Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 82

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 82
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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 substantially below prices at which our shares currently trade. Our inability to raise capital could require us to significantly
curtail or terminate our operations. We may seek to increase our cash reserves through the sale of additional equity or debt securities.
The sale of convertible debt securities or additional equity securities could result in additional and potentially substantial dilution
to our shareholders. The incurrence of indebtedness would result in increased debt service obligations and could result in operating and
financing covenants that would restrict our operations and liquidity. In addition, our ability to obtain additional capital on acceptable
terms is subject to a variety of uncertainties.

In addition, if we are unable to generate adequate
cash from operations, and if we are unable to find sources of funding, it may be necessary for us to sell all or a portion of our assets,
enter into a business combination, or reduce or eliminate operations. These possibilities, to the extent available, may be on terms that
result in significant dilution to our shareholders or that result in our shareholders losing all of their investment in our Company.

The commercial success of our products