Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 47

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1
Chunk 47
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 on smoking in public and workplaces and, in some instances, in private places and outdoors;

    ●
    elimination of duty-free
    allowances for travelers; and

    ●
    encouraging litigation
    against tobacco companies.

Our business may be damaged by events outside
of our own or Bidi’s control, such as the impact of epidemics, political changes, or natural disasters. 

Our business could be adversely affected by the effects
of epidemics, political changes, wars or natural disasters. World economies and capital markets have been adversely impacted by COVID-19
and its variants, the Ukraine-Russia conflict, the recent eruption of hostilities in Israel and Gaza and political instability in the
United States and elsewhere. The lasting impacts of these matters on the United States and broader global economy, including supply chain
disruption, may have a significant continuing negative effect on our company and may continue to materially impact our company, our ability
to conduct business, our financial condition and results of operations.

26

Reliance on information technology means a significant
disruption could affect our communications and operations. 

We increasingly rely on information technology systems
for our internal communications, controls, reporting and relations with customers and suppliers, and information technology is becoming
a significantly important tool for our sales staff. In addition, our reliance on information technology exposes us to cyber-security risks,
which could have a material adverse effect on our ability to compete. Security and privacy breaches may expose us to liability and cause
us to lose customers or may disrupt our relationships and ongoing transactions with other entities with whom we contract throughout our
network. The failure of our information systems to function as intended, or the penetration by outside parties’ intent on disrupting
business processes, could result in significant costs, loss of revenue, assets or personal or other sensitive data and reputational harm.

Security and privacy breaches may expose us
to liability and cause us to lose customers. 

Federal and state laws require us to safeguard our
wholesalers’, retailers’, and consumers’ financial information, including credit information. Although we have established
security procedures to protect against identity theft and the theft of our customers’ financial information, our security and testing
measures may not prevent security breaches. We cannot guarantee that a future breach will not result in material liability or otherwise
harm to our business. In the event of any such breach, we may be required to notify governmental authorities or consumers under breach
disclosure laws, indemnify consumers, or other third parties for losses resulting from the