NOTE 1 – ORGANIZATION, NATURE OF OPERATIONS, AND RISKS AND UNCERTAINTIES

Organization

The accompanying consolidated financial statements include the accounts of Sentinel Holdings, Ltd. (“Sentinel”) and its majority-owned subsidiaries, Centinela Security, Inc. (“Centinela” and formerly known as Sentry Protective Services, Inc. or “Sentry” prior to January 20, 2026), United Security Specialists, Inc. (“USS”), and Gladiator Solutions, Inc. (“Gladiator”), (collectively “Sentinel” or the “Company”). Sentinel Holdings, Ltd. was incorporated in the State of Nevada on January 23, 2015.

Nature of Operations

The Company provides professional security services through its operating subsidiaries. It offers armed and unarmed security personnel and services, including on-site protection, mobile patrol, and event security, enhanced by smartphone-based security applications. It operates primarily in California and serves a diverse clientele, including businesses, individuals, residential communities, and event organizers.

Risks and Uncertainties

The Company operates in a highly competitive industry that is subject to intense market dynamics, shifting consumer demand, and economic fluctuations. The Company’s operations are exposed to significant financial, operational, and strategic risks, including potential business disruptions and liquidity challenges.

The Company evaluates and discloses risks and uncertainties that could materially affect its financial condition, results of operations, and business outlook. Key factors contributing to variability in revenues and earnings include:

Given such uncertainties, the Company faces challenges in accurately forecasting financial performance and may experience material risks affecting liquidity, business continuity, and long-term strategic growth. The Company continuously assesses these risks and implements measures to mitigate their potential impact.