Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Aug. 02, 2021 | Jun. 30, 2020 | |
Document And Entity Information | |||
Entity Registrant Name | INNOVATIVE DESIGNS INC | ||
Entity Central Index Key | 0001190370 | ||
Document Type | 10-K | ||
Document Period End Date | Oct. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --10-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,674,796 | ||
Entity Common Stock, Shares Outstanding | 32,231,560 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Interactive data current | Yes | ||
Entity file number | 000-51791 | ||
State of incorporation | DE |
Balance Sheets
Balance Sheets - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 48,009 | $ 34,525 |
Accounts receivable - net of allowance for doubtful accounts of $5,860 and $10,409 | 19,900 | 5,948 |
Inventory - net of obsolete inventory reserve of $75,468 | 576,785 | 636,459 |
Current portion of right of use asset | 38,775 | 36,537 |
Total current assets | 683,469 | 713,469 |
PROPERTY AND EQUIPMENT - NET | 65,187 | 98,495 |
OTHER ASSETS | ||
Inventory on consignment | 1,625 | 1,625 |
Deposits on inventory | 57,330 | 57,330 |
Advance to employees | 8,200 | 8,200 |
Right of use asset, net of current portion | 40,962 | 79,373 |
Assets held for sale | 600,000 | 600,000 |
Total other assets | 708,117 | 746,528 |
TOTAL ASSETS | 1,456,773 | 1,558,492 |
CURRENT LIABILITIES | ||
Accounts payable | 270,792 | 258,099 |
Current portion of notes payable | 18,628 | 19,168 |
Current portion of lease liability | 38,775 | 36,537 |
Accrued interest expense | 15,747 | 19,237 |
Due to shareholders | 102,200 | 96,100 |
Accrued expenses | 14,553 | 10,916 |
Total current liabilities | 460,695 | 440,057 |
LONG TERM LIABILITIES | ||
Lease liability, net of current portion | 40,962 | 79,373 |
Long-term portion of notes payable | 107,193 | 80,896 |
Total long-term liabilities | 148,155 | 160,269 |
TOTAL LIABILITIES | 608,850 | 600,326 |
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 31,211,560 and 30,111,560 issued and outstanding | 3,123 | 3,013 |
Additional paid-in capital | 10,574,828 | 10,404,438 |
Accumulated deficit | (9,730,028) | (9,449,285) |
Total stockholders' equity | 847,923 | 958,166 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,456,773 | $ 1,558,492 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5,860 | $ 10,409 |
Inventory obsolete reserve | $ 75,468 | $ 75,468 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 25,000,000 | 25,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 100,800,000 | 100,800,000 |
Common stock, issued | 31,211,560 | 30,116,560 |
Common stock, outstanding | 31,211,560 | 30,116,560 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Income Statement [Abstract] | ||
REVENUES - NET | $ 202,253 | $ 215,975 |
OPERATING EXPENSES | ||
Cost of sales | 131,280 | 126,645 |
Selling, general and administrative expenses | 341,132 | 577,060 |
Total Operating Expenses | 472,412 | 703,705 |
LOSS FROM OPERATIONS | (270,159) | (487,730) |
OTHER INCOME (EXPENSE) | ||
Other income | 833 | 3,685 |
Other expense | (18,286) | |
Interest expense | (11,417) | (18,260) |
Total other income (expense) | (10,584) | (32,861) |
NET LOSS | $ (280,743) | $ (520,591) |
PER SHARE INFORMATION | ||
Net Loss Per Common Share (in dollars per share) | $ (0.01) | $ (0.02) |
Weighted Average Number of Common Shares Outstanding (in shares) | 30,830,276 | 28,708,182 |
Statements of Shareholders' Equ
Statements of Shareholders' Equity - USD ($) | Common Stock | Common Stock To Be Issued | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at beginning at Oct. 31, 2018 | $ 2,780 | $ 10,106,731 | $ (8,928,694) | $ 1,180,817 | |
Balance at beginning (in shares) at Oct. 31, 2018 | 27,789,560 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued for services | $ 21 | 35,479 | 35,500 | ||
Shares issued for services (in shares) | 210,000 | ||||
Shares issued for debt extinguishment | $ 55 | 54,945 | 55,000 | ||
Shares issued for debt extinguishment (in shares) | 550,000 | ||||
Sale of stock | $ 157 | 207,283 | 207,440 | ||
Sale of stock (in shares) | 1,562,000 | ||||
Net loss | (520,591) | (520,591) | |||
Balance at end at Oct. 31, 2019 | $ 3,013 | 10,404,438 | (9,449,285) | 958,166 | |
Balance at end (in shares) at Oct. 31, 2019 | 30,111,560 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued for services | $ 15 | 26,985 | 27,000 | ||
Shares issued for services (in shares) | 150,000 | ||||
Sale of stock | $ 95 | 143,405 | 143,500 | ||
Sale of stock (in shares) | 950,000 | ||||
Net loss | (280,743) | (280,743) | |||
Balance at end at Oct. 31, 2020 | $ 3,123 | $ 10,574,828 | $ (9,730,028) | $ 847,923 | |
Balance at end (in shares) at Oct. 31, 2020 | 30,111,560 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (280,743) | $ (520,591) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Allowance for doubtful accounts | 0 | 10,409 |
Impairment loss of deposits on inventory | 0 | 17,000 |
Common stock issued for services | 27,000 | 35,500 |
Depreciation | 33,308 | 33,037 |
(Increase) decrease from changes in: | ||
Accounts receivable | (13,952) | (2,902) |
Inventory | 59,674 | 84,803 |
Prepaid expenses | 0 | 11,669 |
Right of use asset | 36,173 | (115,910) |
Increase (decrease) from changes in: | ||
Accounts payable | 12,254 | 63,136 |
Lease liability | (36,173) | 115,910 |
Accrued interest expense | (3,490) | (3,648) |
Accrued expenses | 3,637 | 5,141 |
Net cash used in operating activities | (162,312) | (266,446) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of stock | 143,500 | 207,440 |
Proceeds from shareholder advances | 39,500 | 47,600 |
Payments on shareholder advances | (33,400) | (46,850) |
Proceeds from note payable | 33,652 | 0 |
Payments on notes payable | (7,456) | (19,422) |
Net cash provided by financing activities | 175,796 | 188,768 |
Net decrease in cash | 13,484 | (77,678) |
CASH, BEGINNING OF YEAR | 34,525 | 112,203 |
CASH, END OF THE PERIOD | 48,009 | 34,525 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 9,417 | 21,908 |
