Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 171

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1A
Chunk 171
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 a material adverse effect on our business, results of operations, and financial condition.

The departure of key management personnel and
the failure to attract and retain talent could adversely affect our operations. 

Our success depends upon the continued
contributions of our senior executive management, especially our Interim Chief Executive Officer, Mark Thoenes, our Interim Chief
Financial Officer, Eric Morris If one or more of our executive officers are unable or unwilling to continue in their current
positions, we may not be able to replace them readily, if at all. Additionally, we may incur additional expenses to recruit and
retain new executive officers. If any of our executive officers join a competitor or forms a competing company, we may lose some or
all of our customers. Finally, we do not maintain “key person” life insurance on any of our executive officers. Because
of these factors, the loss of the services of any of these key persons could adversely affect our business, financial condition, and
results of operations.

Our insurance may be insufficient to cover losses that may occur
as a result of our operations. 

We currently maintain directors’ and officers’
liability insurance and property and general liability insurance. This insurance or other insurance we may elect to obtain may not be
or remain available to us or be obtainable by us at commercially reasonable rates, and the amount of our coverage may not be adequate
to cover any liability we incur. Future increases in insurance costs, coupled with the increase in deductibles, will result in higher
operating costs and increased risk. If we were to incur substantial liability and such damages were not covered by insurance or were in
excess of policy limits, or if we were to incur such liability at a time when we were not able to obtain liability insurance, our business,
results of operations and financial condition could be materially adversely affected.

28

Risks Related to Our Securities

Our Restated Certificate of Incorporation, as
amended (our “Certificate of Incorporation”), and our Bylaws (our “Bylaws”), as well as the DGCL and certain regulations,
could discourage or prohibit acquisition bids or merger proposals, which may adversely affect the market price of our Common Stock. 

Provisions of our Certificate of Incorporation and
Bylaws and the DGCL may discourage, delay or prevent a merger, acquisition, or other change in control that stockholders may consider
favorable, including transactions in which our stockholders might otherwise receive a premium for their shares of our Common Stock. These