Company: KAVL
Filing Date: 2025-06-16
Form Type: S-3
Source: 0001731122-25-000885
Chunk: 18

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-06-16
Form: S-3
Chunk 18
---
 the BIDI® Stick, were derived from the following customers:
(i) QuikTrip Corporation generated approximately 21%, (ii) GPM Investments generated approximately 12%, and (iii) FAVS Business, LLC generated
approximately 11%.

For the year ended October 31, 2023, a substantial
portion of our revenues from the sale of Products, solely consisting of the BIDI® Stick, were derived from the following customers:
(i) GPM Investments generated approximately 16%, (ii) H.T. Hackney Co generated approximately 15%, (iii) FAVS Business, LLC generated
approximately 15%, (iv) C Store Master generated approximately 14%, and (v) QuikTrip Corporation generated approximately 12%.

<div align='center'>7</div>

Environment and Government Regulation Related to our Operations

Because we are only a wholesale distributor of products,
namely the BIDI® Stick, we are only subject to Federal, state, and international laws pertaining to a distributor, not a manufacturer,
of ENDS products.

Our business is dependent entirely on the resale of
products provided by Bidi; thus, there is a significant risk that our business could be materially adversely affected if Bidi, as the
manufacturer, does not properly abide by any Federal, state, or international laws that regulate ENDS products. Any lapse in production
or availability of products from Bidi would hamper our ability to operate as we would be limited in our ability to supply our customers
if our inventory ran low or ceased to exist entirely.

As a manufacturer of ENDS products, Bidi is responsible
for abiding by and following various rules and regulations pertaining to the manufacturing of the ENDS products we sell and any lapse
in abiding by any pertinent rules and regulations may negatively impact our ability to operate. As a distributor, we are also subject
to various rules and regulations. Some of the below may not directly apply to us at this time due to the nature of our present operations.
These rules and regulations include, but are not limited to, the following:

FDA and Related Regulations Relating to ENDS Products

Effective August 8, 2016, the FDA’s regulatory
authority under The Family Smoking Prevention and Tobacco Control Act was extended to all remaining tobacco products, including: (i) certain
“new generation” products (such as electronic cigarettes, vaporizers, and e-liquids) and their components or parts (such as
tanks, coils, and batteries