Company: KAVL
Filing Date: 2025-03-17
Form Type: 10-Q
Source: 0001731122-25-000399
Chunk: 87

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-03-17
Form: 10-Q
Item: Item 2
Chunk 87
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About Market Risk.

As a “smaller reporting company” as defined
by Item 10 of Regulation S-K, the Company is not required to provide the information required by this Item.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain “disclosure controls and procedures,”
as such term is defined in Rule 13a-15e and Rule 15d-15(e) under the Exchange Act that are designed to ensure that information required
to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified
in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our President
& Chief Operating Officer and our Interim Chief Financial Officer to allow for timely decisions regarding required disclosure.

As of January 31, 2025,
the end of the period covered by this Report, we carried out an evaluation under the supervision and with the participation of members
of our management, including our President & Chief Operating Officer and our Interim Chief Financial Officer, of the effectiveness
of the design and the operation of our disclosure controls and procedures pursuant to Rule 13a-15(b) of the Exchange Act. Our management
has concluded, based on their evaluation, that the disclosure controls and procedures were not effective as of the end of the period covered
by this Report due to material weaknesses in our internal control over financial reporting as disclosed in our Annual Report on Form 10K
for the year ended October 31, 2024.  

7

Changes in Internal Control
over Financial Reporting

There have
been no changes in our internal control over financial reporting (as that term is defined in Rules 13(a)-15(f) and 15(d)-15(f) of
the Exchange Act) that have occurred during the first quarter ended January 31, 2025 that have materially affected, or are
reasonably likely to materially affect, our internal control over financial reporting.

PART II OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we may become party to litigation
or other legal proceedings that we consider to be a part of the ordinary course of our business. We are not currently involved in legal
proceedings that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition, or results
of operations. To the best of our knowledge, no adverse legal activity is anticipated or threatened.

While we are not a