Company: BTBDW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001477932-25-002248
Chunk: 258

Company: BT Brands, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 258
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 and $1.9 million on December 31, 2023. These carryforwards are available for future utilization subject to taxable income limitations and under Internal Revenue Code Section 382 due to ownership changes. The Company has various state net operating loss carryforwards of $3.1 million, a portion of which will expire after 15 years beginning in 2037 and a portion of which has indefinite life subject to limitation consistent with federal tax rules.

 F-13Table of Contents

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) $