Company: KAVL
Filing Date: 2025-03-17
Form Type: 10-Q
Source: 0001731122-25-000399
Chunk: 4

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-03-17
Form: 10-Q
Item: Item 1
Chunk 4
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 INVESTING ACTIVITIES

Net cash used in investing activities

—

—

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from loans payable

—

1,106,731

Payments on loans payable

(163,949
)

(1,293,984
)

Payments on preferred dividend 

(405,000
) 

 —

Net cash used in financing activities 

(568,949
)

(187,253
)

Net change in cash

(1,474,688
)

57,634

Beginning cash balance

3,902,300

533,659

Ending cash balance
 
$
2,427,612

$
591,293

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Interest paid
 
$
4,092

$
111,239

Income taxes paid
 
$
—

$
—

NON-CASH TRANSACTIONS

Preferred stock dividend
 
$
22,500

$
67,500

 The accompanying notes
are an integral part of these unaudited consolidated financial statements.

F-5 

KAIVAL BRANDS INNOVATIONS GROUP, INC.

 Notes to Unaudited Consolidated Financial
Statements

Note 1 – Organization and Description of Business

Kaival Brands Innovations Group, Inc. (the “Company,”
the “Registrant,” “we,” “us,” or “our”), formerly known as Quick Start Holdings, Inc.,
was incorporated on September 4, 2018, in the State of Delaware.

Description of Business

On March 9, 2020, the Company entered into an exclusive
distribution agreement (the “Distribution Agreement”) of certain electronic nicotine delivery systems (“ENDS”)
and related components (the “Products”) with Bidi Vapor, LLC, a Florida limited liability company (“Bidi”). The
Distribution Agreement was amended and restated on May 21, 2020, again on April 20, 2021, again on June 10, 2022,
and again on November 17, 2022 (collectively the “A&R Distribution Agreement”), in order to clarify some of the
provisions and memorialize the Company’s current business relationship with Bidi. Pursuant to the A&R Distribution Agreement,
Bidi granted the Company an exclusive worldwide right to distribute the Products for sale and resale to non-retail level customers. Currently,
the Products consist primarily of the “Bidi Stick.”

On August 31,