ~~between~~fiscal ~~the~~year ~~lease~~ended ~~expense~~October ~~and the~~31, ~~amount of interest expense on the lease liability~~2023, ~~using~~ the ~~effective interest method. The~~ Company ~~used~~ ~~the~~made ~~average commercial~~additional ~~real~~deposits ~~estate interest rate~~ of ~~5.50%~~$29,574 toon ~~calculate~~this ~~the~~piece ~~present value~~ of ~~the lease~~equipment. ~~The~~Total ~~Company~~deposits ~~recognizes~~for ~~lease expense~~this onpiece aequipment as ~~straight-line~~of ~~basis~~January ~~over~~31, ~~the~~2024 ~~leased~~total ~~term on the condensed statements of operations~~$36,944.

~~The Company entered into a lease~~Total ~~for~~overall ~~office~~deposits ~~space at the time the Company was formed through June 2022. Effective July 2022, the Company is leasing the office space~~ on aequipment ~~month~~as toof ~~month~~January ~~basis. As a result~~31, ~~the~~ ~~Company~~2024 ~~has elected to apply the short-term lease exemption to its lease of the facilities~~ and ~~therefore~~2023 ~~has~~were ~~not~~$652,944 ~~recorded a ROU asset~~ and ~~related~~$607,370, ~~lease liability~~respectively.

~~16. SEGMENT INFORMATION~~12

~~The Company~~INNOVATIVE ~~has organized~~DESIGNS, ~~operations~~INC. ~~into two~~ ~~segments~~NOTES ~~based~~TO ~~on an~~FINANCIAL ~~internal management reporting process that provides segment information for purposes of making financial decisions and allocating resources.~~STATEMENTS

~~The following~~15. ~~tables present the Company’s business segment information for the nine month period ended July 31, 2023 and 2023:~~LEASE

Schedule of business segment information
	2023		2022
Revenues:
Apparel	$	31,105	$	59,126
House wrap		192,441		176,038
Total revenues	$	223,546	$	235,164
Assets:
Apparel	$	167,822	$	81,045
House wrap		1,318,342		1,546,171
Total assets	$	1,486,164		1,627,216
Depreciation:
Apparel	$	—	$	—
House wrap		2,306		1,118
Total depreciation	$	2,306	$	1,118

FASB ASC Topic 842, “Leases”, establishes a right of use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability on the condensed balance sheets. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. ROU assets are reduced each period by an amount equal to the difference between the lease expense and the amount of interest expense on the lease liability, using the effective interest method. The Company used the average commercial real estate interest rate of 5.50% to calculate the present value of the lease. The Company recognizes lease expense on a straight-line basis over the leased term on the condensed statements of operations.

The Company entered into a lease for office space at the time the Company was formed through June 2022. Effective July 2022, the Company is leasing the office space on a month to month basis. As a result, the Company has elected to apply the short-~~11-~~term lease exemption to its lease of the facilities and therefore has not recorded a ROU asset and related lease liability.

~~INNOVATIVE DESIGNS, INC~~16. ~~NOTES~~SEGMENT ~~TO FINANCIAL STATEMENTS~~INFORMATION

~~17.~~The Company ~~LEGAL~~has ~~PROCEEDINGS~~organized operations into two segments based on an internal management reporting process that provides segment information for purposes of making financial decisions and allocating resources.

~~On November 4, 2016, the Federal~~The ~~Trade~~following ~~Commission~~tables ~~(“FTC”)~~present ~~filed a complaint against~~ the Company’s inbusiness ~~the U.S.~~segment ~~District~~information ~~Court~~for ~~Western District of Pennsylvania, Case number 16-1669. In~~ the ~~complaint,~~nine ~~the~~month ~~FTC~~period ~~alleges~~ended ~~that,~~January ~~among other matters~~31, ~~the~~2024 ~~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 to redress a rescission of revenue the Company received from the sale of the 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.2023:

On November 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, 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.


