Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 78

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1
Chunk 78
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 and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we
engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal
control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures
to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ MaloneBailey, LLP

www.malonebailey.com

We have served as the Company's auditor since
2018.

Houston, Texas

February 7, 2025

F-2

Kaival Brands Innovations Group, Inc.

Consolidated Balance Sheets

October
31, 2024
 
October
31, 2023

ASSETS

CURRENT
ASSETS

Cash
 
$
3,902,300

$
533,659

Accounts
receivable, net

263,571

1,869,276

Inventories,
net

—

4,071,824

Prepaid
expenses

344,312

430,668

Total current
assets

4,510,183

6,905,427

Fixed assets,
net

2,146

2,842

Intangible
assets, net

10,681,911

11,468,309

Right
of use asset - operating lease

810,036

1,008,428

TOTAL
ASSETS
 
$
16,004,276

$
19,385,006

LIABILITIES
AND STOCKHOLDERS’ EQUITY

CURRENT
LIABILITIES

Accounts
payable
 
$
57,496

$
374,332

Accounts
payable - related