Cash paid for taxes | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations We operate two reportable segments: Apparel and House Wrap. Our apparel segment offers a wide variety of extreme cold weather apparel and related items. Our House Wrap segment offers our INSULTEX House Wrap which has an R-value of 3 and an R-value of 6 and our own seam tape. Basis of Accounting Fiscal Year End Estimates Cash and Cash Equivalents Revenue Recognition Fair Value of Financial Instruments Estimated Uncollectable Accounts Inventory During the fiscal year ended October 31, 2010, the Company discontinued its hunting and swimming lines of apparel. A reserve balance of approximately $75,468 was recorded as of October 31, 2020 and 2019. The reserve is evaluated on a quarterly basis and adjusted accordingly. Deposits on Inventory Property and Equipment For financial reporting purposes, depreciation is primarily provided on the straight-line method over the estimated useful lives of depreciable assets, which range from 5 to 7 years. Deposits on Equipment Impairment of Long-lived Assets Income Taxes Income Taxes In addition, ASC 740 clarifies the accounting for uncertainty in tax positions and requires that a company recognize in its financial statements the impact of a tax position, only if it is more likely than not of being sustained upon examination, based on the technical merits of the position. The Company recognized no material adjustments to the liability for unrecognized income tax benefits. The Company’s policy regarding the classification of interest and penalties recognized in accordance with ASC 740 is to classify them as income tax expense in its financial statements, if applicable. The Company is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. Concentration of Credit Risk Shipping and Handling Net Income Per Common Share Earnings per Share Stock-Based Compensation Compensation - Stock Compensation Recent Accounting Standards Update In February 2016, the FASB issued ASU 2016-02, “Leases”, which added a requirement than an entity, when acting as a lessee, should recognize in the balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For public business entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 including interim periods within fiscal years beginning after December 15, 2019. Management has adopted the guidance as noted within Notes 3, 14, and 15 of the financial statements. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Oct. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | 2. GOING CONCERN |
RIGHT OF USE ASSETS AND LEASE L
RIGHT OF USE ASSETS AND LEASE LIABILITIES | 12 Months Ended |
Oct. 31, 2020 | |
One Individuals [Member] | |
RIGHT OF USE ASSETS AND LEASE LIABILITIES | 3 . RIGHT OF USE ASSETS AND LEASE LIABILITIES |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Oct. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 4. PROPERTY AND EQUIPMENT Property and equipment are summarized by major classifications as follows: 2020 2019 Equipment $ 221,835 $ 221,835 Containers 14,900 14,900 Furniture and fixtures 11,083 11,083 Leasehold improvements 4,806 4,806 Automobile 9,121 9,121 261,745 261,745 Less accumulated depreciation 196,558 163,250 Property and equipment – net $ 65,187 $ 98,495 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
BORROWINGS | 5. BORROWINGS Borrowings at October 31, 2020 and 2019 consisted of the following: 2020 2019 Due to Stockholders Note Payable $8,000 - Roberta Riccelli, February 2012 Due June 17, 2012; interest is 10% for 120 days. Note was extended through a verbal agreement with no set maturity date. $ 3,000 $ 3,000 Note Payable $20,000 - Corinthian Development, January 15, 2013. Due May 15, 2013; payable on demand; interest is 10%; Note was extended through a verbal agreement with no set maturity date. 10,000 10,000 Note Payable $25,000 - Sol & Tina Waxman Family Foundation, March 2015. Amended January 15, 2018 for $30,250; Due January 5, 2019; interest is 10%. — Note Payable $90,000 - Joseph Riccelli, Sr., May 2013. Due November 22, 2013; interest is 10% for 180 days. Note was extended through a verbal agreement with no set maturity date. 8,400 8,400 Note Payable $4,500 - Joseph Riccelli, Sr., August 2019. Interest is 10% for 180 days; No set maturity date. 4,500 4,500 Note Payable $36,500 - Joseph Riccelli, Sr., September 2019. Interest is 10% for 180 days; No set maturity date. 36,500 36,500 Note Payable $3,000 - Joseph Riccelli, Sr., October 2019. Interest is 10% for 180 days; No set maturity date. 3,000 3,000 Note Payable $38,000 - Joseph Riccelli, Sr., December 2019. Interest is 10% for 180 days; No set maturity date. 4,600 Note Payable $50,000 - Lawrence Fraser, May 29, 2018. Due June 1, 2019; interest is 10% annually. Note was extended through a verbal agreement with no set maturity date; — Note Payable $40,672 - Riccelli Properties, August 7, 2017. Due February 7, 2018; interest is 10%. Note was extended through a verbal agreement with no set maturity date 32,200 32,200 Total Due to Stockholders $ 102,200 $ 96,100 2020 2019 Notes Payable Note Payable – U.S. Small Business Administration. PPP Loan proceeds received on May 5, 2020 33,652 Note Payable - U.S. Small Business Administration. Due July 2035; payable in monthly installments of $1,820 including interest at 2.9% annum. $ 92,608 $ 100,064 Total Borrowings 228,460 199,164 Less Due to Stockholders 102,200 99,100 Less Current Portion of Notes Payable 18,628 19,168 Total Long Term Portion of Notes Payable $ 107,632 $ 80,896 Maturities of long-term debt are as follows: Year Ending Notes October 31 Stockholders Payable Amount Due 2021 $ 102,200 18,628 120,828 2022 19,739 19,739 2023 20,319 20,319 2024 20,916 20,916 2025 & thereafter 46,658 46,658 Total $ 102,200 126,260 228,460 DUE TO STOCKHOLDERS In February 2012, the Company entered into a note payable with Roberta Riccelli for $8,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% for 120 days. This note was extended through a verbal agreement. The loan balance as of October 31, 2020 and 2019 was $3,000. In January 2013, the Company entered into a note payable with Corinthian Development for $20,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% with an original repayment date of May 2013. This note was extended through a verbal agreement. The loan balance at October 31, 2020 and 2019 was $10,000. In May 2013, the Company entered into a note payable with its CEO, Joseph Riccelli, for $90,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% with an original repayment date of November 2013. This note was extended through a verbal agreement. The loan balance at October 31, 2020 and 2019 was $8,400. During August 2017, the Company entered into a note payable agreement with Riccelli Properties, which is wholly owned and operated by the Company’s CEO, Joseph Riccelli, in the amount of $40,672. This amount reflects payments made by Riccelli Properties