	2024		2023
Revenues:
Apparel	$	7,410	$	25,364
House wrap		58,476		46,283

Total revenues	$	65,886	$	71,647

Assets:
Apparel	$	72,703	$	75,972
House wrap		1,441,732		1,391,173

Total assets	$	1,514,435		1,467,145

Depreciation:
Apparel	$	—	$	—
House wrap		1,165		769

Total depreciation	$	1,165	$	769

~~On July 22, 2021, the Registrant was informed that the U~~17.S. ~~Court~~LEGAL of Appeals for the Third District affirmed the District Court’s ruling in favor of the Registrant. The ruling was in connection with the FTC 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 INSULTEX house wrap products.PROCEEDINGS

In On November ~~2021~~4, in2016, ~~connection with~~ the ~~FTC~~Federal ~~litigation,~~Trade ~~the~~Commission ~~Company~~(“FTC”) filed ana ~~application~~complaint ~~for~~against the ~~attorney~~Company ~~fees, expenses and cost~~ in the U.S. District Court ~~for the~~ Western District of Pennsylvania, Case ~~No.2:~~number 16-~~cv-01669-NBF~~1669. OnIn ~~June~~the 29complaint, ~~2022~~the FTC alleges that, among aother ~~settlement~~matters, ~~order~~the ~~was~~Company ~~signed~~did not have substantiation of claims made by the ~~Court.~~Company ~~Pursuant~~regarding the R value and energy efficiency of its INSULTEX house wrap products. The complaint asks to redress a rescission of revenue the ~~Order,~~Company received from the ~~FTC~~sale ~~paid~~of the ~~Company~~house ~~$260~~wrap and a permanent injunction. On September 24,~~000~~ to2020, ~~resolve~~a ~~all~~judgment ~~such~~was entered in favor of the Company as to all claims set forth in the FTC complaint. ~~The~~It ~~parties~~was ~~agreed~~further toordered ~~waive~~that ~~all~~as ~~rights~~there towere ~~appeal~~no ~~or otherwise~~remaining ~~challenge~~claims orin ~~contest~~the action the ~~validity~~case ofshall ~~the~~be ~~Order~~marked as closed.

~~18. SUBSEQUENT EVENTS~~13

~~The~~INNOVATIVE ~~Company has evaluated subsequent events in accordance with ASC Topic 855~~DESIGNS, ~~“Subsequent~~ ~~Events”,~~INC. ~~through September~~ ~~20,~~NOTES ~~2023~~TO ~~which is~~FINANCIAL ~~the date financial statements were available to be issued. The Company identified no material subsequent events that require recognition or additional disclosure in these financial statements.~~STATEMENTS

~~-12-~~On November 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, 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.

~~INNOVATIVE~~On July ~~DESIGNS~~22, 2021, the Registrant was informed that the U.S. Court of Appeals for the Third District affirmed the District Court’s ~~INC~~ruling in favor of the Registrant. The ruling was in connection with the FTC 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 INSULTEX house wrap products.

~~ITEM~~In November 2021, in 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 ~~MANAGEMENT’S~~the ~~DISCUSSION~~Court. ~~AND~~Pursuant ~~ANALYSIS~~to OFthe ~~FINANCIAL~~Order, ~~CONDITION~~the ~~AND~~FTC ~~RESULTS~~paid OFthe ~~OPERATIONS~~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.

~~General~~18. ADOPTED PRONOUNCEMENT

The ~~following information should be~~ ~~read~~requirements inof ~~conjunction with~~ the ~~financial~~following ~~statements~~FASB ~~and~~statement ~~the~~were ~~notes~~adopted ~~thereto~~for ~~and~~the ~~in conjunction with Management~~Company’s ~~Discussion and~~condensed ~~Analysis~~financial ~~of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022.~~statements:

~~Forward~~In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-~~Looking~~13, ~~Statements~~“Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 introduces a new impairment model, the current expected credit loss (“CECL”) model. The model applies to most assets that are measured at amortized cost and requires those assets to be presented at the net amount expected to be collected. In addition, credit losses on available-for-sale debt securities are to be recognized through an allowance account. ASU 2016-13 also expands existing disclosure requirements. ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, and interim periods therein, and requires retrospective application. The Company adopted the new standard effective November 1, 2023, and there were no material changes to the condensed balance sheets, condensed statements of operations, condensed statements of changes in stockholders’ equity, and condensed statements of cash flows as a result of the adoption.

