Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 51

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 51
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, and use is based on the fair value of the asset. Long-lived assets and certain identifiable
intangible assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.

Recently Issued and Adopted Accounting Standards

From time to time, new accounting pronouncements are
issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting
and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the
effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material
to its financial position, results of operations, and cash flows when implemented.

    9 

NOTE 3. INVENTORIES

Inventories are stated at the lower of cost and
net realizable value. Cost is determined using the moving average method and net realizable value is the estimated selling price
less costs of disposal in the ordinary course of business. The cost of inventories includes direct costs plus shipping and packaging
materials. At December 31, 2023 based on a sale quote received in April 2024 for its remaining inventory, the Company recorded a
charge of $63,477
to write down the inventory to its net realizable value of $150,000.
The Company did not consummate a sale of the inventory. As a result, on September 30, 2024, the Company recorded an additional
charge of $150,000
reducing the value of the inventory on hand to $0.
As of June 30, 2025 and December 31, 2024, the Company product inventories are contained in a storage and fulfilment center located
at City Logistics in Fairfield, NJ.

As discussed in Note 1, On May 12, 2025, the Company, through its
wholly owned subsidiary AIG F&B, acquired Assets raw materials of $213,220 and finished goods of $70,232 from American Industrial
Group, Inc. This inventory is all expected to be sold or used in production in the immediate future. 

NOTE 4. CONVERTIBLE NOTES PAYABLE

Since the change of control of the Company in May
2018, the Company received advances from Pure Energy 714 LLC, an unaffiliated entity, totaling $240,803. On March 15, 2019, specific terms
were reached on $70,757 of