Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 450

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 6
Chunk 450
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 investors would lose their entire investment in our company.

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.

Critical Accounting Policies
and Estimates

Our discussion and analysis
of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in
accordance with accounting principles generally accepted in the United States. The preparation of these consolidated financial statements
requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related
disclosure of contingent assets and liabilities. We continually evaluate our estimates, including those related to bad debts, recovery
of long-lived assets, income taxes and the valuation of equity transactions.

We base our estimates on
historical experience and on various other assumptions that we believed to be reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.
Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues, expenses, assets
and liabilities. Actual results may differ from these estimates under different assumptions or conditions. We believe the following critical
accounting policies affect our more significant judgments and estimates used in the preparation of the consolidated financial statements.

22

Revenue Recognition

We recognize revenue when
persuasive evidence of an arrangement exists, delivery has occurred or products have been sold, the purchase price is fixed or determinable
and collectability is reasonably assured.

Our customers place orders
for our products pursuant to their purchase orders and we are paid by our customers pursuant to our invoices. Each invoice calls for a
fixed payment in a fixed period of time. We recognize revenue by selling our products under our customers’ purchase orders and our
related invoices to our customers. Revenue related to the sales of our products to our customers is recognized as the products are sold
and amounts are paid, using the straight-line method over the term of the sales transaction. Prepayments, if any,