Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 919

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 13
Chunk 919
---
 active markets for identical assets or liabilities.

Level 2 inputs, which include observable
inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities; quoted prices for identical or similar assets
or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for
substantially the full term of the asset or liability; and

Level 3 inputs, which include unobservable
inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability.
Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies
or similar valuation techniques, as well as significant management judgment or estimation.

Income Taxes

The Company’s income tax benefit differs from
the expected income tax benefit by applying the U.S. Federal statutory rate of 21% to net income (loss) as follows:

The tax effects of temporary differences that give
rise to the Company’s net deferred tax liability as of December 31, 2024 and 2023 are as follows:

    Summary of deferred tax assets and liabilities 

    Year Ended December 31

    2024 
    2023
  
    Deferred Tax Assets 

    Net Operating Losses  
    $980,663  
    $605,817 

    Less: Valuation Allowance 
     (980,663) 
     (605,817)

    Deferred Tax Assets - Net 
    $—  
    $— 

Deferred taxes are provided on a liability method
whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred
tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts
of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management,
it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities
are adjusted for the effects of changes in tax laws and rates on the date of enactment. The U.S. federal income tax rate is 21%.

Segment Reporting

The Company applies ASC 280, Segment Reporting, in
determining reportable segments for its financial statement disclosure. Operating segments are defined as components of an entity for
which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker