Company: SNBH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000760
Chunk: 80

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 80
---
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 from Operating Activities

Operating activities used $7,593 in cash for the three
months ended March 31, 2025, compared with cash used of $112,606 for the three months ended March 31, 2023. Our negative operating cash
flow for the three months ended March 31, 2024, was largely the result of our net loss of $491,297 offset by non cash expense for consulting
services of $395,360. Our payables for the quarter increased by $92,325. Operating activities used $112,606 in cash for the three months
ended March 31, 2024, compared with cash used of $10