Company: BTBDW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001477932-25-003689
Chunk: 47

Company: BT Brands, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 are permitted to occur. Potential Sale and Issuance of Stock On December 13, 2024, BT Brands, Inc. (the “Company”) entered into an Equity Distribution Agreement (the “Distribution Agreement “) with Maxim Group LLC (“Maxim”) to sell shares of the Company’s common stock, par value $0.002 per share (the “Common Stock”), subject to the maximum aggregate sales proceeds of up to $3,005,000 pursuant to the applicable prospectus supplement, from time to time, through an “at the market offering program under which Maxim will act as sales agent. 

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NOTE 9 - RELATED PARTY TRANSACTION NGI Corporation Until April 1, 2025, two BT Brands, Inc. officers also served as NGI Corporation’s (“NGI”) directors. As of March 30, 2025, our total investment in equity and loans to NGI is $484,000, which includes $180,000 in demand loans to NGI, of which $60,000 was advanced in the first quarter of 2025. The notes bear interest at 15%, payable-in-kind, and the balance on NGI notes is convertible into NGI Series B preferred shares and warrants at any time at the option of the holder. Approximately $13,000 in accrued interest has not been recognized as the conversion option is evaluated. Following the end of the first quarter, effective April 2, 2025, the notes were converted by BT Brands into the purchase of Disney-character aluminum bottles from NGI’s B Water subsidiary on a dollar per bottle basis, aggregating approximately 200,000 bottles. NGI has the right to repurchase the bottles from us at prices ranging from $1.05 per bottle (if NGI repurchases the bottles before July 1, 2025) to $1.50 per bottle (if NGI repurchases the bottles after July 1, 2025). We have the option to purchase additional bottles from NGI on similar terms. As consideration for the purchase of bottles, BT Brands will be granted an option to purchase 10% of the fully-diluted equity of NGI or its B Water for $.01 per share. The terms of the option are expected to be finalized in the next 30 days. The Company has also made $304,000 in prior equity investments in NGI. A portion of the NGI investment includes equity in