Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 14

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 14
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. A competitor’s
discovery of our trade secrets or know-how would impair our competitive position and have a material adverse impact on our business.

The auditor included a “going concern”
note in its audit report.

As noted in our audited financials for the years ended
December 31, 2024 and 2023, we’ve sustained recurring operating losses and our accumulated deficit raises substantial doubt about
our ability to continue as a going concern. We may not have enough funds to sustain the business until it becomes profitable. Even if
we obtain financing, we may not accurately anticipate how quickly we may use the funds and whether these funds are sufficient to bring
the business to profitability.

We are required to comply with certain provisions
of Section 404 of the Sarbanes-Oxley Act of 2002, as amended (the “Sarbanes-Oxley Act”) and if we fail to continue to comply,
our business could be harmed, and the price of our securities could decline.

Rules adopted by the SEC pursuant to Section 404 of
the Sarbanes-Oxley Act require an annual assessment of internal control over financial reporting, and for certain issuers an attestation
of this assessment by the issuer’s independent registered public accounting firm. The standards that must be met for management
to assess the internal control over financial reporting as effective are evolving and complex, and require significant documentation,
testing, and possible remediation to meet the detailed standards. We expect to incur significant expenses and to devote resources to Section
404 compliance on an ongoing basis. It is difficult for us to predict how long it will take or costly it will be to complete the assessment
of the effectiveness of our internal control over financial reporting for each year and to remediate any deficiencies in our internal
control over financial reporting. As a result, we may not be able to complete the assessment and remediation process on a timely basis.
In the event that our Chief Executive Officer or Chief Financial Officer determines that our internal control over financial reporting
is not effective as defined under Section 404, we cannot predict how regulators will react or how the market prices of our securities
will be affected; however, we believe that there is a risk that investor confidence and the market value of our securities may be negatively
affected.

10

Risks Related to Our Common Stock

Our stock price has experienced volatility and
may continue to experience volatility, and as a result, investors in its common stock could incur substantial losses.

The Company’s stock price has