Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 62

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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 of 1,000,000 shares of the
Company’s common stock for a total of 3,000,000 shares. During the first quarter of 2024, the consultant received two separate
cash payments of $10,000 for a total of $20,000 and two separate issuances of 1,000,000 shares of the Company’s common
stock. As of March 31, 2025, the consultant had not yet received the third cash payment and stock issuance.
The Company has not recorded any charge for the third payment as of March 31, 2025. Subsequent to March 31, 2025, on April 18,
2025, the consultant was issued 2,000,000
shares of the Company’s common stock in full settlement of the agreement.

NOTE 9. SUBSEQUENT EVENTS

The Company has evaluated subsequent events for recognition
and disclosure through August 18, 2025, which is the date the financial statements were available to be issued.

On July 5, 2025, the Company, through its 51%-owned
subsidiary Aqua Emergency, a Nevada corporation (AENV) entered into the Exchange Agreement (the “Exchange Agreement”) with
Aqua Emergency, a Florida corporation (“AEFL”), which is owned and controlled by its shareholders, and which owns and controls
several assets and lines of business of interest to the Company, pursuant to which AENV will acquire many of those assets and rights of
AEFL in exchange for Acquisition Credits See Note 5.

Aqua Emergency, Inc., the Florida-based Company, is
a specialized manufacturer and distributor of long-shelf-life emergency drinking water and meals-ready-to-eat (MREs), designed for disaster
relief, defense, and institutional use. The Company is the exclusive license holder of the American Red Cross® brand
for emergency water and MREs. Aqua Emergency supplies products to federal, state, and municipal emergency response agencies, non-governmental
humanitarian and healthcare organizations, and commercial preparedness distributors. Its product line is engineered for extended shelf-life
stability, regulatory compliance, and rapid-deployment packaging.

The consideration structure includes an earnout formula
based on annual revenue growth, EBITDA, and/or appraised asset value, calculated on a 70% performance basis and adjusted by SNBH’s
51% ownership interest in the Subsidiary. Acquisition Credits issued under this structure may be converted into shares