Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 89

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 89
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 or mistake. Additionally,
controls can be circumvented if there exists in an individual a desire to do so. There can be no assurance that any design will succeed
in achieving its stated goals under all potential future conditions.

Remediation
Plan to Address the Material Weaknesses in Internal Control over Financial Reporting

A
material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is
a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected
on a timely basis. Management identified the following three material weaknesses that have caused management to conclude that, as of
September 30, 2025, our disclosure controls and procedures, and our internal control over financial reporting, were not effective at
the reasonable assurance level:

28

    1.
    We
    do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls
    over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act as of the period ending March 31, 2025. Management
    evaluated the impact of our failure to have written documentation of our internal controls and procedures on our assessment of our
    disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.
  
    2.
    We
    do not have sufficient segregation of duties within accounting functions, which is a basic internal control. Due to our size and
    nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent
    possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate
    individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls
    and procedures and has concluded that the control deficiency that resulted represented a material weakness.
  
    3.
    Effective
    controls over the control environment were not maintained. Specifically, a formally adopted written code of business conduct and
    ethics that governs our employees, officers, and directors was not in place. Additionally, management has not developed and effectively
    communicated to employees its accounting policies and procedures. This has resulted in inconsistent practices. No director qualifies
    as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level programs have
    a pervasive effect across the organization, management