Company: KAVL
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001731122-25-000842
Chunk: 6

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-06-10
Form: 10-Q
Item: Item 1
Chunk 6
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    Customer refunds due 
     —  
     (60,947)
  
    Operating lease obligations 
     (98,756) 
     (89,183)
  
    Net cash (used in) provided by operating activities 
     (1,483,982) 
     715,391 

    CASH FLOWS FROM INVESTING ACTIVITIES 

    Net cash used in investing activities 
     —  
     — 

    CASH FLOWS FROM FINANCING ACTIVITIES 

    Proceeds from loans payable 
     —  
     1,106,731 
  
    Payments on loans payable 
     (207,616) 
     (1,867,698)
  
    Payment on preferred dividends 
     (405,000) 
     — 
  
    Net cash used in financing activities 
     (612,616) 
     (760,967)

    Net change in cash 
     (2,096,598) 
     (45,576)
  
    Beginning cash balance 
     3,902,300  
     533,659 
  
    Ending cash balance 
    $1,805,702  
    $488,083 

    SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: 

    Interest paid 
    $8,183  
    $426,458 
  
    Income taxes paid 
    $—  
    $— 

    NON-CASH TRANSACTIONS 

    Preferred stock dividend 
    $22,500  
    $135,000 

 The accompanying notes are an integral part of
these unaudited consolidated financial statements.

F-5

KAIVAL BRANDS INNOVATIONS GROUP, INC. 

 Notes to Unaudited Consolidated Financial
Statements

Note 1 – Organization and Description of Business

Kaival Brands Innovations Group, Inc. (the “Company,”
the “Registrant,” “we,” “us,” or “our”), formerly known as Quick Start Holdings, Inc.,
was incorporated on September 4, 2018, in the State of Delaware.

Description of Business

On March 9, 2020, the Company entered into an exclusive
distribution agreement (the “Distribution Agreement”) of certain electronic nicotine delivery systems (“ENDS”)
and related components (the “Products”) with Bidi