Company: SNBH
Filing Date: 2025-03-31
Form Type: 8-K/A
Source: 0001731122-25-000490
Chunk: 2

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-03-31
Form: 8-K/A
Chunk 2
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 product lines and business models. SNBH believes
that, if the Acquisition Credit Exchange is consummated, AIGFB’s planned business venture would be synergistic with SNBH’s
existing product and brand development business and anticipates meaningful operation efficiency through the integration of the two organizations.

Pursuant to the Exchange Agreement, following the Closing, the Acquisition
Credits will be issued by SNBH to the Shareholders or their designated interest holders on a quarterly basis over the five (5) year period
immediately following the Closing, in accordance with a performance-based Earnout Schedule (the “Earnout Schedule”). Pursuant
to the Earnout Schedule, the Acquisition Credits will be issued after achieving certain Company revenue and EBITDA growth for a period
of up to five (5) years. The number of Acquisition Credits issued to the Shareholders pursuant to the Earnout Schedule will be based upon
the greatest number of Acquisition Credits that would be calculated utilizing three (3) different earnout criteria methods, as follows:

Annual Revenue Growth Method: Acquisition Credits issued
= 70% of quarterly revenue growth relative to the same quarter in the previous year. For example: If revenue grows from $5,000,000
in quarter one 2024 to $10,000,000 in quarter one 2025 and SNBH’s revenue growth is $5,000,000, indicating that 70% of $5,000,000
($3,500,000) of Acquisition Credits are to be issued.

EBITDA Method: Acquisition Credits issued = 70% of (Five
(5) x quarterly EBITDA growth relative to the same quarter in the previous year) / (Company’s trailing average share price over
the prior quarter). For example: If EBITDA grows from $200,000 in quarter one 2024 to $500,000 in quarter one 2025 then this method
would generate 5 times that increase, or 5 X $300,000, times 70%, or $1,050,000 Acquisition Credits would be issued.

Appraised Value of Rolled-in Assets Method: Acquisition
Credits issued = 1.4 times the appraised value of rolled-in assets relative to the same quarter in the previous year. For example:
If assets in quarter one 2024 were $1,000,000 and assets in quarter one 2025 were $5,000,000 then $4,000,000 X 1.4 or $5,