Company: SNBH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000760
Chunk: 63

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 63
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 and merger activity.

Loss from Operations

The Company’s operating loss for the three-month
period ended March 31, 2025 and 2024 was $493,550 and $352,769, respectively. The increase in operating loss of $140,781 was primarily
attributed to the non-cash expense related to stock issued for professional services and management fees.

Income Taxes

We did not have any income
taxes expense for the three months ended March 31, 2025 and 2024.

Net Loss

Our net loss for the three months period ended March 31, 2025 and 2024
was $491,297 and $416,754, respectively.

Liquidity and Capital
Resources

The consolidated financial
statements have been prepared using generally accepted accounting principles in the United States of America (“GAAP”) applicable
for a going concern, which assumes that the Company will realize its assets and discharge its liabilities in the ordinary course of business.

To the extent we are successful
in growing our business both organically and through acquisition, we continue to plan our working capital and the proceeds of any financing
to finance such acquisition costs.

Liquidity is the ability
of a company to generate funds to support its current and future operations, satisfy its obligations and otherwise operate on an ongoing
basis. At March 31, 2025, we had a cash balance of $1,839. These funds are kept in financial institutions located in United States.

As of March 31, 2025, we had total current assets of $6,789, consisting of
$1,839 in cash and prepaid expenses of $4,950. Our total current liabilities as of March 31, 2025 were $1,361,917 We had a working capital
deficit of $1,355,128 as of March 31, 2025.

22

Our ability to continue as
a going concern is dependent upon our ability to carry out our business plan, achieve profitable operations, obtain additional working
capital funds from our significant shareholders, and or through debt and equity financings. However, there can be no assurance that any
additional financings will be available to us on satisfactory terms and conditions, if any.

The accompanying 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.

Cash Flows