Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 17

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1
Chunk 17
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 was terminated in February 2024.

Other Potential Product Offerings & Opportunities

In May 2023 we acquired 19 existing and 47 pending
patents with novel technologies related to vaporization and inhalation technologies from GoFire. The GoFire patent portfolio includes
novel technologies across extrusion dose control, product preservation, tracking and tracing usage, multiple modalities (i.e., different
methods of vaporizing) and child safety. The patents and patent applications cover territories including the United States, Australia,
Canada, China, the EPO (European Patent Organization), Israel, Japan, Mexico, New Zealand and South Korea. The portfolio also includes
a proprietary mobile device software application that is used in conjunction with certain patents in the portfolio.

9

We expect to continue seeking third-party licensing opportunities in the cannabis,
hemp/CBD, nicotine, nutraceutical and pharmaceutical markets, as a means of monetizing our patents. Longer term, we believe we can utilize
the acquired patents to create innovative and market-disruptive products for its growing base of adult consumers, including patent protected
vaporizer devices and related hardware and software applications.

As described above, we hope to generate revenue from
this acquired intellectual property via licensing and product development activities. However, there can be no assurance that we will
be able to implement this strategy. 

Concentrations

Concentration of Purchases and Other Receivable -
Related Party:

For the year ended
October 31, 2024, 100% of the inventories of Products, consisting solely of the BIDI® Stick, were purchased from Bidi, a related
party company that is owned by KMDD Trust, in the amount of approximately $0.3 million, as compared to $12.8 million for
the year ended October 31, 2023.

On October 31, 2024, we had a related party receivable
balance of zero.   As of October 31, 2024, the related party accounts payable balance was $131,683.

On October 31, 2023, a credit of $2,954,470 was applied
from the related-party receivable balance to the related party accounts payable balance. After this was applied, we had no related party
receivable balance. As of October 31, 2023, the related party accounts payable balance was $1,521,491. In fiscal year 2023, such inventories
accounted for