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, 2022.

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,
2020. The Company undertakes no obligation to publicity update or revise any
forward-looking statement, whether as a result of new information, future events
or otherwise except as required by law.



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
INSULTEX, 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 INSULTEX. We
obtain INSULTEX through a license agreement with the owner and manufacturer of
the material. Since our formation we have devoted our efforts to:

? Completing the development, design and prototypes of our products,


 ? Obtaining retail stores or sales agents to offer and sell our products,

? Developing our website to sell more of our products.






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                            INNOVATIVE DESIGNS, INC.



Results of Operations

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





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

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

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

(Loss) Income from operations (59,245 ) -83 % (120,192 ) 


   -193 %       60,947          -51 %

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

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




Revenues for the three-month period ended January 31, 2023, was $71,647 compared
to revenues of $62,400 for the three-month period ended January 31, 2022. The
increase in revenue is primarily attributable to more sales of our House Wrap
product. See Note 13 of the Notes to the Condensed Financial Statements
appearing elsewhere in this Report for a description of our segment products
sales. Our net loss for the three-month period ended January 31, 2022, was ($
132,040) compared to a net loss of ($ 35,965) for the same period in 2021.



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

2022.



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Liquidity and Capital Resources

During the three-month period ended January 31, 2023, we funded our operations from revenues from sales, and sale of our common stock.


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



We also must purchase new quality control testing equipment for our House Wrap
Product line which we estimate may cost approximately $100,000. However, we have
not as yet received a quote from the vendor. We have placed a $7,000 deposit
with the vendor. Once the equipment is built it will have to go through a
certification process.



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



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                            INNOVATIVE DESIGNS, INC.

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