Kaival Brands Innovations Group Inc (KAVL)

[BuyNStonks]

Q4 '19 and Q1 '20 were filed. For the 9 months ending Q3 we had .01 EPS. It's not a new company that didn't report. It's a company that reported and didn't have any revenue.

Obviously O/S shares have been reduced since the start of Q4 so that will affect the EPS in Q4. They seem to have a high cost of revenue that will adversely impact net revenues.

Based on the patent purchase I believe they shelled out 1.5M which again is going to adversely affect cash on hand and net revenues. They are also going to announce the issuance of securities in the next 6 months that could be depressing the share price as well.

I personally have some concerns about the nature of the Preferred shares. If you read through the agreement they can be converted to common stock prior to 2023 if there is a change of control or basically anytime the board and a majority of shareholders agree. Niraj and Eric control ~87% of the shares. They are also likely to represent at least 2 votes of the board and anyone else on the board is likely to be closely aligned.

I'm not saying there is anything nefarious going on but these are things that could give investors pause.

I think it's also important to note that this discussion was born out of my comment that there was no critical analysis going on and was really just commiseration; that comment certainly wasn't directed at you, Daiello.

I am still long on the company and looking to continue buying.