Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 768

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 9B
Chunk 768
---
 the inventory. As a result,
on September 30, 2024, the Company recorded an additional charge of $150,000 reducing the value of the inventory on hand to $0.

As of December 31, 2024 and December 31, 2023, the
Company product inventories are contained in a storage and fulfilment center located at City Logistics in Fairfield, NJ.

NOTE 5. CONVERTIBLE NOTES PAYABLE

Since the change of control of the Company in May
2018, the Company received advances from Pure Energy 714 LLC, an unaffiliated entity, totaling $240,803. On March 15, 2019, specific terms
were reached on $70,757 of the advances pursuant to an unsecured convertible promissory note entered into between the Company and Pure
Energy 714 LLC, the terms call for repayment of the advances including interest on any unconverted principal amount at a rate of 4% per
annum and a repayment date on or before August 15, 2022. Additional terms include a voluntary conversion option, pursuant to which Pure
Energy 714 LLC may convert any outstanding balance at $0.05 per share into shares of common stock. On January 3, 2020, specific terms
were reached on the remaining $170,046 of the advances pursuant to an unsecured demand note. See Note 6. Accrued interest on this note
totaled $20,875 including default interest of $7,353 at December 31, 2024 and $16,630 including default interest of $3,108 at December
31, 2023. On February 26, 2025, the lender converted 100% of the debt and all of the accrued interest into 4,181,284 shares of the Company’s
common stock.

    F-10

On December 2, 2020, we issued a promissory note to
an accredited investor in consideration for $50,000 with interest at the rate of 10% per annum from the issue date, and also issued to
the accredited investor a common stock purchase warrant (the “Warrant”) to acquire 400,000 shares of common stock. The Warrant
is exercisable for a period of five years at an exercise price of $0.01. This note will mature on the earlier of (i) closing of the next
equity financing of at least $1,000,000 or (ii