Innovative Designs 2026 profit, going-concern risk

INNOVATIVE DESIGNS INC (IVDN) reported higher sales and remained profitable for the nine months ended July 31, 2026, but continues to face financial risk.

Rhea-AI Filing Summary

INNOVATIVE DESIGNS INC (IVDN) reported higher sales and remained profitable for the nine months ended July 31, 2026, but continues to face financial risk. Revenue rose to $2.20 million from $1.95 million, driven entirely by increased House Wrap sales, and net income edged up to $313,728 from $302,853.

Cash from operating activities strengthened to $444,619, lifting cash to $872,929 and keeping total liabilities relatively low at $282,945 versus assets of $2.66 million. However, the company still carries an accumulated deficit of $9.73 million and discloses that these factors, along with reliance on stock sales and private borrowings, raise substantial doubt about its ability to continue as a going concern. Operations depend on a single Indonesian supplier for Insultex and on key executive Joseph A. Riccelli Jr., and management acknowledges internal control weaknesses due to limited finance staff. The company is discontinuing its Arctic Armor, hunting and swimming apparel lines, has reserved $65,600 against apparel inventory, and has committed $702,083 in deposits toward Insultex production equipment as it works to internalize material supply.

Positive

• Revenue grew 12.6% to $2,199,114 for the nine months ended July 31, 2026, from $1,952,921 a year earlier, and the company generated net income of $313,728 and operating cash flow of $444,619, showing profitable, cash-generating operations over the period.

Negative

• Management states that an accumulated deficit of $9,731,603 and dependence on cash receipts from sales, stock issuances and private borrowings raise substantial doubt about the company’s ability to continue as a going concern for one year from issuance.
• The company discloses a continuing material weakness in internal control, noting that without sufficient full-time financial staff, errors that may have a material effect on the financial statements have the potential to occur.
• Operations rely on a single source of Insultex from an Indonesian manufacturer; the company states that if it cannot obtain Insultex from this source, it could no longer maintain operations, creating significant supply-chain risk.

Filing Explained

At July 31, 2026, common shares remained 38,504,003 while reported warrants totaled 2,549,443.

This Form 10-Q is an unaudited quarterly update through July 31, 2026. It reports $702,083 of equipment deposits, but says the company does not yet possess the equipment and expects to acquire it in the near future.

The filing reports $38,504,003 shares of common stock outstanding, unchanged from October 31, 2025. It separately reports 2,549,443 warrants outstanding, up from 2,429,443, without establishing that the warrants were exercised or that additional shares were issued.

Key Figures

Revenue (nine months): $2,199,114 Net income (nine months): $313,728 Operating cash flow: $444,619 +5 more

8 metrics

Revenue (nine months) $2,199,114 Nine months ended July 31, 2026; $1,952,921 in the prior-year period

Net income (nine months) $313,728 Nine months ended July 31, 2026; $302,853 in the prior-year period

Operating cash flow $444,619 Net cash provided by operating activities for the nine months ended July 31, 2026

Cash and cash equivalents $872,929 Balance as of July 31, 2026; $605,052 at October 31, 2025

Total assets $2,656,251 As of July 31, 2026

Total liabilities $282,945 As of July 31, 2026

Accumulated deficit $9,731,603 As of July 31, 2026, per stockholders’ deficit section

Deposits on equipment $702,083 Total deposits on equipment as of July 31, 2026; $662,944 at October 31, 2025

Key Terms

going concern, accumulated deficit, current expected credit loss (CECL), right of use (“ROU”) model, +2 more

6 terms

going concern financial

"These factors raise substantial doubt regarding the Company’s ability to continue as a going concern"

Going concern is the accounting assumption that a company will keep operating and meeting its obligations for the foreseeable future. The phrase matters most when a company or its auditors disclose substantial doubt about it, a formal warning that the business may not have enough resources to continue without raising money, restructuring, or selling assets. That language in a filing or press release signals elevated financial risk.

