Innovative Designs, Inc.

Overview

Innovative Designs, Inc. markets two product lines built around Insultex material: an Insultex-based House Wrap for the construction industry and a cold-weather clothing line historically sold as Arctic Armor (currently sold only from existing inventory). Insultex is supplied under an exclusive license and manufacturing arrangement with Ketut Group. The company plans to move toward in-house Insultex production when funding allows, and currently relies on the Ketut Group for supply.

Product lines

• House Wrap
  • Weather barrier using Insultex with moisture transmission properties and insulation value (references describe approximately R-3 to R-6).
  • Marketed to home builders and contractors; sold through distributors, retailers, and the company website.
• Arctic Armor (cold-weather clothing)
  • Jackets, bibs, gloves, and related gear using Insultex for warmth and buoyancy.
  • Currently sold only from existing inventory; no active manufacturing during the reported period.

Licensing and manufacturing

• Exclusive license to Insultex technology from Ketut Group for worldwide rights, excluding Korea and Japan.
• Initial license term of 10 years with options to renew for up to three additional 10-year terms; the first renewal option has been exercised.
• Ketut Group delivery terms: delivery within 28 days of an order; fixed price per meter for the first 10-year term, with adjustments for a subsequent 10-year term not to exceed 12% per year.
• No minimum purchase obligation; minimum order size is 100,000 yards when an order is placed.
• The company holds deposits on equipment for Insultex production totaling $662,944 (as of October 31, 2025). Equipment capable of producing Insultex was delivered in 2015 but production has not been in full operation due to funding constraints.

Intellectual property

• Trademarks: idigear, Insultex, and Insultex House Wrap.
• Patents and applications: multiple U.S. patents and pending applications related to Insultex technology and composites, including filings such as “Process for Forming Closed Cell Expanded Low density Polyethylene Foam and Products Formed Thereby.”

Marketing, sales, and distribution

• Direct sales via idigear.com and through retailers and distributors in the United States and Canada.
• Website development and marketing managed by The Hive Agency.
• Distribution includes two domestic distributors and retailer networks.
• Product benefits emphasized include lightweight construction, waterproofing, wind protection, sub-zero performance, buoyancy, and scent-block properties; the company references testing (for example, permeation testing) to support product claims.

Customers and concentration

• Revenue concentration is high: two customers accounted for approximately 95.2% of revenues in 2025 and 87.3% in 2024.
• House Wrap customers identified in the referenced year include A-Team Building Supplies, LLC (about 10.3%) and Built Link Solutions (about 77%).
• The business is exposed to customer concentration risk if major customers reduce orders.

Management and governance

• Two full-time employees; additional part-time personnel are used as needed.
• Key personnel:
  • Joseph Riccelli Sr. — Chairman and consultant to the Insultex manufacturing arrangement
  • Joseph Riccelli Jr. — CEO, CFO, and Director; also serves as principal accounting officer
  • Directors: Daniel P. Rains; Donald V. Garlotta, Ph.D.; John Spagnolo Jr.
• The company does not have a separate audit committee and did not have a formal code of ethics as of the filing.

Facilities

• Primary operations and warehouse/office: 124 Cherry Street, Etna (Pittsburgh), PA 15223.
• Facility size: approximately 13,000 sq ft of warehouse/storage and 2,000 sq ft of offices.
• Lease: month-to-month verbal lease with monthly rent of $3,500.

Financial snapshot (fiscal year ended Oct 31)

• Revenue (net)
  • 2025: $2,765,149
  • 2024: $1,382,733
• By segment
  • House Wrap: 2025 — $2,757,614; 2024 — $1,324,127
  • Arctic Armor and related lines: 2025 — $7,535; 2024 — $51,602
• Cost of goods sold
  • 2025: $1,405,459
  • 2024: $753,723
• Selling, general and administrative expenses
  • 2025: $859,084
  • 2024: $490,838
• Operating income
  • 2025: $500,606
  • 2024: $138,173
• Other income/expenses
  • Interest expense: 2025 — $1,313; 2024 — $36,272
  • Depreciation: 2025 — $8,196; 2024 — $4,977
  • Net other income/expenses: 2025 — $(5,903); 2024 — $(36,272)
• Net income
  • 2025: $494,703
  • 2024: $96,923
• Earnings per share (undiluted)
  • 2025: $0.01
  • 2024: $0.00
• Weighted average shares outstanding (undiluted)
  • 2025: 38,316,256
  • 2024: 37,276,150
• Outstanding shares (issued and outstanding)
  • Oct 31, 2025: 38,504,003
  • Oct 31, 2024: 37,924,003
• Selected balance sheet items (Oct 31, 2025)
  • Cash: $605,052
  • Accounts receivable (net): $344,700
  • Inventory: $537,713
  • Current assets: $1,498,043
  • Property and equipment (net): $30,530
  • Deposits on equipment: $662,944
  • Total assets: $2,212,017
  • Current liabilities: $129,538
  • Total liabilities: $152,438
  • Stockholders’ equity: $2,059,579

Going concern

• The company has an accumulated deficit of $10,045,330 and reports substantial doubt about its ability to continue as a going concern for one year from the issue date of the financial statements.
• Management intends to finance operations through revenues, private stock sales, and borrowings.

Other items

• Legal: FTC-related litigation concerning Insultex claims was settled; the company received $260,000 in 2022 under that settlement.
• Related-party transactions include leases with a related party and certain shareholder loans.
• The company’s securities trade on the OTCQB as a penny stock.
• No environmental or regulatory costs related to Insultex manufacturing were accrued during the reported period, as production had not been scaled.

Summary

Innovative Designs focuses on Insultex-based products, with House Wrap as the primary revenue driver and Arctic Armor sold from existing inventory. The company operates under an exclusive license with Ketut Group and plans to pursue in-house production when funding permits. Revenue grew to about $2.77 million in fiscal 2025 with net income of $494,703, while the business carries a substantial accumulated deficit and reports going-concern uncertainty. Customer concentration and dependence on external Insultex supply are key business considerations.