Kaival Brands Reports Fiscal Year 2022 Financial Results
Kaival Brands Innovations Group recently released their 2022 performance report, stating that their Q4 revenue as of October 31, 2022 is $3 million, which is significantly lower than the $100 billion revenue earned in the Q4 of the previous fiscal year. The company's total annual revenue for the fiscal year is around $12.8 million, which is a drop from the $58.8 million revenue in the 2021 fiscal year.
Kaival Brands is attributing its annual decline to the marketing rejection order from the US Food and Drug Administration (FDA) and increased competition overall.
It is reported that Kaival Brands is the exclusive US agent for the electronic cigarette brand Bidi Vapor. In August 2022, Bidi Vapor's PMTA was rejected by the FDA.
In its financial report, Kaival Brands predicts that following the 11th Circuit Court's decision in August to cancel the FDA's MDO, Kaival Brands will actively restart sales efforts and expects sales of all BIDI Sticks to improve, with the results expected to show in the second quarter of the 2023 fiscal year (although sales volume is still subject to the FDA's enforcement discretion).
Kaival Brands has also projected that if the FDA begins to enforce against the illegal sales or synthetic nicotine e-cigarette products, the market for compliant and legal e-cigarette products (such as BIDI Stick) may increase in demand.
According to the 2022 Q3 financial report from Kaival Brands, the company's subsidiary, Kaival Brands International (KBI), signed a licensing agreement with Philip Morris Products (PMP) to develop and distribute electronic cigarettes outside the United States, with the profits expected to be confirmed in the fourth quarter of this year. However, 2FIRSTS has discovered that Kaival Brands did not mention the profits from their partnership with PMP in their 2022 Q4 and full-year financial reports.
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Kaival Brands has released its financial results for the fiscal fourth quarter of 2022 and the entire fiscal year of 2022.
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