accumulated deficit financial

"In addition, the Company has an accumulated deficit of ($9,731,603)"

Accumulated deficit is the running total of a company’s past net losses minus any profits, showing how much the business has eaten into its own funds over time—think of it like a bank account that’s been overdrawn by repeated shortfalls. It matters to investors because a large accumulated deficit reduces the cushion that protects owners and creditors, can limit dividends or borrowing, and signals how much funding the company may need to reach profitability.

current expected credit loss (CECL) financial

"introduces a new impairment model, the current expected credit loss (“CECL”) model"

right of use (“ROU”) model financial

"FASB ASC Topic 842,”Leases”, establishes a right of use (“ROU”) model"

short-term lease exemption financial

"the Company has elected to apply the short-term lease exemption to its lease"

Insultex technical

"Insultex is manufactured by a company in Indonesia using proprietary technology"

Earnings Snapshot

Revenue: $2,199,114

Nine months ended July 31, 2026

Revenue $2,199,114 up from $1,952,921 for the nine months ended July 31, 2025

Net income $313,728 up from $302,853 for the nine months ended July 31, 2025

Net cash provided by operating activities $444,619 up from $320,842 for the nine months ended July 31, 2025

Basic and diluted EPS $0.01 unchanged from $0.01 for the nine months ended July 31, 2025

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did IVDN’s revenue change for the nine months ended July 31, 2026?

IVDN’s revenue was $2,199,114 for the nine months ended July 31, 2026, compared with $1,952,921 for the same period in 2025, a 12.6% increase attributable solely to higher sales of its House Wrap product line.

What was IVDN’s profitability for the nine months ended July 31, 2026?

IVDN reported net income of $313,728 for the nine months ended July 31, 2026, compared with $302,853 for the prior-year period, and basic and diluted earnings per share of $0.01 based on 38,504,336 weighted average common shares outstanding.

Does INNOVATIVE DESIGNS INC raise going concern doubts in this 10-Q?

Yes. The company cites net income of $313,728, positive operating cash flow of $444,619, and an accumulated deficit of $9,731,603, and states these factors raise substantial doubt about its ability to continue as a going concern for one year from issuance.

What is IVDN’s cash and debt position as of July 31, 2026?

As of July 31, 2026, IVDN held $872,929 in cash and cash equivalents, up from $605,052 at October 31, 2025. Total liabilities were $282,945, and the company reports that all notes payable are up to date, with a prior $20,000 loan repaid in full.

What key operational risks does IVDN highlight in this filing?

IVDN notes dependence on a single Indonesian supplier of Insultex and states it could no longer maintain operations if supply ceased. It also highlights reliance on President/CEO Joseph A. Riccelli Jr. and acknowledges limited financial staff as a control risk.

What inventory and product decisions did IVDN disclose?

IVDN decided to discontinue manufacturing its Arctic Armor, hunting and swimming apparel lines and recorded an obsolete inventory reserve of $65,600 against apparel inventory. Total inventory before this allowance was $591,974 as of July 31, 2026.

How much has IVDN invested in equipment to produce Insultex?

The company reports deposits on equipment totaling $702,083 as of July 31, 2026, up from $662,944 at October 31, 2025, including a $39,139 payment on January 12, 2026 to complete the purchase of a piece of equipment it expects to receive in the near future.

AI-generated analysis. How Rhea-AI works. Not financial advice.

