Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 64

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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 of emergency
water and meals-ready-to-eat (MREs). Aqua Emergency holds the exclusive license for American Red Cross® branded emergency water and
MREs and supplies federal, state, and municipal emergency agencies, NGOs, and commercial distributors. Products are engineered for extended
shelf life, regulatory compliance, and rapid deployment.

These entities serve as the operational and commercial backbone of SNBH’s
business model, allowing the Company to scale through strategic asset acquisition and production partnerships. The Company intends to
leverage its operating subsidiaries, brand equity, and licensing relationships to enter additional product categories aligned with health,
safety, and sustainability.

Strategic Developments

On April 10, 2025, the Company, through AIG F&B, closed a share exchange
agreement with American Industrial Group (“AIG”), pursuant to which AIG transferred select rights, assets, and business lines
to AIG F&B in exchange for Acquisition Credits convertible into shares of SNBH common stock under a performance-based earnout structure.
These assets include proprietary beverage and first-aid product formulations, manufacturing infrastructure, distribution relationships,
and brand rights relevant to the Company’s future roadmap.

The consideration structure is performance-contingent and subject to regulatory
holding periods, lock-up agreements, and earnout milestones tied to revenue, EBITDA, and appraised asset value. The Acquisition Credits
may be converted to equity upon the achievement of defined benchmarks over a multi-year horizon.

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This transaction significantly enhances the Company’s balance sheet
and operating capacity, supporting its ability to develop new revenue-generating products and pursue future acquisitions aligned with
its mission.

The Company’s leadership team brings experience from global consumer
brands and retailers, including Original New York Seltzer, Disney, Hugo Boss, Victoria’s Secret, Versace, Bath & Body Works,
and Walmart. Leveraging this expertise, through its partnership with American Industrial Group, SNBH is positioned to capitalize on strategic
sourcing, the ability to manufacture locally with a global footprint, and global distribution networks across omnichannel platforms for
high-growth, high-margin brands, while maintaining cash-flow positive operations at all subsidiaries. The Company continues to execute
its 24-month acquisition pipeline and to seek growth through synergistic acquisitions, innovation in consumer packaged goods, in food,
beverage, pet-care, healthcare, and emergency markets, as well as strategic brand partnerships. Management believes these initiatives,
supported by scalable operations and established institutional relationships, will enable sustainable value creation for shareholders.

Principal