Company: KAVL
Filing Date: 2025-03-17
Form Type: 10-Q
Source: 0001731122-25-000399
Chunk: 24

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-03-17
Form: 10-Q
Item: Item 1
Chunk 24
---
,432
as loss on extinguishment of debt in the three months ended January 31, 2024. As of January 31, 2025 and October 31, 2024 the
carrying value of the Note were zero and zero, respectively.    

    F-16 

Note 6 – Leases

The Company does
not have financing leases and only one operating lease for office space and inventory storage space with Just Pick, LLC (“Just Pick”),
a related party that was owned and controlled by Nirajkumar Patel, the former Chief Executive Officer and a director of the Company. Certain
of the Company’s leases, have and may in the future, include renewal options, which have been and might be in the future, included
in the calculation of the lease liabilities and right of use assets when the Company is reasonably certain to exercise the option.

Cash flow information related to leases was as follows:

Schedule of cash flow information related to leases

January 31, 2025
 
January 31, 2024

Other Lease Information

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases
 
$
(49,101
)
 
$
(44,340
)

The following table provides the maturities of lease
liabilities as of January 31, 2025:

Schedule of maturities of lease liabilities

Operating Leases

Remaining period in 2025 (nine months)
 
$
180,137

Year ending October 31, 2026

253,614

Year ending October 31, 2027

274,946

Year ending October 31, 2028

175,989

Total future undiscounted lease payments
 
$
884,686

Less: Interest

(67,579
)

Present value of lease liabilities
 
$
817,107

At January 31, 2025, the Company had no additional
leases which had not yet commenced.

Note 7 – Stockholders’ Equity

Series B Convertible Preferred Stock

On May 30, 2023, the Company issued 900,000 shares
of the Series B Preferred Stock as consideration for the GoFire asset purchase. The Series B Preferred Stock carries no voting rights
except: (i) with respect to the ability of the holders of a majority of the then outstanding Series B Preferred Stock (the “Majority
Holders”), to nominate a director to the Company’s board of directors