Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 31

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 are offset when they related to income taxes levied by the same taxation
authority and we intend to settle its current tax assets and liabilities on a net basis.

Stock-based Compensation

Stock based compensation is accounted for based on
the requirements of the Share-Based Payment topic of Accounting Standards Codification (“ASC”) 718 which requires recognition
in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over
the period the employee or director is required to perform the services in exchange for the award. The Accounting Standards Codification
also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair
value of the award.

Pursuant to ASC Topic 505-50, for share-based payments
to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized
over the period of services or the vesting period, whichever is applicable. Until the measurement date is reached, the total amount of
compensation expense remains uncertain. We record compensation expense based on the fair value of the award at the reporting date. The
awards to consultants and other third parties are then revalued, or the total compensation is recalculated based on the then current fair
value, at each subsequent reporting date.

20 

Recent Accounting Pronouncements

Other accounting standards
that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact
on our consolidated financial statements upon adoption. We do not discuss recent pronouncements that are not anticipated to have an impact
on or are unrelated to our consolidated financial condition, results of operations, cash flows or disclosures.

RESULTS OF OPERATIONS

Comparison of Results of Operations for the three
months ended June 30, 2025 and 2024

Revenue

We generated revenue of 110,600
during the three months ended June 30, 2025. The revenue was generated through our new subsidiary AIG F&B which we acquired in April
2025 and began operations in May 2025. The revenue consisted of shipments of bottled water to independent but
related parties. We did not generate any revenue
during the three months ending June 30, 2024.

Gross Margin

We had a negative gross margin
of $4,512 for the three months ended June 30, 2025 due to shipping and other start up costs. There was no gross margin for