Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 16

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 10

Stock-based
compensation

In
accordance with ASC No. 718, Compensation – Stock Compensation (“ASC 718”), the Company measures the compensation costs
of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over
the period during which employees are required to provide services.

During
the nine months ended September 30, 2025, and 2024, there were no stock based awards issued.

Fair
value of financial instruments

We
value our financial assets and liabilities on a recurring basis using the fair value hierarchy established in Accounting Standards Codification
(“ASC”) 820, Fair Value Measurements and Disclosures.

ASC
820 describes three levels of inputs that may be used to measure fair value, as follows:

Level
1 input, which include quoted prices in active markets for identical assets or liabilities.

Level
2 inputs, which include observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities; quoted
prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated
by observable market data for substantially the full term of the asset or liability; and

Level
3 inputs, which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value
of the underlying asset or liability. Level 3 assets and liabilities include those whose fair value measurements are determined using
pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation.

Related
Party Transactions

The
Company engages in transactions with related parties in the normal course of business. Related parties include the Company’s executive
officers, directors, principal shareholders, and affiliates. All related party transactions are conducted on terms equivalent to those
prevailing in arm’s length transactions.

During
the three and nine months ended September 30, 2025, the Company entered into the following transactions:

    ●
    The
    Company recorded sales from AIG F&B for the three and nine month periods
ended September 30, 2025 totaling $274,107 and $406,464 respectively. Related party sales were eliminated in the amount of $123,566 and
$123,566, respectively.

As
of September 30, 2025, the following balances were outstanding with related parties:

    ●
    Accounts
    receivable from Aqua Emergency to AIG F&B accounts payable