Company: KAVL
Filing Date: 2025-02-21
Form Type: PRE 14C
Source: 0001731122-25-000278
Chunk: 15

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-21
Form: PRE 14C
Chunk 15
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ing Consequences

The par value per share of
our common stock will remain unchanged at $0.00001 per share following a Reverse Split. As a result, as of the Effective Date, the stated
capital on the Company’s balance sheets attributable to common stock will be reduced proportionally based on the Reverse Split ratio,
and the additional paid-in capital will be credited with the amount by which the capital is reduced. The net income or loss per share
of common stock will be increased as a result of the fewer shares of common stock outstanding. The Reverse Split will be reflected retroactively
in our consolidated financial statements.

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We present earnings per share (“EPS”)
in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 128, “Earnings per Share,” and we
will comply with the requirements of SFAS No. 128 with respect to reverse stock splits. In pertinent part, SFAS No. 128 says as follows:
“If the number of common shares outstanding decreases as a result of a reverse stock split, the computations of basic and diluted
EPS shall be adjusted retroactively for all periods presented to reflect that change in capital structure. If changes in Common Stock
resulting from reverse stock splits occur after the close of the period but before issuance of the financial statements, the per-share
computations for those and any prior period financial statements presented shall be based on the new number of shares. If any per-share
computations reflect such changes in the number of shares, that fact shall be disclosed.”

Street Name Holders of Common Stock

The Company intends for the Reverse Split to treat
stockholders holding Common Stock in street name through a nominee (such as a bank or broker) in the same manner as stockholders whose
shares are registered in their names. Nominees will be instructed to affect the Reverse Split for their beneficial holders. However, nominees
may have different procedures. Accordingly, stockholders holding Common Stock in street name should contact their nominees.

Stock Certificates

Mandatory surrender of certificates is not required
by our stockholders. The Company’s transfer agent will adjust the record books of the company to reflect the Reverse Split as of
the Effective Date of the Reverse Split. New certificates will not be mailed to stockholders.

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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS</div>

The following table sets forth certain information,
as of the Record