Tue, Jun 18, 9:15 PM (125 days ago)
Kaival Brands Innovations Group, Inc. reported its financial results for the quarter ending April 30, 2024. The company’s revenues decreased to $2.2 million from $3.0 million in the same period last year, primarily due to a reduction in the number of sticks sold. Despite this, gross profit improved to $0.5 million from a loss of $0.1 million, driven by fewer customer credits and reduced cost of revenue. Operating expenses also decreased significantly to $1.8 million from $3.8 million, mainly due to lower advertising and stock option expenses. Consequently, net loss narrowed to $1.5 million from $4.0 million. For the six months ending April 30, 2024, revenues were relatively stable at $5.4 million compared to $5.5 million in the prior year. Gross profit increased to $1.7 million from $0.4 million, while operating expenses decreased to $4.7 million from $7.4 million, leading to a reduced net loss of $3.6 million from $7.0 million. The company’s liquidity remains a concern, with a working capital deficit of $1.4 million and total cash of $0.5 million as of April 30, 2024. Kaival is focused on increasing sales and securing additional funding to support operations.