Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 35

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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, respectively and
a working capital deficit of $3,589,472 and $2,206,318 at September 30, 2025 and December 31, 2024, respectively. The report of our independent
registered public accounting firm on our financial statements for the year ended December 31, 2024 contained an explanatory paragraph
regarding our ability to continue as a going concern based upon cash used in operating activities and the current cash balance cannot
be projected to cover the operating expenses for the next twelve months from the release date of this report. These factors, among others,
raised substantial doubt about our ability to continue as a going concern. Our financial statements appearing elsewhere in this report
do not include any adjustments that might result from the outcome of this uncertainty. There are no assurances we will be successful
in our efforts to generate significant revenues or report profitable operations or to continue as a going concern, in which event investors
would lose their entire investment in our company.

Our
ability to continue as a going concern is dependent upon our ability to carry out our business plan, achieve profitable operations, obtain
additional working capital funds from our significant shareholders, and or through debt and equity financings. However, there can be
no assurance that any additional financings will be available to us on satisfactory terms and conditions, if any.

The
accompanying 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.

Critical
Accounting Policies and Estimates

Our
discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which
have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these consolidated
financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and
expenses, and related disclosure of contingent assets and liabilities. We continually evaluate our estimates, including those related
to bad debts, recovery of long-lived assets, income taxes and the valuation of equity transactions.

We
base our estimates on historical experience and on various other assumptions that we believed to be reasonable under the circumstances,
the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent
from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues,
expenses, assets and liabilities