Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 556

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 4
Chunk 556
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4, as compared to 2,721,080 on October 31, 2023. The increase in the weighted-average shares in fiscal year 2024 was
primarily attributable to the issuance of  5,723,916 shares of Common Stock.  

Concentrations:

Financial instruments, which potentially subject
us to concentrations of credit risk, consist primarily of purchases of inventories, accounts payable, accounts receivable, and revenue.

Concentration of Purchases and Accounts Payable-
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, in the amount
                                            of $0.3 million, as compared to $12.8 million for the year ended October 31, 2023.  

42

As of October 31, 2024, we had no related party receivable
balance. As of October 31, 2024, there was $131,683 of related party accounts payable. On October 31, 2023, a credit of $3.0 million
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. As of October 31, 2023, the related party accounts payable balance related to
purchases of inventories was $1.5 million.

Concentration of Revenues and Accounts Receivable:

For the fiscal year 2024, (i) approximately 21% of the revenue from the sale
of Products, solely consisting of the BIDI® Stick, was generated from QuikTrip Corporation in the amount of approximately
$1.2 million, (ii) approximately 12% from GPM Investments in the amount of $0.7 million, and (iii) approximately 11% from FAVS Business,
LLC in the amount of $0.7 million. For the fiscal year 2023, (i) approximately 16% of the revenue from the sale of Products, solely consisting
of the BIDI® Stick, was generated from GPM Investments, LLC in the amount of approximately $2.0 million, (ii) approximately
15% from H.T. Hackney Co in the amount of $1.8 million, (iii) approximately 15