Company: KAVL
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001731122-25-000842
Chunk: 90

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-06-10
Form: 10-Q
Item: Item 2
Chunk 90
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 parent/subsidiary short-form merger of Kaival Brands Innovations Group, Inc., our wholly-owned
Delaware subsidiary formed solely for the purpose of the name change, with and into us. We were the surviving entity.

2

Change of Control

On February 6, 2019, we entered into a Share Purchase
Agreement (the “Share Purchase Agreement”), by and among us, GMRZ Holdings LLC, a Nevada limited liability company (“GMRZ”),
our then-controlling stockholder, and Kaival Holdings, LLC, a Delaware limited liability company (“KH”), pursuant to which,
on February 20, 2019, GMRZ sold 24,000,000 shares of our restricted common stock, representing approximately 88.06% of our then issued
and outstanding shares of common stock, to KH, and KH paid GMRZ consideration in the amount set forth in the Share Purchase Agreement.
The consummation of the transactions contemplated by the Share Purchase Agreement resulted in a change in control, with KH becoming our
largest controlling stockholder. KDMM Trust I, the trustee of which is the widow of Kaival’s former Chief Executive Officer and
director, Nirajkumar Patel, is the sole voting member of KH.

Other Potential Product Offerings & Opportunities

In May 2023,   we acquired 19 existing and
47 pending patents with novel technologies related to vaporization and inhalation technologies from GoFire. The GoFire patent portfolio
includes novel technologies across extrusion dose control, product preservation, tracking and tracing usage, multiple modalities (i.e.,
different methods of vaporizing) and child safety. The patents and patent applications cover territories including the United States,
Australia, Canada, China, the EPO (European Patent Organization), Israel, Japan, Mexico, New Zealand and South Korea. The portfolio also
includes a proprietary mobile device software application that is used in conjunction with certain patents in the portfolio.  

We expect to continue seeking third-party licensing
opportunities in the cannabis, hemp/CBD, nicotine, nutraceutical and pharmaceutical markets, as a means of monetizing our patents. Longer
term, we believe we can utilize the acquired patents to create innovative and market-disruptive products for its growing base of adult
consumers, including patent protected vaporizer devices and related hardware and software applications.

As described above, we hope to generate revenue from
this acquired intellectual property via licensing and product development activities. However, there