Company: KAVL
Filing Date: 2025-09-16
Form Type: 10-Q
Source: 0001731122-25-001266
Chunk: 90

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-09-16
Form: 10-Q
Item: Item 8
Chunk 90
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 of these
instruments. These financial instruments include cash, accounts receivable, accounts payable, and accrued expenses. As of July 31, 2025
and October 31, 2024, the Company did not have any financial assets or liabilities measured and recorded at fair value on a recurring
basis.

Recent Accounting Pronouncements – Not Yet
Adopted

In December 2023, the Financial Accounting Standards
Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740) - Improvements
to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires additional disclosures reconciling the rates of different
categories of income tax (i.e. federal, state, foreign, etc.) and a disaggregation of taxes paid and refunded. ASU 2023-09 is effective
for fiscal years beginning after December 15, 2024, and for interim periods in fiscal years beginning after December 15, 2025, although
early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its income tax disclosures.

 In November 2023, the FASB issued
ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which is intended to improve
reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The purpose of
the amendment is to enable investors to better understand an entity’s overall performance and assess potential future cash flows.
The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after
December 15, 2024, with early adoption permitted. The guidance is to be applied retrospectively to all prior periods presented in the
financial statements. The Company does not expect that the adoption of this guidance will have a material impact on the Company’s
financial statements. 

Note 3 – Going Concern

The accompanying unaudited interim consolidated financial
statements of the Company are prepared in accordance with U.S. GAAP applicable to a going concern, which contemplates realization of assets
and the satisfaction of liabilities in the normal course of business within one year after the date the consolidated financial statements
are issued. In accordance with Financial Accounting Standards Board (or FASB), Accounting Standards Update (or ASU) No. 2014-15, Presentation
of Financial Statements –