Company: SNBH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001731122-25-001154
Chunk: 69

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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 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.

20 

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 do not discuss recent pronouncements that are not anticipated to have an impact
on or are unrelated to our consolidated financial condition, results of operations, cash flows or disclosures.

RESULTS OF OPERATIONS

Comparison of Results of Operations for the three
months ended June 30, 2025 and 2024

Revenue

We generated revenue of 110,600
during the three months ended June 30, 2025. The revenue was generated through our new subsidiary AIG F&B which we acquired in April
2025 and began operations in May 2025. The revenue consisted of shipments of bottled water to independent but
related parties. We did not generate any revenue
during the three months ending June 30, 2024.

Gross Margin

We had a negative gross margin
of $4,512 for the three months ended June 30, 2025 due to shipping and other start up costs. There was no gross margin for the three months
ended June 30, 2024.

Operating Expenses

For the three months ended
June 30, 2025 and 2024, operating expenses consisted of the following:

2025
 
2024

Advertising and Marketing

—

—

General and Administrative

25,548

16,074

Legal and Professional

242,463

52,595

Management Fees

84,245

92,500

TOTAL OPERATING EXPENSES

352,256

161,169

    ●
    General and administrative fees totaled $25,548 for the three months ended June 30, 2025 representing an increase of $9,474 compared to the total of $16,074 for the three months ended June 30, 2024. The increase is attributable to costs associated with the closing of the acquisition of AIG F&B in April and getting the new operation running