Kaival Brands Innovations Group Inc (KAVL)

[BuyNStonks]

This is a good point. Based on the 10-Q almost 12 million shares were disbursed to employees and QuikFillRX at the end of the Q. I don't see any mention of those shares being RSU's so I would imagine some of them made their way to the open market.

On the topic of QuikFillRX.......

Per the amended service agreement with the company they are paid $125k/month or $375k in base compensation for last Q. They are also entitled to bonus compensation

An amount equal to 0.9% of the Applicable Gross Quarterly Sales, which amount shall, at the Client’s option be paid in (a) cash or (b) shares of the Client’s common stock, par value $0.001 per share (“Common Stock”), or (c) a combination of cash and Common Stock, subject to the following:

a bunch of conditions

An amount equal to 0.27% of the Applicable Gross Quarterly Sales, which amount must be paid in cash.

Based on the 10-Q QuikFillRX was awarded -

During the quarter ended July 31, 2020, 3,320,574 shares of common stock, valued and expensed at $202,555, were issued to QuikfillRx as compensation for the Services rendered to the Company.

From the amended agreement I believe that 30% of their bonus compensation must be in the form of a cash payment. This would take their total bonus compensation for the quarter to $263,321.50.

Their total compensation for the quarter was approximately $638,000.

I personally don't have a clue what QuikFillRX is actually doing for KAVL. What is interesting though is running the numbers upstream. If my math is correct QuikFillRX is receiving bonus payments on over $29M in gross revenue.