INNOVATIVE DESIGNS INC

The Company, incorporated in Delaware on June 25, 2002, operates in two business segments: house wrap for the building construction industry and cold weather clothing. Both segments utilize products made from Insultex, a low-density polyethylene semi-crystalline, closed-cell foam with buoyancy, scent block, and thermal resistant properties. The Company holds a direct license agreement with the owner of the Insultex technology. In December 2015, equipment for producing Insultex was delivered. Until manufacturing begins, the Company will continue to operate under the license agreement for Insultex used in its products. The Company is the sole worldwide supplier/distributor of Insultex material, with the exception of Korea and Japan. Other companies can purchase Insultex from the Company within this distribution jurisdiction. The Company offers House Wrap, designed for the home building construction industry, which provides barrier protection, moisture vapor transmission, and approximately R-3 and R-6 value insulation. The R-3 product line is no longer manufactured and is sold from inventory. House Wrap is a multi-ply weatherization membrane that resists water and air infiltration, preventing mold and mildew. Insultex differentiates itself by offering an R-Value, which measures thermal resistance and increases energy efficiency in building structures. The Company is developing a House Wrap product line for the commercial building construction industry.