Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 9

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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rights supporting the Company’s future roadmap.

    6

On
September 30, 2025, effective October 1, 2025, the Company, through Wyoming
Bears, Inc. (“WYB”), closed a share exchange agreement with the Founders, pursuant to which Founders transferred select rights,
assets, and business lines to WYB in exchange for Acquisition Credits convertible into shares of SNBH common stock under a performance-based
earnout structure. These assets include proprietary distribution relationships and brand distribution rights relevant to the Company’s
enterprise. As a result of the effective date of the transaction, no results for WYB were in included in the financial statements presented
herein.

The
consideration structure for each acquired company is performance-contingent and subject to regulatory holding periods, lock-up agreements,
and earnout milestones tied to revenue, EBITDA, and appraised asset value. The Acquisition Credits may be converted to equity upon the
achievement of defined benchmarks over a multi-year horizon.

This
transaction significantly enhances the Company’s balance sheet and operating capacity, supporting its ability to develop new revenue-generating
products and pursue future acquisitions aligned with its mission.

The
Company’s leadership team brings experience from global consumer brands and retailers, including Original New York Seltzer, Disney,
Hugo Boss, Victoria’s Secret, Versace, Bath & Body Works, and Walmart. Leveraging this expertise, through its partnership with
American Industrial Group, SNBH is positioned to capitalize on strategic sourcing, the ability to manufacture locally with a global footprint,
and global distribution networks across omnichannel platforms for high-growth, high-margin brands, while maintaining cash-flow positive
operations at all subsidiaries. The Company continues to execute its 24-month acquisition pipeline and to seek growth through synergistic
acquisitions, innovation in consumer packaged goods, in food, beverage, pet-care, healthcare, and emergency markets, as well as strategic
brand partnerships. Management believes these initiatives, supported by scalable operations and established institutional relationships,
will enable sustainable value creation for shareholders.

On
December 9, 2020, the Company filed a Certificate of Amendment of Articles of Incorporation (the “Certificate”) with the
State of California to (i) effect a forward stock split of its outstanding shares of common stock at a ratio of 7 for 1 (7:1) (the “Forward
Stock Split”), (ii) increase the number of authorized shares of common stock from 50,000,000 shares