Company: KAVL
Filing Date: 2025-08-18
Form Type: 424B5
Source: 0001731122-25-001141
Chunk: 20

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-08-18
Form: 424B5
Chunk 20
---

securities and other short-term investment grade, marketable securities.

<div align='center'>DIVIDEND POLICY</div>

We have never declared or paid any cash dividends
on our capital stock and we do not currently intend to pay any cash dividends on our common stock in the foreseeable future. We expect
to retain all available funds and future earnings, if any, to fund the development and growth of our business. Any future determination
to pay dividends, if any, on our common stock will be at the discretion of our Board of Directors and will depend on, among other factors,
our results of operations, financial condition, capital requirements and contractual restrictions.

<div align='center'>DILUTION</div>

Our net tangible book value
as of April 30, 2025 was $353,229 or $0.03 per share. Net tangible book value per share is determined by dividing our total tangible assets,
less total liabilities, by the number of shares of our common stock outstanding as of April 30, 2025. Dilution with respect to net tangible
book value per share represents the difference between the amount per share paid by purchasers of shares of common stock in this offering
and the net tangible book value per share of our common stock immediately after this offering.

After giving effect to the sale of 1,872,181 shares of our common stock pursuant
to the Sales Agreement in this offering at an assumed offering price of $0.8298 per share, which was the last reported sale price of our
common stock on the Nasdaq Capital Market on August 15, 2025, and after deducting estimated offering commissions and estimated offering
expenses payable by us, our as adjusted net tangible book value as of April 30, 2025 would have been approximately $1,761,765 , or $0.13
per share. This represents an immediate increase in net tangible book value of $0.10 per share to existing stockholders and an immediate
dilution of $0.698 per share to new investors purchasing securities in this offering. The following table illustrates this per share dilution:

| Assumed public offering price per share                                                                  |     | $ | 0.829 |
| Net tangible book value per share as of April 30, 2025                                                   |     | $ |  0.03 |
| Increase in net tangible book value per share attributable to this offering                              |     | $ |  0.10 |
| As adjusted net tangible