on the Small Business Association promissory note. Riccelli Properties sold the real estate that was collateral on the promissory note. The note has a term of 6 months and an interest rate of 10%. This loan balance at October 31, 2020 and 2019 was $32,200. In August 2019, the Company entered into a note payable with its CEO, Joseph Riccelli, for $36,500. This loan was to be used to fund operations of the Company. This loan has no set maturity date, including interest at 10%. The loan balance at October 31, 2020 and 2019 was $36,500. In September 2019, the Company entered into a note payable with its CEO, Joseph Riccelli, for $4,500. This loan was to be used to fund operations of the Company. This loan has no set maturity date, including interest at 10%. The loan balance at October 31, 2020 and 2019 was $4,500. In October 2019, the Company entered into a note payable with its CEO, Joseph Riccelli, for $3,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% with an original repayment date of November 2013. This note was extended through a verbal agreement. The loan balance at October 31, 2020 and 2018 was $3,000. In December 2019, the Company entered into a note payable with its CEO, Joseph Riccelli, for $38,000. This loan was to be used to fund operations of the Company. This loan is due on demand, including interest at 10% with an original repayment date of November 2013. This note was extended through a verbal agreement. The loan balance at October 31, 2020 was $4,600. NOTES PAYABLE In July 2005, the Company was approved for a low interest promissory note from the U.S. Small Business Administration in the amount of $280,100. In January 2006 the Company amended the promissory note with the Small Business Administration increasing the principal balance to $430,500. The note bears an annual interest rate of 2.9% and matures on July 13, 2035. Monthly payments, including principal and interest, of $1,820 are due monthly. A payment was made on the note of $40,672 during the year ended October 31, 2017 due to the sale of real estate by Riccelli Properties that was collateral on the promissory note. The loan balance was $92,608 and $100,064 at October 31, 2020 and 2019, respectively. This note is guaranteed by the Company’s CEO. In May 2020, the Company was approved for a PPP Loan from the U.S. Small Business Administration in the amount of $32,652. If the Company does not receive forgiveness on the loan, it will be charged a 1% interest rate on the loan during the repayment period. |
EXCLUSIVE LICENSING AND MANUFAC
EXCLUSIVE LICENSING AND MANUFACTURING AGREEMENT | 12 Months Ended |
Oct. 31, 2020 | |
Exclusive Licensing And Manufacturing Agreement | |
EXCLUSIVE LICENSING AND MANUFACTURING AGREEMENT | 6. EXCLUSIVE LICENSING AND MANUFACTURING AGREEMENT On April 16, 2006, the Company entered into an Exclusive License and Manufacturing Agreement (the “Agreement”) with the Ketut Group, with an effective date of April 1, 2006, whereby the Company acquired an exclusive license to develop, use, sell, manufacture and market products related to or utilizing INSULTEX™, Korean Patent Number, (0426429) or any INSULTEX Technology. At the behest of the Board of Directors, the INSULTEX trademark was chosen as the mark to identify the product utilized by Innovative since its inception and was originally registered by Joseph Riccelli on February 17, 2005. The new trademark, intended to avoid confusion arising from the use of the old Eliotex trademark in association with a new, subsequent, different and separately-patented product, was assigned by Mr. Riccelli to the Company on April 25, 2006, with that assignment to become effective upon final approval of the Statement of Use by the United States Patent and Trademark Office. The License was awarded by the Korean inventor, an individual who is part of the Ketut Group, and the manufacturer of INSULTEX™. The Company received an exclusive forty (40) year worldwide license, except for Korea and Japan, with an initial term of ten (10) years and an option to renew the License for up to three (3) successive ten (10) year terms. The first ten-year option was exercised. Additionally, the Company was granted the exclusive rights to any current or future inventions, improvements, discoveries, patent applications and letters of patent which the Ketut Group controls or may control related to INSULTEX™. Furthermore, the Company has the right to rant sub-licenses to other manufacturers for the use of INSULTEX™ or any INSULTEX Technology. |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Oct. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | 7. CONCENTRATIONS Revenues from three customers were approximately 64% and 53% of the Company’s revenues for the fiscal years ended October 31, 2020 and 2019, respectively. The Company only has one supplier of INSULTEX, the special material which is manufactured within the apparel of the Company. Additionally, the Company only has one manufacturer that produces the apparel on behalf of the Company, located in Indonesia, and one manufacturer that produces house wrap on behalf of the Company in Massachusetts. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 8. INCOME TAXES In prior years, the Company incurred net operating losses and, accordingly, no provision for income taxes has been recorded. In addition, no benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets. For the 2019 tax year, fiscal year end October 31, 2020, the Company had net operating loss carryforwards of approximately $7,100,000 for tax purposes. The carryforwards are available to offset taxable income of future periods and begin to expire after the Company’s 2037 tax year, fiscal year end October 31, 2038. Effective for tax years ending in 2019 or later, net operating losses cannot be carried back but can be carried forward to future tax years indefinitely. Realization of the deferred tax benefit related to the carryforward is dependent upon the Company generating sufficient taxable income in the future, against which the loss can be offset, which is not guaranteed. Deferred income taxes reflect the net tax effect of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as tax benefits of net operating loss carryforwards. The significant components of the Company’s deferred tax assets and liabilities relate to the following: 2020 2019 Net operating loss carryforward $ 2,063,193 $ 2,011,532 Depreciation — Net deferred tax assets before valuation allowance 2,063,193 2,011,532 Less: Valuation allowance (2,063,193 ) (2,011,532 ) Net deferred tax assets $ — $ — For financial reporting purposes, the Company has incurred losses in previous years. Based on the available objective evidence, including the Company’s previous losses, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company provided for a full valuation allowance against its net deferred tax assets as of October 31, 2020 and 2019, respectively. The effective income tax rate varied from the statutory Federal tax rate as follows: 2020 2019 Federal statutory rate 21 % 21 % Effect of net operating losses (21 %) (21 %) Effective income tax rate — — The Company’s effective tax rate is lower than what would be expected if the federal statutory rate were applied to income (loss) before taxes, primarily due to net operating loss carryforwards. