Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 90

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 90
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2024 was $850,319 and $513,938, respectively. The increased in operating loss of $336,381 was primarily
attributed to the increased professional fees and management fees related to our efforts to finalize and close on the acquisition of AIG
F&B and the assets acquired in May.

Interest Expense

Interest Expense is related to our convertible and
    other notes payable. During the six months ended June 30, 2025, interest expense totaled $89,466 compared to $127,970 for the same period
    in 2024. The decrease in 2025 is a result of the several conversions of debt into equity during the first quarter of 2025.

Income Taxes

We did not have any income
taxes expense for the six months ended June 30, 2025 and 2024.

Net Loss

Our net loss for the six months period ended June 30, 2025 and 2024 was
$887,434 and $641,908, respectively.

Liquidity and Capital
Resources

The consolidated financial
statements have been prepared using generally accepted accounting principles in the United States of America (“GAAP”) applicable
for a going concern, which assumes that the Company will realize its assets and discharge its liabilities in the ordinary course of business.

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 financ