Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 1104

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 11
Chunk 1104
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 are deemed to be beneficially owned by the person holding such
securities for the purpose of computing the percentage of ownership of such person but are not treated as outstanding for the purpose
of computing the percentage ownership of any person.

               (3) Eric Morris serves as our Interim Chief
Financial Officer. Includes approximately 2,381 shares of our common stock issuable upon the exercise of vested options.

(4) David
Worner serves as a member of our board. Includes approximately 10,952 shares of our common stock issuable upon the exercise of vested
options.

(5) Mark
Thoenes serves as a member of our board. Includes approximately 14,524 shares of our common stock issuable upon the exercise of vested
options.

(6) Includes
3,000 shares underlying vested options.

(7) Includes
3,000 shares underlying vested options.

(8)
KDMM Trust I is the sole voting member of Kaival Holdings, LLC and Ankitaben Patel, as trustee of KDMM Trust I, has voting control
over the Kaival shares owned by Kaival Holdings LLC.

(9) Address
is 401 N. Wickham Road, Suite 130 Melbourne, FL 32935

(10) KDMM
Trust I owns all of the equity of Bidi and Ankitaben Patel, as trustee of KDMM Trust I, has voting control over the Kaival shares owned
by Bidi.

57

Item 13. Certain Relationships and Related Party Transactions 

Since the beginning of our fiscal
year, we have entered into or participated in the following transactions with related persons:

Revenue

During the year ended October 31, 2024, the Company recognized revenue of $5,950
from three companies owned by Nirajkumar Patel, former Chief Executive Officer and director of the Company and/or his wife.

Purchases and Accounts Payable

During the
year ended October 31, 2024, 100% of the inventories of products, consisting solely of the BIDI® Stick, were purchased from
Bidi, a related party controlled by Nirajkumar Patel and/or his wife  ,
in the amount of $0.3 million.

The KBI License Agreement provides
that KBI shall pay Bidi license fees equivalent to 50% of the adjusted earned royalty payments, after any offsets due to jointly agreed
costs such development costs incurred for entry to specific international markets. During the year