Kaival Brands Innovations Group, Inc.

We believe we will not have sufficient cash on hand to support our operations for the next twelve months from the date of filing this report. As of July 31, 2026, we had a working capital deficit of $265,407 and total cash of $133,221. As discussed above, this condition and other factors raise substantial doubt regarding our ability to continue as a going concern.

We will need to raise additional capital to fund our operations. There can be no assurance that capital will be available to us on reasonable terms, if at all. Should capital not be available on acceptable terms, we may be required to take other actions to preserve liquidity. These matters are subject to numerous risks and uncertainties, including market conditions, regulatory considerations, and other factors beyond the Company’s control.

Cash Flows:

Net cash flows used in operations was approximately $1.3 million for the first nine months of fiscal year 2026, compared to $2.0 million cash flows used by operations for the first nine months of fiscal year 2025. The decrease in cash flows used in operations for the first nine months of fiscal year 2026 compared to the first nine months of fiscal year 2025 was primarily due to the decrease of accrued expenses, depreciation and amortization, and stock- based compensation.

Net cash flows provided by financing activities was approximately $1.0 million for the first nine months of fiscal year 2026, compared to cash flows used in financing activities of approximately $0.6 million for the first nine months of fiscal year 2025. The cash provided by financing activities for the first nine months of fiscal year 2026 consisted primarily of proceed from the issuance of Common Stock.