Company: BTBDW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001477932-25-006037
Chunk: 11

Company: BT Brands, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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565  $2,319,555   120,000   Receivables Receivables consist of estimated rebates due from primary vendors. Inventory Inventory consists of food, beverages, and supplies. It is stated at the lower cost or market (first-in, first-out method) or net realizable value. Inventory includes $292,372 of Disney-licensed water in refillable cans related to the Company’s investment in NGI, see Note 9 to Consolidated Condensed Financial Statements. Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over their estimated useful lives, which range from three to thirty years.  We review long-lived assets to determine if the carrying value of these assets is recoverable based on estimated cash flows. Assets are evaluated at the lowest level, for which cash flows can be identified at the restaurant level. In determining future cash flows, we estimate the future operating results of each restaurant. If such assets are considered impaired, the impairment is the amount by which the assets’ carrying value exceeds the assets’ fair value. Goodwill and Intangible Assets and Other Assets Goodwill is not amortized and is tested for impairment at least annually. The cost of other intangible assets is amortized over their expected useful lives.  Assets Held for Sale  The Company closed its Ham Lake, Minnesota, location in February 2025. A Burger Time location in Richmond, Indiana, closed on 2018, and on June 29, 2025, was under contract for sale. The sale of Richmond assets was completed on August 13, 2025. The Ham Lake and Richmond properties meet the held for sale criteria and are reflected in the accompanying financial statements as offered for sale.  Income Taxes The Company follows Accounting Standards Codification (ASC 740), Accounting for Income Taxes. ASC 740 using the asset and liability approach in accounting for income taxes. Deferred tax assets and liability balances are determined based on differences between financial reporting and tax bases of assets and liabilities. They are measured using the enacted tax rates and laws that will be in effect when the differences are expected to be reversed. If necessary, we provide a valuation allowance to reduce deferred tax assets to their estimated realizable value. The deferred tax assets are reviewed periodically for recoverability, and valuation allowances are adjusted as required. 

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