Company: KAVL
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001731122-25-000842
Chunk: 81

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-06-10
Form: 10-Q
Item: Item 8
Chunk 81
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5 compared to the six
months ended April 30, 2024 is due to the reduction of product sales to customers during the six months April 30, 2025.

Operating Expenses:

Total
                                            operating expenses were approximately $6.3 million for the six months ended April 30, 2025,
                                            compared to approximately $4.7 million for the six months ended April 30, 2024. For the six
                                            months ended April 30, 2025, operating expenses consisted primarily of stock option expense
                                            of $34 thousand, professional fees totaling approximately $4.1 million, loss on ROU asset
                                            of $0.7 million, and all other general and administrative expenses of approximately $1.5
                                            million. General and administrative expenses during the six months ended April 30, 2025,
                                            consisted primarily of salaries and wages, insurance, lease expense, project expenses, banking
                                            fees, business fees and state and franchise taxes.

5

For the six months ended April 30, 2024, operating
expenses were approximately $4.7 million, consisting primarily of advertising and promotion fees of approximately $0.7 million, stock
option expense of $21 thousand, professional fees totaling approximately $1.3 million, and all other general and administrative expenses
of approximately $2.7 million. General and administrative expenses during the six months ended April 30, 2024, consisted primarily of
salaries and wages, insurance, banking fees, business fees, and other service fees.

Income Taxes:

During the six months ended April 30, 2025, we did not accrue a tax provision
for income taxes, due to the pre-tax loss of approximately $6.1 million for the six months ended April 30, 2025. Similarly, we did
not accrue a tax provision for income taxes during the six months ended April 30, 2024, due to the pre-tax loss of approximately $3.6
million for the six months ended April 30, 2024.

Net Loss:

The net loss for
the first six months ended April 30, 2025, was approximately $6.1 million, or $0.58 basic and diluted net loss per share, compared
to net loss for the six months ended April 30, 2024, which was approximately $3.6 million, or $1.32 basic and diluted net loss per
share.