Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 21

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 21
---
 not freely transferable and there may not be a market
created in which the Common Stock may be sold or otherwise disposed; and (iii) whether interests in the Company or the underlying assets
owned by the Company constitute “Plan Assets” under ERISA.

Our Common Stock price may decrease due to factors
beyond our control.

The stock market from time to time has experienced
extreme price and volume fluctuations, which have particularly affected the market prices for emerging growth companies, and which often
have been unrelated to the operating performance of the companies. These broad market fluctuations may adversely affect the market price
of our stock, if a trading market for our stock ever develops. If our shareholders sell substantial amounts of their stock in the public
market, the price of our stock could fall. These sales also might make it more difficult for us to sell equity, or equity-related securities,
in the future at a price we deem appropriate.

The market price of our stock may also fluctuate significantly
in response to the following factors, most of which are beyond our control:

    ●
    variations in our quarterly operating results,

    ●
    changes in general economic conditions,

    ●
    changes in market valuations of similar companies,

    ●
    announcements by us or our competitors of significant acquisitions, strategic partnerships or joint ventures, or capital commitments,

    ●
    poor reviews;

    ●
    loss of a major customer, partner or joint venture participant; and

    ●
    the addition or loss of key managerial and collaborative personnel.

Any such fluctuations may adversely affect the market
price or value of our Common Stock, regardless of our actual operating performance. As a result, stockholders may be unable to sell their
shares, or may be forced to sell them at a loss.

FINRA sales practice requirements may also limit
a stockholder’s ability to buy and sell our stock.

In addition to the “penny stock” rules
described above, FINRA has adopted Rule 2111 that requires a broker-dealer to have reasonable grounds for believing that an investment
is suitable for a customer before recommending the investment. Prior to recommending speculative low-priced securities to their non-institutional
customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status,
investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a high probability that
speculative low-priced securities will not be suitable for at least some customers. The FINRA requirements make