Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 166

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1B
Chunk 166
---
 related to potential merger activity.

    ●
    Management fees primarily consisted of compensation of our Chief Operating officer and a consultant. The fees increased during 2024 as the Company pursued a merger opportunity. No management fees were taken during 2023.

    ●
    Our general and administrative costs decreased by $29,743, as the Company’s cash restrictions, austerity measures were implemented to reduce expenses until such time as the cash flow improves. 

Income (Loss) from
Operations

As a result of the foregoing, for the year ended December
31, 2024, loss from operations amounted to $881,648, as compared to loss from operations of $250,859 for the year ended December 31, 2023.

24

Other Income (Expense)

Other income (expense) was ($254,798) for the year
ended December 31, 2024, compared to ($226,875) for the year ended December 31, 2023. The expenses for both years are entirely related
to interest expense, including default interest.

Income Taxes

We did not have any income
taxes expense for the years ended December 31, 2024 and December 31, 2023.

Net Income (Loss)

Net loss for the years ended
December 31, 2024 and 2023 were $1,136,446 and $477,734, respectively. The increase in Net Loss was primarily due to the increased professional
fees and management fees as the Company pursues a merger opportunity.

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 December 31, 2024 and 2023, we had cash balance of approximately $3,432 and $1,299, respectively. These funds are kept in financial
institutions located in United States.

Cash flows from Operating Activities

Operating activities used $323,367 in cash the year
ended December 31,