Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 84

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 84
---
 difficulties that could delay or prevent the successful development, introduction or marketing
of our products. In addition, any new enhancements must meet the requirements of our current and prospective customers and must achieve
significant market acceptance. We could also incur substantial costs if we need to modify our products and services or infrastructures
to adapt to these changes. We also expect that new competitors may introduce products or services that are directly or indirectly competitive
with us. These competitors may succeed in developing products and services that have greater functionality or are less costly than our
products and services and may be more successful in marketing such products and services. Technological changes have lowered the cost
of operating, communications and computer systems and purchasing software. These changes reduce our cost of selling products and providing
services, but also facilitate increased competition by reducing competitors’ costs in providing similar products and services. This
competition could increase price competition and reduce anticipated profit margins.

Our acquisition strategy creates risks for our
business.

We expect that we will pursue acquisitions of other
businesses, assets or technologies to grow our business. We may fail to identify attractive acquisition candidates, or we may be unable
to reach acceptable terms for future acquisitions. We might not be able to raise enough cash to compete for attractive acquisition targets.
If we are unable to complete acquisitions in the future, our ability to grow our business at our anticipated rate will be impaired. We
may pay for acquisitions by issuing additional shares of our Common Stock, which would dilute our stockholders, or by issuing debt, which
could include terms that restrict our ability to operate our business or pursue other opportunities and subject us to meaningful debt
service obligations. We may also use significant amounts of cash to complete acquisitions. To the extent that we complete acquisitions
in the future, we likely will incur future depreciation and amortization expenses associated with the acquired assets. We may also record
significant amounts of intangible assets, including goodwill, which could become impaired in the future. Acquisitions involve numerous
other risks, including:

7

●
difficulties integrating the operations, technologies, services and personnel of the acquired companies;

●
challenges maintaining our internal standards, controls, procedures and policies;

●
diversion of management’s attention from other business concerns;

●
over-valuation by us of acquired companies;

●
litigation resulting from activities of the acquired company, including claims from terminated employees, customers, former stockholders and other third parties;

●
insufficient revenues to offset increased expenses associated with the acquisitions and unanticipated