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Oct. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | 9. COMMITMENTS The Company leases its executive offices/warehouse space from Frank Riccelli, a stockholder and brother of our Chief Executive Officer, for $3,500 per month. The lease is based on a verbal agreement with month to month terms. For the fiscal years ended October 31, 2020 and 2019 rent expense totaled $27,000 and $42,000, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 10. SEGMENT INFORMATION We have organized our operations into two segments as discussed in Note 1 to the financial statements. We rely on an internal management reporting process that provides segment information for purposes of making financial decisions and allocating resources. The following tables present our business segment information for the fiscal years ending October 31, 2020 and 2019: 2020 2019 Revenues: Apparel $ 70,968 $ 135,506 Housewrap 131,285 80,469 Total Revenues $ 202,253 $ 215,975 Capital Expenditures: Apparel $ $ — Housewrap — Total $ $ — Depreciation: Apparel $ 9,410 $ 9,410 Housewrap 23,898 23,627 Total $ 33,308 $ 33,037 |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Oct. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK | 11. COMMON STOCK During the fiscal year ended October 31, 2019, the Company sold 1,867,000 shares of common stock to nine investors for total proceeds of $264,040. The stock was issued between $0.08 and $0.17 per share. During the fiscal year ended October 31,2019, 550,000 shares of common stock were issued to one note holder for the extinguishment of a $50,000 note payable and $5,000 of accrued interest. This stock was issued at $0.10 per share. The Company issued 210,000 shares of common stock to three individuals for services valued at $35,500. The stock was issued between $0.15 and $0.20 per share. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because these transactions did not involve a public offering and there was no general solicitation or general advertising involved in these transactions. We placed legends on the stock certificates stating that the securities were not registered under the Securities Act and set for the restrictions on their transferability and sale. During the fiscal year ended October 31, 2020, the Company sold 950,000 shares of common stock to ten investors for total proceeds of $143,500. The stock was issued between $0.10 and $0.20 per share. The Company issued 150,000 shares of common stock to one individual for services valued at $27,000. The stock was issued at $0.18 per share. We believe that Section 4(2) of the Securities Act of 1933, as amended, was available because these transactions did not involve a public offering and there was no general solicitation or general advertising involved in these transactions. We placed legends on the stock certificates stating that the securities were not registered under the Securities Act and set for the restrictions on their transferability and sale. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Oct. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 12. RELATED PARTY TRANSACTIONS The Company has entered into various debt agreements with related parties. These agreements are classified as shareholder loans within Note 8 to the financial statements. The Company has entered into a verbal lease agreement as further discussed in Note 7 to the financial statements. |
LITIGATION
LITIGATION | 12 Months Ended |
Oct. 31, 2020 | |
Litigation | |
LITIGATION | 13. LITIGATION On November 4, 2016, the FTC filed a complaint against the Company in the U.S. District Court Western District of Pennsylvania, Case number 16-1669. In the complaint, the FTC alleges that, among other matters, the Company did not have substantiation of claims made by the Company regarding the R value and energy efficiency of its INSULTEX House Wrap products. The complaint asks as to redress a rescission of revenue the Company received from the sale of House Wrap and a permanent injunction. On September 24, 2020, a judgment was entered in favor of the Company as to all claims set forth in the FTC complaint. It was further ordered that as there were no remaining claims in the action the case shall be marked as closed. 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 United States Court of Appeals for the Third District affirmed the District Court’s ruling in favor of the Registrant. The ruling was in connection with the Federal Trade Commission complaint filed against the Registrant in November 2016, alleging, among other matters, that the Registrant did not have substantiation for claims made by the Registrant regarding the R-value and energy efficiency of its INSULTIX House Wrap products. |
RIGHT OF USE ASSETS
RIGHT OF USE ASSETS | 12 Months Ended |
Oct. 31, 2020 | |
One Individuals [Member] | |
RIGHT OF USE ASSETS | 14. RIGHT OF USE ASSETS The Company entered into a month to month verbal lease at the time the Company was formed that is classified as right of use asset and lease liability. The lease for the Company’s office space is estimated to be through June 2022. In accordance with ASU 2016-02, the Company calculated the present value of the leases using the average commercial real estate interest rate of 5.50% at the commencement of the office lease. Applying the commercial rate, the Company calculated the present value of $ for the office lease as of October 31, 2020. As of October 31, 2020, the right of use assets associated with future operating lease is as follows: Total present value of right of use asset under lease agreement $ 150,496 Amortization of right of use asset (79,759 ) Total right of use asset as of October 31, 2020 $ 79,737 Less current portion due within one year 38,775 Long-term right of use asset $ 40,962 Total amortization expense related to the right of use assets under the verbal lease agreement was $36,173 and $22,174 for the years ended October 31, 2020 and 2019, respectively. Future amortization of the right of use asset as of October 31, 2020 is as follows: 2021 38,775 2022 40,962 Total $ 79,737 |