10-Q Quarterly Reports: What Changes Quarter to Quarter →

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Available on EDGAR 09/16/2026 - 07:11 AM Accepted by SEC EDGAR 09/16/2026 - 07:10 AM Learn about SEC filing dates

false --10-31 2026 Q3 0001190370 0001190370 2025-11-01 2026-07-31 0001190370 2026-07-31 0001190370 2025-10-31 0001190370 2024-11-01 2025-07-31 0001190370 2026-05-01 2026-07-31 0001190370 2025-05-01 2025-07-31 0001190370 us-gaap:CommonStockMember 2024-10-31 0001190370 us-gaap:AdditionalPaidInCapitalMember 2024-10-31 0001190370 us-gaap:RetainedEarningsMember 2024-10-31 0001190370 2024-10-31 0001190370 us-gaap:CommonStockMember 2025-01-31 0001190370 us-gaap:AdditionalPaidInCapitalMember 2025-01-31 0001190370 us-gaap:RetainedEarningsMember 2025-01-31 0001190370 2025-01-31 0001190370 us-gaap:CommonStockMember 2025-04-30 0001190370 us-gaap:AdditionalPaidInCapitalMember 2025-04-30 0001190370 us-gaap:RetainedEarningsMember 2025-04-30 0001190370 2025-04-30 0001190370 us-gaap:CommonStockMember 2025-10-31 0001190370 us-gaap:AdditionalPaidInCapitalMember 2025-10-31 0001190370 us-gaap:RetainedEarningsMember 2025-10-31 0001190370 us-gaap:CommonStockMember 2026-01-31 0001190370 us-gaap:AdditionalPaidInCapitalMember 2026-01-31 0001190370 us-gaap:RetainedEarningsMember 2026-01-31 0001190370 2026-01-31 0001190370 us-gaap:CommonStockMember 2026-04-30 0001190370 us-gaap:AdditionalPaidInCapitalMember 2026-04-30 0001190370 us-gaap:RetainedEarningsMember 2026-04-30 0001190370 2026-04-30 0001190370 us-gaap:CommonStockMember 2024-11-01 2025-01-31 0001190370 us-gaap:AdditionalPaidInCapitalMember 2024-11-01 2025-01-31 0001190370 us-gaap:RetainedEarningsMember 2024-11-01 2025-01-31 0001190370 2024-11-01 2025-01-31 0001190370 us-gaap:CommonStockMember 2025-02-01 2025-04-30 0001190370 us-gaap:AdditionalPaidInCapitalMember 2025-02-01 2025-04-30 0001190370 us-gaap:RetainedEarningsMember 2025-02-01 2025-04-30 0001190370 2025-02-01 2025-04-30 0001190370 us-gaap:CommonStockMember 2025-05-01 2025-07-31 0001190370 us-gaap:AdditionalPaidInCapitalMember 2025-05-01 2025-07-31 0001190370 us-gaap:RetainedEarningsMember 2025-05-01 2025-07-31 0001190370 us-gaap:CommonStockMember 2025-11-01 2026-01-31 0001190370 us-gaap:AdditionalPaidInCapitalMember 2025-11-01 2026-01-31 0001190370 us-gaap:RetainedEarningsMember 2025-11-01 2026-01-31 0001190370 2025-11-01 2026-01-31 0001190370 us-gaap:CommonStockMember 2026-02-01 2026-04-30 0001190370 us-gaap:AdditionalPaidInCapitalMember 2026-02-01 2026-04-30 0001190370 us-gaap:RetainedEarningsMember 2026-02-01 2026-04-30 0001190370 2026-02-01 2026-04-30 0001190370 us-gaap:CommonStockMember 2026-05-01 2026-07-31 0001190370 us-gaap:AdditionalPaidInCapitalMember 2026-05-01 2026-07-31 0001190370 us-gaap:RetainedEarningsMember 2026-05-01 2026-07-31 0001190370 us-gaap:CommonStockMember 2025-07-31 0001190370 us-gaap:AdditionalPaidInCapitalMember 2025-07-31 0001190370 us-gaap:RetainedEarningsMember 2025-07-31 0001190370 2025-07-31 0001190370 us-gaap:CommonStockMember 2026-07-31 0001190370 us-gaap:AdditionalPaidInCapitalMember 2026-07-31 0001190370 us-gaap:RetainedEarningsMember 2026-07-31 0001190370 2013-01-31 0001190370 2013-01-01 2013-01-31 0001190370 ivdn:KetutJayaMember ivdn:INSULTEXMaterialMember 2015-07-11 2015-07-12 0001190370 ivdn:KetutJayaMember ivdn:INSULTEXMaterialMember 2025-11-01 2026-07-31 0001190370 ivdn:KetutJayaMember ivdn:INSULTEXMaterialMember 2017-11-01 2018-10-31 0001190370 ivdn:KetutJayaMember ivdn:INSULTEXMaterialMember 2018-11-01 2019-10-31 0001190370 ivdn:KetutJayaMember ivdn:INSULTEXMaterialMember 2022-11-01 2023-10-31 0001190370 ivdn:SeparatePieceOfEquipmentsMember 2022-10-31 0001190370 ivdn:SeparatePieceOfEquipmentsMember 2023-10-31 0001190370 ivdn:SeparatePieceOfEquipmentsMember 2026-01-12 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure

