Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 42

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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interest adjustment of ($21,048) for the nine months ended September 30, 2025.

Liquidity
and Capital Resources

The
consolidated financial statements have been prepared using generally accepted accounting principles in the United States of America (“GAAP”)
applicable for a going concern, which assumes that the Company will realize its assets and discharge its liabilities in the ordinary
course of business.

To
the extent we are successful in growing our business both organically and through acquisition, we continue to plan our working capital
and the proceeds of any financing to finance such acquisition costs.

Liquidity
is the ability of a company to generate funds to support its current and future operations, satisfy its obligations and otherwise operate
on an ongoing basis. On September 30, 2025, we had a cash balance of $21,720. These funds are kept in financial institutions located
in United States.

As
of September 30, 2025, we had total current assets of $618,012, consisting of $21,720 in cash, accounts receivable of $175,447, prepaid
expenses of $180,519 and inventory of $240,326. Our total current liabilities as of September 30, 2025 were $4,207,484. We had a working
capital deficit of $5,533,322 as of September 30, 2025.

26

Our
ability to continue as a going concern is dependent upon our ability to carry out our business plan, achieve profitable operations, obtain
additional working capital funds from our significant shareholders, and or through debt and equity financings. However, there can be
no assurance that any additional financings will be available to us on satisfactory terms and conditions, if any.

The
accompanying 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.

Cash
Flows from Operating Activities

Operating
activities generated $1,990,985 in net cash received for the nine months ended September 30, 2025, compared with cash used of
$190,347 for the nine months ended September 30, 2024. Our positive operating cash flow for the nine months ended September 30,
2025, was largely the result of our net loss of $887,434 offset by non- cash expense for consulting services of $1