Company: KAVL
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001731122-25-000842
Chunk: 94

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-06-10
Form: 10-Q
Item: Item 2
Chunk 94
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 the second quarter of fiscal year 2024, operating
expenses consisted primarily of advertising and promotion fees of approximately $0.3 million, stock option expense of approximately ($0.3)
million, professional fees of approximately $0.5 million, and all other general and administrative expenses of approximately $1.3 million.
General and administrative expenses in the first quarter of fiscal year 2024 consisted primarily of salaries and wages, insurance, lease
expense, project expenses, banking fees, business fees and state and franchise taxes.

Income Taxes:

During the second quarter of fiscal year 2025, we did not accrue a provision for
income taxes, due to the pre-tax loss of approximately $2.0 million. Similarly, we did not accrue a provision for income taxes, due to
the pre-tax loss of approximately $1.5 million for the second quarter of fiscal year 2024.

Net Loss:

As a result of the
items noted above, the net loss for the second quarter of fiscal year 2025 was approximately $2.0 million, or $0.17 basic and diluted
net loss per share, compared to a net loss of approximately $1.5 million, or $0.56 basic and diluted net loss per share, for the
second quarter of fiscal year 2024. The increase in the net loss for the second quarter of fiscal year 2025, as compared to the
second quarter of fiscal year 2024, is primarily attributable to the increase of stock-based compensation, loss on ROU asset and lower
sales revenue.

Six months ended April 30, 2025, compared to six
months ended April 30, 2024

Revenues:

Revenues for the six months ended April 30, 2025,
were approximately $0.2 million, compared to $5.4 million for the six months ended April 30, 2024. Revenues decreased during the six months
ended April 30, 2025, compared to the six months ended April 30, 2024, primarily due to a decrease in product sales to customers.

Cost of Revenue and Gross Profit:

Gross profit for the six months ended April 30, 2025,
was approximately $0.2 million, compared to gross profit of approximately $1.7 million for the six months ended April 30, 2024. Total
cost of revenue was approximately zero million for the six months ended April 30,