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

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 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 original maturity date of purchase of three months or less to be cash equivalents.

Revenue Recognition

During the three and six months ended June 30, 2025
and the year ended December 31, 2024, our revenue recognition policy was in accordance with ASC 606, “Revenue from Contracts with
Customers”, which requires the recognition of sales following five steps: (i) identify the contract(s) with a customer, (ii) identify
the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance
obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

Net loss per common share – basic and
diluted

Authoritative guidance on Earnings per Share requires
dual presentation of basic and diluted earnings or loss per share (“EPS”) for all entities with complex capital structures
and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted
EPS computation. Basic EPS excludes dilution; diluted EPS reflects the potential dilution that could occur if securities or other contracts
to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the
earnings of the entity.

Basic loss per share is computed by dividing net loss
applicable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted loss per share
reflects the potential dilution that could occur if dilutive securities and other contracts to issue common stock were exercised or converted