Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 13

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 and
that any additional financings will be available to the Company on satisfactory terms and conditions, if any.

    8

The
accompanying unaudited condensed consolidated financial statements do not include any adjustments related to the recoverability or classification
of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as
a going concern.

NOTE
2. SIGNIFICANT ACCOUNTING POLICIES

Uses
of estimates in the preparation of financial statements

The
preparation of financial statements in conformity with generally accepted accounting principles accepted in the United States of America
(“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net revenue and
expenses during each reporting period. Actual results could differ from those estimates.

On
April 10, 2025, the Company, through AIG F&B, closed a share exchange agreement with American Industrial Group (“AIG”),
pursuant to which AIG transferred select rights, assets, and business lines to AIG F&B in exchange for Acquisition Credits convertible
into shares of SNBH common stock under a performance-based earnout structure. These assets include proprietary beverage and first-aid
product formulations, manufacturing infrastructure, distribution relationships, and brand rights relevant to the Company’s future
roadmap.

As
noted above, on May 12, 2025, the Company, through its wholly owned subsidiary AIG F&B, acquired Assets totaling $595,440 from American
Industrial Group, Inc. (“AIG”). The Company acquired machinery and equipment of $77,044, Inventory for sale of $283,452 and
accounts receivable and other assets of $234,944.

The
transaction has been accounted for as an asset acquisition pursuant to ASC 805-50, Business Combinations – Related Issues,
as the acquired set of assets and activities did not meet the definition of a business. As such, the total consideration transferred,
including direct transaction costs, has been allocated to the individual identifiable assets acquired and liabilities assumed on a relative
fair value basis as of the acquisition date.

In
accordance with the guidance applicable to asset acquisitions:

    ●
    Transaction
    costs directly attributable to the acquisition have been capitalized as part of the cost of the acquired assets.

    ●
    No goodwill has been recognized,
    as the transaction did not qualify as