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

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-06-10
Form: 10-Q
Item: Item 1
Chunk 25
---
 $393,194 
  
    Year ending October 31, 2026  
     786,398 
  
    Year ending October 31, 2027  
     786,398 
  
    Year ending October 31, 2028  
     786,398 
  
    Year ending October 31, 2029  
     786,398 
  
    Thereafter  
     6,749,921 
  
    Total  
    $10,288,707 

    F-15

Note 5 – Loans Payable

Insurance Loans

On May 10, 2024, the Company obtained two insurance
loans. The first loan is a nine-month loan from First Insurance Bank to finance the annual D&O insurance, with the principal amount
of $381,077 and subject to an effective interest rate of 7.45%. The second loan is a nine-month loan from IPFS Corporation to
finance the annual D&O insurance, with the principal amount of $94,404 and subject to an effective interest rate of 11.15%.
As of April 30, 2025 and October 31, 2024, the outstanding balance of the Insurance loans amounted to 0zero and $207,616, respectively.

Loan Agreements

On November 29, 2023, the Company entered into two
loan agreements which are collateralized by all assets of the Company until the loans are repaid in full. Under the terms of these agreements,
the Company received the disclosed Purchase Price and agreed to repay the disclosed Purchase Amount, which is collected by the lenders
at the disclosed weekly payment rate. The Company’s former Chief Executive Officer, Eric Mosser personally guarantees the performance
of these loans. These loans were fully paid on June 13, 2024, upon their maturity.

On August 9, 2023, the Company entered into a Securities
Purchase Agreement (the “SPA”) with AJB Capital Investments, LLC (“AJB”), pursuant to which the Company sold a
Promissory Note in the principal amount of $650,000 (the “Note”) to AJB in a private transaction for a purchase price of $585,000
(giving effect to original issue discount of $65,000). The Note matured on February 8, 2024 (the “Maturity Date”) and had
interest at the rate of 10% per annum. Interest