Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 633

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 8
Chunk 633
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 per share.

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 years ended December 31, 2024, and 2023,
there were no stock based awards issued or outstanding.

    F-8

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.

Income Taxes

The Company’s income tax benefit differs from
the expected income tax benefit by applying the U.S. Federal statutory rate of 21% to net income (loss) as follows:

The tax effects of temporary differences that give
rise to the Company’s net deferred tax liability as of December 31, 2024 and 2023 are as follows:

    Summary of deferred tax assets and liabilities 

    Year Ended December 31

    2024 
    2023
  
    Deferred Tax Assets 

    Net Operating Losses  
    $980,663  
    $605,817 

    Less: Valuation Allowance 
     (980,663) 
     (605,817)

    Deferred Tax Assets - Net 
    $—  
    $— 

Deferred taxes are provided on a liability method
whereby deferred tax assets