Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 96

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 96
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 our quarterly operating results,

    ●
    changes in general economic conditions,

    ●
    changes in market valuations of similar companies,

    ●
    announcements by us or our competitors of significant acquisitions, strategic partnerships or joint ventures, or capital commitments,

    ●
    poor reviews;

    ●
    loss of a major customer, partner or joint venture participant; and

    ●
    the addition or loss of key managerial and collaborative personnel.

Any such fluctuations may adversely affect the market
price or value of our Common Stock, regardless of our actual operating performance. As a result, stockholders may be unable to sell their
shares, or may be forced to sell them at a loss.

FINRA sales practice requirements may also limit
a stockholder’s ability to buy and sell our stock.

In addition to the “penny stock” rules
described above, FINRA has adopted Rule 2111 that requires a broker-dealer to have reasonable grounds for believing that an investment
is suitable for a customer before recommending the investment. Prior to recommending speculative low-priced securities to their non-institutional
customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status,
investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a high probability that
speculative low-priced securities will not be suitable for at least some customers. The FINRA requirements make it more difficult for
broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock and have
an adverse effect on the market for our shares.

15

We do not intend to pay dividends for the foreseeable
future.

We have never declared or paid any cash dividends
on our stock and do not intend to pay any cash dividends in the foreseeable future. We anticipate that we will retain all of our future
earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future
will be at the discretion of our Board.

If we are unable to comply with the financial
reporting requirements mandated by the SEC’s regulations, investors may lose confidence in our financial reporting and the price
of our common stock, if a market ever does develop for it, could decline.

If we fail to maintain effective internal controls
over financial reporting, our ability to produce timely, accurate and reliable periodic financial statements could be impaired. If we
do not maintain adequate internal control over financial reporting, investors