Company: SNBH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000760
Chunk: 7

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 respectively. The Company has a limited operating
history, and its continued growth is dependent upon the continuation of selling its products; hence generating revenues and obtaining
additional financing to fund future obligations and pay liabilities arising from normal business operations. These matters raise substantial
doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent
on the Company’s ability to raise additional capital, implement its business plan, and generate significant revenues. There are
no assurances that the Company will be successful in its efforts to generate significant revenues, maintain sufficient cash balance or
report profitable operations or to continue as a going concern. The Company plans on raising capital through the sale of equity or debt
instruments to implement its business plan. However, there is no assurance these plans will be realized and that any additional financings
will be available to the Company on satisfactory terms and conditions, if any.

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.

Cash

The Company considers all short-term highly liquid
investments with an original maturity date of purchase of three months or less to be cash equivalents.

    6

Revenue Recognition

During the three months ended March 31, 2025 and the
year ended December 31, 2024, our revenue recognition policy was in accordance with ASC 606, “Revenue from Contracts with Customers”,
which requires the recognition of sales following five steps: (i) identify the contract(s) with a customer, (ii) identify the performance
obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations
in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

Net loss per common share – basic