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

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 8.

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NOTE 6. ACQUISITION
CREDITS

On May 12, 2025, the Company, through its wholly owned
subsidiary AIG F&B, acquired Assets totaling $595,441 from American Industrial Group, Inc. In consideration for the assets received,
AIG F&B issued $595,441 of Acquisition Credits. Acquisition Credits are issued subject to investment representations of the original
recipient and may be transferred or exchanged only in compliance with the Securities Act of 1933. The Holder of an Acquisition Credit
is entitled, at its option, at any time more than six months after the issuance date, which will be the Maturity Date, to convert any
or all of the principal amounts of the Acquisition Credits or any portion of the principal amount into shares of Common Stock of the Company
with the number of shares issuable upon such conversion being equal to the dollar amount converted. The conversion price will be determined
by the volume-weighted average of the closing price of the Company’s common stock for the 30-day period preceding the requested
conversion date.

NOTE 7. STOCKHOLDERS’ (DEFICIT)

Preferred stock

The Company is authorized to issue 25,000,000 shares
of Preferred Stock, par value $.001 per share. During the first quarter of 2020, the Company issued 1,000,000 shares of its newly designated
Series B Preferred Stock to one investor.

For five years from the date of issuance, the Series
B Preferred Stock shall have the number of votes equal to fifty-one percent (51%) of the cumulative total vote of all classes of stock
of the Corporation, common or preferred, whether such other class of stock is voting as a single class or the other classes of stock are
voting together as a single group, and with respect to such vote, such holder shall have full voting rights and powers equal to the voting
rights and powers of the holders of Common Stock, or any other class of preferred stock, and shall be entitled to notice of any stockholders’
meeting in accordance with the bylaws of the Corporation, and shall be entitled to vote, together with holders of Common Stock and any
class of preferred stock entitled to vote, with respect to any question upon which holders of Common Stock or any class of preferred stock
have the right to vote. After five years, the Series B Preferred Stock shall automatically, and without further action by the Corporation,
be cancelled and