Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 0

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1
Chunk 0
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As used in this Report, the
terms “we,” “us,” “our,” the “Company,” and “Kaival” refer to Kaival Brands
Innovations Group, Inc., a Delaware corporation, unless otherwise indicated. The term “Common Stock” means our common stock,
par value $0.001 per share.

Unless the context specifically
requires otherwise, all historical share and per-share amounts reflected in our consolidated financial statements and other financial
information contained in this Report are presented to reflect a 1-for-21 reverse stock split of our Common Stock which became effective
for legal and accounting purposes on January 22, 2024 as if such split occurred as of the earliest period presented.

Overview

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, we have not imported any Bidi Sticks and currently do not generate any revenue from the sale
of Bidi St