Company: BTBDW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001477932-25-006037
Chunk: 20

Company: BT Brands, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 16Table of Contents

NOTE 9 - RELATED PARTY TRANSACTION NGI Corporation As of June 29, 2025, the total amount invested in equity and loans to NGI is $996,357. This amount includes:   ·$333,136 in demand loans to NGI, which bear interest at 15%, payable-in-kind. The aggregate amount of principal and interest accrued on these loans are convertible into shares of NGI Series B preferred stock and warrants at any time at BT Brands’ option. The Series B shares, including accrued in-kind dividends, are convertible to NGI common shares on a share-for-share basis. Approximately $25,000 in accrued interest on these loans has not been recognized. BT Brands periodically the status and evaluates its conversion option.    · As consideration for the demand loans, the 358,000 warrants noted below were extended for five years beyond the original expiration date and the warrants were modified to reflect the provision that the exercise price per share shall be adjusted to equal the share price equal to any NGI's offering price per share of any common stock offering below $1.00 per share of more than $1 million in gross offering cost.    ·$359,221 in a senior secured promissory note acquired from the original lender to NGI, bearing interest at 12% per year and granting to BT Brands a senior secured interest in all of the assets of NGI; and    ·$304,000 in equity investments.  BT Brands has purchased Disney-character aluminum bottles through direct payment to vendors and suppliers, aggregating approximately 292,372 bottles as of June 29, 2025. NGI has the option to repurchase the bottles from BT at $1.50 per bottle. Under the terms of the agreement, BT may sell bottles to a third party; in this case, BT must remit to NGI the net sales price over $1.50 per bottle. As of June 29, 2025, $292,372 has been spent to purchase and process bottles under this program. We expect the bottles owned by BT to be sold during the second half of 2025. We have the option to buy additional bottles from NGI on similar terms.   Prior to 2023, BT Brands made a series of equity investments in NGI and received 179,000 common shares and warrants expiring on March 31, 2029, to purchase 358,000 shares of common