Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 18

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 18
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 provides information on
current “bids” and “asks”, as well as volume information. As of the date hereof, no active trading market has
developed for our Common Stock. Securities traded on OTC Markets are usually thinly traded, highly volatile, have fewer market makers
and are not followed by analysts. The SEC’s order handling rules, which apply to NASDAQ-listed securities, do not apply to securities
quoted on OTC Markets. Quotes for stocks included on OTC Markets are not listed in newspapers and are often unavailable at many of the
online websites which publish stock quotes. Therefore, prices for securities traded solely on OTC Markets may be difficult to obtain and
holders of our securities may be unable to resell their securities at or near their original acquisition price, or at any price.

Financial Industry Regulatory Authority (“FINRA”)
sales practice requirements may also limit a stockholder’s ability to buy and sell our Common Stock, which could depress the price
of our Common Stock.

FINRA has adopted rules that require a broker-dealer
to have reasonable grounds for believing that the investment is suitable for that customer before recommending an investment to a customer.
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. Thus, the FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our Common
Stock, which may limit your ability to buy and sell our shares of Common Stock, have an adverse effect on the market for our shares of
Common Stock, and thereby depress our price per share of Common Stock.

The sale of the additional shares of Common
Stock could cause the value of our Common Stock to decline.

The sale of a substantial number of shares of our
Common Stock, or anticipation of such sales, could make it more difficult for us to sell equity or equity-related securities in the future
at a time and at a price that we might otherwise wish.

13

The Common Stock constitutes restricted securities
and is subject to limited transferability.

The Common Stock should be considered a long-term,
illiquid investment. The Common Stock has not been registered under the Securities Act of 1933, as amended (the “Securities Act”),
and cannot