Tag: Kaival Brands Innovation Group

  • Kaival Revenues and Profits Up

    Kaival Revenues and Profits Up

    Photo: David

    Kaival Brands Innovations Group reported revenues of $3.2 million for the first quarter of fiscal year 2024 compared with $2.5 million in the same period of the prior fiscal year. Gross profit was approximately $1.2 million in the quarter, up from $500,000 gross profit for the first quarter of fiscal year 2023. The increases in revenues and gross profit was due primarily to a decrease in credits being issued to customers, according to the company.

    Nirajkumar Patel, who was recently appointed CEO at Kaival, assured investors that despite recent challenges, the company remains focused on preserving and improving shareholder value.

    “We have experienced a number of stalled starts related to the FDA’s [U.S. Food and Drug Administration] denial of Bidi Vapor’s premarket tobacco product application for Bidi Vapor’s ‘Classic’ tobacco-flavored Bidi Stick ENDS [electronic nicotine-delivery system] device, and we are navigating a number of transitions,” Patel said in a statement.

    Patel also noted the company is appealing the FDA decision on Bidi Stick.

    “However, we continue to believe there is tremendous value related to our international business as well as new, potential opportunities to monetize the extensive and valuable inhalation patent portfolio that we acquired from GoFire in May of last year.”

    According to Patel, the purchase of the portfolio marks the beginning of Kaival’s diversification efforts and move away from reliance on revenues from Bidi Sticks. “Our efforts to explore profitability of this portfolio are underway, and we are incredibly energized by the interest and revenue opportunities we believe could be available to us through this portfolio,” said Patel.

  • Bidi Vapor Appeals MDO of Tobacco Bidi Stick

    Bidi Vapor Appeals MDO of Tobacco Bidi Stick

    Bidi Vapor will appeal the U.S. Food and Drug Administration’s January 2024 decision to deny the company’s premarket tobacco product application (PMTA) for Bidi Vapor’s “Classic” tobacco-flavored Bidi Stick electronic nicotine-delivery system.

    Bidi Vapor has asked the U.S. Court of Appeals for the 11th Circuit to review the marketing denial order (MDO), which Bidi Vapor believes violates the Administrative Procedure Act. Bidi Vapor will also be seeking a stay of the MDO pending the outcome of the litigation.

    “Bidi Vapor disagrees with the FDA’s decision and is taking immediate action accordingly,” said Bidi Vapor founder and CEO Niraj Patel in a statement. “In the meantime, it is important to note that the decision only affects the ‘Classic’ or tobacco-flavored Bidi Stick. The remaining ten Bidi Stick flavors are still under FDA scientific review and remain in distribution in the United States through Kaival Brands, subject to the FDA’s enforcement discretion.”

    With its recent legal challenge, Bidi Vapor hopes to build on its record of successfully contesting adverse FDA decisions. In August 2022, the 11th Circuit set aside the original MDOs issued for its 10 nontobacco-flavored products. That ruling put the 10 PMTAs back into scientific review and allowed those flavors to remain available for sale pursuant to the FDA’s compliance policy for deemed tobacco products. During this evaluation period, the 10 nontobacco-flavored products are still under FDA enforcement discretion.

  • Hopkins Promoted to CEO, President of Kaival

    Hopkins Promoted to CEO, President of Kaival

    Photo: Gajus

    A former Altria executive has been promoted to CEO and resident of Kaival Brands Innovations Group, Inc. The company announced that it has expanded the role of Executive Chairman Barry Hopkins to include the additional positions.

    Former CEO and president, Eric Mosser, has been appointed CEO and president of Kaival Brands International, a Kaival Brands Innovations Group’s subsidiary with an international licensing relationship with Philip Morris Products.

    Niraj Patel, founder and chief science officer of Kaival Brands, said that from the beginning he has envisioned a diverse platform that could “capture the tailwinds” generated by the company’s core offering, the BIDI Stick electronic nicotine delivery system (ENDS) product.

    “Barry understands this vision, the importance of regulatory compliance and youth access prevention, and has done an exceptional job since joining Kaival Brands. He has eagerly taken on increasing levels of responsibility, leveraging his decades of experience in management in our industry,” said Patel in a press release. “His appointment as Interim CEO and president was a natural progression, and we look forward to potentially expanding our excellent management team further during 2024 with a permanent CEO and/or president as our needs dictate.

