Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 205

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1A
Chunk 205
---
 related party accounts payable
 
$
1,417,786

Common shares issued for acquisition of intangible assets
 
$
—

$
1,119,800

Common shares issued for services-transaction cost
 
$
—

$
51,510

Series B preferred stock shares issued for acquisition of intangible assets
 
$
—

$
9,047,980

Stock warrants issued for acquisition of intangible assets
 
$
—

$
1,264,396

Common stock issued for note payable financing
 
$
—

$
130,478

The accompanying notes are an
integral part of these consolidated financial statements.

F-6

KAIVAL BRANDS INNOVATIONS GROUP, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Organization and Description of Business

Kaival Brands Innovations Group, Inc. (the “Company,”
the “Registrant,” “we,” “us,” or “our”), formerly known as Quick Start Holdings, Inc.,
was incorporated on September 4, 2018, in the State of Delaware.

Description of Business

On March 9, 2020, the Company entered into an exclusive
distribution agreement (the “Distribution Agreement”) of certain electronic nicotine delivery systems (“ENDS”)
and related components (the “Products”) with Bidi Vapor, LLC, a Florida limited liability company (“Bidi”). The
Distribution Agreement was amended and restated on May 21, 2020, again on April 20, 2021, again on June 10, 2022,
and again on November 17, 2022 (collectively the “A&R Distribution Agreement”), in order to clarify some of the
provisions and memorialize the Company’s current business relationship with Bidi. Pursuant to the A&R Distribution Agreement,
Bidi granted the Company an exclusive worldwide right to distribute the Products for sale and resale to non-retail level customers. Currently,
the Products consist primarily of the “Bidi Stick.”

On August 31, 2020, the Company formed Kaival Labs,
Inc., a Delaware corporation (herein referred to as “Kaival Labs”), as a wholly owned subsidiary of the Company, for the purpose
of developing Company-branded and white-label products and services. The Company has not yet launched any Kaival-branded product, nor
has it begun to provide white label wholesale solutions for other product manufacturers. On March 11, 2022, the Company formed Kaival
Brands