Kaival Brands Files Q3 2024 10-Q

TL;DR

Kaival Brands dropped its Q3 10-Q. Financials for July 31, 2024, are in.

AI Summary

Kaival Brands Innovations Group, Inc. filed its 10-Q for the period ending July 31, 2024. The company reported its financial results for the third quarter of fiscal year 2024. Key financial data and balance sheet information as of July 31, 2024, and October 31, 2023, are detailed within the filing.

Why It Matters

This filing provides investors with the latest financial performance and position of Kaival Brands, crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information which can reveal significant risks and opportunities for investors.

Key Numbers

• 2024-07-31 — Fiscal Period End (The end date for the financial reporting period covered by the 10-Q.)
• 2024-09-20 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 1031 — Fiscal Year End (Indicates the company's fiscal year concludes on October 31st.)

Key Players & Entities

• Kaival Brands Innovations Group, Inc. (company) — Filer of the 10-Q
• 20240731 (date) — End of the reporting period
• 20240920 (date) — Filing date
• 4460 OLD DIXIE HIGHWAY (address) — Company's business and mailing address
• GRANT-VALKARIA, FL 32949 (address) — Company's business and mailing address

FAQ

Key Financial Figures

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

Filing Documents

• e5934_10q.htm (10-Q) — 819KB
• e5934_ex31-1.htm (EX-31.1) — 9KB
• e5934_ex31-2.htm (EX-31.2) — 9KB
• e5934_ex32-1.htm (EX-32.1) — 7KB
• e5934_ex32-2.htm (EX-32.2) — 6KB
• 0001731122-24-001456.txt ( ) — 4849KB
• kavl-20240731.xsd (EX-101.SCH) — 41KB
• kavl-20240731_cal.xml (EX-101.CAL) — 45KB
• kavl-20240731_def.xml (EX-101.DEF) — 160KB
• kavl-20240731_lab.xml (EX-101.LAB) — 351KB
• kavl-20240731_pre.xml (EX-101.PRE) — 283KB
• e5934_10q_htm.xml (XML) — 648KB

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 11 th 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 denial

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Kaival Brands Innovations Group, Inc. Consolidated Balance Sheets (Unaudited) July 31, 2024 October 31, 2023 ASSETS CURRENT ASSETS Cash $ 4,524,989 $ 533,659 Accounts receivable, net 522,183 1,869,276 Inventories, net 200,364 4,071,824 Prepaid expenses 551,819 430,668 Total current assets 5,799,355 6,905,427 Fixed assets, net 2,321 2,842 Intangible assets, net 10,878,511 11,468,309 Right of use asset - operating lease 860,416 1,008,428 TOTAL ASSETS $ 17,540,603 $ 19,385,006 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 73,334 $ 374,332 Accounts payable - related party 1,483,000 2,474,817 Loans payable, net 371,566 799,471 Accrued expenses 701,329 736,194 Customer refund due 461,718 392,406 Operating lease obligation - short term 199,012 184,568 Total current liabilities 3,289,959 4,961,788 LONG TERM LIABILITIES Operating lease obligation, net of current portion 715,749 866,207 TOTAL LIABILITIES 4,005,708 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 July 31, 2024 and October 31, 2023) — — Series B Convertible Preferred stock ($ 0.001 par value, 900,000 shares authorized, 900,000 issued and outstanding as of July 31, 2024 and October 31, 2023) 900 900 Common stock ($ .001 par value, 1,000,000,000 shares authorized , 6,783,958 and 2,793,386 shares issued and outstanding as of July 31, 2024 and October 31, 2023, respectively) 6,784 2,793 Additional paid-in capital 49,503,884 44,317,266 Accumulated deficit ( 35,976,673 ) ( 30,763,948 ) TOTAL STOCKHOLDERS' EQUITY 13,534,895 13,557,011 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 17,540,603 $ 19,385,006 The accompanying notes are an integral part of

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View this 10-Q filing on SEC EDGAR