Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 109

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 109
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funds, particularly if we are unable to generate positive cash flow as a result of our operations. We estimate that based on current plans
and assumptions, that our available cash will be insufficient to satisfy our cash requirements under our present operating expectations.
Other than working capital and advance received from related parties and funds received pursuant to securities purchase agreements, we
presently have no other significant alternative source of working capital. We have used these funds to fund our operating expenses, pay
our obligations and grow our company. We will need to raise significant additional capital to fund our operations and to provide working
capital for our ongoing operations and obligations. Therefore, our future operation is dependent on our ability to secure additional financing.
Financing transactions may include the issuance of equity or debt securities, obtaining credit facilities, or other financing mechanisms.
However, the trading price of our common stock and a downturn in the U.S. equity and debt markets could make it more difficult to obtain
financing through the issuance of equity or debt securities. Even if we are able to raise the funds required, it is possible that we could
incur unexpected costs and expenses or experience unexpected cash requirements that would force us to seek alternative financing. Furthermore,
if we issue additional equity or debt securities, stockholders may experience additional dilution or the new equity securities may have
rights, preferences or privileges senior to those of existing holders of our common stock. The inability to obtain additional capital
may restrict our ability to grow and may reduce our ability to continue to conduct business operations. If we are unable to obtain additional
financing, we will be required to cease our operations. To date, we have not considered this alternative, nor do we view it as a likely
occurrence.

Going Concern

The Company’s financial statements have been prepared on a going concern
basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business. During
the year ended December 31, 2024, the Company incurred a net loss of $1,136,446. The Company had an accumulated deficit of $4,669,826
and a working capital deficit of $2,206,318 and $1,957,552 as of December 31, 2024 and 2023, respectively. These factors, among others,
raise substantial doubt about the Company’s ability to continue as a going concern.

Off-balance Sheet Arrangements

We do not have any off-balance sheet arrangements
that have or are reasonably