---
schema_version: "secwatch.filing_event.v1"
accession: "0001731122-23-001550"
form_type: "8-K"
ticker: "KAVL"
cik: "0001762239"
company_name: "Kaival Brands Innovations Group, Inc."
filed_at: "2023-08-17T23:59:59+00:00"
generated_at: "2026-06-11T07:47:06.285873+00:00"
event_type: "other_material"
sentiment: "positive"
materiality_score: 0.6
calibrated_materiality_score: 0.6
confidence: "high"
source: SEC EDGAR
---

# Kaival Brands amends PMI license; volume-based royalties, $2.7M savings, $135k payment due

## Summary
- Royalty changes from sales price to volume-based sliding scale: $0.08–$0.10 per sale, rising to $0.10–$0.20 upon milestones.
- Guaranteed royalty eliminated; quarterly payments based on actual sales; unpaid guarantee cancelled.
- Expected reconciliation payment of ~$135k from PMPSA by August 31, 2023; projects ~$300k additional royalties through Q4 2023.
- Cost savings of approx. $2.7M over license lifetime from simplified structure; insurance tail reduced from 6 to 2 years.
- PMI Markets expanded to additional territories; product launched in 13 markets plus duty-free as of July 31, 2023.

## SEC filing metadata
- accession: 0001731122-23-001550
- form_type: 8-K
- ticker: KAVL
- cik: 0001762239
- company_name: Kaival Brands Innovations Group, Inc.
- filed_at: 2023-08-17T23:59:59+00:00
- event_type: other_material
- sentiment: positive
- materiality_score: 0.6
- calibrated_materiality_score: 0.6
- confidence: high
- sec_items: 1.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1762239/000173112223001550/0001731122-23-001550-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1762239/000173112223001550/e4959_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001731122-23-001550
- JSON: https://secwatch.observer/filing/0001731122-23-001550.json
- Plain text: https://secwatch.observer/filing/0001731122-23-001550.txt

## Key facts
- Material Agreements
  Kaival Brands Innovations Group, Inc. amended Deed of Amendment No. 1 with Philip Morris Products S.A. valued at approximately $135,000 (effective 2023-06-30).
  - Action: amendment
  - Agreement: license
  - Counterparty: Philip Morris Products S.A.
  - Value: approximately $135,000
  - Effective: 2023-06-30
  source text: On August 12, 2023, Kaival Brands Innovations Group, Inc. (the “Company”) executed and entered into a Deed of Amendment No. 1 (the “PMI License Amendment”) with Philip Morris Products S.A. (“PMPSA”), Bidi Vapor LLC (“Bidi Vapor”) and Kaival Brands International, LLC, a wholly-owned subsidiary of the Company (“KBI”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1762239/000173112223001550/0001731122-23-001550-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.