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Kaival Brands Innovations Group Inc (NASDAQ:KAVL) has made considerable progress over the course of the year so far and earlier this week on September 12 it was in the news after it announced its financial results for the fiscal third quarter. It may be a good idea for investors to consider taking a closer look at it in order to have a better idea about the situation at the company.

Market Stats

On Wednesday, KAVL stock fell 1% to $1.18 with 100K shares, compared to its average volume of 1.73 million shares. The stock moved within a range of $1.1600 – 1.2100 after opening trading at $1.19.

On the financial performance front, the company managed to bring in revenues of $3.8 million for the quarter and that was a significant improvement on the $3.2 million in revenues that it had earned in the prior year period. This topped analysts’ estimates by $0.35 million.

The gross profits for the third quarter stood at $442100 and that was again an improvement on the $84300 that it had generated in gross profits in the prior year period. On the other hand, the operating expenses actually went up to $4.3 million from $3.3 million in the prior year period. Net losses suffered by Kaival Brands was $3.9 million and that actually widened from the $3.4 million net loss in the prior year period.

There were some significant milestones that had been achieved by the company during the third quarter. The most important one was perhaps the international licensing agreement that was agreed by Kaival Brands International LLC, the company’s fully owned subsidiary with Phillip Morris Products SA. Phillip Morris Products SA is a fully owned affiliate of the tobacco behemoth Phillip Morris International Inc.

However, that is not all. Another major highlight from the third quarter for Kaival Brands was the launch of VEEBA, a customized branded product with a self-contained e-vapor. The product is going to be sold in Canada and the royalties that are going to accrue to Kaival Brands are in line with the international licensing agreement with Philip Morris.

Traders Corner

KAVL stock is trading below the 20-Day and 50-Day Moving averages of $1.20 and $1.21 respectively. Moreover, the stock is trading below the 200-Day moving average of $1.31.