Company: SNBH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000760
Chunk: 58

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 58
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to identify high-margin, revenue generating businesses within above-average growth potential industry sectors as potential acquisition
targets. on April 10, 2025, the Company, through its wholly-owned subsidiary AIG F&B, a Nevada corporation (AIGFB) closed the Exchange
Agreement (the “Exchange Agreement”) with American Industrial Group, a Florida corporation (“AIG”), which is owned
and controlled by its shareholders, and which owns and controls several assets and lines of business of interest to the Company, through
its subsidiary, pursuant to which AIGFB will acquire many of those assets and rights of AIG in exchange for acquisition credits, to be
ultimately paid by the exchange of those credits for shares of common stock of SNBH (the “Acquisition Credits”). These Acquisition
Credits will be issued by SNBH to AIG shareholders and/or their designees in accordance with an Earnout Schedule that was set forth in
the Exchange Agreement, as filed with the SEC on April 11, 2025, as an exhibit (10.16) to the Form 8K/A5.

Customers

The Company launched its Oeuvre product line
in the fourth quarter of 2021. The Company’s sales channels are direct to consumer and wholesale.

Intellectual Property

The Company’s Oeuvre brand is trademarked
in the United States, with a European trademark application pending. The Company expects to rely on trade secrets and proprietary know-how protection
for our confidential and proprietary information, however we have not yet taken security measures to protect this information.

Competition

We have experienced, and expect to continue to experience,
intense competition from a number of companies.

The current market is highly competitive, consisting
of publicly-trade and privately-owned companies, many of which are more adequately capitalized than the Company.

Research and Development

We are continuously in the process of identifying
and/or developing potential new products to offer to our customers. Our expenditures on research and development have historically been
small and immaterial compared to our other business expenditures. We are currently developing new formulations for additional product
lines.

Employees

We believe that our success depends upon our ability
to attract, develop and retain key personnel. We currently employ one full-time employee. The Company otherwise currently relies on the
services of independent contractors. None of our employees are covered by collective bargaining agreements, and management considers relations
with our employees to be in good standing. Although we continually seek to add additional talent to our work force,