Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 50

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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 Directors or an authorized committee.

Income Taxes 

The Company’s income tax benefit differs from
the expected income tax benefit by applying the U.S. Federal statutory rate of 21% to net income (loss) as follows:

The tax effects of temporary differences that give
rise to the Company’s net deferred tax liability as of June 30, 2025 and December 31, 2024 are as follows:

 Schedule
of net deferred tax liability

June
30, 
2025
 
December
31,
2024

Deferred
Tax Assets

Net
Operating Losses
 
$
1,167,025

$
980,663

Less:
Valuation Allowance

(1,167,025
)

(980,663
)

Deferred
Tax Assets - Net
 
$
—

$
—

Deferred
taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and
operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences.
Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax
assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all
of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax
laws and rates on the date of enactment. The U.S. federal income tax rate is 21%.

Segment Reporting

The Company applies ASC 280, Segment Reporting, in
determining reportable segments for its financial statement disclosure. Operating segments are defined as components of an entity for
which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”)
in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive
Officer (“CEO”). The Company has determined that it operates as a single operating segment and has one reportable segment.

Impairment of Long-Lived Assets

Long-lived assets and certain identifiable intangible
assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of
such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting
from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets and certain identifiable
intangible assets that management expects to hold