Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 14

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 a business combination under ASC 805-10.

    ●
    The asset values presented
    reflect the relative fair value allocation of the total purchase price among the identifiable assets acquired.

    ●
    The financial statements
    do not include the results of operations or cash flows of the acquired assets prior to the acquisition date.

The
transaction has been accounted for as an asset acquisition pursuant to ASC 805-50, Business Combinations – Related Issues,
as the acquired set of assets and activities did not meet the definition of a business. As such, the total consideration transferred,
including direct transaction costs, has been allocated to the individual identifiable assets acquired and liabilities assumed on a relative
fair value basis as of the acquisition date.

In
accordance with the guidance applicable to asset acquisitions:

    ●
    Transaction
    costs directly attributable to the acquisition have been capitalized as part of the cost of the acquired assets.

    ●
    No goodwill has been recognized,
    as the transaction did not qualify as a business combination under ASC 805-10.

    9

    ●
    The
    asset values presented reflect the relative fair value allocation of the total purchase price among the identifiable assets acquired.

    ●
    The
    financial statements do not include the results of operations or cash flows of the acquired assets prior to the acquisition date.

As
noted above, on July 5, 2025, Aqua Emergency, Inc. (Nevada), a 51%-owned subsidiary, acquired the business of Aqua Emergency, Inc.
(Florida) valued at $1,905,272 via a Bill of Sale under the July 5, 2025 Share Exchange Agreement. Assets include inventory
$106,517, accounts receivable $301,360, a perpetual license for intellectual property of $1,150,000, prepaid assets $33,617 and
Goodwill of $344,520. Consideration was Acquisition Credits (deferred contingent liability).

On
July 5 ,2025, SNBH through its 51% owned subsidiary Aqua Emergency, Inc., a Nevada Corporation (AE-NV), entered into a share agreement
and a Licensing Agreement whereby Aqua Emergency a Florida Corporation (AE-FL) transferred all its net assets and entered into a perpetual
worldwide Licensing to AE-NV. AE-NV is 51% owned by SNBH and 49% owned by the shareholders of AE-FL.

The
Company has determined under ASC 805 that the transaction is a business