Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 46

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 to have written documentation of our internal controls and procedures on our assessment of our
    disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.
  
    2.
    We
    do not have sufficient segregation of duties within accounting functions, which is a basic internal control. Due to our size and
    nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent
    possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate
    individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls
    and procedures and has concluded that the control deficiency that resulted represented a material weakness.
  
    3.
    Effective
    controls over the control environment were not maintained. Specifically, a formally adopted written code of business conduct and
    ethics that governs our employees, officers, and directors was not in place. Additionally, management has not developed and effectively
    communicated to employees its accounting policies and procedures. This has resulted in inconsistent practices. No director qualifies
    as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level programs have
    a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.

To
address these material weaknesses, management performed additional analyses and other procedures to ensure that the financial statements
included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods
presented. Accordingly, we believe that the financial statements included in this report fairly present, in all material respects, our
financial condition, results of operations and cash flows for the periods presented.

To
remediate the material weakness in our documentation, evaluation and testing of internal controls we plan to engage a third-party firm
to assist us in remedying this material weakness once resources become available.

We
intend to remedy our material weakness with regard to insufficient segregation of duties by hiring additional employees in order to segregate
duties in a manner that establishes effective internal controls once resources become available.

Changes
in Internal Controls over Financial Reporting

There
were no changes (including corrective actions with regard to material weakness) in our internal controls over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal
control over financial