Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 54

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1
Chunk 54
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 Nasdaq, we
cannot assure you that we will be able to comply with the standards that we are required to meet in order to maintain a listing of our
Common Stock on Nasdaq in the future. Nasdaq listing rules require us to maintain certain closing bid price, stockholders’ equity,
and other financial metric criteria, as well as certain corporate governance requirements, for our Common Stock to continue trading on
Nasdaq. If we fail to comply with the continued listing standards, our Common Stock could be delisted.

30

We
                                            have been subject to Nasdaq listing deficiency issues in the past.

There can be no assurances given that we will be able
to cure any listing deficiencies related to our company. A failure to maintain listing on Nasdaq could have a material adverse effect
on the liquidity and price of our Common Stock.

Future sales of shares of our Common Stock by
our controlling shareholders or by our officers and directors may negatively impact the market price for our Common Stock. 

Subject to
compliance with applicable securities laws, our controlling   shareholders
Kaival Holdings and Bidi Vapor as well as our directors and officers and their affiliates may sell some or all of their shares of
our Common Stock in the future. No prediction can be made as to the effect, if any, such future sales of shares of our Common Stock
may have on the market price of the shares of our Common Stock prevailing from time to time. However, the future sale of a
substantial number of shares of our Common Stock by our directors and officers and their affiliates, or the perception that such
sales could occur, could adversely affect prevailing market prices for our shares of our Common Stock.

The concentration of ownership by Kaival Holdings and Bidi Vapor and our officers
and directors may result in conflicts of interest and may prevent other stockholders from influencing significant corporate decisions
and depress our stock price.

Based
on the number of shares outstanding as
of as of the date of this Report, Kaival Holdings and Bidi Vapor, our affiliated majority stockholder, together with our officers and
directors, beneficially own a combined total of approximately 51.6%   percent
of our outstanding Common Stock, including shares of our Common Stock subject to stock options that are currently exercisable or are exercisable
and that vest within 60 days as of the date of this prospects. If our controlling stockholders, together with these officers and directors
act together, they will be able to exert a significant degree of influence