    “Having Barry in this position now is particularly important since we are at a significant inflection point, as we remain hopeful that FDA will soon complete its review of the pending premarket tobacco product application (PMTA) for the tobacco-flavored BIDI Stick Classic. If we receive a marketing granted order for this product, we will have significant momentum in the new year with the ability to continue to transition adult cigarette smokers, drive revenue and grow our company.”

    According to a recent U.S. Food and Drug Administration announcement, the agency’s next status report regarding its review of the still-pending PMTAs for major brands and market share leading ENDS products is due to be filed by January 22, 2024 with the U.S. District Court in Maryland.

    Although FDA has not indicated publicly which PMTAs it is prioritizing for review, Kaival Brands is hopeful that the BIDI Stick Classic will be included in the January status report. The company also anticipates the PMTAs for the other 10 BIDI-branded SKUs will remain in scientific review, according to Patel.

    Recently, the Kaival Brands has been encouraged by the coordinated efforts of the FDA, U.S. Customs and Border Protection, and other government agencies to increase their coordinated focus on enforcement. The company believes it has been hurt by illicit vaping products flooding the market, and it is now preparing to scale along with other legal products, assuming increased enforcement continues alongside the January announcement by the FDA.

    “Hopkins will spearhead the company under the direction of the Board of Directors with a continued focus on accelerating revenue growth, improving operational efficiencies and executing Kaival Brands’ strategic growth and diversification initiatives, while remaining in compliance with applicable state and federal regulations.

    “The company, alongside BIDI Vapor (the maker of the BIDI Stick), is also continuing to focus on working with Philip Morris to accelerate the international distribution of ENDS products using BIDI technology (which Philip Morris markets under the brand name ‘VEEV Now’), as part of Philip Morris’s plan to deliver a smoke-free future.”

  • Kaival Appoints Hopkins as Executive Chairman

    Kaival Appoints Hopkins as Executive Chairman

    Image: Monster-Ztudio

    Kaival Brands Innovations Group has expanded the role of Barry Hopkins, chairman of the board, to the new position of executive chairman. In this role, Hopkins will serve as Kaival Brands’ principal executive officer. Current President and CEO Eric Mosser will continue to manage day-to-day operations of the company.

    Hopkins joined Kaival Brands as chairman of the board in March 2023. He is a 40-year tobacco industry veteran with deep operational experience and industry contacts. With his expanded responsibilities, Hopkins will play a more active role in the strategic direction and oversight of the company, with a focus on accelerating revenue growth, improving operational efficiencies and executing on Kaival Brands’ strategic initiatives.

    “Since I joined Kaival Brands in March, I have become even more energized by the opportunities for our company and look forward to working with Eric and our excellent senior leadership team to refine our strategic business plan and reignite growth,” said Hopkins in a statement. “I aim to foster a culture of performance and accountability and to establish clear decision-making processes and strong communication, which are essential for moving our promising business forward.”

    Hopkins spent most of his decades-long career primarily in senior sales and marketing roles for Turning Point Brands and Altria.

  • Kaival Promotes Stephen Sheriff to COO

    Kaival Promotes Stephen Sheriff to COO

    Photo: akub Jirsák | Dreamstime.com

    Kaival Brands Innovations Group has promoted Stephen Sheriff to chief operating officer.

    Sheriff succeeds Eric Mosser, who was recently promoted to CEO, and joins Mosser and recently appointed Chief Financial Officer Thomas Metzler as a part of Kaival Brands’ expanded senior management team.

    “Promoting Stephen to the role of chief operating officer was a natural and logical next step given his contributions to the success of Kaival Brands to date and his experience helping businesses navigate through rapid periods of growth and change,” said Mosser in a statement. “He has a strong entrepreneurial spirit and will be instrumental in helping us take our business to the next level. With a deep understanding of our operations, the capital markets and what it takes to develop and execute a strategy with proven results, he is a great addition to our C-suite leadership team.”

    Sheriff brings more than a decade of finance and entrepreneurial leadership to his new role. Most recently, he served as the director of administration and communications at Kaival Brands. In this role, he managed the company’s investor and public relations and human resource programs in addition to overall responsibility for the development and implementation of key programs and initiatives, including customer and vendor relations.

    Prior to Kaival Brands, Sheriff co-founded Riverhill Group, a capital markets advisory and consulting firm.

  • Kaival Appoints CEO and CFO

    Kaival Appoints CEO and CFO

    Eric Mosser

    Kaival Brands Innovations Group has promoted its current president and chief operating officer, Eric Mosser, to the position of CEO.

    Mosser, who will retain the position of president, brings over a decade of senior leadership experience, including since 2020 at Kaival Brands.

