Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 15

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 combination

The Company is a Change in Control acquirer of the other company by transfer of all the net assets of AE-FL as well as all rights to the business IP , contracts, customer lists, formulations and trade marks.

SNBH paid fair value in issuing $1,905,272 acquisitions to the shareholders of AE-FL.

The Company recognized and measured all the assets acquired and liabilities assumed as well as Intangible assets such as trademarks, licenses, customer lists, contracts and goodwill.

These
financial statements are intended to provide users with historical information on the assets acquired and should be read in conjunction
with the accompanying notes and the full financial statements of the Company.

Cash

The
Company considers all short-term highly liquid investments with an original maturity date of purchase of three months or less to be cash
equivalents.

Revenue
Recognition

During
the three and nine months ended September 30, 2025 and the year ended December 31, 2024, our revenue recognition policy was in accordance
with ASC 606, “Revenue from Contracts with Customers”, which requires the recognition of sales following five steps: (i)
identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction
price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the
entity satisfies a performance obligation.

Net
loss per common share – basic and diluted

Authoritative
guidance on Earnings per Share requires dual presentation of basic and diluted earnings or loss per share (“EPS”) for all
entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation
to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution; diluted EPS reflects the potential dilution
that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in
the issuance of common stock that then shared in the earnings of the entity.

Basic
loss per share is computed by dividing net loss applicable to common shareholders by the weighted average number of common shares outstanding
during the period. Diluted loss per share reflects the potential dilution that could occur if dilutive securities and other contracts
to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the
earnings of the Company, unless the effect is to reduce a loss or increase earnings per share.