Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 35

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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To the extent we are successful
in growing our business both organically and through acquisition, we continue to plan our working capital and the proceeds of any financing
to finance such acquisition costs.

Liquidity is the ability
of a company to generate funds to support its current and future operations, satisfy its obligations and otherwise operate on an ongoing
basis. At June 30, 2025, we had a cash balance of $42,348. These funds are kept in financial institutions located in United States.

As of June 30, 2025, we had total current assets
of $556,161, consisting of $42,348 in cash accounts receivable of $60,900, period expenses of $169,462 and inventory of
$283,451. Our total current liabilities as of June 30, 2025 were $2,139,919 We had a working capital deficit of $1,583,758 as of
June 30, 2025.

Our ability to continue as
a going concern is dependent upon our ability to carry out our business plan, achieve profitable operations, obtain additional working
capital funds from our significant shareholders, and or through debt and equity financings. However, there can be no assurance that any
additional financings will be available to us on satisfactory terms and conditions, if any.

The accompanying consolidated
financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts
and classification of liabilities that may result should the Company be unable to continue as a going concern.

23 

Cash Flows from Operating Activities

Operating activities generated $2,916 in cash for
the six months ended June 30, 2025, compared with cash used of $190,166 for the six months ended June 30, 2024. Our positive operating
cash flow for the six months ended June 30, 2024, was largely the result of our net loss of $887,434 offset by non cash expense for consulting
services of $656,186. Our payables for the quarter increased by $234,406. For the six months ended June 30, 2024, operating activities
used $190,166. The primary causes of the cash usage was our net loss of $641,908. This was primarily offset by non cash expense for consulting
services of $340,750 and a stock subscription of $85,000.

Cash Flows from Investing
Activities

There were