Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 12

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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During the six months ended
June 30, 2025, the Company issued 6,110,000 shares to George Furlan, its CEO, for management services including a bonus of 3,680,000
related to the closing of share exchange agreement with AIGF&B. Aqua Emergency and Wyoming Bears are related parties through
common ownership by AIG. 

    8 

These balances are unsecured, non-interest bearing, and are expected to
be settled in the normal course of business.

The Company recorded fees of $22,500 from AIG Group for consulting services
related to the Company’s merger and ongoing operations. This balance is included in accounts payable and accrued expenses at June
30, 2025.

Management believes all related party
transactions were made on terms equivalent to those that prevail in arm’s length transactions and were approved by the Company’s
Board of Directors or an authorized committee.

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 June 30, 2025 and December 31, 2024 are as follows:

 Schedule
of net deferred tax liability

June
30, 
2025
 
December
31,
2024

Deferred
Tax Assets

Net
Operating Losses
 
$
1,167,025

$
980,663

Less:
Valuation Allowance

(1,167,025
)

(980,663
)

Deferred
Tax Assets - Net
 
$
—

$
—

Deferred
taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and
operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences.
Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax
assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all
of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax
laws and rates on the date of enactment. The U.S. federal income tax rate is 21%.

Segment Reporting

The Company applies ASC 280, Segment Reporting, in
determining reportable segments for its financial