Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 29

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 29
---
 capital deficit of $1,583,758 and
$2,206,318 at June 30, 2025 and December 31, 2024, respectively. The report of our independent registered public accounting firm on our
financial statements for the year ended December 31, 2024 contained an explanatory paragraph regarding our ability to continue as a going
concern based upon cash used in operating activities and the current cash balance cannot be projected to cover the operating expenses
for the next twelve months from the release date of this report. These factors, among others, raised substantial doubt about our ability
to continue as a going concern. Our financial statements appearing elsewhere in this report do not include any adjustments that might
result from the outcome of this uncertainty. There are no assurances we will be successful in our efforts to generate significant revenues
or report profitable operations or to continue as a going concern, in which event investors would lose their entire investment in our
company.

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, and or through debt and equity financings. However, there can be no assurance that any
additional financings will be available to us on satisfactory terms and conditions, if any.

The accompanying consolidated
financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts
and classification of liabilities that may result should the Company be unable to continue as a going concern.

Critical Accounting Policies
and Estimates

Our discussion and analysis
of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in
accordance with accounting principles generally accepted in the United States. The preparation of these consolidated financial statements
requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related
disclosure of contingent assets and liabilities. We continually evaluate our estimates, including those related to bad debts, recovery
of long-lived assets, income taxes and the valuation of equity transactions.

We base our estimates on
historical experience and on various other assumptions that we believed to be reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.
Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues, expenses, assets
and liabilities. Actual results