Company: KAVL
Filing Date: 2025-03-17
Form Type: 10-Q
Source: 0001731122-25-000399
Chunk: 22

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-03-17
Form: 10-Q
Item: Item 1
Chunk 22
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 ENDS products and the various other risks faced by the Company. The accompanying unaudited interim consolidated
financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of
assets or the amounts and classification of liabilities that may result from the outcome of these or other risks or uncertainties.

    F-15 

Note 4 – Intangible Assets

The Company’s intangible
assets include patents and technology that were acquired pursuant to the GoFire Asset Purchase Agreement (“GoFire APA”). The
cost and accumulated amortization of the intangible assets amounted to $11,795,975 and $1,310,666 as of January 31, 2025, respectively
and $11,795,975 and $1,114,064 as of October 31, 2024, respectively. Amortizable patents and technology have a useful life of 15.0 years
with a weighted average remaining useful life of 13.3 years and 13.7 years as of January 31, 2025 and October 31, 2024, respectively.

The Company recognized amortization
expenses of $196,602 and $196,599 for the three months ended January 31, 2025, and 2024, respectively. Amortization expense is included
under general and administrative expenses in the unaudited interim consolidated statement of operations.

Future amortization expense of intangible assets is
as follows:

Schedule of future amortization expense of intangible assets

Remaining period in 2025 (nine months)

$
589,796

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

$
10,485,309

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