Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 491

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 3
Chunk 491
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, 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 of equity instruments (share-based payments, referred to herein as “SBP”) based on the grant-date
fair value of the award. That cost is recognized over the period during which a recipient is required to provide service in exchange for
the SBP award—the requisite service period (vesting period). For SBP awards subject to performance conditions, compensation is not
recognized until the performance condition is probable of occurrence. The grant-date fair value of share options is estimated using the
Black-Scholes-Merton option-pricing model.

The fair value of each option granted during the years
then ended October 31, 2024, and October 31, 2023, was estimated on the date of grant using the Black-Scholes-Merton option-pricing model
with the weighted average assumptions in the following table:

Schedule of weighted average assumptions 

As of October
 
As of October

31, 2024