Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 7

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 7
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 prospects.

We may fail to successfully execute our business
plan.

Our shareholders may lose their entire investment
if we fail to execute our business plan. Our prospects must be considered in light of the following risks and uncertainties, including
but not limited to, competition, the erosion of ongoing revenue streams, the ability to retain experienced personnel and general economic
conditions. We cannot guarantee that we will be successful in executing our business plan. If we fail to successfully execute our business
plan, we may be forced to cease operations, in which case our shareholders may lose their entire investment.

We have a history of losses and may have to
further reduce our costs by curtailing future operations to continue as a business.

Historically we have had operating losses and our
cash flow has been inadequate to support our ongoing operations. For the year ended December 31, 2024, we had a net loss of $1,136,446,
and as of December 31, 2024, we had an accumulated deficit of $4,669,826 and a working capital deficit of $2,291,318. Our ability to fund
our capital requirements out of our available cash and cash generated from our operations depends on a number of factors, including our
ability to gain market acceptance of our products and continue growing our existing operations. If we cannot generate positive cash flow
from operations, we will have to reduce our costs and try to raise working capital from other sources. These measures could materially
and adversely affect our ability to execute our operations and expand our business.

5

The Company may suffer from lack of availability
of additional funds.

We expect to have ongoing needs for working capital
in order to fund operations and to continue to expand our operations. To that end, we may be required to raise additional funds through
equity or debt financing. However, there can be no assurance that we will be successful in securing additional capital on favorable terms,
if at all. If we are successful, whether the terms are favorable or unfavorable, there is a potential that we will fail to comply with
the terms of such financing, which could result in severe liability for our Company. If we are unsuccessful, we may need to (a) initiate
cost reductions; (b) forego business development opportunities; (c) seek extensions of time to fund liabilities, or (d) seek protection
from creditors. In addition, any future sale of our equity securities would dilute the ownership and control of your shares and could
be at prices