Company: KAVL
Filing Date: 2025-09-16
Form Type: 10-Q
Source: 0001731122-25-001266
Chunk: 27

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-09-16
Form: 10-Q
Item: Item 1
Chunk 27
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with a weighted average remaining useful life of 12.8 years and 13.7 years as of July 31, 2025 and October 31, 2024, respectively.

The Company recognized amortization
expenses of $589,806 and $589,798 for the nine months ended July 31, 2025, and 2024, respectively. Amortization expense is included
under general and administrative expenses in the unaudited interim consolidated statements of operations.

Future amortization expense of intangible assets is
as follows:

    Schedule of future amortization expense of intangible assets 

    Remaining period in 2025 (three months) 
    $196,592 
  
    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 
    $10,092,105 

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 July 31, 2025 and October 31, 2024, the outstanding balance of the Insurance loans amounted to 0zero and $207,616, respectively.

    F-15

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