AUNITED STATES
SECURITIESAND 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 31, 2026 OR

☐ 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 IncludingArea Code)

N/A

(Former Name or FormerAddress, 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 ☒ 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 ExchangeAct.

(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 ExchangeAct). YES ☐ NO ☒

As of July 31, 2026, there were 38,504,003 shares of the Registrant’s common stock, par value $.0001 per share, outstanding. Transitional Small Business Disclosure Format: YES ☐ NO ☒

1

Innovative Designs, Inc.

Index

Form 10-Q for the Quarter Ended July 31, 2026

		Page No.
	Part I -- Financial Information	3
Item 1.	Condensed Financial Statements (Unaudited)	3
	Condensed Balance Sheets as of July 31, 2026 (Unaudited) And October 31, 2025	3
	Condensed Statements of Operations for the Three Month Periods Ended July 31, 2026 and 2025 (Unaudited)	4
	Condensed Statements of Changes in Stockholders’ Equity as of July 31, 2026 (Unaudited) and October 31, 2025	5
	Condensed Statements of Cash Flows for the Three Month Periods Ended July 31, 2026 and 2025 (Unaudited)	6
	Notes to the Condensed Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	11
	Part II -- Other Information	13
Items	1, 2, 3, 4, 4T and 5.	13
Item 6.	Exhibits	14

2

 PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

INNOVATIVE DESIGNS, INC.

Condensed Balance Sheets

As of July 31, 2026 (Unaudited) and October 31, 2025 (Audited)

		July 31, 2026				October 31, 2025
Assets
Current assets
Cash and Cash Equivalents		$	872,929			$	605,052
Accounts Receivable, Net			127,854				344,700
Inventory, Net			526,374				537,713
Other Current Assets			58,535				31,078
Total current assets			1,585,692				1,518,543
Long-Term Assets
Property, Plant, and Equipment, Net			92,295				30,530
Deposits on Inventory			220,181				—
Deposits on Equipment			702,083				662,944
Other Long-Term Assets			56,000
Total Long-Term Assets			1,070,559				693,474
Total assets		$	2,656,251			$	2,212,017
Liabilities and Stockholders’ Deficit
Current liabilities
Credit Cards		$	4,691			$	11,964
Accounts Payable			196,641				78,750
Other current Liabilities			68,713				38,824
Total current liabilities			270,045				129,538
Long-Term Liabilities
Reserve for unpaid debt			12,900				12,900
Long-Term Shareholder Loans			—				10,000
Total Long-Term Liabilities			12,900				22,900
Total liabilities			282,945				152,438
Stockholders’ deficit
Common stock, $0.0001 par value; 100,000,000 shares authorized; 38,504,003 and 38,504,003 shares issued and outstanding as of July 31, 2026 and October 31, 2025, respectively			3,850				3,850
Additional paid-in capital			12,101,059				12,101,059
Accumulated deficit			(9,731,603	)			(10,045,330	)
Total stockholders’ deficit			2,373,306				2,059,579
Total liabilities and stockholders’ deficit		$	2,656,251			$	2,212,017

See accompanying notes to financial statements.

