Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 11

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 11
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 the ability of our
officers and key employees to manage changing business conditions and to implement and improve our financial, administrative and other
resources. If the Company is unable to respond to and manage changing business conditions, or the scale of its operations, then the quality
of its services, its ability to retain key personnel, and its business could be harmed.

The Company may suffer from a lack of liquidity.

By incurring indebtedness, the Company subjects itself
to increased debt service obligations which could result in operating and financing covenants that would restrict our operations and liquidity.
This would impair our ability to hire the necessary senior and support personnel required for our business, as well carry out its acquisition
strategy and other business objectives.

Economic conditions or changing consumer preferences
could adversely impact our business.

A downturn in economic conditions in one or more of
the Company’s markets could have a material adverse effect on our results of operations, financial condition, business and prospects
– especially in light of the fact that we are selling products generally considered non-essential and/or discretionary. Although
we attempt to stay informed of economic and customer trends, any sustained failure to identify and respond to trends could have a material
adverse effect on our results of operations, financial condition, business and prospects.

8

The requirements of remaining a public company
may strain our resources and distract our management, which could make it difficult to manage our business.

We are required to comply with various regulatory
and reporting requirements, including those required by the SEC. Complying with these reporting and other regulatory requirements are
time-consuming and expensive and could have a negative effect on our business, results of operations and financial condition.

If we secure intellectual property rights in
the future, such intellectual property rights will be valuable, and if we are unable to protect them or are subject to intellectual property
rights claims, our business may be harmed.

If we secure intellectual property rights, including
those rights related to trademarks, copyrights and trade secrets, they will be important assets for us. We do not hold any patents protecting
our intellectual property at this time. Various events outside of our control may pose a threat to any intellectual property rights that
we acquire as well as to our business. For example, we may be subject to third-party intellectual property rights claims, and our technologies
may not be able to withstand any such claims. Regardless of the merits of the claims, any intellectual property claims could be time-consuming
and expensive to litigate or settle. In addition, if any