Innovative Designs Inc (OTC: IVDN)

Innovative Designs, Inc. was formed on June 25, 2002 and is engaged in the design, development and sale of specialty apparel and building materials. The company’s core products consist of outdoor clothing and cold weather gear sold under the Arctic Armor brand and a building wrap product known as House Wrap. Both product lines are manufactured from the proprietary IINSULTEX material which provides buoyancy, scent block and thermal resistant characteristics. Innovative Designs, Inc. obtains IINSULTEX through a license agreement with the manufacturer and has devoted its efforts to completing product prototypes, securing retail distribution agreements with stores and sales agents, and building an ecommerce website to sell directly to consumers. Since its formation the firm has focused on turning the licensed material into finished goods that can be offered through traditional retail channels and online sales platforms.

Revenue is derived from the sale of Arctic Armor apparel such as jackets, pants, gloves, hats and accessories, as well as from the sale of House Wrap panels used in residential and commercial construction for sheathing and insulation purposes. The company distributes its products through independent sales agents, through agreements with outdoor oriented retail stores and via its own ecommerce platform. In the three month period ended January 31, 2026, Innovative Designs, Inc. reported net revenue of $632,201, representing a 16.2% increase compared to the prior year period, with the growth attributable primarily to higher House Wrap sales. The increase in revenue reflects the company’s success in expanding distribution of its building wrap line. The company follows a revenue recognition policy that records income when pervasive evidence of an agreement exists, the services have been rendered, the fee is fixed and determinable and collection is reasonably assured.

Innovative Designs, Inc. holds a specialized position in the market by combining the functional benefits of IINSULTEX with both apparel and building wrap applications. The proprietary material offers thermal insulation, moisture resistance and scent control, attributes that are not commonly found together in standard outdoor gear or conventional house wrap products. This differentiation creates a competitive advantage, especially as the company holds exclusive rights to the IINSULTEX formula through its licensing agreement. The firm faces competition in the cold weather apparel market and from other manufacturers of synthetic building wraps, including those offering polyethylene or polypropylene based products. A third party component of the House Wrap produced by an external supplier is already ICCES certified, which highlights the importance of obtaining similar certification for the company’s own product. Innovative Designs, Inc. is pursuing ICCES certification for House Wrap to meet the requirements of large scale building projects, a process that involves third party testing and validation. Additionally the company has invested in equipment to produce IINSULTEX internally, having paid deposits on machinery and awaiting installation and compliance checks to begin in house material production. Reliance on a single source for IINSULTEX presents a risk because the material is manufactured by a company in Indonesia using proprietary technology and any disruption could affect the ability to maintain operations.

The company serves a diverse customer base that includes outdoor oriented retail stores that cater to hikers, campers and cold weather enthusiasts, independent sales agents who represent the product lines to regional markets, individual consumers who purchase through its ecommerce site and contractors or builders that use House Wrap for residential and commercial construction projects. No specific customer names are disclosed in the filing. By focusing on niche products that combine performance features with proprietary material technology, Innovative Designs, Inc. aims to build brand loyalty among active outdoor enthusiasts and to secure repeat orders from construction professionals seeking reliable building wrap solutions. The firm also seeks to expand its presence in home improvement stores that stock sheathing and insulation materials for new builds and renovations.