~~This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of the Private Securities Reform Act of 1995~~19. ~~All~~SUBSEQUENT 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 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 matter with the Federal Trade Commission, competition in our cold weather markets, our inability to secure sufficient funding to maintain and/or expand 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, 2017. 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.EVENTS

~~Background~~The Company has evaluated subsequent events in accordance with ASC Topic 855, “Subsequent Events”, through April 26, 2024 which is the date financial statements were available to be issued. The Company identified no material subsequent events that require recognition or additional disclosure in these financial statements.

Innovative Desings, Inc. (herein after referred to as the “Company”, “we” or “our”) was formed on June 25, 2002. We produce, market and sell products made from Insultex, which is a low-density polyethylene semi-crystalline, closed cell foam in which the cells are totally evacuated with buoyancy and thermal resistant properties. Other than Korea and Japan, we are the sole worldwide supplier/ distributor of the Insultex material. Our main product line is a house wrap, Insultex House Wrap, for the building construction industry. Insultex House Wrap is a multi-ply weatherization membrane that provides a protective layer under a building’s outer covering that resists water and air infiltration, preventing mold and mildew buildup that can cause structural rotting. What differentiates Insultex House Wrap from its competition is the fact that it offers an R-Value of R-6. R-value is a term used to measure thermal resistance and is most commonly used when referring to the insulating qualities of a building structure, thus increasing energy efficiency. We also sell a cold weather line of outdoor apparel and cold weather gear call Artic Armor made using Insultex. We no longer produce this line and are only selling from our remaining inventory. The fact that Insultex is a thermal insulation means it has many other applications such as other clothing apparel, tents and sleeping bags. It can also be used in refrigerated environments where keeping the temperature low is a requirement.14

~~-13-~~INNOVATIVE DESIGNS, INC.

~~INNOVATIVE DESIGNS,~~ITEM ~~INC~~2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

~~Results of Operations~~General

~~Comparison~~The offollowing ~~the~~information ~~Three~~should ~~Month~~be ~~Period~~read ~~Ended~~in ~~July~~conjunction ~~31,~~with ~~2023~~the ~~with~~financial statements and the ~~Three~~notes ~~Month~~thereto ~~Period~~and ~~Ended~~in ~~July~~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, ~~2022~~2023.

	Three Month Period Ended 31-Jul 2023		% of Sales			Three Month Period Ended 31-Jul 2022		% of Sales			Increase (Decrease)		% Change
REVENUE - NET	$	124,650.00				$	135,048.00				$	-10,398.00		-8.3	%
OPERATING EXPENSES
Cost of sales	$	76,480.00		61.4	%	$	56,224.00		41.6	%	$	20,256.00		26.5	%
Selling, general and
administrative expenses	$	124,944.00		100.2	%	$	115,384.00		85.4	%	$	9,560.00		7.7	%
Total Operating Expenses	$	201,424.00				$	171,608.00
Loss from operations	$	-76,774.00		-61.6	%	$	-36,560.00		-27.1	%	$	-40,214.00		52.4	%
Other income (expense)
Miscellaneous Income (expense)	$	0.00				$	260,000.00		100.0	%	$	-260,000.00		100.0	%
Interest expense	$	-6,421.00		-5.2	%	$	-10,710.00		-7.9	%	$	4,289.00		-66.8	%
Depreciation	$	-769.00				$	-373.00		-0.3	%	$	-396.00		51.5	%
Total other income (expense)	$	-7,190.00				$	248,917.00		184.3	%	$	-256,107.00		3562.0	%
Net Loss	$	-83,964.00		-7.4	%	$	212,357.00		157.2	%	$	-296,321.00		352.9	%

