Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 29

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1
Chunk 29
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 were subject to a lock-up agreement that terminated on November 26, 2023.

2024 Reverse Stock Split

On
January 22, 2024, the
Company filed a Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation with the Secretary
of State of the State of Delaware to affect a 1-for-21 reverse stock split (the “2024 Reverse Stock Split”) of the shares
of the Common Stock. The 2024 Reverse Stock Split was effective on January 25, 2024, on the Nasdaq Stock Market. No fractional shares
were issued in connection with the 2024 Reverse Stock Split. Any fractional shares of the Company’s Common Stock that would have
otherwise resulted from the 2024 Reverse Stock Split were rounded up to the nearest whole number. In connection with the 2024 Reverse
Stock Split, the Board approved appropriate and proportional adjustments to all outstanding securities or other rights convertible or
exercisable into shares of the Common Stock, including, without limitation, all preferred stock, warrants, options, and other equity
compensation rights. All historical share and per-share amounts reflected throughout the accompanying consolidated financial statements
in this Report have been retroactively adjusted to reflect the 2024 Reverse Stock Split as if the split occurred as of the earliest period
  presented. The par value per share of the Common
Stock was not affected by the 2024 Reverse Stock Split.

Bidi Debt Exchange Agreement

On October 25, 2024 we entered the Debt Exchange Agreement
with Bidi pursuant to which we satisfied an outstanding debt of $1,275,000 we owed to Bidi under the A&R Distribution Agreement by
the issuance of 1,400,144 shares of our common stock to Bidi.

Item 1A. Risk Factors.

Our business and an investment
in our company is speculative and subject to significant risks. We caution you that the following important factors, among
others, could cause our actual results to differ materially from those expressed in forward-looking statements made by us or on our behalf
in filings with the SEC, press releases, communications with investors and oral statements. Any or all of our forward-looking statements
contained in this Report and in any other public statements we make may turn out to be wrong. They can be affected by inaccurate assumptions
we might make or by known or unknown risks and uncertainties. Many factors mentioned in the discussion below will be important in determining
future results. Consequently