3

INNOVATIVE DESIGNS, INC.

Condensed Statements of Operations

For the Nine Months Ended July 31, 2026, and 2025

(Unaudited)

		For the Nine Months ended July 31,								For the Three Months Ended July 31,
		2026				2025				2026				2025
REVENUES, net		$	2,199,114			$	1,952,921			$	758,247			$	612,636
OPERATING EXPENSES
Cost of sales			1,085,381				983,004				422,981				356,102
SG&A Expense			790,588				664,725				278,899				192,830
Total operating expenses			1,875,969				1,647,329				701,880				548,932
Income (loss) from operations			323,145				305,192				56,367				63,704
OTHER INCOME (EXPENSES)
Cash Rewards							513								360
Interest Income			6,300				3,151				3,391				564
Interest expense			(5,879	)			—				(1,540	)			—
Depreciation			(9,838	)			(6,003	)			(2,192	)			(2,192	)
Total other income (expense)			(9,417	)			(2,339	)			(341	)			(1,268	)
Net income (loss)		$	313,728			$	302,853			$	56,026			$	62,436
Loss per share of common stock
- Basic and diluted		$	0.01			$	0.01				0.01			$	0.001
Weighted average shares of common stock
- Basic			38,504,336				38,504,336			$	38,504,336				38,504,336
- Diluted			38,504,336				38,504,336

See accompanying notes to financial statements.

4

INNOVATIVE DESIGNS, INC.

Condensed Statements of Changes in Stockholders’ Equity

Nine Months Ended July 31, 2026, and 2025

(Unaudited)

		Common Stock								Additional Paid in				Accumulated				Total Stockholders’
		Shares				Amount				Capital				Deficit				Deficit
Balance October 31, 2024			37,924,003			$	3,792			$	11,979,117			$	(10,540,033	)		$	1,442,876
Sale of stock			120,000				12				29,988				—				30,000
Shares issued for services			260,000				26				51,974				—				52,000
Net income (loss)			—				—				—				36,202				36,202
Balance January 31, 2025			38,304,003				3,830				12,061,079				(10,503,831	)			1,561,078
Sale of Stock			50,000			$	5			$	9,995				—			$	10,000
Shares issue for Services			150,000			$	15				29,985							$	30,000
Net Income (Loss)			—				—				—			$	204,188			$	204,189
Balance April 30, 2025			38,504,003			$	3,850			$	12,101,059			$	(10,299,643	)		$	1,805,266
Sale of Stock			—				—				—				—				—
Shares Issues for Services			—				—				—				—				—
Net Income (Loss)			—				—				—			$	62,436			$	62,436
Balance July 31, 2026			38,504,003			$	3,850			$	12,101,059			$	(10,237,207	)		$	1,867,702
Balance October 31, 2025			38,504,003				3,850				12,101,059				(10,045,330	)			2,059,579
Sale of stock			—				—				—				—				—
Shares issued for Services			—				—				—				—				—
Net Income (Loss)			—				—				—				151,641				151,641
Balance January 31, 2026			38,504,003			$	3,850			$	12,101,059			$	(9,893,689	)		$	2,221,220
Sale of Stock			—			$	—			$	—							$	—
Stock issued for Commission			—			$	—			$	—							$	—
Net Income (Loss)														$	106,060			$	106,060
Balance April 30, 2026			38,504,003			$	3,850			$	12,101,059			$	(9,787,629	)		$	2,327,280
Sale of Stock			—			$	—			$	—			$	—			$	—
Stock Issued for Services			—			$	—			$	—			$	—			$	—
Net Income (Loss)			—				—				—			$	56,026			$	56,026
Balance July 31, 2026			38,504,003			$	3,850			$	12,101,059			$	9,731,603			$	2,383,306

See accompanying notes to financial statements.

5

INNOVATIVE DESIGNS, INC.

