Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 26

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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Sentient Brands is currently a next-generation brand platform focused on
the acquisition, development, and commercialization of premium and functional consumer packaged goods (CPG) with an emphasis on wellness,
sustainability, and emergency preparedness. The Company has implemented a product innovation and acquisition-driven growth strategy through
its operating subsidiaries, focusing on consumer categories that offer long-term secular growth potential.

The Company’s flagship subsidiaries include:

3.AIG F&B, Inc., a wholly owned Nevada subsidiary, which operates as a manufacturing and distribution platform for food,
beverage, and wellness products, including shelf-stable and functional nutrition items. AIG F&B sources and produces consumer goods
for the Company’s brand portfolio and strategic partners, including Original New York Seltzer, Arctic Frost, and Burlone.

4.Aqua Emergency, Inc. (AENV), a 51%-owned subsidiary, is a Florida-based specialized manufacturer and distributor of emergency
water and meals-ready-to-eat (MREs). Aqua Emergency holds the exclusive license for American Red Cross® branded emergency water and
MREs and supplies federal, state, and municipal emergency agencies, NGOs, and commercial distributors. Products are engineered for extended
shelf life, regulatory compliance, and rapid deployment.

These entities serve as the operational and commercial backbone of SNBH’s
business model, allowing the Company to scale through strategic asset acquisition and production partnerships. The Company intends to
leverage its operating subsidiaries, brand equity, and licensing relationships to enter additional product categories aligned with health,
safety, and sustainability.

Strategic Developments

On April 10, 2025, the Company, through AIG F&B, closed a share exchange
agreement with American Industrial Group (“AIG”), pursuant to which AIG transferred select rights, assets, and business lines
to AIG F&B in exchange for Acquisition Credits convertible into shares of SNBH common stock under a performance-based earnout structure.
These assets include proprietary beverage and first-aid product formulations, manufacturing infrastructure, distribution relationships,
and brand rights relevant to the Company’s future roadmap.

The consideration structure is performance-contingent and subject to regulatory
holding periods, lock-up agreements, and earnout milestones tied to revenue, EBITDA, and appraised asset value. The Acquisition Credits
may be converted to equity upon the achievement of defined benchmarks over a multi-year horizon.

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This transaction significantly enhances the Company’s balance sheet
and operating capacity, supporting its ability to develop new revenue-generating products and pursue future acquisitions