Company: KAVL
Filing Date: 2025-09-16
Form Type: 10-Q
Source: 0001731122-25-001266
Chunk: 43

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-09-16
Form: 10-Q
Item: Item 1
Chunk 43
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The decrease
is primarily a decrease in professional fees, payroll and general and administrative expenses.   For the third quarter
of fiscal year 2025, operating expenses consisted primarily of professional fees of approximately $0.2 million, and all other general
and administrative expenses of approximately $0.4 million. General and administrative expenses in the third quarter of fiscal year 2025
consisted primarily of salaries and wages, insurance, lease expense, project expenses, banking fees, business fees and state and franchise
taxes.

For the third quarter of fiscal year 2024, operating expenses consisted primarily
of advertising and promotion fees of approximately $0.03 million, stock option expense of approximately $56 thousand, professional fees
of approximately $0.6 million, and all other general and administrative expenses of approximately $1.1 million. General and administrative
expenses in the third 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 third quarter of fiscal year 2025, we did
not accrue a provision for income taxes, due to the pre-tax loss of approximately $0.6 million. Similarly, we did not accrue a provision
for income taxes, due to the pre-tax loss of approximately $1.6 million for the third quarter of fiscal year 2024.

Net Loss:

As a result of the items noted above, the net loss
for the third quarter of fiscal year 2025 was approximately $0.6 million, or $0.05 basic and diluted net loss per share, compared to a
net loss of approximately $1.8 million, or $0.39 basic and diluted net loss per share, for the third quarter of fiscal year 2024.
The decrease in the net loss for the third quarter of fiscal year 2025, as compared to the third quarter of fiscal year 2024, is
primarily attributable to the lower sales and royalty revenue and decrease in operating expenses as noted above.

Nine months ended July 31, 2025, compared to nine
months ended July 31, 2024

Revenues:

Revenues for the nine months ended July 31, 2025,
were approximately $0.4 million, compared to $6.2 million for the nine months ended July 31, 2024. Revenues decreased during the nine
months ended July 31