Company: KAVL
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001731122-25-000842
Chunk: 41

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-06-10
Form: 10-Q
Item: Item 1
Chunk 41
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 pre-tax loss of approximately $1.5 million for the second quarter of fiscal year 2024.

Net Loss:

As a result of the
items noted above, the net loss for the second quarter of fiscal year 2025 was approximately $2.0 million, or $0.17 basic and diluted
net loss per share, compared to a net loss of approximately $1.5 million, or $0.56 basic and diluted net loss per share, for the
second quarter of fiscal year 2024. The increase in the net loss for the second quarter of fiscal year 2025, as compared to the
second quarter of fiscal year 2024, is primarily attributable to the increase of stock-based compensation, loss on ROU asset and lower
sales revenue.

Six months ended April 30, 2025, compared to six
months ended April 30, 2024

Revenues:

Revenues for the six months ended April 30, 2025,
were approximately $0.2 million, compared to $5.4 million for the six months ended April 30, 2024. Revenues decreased during the six months
ended April 30, 2025, compared to the six months ended April 30, 2024, primarily due to a decrease in product sales to customers.

Cost of Revenue and Gross Profit:

Gross profit for the six months ended April 30, 2025,
was approximately $0.2 million, compared to gross profit of approximately $1.7 million for the six months ended April 30, 2024. Total
cost of revenue was approximately zero million for the six months ended April 30, 2025, compared to $3.7 million for the six months ended
April 30, 2024. The decrease in gross profit of approximately $1.5 million for the six months ended April 30, 2025 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