Statements of Cash Flows

For the Nine Months Ended July 31, 2026 and 2025

(Unaudited)

		2025				2025
Cash flows from operating activities
Net income (loss)		$	313,728			$	302,853
Stock issuance for services			—				82,000
Depreciation			9,838				6,003
Gain on sale of assets			—				—
Adjustments to reconcile net income to net cash provided by operating activities:
Accounts receivable and other receivables			189,389				50,593
Inventory			11,339				3,774
Deposits in inventory			(220,181	)			(90,000	)
Credit card payable			(7,273	)			(47,087	)
Accounts payable and accrued expenses			147,779				13,426
Net cash provided by (used in) operating activities			444,619				320,842
Cash flows from investing activities
Purchase of assets			(71,603	)			(10,666	)
Deposits on equipment			(39,139	)			—
Investments			(56,000	)			—
Net cash provided by (used in) financing activities			(166,742	)			(10,666	)
Cash flows from financing activities
Proceeds from sale of stock			—				40,000
Payment on notes payable			(10,000	)			(32,410	)
Increase (Decrease) in reserve for unpaid debt			—				12,900
Net cash provided by (used in) investing activities			(10,000	)			20,491
Net change in cash and cash equivalents			267,877				330,667
Cash and cash equivalents, beginning of period			605,052				201,765
Cash and cash equivalents, end of period		$	872,929			$	532,432

6

INNOVATIVE DESIGNS, INC.

Notes to the Condensed Financial Statements

For the Period Ended July 31, 2026

NOTE 1 - BASIS OF PRESENTATION

In the opinion of management, the accompanying unaudited financial statements contain all adjustments necessary to present fairly Innovative Designs, Inc.’s (the “Company”) financial position as of July 31, 2026, the changes therein for the three-month periods that ended and the results of operations for the three-month periods ended July 31, 2026.

The 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 generally accepted accounting principles 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 ending October 31, 2025. The results of operations for the three-month period ending July 31, 2026, are not necessarily indicative of operating results for the full year.

The Company’s unaudited condensed financial statements have been prepared in accordance with GAAP and pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these consolidated financial statements should be read in conjunction with the audited financial statements as of and for the year ended October 31, 2025, and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2025, filed with the SEC on January 30, 2026 (the “2025 Annual Report”). The results for any interim period are not necessarily indicative of results for any future period.

The unaudited condensed financial statements have been prepared on the same basis as the audited financial statements. In the opinion of the Company’s management, the accompanying unaudited consolidated financial statements contain all adjustments that are necessary to present fairly the Company’s financial position and results of operations for the interim periods presented. The results for the three months ended July 31, 2026, are not necessarily indicative of the results for the year ending October 31, 2025, or for any future period.

As of July 31, 2026, there have been no material changes in the Company’s significant accounting policies from those that were disclosed in the 2025 annual report.

NOTE 2 – GOING CONCERN

These 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. The Company had a net income of $313,728 and a positive cash flow of $444,619 from operation activities for the nine-month period ending July 31, 2026. In addition, the Company has an accumulated deficit of ($9,731,603). 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.

NOTE 3 – ACCOUNTS RECEIVABLE

Accounts receivables are reported at their net realizable value. 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 $0 in receivables over 90 days as of July 31, 2026, and no balances over 90 days as of October 31, 2025. As of July 31, 2026, the balance of accounts receivable was $127,854, net of allowances.

7

NOTE 4 – INVENTORY

Inventory consists principally of purchased apparel inventory and house wrap which is manufactured by the Company. Inventory is stated at the lower of cost or net realizable value on a first-in, first-out basis. 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, 2026 and October 31, 2025 of $65,600. 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. As of July 31, 2026, the total value of the inventory on hand prior to the allowance for obsolete inventory is $591,974.

NOTE 5 – WARRANTIES

The Company provides a ten-year limited warranty covering defects in workmanship. These warranties are included in the contract 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. Management has determined that no warranty reserve is currently necessary on the Company’s products. Management will continue to evaluate the need for a warranty reserve throughout the year and make adjustments as needed.

