Company: KAVL
Filing Date: 2025-03-17
Form Type: 10-Q
Source: 0001731122-25-000399
Chunk: 61

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-03-17
Form: 10-Q
Item: Item 8
Chunk 61
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(44,340
)

The following table provides the maturities of lease
liabilities as of January 31, 2025:

Schedule of maturities of lease liabilities

Operating Leases

Remaining period in 2025 (nine months)
 
$
180,137

Year ending October 31, 2026

253,614

Year ending October 31, 2027

274,946

Year ending October 31, 2028

175,989

Total future undiscounted lease payments
 
$
884,686

Less: Interest

(67,579
)

Present value of lease liabilities
 
$
817,107

At January 31, 2025, the Company had no additional
leases which had not yet commenced.

Note 7 – Stockholders’ Equity

Series B Convertible Preferred Stock

On May 30, 2023, the Company issued 900,000 shares
of the Series B Preferred Stock as consideration for the GoFire asset purchase. The Series B Preferred Stock carries no voting rights
except: (i) with respect to the ability of the holders of a majority of the then outstanding Series B Preferred Stock (the “Majority
Holders”), to nominate a director to the Company’s board of directors, and (ii) that the vote of the Majority Holders is necessary
for effecting any amendment to the Company’s Certificate of Incorporation or Certificate of Designation that affects the Series
B Preferred Stock. The Series B Preferred Stock is redeemable at the option of the Company at a redemption price of $15 per share, subject
to potential downward adjustments based on the trading price of the Common Stock. Subject to additional limitations in the GoFire APA,
the Series B Preferred Stock holds seniority over the Common Stock and each other class of series of securities now existing or hereafter
authorized with respect to dividend rights, the distribution of assets upon liquidation, and dissolution and redemption rights. Upon a
liquidation and winding up of the Company, the holders of Series B Preferred Stock are entitled to a liquidation preference of $15 per
share (the “Liquidation Preference”), though the redemption may be adjusted downward based on the trading price of the Common
Stock at the time of liquidation. The holders of Series B Preferred Stock are entitled to receive a dividend equal to 2% of the Liquidation
Preference, accruing from the Closing Date and payable on the eighteen-month anniversary of the Closing Date. Amounts payable in