Kaival Brands Reports Q2 FY24 Financials

TL;DR

Kaival Brands dropped its Q2 FY24 10-Q. Check financials.

AI Summary

Kaival Brands Innovations Group, Inc. filed its 10-Q for the period ending April 30, 2024. The company reported its financial results for the second quarter of fiscal year 2024, which ended on April 30, 2024, and provided an update on its business operations. The filing details its balance sheet, income statement, and cash flow statement for the relevant periods.

Why It Matters

This filing provides investors with a detailed look at Kaival Brands' financial health and operational performance during the second quarter of fiscal year 2024, crucial for investment decisions.

Risk Assessment

Risk Level: medium — As a publicly traded company filing a 10-Q, there are inherent risks associated with financial reporting and market performance.

Key Numbers

• 20240430 — End of Fiscal Quarter (Indicates the period covered by the financial statements.)
• 20240618 — Filing Date (The date the report was officially submitted to the SEC.)

Key Players & Entities

• Kaival Brands Innovations Group, Inc. (company) — Filer of the 10-Q
• 20240430 (date) — End of the reporting period
• 20240618 (date) — Date of filing

FAQ

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share KAVL The Nasdaq Stock Mar

Filing Documents

• e5746_10q.htm (10-Q) — 946KB
• e5746_ex31-1.htm (EX-31.1) — 10KB
• e5746_ex31-2.htm (EX-31.2) — 9KB
• e5746_ex32-1.htm (EX-32.1) — 8KB
• e5746_ex32-2.htm (EX-32.2) — 7KB
• 0001731122-24-000965.txt ( ) — 4648KB
• kavl-20240430.xsd (EX-101.SCH) — 34KB
• kavl-20240430_cal.xml (EX-101.CAL) — 44KB
• kavl-20240430_def.xml (EX-101.DEF) — 137KB
• kavl-20240430_lab.xml (EX-101.LAB) — 273KB
• kavl-20240430_pre.xml (EX-101.PRE) — 224KB
• e5746_10q_htm.xml (XML) — 699KB

Financial Statements

Financial Statements F-1 Unaudited Consolidated Balance Sheets F-1 Unaudited Consolidated Statements of Operations F-2 Unaudited Consolidated Statements of Changes in Stockholders' Equity F-3 Unaudited Consolidated Statements of Cash Flows F-5 Notes to Unaudited Consolidated Financial Statements F-6 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 1 Liquidity and Capital Resources 7 Results of Operations 8 Emerging Growth Company 10 Item 3

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 10 Item 4

Controls and Procedures

Controls and Procedures 10 PART II Other Information 11 Item 1.

Legal Proceedings

Legal Proceedings 11 Item 1A.

Risk Factors

Risk Factors 11 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 11 Item 3 Defaults Upon Senior Securities 11 Item 4 Mine Safety Disclosures 11 Item 5 Other Information 11 Item 6 Exhibits 12

Signatures

Signatures 13 i CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS Certain contain or may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Private Securities Litigation Reform Act of 1995. We generally use the words "may," "should," "believe," "expect," "intend," "plan," "anticipate," "likely," "estimate," "potential," "continue," "will," and similar expressions to identify forward-looking statements. Forward-looking without limitation, statements related to: our substantial reliance on, and efforts to diversify our business from, the business of our affiliate Bidi Vapor, LLC ("Bidi"); our ability to raise required funding in the form of debt or equity both in the near and longer term; our ability to obtain from, and pay for, Bidi products we distribute; our ability to integrate and ultimately enter into licenses for or create products relating to the intellectual property assets we acquired from GoFire, Inc. on May 30, 2023; the impact of the August 2022 11th Circuit Court of Appeals decision overturning the U.S. Food and Drug Administration's ("FDA") previous denial of Bidi's Premarket Tobacco Product Application ("PMTA") for its non-tobacco flavored BIDI Stick electronic nicotine delivery system ("ENDS"), which we are permitted to distribute in the U.S. subject to FDA enforcement and maintenance of all state licenses and permits, and the outcome of the FDA's pending review of such PMTA, the denial of which could have a substantial adverse impact on our company; the impact of the FDA's marketing denia

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Kaival Brands Innovations Group, Inc. Consolidated Balance Sheets (Unaudited) April 30, 2024 October 31, 2023 ASSETS CURRENT ASSETS Cash $ 488,083 $ 533,659 Accounts receivable, net 651,119 1,869,276 Inventories, net 598,162 4,071,824 Prepaid expenses 164,289 430,668 Total current assets 1,901,653 6,905,427 Fixed assets, net 2,493 2,842 Intangible assets, net 11,075,110 11,468,309 Right of use asset - operating lease 910,260 1,008,428 TOTAL ASSETS $ 13,889,516 $ 19,385,006 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 472,471 $ 374,332 Accounts payable - related party 1,353,691 2,474,817 Loans payable, net 281,861 799,471 Accrued expenses 624,425 736,194 Customer refund due 331,459 392,406 Operating lease obligation - short term 194,143 184,568 Total current liabilities 3,258,050 4,961,788 LONG TERM LIABILITIES Operating lease obligation, net of current portion 767,449 866,207 TOTAL LIABILITIES 4,025,499 5,827,995 Commitments and Contingencies (Note 9) — — STOCKHOLDERS' EQUITY Preferred stock: 5,000,000 shares authorized Series A Convertible Preferred stock ($ 0.001 par value, 3,000,000 shares authorized, none issued and outstanding as of April 30, 2024 and October 31, 2023, respectively) — — Series B Convertible Preferred stock ($ 0.001 par value, 900,000 shares authorized, 900,000 issued and outstanding as of April 30, 2024, and October 31, 2023, respectively) 900 900 Common stock ($ .001 par value, 1,000,000,000 shares authorized, 2,863,002 and 2,793,386 shares issued and outstanding as of April 30, 2024, and October 31, 2023, respectively) 2,863 2,793 Additional paid-in capital 44,265,066 44,317,266 Accumulated deficit ( 34,404,812 ) ( 30,763,948 ) TOTAL STOCKHOLDERS' EQUITY 9,864,017 13,557,011 TOTAL LIABILITIES & STO

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View this 10-Q filing on SEC EDGAR