NOTE 6 – NOTES PAYABLE

In January 2013, the Company entered into a loan agreement with Corinthian Development for $20,000 to fund operations of the Company. This loan is due on demand, including interest at an annual rate of 10% with an original maturity date of May 2013. This loan was extended through a verbal agreement and currently has no set maturity date. On February 27, 2026, the loan was paid back in full. As of July 31, 2026, the balance of the loan was $0.

As of July 31, 2026, all notes payables are up to date.

NOTE 7 – REVENUES

Revenues are measured based on the amount of consideration specified in a contract with a customer. The 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.

To determine proper revenue recognition, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether a combined or single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment, and the decision to combine contracts or separate a combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. Contracts are considered to contain a single performance obligation if the promise to transfer individual goods or services is not separately identifiable from other promises in the contracts.

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.

NOTE 8 – EARNINGS PER SHARE

The Company calculates net 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. In addition, the Company also has stock warrants of 2,549,443 and 2,429,443 as of July 31, 2026, and October 31, 2025, respectively. The Company has calculated diluted earnings per share utilizing the outstanding stock warrants and convertible debt

8

NOTE 9 – INCOME TAXES

The Company accounts for income taxes in accordance with FASB 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 10 – 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 $32,653 and $74,320 for the three-months ended July 31, 2026 and 2025, respectively.

NOTE 11 – COMMON STOCK

As of July 31, 2026, the total stock issued is 38,504,003

NOTE 12 – DEPOSITS ON EQUIPMENT

On July 12, 2015, the Company reached an agreement with Ketut Jaya to purchase the machinery and equipment utilized to produce the INSULTEX material. The purchase price is $700,000 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.

During the fiscal year ended October 31, 2022, the Company made deposits on a separate piece of equipment of $7,370. During the fiscal year ended October 31, 2023, the Company made additional deposits of $29,574 on this piece of equipment. On January 12, 2026, a payment in the amount of $39,139 was made to complete the purchase of this equipment. The company does not currently have this equipment in their possession and expect to acquire it in the near future.

There have been no additional deposits made as of July 31, 2026

Total overall deposits on equipment as of July 31, 2026 and October 31, 2025 were $702,083 and $662,944, respectively.

NOTE 13 – LEASE

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.

9

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-term lease exemption to its lease of the facilities and therefore has not recorded a ROU asset and related lease liability.

NOTE 14 – LEGAL PROCEEDINGS

On November 4, 2016, the Federal Trade Commission (“FTC”) filed a complaint against the Company in the U.S. District Court Western District of Pennsylvania, 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 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.

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.

On July 22, 2021, the Registrant was informed that the U.S. 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 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.

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 the Court. Pursuant to the Order, the FTC paid 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 Order.

As of July 31, 2026, there are no additional or current legal proceedings.

NOTE 15 – ADOPTED PRONOUNCEMENT

The requirements of the following FASB statement were adopted for the Company’s condensed financial statements:

In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, ”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.

NOTE 16 – SUBSEQUENT EVENTS

The Company has evaluated subsequent events in accordance with ASC Topic 855, ”Subsequent Events”, through the date financial statements were available to be issued. The Company identified no material subsequent events that require recognition or disclosure except the following:

As of July 31, 2026, there are no material subsequent events to report

10

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

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, 2025.

Forward-Looking Statements

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 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, competition in our cold weather markets, our ability to sell out HouseWrap product line, 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, 2021. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise except as required by law.

Background

Innovative Designs, Inc. (hereinafter referred to as the “Company”, “we” or “our”) was formed on June 25, 2002. We market and sell clothing products such as outdoor apparel, and cold weather gear called “Arctic Armor” that are made from IINSULTEX, a material with buoyancy, scent block and thermal resistant properties. We also market our House Wrap product line, which is a building material with thermal qualities. House Wrap is also made from IINSULTEX. We obtain IINSULTEX through a license agreement with the owner and manufacturer of the material. Since our formation we have devoted our efforts to:

● Complete 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.

