Company: KAVL
Filing Date: 2025-09-16
Form Type: 10-Q
Source: 0001731122-25-001266
Chunk: 105

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-09-16
Form: 10-Q
Item: Item 8
Chunk 105
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 issued
and outstanding shares of common stock, to KH, and KH paid GMRZ consideration in the amount set forth in the Share Purchase Agreement.
The consummation of the transactions contemplated by the Share Purchase Agreement resulted in a change in control, with KH becoming our
largest controlling stockholder. KDMM Trust I, the trustee of which is the widow of Kaival’s former Chief Executive Officer and
director, Nirajkumar Patel, is the sole voting member of KH.

Other Potential Product Offerings & Opportunities

In May 2023, we acquired 19 existing and 47 pending
patents with novel technologies related to vaporization and inhalation technologies from GoFire. The GoFire patent portfolio includes
novel technologies across extrusion dose control, product preservation, tracking and tracing usage, multiple modalities (i.e., different
methods of vaporizing) and child safety. The patents and patent applications cover territories including the United States, Australia,
Canada, China, the EPO (European Patent Organization), Israel, Japan, Mexico, New Zealand and South Korea. The portfolio also includes
a proprietary mobile device software application that is used in conjunction with certain patents in the portfolio.

We expect to continue seeking third-party licensing
opportunities in the cannabis, hemp/CBD, nicotine, nutraceutical and pharmaceutical markets, as a means of monetizing our patents. However,
there can be no assurance that we will be able to implement this strategy.

Going Concern

The accompanying unaudited interim consolidated financial
statements of the Company are prepared in accordance with U.S. GAAP applicable to a going concern, which contemplates realization of assets
and the satisfaction of liabilities in the normal course of business within one year after the date the consolidated financial statements
are issued.

In accordance with Financial Accounting Standards
Board (“FASB”), Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements –
Going Concern (Subtopic 205-40), the Company’s management evaluates whether there are conditions or events, considered in aggregate,
that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the
accompanying financial statements are issued.

The Company has incurred recurring losses and negative
cash flows from operations for nine months ended July 31, 2025. The Company will need significant additional funds to satisfy its outstanding
payables, fund its working capital, and fully implement its business plan. In addition, the Company