Company: BTBDW
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001477932-25-008407
Chunk: 55

Company: BT Brands, Inc.
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 2
Chunk 55
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 depend on Bagger Dave’s success in completing the announced sale of assets.  Management believes that current cash and investment balances will be adequate to meet operating and investing requirements for the foreseeable future. 

Our exposure to NGI Corporation represents a significant use of liquidity. As of September 28, 2025, we held $744,858 in notes receivable from NGI, including a $359,221 senior secured promissory note, which was repaid in October 2025. We continue to monitor NGI’s financial position and evaluate the recoverability of these amounts based on collateral and expected cash flows. Repayments from NGI, or proceeds from sales of NGI-related products, could provide additional liquidity in future periods.

We have also invested in Disney-licensed water-bottle inventory totaling $339,511, which is expected to be sold during the second half of 2025. These sales are anticipated to generate cash flow and improve working capital; however, timing and margin realization depend on retail demand and market conditions.

Forward-Looking Statements

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “may,” “should,” and similar expressions are intended to identify forward-looking statements.

These statements include, but are not limited to, expectations regarding the performance of our investments, the collectability of related-party notes, anticipated sales of inventory, and our ability to meet future liquidity needs. Actual outcomes may differ materially due to factors such as changes in economic conditions, operating performance of equity affiliates, collectability of loans, inventory demand, supply-chain disruptions, access to financing, and other risks described in our filings with the Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Summary of Cash Flows

Cash Flows Provided by Operating Activities

Operating cash flow for the 39 weeks ending September 28, 2025, was $402,800. The source of cash is the result of improved operating income and seasonal patterns in our business, which significantly affect the Company’s cash flow.