Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 19

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 19
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 be sold without registration under the Securities Act or any exemption from registration. In addition, the Common Stock is
not registered under any state securities laws that would permit their transfer. Because of these restrictions and the absence of an active
trading market for our securities, a stockholder will likely be unable to liquidate an investment even though other personal financial
circumstances would dictate such liquidation.

Because we will likely issue additional shares
of our Common Stock, investment in the Company could be subject to substantial dilution.

Investors’ interests in the Company will be
diluted and Investors may suffer dilution in their net book value per share when we issue additional shares. We are authorized to issue
500,000,000 shares of Common Stock, $0.001 par value per share, and 25,000,000 shares of preferred stock, $0.001 par value per share.
We anticipate that all or at least some of our future funding, if any, will be in the form of equity financing from the sale of our Common
Stock. If we do sell or issue more Common Stock, investors’ investment in the Company will be diluted. Dilution is the difference
between what you pay for your stock and the net tangible book value per share immediately after the additional shares are sold by us.
If dilution occurs, any investment in the Company’s Common Stock could seriously decline in value.

Our Common Stock is subject to risks arising
from restrictions on reliance on Rule 144 by shell companies or former shell companies.

Under a regulation of the SEC known as “Rule 144,” a person who beneficially
owns restricted securities of an issuer and who is not an affiliate of that issuer may sell them without registration under the Securities
Act provided that certain conditions have been met. One of these conditions is that such person has held the restricted securities for
a prescribed period, which would be six months for shares of a company which has never been a shell company. However, Rule 144 is unavailable
for the resale of securities issued by an issuer that is a shell company (other than a business combination related shell company) or,
unless certain conditions are met, that has been at any time previously a shell company.

The SEC defines a shell company as a company that
has (a) no or nominal operations and (b) either (i) no or nominal assets, (ii) assets consisting solely of cash and cash equivalents;
or (iii) assets consisting of any amount of cash and cash equivalents and nominal other