Company: SNBH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000760
Chunk: 84

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 84
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 which is a basic internal control. Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness. 
  
    3.
    Effective controls over the control environment were not maintained. Specifically, a formally adopted written code of business conduct and ethics that governs our employees, officers, and directors was not in place. Additionally, management has not developed and effectively communicated to employees its accounting policies and procedures. This has resulted in inconsistent practices. Further, our Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.

To address these material
weaknesses, management performed additional analyses and other procedures to ensure that the financial statements included herein fairly
present, in all material respects, our financial position, results of operations and cash flows for the periods presented. Accordingly,
we believe that the financial statements included in this report fairly present, in all material respects, our financial condition, results
of operations and cash flows for the periods presented.

To remediate the material
weakness in our documentation, evaluation and testing of internal controls we plan to engage a third-party firm to assist us in remedying
this material weakness once resources become available.

We intend to remedy our material
weakness with regard to insufficient segregation of duties by hiring additional employees in order to segregate duties in a manner that
establishes effective internal controls once resources become available.

Changes in Internal Controls
over Financial Reporting

There were no changes (including
corrective actions with regard to material weakness) in our internal controls over financial reporting that occurred during the period
covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

26

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we are subject to ordinary routine
litigation incidental to our normal business operations. We are not currently a party to any litigation the outcome of which, if determined
ad