Company: SNBH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000760
Chunk: 6

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 6
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 state of incorporation from California to Nevada and each share of its common stock converted into one share of common
stock of the surviving entity in the migratory merger. No dissenters’ rights were exercised by any of the Company’s stockholders
in connection with the migratory merger.

Following the consummation of the migratory merger,
the articles of incorporation and bylaws of the Nevada corporation that was newly-created as a wholly owned subsidiary of the Company
became the articles of incorporation and bylaws for the surviving entity in the migratory merger.

    5

Subsequent to the quarter ended March 31, 2025, on April 10, 2025, the
Company, through its wholly-owned subsidiary AIG F&B, a Nevada corporation (AIGFB) closed the Exchange Agreement (the “Exchange
Agreement”) with American Industrial Group, a Florida corporation (“AIG”), which is owned and controlled by its shareholders,
and which owns and controls several assets and lines of business of interest to the Company, through its subsidiary, pursuant to which
AIGFB will acquire many of those assets and rights of AIG in exchange for acquisition credits, to be ultimately paid by the exchange of
those credits for shares of common stock of SNBH (the “Acquisition Credits”). These Acquisition Credits will be issued by
SNBH to AIG shareholders and/or their designees in accordance with an Earnout Schedule that was set forth in the Exchange Agreement, as
filed with the SEC on April 11, 2025, as an exhibit (10.16) to the Form 8K/A5.

Basis of Presentation

Our financial statements are presented in conformity
with accounting principles generally accepted in the United States of America, as reported on our fiscal years ending on December 31,
2025 and 2024. We have summarized our most significant accounting policies.

Going concern

The Company currently has limited operations. These
unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates,
among other things, the realization of assets and the satisfaction of liabilities in the normal course of business.

As reflected in the accompanying unaudited consolidated
financial statements, the Company had an accumulated deficit of $5,161,123 at March 31, 2025, and had a net loss of $491,297 and net cash
flow used in operating activities of $7,593 for the three months ended March 31, 2025,