LEASE LIABILITY
LEASE LIABILITY | 12 Months Ended |
Oct. 31, 2020 | |
One Individuals [Member] | |
LEASE LIABILITIES | 15. LEASE LIABILITY As disclosed in Note 14, the Company entered into a verbal lease for office space prior to the year ended October 31, 2020 that is classified as a right of use asset and lease liability. As of October 31, 2020, the lease liability associated with future payments due under the verbal lease is as follows: Total present value of future lease payments $ 150,496 Principal payments made as of the year ended October 31, 2020 (79,759 ) Total right of use lease liabilities as of October 31, 2020 $ 79,737 Total maturities of lease liability as of October 31, 2020 are as follows: Total future minimum lease Present value payments discount lease liability 2021 42,000 3,225 38,598 2022 42,000 1,038 40,775 $ 84,000 $ 4,263 $ 79,737 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Oct. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS Subsequent to the period in October 31, 2020, the Company borrowed $200,000 from an individual. The note is secured by one of the Company’s patent. The term of the loan is three years and the interest rate is 12% per annum. The loan is to be repaid in yearly installments with the first payment of $66,666 to be paid on the 180 th |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations We operate two reportable segments: Apparel and House Wrap. Our apparel segment offers a wide variety of extreme cold weather apparel and related items. Our House Wrap segment offers our INSULTEX House Wrap which has an R-value of 3 and an R-value of 6 and our own seam tape. |
Basis of Accounting | Basis of Accounting |
Fiscal Year End | Fiscal Year End |
Estimates | Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Revenue Recognition | Revenue Recognition |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Estimated Uncollectable Accounts | Estimated Uncollectable Accounts |
Inventory | Inventory During the fiscal year ended October 31, 2010, the Company discontinued its hunting and swimming lines of apparel. A reserve balance of approximately $75,468 was recorded as of October 31, 2020 and 2019. The reserve is evaluated on a quarterly basis and adjusted accordingly. |
Deposits on Inventory | Deposits on Inventory |
Property and Equipment | Property and Equipment For financial reporting purposes, depreciation is primarily provided on the straight-line method over the estimated useful lives of depreciable assets, which range from 5 to 7 years. |
Deposits on Equipment | Deposits on Equipment |
Impairment of Long-lived Assets | Impairment of Long-lived Assets |
Income Taxes | Income Taxes Income Taxes In addition, ASC 740 clarifies the accounting for uncertainty in tax positions and requires that a company recognize in its financial statements the impact of a tax position, only if it is more likely than not of being sustained upon examination, based on the technical merits of the position. The Company recognized no material adjustments to the liability for unrecognized income tax benefits. The Company’s policy regarding the classification of interest and penalties recognized in accordance with ASC 740 is to classify them as income tax expense in its financial statements, if applicable. The Company is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. |
Concentration of Credit Risk | Concentration of Credit Risk |
Shipping and Handling | Shipping and Handling |
Net Income Per Common Share | Net Income Per Common Share Earnings per Share |
Stock-Based Compensation | Stock-Based Compensation Compensation - Stock Compensation |
Recent Accounting Standards Update | Recent Accounting Standards Update In February 2016, the FASB issued ASU 2016-02, “Leases”, which added a requirement than an entity, when acting as a lessee, should recognize in the balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For public business entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 including interim periods within fiscal years beginning after December 15, 2019. Management has adopted the guidance as noted within Notes 3, 14, and 15 of the financial statements. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment summarized by major classifications | Property and equipment are summarized by major classifications as follows: 2020 2019 Equipment $ 221,835 $ 221,835 Containers 14,900 14,900 Furniture and fixtures 11,083 11,083 Leasehold improvements 4,806 4,806 Automobile 9,121 9,121 261,745 261,745 Less accumulated depreciation 196,558 163,250 Property and equipment – net $ 65,187 $ 98,495 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings | Borrowings at October 31, 2020 and 2019 consisted of the following: 2020 2019 Due to Stockholders Note Payable $8,000 - Roberta Riccelli, February 2012 Due June 17, 2012; interest is 10% for 120 days. Note was extended through a verbal agreement with no set maturity date. $ 3,000 $ 3,000 Note Payable $20,000 - Corinthian Development, January 15, 2013. Due May 15, 2013; payable on demand; interest is 10%; Note was extended through a verbal agreement with no set maturity date. 10,000 10,000 Note Payable $25,000 - Sol & Tina Waxman Family Foundation, March 2015. Amended January 15, 2018 for $30,250; Due January 5, 2019; interest is 10%. — Note Payable $90,000 - Joseph Riccelli, Sr., May 2013. Due November 22, 2013; interest is 10% for 180 days. Note was extended through a verbal agreement with no set maturity date. 8,400 8,400 Note Payable $4,500 - Joseph Riccelli, Sr., August 2019. Interest is 10% for 180 days; No set maturity date. 4,500 4,500 Note Payable $36,500 - Joseph Riccelli, Sr., September 2019. Interest is 10% for 180 days; No set maturity date. 36,500 36,500 Note Payable $3,000 - Joseph Riccelli, Sr., October 2019. Interest is 10% for 180 days; No set maturity date. 3,000 3,000 Note Payable $38,000 - Joseph Riccelli, Sr., December 2019. Interest is 10% for 180 days; No set maturity date. 4,600 Note Payable $50,000 - Lawrence Fraser, May 29, 2018. Due June 1, 2019; interest is 10% annually. Note was extended through a verbal agreement with no set maturity date; — Note Payable $40,672 - Riccelli Properties, August 7, 2017. Due February 7, 2018; interest is 10%. Note was extended through a verbal agreement with no set maturity date 32,200 32,200 Total Due to Stockholders $ 102,200 $ 96,100 2020 2019 Notes Payable Note Payable – U.S. Small Business Administration. PPP Loan proceeds received on May 5, 2020 33,652 Note Payable - U.S. Small Business Administration. Due July 2035; payable in monthly installments of $1,820 including interest at 2.9% annum. $ 92,608 $ 100,064 Total Borrowings 228,460 199,164 Less Due to Stockholders 102,200 99,100 Less Current Portion of Notes Payable 18,628 19,168 Total Long Term Portion of Notes Payable $ 107,632 $ 80,896 |