Forward-Looking Statements

~~Revenues~~This ~~for~~Quarterly ~~the~~Report ~~three~~on ~~month~~Form ~~period~~10-Q includes ~~ended~~forward-looking ~~July~~statements ~~31,~~within ~~2023~~the ~~were~~meaning ~~$124~~of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact,~~650~~ ~~compared~~including tostatements ~~revenues~~regarding future results of ~~$135~~operation,~~048~~ ~~for~~made ~~the~~in ~~three~~this ~~month~~Quarterly ~~period~~Report ~~ended~~on ~~July~~Form 3110-Q are forward-looking statements. We use words such as expects, ~~2021~~believes, intends, and similar expressions to identify forward-looking statements. ~~See~~Forward-looking statements ~~Note~~reflect 16management’s current expectations and are inherently uncertain. Actual results could differ materially for a variety of ~~the~~reasons, ~~Notes~~including, among others, our ability to ~~the~~sell ~~Condensed~~out ~~Financial~~HouseWrap ~~Statements~~product ~~appearing~~line, ~~elsewhere~~our ininability ~~this~~to ~~Report~~secure ~~for~~sufficient afunding to ~~description~~maintain and/or expand our current level of operations. These risks and uncertainties, as well as other risks and uncertainties that could cause our ~~segment~~actual ~~products~~results to differ significantly from management’s expectations, are described in greater detail in our Annual ~~sales.~~Report ~~Our~~on ~~net~~Form ~~loss~~10-K for the ~~three-month~~fiscal ~~period~~year ended ~~July~~October 31, 2023. The Company undertakes no obligation to publicity update or revise any forward-looking statement, ~~was~~whether ~~($83~~as a result of new information,~~964)~~ future events or otherwise except as required by law.

Our cost of sales was $76,480 for the three months ended July 31, 2023, compared to $56,224 for the three months ended July 31, 2022. The increase is largely on account of the increase in the price we pay to our supplier of the House Wrap product line.Background

~~Our~~Innovative ~~selling~~Designs, ~~general~~Inc. (hereinafter referred to as the “Company”, “we” or “our”) was formed on June 25, 2002. We market and ~~administrative~~sell clothing products ~~expenses~~such ~~were~~as ~~$124~~outdoor apparel,~~944~~ ~~for~~and ~~the~~cold ~~three~~weather ~~month~~gear ~~period~~called ~~ended~~“Arctic ~~July~~Armor” 31that are made from INSULTEX, ~~2023~~a ~~compared~~material towith ~~$115~~buoyancy,~~384~~ scent ~~for~~block ~~the~~and ~~three~~thermal ~~month~~resistant ~~period~~properties. ~~ended~~We ~~July~~also market our House Wrap product line which is a building material with thermal qualities. ~~31,~~House ~~2022~~Wrap is also made from INSULTEX. We obtain INSULTEX through a license agreement with the owner and manufacturer of the material. Since our formation we have devoted our efforts to:

~~-14-~~● Completing the development, design and prototypes of our products, ● Obtaining retail stores or sales agents to offer and sell our products, ● Developing our website to sell more of our products.

~~INNOVATIVE DESIGNS, INC.~~15

~~Comparison~~INNOVATIVE ~~of the Nine Month Period Ended July 31~~DESIGNS, ~~2023, with the Nine Month Period Ended July 31, 2022~~INC.

~~The~~Results ~~following table shows a comparison~~ of ~~the~~Operations ~~results of operations between the nine month periods ended July 31, 2023 and July 31, 2022:~~

