SENTIENT BRANDS HOLDINGS INC

Previous wording

The following discussion and analysis of the results of operations and financial condition of Sentient Brands Holdings Inc. for the three and six months ended June 30, 2024 and 2023 should be read in conjunction with the Sentient Brands Holdings Inc. unaudited condensed consolidated financial statements and the notes thereto contained elsewhere in this report. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under the Risk Factors, Special Note Regarding Forward-Looking Statements and Business sections in our Form 10-K as filed with the Securities and Exchange Commission on April 16, 2024. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions to identify forward-looking statements.

Current wording

The following discussion and analysis of the results of operations and financial condition of Sentient Brands Holdings Inc. for the three and nine months ended September 30, 2024 and 2023 should be read in conjunction with the Sentient Brands Holdings Inc. unaudited condensed consolidated financial statements and the notes thereto contained elsewhere in this report. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under the Risk Factors, Special Note Regarding Forward-Looking Statements and Business sections in our Form 10-K as filed with the Securities and Exchange Commission on April 16, 2024. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions to identify forward-looking statements.

Previous wording

The Company’s operating loss for the three-month period ended June 30, 2024 and 2023 was $161,169 and $47,816, respectively. The increase in operating loss of $113,353 was primarily attributed to the increased expenses related to the Company pursuing a transaction with a third party.

Current wording

The Company’s operating loss for the three-month period ended September 30, 2024 and 2023 was $228,266 and $34,916, respectively. The increase in operating loss of $263,182 was primarily attributed to the increased expenses related to the Company pursuing a transaction with a third party.

Previous wording

Our net loss for the three months period ended June 30, 2024 and 2023 was $225,154 and $89,711, respectively.

Current wording

Our net loss for the three months period ended September 30, 2024 and 2023 was $291,841 and $77,074, respectively.

Previous wording

Comparison of Results of Operations for the six months ended June 30, 2024 and 2023

Current wording

Comparison of Results of Operations for the nine months ended September 30, 2024 and 2023

Previous wording

During the six months ended June 30, 2024 we had no revenue and in 2023, we generated minimal revenue due to the Company’s reorganization and focus on the development of our new product lines and related marketing preparations.

Current wording

During the nine months ended September 30, 2024 we had no revenue and in 2023, we generated minimal revenue due to the Company’s reorganization and focus on the development of our new product lines and related marketing preparations.

Previous wording

For the six months ended June 30, 2024, and 2023, operating expenses consisted of the following:

Current wording

For the nine months ended September 30, 2024, and 2023, operating expenses consisted of the following:

Previous wording

The Company’s operating loss for the six-month period ended June 30, 2024, and 2023 was $513,938 and $83,055, respectively. The increased in operating loss of $430,883 was primarily attributed to the increased professional fees and management fees as we attempt to do a transaction with a third party.

Current wording

The Company’s operating loss for the nine month period ended September 30, 2024, and 2023 was $742,204 and $117,972, respectively. The increased in operating loss of $624,232 was primarily attributed to the increased professional fees and management fees as we attempt to do a transaction with a third party.

Previous wording

We did not have any income taxes expense for the six months ended June 30, 2024 and 2023.

Current wording

We did not have any income taxes expense for the nine months ended September 30, 2024 and 2023.

Previous wording

Our net loss for the six months period ended June 30, 2024 and 2023 was $641,908 and $165,556, respectively.

Current wording

Our net loss for the nine months period ended September 30, 2024 and 2023 was $933,749 and $242,631, respectively.

Previous wording

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 June 30, 2024, we had a cash balance of $1,633. These funds are kept in financial institutions located in United States.

Current wording

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 September 30, 2024, we had a cash balance of $1,452. These funds are kept in financial institutions located in United States.

Previous wording

As of June 30, 2024, we had total current assets of $153,193, consisting of $1,633 in cash, $150,000 in inventories and prepaid expenses of $1,560. Our total current liabilities as of June 30, 2024 were $2,215,967. We had a working capital deficit of $2,062,774 as of June 30, 2024.

Current wording

As of September 30, 2024, we had total current assets of $2,232, consisting of $1,452 in cash and prepaid expenses of $780. Our total current liabilities as of September 30, 2024 were $2,275,823. We had a working capital deficit of $2,273,591 as of September 30, 2024.

Previous wording

Operating activities used $178,666 in cash for the six months ended June 30, 2024, compared with cash used of $23,793 for the six months ended June 30, 2023. Our negative operating cash flow for the six months ended June 30, 2024, was largely the result of our net loss of $641,908 offset by non cash expense for consulting services of $340,750. Our prepaid expenses decreased by $6,893 and our subscriptions payable for stock purchases increased by $96,500. Our payables for the quarter decreased by $2,163. Our negative operating cash flow for the six months ended June 30, 2023, was largely the result of our net loss of $165,556 offset by non cash depreciation of $1,939 and other noncash activity totaling $140,900. Accounts payable and accrued expenses decreased by $25,615.

Current wording

Operating activities used $190,347 in cash for the nine months ended September 30, 2024, compared with cash used of $60,794 for the nine months ended September 30, 2023. Our negative operating cash flow for the nine months ended September 30, 2024, was largely the result of our net loss of $933,749 offset by non cash expense for consulting services of $340,750 and an inventory write off of $150,000. Our prepaid expenses decreased by $7,673 and our subscriptions payable for stock purchases increased by $105,000. Our payables for the quarter increased by $110,073. Our negative operating cash flow for the nine months ended September 30, 2023, was largely the result of our net loss of $242,631 offset by non cash depreciation of $2,909 and other noncash activity totaling $140,900. Accounts payable and accrued expenses decreased by $13,489.

Previous wording

There were no cash flow from investment activities for the six months ended June 30, 2024 and 2023.

Current wording

There were no cash flow from investment activities for the nine months ended September 30, 2024 and 2023.

Previous wording

Net cash flows provided by financing activities during the three months ended June 30, 2024, amounted to $179,000 compared with cash flows provided by financing activities of $22,795 for the six months ended June 30, 2023. Our positive cash flows for the six months ended June 30, 2024 consisted of proceeds from the sale of common stock. Our positive cash flows for the three months ended June 30, 2023 consisted of proceeds from short term loans payable.

Current wording

Net cash flows provided by financing activities during the nine months ended September 30, 2024, amounted to $190,500 compared with cash flows provided by financing activities of $60,795 for the nine months ended September 30, 2023. Our positive cash flows for the nine months ended September 30, 2024 consisted of proceeds from the sale of common stock totaling $179,000 and proceeds from a note payable totaling $11,500. Our positive cash flows for the nine months ended September 30, 2023 consisted of proceeds from short term loans payable totaling $22,795 and sales of common stock totaling $38,000.

Previous wording

As of June 30, 2024, we have an accumulated deficit of $4,175,288. Our ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and our ability to achieve and maintain profitable operations. While we are expanding our best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be available for operations. These conditions raise substantial doubt about our ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty.

Current wording

As of September 30, 2024, we have an accumulated deficit of $4,467,129. Our ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and our ability to achieve and maintain profitable operations. While we are expanding our best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be available for operations. These conditions raise substantial doubt about our ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty.