Company: BTBDW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001477932-25-002248
Chunk: 185

Company: BT Brands, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 185
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The deferred tax assets are recognized for temporary deductible differences, operating loss, and tax credit carryforwards, and deferred tax liabilities are recognized for temporary taxable differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The tax effect of the temporary differences and carryforwards are as follows for the respective fiscal years:   2024  2023 Deferred tax assets:      Net operating loss carryforward $813,000  $421,000 Stock-based compensation  127,000   78,000 Future tax benefit of impairment allowances  144,000   49,000 Accrued compensation  -   22,000 Unrealized gain on short-term investments  -   2,000 Total deferred tax assets  1,084,000   572,000 Less: valuation allowance  (616,000 )  - Total deferred tax assets, net  468,000   572,000 Deferred tax liabilities:        Property and equipment tax depreciation difference  (430,000 )  (349,000 )Unrealized loss (gain) on short-term investments  (21,000 )  - Goodwill  (17,000 )  (17,000 )Total deferred tax liabilities  468,000   366,000 Net deferred tax asset $-  $206,000  The following table summarizes the components of the provision for income taxes:   2024   2023 Current income tax expense (benefit) $-  $- Deferred income taxes (benefit)  (410,000 )  (145,000 )Change in valuation allowance  616,000   - Total income tax expense (benefit) $206,000  $(145,000 ) Total income tax expense for the years ended December 29, 2024, and December 31, 2023, differed from the amounts computed by applying the U.S. Federal statutory tax rate of 21% to pre-tax income as follows:    2024  2023 Total (benefit) computed by applying the statutory federal rate $(442,000 ) $(216,000 )State income tax (