	Nine Month Period Ended 31-Jul 2023		% of Sales			Nine Month Period Ended 31-Jul 2022		% of Sales			Increase (Decrease)		% Change
REVENUE - NET	$	223,546.00				$	235,164.00				$	-11,618.00		-5.2	%
OPERATING EXPENSES
Cost of sales	$	106,839.00		47.8	%	$	109,884.00		46.7	%	$	-3,045.00		-2.9	%
Selling, general and
administrative expenses	$	359,917.00		161.0	%	$	545,212.00		231.8	%	$	-185,295.00		-51.5	%
Total Operating Expenses	$	466,756.00				$	655,096.00
Loss from operations	$	-243,210.00		-108.8	%	$	-419,932.00		-178.6	%	$	176,722.00		-72.7	%
Other income (expense)
Miscellaneous Income (expense)	$	7,519.00				$	260,000.00		100.0	%	$	-252,481.00		100.0	%
Interest expense	$	-17,652.00		-7.9	%	$	-34,450.00		-14.6	%	$	16,798.00		-95.2	%
Depreciation	$	-2,306.00				$	-1,118.00		-0.5	%	$	-1,188.00		51.5	%
Total other income (expense)	$	-12,439.00				$	224,432.00		95.4	%	$	-236,871.00		1904.3	%
Net Loss	$	-255,649.00		-114.4	%	$	-195,500.00		-83.1	%	$	-60,149.00		23.5	%

Comparison of the Three-Month Period Ended January 31, 2024, with the Three Month Period Ended January 31, 2023

Revenues for the nine month period ended July 31, 2023 were $223,546 compared to revenues of $235,164 for the nine month period ended July 31, 2021. The decrease is caused, by the decrease in our apparel sales and the sales in our House Wrap product line. The apparel sales were adversely affected by warm weather. During the nine month period ended July 31, 2023 House Wrap sales totaled $192,441 in comparison with $176,038 during the nine month period ended July 31, 2022. See Note 16 of the Notes to the Condensed Financial Statements appearing elsewhere in this Report for a description of our segment product sales. Our net loss for the nine month period ended July 31, 2023 was ($255,649).

	Three Month						Three Month
	Period Ended						Period Ended
	31-Jan			%			31-Jan			%			Increase
	2024			of Sales			2023			of Sales			(Decrease)			% Change

REVENUE - NET	$	65,886.00					$	71,647.00					($	5,761.00	)		-8.7	%

OPERATING EXPENSES
Cost of sales	$	34,824.00			52.9	%	$	17,010.00			23.7	%	$	17,814.00			51.2	%
Selling, general and administrative expenses	$	85,682.00			130.0	%	$	113,882.00			158.9	%	($	28,200.00	)		-32.9	%
Total Operating Expenses	$	120,506.00					$	130,892.00
Loss from operations	($	54,620.00	)		-82.9	%	($	59,245.00	)		-82.7	%	$	4,625.00			-8.5	%

Other income (expense)
Miscellaneous Income (expense)	$	0.00					$	7,519.00			100.0	%	($	7,519.00	)		100.0	%
Interest expense	($	7,608.00	)		-11.5	%	($	6,599.00	)		-9.2	%	($	1,009.00	)		13.3	%
Depreciation	($	1,165.00	)				($	769.00	)		-1.1	%	($	396.00	)		34.0	%
Total other income (expense)	($	8,773.00	)				$	151.00			0.2	%	($	8,924.00	)		101.7	%
Net Loss	($	63,393.00	)		-96.2	%	($	59,094.00	)		-82.5	%	($	4,299.00	)		6.8	%

~~Our~~Revenues ~~selling,~~for ~~general~~the ~~and~~three-month ~~administrative~~period ended ~~expenses~~January ~~were~~31, 2024, was $~~106~~65,~~839~~886 compared to revenues of $71,647 for the ~~nine~~three-month ~~months~~period ended ~~July~~January 31, 2023,. ~~compared~~The decrease in revenue is primarily attributable to ~~$109~~less sales of our cold weather apparel product. We are only selling this product line from our existing inventory which has limited sizes and colors. As a result,~~884~~ the distributors we had for ~~the~~this ~~nine~~product ~~month~~line ~~period~~no ~~ended~~longer ~~July~~are ~~31,~~ordering ~~2022~~any of our apparel. ~~Professional~~See ~~fees~~Note 16 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 ~~were~~ended ~~approximately~~January ~~$63~~31,~~000.~~ ~~Salaries~~2024, ~~were~~was ~~approximately~~ $~~107~~ 63,~~000,~~394 ~~travel~~compared ~~expenses~~to ~~were~~a ~~approximately~~ net loss of $20 59,~~000~~094 ~~and~~for ~~rent~~the ~~expense~~same ~~was~~period in ~~$21,000~~2023.

