Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 37

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 37
---
. Deferred tax assets and liabilities are offset when they related to income taxes levied by
the same taxation authority and we intend to settle its current tax assets and liabilities on a net basis.

Stock-based
Compensation

Stock
based compensation is accounted for based on the requirements of the Share-Based Payment topic of Accounting Standards Codification (“ASC”)
718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an
award of equity instruments over the period the employee or director is required to perform the services in exchange for the award. The
Accounting Standards Codification also requires measurement of the cost of employee and director services received in exchange for an
award based on the grant-date fair value of the award.

Pursuant
to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement
date.” The expense is recognized over the period of services or the vesting period, whichever is applicable. Until the measurement
date is reached, the total amount of compensation expense remains uncertain. We record compensation expense based on the fair value of
the award at the reporting date. The awards to consultants and other third parties are then revalued, or the total compensation is recalculated
based on the then current fair value, at each subsequent reporting date.

Recent
Accounting Pronouncements

Other
accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have
a material impact on our consolidated financial statements upon adoption. We do not discuss recent pronouncements that are not anticipated
to have an impact on or are unrelated to our consolidated financial condition, results of operations, cash flows or disclosures.

23

RESULTS
OF OPERATIONS

Comparison
of Results of Operations for the three months ended September 30, 2025 and 2024

Revenue

We
generated revenue of $387,659 during the three months ended September 30, 2025. The revenue was generated through our new subsidiaries
AIG F&B which we acquired in April 2025 and began operations in May 2025 and Aqua Emergency, which we acquired in July 2024 and began
operations in August. The revenue consisted of shipments of canned water, seltzer and alcohol beverages to independent but related parties.
We did not generate any revenue during the three months ending September 30, 2024.

Gross
Margin

We
had a positive