Company: KAVL
Filing Date: 2025-03-17
Form Type: 10-Q
Source: 0001731122-25-000399
Chunk: 63

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-03-17
Form: 10-Q
Item: Item 8
Chunk 63
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B Preferred Stock. All of the securities issued as consideration for the Purchased Assets are subject to a lock-up agreement that terminates
one hundred eighty (180) days from the Closing Date. As of January 31, 2025, the Company made an accrual for the additional ten percent
(10%) of all of the Series B Conversion Shares of $39,283.

Common Stock

During the three months ended January 31, 2025, the
Company issued 3,025,000 fully vested shares of common stock to directors, officers and an employee pursuant to grants under the Company’s
Amended and Restated 2020 Stock and Incentive Compensation Plan. During the three months ended January 31, 2025, the Company recognized
stock compensation cost of $2,873,750.

    F-18 

Stock Options

Summary of stock options information is as follows:

Schedule of stock options information

Aggregate
 
Aggregate
 
Exercise Price
 
WA Exercise

Number
 
Exercise Price
 
Range
 
Price

Outstanding, October 31, 2024

189,590

$
6,847,736

$
3.64-602.28

$
36.12

Granted

—

—

—

—

Exercised

—

—

—

—

Cancelled, forfeited, or expired

(30,556
)

(1,954,939
)
 
$
21.63-602.28

63.98

Outstanding, January 31, 2025

159,034

4,892,797

$
3.64-545.58

30.77

Exercisable, January 31, 2025

147,724

$
4,717,222

$
3.64-545.58

$
31.93

During the three months ended January 31, 2025, and
2024, the Company recognized $31,302
and $309,958,
respectively of stock option expense related to outstanding stock options. No options were granted during the three months ended January
31, 2025.

As of January 31, 2025, the Company had $23,633
of unrecognized expenses related to options, which is expected to be recognized over a weighted-average period of approximately 2.4
years. The weighted average remaining contractual life is approximately 3.93
years for stock options outstanding as of  January 31, 2025.