Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 19

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 reducing the value
of the inventory on hand to $0. As of June 30, 2025 and December 31, 2024, the Company product inventories are contained in a storage
and fulfilment center located at City Logistics in Fairfield, NJ.

As
discussed in Note 1, on May 12, 2025, through its wholly owned subsidiary AIG F&B, the Company
acquired $283,452 in inventory which is expected to be sold or used in production in the immediate future.

On July 5, 2025, the Company, through its 51%-owned subsidiary Aqua Emergency,
Inc. (NV), acquired inventory of $106,517 from Aqua Emergency, Inc. (FL). This inventory is all expected to be sold or used in production
in the immediate future. 

NOTE
4. CONVERTIBLE NOTES PAYABLE

Since
the change of control of the Company in May 2018, the Company received advances from Pure Energy 714 LLC, an unaffiliated entity, totaling
$240,803. On March 15, 2019, specific terms were reached on $70,757 of the advances pursuant to an unsecured convertible promissory note
entered into between the Company and Pure Energy 714 LLC, the terms call for repayment of the advances including interest on any unconverted
principal amount at a rate of 4% per annum and a repayment date on or before August 15, 2022. Additional terms include a voluntary conversion
option, pursuant to which Pure Energy 714 LLC may convert any outstanding balance at $0.05 per share into shares of common stock. On
January 3, 2020, specific terms were reached on the remaining $170,046 of the advances pursuant to an unsecured demand note. See Note
5. Accrued interest on this note totaled $20,875 including default interest of $7,353 at December 31, 2024. On February 26, 2025, the
lender converted 100% of the debt and all of the accrued interest into 11,325,837 shares of the Company’s common stock. See Note
6.

On
December 2, 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 “