Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 680

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 9
Chunk 680
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. The Company has a working capital deficit of $2,206,318 and
$1,957,552 at December 31, 2024 and 2023, respectively. The Company currently has limited liquidity and has not completed its efforts
to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time. These factors among
others, raises substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments
that may result from the outcome of these uncertainties. The Company will require additional financing moving forward and is pursuing
various strategies to accomplish this, including seeking equity funding and/or debt funding from private placement sources. Although management
believes that it will be able to obtain the necessary funding to allow the Company to remain a going concern through the methods discussed
above, there can be no assurances that such methods will prove successful.

Management anticipates that the Company will be dependent,
for the near future, on additional investment capital to fund operating expenses. There are no assurances that the Company will be successful
in this or any of its endeavors or become financially viable and continue as a going concern.

NOTE 4. INVENTORIES

Inventories are stated at the lower of cost and net
realizable value. Cost is determined using the moving average method and net realizable value is the estimated selling price less costs
of disposal in the ordinary course of business. The cost of inventories includes direct costs plus shipping and packaging materials. At
December 31, 2023 based on a sale quote received in April 2024 for its remaining inventory, the Company recorded a charge of $63,477 to
write down the inventory to its net realizable value of $150,000. The Company did not consummate a sale of the inventory. As a result,
on September 30, 2024, the Company recorded an additional charge of $150,000 reducing the value of the inventory on hand to $0.

As of December 31, 2024 and December 31, 2023, the
Company product inventories are contained in a storage and fulfilment center located at City Logistics in Fairfield, NJ.

NOTE 5. CONVERTIBLE NOTES PAYABLE

Since the change of control of the Company in May
2018, the Company received advances from Pure Energy 714 LLC, an unaffiliated entity, totaling $240,803. On March 15, 2019, specific terms
were reached on $70