Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 280

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 3
Chunk 280
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 assessable tax profit.
In principle, deferred tax liabilities are recognized for all taxable temporary differences, and deferred tax assets are recognized to
the extent that it is probably that taxable profit will be available against which deductible temporary differences can be utilized.

Deferred tax is calculated
using tax rates that are expected to apply to the period when the asset is realized, or the liability is settled. Deferred tax is charged
or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred
tax is changed to equity. Deferred tax assets and liabilities are offset when they related to income taxes levied by the same taxation
authority and we intend to settle its current tax assets and liabilities on a net basis.

Stock-based Compensation

Stock based compensation is accounted for based on
the requirements of the Share-Based Payment topic of Accounting Standards Codification (“ASC”) 718 which requires recognition
in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over
the period the employee or director is required to perform the services in exchange for the award. The Accounting Standards Codification
also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair
value of the award.

Pursuant to ASC Topic 505-50, for share-based payments
to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized
over the period of services or the vesting period, whichever is applicable. Until the measurement date is reached, the total amount of
compensation expense remains uncertain. We record compensation expense based on the fair value of the award at the reporting date. The
awards to consultants and other third parties are then revalued, or the total compensation is recalculated based on the then current fair
value, at each subsequent reporting date.

Recent Accounting Pronouncements

Other accounting standards
that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact
on our consolidated financial statements upon adoption. We do not discuss recent pronouncements that are not anticipated to have an impact
on or are unrelated to our consolidated financial condition, results of operations, cash flows or disclosures.

23

RESULTS OF OPERATIONS

Comparison of Results of Operations for the Years
Ended December 31, 2024 and 2023.

Revenue

We did not generate significant
revenue for the years ended