Company: BTBDW
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001477932-25-008407
Chunk: 23

Company: BT Brands, Inc.
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 of Stock On December 13, 2024, BT Brands entered into an Equity Distribution Agreement (the “Distribution Agreement “) with Maxim Group LLC (“Maxim”) to sell shares of the Company’s 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. The Distribution Agreement provides that Maxim will be entitled to a fixed commission of 3% of the gross proceeds from the sale of common stock under the share distribution.

NOTE 9 - RELATED PARTY TRANSACTION NGI Corporation As of September 28, 2025, the total loans to NGI are $744,858. This amount includes:   ·$385,637 in demand loans to NGI, which bear interest at 15% per year, payable-in-kind. The aggregate amount of principal and interest accrued on these loans are convertible into shares of NGI Series B preferred stock and warrants at any time at BT Brands’ option. The Series B shares, including accrued in-kind dividends, are convertible to NGI common shares on a share-for-share basis. Approximately $45,000 in accrued interest on these loans has not been recognized. BT Brands periodically evaluates the status of its conversion option.     ·$359,221 in a senior secured promissory note acquired from the original lender to NGI, bearing interest at 12% per year and granting BT Brands a senior secured interest in all of the assets of NGI. The principal amount of this note was paid in full in October 2025  BT Brands has purchased Disney-character aluminum bottles through direct payment to vendors and suppliers, aggregating approximately 339,511 bottles as of September 28, 2025. NGI has the option to repurchase the bottles from BT at $1.50 per bottle. Under the terms of the agreement, BT may sell bottles to a third party; in this case, BT must remit to NGI the net sales price over $1.50 per bottle. As of September 28, 2025, $339,511 has been spent to purchase,  process, and warehouse bottles under this program. We expect the bottles owned by BT to be sold during the next six months. We have the option to buy additional bottles from NGI on similar terms. The sale of 339,511 cans owned by BT Brands is