Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 140

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 140
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 converted into one share of common
stock of the surviving entity in the migratory merger. No dissenters’ rights were exercised by any of the Company’s stockholders
in connection with the migratory merger.

Following the consummation of the migratory merger,
the articles of incorporation and bylaws of the Nevada corporation that was newly-created as a wholly owned subsidiary of the Company
became the articles of incorporation and bylaws for the surviving entity in the migratory merger.

    F-7

Basis of Presentation

Our financial statements are presented in conformity
with accounting principles generally accepted in the United States of America, as reported on our fiscal years ending on December 31,
2024 and 2023. We have summarized our most significant accounting policies.

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

Uses of estimates in the preparation of financial statements

The preparation of financial statements in conformity
with generally accepted accounting principles accepted in the United States of America (“GAAP”) requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of net revenue and expenses during each reporting period. Actual results
could differ from those estimates.

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 years ended December 31, 2024 and 2023,
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,
and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

Net loss per common share – basic and
diluted

Authoritative guidance on Earnings per Share requires
dual presentation of basic and diluted earnings or loss per share (“EPS”) for all entities with complex capital structures
and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted
EPS computation. Basic EPS excludes dilution; diluted EPS reflects the potential dilution that could occur if securities or other contracts
to issue common stock were exercised or converted into common stock or resulted in the issuance