Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 88

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 88
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, collaboration agreements, supply agreements,
consulting agreements or other similar agreements with our advisors, employees, collaborators, licensors, suppliers, third-party contractors,
and consultants prior to beginning research or disclosing proprietary information. These agreements typically limit the rights of the
third parties to use or disclose our confidential information, including our trade secrets and know-how. Despite the contractual provisions
employed when working with third parties, the need to share trade secrets, know-how, and other confidential information increases the
risk that such trade secrets and know-how become known by our competitors, are inadvertently incorporated into the technology of others,
or are disclosed or used in violation of these agreements. Given that our proprietary position is based, in part, on our know-how and
trade secrets, a competitor’s discovery of our trade secrets or know-how, or other unauthorized use or disclosure would impair our
competitive position and may have an adverse effect on our business and results of operations.

In addition, these agreements typically restrict the
ability of our advisors, employees, collaborators, licensors, suppliers, third-party contractors, and consultants to publish data potentially
relating to our trade secrets or know-how, although our agreements may contain certain limited publication rights. Despite our efforts
to protect our trade secrets and know-how, our competitors may discover our trade secrets or know-how, either through breach of our agreements
with third parties, independent development, or publication of information by any of our third-party collaborators. A competitor’s
discovery of our trade secrets or know-how would impair our competitive position and have a material adverse impact on our business.

The auditor included a “going concern”
note in its audit report.

As noted in our audited financials for the years ended
December 31, 2024 and 2023, we’ve sustained recurring operating losses and our accumulated deficit raises substantial doubt about
our ability to continue as a going concern. We may not have enough funds to sustain the business until it becomes profitable. Even if
we obtain financing, we may not accurately anticipate how quickly we may use the funds and whether these funds are sufficient to bring
the business to profitability.

We are required to comply with certain provisions
of Section 404 of the Sarbanes-Oxley Act of 2002, as amended (the “Sarbanes-Oxley Act”) and if we fail to continue to comply,
our business could be harmed, and the price of our securities could decline.

Rules adopted by the SEC pursuant to Section 404 of
the Sarbanes