Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 99

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 2
Chunk 99
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ing Policies and Estimates

Our
discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which
have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these consolidated
financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and
expenses, and related disclosure of contingent assets and liabilities. We continually evaluate our estimates, including those related
to bad debts, recovery of long-lived assets, income taxes and the valuation of equity transactions.

We
base our estimates on historical experience and on various other assumptions that we believed to be reasonable under the circumstances,
the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent
from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues,
expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. We believe
the following critical accounting policies affect our more significant judgments and estimates used in the preparation of the consolidated
financial statements.

22

Revenue
Recognition

We
recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or products have been sold, the purchase price
is fixed or determinable and collectability is reasonably assured.

Our
customers place orders for our products pursuant to their purchase orders and we are paid by our customers pursuant to our invoices.
Each invoice calls for a fixed payment in a fixed period of time. We recognize revenue by selling our products under our customers’
purchase orders and our related invoices to our customers. Revenue related to the sales of our products to our customers is recognized
as the products are sold and amounts are paid, using the straight-line method over the term of the sales transaction. Prepayments, if
any, received from customers prior to the products being delivered are recorded as advance from customers. In these cases, when the products
are sold, the amount recorded as advance from customers is recognized as revenue.

Income
Taxes

We
are governed by the income tax laws of the United States. Income taxes are accounted for pursuant to ASC 740 “Accounting for Income
Taxes,” which is an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected
future tax consequences of events that have been recognized in our financial statements or tax returns. The charge for taxes is based
on the results for the period as adjusted for items, which are non