Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 59

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 59
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, and (v) recognize revenue when (or as) the
entity satisfies a performance obligation.

Net
loss per common share – basic and diluted

Authoritative
guidance on Earnings per Share requires dual presentation of basic and diluted earnings or loss per share (“EPS”) for all
entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation
to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution; diluted EPS reflects the potential dilution
that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in
the issuance of common stock that then shared in the earnings of the entity.

Basic
loss per share is computed by dividing net loss applicable to common shareholders by the weighted average number of common shares outstanding
during the period. Diluted loss per share reflects the potential dilution that could occur if dilutive securities and other contracts
to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the
earnings of the Company, unless the effect is to reduce a loss or increase earnings per share.

    10

Stock-based
compensation

In
accordance with ASC No. 718, Compensation – Stock Compensation (“ASC 718”), the Company measures the compensation costs
of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over
the period during which employees are required to provide services.

During
the nine months ended September 30, 2025, and 2024, there were no stock based awards issued.

Fair
value of financial instruments

We
value our financial assets and liabilities on a recurring basis using the fair value hierarchy established in Accounting Standards Codification
(“ASC”) 820, Fair Value Measurements and Disclosures.

ASC
820 describes three levels of inputs that may be used to measure fair value, as follows:

Level
1 input, which include quoted prices in active markets for identical assets or liabilities.

Level
2 inputs, which include observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities; quoted
prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated
by observable market data for substantially the full term of the asset or liability; and

Level
3 inputs, which include unobservable inputs that are supported by little or no market activity and that are