Eric Morris
About Eric Morris
Eric Morris is Chief Financial Officer of Kaival Brands Innovations Group (appointed Interim CFO on March 7, 2024; serving as CFO in 2025). He is 48 in May 2024 and 49 in October 2025, a licensed CPA since 2006, with prior roles as KAVL Controller (Apr 2023–Mar 2024), fractional accounting consultant (2017–2023), and Controller at a privately held parking meter company (2010–2017). He holds a bachelor’s degree in accounting from Linfield University (2000) . Company performance under his finance tenure shows revenues declining from $13.1M in FY2023 to $6.9M in FY2024 while EBITDA and net loss improved (EBITDA: -$10.3M to -$4.9M; Net Income: -$11.1M to -$6.7M)* *.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Kaival Brands Innovations Group, Inc. | Controller | Apr 2023 – Mar 2024 | Stood up internal finance, reporting, and controls prior to appointment as CFO . |
| Private Parking Meter Company (privately held) | Controller | Dec 2010 – Aug 2017 | Led accounting operations for manufacturing/services context . |
| Various Private Clients | Fractional accounting consultant | Sep 2017 – Apr 2023 | Provided outsourced finance leadership across diverse clients . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Certified Public Accountant (license) | CPA | Since 2006 | Professional credential underpinning SEC reporting oversight . |
Fixed Compensation
| Metric | FY2023 | FY2024 |
|---|---|---|
| Base Salary ($) | $84,720 | $168,960 |
| Target/Discretionary Cash Bonus ($) | $3,000 (paid) | $1,500 (paid) |
Employment Agreement (Oct 29, 2024):
- Base salary: $180,000/year
- Discretionary bonus: $20,000 (2024), additional bonuses at Board discretion
- At-will employment; termination by either party at any time
Performance Compensation
| Incentive Type | Grant/Outstanding | Terms | Vesting | Value/Notes |
|---|---|---|---|---|
| Restricted Stock | 250,000 shares (granted Oct 29, 2024) | Granted under 2020 Stock & Incentive Plan | Vesting terms not disclosed | Equity grant aligns pay with shareholders . |
| Stock Options (FY2023 award) | 2,381 shares granted 7/8/2023 | Exercise price implicit via valuation disclosure | Not disclosed | Aggregate grant-date value $39,429 . |
| Options—Outstanding (FY2024 year-end) | 1,786 non-vested options | N/A | Not disclosed | Reported market value $29,572 at FY2024 year-end . |
| Bonus Structure | Discretionary | Board discretion per agreement | N/A | No performance metrics disclosed for CFO; other execs had revenue-based awards historically . |
Clawback: Incentive-based compensation subject to clawback per applicable rules and company policy .
Equity Ownership & Alignment
| Metric | May 2, 2024 | Feb 25, 2025 |
|---|---|---|
| Beneficial Ownership (shares) | 6,020 (plus ~2,381 unvested options) | 770,000 shares |
| % of Shares Outstanding | <1% | 6.7% (based on 11,542,302 shares outstanding) |
| Options—Not Vested (#, $) | — | 1,786; $29,572 market value |
| Shares Pledged as Collateral | Not disclosed | Not disclosed |
Additional insider activity: Yahoo Finance lists a Form 4 stock award grant of 776,020 shares on Jan 2, 2025 for Eric Morris, consistent with the proxy’s 770,000 share beneficial ownership .
Ownership guidelines/compliance: Not disclosed in the 2024/2025 proxy statements .
Employment Terms
| Provision | Detail |
|---|---|
| Agreement Date | Oct 29, 2024 (Executive Employment Agreement) |
| Title | CFO, Treasurer & Secretary |
| Term | At-will (either party may terminate at any time) |
| Base Salary | $180,000/year |
| Bonus | $20,000 discretionary for 2024; future bonuses at Board discretion |
| Equity | 250,000 restricted shares granted at signing under 2020 Plan |
| Severance | No severance; accruals only upon termination (Cause/Good Reason framework detailed) |
| Change-of-Control | No special payments; none disclosed for NEOs beyond equity |
| Clawback | Incentive comp subject to clawback under applicable rules/policy |
| Confidentiality/IP | Robust confidentiality and IP assignment provisions; DTSA notice included |
| Non-Compete/Non-Solicit | Not disclosed in the agreement excerpts provided – |
Compensation & Ownership History (Eric Morris)
| Metric | FY2023 | FY2024 |
|---|---|---|
| Salary ($) | $84,720 | $168,960 |
| Bonus ($) | $3,000 | $1,500 |
| Option Awards ($) | $39,117 | $0 |
| Total ($) | $126,837 | $170,460 |
| Stock Comp Issuance | 2,381 sh @ $16.56; $39,429 (7/8/2023) | — |
| Beneficial Ownership (sh) | 6,020 (plus ~2,381 unvested options) | 770,000 (6.7% of class) |
Performance & Track Record
Company financial context over Eric’s finance tenure:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues ($) | 13,087,018 | 6,886,665 |
| EBITDA ($) | -10,335,597* | -4,921,754* |
| Net Income ($) | -11,132,772* | -6,699,282* |
| Gross Profit ($) | 2,574,595 | 2,605,494 |
| Cash from Operations ($) | -2,973,254* | -672,632* |
- YoY: Revenue fell ~47%; EBITDA loss narrowed by ~52%; Net loss narrowed by ~40%; Gross profit slightly increased YoY *.
Board governance signals:
- Compensation Committee did not meet during fiscal 2024 , whereas it met six times in fiscal 2023 .
- Related-party reliance: 100% of FY2024 inventory purchases from Bidi Vapor (entity controlled by former CEO/wife); ~$0.3M purchases and ~$220k license fees; payable balances disclosed .
Risk Indicators & Red Flags
- No severance/change-of-control protections for NEOs; alignment but potential retention risk in competitive labor markets .
- Compensation Committee inactivity in FY2024 may indicate weaker pay-for-performance governance .
- Extensive related-party transactions with Bidi Vapor (supply and licensing) elevate governance and supplier concentration risk .
- No disclosure of stock pledging or hedging by the CFO; absence of ownership guideline disclosure .
Compensation Committee Analysis
- Committee composition: Ketankumar Patel (Chair), David Worner, Ashesh Modi (FY2024) .
- Meetings: None in fiscal 2024 ; six meetings in fiscal 2023 .
- Use of consultants/policies: Authorized to engage consultants; director comp frameworks outlined .
Investment Implications
- Strong ownership alignment: The CFO’s ~6.7% stake and restricted stock grant indicate high equity sensitivity; this can incentivize cash discipline and accretive decisions .
- Retention risk: At-will agreement with no severance or CoC protections could increase turnover risk during stress or strategic change .
- Governance caution: FY2024 compensation committee inactivity and related-party dependence may dampen confidence in incentive rigor and procurement independence .
- Improving losses: Material EBITDA and net loss improvement in FY2024 vs FY2023 suggests cost/actions momentum under current finance leadership, but revenue pressure remains significant*.
S&P Global disclaimer: Asterisk-marked values were retrieved from S&P Global Capital IQ via GetFinancials and may lack direct filing citations.