Company: BTBDW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001477932-25-003689
Chunk: 43

Company: BT Brands, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 options, including 175,000 options to company officers and 41,000 options to employees and a consultant to purchase shares at $2.58 per share. In 2023, we granted a consultant a warrant to purchase 100,000 shares at $2.50 per share for seven years. The warrant vests monthly over five years, so long as the consultant continues in this capacity. Assuming the consulting agreement continues to full term, we project that approximately $112,000 in stock-based compensation will be recognized at $32,000 per year in each of the next three years, and $16,000 will be recognized in 2028. Compensation expense equal to the fair value of the options at the grant date is recognized in general and administrative expense over the applicable service period. Total equity-based compensation expenses for stock options and warrants in the first quarters of 2025 and 2024 were $31,000 and $54,000, respectively. Based on current estimates, we project that approximately $100,000 in stock-based compensation expense for stock options will be recognized over the next two years: $59,000 in 2025 and $41,000 in 2026. As outlined in each agreement, stock options granted to employees and directors vest 20% upon grant and 20% in annual installments for four years. Options expire ten years from the date of the grant. 

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We utilize the Black-Scholes option pricing model when determining the compensation cost associated with stock options issued using the following significant assumptions:  ·Stock price – Published trading market values of the Company’s common stock as of the grant date. ·Exercise price – The stated exercise price of the stock option. ·Expected life – The simplified method ·Expected dividend – The rate of dividends expected to be paid over the term of the stock option. ·Volatility – Estimated volatility. ·Risk-free interest rate – The daily United States Treasury yield curve rate corresponding to the expected life of the award Information regarding our stock options is summarized below:       Weighted Average  Weighted Average   Aggregate 13-Week period ended March 30, 2025- Number of Options  ExercisePrice  Remaining Term(In Years)  IntrinsicValue Options outstanding at December 29, 2024  339,250  $2.53   7.4  $0