Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 91

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 91
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 has been recently volatile and may be volatile in the future, investors in its common stock could incur
substantial losses. In the past, following periods of volatility in the market, securities class-action litigation has often been instituted
against companies. Such litigation, if instituted against the Company, could result in substantial costs and diversion of management’s
attention and resources, which could materially and adversely affect its business, financial condition, results of operations and growth
prospects. There can be no guarantee that the Company’s stock price will remain at current prices or that future sales of its common
stock will not be at prices lower than those sold to investors.

In addition, the securities markets in general have
experienced extreme price and trading volume volatility in the past. The trading prices of securities of many companies at our stage of
growth have fluctuated broadly, often for reasons unrelated to the operating performance of the specific companies. These general market
and industry factors may adversely affect the trading price of our common stock, regardless of our actual operating performance. If our
stock price is volatile, we could face securities class action litigation, which could result in substantial costs and a diversion of
management’s attention and resources and could cause our stock price to fall.

12

We are be subject to the “penny stock”
rules which adversely affect the liquidity of our Common Stock.

The SEC has adopted regulations which generally define
“penny stock” to be an equity security that has a market price of less than $5.00 per share, subject to specific exemptions.
The market price of our Common Stock is less than $5.00 per share and therefore we are considered a “penny stock” according
to SEC rules. This designation requires any broker-dealer selling these securities to disclose certain information concerning the transaction,
obtain a written agreement from the purchaser and determine that the purchaser is reasonably suitable to purchase the securities. These
rules limit the ability of broker-dealers to solicit purchases of our Common Stock and therefore reduce the liquidity of the public market
for our shares should one develop.

Securities which are traded on the OTCPink®,
may not provide as much liquidity for our investors as more recognized senior exchanges such as the Nasdaq stock market or other national
or regional exchanges.

In 2010, the Company’s Common Stock was approved
by FINRA to trade on the OTCBB under the symbol “INTB” on an unpriced basis. There has never been a two-sided quotation for
the stock, and