Kaival Brands(KAVL) - 2019 Q2 - Quarterly Report

Financial Position - As of April 30, 2019, the company had no assets and current liabilities totaling $9,025, which consisted of accrued expenses[72] - The company has negative working capital and a stockholder deficit, raising substantial doubt about its ability to continue as a going concern[71] - The company has no known demands or commitments that would materially affect its liquidity as of April 30, 2019[72] Financial Performance - The company reported a net loss of $4,225 for the three months and $18,185 for the six months ended April 30, 2019, attributed to general and administrative expenses[75] - The company has not generated any revenue since its inception on September 4, 2018, and is unlikely to do so without identifying suitable business opportunities[74] Future Costs and Funding - The company anticipates incurring costs of approximately $15,000 for filing Exchange Act reports over the next 12 months[68] - The company may incur expenses between $10,000 and $20,000 for legal and audit fees related to potential mergers or acquisitions[69] - The company is entirely reliant on cash contributions from its officers and directors to cover expenses, with no funding commitments currently in place[67] Business Opportunities - The company is exploring business opportunities in the electronic cigarettes, vaporizers, and CBD industries, leveraging management's prior experience[62] - The company has not entered into any definitive agreements regarding business opportunities as of the report date[62] Regulatory Status - The company is classified as an "emerging growth company," allowing it to be exempt from certain financial disclosure and governance requirements for up to five years under the JOBS Act[79] - The company has elected to use the extended transition period for complying with new or revised accounting standards, which may affect the comparability of its financial statements with public companies[79] - As a "smaller reporting company," the company is not required to provide specific market risk disclosures[80]