Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 18

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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280, Segment Reporting, in determining reportable segments for its financial statement disclosure. Operating segments
are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief
Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance.
The Company’s CODM is its Chief Executive Officer (“CEO”). The Company has determined that it operates as a single
operating segment and has one reportable segment.

Impairment
of Long-Lived Assets

Long-lived
assets and certain identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted
future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived
assets and certain identifiable intangible assets that management expects to hold, and use is based on the fair value of the asset. Long-lived
assets and certain identifiable intangible assets to be disposed of are reported at the lower of carrying amount or fair value less costs
to sell.

Recently
Issued and Adopted Accounting Standards

From
time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that
may have an impact on the Company’s accounting and reporting. The Company believes that such recently issued accounting pronouncements
and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting
or that such impact will not be material to its financial position, results of operations, and cash flows when implemented.

    12

NOTE
3. INVENTORIES

Inventories
are stated at the lower of cost and net realizable value. Cost is determined using the moving average method and net realizable value
is the estimated selling price less costs of disposal in the ordinary course of business. The cost of inventories includes direct costs
plus shipping and packaging materials. At December 31, 2023 based on a sale quote received in April 2024 for its remaining inventory,
the Company recorded a charge of $63,477 to write down the inventory to its net realizable value of $150,000. The Company did not consummate
a sale of the inventory. As a result, on September 30, 2024, the Company recorded an additional charge of $150,000