Schedule of long-term debt maturities | Maturities of long-term debt are as follows: Year Ending Notes October 31 Stockholders Payable Amount Due 2021 $ 102,200 18,628 120,828 2022 19,739 19,739 2023 20,319 20,319 2024 20,916 20,916 2025 & thereafter 46,658 46,658 Total $ 102,200 126,260 228,460 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax assets and liabilities | The significant components of the Company’s deferred tax assets and liabilities relate to the following: 2020 2019 Net operating loss carryforward $ 2,063,193 $ 2,011,532 Depreciation — Net deferred tax assets before valuation allowance 2,063,193 2,011,532 Less: Valuation allowance (2,063,193 ) (2,011,532 ) Net deferred tax assets $ — $ — |
Schedule of effective income tax rate varied from statutory federal tax rate | The effective income tax rate varied from the statutory Federal tax rate as follows: 2020 2019 Federal statutory rate 21 % 21 % Effect of net operating losses (21 %) (21 %) Effective income tax rate — — |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of business segment information | The following tables present our business segment information for the fiscal years ending October 31, 2020 and 2019: 2020 2019 Revenues: Apparel $ 70,968 $ 135,506 Housewrap 131,285 80,469 Total Revenues $ 202,253 $ 215,975 Capital Expenditures: Apparel $ $ — Housewrap — Total $ $ — Depreciation: Apparel $ 9,410 $ 9,410 Housewrap 23,898 23,627 Total $ 33,308 $ 33,037 |
RIGHT OF USE ASSETS (Tables)
RIGHT OF USE ASSETS (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
One Individuals [Member] | |
Right of use assets associated with future operating leases | As of October 31, 2020, the right of use assets associated with future operating lease is as follows: Total present value of right of use asset under lease agreement $ 150,496 Amortization of right of use asset (79,759 ) Total right of use asset as of October 31, 2020 $ 79,737 Less current portion due within one year 38,775 Long-term right of use asset $ 40,962 |
Future amortization of right of use assets | Future amortization of the right of use asset as of October 31, 2020 is as follows: 2021 38,775 2022 40,962 Total $ 79,737 |
LEASE LIABILITY (Tables)
LEASE LIABILITY (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
One Individuals [Member] | |
Schedule of future minimum lease payments | As of October 31, 2020, the lease liability associated with future payments due under the verbal lease is as follows: Total present value of future lease payments $ 150,496 Principal payments made as of the year ended October 31, 2020 (79,759 ) Total right of use lease liabilities as of October 31, 2020 $ 79,737 |
Schedule of maturities of lease liabilities | Total maturities of lease liability as of October 31, 2020 are as follows: Total future minimum lease Present value payments discount lease liability 2021 42,000 3,225 38,598 2022 42,000 1,038 40,775 $ 84,000 $ 4,263 $ 79,737 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narraive) | Jul. 12, 2015USD ($) | Oct. 31, 2020USD ($)SegmentInstallment | Oct. 31, 2019USD ($) |
Product Information [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
Number of days for return policy | 5 days | ||
Return products from customers | $ 1,716 | ||
Allowance | $ 5,860 | 10,409 | |
Inventory valuation reserves | 75,468 | 75,468 | |
Deposits on inventory | 57,330 | 57,330 | |
Purchase price machinery and equipment | $ 500,000 | ||
Number of installments | Installment | 4 | ||
Description of purchase price payment terms | The first installment of $300,000 is to be made at the execution of the agreement. The second installment of $200,000 is to be made when the machinery and equipment is ready to be shipped to the United States. The third installment of $100,000 is to be made once the machinery and equipment is producing INSULTEX, and the fourth and final installment of $100,000 is to be made after the first commercial production run of INSULTEX is completed. | ||
Advance payment for machinery and equipment | $ 100,000 | ||
Uninsured cash balances | 0 | 0 | |
Shipping and handling costs | 12,413 | 15,433 | |
FDIC insured coverage | $ 250,000 | ||
Minimum [Member] | |||
Product Information [Line Items] | |||
Estimated useful lives of property and equipment | 5 years | ||
Maximum [Member] | |||
Product Information [Line Items] | |||
Estimated useful lives of property and equipment | 7 years | ||
Hunting & Swimming Lines of Apparel [Member] | |||
Product Information [Line Items] | |||
Inventory valuation reserves | $ 75,468 | $ 75,468 | |
Ketut Jaya [Member] | |||
Product Information [Line Items] | |||
Purchase price machinery and equipment | $ 700,000 | ||
Shipping and handling costs | $ 17,000 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Going Concern Details Narrative Abstract | ||
Net loss | $ (280,743) | $ (520,591) |
Net cash used in operating activities | (162,312) | (266,446) |
Accumulated deficit | $ (9,730,028) | $ (9,449,285) |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | $ 261,745 | $ 261,745 |
Less accumulated depreciation | 196,558 | 163,250 |
Property and equipment - net | 65,187 | 98,495 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 221,835 | 221,835 |
Containers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 14,900 | 14,900 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 11,083 | 11,083 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 4,806 | 4,806 |
Automobile [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | $ 9,121 | $ 9,121 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 33,308 | $ 33,037 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Debt Instrument [Line Items] | ||