Our selling, general and administrative expenses were $85,682 for the three-15month period ended January 31, 2024, compared to $113,882 for the three-month period ended January 31, 2023.

~~INNOVATIVE~~Liquidity ~~DESIGNS,~~and Capital ~~INC.~~Resources

~~Liquidity~~During ~~and~~the three-month period ended January ~~Capital~~31, ~~Resources~~2024, we funded our operations from revenues from sales, a loan and sale of our common stock.

During the period ~~ended~~we ~~July~~raised 31$131,000 ~~2023~~from the sale of our common stock in private placement. On stockholder exercised warrants to purchase common stock and we received $10,000. In December 2023, we ~~funded~~also ~~our~~issued ~~operations~~a ~~from~~promissory ~~revenues~~note in the principal amount of $50,000. The term of the note is one year and ~~from~~the ~~sales~~interest rate is 6%. We granted a security interest in $100,000 worth of our ~~securities~~inventory. The note is convertible at the holder’s option into shares of our common stock at the rate of $.20 per share.

~~Subsequent to the period we raised $60,000 from the sale of our securities.~~16

~~Short~~INNOVATIVE 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 the financial resources available to the CompanyDESIGNS, ~~finding a suitable facility and bringing technical personnel from abroad to install the equipment~~INC. The Company has currently made deposits of $600,000 on the equipment. The Company has incurred $17,000 of additional expenses related to shipping. Earlier this year, our CEO traveled to Indonesia to inspect the manufacturing facility of the Ketut Group where Insultex is currently produced. He also discussed with Ketut management the plans for the Company to install in the United States the machinery and equipment utilized to produce the Insultex material and for Ketut to arrange for the technical personal needed to assist in the installation. The Company is currently looking for a suitable site for the onshore manufacturing of Insultex. It is also seeking the financing needed to accomplish the installation which is estimated to cost between 1.5 to 2 million dollars.

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 ~~produce~~be the propriety formula that creates INSULTEX. The Company took delivery of the ~~Insultex~~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 the financial resources available to the Company, finding a suitable facility and bringing technical personnel from abroad to install the equipment. The Company has currently made deposits of $637,000 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 14 of the Notes to the Condensed Financial Statements.

WeThe ~~must purchase~~ new quality control testing ~~equipment~~ equipment for our ~~products~~House Wrap Product line has been built. ~~The~~We ~~vendor~~have isreached ~~currently~~an ~~working~~agreement with the vendor on the ~~project~~final ~~and~~amount weowed. The total cost of the equipment was approximately $114,000. We expect to accept delivery of the equipment ~~within~~when ~~the~~our ~~next few~~testing ~~weeks.~~lab ~~After~~has ~~such~~secured a new testing facility. Once the equipment is ~~complete~~installed ~~the~~it will have to go through a certification process. ~~can~~Once the testing equipment is certified, we intend to begin. Wethe ~~have~~process ~~paid~~of ~~approximately~~having ~~$39~~Insultex certified by ICC Evaluation Services,~~000~~ asLLC of(“ICC-ES”). ~~July~~ICC-ES 31certifies, ~~2023~~among other items, building materials and products of which our House Wrap falls under. The reason we need to have ICC-ES certification is that we believe in order to get large orders for House Wrap, ICC-ES certification will be required. The other component part of the House ~~equipment~~Wrap produced by a third party is ICC-Es certified. Getting ICC-ES certification is costly and time consuming.

Long Term: The Company will continue to fund its operations from revenues, borrowings from private parties and the possible sale of our securities. 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~~INSULTEX would be delayed.

~~-16-~~PART II – OTHER INFORMATION

~~INNOVATIVE DESIGNS,~~ITEM ~~INC~~1. LEGAL PROCEEDING

~~PART~~See IILegal –Proceedings ~~OTHER~~set ~~INFORMATION~~forth in Part I Item 3 of the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2023.

