Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 757

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 7
Chunk 757
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 of all potentially dilutive shares are excluded from the diluted
net loss per share calculation as their inclusion would be antidilutive.

As
of October 31, 2024, and 2023, there were 5,944,276 and 691,654, respectively, units of common stock equivalents that consists of options
and warrants units, as well as 357,120 shares issuable upon preferred stock conversions, that were excluded from the current and prior
period diluted loss per share calculation as their effect is anti-dilutive. 

Concentration of Revenues and Accounts Receivable

For the year then ended October 31, 2024, (i) 21%
or $1,236,491 of the revenue from the sale of Products, solely consisting of the BIDI® Stick, was generated from QuikTrip Corporation,
(ii) 12% or $678,562 was generated from GPM Investments, LLC, and (iii) 11% or $655,583 was generated from FAVS Business, LLC. On May
2, 2024, QuikTrip Corporation terminated its consignment arrangement with the Company.   

For the year then ended October 31, 2023, (i) 16%
or $1,986,970 of the revenue from the sale of Products, solely consisting of the BIDI® Stick, was generated from GPM Investments,
LLC, (ii) 15% or $1,842,511 was generated from H.T. Hackney Co, (iii) 15% or $1,817,310 was generated from FAVS Business, LLC, (iv) 14%
or $1,759,563 was generated from C Store Master, and (v) approximately 12% or $1,501,439 was generated from QuikTrip Corporation.

QuikTrip Corporation with an outstanding balance of
$205 accounted for 100% of the total accounts receivable from customers as of October 31, 2024.

FAVS Business LLC with an outstanding balance of $302,400,
C Store Master with an outstanding balance of $300,590, and QuikTrip Corporation with an outstanding balance of $164,987 accounted for
approximately 35%, 35%, and 19% of the total accounts receivable from customers, respectively, as of October 31, 2023.

Share-Based Compensation

The Company measures the cost of services received
in exchange for an award