Kaival Brands Innovations Group, Inc.

Kaival Brands Innovations Group, Inc. is involved in the sale, marketing, and distribution of electronic nicotine delivery system (ENDS) products, also known as e-cigarettes, offered in various flavors. Until October of 2024, the company's main revenue source was the Bidi Stick, as it sold its existing inventory. On June 11, 2024, RAI Strategic Holdings, Inc., R.J. Reynolds Vapor Company, R.J. Reynolds Tobacco Company, and RAI Services Company (collectively, the "RJ Reynolds Entities") filed a patent infringement complaint with the International Trade Commission (the "ITC") against Bidi, Kaival, and forty (40) other respondents. This complaint, filed under Section 337 of the Tariff Act of 1930, as amended, alleges that one or more components or elements of the Bidi Stick infringe U.S. Patent No. 11,925,202, owned by one of the RJ Reynolds Entities. The ITC Complaint seeks temporary and permanent limited exclusion orders to prohibit the importation of the Bidi Stick into the United States, and temporary and permanent cease and desist orders to prohibit its sale and distribution within the United States. No damages can be recovered in these ITC proceedings. All historical share and per-share amounts in the company's consolidated financial statements and other financial information reflect a 1-for-21 reverse stock split of its Common Stock, effective January 22, 2024, as if it occurred from the earliest period presented.