Company: KAVL
Filing Date: 2025-03-17
Form Type: 10-Q
Source: 0001731122-25-000399
Chunk: 26

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-03-17
Form: 10-Q
Item: Item 1
Chunk 26
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 2025, the Company had zero accrued dividend payable to Series
B shareholders and   no further dividends will be accrued or paid.  

    F-17 

Pursuant to the GoFire APA, the Company
is required to use commercially reasonable efforts to register the APA Shares and Warrant Shares with the SEC for distribution to GoFire’s
stockholders and/or public resale by such stockholders within 180 days of the Closing Date. In addition, if any Series B Preferred Stock
remains outstanding nineteen (19) months after the Closing Date, the Company shall use commercially reasonable efforts to file with the
SEC a subsequent registration statement registering the distribution to GoFire’s stockholders and/or public resale Series B Conversion
Shares by such stockholders. If such subsequent registration statement is required, the Company will use its commercially reasonable efforts
to obtain effectiveness of such subsequent registration statement within nineteen (19) months of the Closing Date, and if the Company
does not so register the Series B Conversion Shares within nineteen (19) months of the Closing Date, the Company will issue to GoFire
or its designee an additional ten percent (10%) of all of the Series B Conversion Shares underlying the then outstanding shares of Series
B Preferred Stock. All of the securities issued as consideration for the Purchased Assets are subject to a lock-up agreement that terminates
one hundred eighty (180) days from the Closing Date. As of January 31, 2025, the Company made an accrual for the additional ten percent
(10%) of all of the Series B Conversion Shares of $39,283.

Common Stock

During the three months ended January 31, 2025, the
Company issued 3,025,000 fully vested shares of common stock to directors, officers and an employee pursuant to grants under the Company’s
Amended and Restated 2020 Stock and Incentive Compensation Plan. During the three months ended January 31, 2025, the Company recognized
stock compensation cost of $2,873,750.

    F-18 

Stock Options

Summary of stock options information is as follows:

Schedule of stock options information

Aggregate
 
Aggregate
 
Exercise Price
 
WA Exercise

Number
 
Exercise Price
 
Range
 
Price

Outstanding, October 31, 2024

189,590

$
6,847,736

$
3.64-602.28

$
36.12

Granted

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