ITEM ~~1. LEGAL~~1A ~~PROCEEDING~~Risk Factors

~~See~~As ~~Note~~a 17smaller ofreporting ~~the~~company, ~~Notes~~we toare ~~Condensed~~not ~~Financial~~required ~~Statements~~to ~~appearing~~provide ~~elsewhere~~the ininformation required by this ~~Report~~Item.

ITEM ~~2. UNREGISTERED SALES~~1B OFClimate-Related ~~EQUITY SECURITIES AND USE OF PROCEEDS~~Disclosure

~~On May 17, 2023, we issued 185,000 shares of our common stock to~~ n/a consultant for services pursuant to an agreement dated April 17, 2023. Also on May 17, 2023, we sold 50,000 Units to one investor at a price of $.20 per Unit. Each Unit contained one share of common stock and a warrant with a two year term to purchase one share of common stock. The warrant has an exercise price of $.20 per warrant. We received $10,000 in proceeds.

~~On June 2, 2023,~~ITEM ~~, we sold 40,000 Units each to one investors at a price of $~~2.25 ~~per~~UNREGISTERED ~~Unit.~~SALES ~~The~~OF ~~warrant~~EQUITY ~~had~~SECURITIES anAND ~~exercise~~USE ~~price~~OF ~~of $.25. We received $10,000 in total proceeds.~~PROCEEDS

On ~~June~~October 231, 2023, we asold ~~warrant~~100,000 ~~holder~~Units ~~exercised~~each ~~warrants~~ to ~~purchase~~two 40investors for total proceed of $46,000. ~~shares~~Each Unit consisted of one share of common stock atand anone ~~exercise~~warrant to ~~price~~purchase a share of common stock at $.25 per share. WeThe ~~received~~term ~~$10,000 in~~of ~~proceeds~~the warrants are two years.

~~Between~~On ~~August 16~~November 28, 2023, we ~~and~~issue ~~August 24~~630,000 ~~2023,~~shares weof ~~sold~~our acommon ~~total~~stock ofto ~~180,000~~our ~~Unites~~landlord toin ~~five~~payment ~~investors~~of atback arent ~~price~~valued ofat $113,400.25 ~~per~~We ~~Unit.~~also ~~The~~issued ~~warrant~~40,000 ~~had~~shares to ana ~~exercise~~director for consulting services at a price of $~~0.25~~20 per ~~warrant~~share. ~~Total proceeds were $45,000.~~

~~On September 6, 2023, we sold 20,000 Units each to three investors at a price of $.25 per Unit. The warrant had an exercise price of $.25 per warrant.~~17

WeINNOVATIVE ~~relied on Rule 506 of Regulation D promulgated under the Securities Act of 1933~~DESIGNS, ~~as amended~~INC.

~~-17-~~On December 27, 2023, we sold 25,000 Units to one investor and received proceeds of $5,000.

~~INNOVATIVE~~On ~~DESIGNS~~December 21, 2023, ~~INC~~we sold 32,000 Units to one investor and received proceeds of $5,120.

~~ITEM~~On ~~3. QUANTITATATIVE~~January ~~AND~~10, ~~QUALITATIVE DISCLOSURES~~2024, ~~ABOUT~~we ~~MARKET~~sold ~~RISK~~60,000 Units to one investor and received proceeds of $10,800.

AsOn aJanuary ~~smaller reporting company~~15, we2024, ~~are~~we ~~not~~sold ~~required~~50,000 Units to ~~provide~~one ~~the~~investor ~~information~~and ~~otherwise~~received ~~required~~proceeds byof ~~this~~$10,000. ~~Item~~We also sold 277,778 Units to one investor and received proceeds of $50,000.

~~ITEM~~On ~~4T. CONTROLS~~January ~~AND~~17, 2024, ~~PROCEDURES~~we sold 25,00 Units to one investor and received proceeds of $5,000.

