Company: SNBH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000760
Chunk: 43

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 43
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 the Chief Operating Decision Maker (“CODM”)
in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive
Officer (“CEO”). The Company has determined that it operates as a single operating segment and has one reportable segment.

Impairment of Long-Lived Assets

Long-lived assets and certain identifiable intangible
assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of
such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting
from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets and certain identifiable
intangible assets that management expects to hold, and use is based on the fair value of the asset. Long-lived assets and certain identifiable
intangible assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.

Recently Issued and Adopted Accounting Standards

From time to time, new accounting pronouncements are
issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting
and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the
effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material
to its financial position, results of operations, and cash flows when implemented.

NOTE 3. INVENTORIES

Inventories are stated at the lower of cost and net
realizable value. Cost is determined using the moving average method and net realizable value is the estimated selling price less costs
of disposal in the ordinary course of business. The cost of inventories includes direct costs plus shipping and packaging materials. At
December 31, 2023 based on a sale quote received in April 2024 for its remaining inventory, the Company recorded a charge of $63,477 to
write down the inventory to its net realizable value of $150,000. The Company did not consummate a sale of the inventory. As a result,
on September 30, 2024, the Company recorded an additional charge of $150,000 reducing the value of the inventory on hand to $0.

As of March 31, 2025 and December 31, 2024, the Company
product inventories are contained in a storage and fulfilment center located at