Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 105

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 2
Chunk 105
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 post Share Exchange Agreement with AIG and profit generated by Aqua Emergency which was acquired in July and AIG F&B, which
was acquired in May.

Interest
Expense

Interest
Expense is related to our convertible and other notes payable. During the nine months ended September 30, 2025, interest expense totaled
$128,834 compared to $191,545 for the same period in 2024. The decrease in 2025 is a result of the several conversions of debt into equity
during the first quarter of 2025.

Income
Taxes

We
did not have any income taxes expense for the six months ended September 30, 2025 and 2024.

Net
Loss

Our
net loss for the nine months period ended September 30, 2025 and 2024 was $863,497 and $933,749, respectively. There is a non-controlling
interest adjustment of ($21,048) for the nine months ended September 30, 2025.

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. On September 30, 2025, we had a cash balance of $21,720. These funds are kept in financial institutions located
in United States.

As
of September 30, 2025, we had total current assets of $618,012, consisting of $21,720 in cash, accounts receivable of $175,447, prepaid
expenses of $180,519 and inventory of $240,326. Our total current liabilities as of September 30, 2025 were $4,207,484. We had a working
capital deficit of $5,533,322 as of September 30, 2025.

26

Our
ability to continue as a going concern is dependent upon our ability to carry out our business plan, achieve profitable operations, obtain
additional working capital funds from our significant shareholders