Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 415

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 2
Chunk 415
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 common stock from exercises of warrants for total consideration of $385,746.

During the year ended October 31, 2024, the Company
issued 1,400,144
shares of common stock to settle the related party payable to Bidi of $1,275,000.
The Company recognized a loss on the settlement of the payable of $142,786.

During the year ended October 31, 2023, the Company
issued 95,239
shares of Common Stock as consideration for the acquisition of the GoFire Purchased Assets. The Company also issued 4,381
shares of Common Stock as compensation for advisory services rendered in connection with the GoFire APA. See Note 4.

During the year ended October 31, 2023, the Company
issued 19,048
common shares with a value of $130,478
as part of a loan issued on August 9, 2023.

June 2024 Public Offering

On June 21, 2024, the Company entered into a securities
purchase agreement (the “Purchase Agreement”) with the certain purchasers (the “Purchasers) for the purchase and sale
of an aggregate of $5,393,250 of the Company’s securities consisting of 3,525,000 units (the “Units’). With respect
to (i) 1,350,000 of the Units (the “Common Units”), each such Common Unit consisted of one share of the Company’s common
stock, par value $0.001 per share (“Common Stock”) and one and one-half common warrants (“Common Warrants”) to
purchase one and one-half shares of Common Stock and (ii) the other 2,175,000 Units (the “Pre-funded Units”), each such Pre-funded
Unit consisted of a pre-funded warrant (“Pre-funded Warrant”) to purchase one share of Common Stock and one and one-half Common
Warrants. Pursuant to the Purchase Agreement, the Common Units were sold at a purchase price of $1.53 per Unit and the Pre-funded Units
were sold at a purchase price of $1.529 per Unit. The sale of the Units to the Purchasers closed on June 24, 2024 (the “Closing
Date”). The Company also sold 396,500 Common Units to additional investors, who did not enter into the Purchase Agreement, under
the same terms sold to Purchasers. The sale of securities by the Company pursuant to the Purchase Agreement