Company: KAVL
Filing Date: 2025-08-18
Form Type: 424B5
Source: 0001731122-25-001141
Chunk: 42

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-08-18
Form: 424B5
Chunk 42
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 services and support relating to sales management, website development and design, graphics,
content, social media, management and analytics, and market and other research. QuikfillRx provided these services to us pursuant to a
Services Agreement, most recently amended on November 9, 2022, which had a term ending on October 31, 2025 (subject to potential one-year
extensions) and pursuant to which QuikfillRx received monthly cash compensation and was granted certain equity compensation in the form
of options. This Agreement was terminated in February 2024.

Other Potential Product Offerings & Opportunities

In May 2023 we acquired 19 existing and 47 pending
patents with novel technologies related to vaporization and inhalation technologies from GoFire. The GoFire patent portfolio includes
novel technologies across extrusion dose control, product preservation, tracking and tracing usage, multiple modalities (i.e., different
methods of vaporizing) and child safety. The patents and patent applications cover territories including the United States, Australia,
Canada, China, the EPO (European Patent Organization), Israel, Japan, Mexico, New Zealand and South Korea. The portfolio also includes
a proprietary mobile device software application that is used in conjunction with certain patents in the portfolio.

We expect to continue seeking third-party licensing
opportunities in the cannabis, hemp/CBD, nicotine, nutraceutical and pharmaceutical markets, as a means of monetizing our patents. Longer
term, we believe we can utilize the acquired patents to create innovative and market-disruptive products for its growing base of adult
consumers, including patent protected vaporizer devices and related hardware and software applications.

As described above, we hope to generate revenue from
this acquired intellectual property via licensing and product development activities. However, there can be no assurance that we will
be able to implement this strategy.

Concentrations

Concentration of Purchases and Other Receivable - Related Party:

For the year ended October 31, 2024, 100% of the inventories
of Products, consisting solely of the BIDI® Stick, were purchased from Bidi, a related party company that is owned by KMDD Trust,
in the amount of approximately $0.3 million, as compared to $12.8 million for the year ended October 31, 2023.

On October 31, 2024, we had a related party receivable
balance of zero. As of October 31, 2024, the related