Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 47

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 47
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 and that any additional financings
will be available to the Company on satisfactory terms and conditions, if any.

    6 

The accompanying unaudited condensed 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.

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

Uses of estimates in the preparation of financial statements

The preparation of financial statements in conformity
with generally accepted accounting principles accepted in the United States of America (“GAAP”) requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of net revenue and expenses during each reporting period. Actual results
could differ from those estimates.

As noted above, On May 12, 2025, the Company, through
its wholly owned subsidiary AIG F&B, acquired Assets totaling $595,441 from American Industrial Group, Inc. (“AIG”). The
Company acquired machinery and equipment of $77,044, Inventory for sale of $283,452 and accounts receivable and other assets of $234,945.
The transaction has been accounted for as an asset acquisition pursuant to ASC 805-50, Business Combinations – Related Issues,
as the acquired set of assets and activities did not meet the definition of a business. As such, the total consideration transferred,
including direct transaction costs, has been allocated to the individual identifiable assets acquired and liabilities assumed on a relative
fair value basis as of the acquisition date.

In accordance with the guidance applicable to asset acquisitions:

  ●
  Transaction
  costs directly attributable to the acquisition have been capitalized as part of the cost of the acquired assets.

  ●
  No goodwill has been recognized, as
  the transaction did not qualify as a business combination under ASC 805-10.

  ●
  The asset
  values presented reflect the relative fair value allocation of the total purchase price among the identifiable assets acquired.

  ●
  The financial
  statements do not include the results of operations or cash flows of the acquired assets prior to the acquisition date.

These financial statements are intended to provide users with historical
information on the assets acquired and should be read in conjunction with the accompanying notes and the full financial statements of
the Company.

Cash

The Company considers all short-term highly liquid
investments with an