Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 56

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 56
---
 at September 30, 2025, and had a net loss of $(863,497) and $(933,749) and net
cash flow generated from operating activities of $1,990,985 and $(190,347) for the nine months ended September 30, 2025, and September
30, 2024 respectively.

The
Company has a limited operating history, and its continued growth is dependent upon the continuation of selling its products; hence generating
revenues and obtaining additional financing to fund future obligations and pay liabilities arising from normal business operations. These
matters raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue
as a going concern is dependent on the Company’s ability to raise additional capital, implement its business plan, and generate
significant revenues. There are no assurances that the Company will be successful in its efforts to generate significant revenues, maintain
sufficient cash balance or report profitable operations or to continue as a going concern. The Company plans on raising capital through
the sale of equity or debt instruments to implement its business plan. However, there is no assurance these plans will be realized and
that any additional financings will be available to the Company on satisfactory terms and conditions, if any.

    8

The
accompanying unaudited condensed consolidated financial statements do not include any adjustments related to the recoverability or classification
of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as
a going concern.

NOTE
2. SIGNIFICANT ACCOUNTING POLICIES

Uses
of estimates in the preparation of financial statements

The
preparation of financial statements in conformity with generally accepted accounting principles accepted in the United States of America
(“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net revenue and
expenses during each reporting period. Actual results could differ from those estimates.

On
April 10, 2025, the Company, through AIG F&B, closed a share exchange agreement with American Industrial Group (“AIG”),
pursuant to which AIG transferred select rights, assets, and business lines to AIG F&B in exchange for Acquisition Credits convertible
into shares of SNBH common stock under a performance-based earnout structure. These assets include proprietary beverage and first-aid
product formulations,