IVDN 10-K & 10-Q changes, risk factors and insider trading

We emphasize the following characteristics and advantages of our ourArcticArctic Armor line products:

The following table shows a comparison of the results of operations between the fiscal years endedending October 31, 2024,2025, and October 31, 20232024:

Revenues for the fiscal year ended October 31, 2024, 2025, were $1,382,734$2,765,149 compared to revenues of $347,763$1,382,415 for the comparable period ending October 31, 2023.2024. House Wrap product revenue totaled $1,324,127 $2,757,614 for the period compared to $312,983$1,324,127 for fiscal year ended October 31, 2023.2025 and October 31, 2024, respectively. All of the remaining revenues were derived from our Arctic Armor and related product lines which totaled $51,602$7,535 for the period compared to revenues of $34,780$51,602 for the fiscal year ended October 31, 2023.2025 and October 31, 2024, respectively. Revenues are net of returns and discounts. We continue to work on rebuilding our House Wrap product line brand.

Selling, general and administrative expenses increased from $464,065$490,838 in fiscal year ended October 31, 2023,2024 $490,838to $859,084 in the fiscal year ended October 31, 2024.2025. This increase reflects was also due to the increase of sales with more activities, specifically reflected in the professional fees of $86,557,$300,535, payroll expenses of $147,906,$254,417,outside shipping and storageservices of $61,124,$65,754, etc.

As of AprilJuly 30,31, 2026 (Unaudited) and October 31, 2025 (Audited)

For the SixNine Months Ended AprilJuly 30,31, 2026, 2026, and 2025 (Unaudited)

SixNine Months Ended AprilJuly 30,31, 2026, and 2025 (Unaudited)

For the SixNine Months Ended AprilJuly 30,31, 2026 and 2025 (Unaudited)

For the Period Ended AprilJuly 30,31, 2026

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 AprilJuly 30,31, 2026, the changes therein for the three-month periods that ended and the results of operations for the the three-month periods ended AprilJuly 30,31, 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 AprilJuly 30,31, 2026, are not necessarily indicative of operating results for the full year.

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 AprilJuly 30,31, 2026, are not necessarily indicative of the results for the year ending October 31, 2025, or for any future period.

As of AprilJuly 30,31, 2026, there have been no material changes in the Company’s significant accounting policies from those that were disclosed in the 2025 annual report.

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 $267,201$313,728 and a negativepositive cash flow of $126,002$444,619 from operation activities for the three-monthnine-month period ending AprilJuly 30,31, 2026. In addition, the Company has an accumulated deficit of ($9,777,629$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.

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 AprilJuly 30,31, 2026, and no balances over 90 days as of October 31, 2025. As of AprilJuly 30,31, 2026, the balance of accounts receivable was $661,375,$127,854, net of allowances.

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 AprilJuly 30,31, 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 AprilJuly 30,31, 2026, the total value of the inventory on hand prior to the allowance for obsolete inventory is $579,366.$591,974.

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 AprilJuly 30,31, 2026, the balance of the loan was $0.

As of AprilJuly 30,31, 2026, all notes payables are up to date.

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 AprilJuly 30,31, 2026, and October 31, 2025, respectively. The Company has calculated diluted earnings per share utilizing the outstanding stock warrants and convertible debt

The Company pays shipping and handling costs on behalf of customers for purchased apparel merchandise. 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 $59,183$32,653 and $36,775$74,320 for the three-monththree-months ended AprilJuly 30,31, 2026 and 2025, respectively.

As of AprilJuly 30,31, 2026, the total stock issued is 38,504,003

There have been no additional deposits made as of AprilJuly 30,31, 2026 Total overall deposits on equipment as of AprilJuly 30,31, 2026 and October 31, 2025 were $702,083 and $662,944, respectively.

As of AprilJuly 30,31, 2026, there are no additional or current legal proceedings.

As of AprilJuly 30,31, 2026, there are no material subsequent events to report

Comparison of the Three-MonthNine-Month Period Ended AprilJuly 30,31, 2026, with the Three-MonthNine-Month Period Ended AprilJuly 30,31, 2025.

The following table shows a comparison of the results of operations between the threeNine month periods ended AprilJuly 30,31, 2026, and AprilJuly 30,31, 2025:

Revenues for the three-monthnine-month period ended AprilJuly 30,31, 2026, were $808,666$2,199,114 compared to revenues of $796,369$1,952,921 for the three-monthnine-month period ended AprilJuly 30,31, 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 $285,133$790,588 for the threenine months ended AprilJuly 30,31, 2026, compared to $199,824$664,725 for the three-monthnine-month period ended JanuaryJuly 31, 2025. In February of 2024, we hired a son of our former CEO as a consultant to increase the sales.

During the three-monthnine-month period ended AprilJuly 30,31, 2026, we funded our operations from revenues and the sale of our common stock.revenues.