Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 36

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 36
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 principal executive officer and the principal financial officer
(principal financial officer), of the effectiveness of the design and operation of our disclosure controls and procedures, as defined
in Rule 13(a)-15(e) under the 1934 Act, as of the end of the period covered by this report. Based on this evaluation, because of
the Company’s limited resources and limited number of employees, management concluded that our disclosure controls and procedures
were ineffective as of December 31, 2024.

Management’s Report on Internal Control
over Financial Reporting

Our management is responsible for establishing and
maintaining adequate internal control over financial reporting. The Company’s internal control over financial reporting is designed
to provide reasonable assurances regarding the reliability of financial reporting and the preparation of the financial statements of the
Company in accordance with U.S. generally accepted accounting principles, or GAAP. Because of its inherent limitations, internal control
over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods
are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree or compliance with the
policies or procedures may deteriorate.

With the participation of our Chief Executive Officer
and Chief Financial Officer (principal financial officer), our management conducted an evaluation of the effectiveness of our internal
control over financial reporting as of December 31, 2024 based on the framework in Internal Control—Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on our evaluation and the material
weaknesses described below, management concluded that the Company did not maintain effective internal control over financial reporting
as of December 31, 2024 based on the COSO framework criteria. Management has identified control deficiencies as follows:

    ●
    The Company has not established adequate financial reporting monitoring activities to mitigate the risk of management override, specifically because there are few employees and only two officers with management functions and therefore there is lack of segregation of duties.

    ●
    There is a strong reliance on outside consultants to review and adjust the annual and quarterly financial statements, to monitor new accounting principles, and to ensure compliance with GAAP and SEC disclosure requirements.

    ●
    There is a strong reliance on the external attorneys to review and edit the annual and quarterly filings and to ensure compliance with SEC disclosure requirements.

    ●
    A formal audit committee has not been formed.

Management of the Company believes that these material
weakness