Company: KAVL
Filing Date: 2025-09-16
Form Type: 10-Q
Source: 0001731122-25-001266
Chunk: 35

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-09-16
Form: 10-Q
Item: Item 1
Chunk 35
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 is still ongoing negotiation between Just Pick, LLC and the Company regarding the settlement
of the remaining reported office lease liability.

Note 9 – Subsequent
Events

On September 11, 2025, Kaival and Delta entered into a Business Combination
Termination and Release Agreement (the “Termination Agreement”) pursuant to Section 10.1(a) of the Merger Agreement (the “Merger
Agreement’) among the Company, Delta, Delta Corp Holdings Limited, a Cayman Islands exempted company, KAVL Merger Sub Inc. and Delta
Corp Cayman Limited. 

Pursuant to the Termination
Agreement, the Company and Delta mutually terminated the Merger Agreement and all agreements between the parties that are ancillary thereto
and Delta waived any and all claims against the other party that in any way directly and/or indirectly arise out of, are based upon, or
are in connection with the Merger Agreement any agreements ancillary thereto.

F-19

Item 2. Management’s Discussion and Analysis of Financial Condition
and Results of Operations.

This Management’s Discussion and Analysis
of Financial Condition and Results of Operations is designed to provide a reader of the financial statements with a narrative report on
our financial condition, results of operations, and liquidity. This discussion and analysis should be read in conjunction with the unaudited
financial statements and notes thereto for the nine months ended July 31, 2025, included under Item 1 – Financial Statements in
this Report and our audited financial statements and notes thereto for the year ended October 31, 2024, contained in the 2024 Annual Report.
The following discussion contains forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives,
expectations, and intentions. Our actual results could differ materially from those discussed in the forward-looking statements. Please
also see the cautionary language at the beginning of this Report regarding forward-looking statements.

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 flavors.   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