Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 588

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 4
Chunk 588
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 life of 15.0 years with a weighted average remaining useful life of 13.7 years and 14.6
years as of October 31, 2024 and October 31, 2023, respectively.

The Company recognized an amortization expense of
$786,398 and $327,666 for the years then ended October 31, 2024 and 2023, respectively. Amortization expense is included under general
and administrative expenses in the consolidated statements of operations.

Future amortization expense of intangible assets is as follows:

    Schedule of future amortization expense of intangible assets  

    Year ending October
    31, 2025  
    $786,398 
  
    Year ending October 31, 2026  
     786,398 
  
    Year ending October 31, 2027  
     786,398 
  
    Year ending October 31, 2028  
     786,398 
  
    Year ending October 31, 2029  
     786,398 
  
    Thereafter  
     6,749,921 
  
    Total  
    $10,681,911 

Note 6 – Loans Payable

Insurance Loans

On May 10, 2024, the Company obtained two insurance
loans. The first loan is a nine-month loan from First Insurance Bank to finance the annual D&O insurance, with the principal amount
of $381,077 and subject to an effective interest rate of 7.45%. The second loan is a nine-month loan from IPFS Corporation to finance
the annual D&O insurance, with the principal amount of $94,404 and subject to an effective interest rate of 11.15%. As of October
31, 2024, the outstanding balance of the Insurance loans amounted to $207,616.

On May 20, 2023, the Company obtained a
nine-month loan from Westfield Bank to finance the annual D&O insurance. The principal amount was $342,001
and subject to an effective interest rate of 7.79%.
As of October 31, 2024, and October 31, 2023, the remaining balance was zero 0and
$152,000,
respectively.

Loan Agreements

On May 9, 2023, the Company entered into two loan
agreements which are collateralized by all assets of