Company: SNBH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000760
Chunk: 83

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 83
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 and Chief Financial Officer have concluded that as of March 31, 2025, our disclosure controls
and procedures were not effective at the reasonable assurance level due to the material weaknesses identified and described below.

Our principal executive officers
do not expect that our disclosure controls or internal controls will prevent all error and all fraud. Although our disclosure controls
and procedures were designed to provide reasonable assurance of achieving their objectives and our principal executive officers have determined
that our disclosure controls and procedures are effective at doing so, a control system, no matter how well conceived and operated, can
provide only reasonable, not absolute assurance that the objectives of the system are met. Further, the design of a control system must
reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because
of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and
instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in
decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented
if there exists in an individual a desire to do so. There can be no assurance that any design will succeed in achieving its stated goals
under all potential future conditions.

Remediation Plan to Address
the Material Weaknesses in Internal Control over Financial Reporting

A material weakness is a
deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility
that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. Management
identified the following three material weaknesses that have caused management to conclude that, as of March 31, 2025, our disclosure
controls and procedures, and our internal control over financial reporting, were not effective at the reasonable assurance level:

25

    1.
    We do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act as of the period ending March 31, 2025. Management evaluated the impact of our failure to have written documentation of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.
  
    2.
    We do not have sufficient segregation of duties within accounting functions,