Total Due to Stockholders | $ 102,200 | $ 96,100 |
Total Borrowings | 228,460 | 199,164 |
Less Due to Stockholders | 102,200 | 99,100 |
Less Current Portion of Notes Payable | 18,628 | 19,168 |
Total Long Term Portion of Notes Payable | 107,193 | 80,896 |
2.9% Note Payable Due July 13, 2035 [Member] | U.S. Small Business Administration [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 92,608 | 100,064 |
PPP Loan [Member] | U.S. Small Business Administration [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 33,652 | 0 |
Roberta Riccelli [Member] | 10% Note Payable Due June 17, 2012 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 8,000 | |
Issuance date | Feb. 28, 2012 | |
Maturity term | 120 days | |
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date. | |
Total Due to Stockholders | $ 3,000 | 3,000 |
Corinthian Development [Member] | 10% Note Payable Due May 15, 2013 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 20,000 | |
Issuance date | Jan. 15, 2013 | |
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date. | |
Total Due to Stockholders | $ 10,000 | 10,000 |
Sol & Tina Waxman Family Foundation [Member] | 10% Note Payable Due January 5, 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 25,000 | |
Issuance date | Mar. 31, 2015 | |
Total Due to Stockholders | $ 0 | |
Chief Executive Officer [Member] | 10% Note Payable Due November 22, 2013 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 90,000 | |
Issuance date | May 31, 2013 | |
Maturity term | 180 days | |
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date. | |
Total Due to Stockholders | $ 8,400 | 8,400 |
Chief Executive Officer [Member] | 10% Note Payable Due August 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 4,500 | |
Maturity term | 180 days | |
Description of maturity extended | No set maturity date. | |
Total Due to Stockholders | $ 4,500 | 4,500 |
Chief Executive Officer [Member] | 10% Note Payable Due September 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 36,500 | |
Maturity term | 180 days | |
Description of maturity extended | No set maturity date. | |
Total Due to Stockholders | $ 36,500 | 36,500 |
Chief Executive Officer [Member] | 10% Note Payable Due October 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 3,000 | |
Maturity term | 180 days | |
Description of maturity extended | No set maturity date. | |
Total Due to Stockholders | $ 3,000 | 3,000 |
Chief Executive Officer [Member] | 10% Note Payable Due December 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 38,000 | |
Maturity term | 180 days | |
Description of maturity extended | No set maturity date. | |
Total Due to Stockholders | $ 4,600 | |
Chief Executive Officer [Member] | 10% Note Payable Due February 7, 2018 [Member] | Riccelli Properties [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 40,672 | |
Issuance date | Aug. 7, 2017 | |
Maturity term | 6 months | |
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date | |
Total Due to Stockholders | $ 32,200 | 32,200 |
Lawrence Fraser [Member} | 10% Note Payable Due June 1, 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 50,000 | |
Issuance date | May 29, 2018 | |
Description of maturity extended | Note was extended through a verbal agreement with no set maturity date. | |
Total Due to Stockholders | $ 0 | |
U.S. Small Business Administration [Member] | 2.9% Note Payable Due July 13, 2035 [Member] | ||
Debt Instrument [Line Items] | ||
Periodic installment | $ 1,820 | |
Frequency of periodic payment | Monthly |
BORROWINGS (Details 1)
BORROWINGS (Details 1) | Oct. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
2021 | $ 120,828 |
2022 | 19,739 |
2023 | 20,319 |
2024 | 20,916 |
2025 & thereafter | 46,658 |
Total | 228,460 |
Stockholders [Member] | |
Debt Instrument [Line Items] | |
2021 | 102,200 |
Total | 102,200 |
10% Note Payable Due December 2019 [Member] | |
Debt Instrument [Line Items] | |
2021 | 18,628 |
2022 | 19,739 |
2023 | 20,319 |
2024 | 20,916 |
2025 & thereafter | 46,658 |
Total | $ 126,260 |
BORROWINGS (Details Narrative)
BORROWINGS (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
10% Note Payable Due June 17, 2012 [Member] | Roberta Riccelli [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 8,000 | |
Maturity term | 120 days | |
Loans balance outstanding | $ 3,000 | $ 3,000 |
10% Note Payable Due May 15, 2013 [Member] | Corinthian Development [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | 20,000 | |
Loans balance outstanding | 10,000 | 10,000 |
10% Note Payable Due November 22, 2013 [Member] | Chief Executive Officer [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 90,000 | |
Maturity term | 180 days | |
Loans balance outstanding | $ 8,400 | 8,400 |
10% Note Payable Due August 2019 [Member] | Chief Executive Officer [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 4,500 | |
Maturity term | 180 days | |
Loans balance outstanding | $ 36,500 | 36,500 |
Interest rate | 10.00% | |
10% Note Payable Due September 2019 [Member] | Chief Executive Officer [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 36,500 | |
Maturity term | 180 days | |
Loans balance outstanding | $ 4,500 | 4,500 |
10% Note Payable Due October 2019 [Member] | Chief Executive Officer [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 3,000 | |
Maturity term | 180 days | |
Loans balance outstanding | $ 3,000 | 3,000 |
2.9% Note Payable Due July 13, 2035 [Member] | U.S. Small Business Administration [Member] | ||
Debt Instrument [Line Items] | ||
Periodic installment | $ 1,820 | |
Frequency of periodic payment | Monthly | |
10% Note Payable Due December 2019 [Member] | Chief Executive Officer [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 38,000 | |
Maturity term | 180 days | |
Loans balance outstanding | $ 4,600 | |
Interest rate | 10.00% | |
Riccelli Properties [Member] | 10% Note Payable Due February 7, 2018 [Member] | Chief Executive Officer [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 40,672 | |
Maturity term | 6 months | |
Loans balance outstanding | $ 32,200 | 32,200 |
Interest rate | 10.00% | |
U.S. Small Business Administration [Member] | 2.9% Note Payable Due July 13, 2035 [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | $ 92,608 | 100,064 |
U.S. Small Business Administration [Member] | PPP Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | $ 33,652 | $ 0 |
EXCLUSIVE LICENSING AND MANUF_2
