Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 24

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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. On May 30, 2025, the Company received a demand letter from an attorney
representing the contractor in the amount of $286,010 including wages, expenses and interest. The Company disputes the claim in its entirety
but has maintained an accrual of $54,000 related to the dispute. The Company has begun settlement discussions with the contractor’s
representative. The Company has not made any change to its accrual as of this time. Neither party has initiated legal action at this time.
Should any legal action occur against the Company, the Company would defend itself vigorously and would assert claims of misconduct against
the former contractor.

In the first quarter of 2024, the
Company engaged a consultant pursuant to which the consultant was to receive as consideration for services in accordance with a
payment schedule three cash payments of $10,000 for a total of $30,000 and three issuances of 1,000,000 shares of the
Company’s common stock for a total of 3,000,000 shares. During the first quarter of 2024, the consultant received two separate
cash payments of $10,000 for a total of $20,000 and two separate issuances of 1,000,000 shares of the Company’s common
stock. As of March 31, 2025, the consultant had not yet received the third cash payment and stock issuance.
The Company has not recorded any charge for the third payment as of March 31, 2025. Subsequent to March 31, 2025, on April 18,
2025, the consultant was issued 2,000,000
shares of the Company’s common stock in full settlement of the agreement.

NOTE 9. SUBSEQUENT EVENTS

The Company has evaluated subsequent events for recognition
and disclosure through August 18, 2025, which is the date the financial statements were available to be issued.

On July 5, 2025, the Company, through its 51%-owned
subsidiary Aqua Emergency, a Nevada corporation (AENV) entered into the Exchange Agreement (the “Exchange Agreement”) with
Aqua Emergency, a Florida corporation (“AEFL”), which is owned and controlled by its shareholders, and which owns and controls
several assets and lines of business of interest to the Company, pursuant to which AENV will acquire many of those assets and rights of
AEFL in exchange for Acquisition Credits See Note 5.

Aqua Emergency, Inc.,