Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 3

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 3
---
 company;

    ●
    Partner with established distributers and retailers;

    ●
    Focus on operational excellence and product quality; and

    ●
    Establish ongoing communication with the capital markets

The Company believes it has assembled a highly accomplished
team of branding and marketing professionals who have a combined experience and track record of successfully launching and operating
major brands in the consumer market space, which the Company believes will provide it with it a competitive edge in its industry.

M&A Strategy

In Q3 2022, the Company launched an M&A strategy
to identify high-margin, revenue generating businesses within above-average growth potential industry sectors as potential acquisition
targets.

On April 10, 2025, the Company, through its wholly-owned subsidiary AIG
F&B, a Nevada corporation (AIGFB) closed the Exchange Agreement (the “Exchange Agreement”) with American Industrial
Group, a Florida corporation (“AIG”), which is owned and controlled by its shareholders, and which owns and controls several
assets and lines of business of interest to the Company, through its subsidiary, pursuant to which AIGFB will acquire many of those assets
and rights of AIG in exchange for acquisition credits, to be ultimately paid by the exchange of those credits for shares of common stock
of SNBH (the “Acquisition Credits”). These Acquisition Credits will be issued by SNBH to AIG shareholders and/or their designees
in accordance with an Earnout Schedule that was set forth in the Exchange Agreement, as filed with the SEC on April 11, 2025, as an exhibit
(10.16) to the Form 8K/A5. Prior to the Closing, certain parties to the Exchange Agreement and large shareholders of the Company (collectively,
the “Lockup Parties”) entered into lock-up leak-out agreements, which govern the manner in which such Lockup Parties may
sell, transfer or dispose of their shares of common stock during the 21-month period following the Closing.

Customers

The Company’s sales channels are direct to consumer and wholesale.

Intellectual Property

The Company’s Oeuvre brand is trademarked
in the United States, with a European trademark application pending. The Company expects to rely on trade secrets and proprietary know-how protection
for our confidential and proprietary information, however we have not yet taken security measures to protect this information.

Competition

We have experienced, and expect to continue to experience,
intense competition from a number of companies.

The current market is highly competitive