Results of Operations

Comparison of the Nine-Month Period Ended July 31, 2026, with the Nine-Month Period Ended July 31, 2025.

The following table shows a comparison of the results of operations between the Nine month periods ended July 31, 2026, and July 31, 2025:

		Three Month								Three Month
		Ended				%				Ended				%				Increase
		7/31/2026				of sales				7/31/2025				of sales				(Decrease)				% Change
REVENUE - NET			2,199,114				100.0	%			1,952,921				100.0	%			246,193				12.6	%
OPERATING EXPENSES
Cost of sales			1,085,381				49.4	%			983,004				50.3	%			102,377				10.4	%
Selling and G&A expenses			790,588				35.9	%			664,725				34.1	%			125,863				18.9	%
Total Operating Expenses			1,875,969				85.3	%			1,647,729				84.4	%			228,240				13.8	%
Income (loss) from operations			323,145				14.7	%			305,192				15.6	%			(91,975	)			-45.8	%
Other income (expenses)
Miscellaneous income (expense)			6,300				0.3	%			3,664				0.2	%			2,636				71.9	%
Interest expense			(5,879	)			-0.3	%			—				0.0	%			(5,879	)			-100.0	%
Depreciation			(9,838	)			-0.4	%			(6,003	)			-0.3	%			(3,835	)			-63.9	%
Total other income (expense)			(9,417	)			-0.4	%			(2,339	)			-0.1	%			(7,078	)			-302.6	%
Net income (loss)			313,728				14.3	%			302,853				15.5	%			10,875				3.6	%

11

Revenues for the nine-month period ended July 31, 2026, were $2,199,114 compared to revenues of $1,952,921 for the nine-month period ended July 31, 2025. The increase in revenue is attributable solely to an increase in sales of our House wrap product line.

Our costs of sale, selling, general and administrative expenses (“SG&A”) were $790,588 for the nine months ended July 31, 2026, compared to $664,725 for the nine-month period ended July 31, 2025. In February of 2024, we hired a son of our former CEO as a consultant to increase the sales.

Liquidity and Capital Resources

During the nine-month period ended July 31, 2026, we funded our operations from revenues.

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’s intention 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 $662,944 on the equipment. The Company will produce Insultex under its own brand name. See Note 13 of the Notes to the Condensed Financial Statements.

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 IINSULTEX would be delayed.

 Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Critical Accounting Policies and Estimates

Revenue Recognition: We recognize revenue from product sales when all of the following criteria for revenue recognition have been met: pervasive evidence that an agreement exists; the services have been rendered; the fee is fixed and determinable and not subject to refund or adjustment; and collection of the amount due is reasonable assured.

12

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDING

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

ITEM 1ARisk Factors

See Risk factors set forth in Part I Item 1Aof the Company’sAnnual report on Form 10-K for the fiscal year ended October 31, 2024.Set forth below are additional risk factors.

Sole Source for Insultex. We rely on a single source for the Insultex material. We do not believe we could obtain Insultex from any other source. Insultex is manufactured by a company in Indonesia using proprietary technology Should we not be able to obtain Insultex from this company for any reason we could no longer maintain operations.

Reliance on Key Personnel. Mr. Joseph A Riccelli Jr is our President / CEO. Should we lose the services of Mr. Riccelli our operations would be materially affected.

ITEM 1B Climate-Related Disclosure.

N/A

TEM 2. UNREGISTERED SALES OF EQUITY SECURITIESAND USE OF PROCEEDS

N/A

ITEM 3. Defaults upon Senior Securities

None

Item 4 Mine Safety Disclosures

Not applicable

ITEM 4T. CONTROLSAND PROCEDURES

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 ExchangeAct 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 full time 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.

13

ITEM 6. EXHIBITS

*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

14

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.

Date: September 15, 2026

Joseph A. Riccelli

Chief Executive Officer

Chief Financial Officer

15