Company: KAVL
Filing Date: 2025-03-17
Form Type: 10-Q
Source: 0001731122-25-000399
Chunk: 18

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-03-17
Form: 10-Q
Item: Item 1
Chunk 18
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 pay Bidi license fees equivalent to 50% of the adjusted earned royalty payments, after any offsets
due to jointly agreed costs such development costs incurred for entry to specific international markets. During the three months
ended January 31, 2025, the Company paid license fees of  $108,215 to Bidi. As of January 31, 2025 and October 31,
2024, $81,429 and 131,683, respectively, of license fees are owed to Bidi.

As of January 31, 2025, amounts receivable from
PMPSA in connection with the PMI License Agreement totaled $206,857 of which $206,857 and $0 pertain
to royalties and reimbursement of certain non-recurring engineering costs, respectively. As of October 31, 2024, amounts receivable
from PMPSA in connection with the PMI License Agreement totaled $263,367 of which $263,367 and $0 pertain to royalties and reimbursement of certain
non-recurring engineering costs, respectively.

Net Loss Per Share

Basic net loss per share is computed by dividing net
loss available to common stockholders by the weighted average number of common shares outstanding during the period, without consideration
of potential common stock equivalents.

Diluted net loss per share is calculated by dividing
net loss available to common stockholders by the weighted average number of common stock outstanding plus common share equivalents
from conversion of dilutive stock options and warrants using the treasury method and preferred stock using the if-converted method, except
when antidilutive. In the event of a net loss, the effects of all potentially dilutive shares are excluded from the diluted net loss per
share calculation as their inclusion would be antidilutive.

Concentration of Revenues and Accounts Receivable

No revenue concentration  
from the sale of Products existed for the three months ended January 31, 2025.  

For the three months ended January 31, 2024, (i) 17%
or $511,192 of the revenue from the sale of Products, solely consisting of the BIDI® Stick, was generated from QuikTrip
Corporation, (ii) 16% or $474,378 of the revenue from the sale of the Products was generated from GPM Investments, LLC, and (iii) approximately
14% or $417,740 of the revenue from the sale of Products, solely consisting of the BIDI Stick, was generated