    From 2022 to 2014, Mosser worked as director of information technology at Timbercon, a fiber-optic design company and ITAR manufacturing facility in Oregon, USA. In 2014, Mosser created Lasermycig, a specialized custom laser-engraving service for electronic cigarettes and vaporizers and served as its CEO until 2020.

    In 2015, Mosser and Bidi Vapor owner Nirajkumar Patel founded Chillcorp, a full-service corporation managing operations of Just Chill Products, Relax Lab., RLX Lab, and KC Innovations Lab.

    Kaival Brands Innovations Group has also appointed Thomas J. Metzler as its new chief financial officer, treasurer and secretary, replacing Mark Thoenes, who has served as Interim CFO since 2021.  

    Metzler brings over 20 years of finance and operational experience in the vaping and consumer products sector, previously serving as managing director of a division of Turning Point Brands.

    At Turning Point Brands, Metzler led a team to transform the process of financial management efficiencies, which improved cost controls, managed inventory turn, developed strategic product promotions to accelerate product distribution, and built strategic alliances with suppliers. Metzler also developed and monitored key performance indicators (KPI).

    Metzler has extensive knowledge of vaping technologies and a record of building strong partnerships with industry stakeholders. He has also been actively engaged in national trade and industry standards organizations.

    At Kaival, Metzler’s will initially focus on maximizing inventory turn and driving revenue, developing and monitoring KPIs and controlling costs. Metzler also has experience in mergers and acquisitions and post-acquisition integration, which he will bring to bear on the vaporizer and inhalation patent portfolio acquired by the Kaival in May 2023.

    “We are very excited to have Tom join our senior management team and believe his hiring represents a key building block for the future of Kaival Brands,” said Mosser in a statement. “Tom brings to us a wealth of experience and knowledge across all of the key elements of the CFO’s office including treasury, finance and accounting.”

     

  • Kaival Reports Flat Quarterly Revenues

    Kaival Reports Flat Quarterly Revenues

    Photo: wichayada

    Kaival Brands Innovations Group reported revenues of $3 million in the second quarter of fiscal 2023, down from $3.1 million in the comparable 2022 quarter. Gross loss was $100,000 compared with a gross profit of $400,000 in the prior-year period.

    While sales were slightly down versus the prior year quarter due to customer credits, discounts and rebates, Kaival believes that continued U.S. Food and Drug Administration enforcement of noncompliant electronic nicotine-delivery system products has allowed the company to position its Bidi Stick as a compliant alternative subject to FDA enforcement discretion. The company believes this should also help in securing new orders for the Bidi Stick.

    “We remain excited and confident in the future of Kaival Brands,” said Eric Mosser, president and CEO of Kaival Brands, in a statement. “Over the past four months, we signed new broker and distribution agreements for our core Bidi Stick distribution business, focusing on partners that share our vision of regulatory compliance and youth access prevention. We believe we have positioned ourselves for increased sales in the second half of the year.”

    In addition to its quarterly results, Kaival announced the renewed distribution of its Bidi Stick in Circle K convenience stores. “As of this week, we have activated over 1,000 new Circle K locations, with the goal of ramping up to 5,000 this year,” said Mosser.

    The company also announced the initial shipment of Bidi Sticks to over 900 Kwik Trip and Mapco locations.

  • Kaival Releases Details of Acquired Patents

    Kaival Releases Details of Acquired Patents

    Image: Tobacco Reporter archive

    Kaival Brands Innovations Group provided additional details of its recently acquired extensive patent portfolio from GoFire as it looks to expand its current product offerings to explore near-term and long-term revenue opportunities, according to GlobeNewswire.

    In the near term, Kaival Brands expects to seek third-party licensing opportunities in the cannabis, hemp/CBD, nicotine and nutraceutical markets as a means of monetizing its new patents. Longer term, the company believes it can utilize the acquired patents to create innovative and market-disruptive products for its growing base of adult consumers, including patent protected vaporizer devices and related hardware and software applications.

    The consideration for the purchased patents consisted primarily of Kaival Brands equity securities, consisting of common stock, newly designated Series B Preferred Stock and a warrant to purchase common stock. Importantly, in certain key aspects, the equity consideration was structured in a forward-looking manner with valuations or exercise prices struck at premiums to the current market price of Kaival Brands’ common stock. The weighted price per share of the common stock issued and the common stock underlying the Series B Preferred Stock was $1.53 per share on the May 30 closing date, accompanied by warrants with exercise prices ranging from $3 and $6.

