Company: KAVL
Filing Date: 2025-02-21
Form Type: PRE 14C
Source: 0001731122-25-000278
Chunk: 12

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-21
Form: PRE 14C
Chunk 12
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 Federal Income Tax Consequences

The following is a summary
of material U.S. federal income tax consequences of a Reverse Split to stockholders. This summary is based on the provisions of the Internal
Revenue Code of 1986, as amended (the “Code”), U.S. Treasury regulations, administrative rulings and judicial decisions, all
as in effect on the date of this filing, and all of which are subject to change or differing interpretations, possibly with retroactive
effect. Any such change or differing interpretation could affect the tax consequences described below.

We have not sought and will
not seek an opinion of counsel or ruling from the Internal Revenue Service (the “IRS”) with respect to the statements made
and the conclusions reached in the following summary, and there can be no assurance that the IRS or a court will agree with such statements
and conclusions.

This summary is limited to
stockholders that are U.S. holders, as defined below, and that hold our common stock as a capital asset (generally, property held for
investment).

This summary is for general
information only and does not address all U.S. federal income tax considerations that may be applicable to a holder’s particular
circumstances or to holders that may be subject to special tax rules, such as, for example, brokers and dealers in securities, currencies
or commodities, banks and financial institutions, regulated investment companies, real estate investment trusts, expatriates, tax-exempt
entities, governmental organizations, traders in securities that elect to use a mark-to-market method of accounting for their securities,
certain former citizens or long-term residents of the U.S., insurance companies, persons holding shares of our common stock as part of
a hedging, integrated or conversion transaction or a straddle or persons deemed to sell shares of our common stock under the constructive
sale provisions of the Code, persons that hold more than 5% of our common stock, persons that hold our common stock in an individual retirement
account, 401(k) plan or similar tax-favored account or partnerships or other pass-through entities for U.S. federal income tax purposes
and investors in such entities.

This summary does not address
any U.S. federal tax consequences other than U.S. federal income tax consequences (such as estate or gift tax consequences), the Medicare
tax on net investment income, the alternative minimum tax or any U.S. state, local or foreign tax consequences. This summary also does
not address any U.S. federal income tax considerations relating to any