Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 8

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 8
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 substantially below prices at which our shares currently trade. Our inability to raise capital could require us to significantly
curtail or terminate our operations. We may seek to increase our cash reserves through the sale of additional equity or debt securities.
The sale of convertible debt securities or additional equity securities could result in additional and potentially substantial dilution
to our shareholders. The incurrence of indebtedness would result in increased debt service obligations and could result in operating and
financing covenants that would restrict our operations and liquidity. In addition, our ability to obtain additional capital on acceptable
terms is subject to a variety of uncertainties.

In addition, if we are unable to generate adequate
cash from operations, and if we are unable to find sources of funding, it may be necessary for us to sell all or a portion of our assets,
enter into a business combination, or reduce or eliminate operations. These possibilities, to the extent available, may be on terms that
result in significant dilution to our shareholders or that result in our shareholders losing all of their investment in our Company.

The commercial success of our products is dependent,
in part, on factors outside our control.

The commercial success of our products is dependent
upon unpredictable and volatile factors beyond our control, such as the success of our competitors’ products. Our failure to attract
market acceptance and a sustainable competitive advantage over our competitors would materially harm our business.

We are attempting to launch brands in new markets
and with new products. Our inability to effectively execute our business plan in relation to these new brands could negatively impact
our business.

Launching new products into new markets is risky and
requires extensive marketing and business expertise. There can be no assurances we will have the capital, personnel resources, or
expertise to be successful in launching these new business efforts.

Our business and financial performance may be
adversely affected by downturns in the target markets that we serve or reduced demand for the types of products we sell.

Demand for our products is often affected by general
economic conditions as well as product-use trends in our target markets. These changes may result in decreased demand for our products.
The occurrence of these conditions is beyond our ability to control and, when they occur, they may have a significant impact on our sales
and results of operations. The inability or unwillingness of our customers to pay a premium for our products due to general economic conditions
or a downturn in the economy may have a significant adverse impact on our sales and results of operations.

6

The Company’s industry is