Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 93

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 93
---
 grounds for believing that the investment is suitable for that customer before recommending an investment to a customer.
Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers must make reasonable efforts
to obtain information about the customer’s financial status, tax status, investment objectives, and other information. Under interpretations
of these rules, FINRA believes that there is a high probability that speculative low-priced securities will not be suitable for at least
some customers. Thus, the FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our Common
Stock, which may limit your ability to buy and sell our shares of Common Stock, have an adverse effect on the market for our shares of
Common Stock, and thereby depress our price per share of Common Stock.

The sale of the additional shares of Common
Stock could cause the value of our Common Stock to decline.

The sale of a substantial number of shares of our
Common Stock, or anticipation of such sales, could make it more difficult for us to sell equity or equity-related securities in the future
at a time and at a price that we might otherwise wish.

13

The Common Stock constitutes restricted securities
and is subject to limited transferability.

The Common Stock should be considered a long-term,
illiquid investment. The Common Stock has not been registered under the Securities Act of 1933, as amended (the “Securities Act”),
and cannot be sold without registration under the Securities Act or any exemption from registration. In addition, the Common Stock is
not registered under any state securities laws that would permit their transfer. Because of these restrictions and the absence of an active
trading market for our securities, a stockholder will likely be unable to liquidate an investment even though other personal financial
circumstances would dictate such liquidation.

Because we will likely issue additional shares
of our Common Stock, investment in the Company could be subject to substantial dilution.

Investors’ interests in the Company will be
diluted and Investors may suffer dilution in their net book value per share when we issue additional shares. We are authorized to issue
500,000,000 shares of Common Stock, $0.001 par value per share, and 25,000,000 shares of preferred stock, $0.001 par value per share.
We anticipate that all or at least some of our future funding, if any, will be in the form of equity financing from the sale of our Common
Stock. If we do sell or