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

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 10
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 our Common Stock, which would dilute our stockholders, or by issuing debt, which
could include terms that restrict our ability to operate our business or pursue other opportunities and subject us to meaningful debt
service obligations. We may also use significant amounts of cash to complete acquisitions. To the extent that we complete acquisitions
in the future, we likely will incur future depreciation and amortization expenses associated with the acquired assets. We may also record
significant amounts of intangible assets, including goodwill, which could become impaired in the future. Acquisitions involve numerous
other risks, including:

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difficulties integrating the operations, technologies, services and personnel of the acquired companies;

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challenges maintaining our internal standards, controls, procedures and policies;

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diversion of management’s attention from other business concerns;

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over-valuation by us of acquired companies;

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litigation resulting from activities of the acquired company, including claims from terminated employees, customers, former stockholders and other third parties;

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insufficient revenues to offset increased expenses associated with the acquisitions and unanticipated liabilities of the acquired companies;

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insufficient indemnification or security from the selling parties for legal liabilities that we may assume in connection with our acquisitions;

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entering markets in which we have no prior experience and may not succeed;

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risks associated with foreign acquisitions, such as communication and integration problems resulting from geographic dispersion and language and cultural differences, compliance with foreign laws and regulations and general economic or political conditions in other countries or regions;

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potential loss of key employees of the acquired companies; and

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impairment of relationships with clients and employees of the acquired companies or our clients and employees as a result of the integration of acquired operations and new management personnel.  

Our management team’s attention may be
diverted by recent acquisitions and searches for new acquisition targets, and our business and operations may suffer adverse consequences
as a result.

Mergers and acquisitions are time intensive, requiring
significant commitment of our management team’s focus and resources. If our management team spends too much time focused on recent
acquisitions or on potential acquisition targets, our management team may not have sufficient time to focus on our existing business and
operations. This diversion of attention could have material and adverse consequences on our operations and our ability to be profitable.

We may be unable to scale our operations successfully.

Our growth strategy will place significant demands
on our management and financial, administrative and other resources. Operating results will depend substantially on