Company: KAVL
Filing Date: 2025-09-16
Form Type: 10-Q
Source: 0001731122-25-001266
Chunk: 61

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-09-16
Form: 10-Q
Item: Item 2
Chunk 61
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This Management’s Discussion and Analysis
of Financial Condition and Results of Operations is designed to provide a reader of the financial statements with a narrative report on
our financial condition, results of operations, and liquidity. This discussion and analysis should be read in conjunction with the unaudited
financial statements and notes thereto for the nine months ended July 31, 2025, included under Item 1 – Financial Statements in
this Report and our audited financial statements and notes thereto for the year ended October 31, 2024, contained in the 2024 Annual Report.
The following discussion contains forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives,
expectations, and intentions. Our actual results could differ materially from those discussed in the forward-looking statements. Please
also see the cautionary language at the beginning of this Report regarding forward-looking statements.

Overview

We are engaged in the sale,
marketing and distribution of electronic nicotine delivery system (“ENDS”) products, also known as “e-cigarettes”,
in a variety of flavors.   Until October of 2024, our primary source of revenue has been the Bidi Stick as we sold our inventory
on hand. However, on June 11, 2024, RAI Strategic Holdings, Inc., R.J. Reynolds Vapor Company, R.J. Reynolds Tobacco Company, and RAI
Services Company (collectively, the “RJ Reynolds Entities”) filed a patent infringement complaint with the International Trade
Commission (the “ITC”) against Bidi, us, and forty (40) other respondents (the “ITC Complaint”) pursuant to Section
337 of the Tariff Act of 1930, as amended. Specifically, the ITC Complaint alleges that one or more components or elements of the Bidi
Stick infringe U.S. Patent No. 11,925,202, which is owned by one of the RJ Reynolds Entities. The ITC Complaint requests the ITC grant:
(a) temporary and permanent limited exclusion orders pursuant to Section 337(e) of the Tariff Act of 1930, as amended, which would prohibit
the importation of the Bidi Stick in the United States; and (b) issue temporary and permanent cease and desist orders pursuant to 337(f)
of the Tariff Act of 1930, as amended, which would prohibit the sale and distribution of the Bidi Stick in the United States. No damages
are recoverable in the proceedings before the ITC