Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 311

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1B
Chunk 311
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 computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the
period, without consideration of potential common stock equivalents.

Diluted net loss per share
is calculated by dividing net loss available to common stockholders by the weighted average number of common stock outstanding plus common
share equivalents from conversion of dilutive stock options and warrants using the treasury method and preferred stock using the if-converted
method, except when antidilutive. In the event of a net loss, the effects of all potentially dilutive shares are excluded from the diluted
net loss per share calculation as their inclusion would be antidilutive.

As
of October 31, 2024, and 2023, there were 5,944,276 and 691,654, respectively, units of common stock equivalents that consists of options
and warrants units, as well as 357,120 shares issuable upon preferred stock conversions, that were excluded from the current and prior
period diluted loss per share calculation as their effect is anti-dilutive. 

Concentration of Revenues and Accounts Receivable

For the year then ended October 31, 2024, (i) 21%
or $1,236,491 of the revenue from the sale of Products, solely consisting of the BIDI® Stick, was generated from QuikTrip Corporation,
(ii) 12% or $678,562 was generated from GPM Investments, LLC, and (iii) 11% or $655,583 was generated from FAVS Business, LLC. On May
2, 2024, QuikTrip Corporation terminated its consignment arrangement with the Company.   

For the year then ended October 31, 2023, (i) 16%
or $1,986,970 of the revenue from the sale of Products, solely consisting of the BIDI® Stick, was generated from GPM Investments,
LLC, (ii) 15% or $1,842,511 was generated from H.T. Hackney Co, (iii) 15% or $1,817,310 was generated from FAVS Business, LLC, (iv) 14%
or $1,759,563 was generated from C Store Master, and (v) approximately 12% or $1,501,439 was generated from QuikTrip Corporation.

QuikTrip Corporation with an outstanding balance of
$205 accounted for 100% of the total accounts receivable from