Company: BTBDW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001477932-25-002248
Chunk: 611

Company: BT Brands, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 611
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/30/28  205,270 12/29/29  212,507 Thereafter  1,314,620   $2,307,143 

NOTE 10 – ACQUISITION On May 13, 2024, our 1519BT, LLC subsidiary completed the purchase of certain assets from LC Food Concepts. The acquired assets comprised a business operating as a high-end German-themed restaurant with approximately 175 seats located in Hobe Sound, Florida, doing business as “Schnitzel Haus. The aggregate purchase price was $943,000, including $850,000 paid at closing as payment for certain assets, separate payments of $65,000 for inventory on hand at closing, and $28,000 for the purchase of a utility vehicle and other items used in the business. With the acquisition, we assumed the seller’s remaining lease obligation of $5,400 monthly for 44 months. Aside from the lease obligation, no liabilities of the seller were assumed in the purchase of assets. A summary of the assets acquired is approximately as follows: Property, including leasehold improvements and equipment $625,000 Intangible covenant not to compete  100,000 Inventory  65,000 Vehicle and other  28,000 Operating lease right-of-use asset  182,878 Total identifiable assets acquired  1,000,878 Operating lease liability  (182,878 )Net identifiable assets acquired  818,000 Goodwill  125,000 Purchase price $943,000 

NOTE 11 – RELATED PARTY TRANSACTIONS Next Gen Ice Officers of BT Brands, Inc. also serve as officers and directors of NGI Corporation. Our total investment in equity and loans to NGI Corporation (“NGI”) is $424,000, which includes $120,000 in demand loans to NGI during 2024, the notes bear interest at 15% with interest payable-in-kind, and the balance on NGI notes is convertible into NGI Series B preferred shares and warrants at any time at the option of the holder, $6,600 in accrued interest has not been recognized as the conversion option is evaluated. The Company also has made $304,000 in prior equity investments in NGI. A portion of the NGI investment includes equity in the form of 179,000 common shares received in 2020 as consideration for extending the maturity of a note