Company: KAVL
Filing Date: 2025-08-04
Form Type: S-3/A
Source: 0001731122-25-001067
Chunk: 7

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-08-04
Form: S-3/A
Chunk 7
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 We caution investors not to place significant reliance
on forward-looking statements; such statements need to be evaluated in light of all the information contained and incorporated by reference
in this prospectus. Furthermore, the statements speak only as of the date of each document, and we undertake no obligation to update or
revise these statements.

This summary highlights selected information that is presented in greater detail elsewhere, or incorporated by reference, in this prospectus. It does not contain all of the information that may be important to you and your investment decision. Before investing in our securities, you should carefully read this entire prospectus, including the matters set forth in the section titled “Risk Factors” and the financial statements and related notes and other information that we incorporate by reference herein, including our Annual Report on Form 10-K.

<div align='center'>BUSINESS SUMMARY</div>

We are engaged in the sale, marketing
and distribution of electronic nicotine delivery system (“ENDS”) products, also known as “e-cigarettes”, in a
variety of favors. Until October of 2024, our primary source of revenue has been the Bidi Stick as we sold our inventory on hand. However,
on June 11, 2024, RAI Strategic Holdings, Inc., R.J. Reynolds Vapor Company, R.J. Reynolds Tobacco Company, and RAI Services Company (collectively,
the “RJ Reynolds Entities”) filed a patent infringement complaint with the International Trade Commission (the “ITC”)
against Bidi, us, and forty (40) other respondents (the “ITC Complaint”) pursuant to Section 337 of the Tariff Act of 1930,
as amended. Specifically, the ITC Complaint alleges that one or more components or elements of the Bidi Stick infringe U.S. Patent No.
11,925,202, which is owned by one of the RJ Reynolds Entities. The ITC Complaint requests the ITC grant: (a) temporary and permanent limited
exclusion orders pursuant to Section 337(e) of the Tariff Act of 1930, as amended, which would prohibit the importation of the Bidi Stick
in the United States; and (b) issue temporary and permanent cease and desist orders pursuant to 337(f) of the Tariff Act of 1930, as amended,
which would prohibit the sale and distribution of the Bidi Stick in the United States. No damages are recoverable in the proceedings before
the ITC. Since the initiation of the ITC Complaint