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

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 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 of SNBH common
stock following applicable holding periods and subject to Lock-Up Agreements.

No other matters were identified affecting the accompanying
financial statements and related disclosures.

15 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion
and analysis of the results of operations and financial condition of Sentient Brands Holdings Inc. for the three and six months ended
June 30, 2025 and 2024 should be read in conjunction with the Sentient Brands Holdings Inc. unaudited condensed consolidated financial
statements and the notes thereto contained elsewhere in this report. Our discussion includes forward-looking statements based upon current
expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the
timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors,
including those set forth under the Risk Factors, Special Note Regarding Forward-Looking Statements and Business sections in our Form
10-K as filed with the Securities and Exchange Commission on April 16, 2025. We use words such as “anticipate,” “estimate,”
“plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,”
“intend,” “may,” “will,” “should,” “could,” and similar expressions to identify
forward-looking statements.

Unless otherwise indicated, references to the “Company,”
“us” or “we” refer to Sentient Brands Holdings Inc. and its subsidiaries.

Overview