Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 232

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1A
Chunk 232
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 a conversion rate of 0.3968 shares of Common Stock per share of Series
B Preferred Stock which may only occur on or after the following dates 18-month, 24 month, 36 month, 48 month, and 60 month anniversary
of the original issuance date; and only up to 180,000 shares of Series B Preferred Stock on each of these dates. All shares of Series
B Preferred Stock will automatically convert to Common Stock upon the occurrence of a Change of Control (as defined in the GoFire APA). As of October 31, 2024, the Company had accrued a dividend
of $382,500 payable to Series B shareholders.

    F-20

Reverse Stock Split

On January 22, 2024, the Company filed a
Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation with the Secretary of State of the
State of Delaware to affect a 1-for-21
reverse stock split (the “2024 Reverse Stock Split”) of the shares of the Common Stock. The 2024
Reverse Stock Split was effective on January 25, 2024, on the Nasdaq Stock Market. No fractional shares were issued in connection
with the 2024 Reverse Stock Split. Any fractional shares of the Company’s Common Stock that would have otherwise resulted from
the 2024 Reverse Stock Split were rounded up to the nearest whole number. In connection with the 2024 Reverse Stock Split, the Board
approved appropriate and proportional adjustments to all outstanding securities or other rights convertible or exercisable into
shares of the Common Stock, including, without limitation, all preferred stock, warrants, options, and other equity compensation
rights. All historical share and per-share amounts reflected throughout these accompanying   consolidated
financial statements   have
been retroactively adjusted to reflect the 2024 Reverse Stock Split as if the split occurred as of the earliest period presented.
The par value per share of the Common Stock was not affected by the 2024 Reverse Stock Split.

Common Stock

During the year ended October 31, 2024, the Company
issued 1,746,500
shares of common stock in connection with the June 2024 Public Offering (see below).

During the year ended October 31, 2024, the Company
issued 2,174,456
shares of common stock from exercises of pre-funded warrants (see below).

During the year ended October 31, 2024, the Company