Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 1188

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 8
Chunk 1188
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 of stock options that vested
during the fiscal years ended October 31, 2024 and October 31, 2023 were $830,907 and $1,885,367 respectively.

On October 31, 2024, the Company had $54,935 of
unrecognized expenses related to options, which is expected to be recognized over a weighted-average period of approximately 1.52 years.
The weighted average remaining contractual life is approximately 3.53 years for stock options outstanding as of October 31, 2024.
The aggregate intrinsic value of these outstanding options as of October 31, 2024 was zero.

Compensation expense related to performance-based
options is recognized on a straight-line basis over the requisite service period, provided that it is probable that performance conditions
will be achieved, with probability assessed on a quarterly basis and any changes in expectations recognized as an adjustment to earnings
in the period of the change. Compensation cost is not recognized for service and performance-based awards that do not vest because service
or performance conditions are not satisfied, and any previously recognized compensation cost is reversed. If vesting occurs prior to the
end of the requisite service period, expense is accelerated and fully recognized through the vesting date.

Warrants

Warrant information as of the periods indicated is as follows:

    Schedule of warrant information 

    Aggregate 
      
    Average

    Aggregate
    Number 
    Exercise

    Price 
    Exercise
    Price Range 
    Exercise
    
Price
  
    Outstanding,
    October 31, 2022 
     110,396  
    $4,401,801  
    $39.90  
    $39.90 
  
     Granted 
     132,152  
     9,544,205  
     12.39-126.00  
     72.22 
  
     Exercised 
     —  
     —  
     —  
     — 
  
     Cancelled,
    forfeited, or expired 
     —  
     —  
     —  
     — 
  
    Outstanding,
    October 31, 2023 
     242,548  
    $13,946,006  
    $12.39-126.00  
    $57.51 
  
     Granted 
     8,057,250  
     6,812,