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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.

313728

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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.

127854

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.

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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.

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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

2549443

2429443

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. 32653 74320

NOTE 11 – COMMON STOCK As of July 31, 2026, the total stock issued is 38,504,003

38504003

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 $<span id="xdx_901_ecustom--PurchasePriceMachineryAndEquipment_pp0p0_c20150711__20150712__srt--CounterpartyNameAxis__custom--KetutJayaMember__srt--ProductOrServiceAxis__custom--INSULTEXMaterialMember_zhQKj8A54yX2" title="Purchase price machinery and equipment">700,000 and to be made in four installments. <span id="xdx_904_ecustom--DescriptionOfPurchasePricePaymentTerms_c20251101__20260731__srt--CounterpartyNameAxis__custom--KetutJayaMember__srt--ProductOrServiceAxis__custom--INSULTEXMaterialMember_zJcBaV6sLxEh" title="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. As of October 31, 2018, the Company has made payments of $<span id="xdx_909_ecustom--PurchasePriceMachineryAndEquipment_pp0p0_c20171101__20181031__srt--CounterpartyNameAxis__custom--KetutJayaMember__srt--ProductOrServiceAxis__custom--INSULTEXMaterialMember_zobNnkxFCShh" title="Purchase price machinery and equipment">500,000 in accordance with the agreement and made a $<span id="xdx_904_ecustom--AdvancePaymentForMachineryAndEquipment_pp0p0_c20171101__20181031__srt--CounterpartyNameAxis__custom--KetutJayaMember__srt--ProductOrServiceAxis__custom--INSULTEXMaterialMember_zLJpYZUmslvj" title="Prepayment for machinery and equipment">100,000 pre-payment as the machine is not yet producing INSULTEX. Additionally, the Company has incurred $<span id="xdx_905_ecustom--AdditionalExpensesRelatedToEquipment_pp0p0_c20171101__20181031__srt--CounterpartyNameAxis__custom--KetutJayaMember__srt--ProductOrServiceAxis__custom--INSULTEXMaterialMember_zlEIiyhpj7ug" title="Additional expenses related to equipment">17,000 of additional expenses related to shipping, site improvements and installation of the equipment. During 2019, the Company determined the shipping costs of $<span id="xdx_902_ecustom--ShippingCosts_pp0p0_c20181101__20191031__srt--CounterpartyNameAxis__custom--KetutJayaMember__srt--ProductOrServiceAxis__custom--INSULTEXMaterialMember_zWouSSyCtfle" title="Shipping costs">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 $<span id="xdx_905_ecustom--AdditionalPrePaymentForMachineryAndEquipment_c20221101__20231031__srt--CounterpartyNameAxis__custom--KetutJayaMember__srt--ProductOrServiceAxis__custom--INSULTEXMaterialMember_zjnCgUERQiYh" title="Additional preprepayment for machinery and equipment">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. 700000 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. 500000 100000 17000 17000 16000 7370 29574 39139

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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. 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.

0.0550

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.

260000

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