Company: SNBH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000760
Chunk: 11

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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, 2020, we issued a promissory note to an accredited investor
in consideration for $50,000 with interest at the rate of 10% per annum from the issue date, and also issued to the accredited investor
a common stock purchase warrant (the “Warrant”) to acquire 400,000 shares of common stock. The Warrant is exercisable for
a period of five years at an exercise price of $0.01. This note will mature on the earlier of (i) closing of the next equity financing
of at least $1,000,000 or (ii) September 2, 2021 (maturity date). The holder, at its sole election, may convert the interest accrued on
this note into shares of stock of the company at $0.20 per share. On November 29, 2021, the Company repaid principal totaling $27,500,
reducing the Note balance to $22,500. Accrued interest for this note as of December 31, 2024 totaled $6,999. During December 2023, the
investor exercised all of the warrants for $4,000. During the first quarter of 2025, the lender converted 100% of the debt and all of
the accrued interest into 1,032,465 shares of the Company’s common stock. While the transaction was approved, the Common Stock had
not yet been issued at March 31, 2025. The Company recorded the transaction as “Common Stock to be issued” in the Equity Section
of the accompanying Balance Sheet. The common shares were issued April 3, 2025. See Note 8.

On December 3, 2020, the Company issued a convertible
debenture to an accredited investor in consideration for $50,000 with interest at the rate of 10% per annum from the issue date, and also
issued to the accredited investor a common stock purchase warrant (the “Warrant”) to acquire 400,000 shares of common stock.
The Warrant was exercisable for a period of five years at an exercise price of $0.01. This debenture was convertible at the election of
the holder into shares of common stock at the price per share equal to 120% of the market price of the Company’s listed common stock
on the date of such conversion. During December 2023, the investor exercised all of the warrants for $4,000.