Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 37

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1
Chunk 37
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 Bidi, potential alterations to this arrangement, including a potential acquisition by us of all or a portion of the intellectual
property owned by Bidi and related to Bidi products. Should we pursue such a transaction, it would be a “related party transaction,”
as defined by the listing rules of Nasdaq and, thus, subject to the review of the Audit Committee of our Board (or, if deemed appropriate,
a special Board committee comprised of disinterested directors). Further, should we undertake such a transaction, then we would become
responsible to respond if a third-party challenged Bidi’s patents, or infringed upon such rights, in which case our business could
be materially adversely affected.

We have a limited operating history, and our
historical operating and financial results may not be indicative of future performance, which, along with the relative early stage of
the ENDS industry, makes it difficult to predict our future business prospects and financial performance. 

Our current business model is relatively new, and
so business and prospects may be difficult to evaluate. Our limited operating history makes it difficult to evaluate both our operating
history and our future potential. We have yet to demonstrate a consistent ability to generate revenue, and are still subject to many of
the risks common to early-stage companies operating in the nicotine and non-nicotine delivery system products sector, including the uncertainty
as to our ability to implement our business plan, market acceptance of business plan, under-capitalization, cash shortages, limitations
with respect to personnel, financing and other resources and uncertainty of our ability to generate revenues. There is therefore a significant
risk that our activities will not result in any material revenues or profit, and the likelihood of our business viability and long-term
prospects must be considered in light of the stage of our development. There can be no assurance that we will be able to fulfill our stated
business strategy and plans, or that financial, technological, market, or other limitations may force us to modify, alter, significantly
delay, or significantly impede the implementation of such plans. We have insufficient results of operations in our current business model
for investors to use to identify historical trends. Investors should consider our prospects considering the risk, expenses and difficulties
we will encounter as an early-stage company. Our revenue and income potential is unproven and our business model is continually evolving.
We are therefore subject to the risk that we will be unable to address these risks, and our inability to address these risks could lead
to the failure of our