Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 199

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1B
Chunk 199
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 our fiscal years ending on December 31,
2024 and 2023. We have summarized our most significant accounting policies.

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.

Cash

The Company considers all short-term highly liquid
investments with an original maturity date of purchase of three months or less to be cash equivalents.

Revenue Recognition

During the years ended December 31, 2024 and 2023,
our revenue recognition policy was in accordance with ASC 606, “Revenue from Contracts with Customers”, which requires the
recognition of sales following five steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in
the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract,
and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

Net loss per common share – basic and
diluted

Authoritative guidance on Earnings per Share requires
dual presentation of basic and diluted earnings or loss per share (“EPS”) for all entities with complex capital structures
and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted
EPS computation. Basic EPS excludes dilution; diluted EPS reflects the potential dilution that could occur if securities or other contracts
to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the
earnings of the entity.

Basic loss per share is computed by dividing net loss
applicable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted loss per share
reflects the potential dilution that could occur if dilutive securities and other contracts to issue common stock were exercised or converted
into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company, unless the effect is to
reduce a loss or increase earnings per share.

Stock-based compensation

In accordance with ASC No. 718, Compensation –
Stock Compensation