Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 9

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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2,916 for the six months ended June 30, 2025, respectively. The Company has a limited operating
history, and its continued growth is dependent upon the continuation of selling its products; hence generating revenues and obtaining
additional financing to fund future obligations and pay liabilities arising from normal business operations. These matters raise substantial
doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent
on the Company’s ability to raise additional capital, implement its business plan, and generate significant revenues. There are
no assurances that the Company will be successful in its efforts to generate significant revenues, maintain sufficient cash balance or
report profitable operations or to continue as a going concern. The Company plans on raising capital through the sale of equity or debt
instruments to implement its business plan. However, there is no assurance these plans will be realized and that any additional financings
will be available to the Company on satisfactory terms and conditions, if any.

    6 

The accompanying unaudited condensed consolidated
financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts
and classification of liabilities that may result should the Company be unable to continue as a going concern.

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

Uses of estimates in the preparation of financial statements

The preparation of financial statements in conformity
with generally accepted accounting principles accepted in the United States of America (“GAAP”) requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of net revenue and expenses during each reporting period. Actual results
could differ from those estimates.

As noted above, On May 12, 2025, the Company, through
its wholly owned subsidiary AIG F&B, acquired Assets totaling $595,441 from American Industrial Group, Inc. (“AIG”). The
Company acquired machinery and equipment of $77,044, Inventory for sale of $283,452 and accounts receivable and other assets of $234,945.
The transaction has been accounted for as an asset acquisition pursuant to ASC 805-50, Business Combinations – Related Issues,
as the acquired set of assets and activities did not meet the definition of a business. As such, the total consideration transferred,
including direct transaction costs, has been allocated to the individual identifiable assets acquired and liabilities assumed