Company: KAVL
Filing Date: 2025-03-17
Form Type: 10-Q
Source: 0001731122-25-000399
Chunk: 20

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-03-17
Form: 10-Q
Item: Item 1
Chunk 20
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    or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar
    assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability
    (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or
    other means.

    ●
    Level
    3 - Inputs that are both significant to the fair value measurement and unobservable.

    F-14 

Fair value estimates
discussed herein are based upon certain market assumptions and pertinent information available to management as of January 31, 2025 and
October 31, 2024. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to
the short-term nature of these instruments. These financial instruments include cash, accounts receivable, accounts payable,
accrued expenses and loans payable. As of January 31, 2025 and October 31, 2024, the Company did not have any financial assets or
liabilities measured and recorded at fair value on a recurring basis.

Recent Accounting Pronouncements – Not Yet
Adopted

In December 2023, the Financial Accounting Standards
Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740) - Improvements
to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires additional disclosures reconciling the rates of different
categories of income tax (i.e. federal, state, foreign, etc.) and a disaggregation of taxes paid and refunded. ASU 2023-09 is effective
for fiscal years beginning after December 15, 2024, and for interim periods in fiscal years beginning after December 15, 2025, although
early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its income tax disclosures.

In November 2023, the FASB issued ASU 2023-07, “Segment
Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which is intended to improve reportable segment disclosure
requirements, primarily through enhanced disclosures about significant segment expenses. The purpose of the amendment is to enable investors
to better understand an entity’s overall performance and assess potential future cash flows. The guidance is effective for fiscal
years beginning after December 15,