~~Management~~On ~~has~~January ~~developed and implemented a policy and procedures for reviewing~~22, ~~on a quarterly basis~~2024, ~~our disclosure controls and procedures. During the period ended July~~ ~~31, 2023, our principal executive/financial officer concluded that these controls and procedures were ineffective. At this time,~~ we dosold ~~not have the financial resources to employ a financial staff with accounting and financial expertise. Once we have the necessary financial resources~~55,555 weUnits ~~plan~~ to ~~hire~~one ~~and~~investor ~~designate an individual responsible for identifying reportable developments~~ and toreceived ~~implement procedures~~proceeds ~~designed~~of ~~to remediate the material weakness by focusing additional attention and resources in our internal accounting functions~~$10,000.

~~Changes~~On inJanuary ~~Internal~~24, ~~Control~~2024, we ~~Over~~sold ~~Financial Reporting~~55,555 Units to one investor and received proceeds of $10,000.

~~During~~On ~~the~~February ~~most~~8, ~~recent fiscal quarter~~2024, ~~there~~we ~~were~~sold 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 affected55,555 orUnits ~~are reasonably likely~~ to ~~materially affect,~~one ~~the~~investor ~~Company’s~~and ~~internal~~received ~~control~~proceeds ~~over~~of ~~financial reporting~~$10,000.

~~Until~~We ~~the~~relied ~~Company~~on ~~has the financial~~Section ~~resources~~4 to(2) ~~employ~~of athe ~~financial~~Securities ~~staff~~Act ~~with~~of ~~accounting and financial expertise~~1933, toas ~~be able to properly account for internal financial reporting~~amended, ~~errors~~and ~~that~~regulation ~~may~~D ~~have~~promulgated athereunder ~~material~~as ~~effect on~~ the ~~financial~~exemptions ~~statements~~from ~~have~~registration for the ~~potential to occur~~above transactions.

~~-18-~~ITEM 3. Defaults upon Senior Securities

~~INNOVATIVE DESIGNS, INC.~~None

~~ITEM~~Item ~~6. EXHIBITS~~4 Mine Safety Disclosures

*3.1		Revised Certificate of Incorporation
**3.2		By-Laws
31.1		Rule 13a - 14a Certification of Chief Executive Officer and Chief Financial Officer
31.2		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
31.2		Section 1350 Certification of Chief Financial Officer and Chief Accounting Officer

Not applicable

	*	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

ITEM 4T. CONTROLS AND PROCEDURES

~~-19-~~As of January 31, 2024, our Chief Executive Officer/Chief Financial Officer identified the following specific material weaknesses in the Company’s internal controls over its financial reporting processes:

~~SIGNATURES~~● The Company is not maintaining supporting schedules, 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.

~~Pursuant~~This was due to our limited resources, including the ~~requirements~~absence of ~~the Securities~~an ~~Exchange~~internal ~~Act~~financial ofstaff ~~1934,~~member ~~the~~with ~~registrant~~accounting ~~has~~and ~~duly~~financial ~~caused~~expertise ~~this~~and ~~report~~deficiencies toin bethe ~~signed~~design onor operation ~~its~~of ~~behalf~~our byinternal ~~the~~control ~~undersigned,~~over ~~thereunto duly~~financial ~~authorized~~reporting that adversely affected our disclosure controls.

	Innovative Designs, Inc.
	Registrant
Date: September 25, 2023	By: /s/ Joseph Riccelli
	Joseph Riccelli, Chief Executive Officer
	and Chief Financial Officer

However, the material weakness will not be considered remediated until the applicable remedial controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.

~~-20-~~Item 5. Other Information.

During the quarter ended January 31, 2024, no director or officer, as defined in Rule 16a-1(f) promulgated under the Securities Exchange Act of 1934, as amended ( the “Exchange Act”) adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” as each term is defined in Item 408(a) of Regulation S-K of the Exchange Act.

INNOVATIVE DESIGNS, INC.

ITEM 6. EXHIBITS

*3.1	Revised Certificate of Incorporation
**3.2	By-Laws
10.0	Form of convertible note
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 November 4, 2016

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: April 30, 2024	by:	/s/ Joseph Riccelli
		Joseph Riccelli, Chief Executive Officer and Chief Financial Officer

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