Company: KAVL
Filing Date: 2025-09-16
Form Type: 10-Q
Source: 0001731122-25-001266
Chunk: 7

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-09-16
Form: 10-Q
Item: Item 1
Chunk 7
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(Unaudited)

    For the Nine Months Ended 
    For the Nine Months Ended

    July 31, 2025 
    July 31, 2024
  
    CASH FLOWS FROM OPERATING ACTIVITIES 

    Net loss 
    $(6,618,088) 
    $(5,212,725)

    Adjustments to reconcile net loss to net cash provided by (used in) operating activities: 

    Stock based compensation 
     2,873,750  
     62,000 
  
    Depreciation and amortization 
     590,154  
     590,319 
  
    Make-whole provision 
     39,283  
     — 
  
    Amortization of debt discount 
     —  
     163,064 
  
    Loss on extinguishment of debt 
     —  
     98,432 
  
    Loss on ROU Asset 
     707,626  
     — 
  
    Loss on disposal of furniture and equipment 
     1,798  
     — 
  
    Stock options expense 
     36,192  
     76,932 
  
    Bad debt expense 
     —  
     1,925 
  
    Reserve for credit losses 
     —  
     203,382 
  
    ROU operating lease expense 
     102,410  
     148,012 
  
    Write-off of inventory 
     —  
     57,643 

    Changes in current assets and liabilities: 

    Accounts receivable 
     143,571  
     1,141,786 
  
    Prepaid expenses 
     322,229  
     354,330 
  
    Inventory 
     —  
     3,813,817 
  
    Accounts payable 
     140,579  
     (300,998)
  
    Accounts payable - related party 
     (71,683) 
     (991,817)
  
    Accrued expenses 
     (189,821) 
     (18,579)
  
    Customer refunds due 
     —  
     69,312 
  
    Operating lease obligations 
     (98,758) 
     (136,014)
  
    Net cash (used in) provided by operating activities 
     (2,