Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 60

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 60
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 significant to the fair value
of the underlying asset or liability. Level 3 assets and liabilities include those whose fair value measurements are determined using
pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation.

Related
Party Transactions

The
Company engages in transactions with related parties in the normal course of business. Related parties include the Company’s executive
officers, directors, principal shareholders, and affiliates. All related party transactions are conducted on terms equivalent to those
prevailing in arm’s length transactions.

During
the three and nine months ended September 30, 2025, the Company entered into the following transactions:

    ●
    The
    Company recorded sales from AIG F&B for the three and nine month periods
ended September 30, 2025 totaling $274,107 and $406,464 respectively. Related party sales were eliminated in the amount of $123,566 and
$123,566, respectively.

As
of September 30, 2025, the following balances were outstanding with related parties:

    ●
    Accounts
    receivable from Aqua Emergency to AIG F&B accounts payable each totaling $141,823
     were eliminated.

During
the nine months ended September 30, 2025, the Company issued 6,110,000 shares to George Furlan, its CEO, for management services including
a bonus of 3,680,000 related to the closing of share exchange agreement with AIG F&B.

These
balances are unsecured, non-interest bearing, and are expected to be settled in the normal course of business.

The
Company recorded fees of $54,800 from AIG Group for management and consulting services related to the Company’s merger and ongoing
operations. This balance is included in accounts payable and accrued expenses at September 30, 2025.

Management
believes all related party transactions were made on terms equivalent to those that prevail in arm’s length transactions and were
approved by the Company’s Board of Directors or an authorized committee.

    11

Income
Taxes

The
Company’s income tax benefit differs from the expected income tax benefit by applying the U.S. Federal statutory rate of 21% to
net income (loss) as follows:

The
tax effects of temporary differences that give rise to the Company’s net deferred tax liability as of September 30, 2025 and December
31, 2024 are as follows:

    Schedule
of net deferred