{"url_path":"/sec/snbh/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 LEGAL PROCEEDINGS**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/1358633/0001493152-26-023170-index.html","accession_number":"0001493152-26-023170","cik":"0001358633","ticker":"SNBH","issuer_name":"SENTIENT BRANDS HOLDINGS INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1358633/0001493152-26-023170-index.html","primary_entity_key":"0001358633","primary_entity_name":"SENTIENT BRANDS HOLDINGS INC."},"word_count":276,"has_tables":true,"body_markdown":"**ITEM\n1. LEGAL PROCEEDINGS**\n\n \n\nFrom\ntime to time, we are subject to ordinary routine litigation incidental to our normal business operations. On February 6, 2026, Gregg\nTempleton filed a Statement of Claim with the American Arbitration Association claiming Failure to Pay Wage, Failure to Reimburse Expenses;\nStatutory Wage Violation under New York Law; Fraud and Unjust Enrichment. The AAA rejected the claim due to the procedural process and\nimproper venue election. After rejection by AAA, Templeton’s legal counsel advised the Company of his intention to petition a New\nYork Court to accept the complaint under an arbitration demand. The petition was filed on March 25, 2026. The claim related to an Employment\nAgreement dated on or about February 28, 2019. On May 30, 2025, the Company received a demand letter from an attorney representing the\ncontractor in the amount of $286,010 including wages, expenses and interest. Mr. Templeton asserts interest has continued to accrue and\nthe current claim now exceeds $300,000. Templeton was terminated by the Company in January of 2021 after an unauthorized diversion of\n$40,000 in Company funds to Templeton’s personal accounts was discovered by the Company, as well as his being barred by FINRA from\ncertain aspects of any securities business, for similar conduct on multiple prior occasions. The Company disputes the claim in its entirety\nbut has maintained an accrual of $54,525 related to the dispute. This amount was recorded on March 31, 2022 as an account payable for\nservices in that quarter. The Company has not made any change to its accrual as of this time. The Company will defend itself vigorously\nand assert claims of misconduct against the former contractor."}