Company: BTBDW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001477932-25-002248
Chunk: 468

Company: BT Brands, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 468
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-use asset of $182,878. The present value, discounted at 6.5% of the remaining lease obligation of $161,774, is reflected as a liability in the accompanying consolidated balance sheet at December 29, 2024. The following is a schedule of the approximate minimum future lease payments on the operating leases as of December 29, 2024, including amounts assuming we exercise the option to extend leases where we believe that exercise of the option is likely.   Total 2025 $344,410 2026  368,288 2027  339,165 2028   225,193 2029  214,863 Thereafter  582,279 Total future minimum lease payments  2,074,198 Less - interest  (302,387 )Present value of lease obligations $1,771,811  The weighted average remaining lease term is approximately 6.6 years, and the weighted average discount rate is approximately 4.79%. We cannot determine the interest rate implicit in our leases. Therefore, the discount rate represents our estimated incremental interest rate to borrow an amount approximating the aggregate lease payments collateralized by the property over a similar term at the commencement of the lease. The total operating lease expense for 2024 and 2023 were $408,696 and $298,567, respectively. Cash paid for leases was approximately $330,000 in 2024 and $282,000 in 2023. Variable expenses for leased properties were $57,525 in 2024 and $16,500 in 2023. Through January 2025, we paid $550 per month under an annual rental agreement for corporate and administrative office spaces in West Fargo, North Dakota, which was terminated in January 2025, and we paid $1,350 per month in Minnetonka, Minnesota, for a combined monthly rent of approximately $1,900 in 2024.

NOTE 5 – INCOME TAXES Income taxes are accounted for in accordance with ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events included in the financial statements or tax returns. As of December 29, 2024, the Company has recorded total deferred tax assets of $616,000, primarily attributable to net operating loss carryforwards (NOLs) offset by temporary differences related to property and equipment. Management assess