Kaival Brands(KAVL) - 2021 Q1 - Quarterly Report

Financial Performance - Revenues for Q1 fiscal year 2021 were approximately $37.4 million, compared to $0 in the same period of the prior fiscal year[87]. - Gross profit for Q1 fiscal year 2021 was approximately $4.8 million, with total cost of revenue at approximately $32.6 million[88]. - Total operating expenses for Q1 fiscal year 2021 were approximately $4.4 million, significantly higher than approximately $12,900 in Q1 fiscal year 2020[89]. - Net income for Q1 fiscal year 2021 was approximately $311,500, compared to a net loss of approximately $13,000 in Q1 fiscal year 2020[91]. Cash Flow and Working Capital - Working capital as of January 31, 2021, was approximately $5.8 million, with total cash of approximately $2.0 million[84]. - Cash flow used in operations was approximately $5.4 million for Q1 fiscal year 2021, a decrease from $285 provided by operations in Q1 fiscal year 2020[86]. - The company anticipates continued improvement in cash flows based on minimum purchase obligations from sub-distributors[86]. - The company has no known demands or commitments that will materially affect current liquidity as of January 31, 2021[83]. Future Outlook - The company expects future operating expenses to continue to increase alongside sales growth[89]. - The company is actively monitoring the potential impacts of COVID-19 on its financial condition and operations[67]. Regulatory Classification - The company is classified as an "emerging growth company" under the JOBS Act, which provides exemptions from certain financial disclosure and governance requirements for up to five years[96]. - As a "smaller reporting company," the company is not required to provide detailed market risk disclosures as per Regulation S-K[97].