Sentient Brands Holdings Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company generated no revenue during the three months ended September 30, 2024, consistent with the same period in 2023, primarily due to a reorganization and a focus on new product development. Operating expenses surged to $228,266, compared to $34,916 in the prior year, reflecting increased general and administrative costs, legal and professional fees, and a substantial inventory write-off of $150,000, which reduced inventory value to zero.
For the nine months ended September 30, 2024, total operating expenses reached $742,204, a stark increase from $118,072 in the same period of 2023. The net loss for this nine-month period was $933,749, compared to a loss of $242,631 in 2023. The increase in losses was attributed to a non-cash expense of $258,000 for shares issued to a consultant and the aforementioned inventory write-off.
As of September 30, 2024, the company reported total current assets of $2,232, a significant decline from $159,752 as of December 31, 2023. Total assets also decreased to $23,066 from $183,494 in the same timeframe. Current liabilities increased to $2,275,823, up from $2,117,304, resulting in a working capital deficit of $2,273,591.
The company’s accumulated deficit grew to $4,467,129 as of September 30, 2024, compared to $3,533,380 at the end of 2023. Cash at the end of the reporting period was $1,452, a slight increase from $1,299 at the end of the previous fiscal year. The net cash used in operating activities for the nine months was $(190,347), compared to $(60,794) in 2023, indicating a worsening cash flow situation.
Sentient Brands is focusing on product development in the luxury and premium market, particularly through its Oeuvre product line, which integrates CBD, wellness, and beauty. The company has engaged in a growth strategy that includes identifying acquisition targets in high-margin sectors. However, it faces intense competition and has identified material weaknesses in its internal controls, which management plans to address by engaging third-party firms and hiring additional staff.
Overall, the company’s financial health appears precarious, with ongoing losses and a reliance on future financing to sustain operations.
About SENTIENT BRANDS HOLDINGS INC.
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