Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 494

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 3
Chunk 494
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observable.

    F-15

Fair value estimates discussed herein are based
upon certain market assumptions and pertinent information available to management as of October 31, 2024 and 2023. The respective
carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of
these instruments. These financial instruments include cash, accounts receivable, accounts payable, accrued expenses and
loans payable. As of October 31, 2024, and 2023, 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 is continuing
to evaluate the impact of adopting this new guidance but does not expect it to have a material impact on the Company’s financial
statements.

Note 3 – Going Concern

The accompanying consolidated financial statements
of the Company are prepared in accordance with U.S. GAAP applicable to a going concern, which cont