Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 85

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 85
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 liabilities of the acquired companies;

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insufficient indemnification or security from the selling parties for legal liabilities that we may assume in connection with our acquisitions;

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entering markets in which we have no prior experience and may not succeed;

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risks associated with foreign acquisitions, such as communication and integration problems resulting from geographic dispersion and language and cultural differences, compliance with foreign laws and regulations and general economic or political conditions in other countries or regions;

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potential loss of key employees of the acquired companies; and

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impairment of relationships with clients and employees of the acquired companies or our clients and employees as a result of the integration of acquired operations and new management personnel.  

Our management team’s attention may be
diverted by recent acquisitions and searches for new acquisition targets, and our business and operations may suffer adverse consequences
as a result.

Mergers and acquisitions are time intensive, requiring
significant commitment of our management team’s focus and resources. If our management team spends too much time focused on recent
acquisitions or on potential acquisition targets, our management team may not have sufficient time to focus on our existing business and
operations. This diversion of attention could have material and adverse consequences on our operations and our ability to be profitable.

We may be unable to scale our operations successfully.

Our growth strategy will place significant demands
on our management and financial, administrative and other resources. Operating results will depend substantially on the ability of our
officers and key employees to manage changing business conditions and to implement and improve our financial, administrative and other
resources. If the Company is unable to respond to and manage changing business conditions, or the scale of its operations, then the quality
of its services, its ability to retain key personnel, and its business could be harmed.

The Company may suffer from a lack of liquidity.

By incurring indebtedness, the Company subjects itself
to increased debt service obligations which could result in operating and financing covenants that would restrict our operations and liquidity.
This would impair our ability to hire the necessary senior and support personnel required for our business, as well carry out its acquisition
strategy and other business objectives.

Economic conditions or changing consumer preferences
could adversely impact our business.

A downturn in economic conditions in one or more of
the Company’s markets could have a material adverse effect on our results of operations, financial condition, business and prospects
– especially in light of the fact that we are selling products generally considered non-essential and/or discretionary. Although
we attempt to