Company: BTBDW
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001477932-25-008407
Chunk: 24

Company: BT Brands, Inc.
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 1
Chunk 24
---
 expected to generate an estimated $509,266. Together with other asset sales at NGI, the Company believes that loan amounts due from NGI will be repaid. 

 19Table of Contents

 Prior to 2023, BT Brands made a series of equity investments in NGI, aggregating a carrying value of $304,000. We concluded on September 28, 2025, that the given NGI’s current status includes recurring operating losses and the lack of sufficient capital to sustain operations without external funding. There are no observable market transactions to support the carrying value of BT Brands’ minority investment. Therefore, we concluded on September 28, 2025, that our investment in NGI is impaired and have recorded an impairment allowance of $304,000 to fully write down our investment.  As of September 28, 2025, our total equity investment and loans to NGI is as follows:   Total Equity and Loans  Bottled Inventory Balance, December 31, 2023 $304,000  $- 2024 Activity  120,000   - Balance, December 29, 2024  424,000   - 39 weeks ended September 28, 2025  624,858   339,511 Allowance for impairment  (304,000)  - Balance, September 28, 2025 $744,858  $339,511  As of September 28, 2025, assuming exercise of all warrants and options, BT Brands owns less than 5% of NGI’s fully diluted shares. Our COO, Kenneth Brimmer, is a member of NGI’s board and its CFO. Effective April 1, 2025, Gary Copperud resigned from the NGI board of directors.

NOTE 10 – CONTINGENCIES In the course of its business, the Company may be a party to claims and legal or regulatory actions arising from the conduct of its business. We are currently evaluating a potential claim under the Village Bier Garten lease assumption agreement; however, no liability has been asserted. We are unaware of any significant asserted or potential claims that could materially impact on our financial position. 

NOTE 11 – REVISION OF FIRST AND SECOND QUARTER UNAUDITED RESULTS During the third quarter of 2025, the Company identified errors in the March 30, 2025 and June