Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 58

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 58
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As
noted above, on July 5, 2025, Aqua Emergency, Inc. (Nevada), a 51%-owned subsidiary, acquired the business of Aqua Emergency, Inc.
(Florida) valued at $1,905,272 via a Bill of Sale under the July 5, 2025 Share Exchange Agreement. Assets include inventory
$106,517, accounts receivable $301,360, a perpetual license for intellectual property of $1,150,000, prepaid assets $33,617 and
Goodwill of $344,520. Consideration was Acquisition Credits (deferred contingent liability).

On
July 5 ,2025, SNBH through its 51% owned subsidiary Aqua Emergency, Inc., a Nevada Corporation (AE-NV), entered into a share agreement
and a Licensing Agreement whereby Aqua Emergency a Florida Corporation (AE-FL) transferred all its net assets and entered into a perpetual
worldwide Licensing to AE-NV. AE-NV is 51% owned by SNBH and 49% owned by the shareholders of AE-FL.

The
Company has determined under ASC 805 that the transaction is a business combination

The Company is a Change in Control acquirer of the other company by transfer of all the net assets of AE-FL as well as all rights to the business IP , contracts, customer lists, formulations and trade marks.

SNBH paid fair value in issuing $1,905,272 acquisitions to the shareholders of AE-FL.

The Company recognized and measured all the assets acquired and liabilities assumed as well as Intangible assets such as trademarks, licenses, customer lists, contracts and goodwill.

These
financial statements are intended to provide users with historical information on the assets acquired and should be read in conjunction
with the accompanying notes and the full financial statements of the Company.

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.

Revenue
Recognition

During
the three and nine months ended September 30, 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