Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 48

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 48
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 original maturity date of purchase of three months or less to be cash equivalents.

Revenue Recognition

During the three and six months ended June 30, 2025
and the year ended December 31, 2024, 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 (“ASC 718”), the Company measures the compensation costs of share-based compensation arrangements based
on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to
provide services.

During the six months ended June 30, 2025, and 2024,
there were no stock based awards issued or outstanding.

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Fair value of financial instruments

We value our financial assets and liabilities on a
recurring basis using the fair value hierarchy established in Accounting Standards Codification (“ASC”) 820, Fair Value Measurements
and Disclosures.

ASC 820 describes three levels of inputs