EXCLUSIVE LICENSING AND MANUFACTURING AGREEMENT (Details Narrative) - Ketut Jaya [Member] - Exclusive Licensing & Manufacturing Agreement [Member] | 12 Months Ended |
Oct. 31, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Description of agreement | Exclusive license to develop, use, sell, manufacture and market\rproducts related to or utilizing INSULTEX™, Korean Patent Number, (0426429) or any INSULTEX Technology. |
Total license term worldwide license, except for Korea and Japan | 40 years |
Initial license term | 10 years |
Description of license renewal option | An option to renew the License for up to three (3) successive ten (10) year terms. |
Licence exercised term | 10 years |
CONCENTRATIONS (Details Narrati
CONCENTRATIONS (Details Narrative) | 12 Months Ended | |
Oct. 31, 2020CustomerSupplier | Oct. 31, 2019Customer | |
INSULTEX [Member] | ||
Concentration Risk [Line Items] | ||
Number of supplier | Supplier | 1 | |
Revenues [Member] | Customer [Member] | ||
Concentration Risk [Line Items] | ||
Number of customers | Customer | 3 | 3 |
Concentration risk, percentage | 64.00% | 53.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforward | $ 2,063,193 | $ 2,011,532 |
Depreciation | ||
Net deferred tax assets before valuation allowance | 2,063,193 | 2,011,532 |
Less: Valuation allowance | (2,063,193) | (2,011,532) |
Net deferred tax assets |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | 21.00% | 21.00% |
Effect of net operating losses | (21.00%) | (21.00%) |
Effective income tax rate | 0.00% | 0.00% |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Oct. 31, 2020USD ($) | |
Income Tax Disclosure [Abstract] | |
Net operating loss carryforwards | $ 7,100,000 |
Expiration date | Oct. 31, 2038 |
COMMITMENTS (Details Narrative)
COMMITMENTS (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Operating Leased Assets [Line Items] | ||
Rent expense, per month | $ 27,000 | $ 42,000 |
Frank Riccelli [Member] | ||
Operating Leased Assets [Line Items] | ||
Rent expense, per month | $ 3,500 | |
Description of lease agreement | The lease is based on a verbal agreement with month to month terms. |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total Revenues | $ 202,253 | $ 215,975 |
Capital Expenditures | ||
Depreciation | 33,308 | 33,037 |
Apparel Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 70,968 | 135,506 |
Capital Expenditures | ||
Depreciation | 9,410 | 9,410 |
Housewrap Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 131,285 | 80,469 |
Capital Expenditures | ||
Depreciation | $ 23,898 | $ 23,627 |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) | 12 Months Ended |
Oct. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Class of Stock [Line Items] | ||
Value of shares issued during the period | $ 143,500 | $ 207,440 |
Value of shares issued for services | $ 27,000 | $ 35,500 |
Number of debt converted | 550,000 | |
Debt conversion price (in dollars per share) | $ 0.10 | |
Loan [Member] | ||
Class of Stock [Line Items] | ||
Value of debt converted | $ 50,000 | |
Accrued interest [Member] | ||
Class of Stock [Line Items] | ||
Value of debt converted | $ 5,000 | |
Nine Investors [Member] | ||
Class of Stock [Line Items] | ||
Number of shares issued during the period | 1,867,000 | |
Value of shares issued during the period | $ 264,040 | |
Nine Investors [Member] | Minimum [Member] | ||
Class of Stock [Line Items] | ||
Share price (in dollars per share) | $ 0.08 | |
Nine Investors [Member] | Maximum [Member] | ||
Class of Stock [Line Items] | ||
Share price (in dollars per share) | $ 0.17 | |
Three Individuals [Member] | ||
Class of Stock [Line Items] | ||
Number of shares issued for services | 210,000 | |
Value of shares issued for services | $ 35,500 | |
Three Individuals [Member] | Minimum [Member] | ||
Class of Stock [Line Items] | ||
Share price (in dollars per share) | $ 0.15 | |
Three Individuals [Member] | Maximum [Member] | ||
Class of Stock [Line Items] | ||
Share price (in dollars per share) | $ 0.20 | |
Ten Investors [Member] | ||
Class of Stock [Line Items] | ||
Number of shares issued during the period | 950,000 | |
Value of shares issued during the period | $ 143,500 | |
Ten Investors [Member] | Minimum [Member] | ||
Class of Stock [Line Items] | ||
Share price (in dollars per share) | $ 0.10 | |
Ten Investors [Member] | Maximum [Member] | ||
Class of Stock [Line Items] | ||
Share price (in dollars per share) | 0.20 | |
One Individual [Member] | ||
Class of Stock [Line Items] | ||
Share price (in dollars per share) | $ 0.18 | |
Number of shares issued for services | 150,000 | |
Value of shares issued for services | $ 27,000 |
RIGHT OF USE ASSETS (Details)
RIGHT OF USE ASSETS (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
One Individuals [Member] | ||
Total present value of right of use assets under lease agreements | $ 150,496 | |
Amortization of right of use assets | (79,759) | |
Total right of use assets | 79,737 | |
Less current portion due within one year | 38,775 | $ 36,537 |
Long-term right of use asset | $ 40,962 |
RIGHT OF USE ASSETS (Details 1)
RIGHT OF USE ASSETS (Details 1) | Oct. 31, 2020USD ($) |
One Individuals [Member] | |
2021 | $ 38,775 |
2022 | 40,962 |
Right of use asset | $ 79,737 |
RIGHT OF USE ASSETS (Details Na
RIGHT OF USE ASSETS (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
One Individuals [Member] | ||
Lease expiration date | Jun. 30, 2022 | |
Average commercial real estate interest rate | 5.50% | |
Amortization expense related to right of use assets | $ 36,173 | $ 22,174 |
Present value of lease | $ 0 |
LEASE LIABILITIES (Details)
LEASE LIABILITIES (Details) | Oct. 31, 2020USD ($) |
One Individuals [Member] | |
Total future minimum lease payments | $ 150,496 |
Less present value discount | (79,759) |
Total right of use lease liabilities | $ 79,737 |
LEASE LIABILITIES (Details 1)
LEASE LIABILITIES (Details 1) | Oct. 31, 2020USD ($) |
Future minimum lease payments | |
2021 | $ 42,000 |
2022 | 42,000 |
Total future minimum lease payments | 84,000 |
Present value discount | |
2021 | 3,225 |
2022 | 1,038 |
Present value discount | 4,263 |
Right of use lease liabilities | |
2021 | 38,598 |
2022 | 40,775 |
Right of use lease liablilties | $ 79,737 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Aug. 08, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Loan | $ 39,500 | $ 47,600 | |
Subsequent Event [Member] | Individual [Member] | |||
Loan | $ 200,000 | ||
Periodic installment | $ 66,666 | ||
Maturity term | 3 years | ||
Interest rate | 12.00% |