Company: SNBH
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001731122-25-001574
Chunk: 100

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 2
Chunk 100
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-assessable or disallowed. It is calculated using tax rates that have
been enacted or substantively enacted by the balance sheet date.

Deferred
tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the
carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of assessable
tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences, and deferred tax assets are
recognized to the extent that it is probably that taxable profit will be available against which deductible temporary differences can
be utilized.

Deferred
tax is calculated using tax rates that are expected to apply to the period when the asset is realized, or the liability is settled. Deferred
tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which
case the deferred tax is changed to equity. Deferred tax assets and liabilities are offset when they related to income taxes levied by
the same taxation authority and we intend to settle its current tax assets and liabilities on a net basis.

Stock-based
Compensation

Stock
based compensation is accounted for based on the requirements of the Share-Based Payment topic of Accounting Standards Codification (“ASC”)
718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an
award of equity instruments over the period the employee or director is required to perform the services in exchange for the award. The
Accounting Standards Codification also requires measurement of the cost of employee and director services received in exchange for an
award based on the grant-date fair value of the award.

Pursuant
to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement
date.” The expense is recognized over the period of services or the vesting period, whichever is applicable. Until the measurement
date is reached, the total amount of compensation expense remains uncertain. We record compensation expense based on the fair value of
the award at the reporting date. The awards to consultants and other third parties are then revalued, or the total compensation is recalculated
based on the then current fair value, at each subsequent reporting date.

Recent
Accounting Pronouncements

Other
accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have
a material impact on our consolidated financial statements upon adoption. We