Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 1105

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 11
Chunk 1105
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 ended October 31, 2024, the Company
paid license fees of approximately $220,000 to Bidi. As of October 31, 2024, the Company had accounts payable to Bidi of $131,683 for
license fees.

Leased Office Space and Storage
Space

We capitalize all leased assets
pursuant to ASU 2016-02, Leases (Topic 842) (“Topic 842”), which requires lessees to recognize right-of-use (“ROU”)
assets and lease liability, initially measured at present value of the lease payments, on its balance sheet for leases with terms longer
than 12 months and classified as either financing or operating leases. We exclude short-term leases having initial terms of 12 months
or less from Topic 842 as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term. On
June 10, 2022, we entered into the 2022 Lease with Just Pick for approximately 21,332 rentable square feet combined in our principal
office building and warehouse, together with all improvements thereon. Just Pick is considered a related party because our Chief Executive
Officer and director, Mr. Nirajkumar Patel, owns and controls Just Pick. 

58

Policies and Procedures for Related Party Transactions

We follow ASC 850, Related Party
Disclosures, for the identification of related parties and disclosure of related party transactions. When and if we contemplate entering
into a transaction in which any executive officer, director, nominee, or any family member of the foregoing would have a direct or indirect
interest, regardless of the amount involved, the terms of such transaction are presented to our board of directors (other than any interested
director, if possible) for approval and documented in the board minutes.

Item 14. Principal Accounting Fees and Services.  

Below
                                            is the aggregate amount of fees billed for professional services rendered by Malone Bailey,
                                            LLP, our principal accountants with respect to our fiscal year ended October 31, 2024, and
                                            October 31, 2023. 

    2024 
    2023
  
    Audit and review fees 
    $227,120  
    $286,725 
  
    Audit-related fees 
     —  
     — 
  
    Tax fees 
     —  
     — 
  
    All other fees 
     154,198  
     —