Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 33

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 33
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 was ($254,798) for the year
ended December 31, 2024, compared to ($226,875) for the year ended December 31, 2023. The expenses for both years are entirely related
to interest expense, including default interest.

Income Taxes

We did not have any income
taxes expense for the years ended December 31, 2024 and December 31, 2023.

Net Income (Loss)

Net loss for the years ended
December 31, 2024 and 2023 were $1,136,446 and $477,734, respectively. The increase in Net Loss was primarily due to the increased professional
fees and management fees as the Company pursues a merger opportunity.

Liquidity and Capital
Resources

The consolidated financial
statements have been prepared using generally accepted accounting principles in the United States of America (“GAAP”) applicable
for a going concern, which assumes that the Company will realize its assets and discharge its liabilities in the ordinary course of business.

To the extent we are successful
in growing our business both organically and through acquisition, we continue to plan our working capital and the proceeds of any financing
to finance such acquisition costs.

Liquidity is the ability
of a company to generate funds to support its current and future operations, satisfy its obligations and otherwise operate on an ongoing
basis. At December 31, 2024 and 2023, we had cash balance of approximately $3,432 and $1,299, respectively. These funds are kept in financial
institutions located in United States.

Cash flows from Operating Activities

Operating activities used $323,367 in cash the year
ended December 31, 2024, as compared with $68,544 for the year ended December 31, 2023. Our net loss of $1,136,446 is the main component
of our negative operating cash flow in 2024. This was offset for non-cash expenses that were paid with the Company’s common stock
totaling $380,750 and a write down of our inventory totaling $150,000. In addition our prepaid expenses decreased by $8,453 and accounts
payable increased by $149,000. For the year ended December 31, 2023, our net loss of $477,734 is the main component of our negative operating
cash flow. This was offset for non-cash expenses that were paid with the Company’s common stock totaling $140,