Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 733

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 7
Chunk 733
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                                            of $0.3 million, as compared to $12.8 million for the year ended October 31, 2023.  

42

As of October 31, 2024, we had no related party receivable
balance. As of October 31, 2024, there was $131,683 of related party accounts payable. On October 31, 2023, a credit of $3.0 million
was applied from the related-party receivable balance to the related party accounts payable balance. After this was applied, we had no
related party receivable balance as of October 31, 2023. As of October 31, 2023, the related party accounts payable balance related to
purchases of inventories was $1.5 million.

Concentration of Revenues and Accounts Receivable:

For the fiscal year 2024, (i) approximately 21% of the revenue from the sale
of Products, solely consisting of the BIDI® Stick, was generated from QuikTrip Corporation in the amount of approximately
$1.2 million, (ii) approximately 12% from GPM Investments in the amount of $0.7 million, and (iii) approximately 11% from FAVS Business,
LLC in the amount of $0.7 million. For the fiscal year 2023, (i) approximately 16% of the revenue from the sale of Products, solely consisting
of the BIDI® Stick, was generated from GPM Investments, LLC in the amount of approximately $2.0 million, (ii) approximately
15% from H.T. Hackney Co in the amount of $1.8 million, (iii) approximately 15% from FAVS Business, LLC in the amount of $1.8 million,
(iv) approximately 14% from C Store Master in the amount of $1.8 million, and (v) approximately 12% from QuikTrip Corporation in the amount
of $1.5 million.

QuikTrip
                                            Corporation with an outstanding balance of approximately $205 accounted for 100% of the
                                            total accounts receivable from customers, as of October 31, 2024.   FAVS Business
                                            LLC with an outstanding balance of approximately $302,000, C Store Master with an outstanding
                                            balance of approximately $301,000, and QuikTrip Corporation with an outstanding balance of
                                            approximately $165,000 accounted