Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 40

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 40
---
parties. We did not generate any revenue during the nine months ending June 30, 2024.

Gross
Margin

We
had a positive gross margin of $184,886 for the nine months ended September 30, 2025 due to the sales through our new subsidiary AIG
F&B, which we acquired in April 2025 and began operations in May 2025, and Aqua Emergency, which we acquired in July of 2025 and
began operations in July 2025. There was no gross margin for the nine months ended September 30, 2024.

Operating
Expenses

For
the nine months ended September 30, 2025 and 2024, operating expenses consisted of the following:

    2025 
    2024

    Advertising and marketing 
     7,200  

    General and Administrative 
     70,900  
     43,026 
  
    Legal and Professional 
     519,693  
     409,178 
  
    Management Fees 
     391,305  
     140,000 
  
    Write off excess inventory 
     —  
     150,000 

    TOTAL OPERATING EXPENSES 
     989,098  
     742,204 

    ●
    Advertising and marketing expenses
    for the nine months ended September 30, 2025 and 2024 was $7,200 and $0, respectively.  The expense in 2025 was for tradeshow
    expenses.

    ● 
    General and administrative fees totaled $70,900
    for the nine months ended September 30, 2025 representing an increase of $27,874 compared to the total of $43,026 for the nine months
    ended September 30, 2024. The increase is attributable to the acquisition of the two new subsidiaries, while conducting aggressive
    reorganization and cost cutting measures as well as efficiencies and ability to leverage American Industrial Group platform, infrastructure
    and capabilities after AIG F&B share exchange agreement. The current fees relate to office expenses, bank fees, fees associated
    with public company expenses.

25

●
Legal and professional fees primarily
consisted of accounting fees, legal service fees, consulting fees, investor relations and other fees incurred for service related to
being a public company. For the nine months ended September 30, 2025, professional fees totaled $519