Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 11

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company, unless the effect is to
reduce a loss or increase earnings per share.

Stock-based compensation

In accordance with ASC No. 718, Compensation –
Stock Compensation (“ASC 718”), the Company measures the compensation costs of share-based compensation arrangements based
on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to
provide services.

During the six months ended June 30, 2025, and 2024,
there were no stock based awards issued or outstanding.

    7 

Fair value of financial instruments

We value our financial assets and liabilities on a
recurring basis using the fair value hierarchy established in Accounting Standards Codification (“ASC”) 820, Fair Value Measurements
and Disclosures.

ASC 820 describes three levels of inputs that may be used to measure fair
value, as follows:

Level 1 input, which include quoted prices
in active markets for identical assets or liabilities.

Level 2 inputs, which include observable
inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities; quoted prices for identical or similar assets
or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for
substantially the full term of the asset or liability; and

Level 3 inputs, which include unobservable
inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability.
Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies
or similar valuation techniques, as well as significant management judgment or estimation.

Related Party Transactions

The Company engages in transactions with related parties in the normal
course of business. Related parties include the Company's executive officers, directors, principal shareholders, and affiliates. All related
party transactions are conducted on terms equivalent to those prevailing in arm’s length transactions.

During the three and six months ended June 30, 2025, the Company entered
into the following related party transactions:

●The
Company recorded sales from Aqua Emergency totaling $76,600

●The
Company recorded sales from Wyoming Bears totaling $34,000

As of June 30, 2025, the following balances were outstanding with related
parties:

●Accounts
receivable from  Wyoming Bears totaling $61,000