Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 177

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1A
Chunk 177
---
. We may be a target of a short squeeze, and investors may lose a significant portion or all their investment
if they purchase our shares at a rate that is significantly disconnected from our underlying value.

31

If securities or industry analysts fail to continue
publishing research about our business, if they change their recommendations adversely or if our results of operations do not meet their
expectations, our stock price and trading volume could decline. 

The trading market for our Common Stock will be influenced
by the research and reports that industry or securities analysts publish about us or our business. If one or more of these analysts cease
coverage of our company or fail to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could
cause our stock price or trading volume to decline. In addition, it is likely that in some future period our operating results will be
below the expectations of securities analysts or investors. If one or more of the analysts who cover us downgrade our Common Stock, or
if our results of operations do not meet their expectations, our stock price could decline.

We do not currently pay dividends on our shares
of Common Stock and have no intention of paying dividends on shares of our Common Stock for the foreseeable future. 

No dividends on the shares of our Common Stock have
been paid by us to date. We do not intend to declare or pay any cash dividends in the foreseeable future. Payment of any future dividends
will be at the discretion of our Board, after considering a multitude of factors appropriate in the circumstances, including our operating
results, financial condition, and current and anticipated cash needs. In addition, the terms of any future debt or credit facility may
preclude us from paying any dividends unless certain consents are obtained, and certain conditions are met. There is no assurance that
future dividends will be paid, and, if dividends are paid, there is no assurance with respect to the amount of any such dividend. Unless
our Board decides to pay dividends, our stockholders will be required to look at appreciation of our Common Stock to realize a gain on
their investment. There can be no assurance that this appreciation will occur.

For as long as we are an “emerging growth
company” we intend to take advantage of reduced disclosure and governance requirements applicable to emerging growth companies,
which could result in our Common Stock being less attractive to investors and could make it more difficult for us to raise capital as
and when we need it. 

We are an “emerging growth company,”