    Included in the acquired technologies are patented systems and methods that are designed to overcome common issues regarding reliability and consistent dispensing over the entire life of a cartridge or reservoir as well as improvements to the vaporizing chamber to ensure complete vaporization with minimum residue.

    The acquired patent portfolio includes the following: Bluetooth Child Safety App and Mechanical Cartridge Protection; Controlled Delivery; Flavor Delivery and Experience to Last Puff; Leak Proof Design and Removal of Cutting Agents; Authentication System/Counterfeit Protection; Dry Puff Protection; 510 and Pod Compatibility; Product Remaining Indicators; and MHRA Requirements.

    The GoFire patent portfolio includes 12 existing patents and 46 pending applications with novel technologies across extrusion dose control, product preservation, tracking and tracing usage, multiple modalities (i.e., different methods of vaporizing) and child safety. The patents and patent applications cover territories including the United States, Australia, Canada, China, the EPO (European Patent Organization), Israel, Japan, Mexico, New Zealand and South Korea. The portfolio also includes a proprietary mobile device software application that is used in conjunction with certain patents in the portfolio.

    The acquired assets are housed in Kaival Labs, a wholly owned subsidiary of Kaival Brands, which develops new branded and white label products and services in the vaporizer and inhalation technology sectors.

  • Kaival Appoints James Cassidy to Board

    Kaival Appoints James Cassidy to Board

    Image: Svyatoslav Lypynskyy | Adobe Stock

    Kaival Brands Innovations Group appointed James P. Cassidy as a new member of its board of directors, according to a press release.

    Cassidy joins the board of directors as part of Kaival Brands’ recently announced acquisition of an extensive vaporizer and inhalation technology patent portfolio from GoFire. Cassidy is an investor in, and serves as board advisor to, GoFire.

    “We are excited to announce Jim Cassidy as our newest independent director,” said Eric Mosser, chief operating officer, president and a director of Kaival Brands. “Jim’s background as a private equity investor and advisor to growing companies not only in the tobacco space but within the consumer and healthcare spaces will be of tremendous value as we look to expand into new verticals and opportunities following our GoFire patent portfolio acquisition.”

    Cassidy currently serves as the founder and CEO of Preposterous Holdings, a family-run private equity firm with offices in Asheville, North Carolina, USA, which he established in 2013. Cassidy has over 25 years of extensive experience and expertise as a private equity investor and advisor across several industries, including the key areas of tobacco, healthcare, consumer packaged goods and technology. Prior to his current roles, from 2000 to 2007, Cassidy was partner in the Strata Group, a wealth management advisory group at Smith Barney. He started his career in 1983 at UST, a tobacco business holding company, working in various roles in the government relations department and as director of corporate services.

  • Kaival Appoints New Board Members

    Kaival Appoints New Board Members

    Kaival Brands Innovations Group, the distributor of Bidi Vapor products, has appointed Barry Hopkins, David Worner and Mark Thoenes to its board of directors.

    The appointments coincide with the retirement of Paul Reuter as chairman of Kaival Brands’ board of directors. Existing independent directors Roger Brooks and George Chaung will continue to serve on Kaival Brand’s board.

    “We are excited to welcome new independent directors Barry Hopkins and David Worner to our board,” said Kaival President and Chief Operating Officer Eric Mosser in a statement. “With their combined backgrounds and expertise as established senior executive leaders within the tobacco and public company accounting and finance sectors, we believe they will make an immediate impact on our company as we execute on both current and future growth initiatives.”

    “I am also excited to announce that Mark Thoenes, our interim chief financial officer, has also joined our board. In his current role, Mark has proven invaluable in assisting with key decisions as our company navigated an exceptionally difficult regulatory environment. Finally, on behalf of our board and company, we would like to thank Paul Reuter for his service to our board and shareholders through several milestone moments. We wish him the best in retirement.”

    Hopkins brings decades of senior executive experience within the traditional tobacco vape and CBD spaces. He spent most of his decades-long career primarily in senior sales and marketing roles for Turning Point Brands and Altria.

    Worner brings a diverse combination of finance, fundraising, mergers and acquisitions, technical accounting and operational experience gained over nearly 20 years. He is currently the CEO and founder of GrowthPath Partners, a transactional accounting and advisory firm.

    Thoenes has more than 35 years of diverse financial and operational leadership. He has been a licensed Certified Public Accountant since 1984 and began his career with Ernst & Young Global Limited. For the past eleven years, Thoenes has been the President of MLT Consulting Services, LLC, a full-service business/financial consulting firm.