Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 410

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 2
Chunk 410
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 Amount,
which is collected by the lenders at the disclosed weekly payment rate. The Company’s former Chief Executive Officer, Eric Mosser
personally guarantees the performance of these loans. These loans were fully paid on December 4, 2023, upon their maturity.

On November 29, 2023, the Company entered into two
loan agreements which are collateralized by all assets of the Company until the loans are repaid in full. As illustrated in the following
table, under the terms of these agreements, the Company received the disclosed Purchase Price and agreed to repay the disclosed Purchase
Amount, which is collected by the lenders at the disclosed weekly payment rate. The Company’s former Chief Executive Officer, Eric
Mosser personally guarantees the performance of these loans. These loans were fully paid on June 13, 2024, upon their maturity.

    F-18

The following table shows the loan agreements as of
October 31, 2024:

Schedule of loan agreements

Inception Date
 
Purchase  Price
 
Purchased Amount
 
Outstanding Balance
 
Payment frequency
 
Payment Rate
 
Deferred Finance Fees

November 29, 2023
 
$
600,000

$
864,000

$
—

Weekly

30,857

$
—

November 29, 2023

600,000

864,000

—

Weekly

30,857

—

$
1,200,000

$
1,728,000

$
—

$
—

The following table shows the loan agreements as of
October 31, 2023:

Inception Date
 
Purchase Price
 
Purchased Amount
 
Outstanding Balance
 
Payment frequency
 
Payment Rate
 
Deferred Finance Fees

May 9, 2023
 
$
400,000

$
580,000

$
53,709

Weekly

20,714

$
3,434

May 9, 2023

400,000

580,000

80,467

Weekly

20,714

5,247

$
800,000

$
1,160,000

$
134,176

$
8,681

The Company has accounted for these agreements as
loans under ASC 860 because while the Company provided rights to current and future receipts, the Company still had control over the receipts.
The difference between the Purchase Amount and the Purchase Price is imputed interest that is recorded as interest expense when paid.

On August 9, 2023, the Company entered into