Company: BTBDW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001477932-25-003689
Chunk: 45

Company: BT Brands, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 and insurance. The remaining lease covering the former Village Bier Garten location was assigned to an unrelated party in January 2025. The Keegan’s lease is for approximately 2,800 square feet of restaurant space. At inception, 131-month Keegan’s lease provided for an initial rent of $5,000 per month with an annual escalation equal to the greater of 3% or the Consumer Price Index. The lease is being accounted for as an operating lease. At the inception of the lease, we recorded an operating lease obligation and a right-of-use asset of $624,000. The present value of future lease payments discounted at 3.75% of the remaining lease obligation of approximately $493,000 is reflected as a liability in the accompanying financial statements at March 30, 2025.  

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The PIE lease is for approximately 3,500 square feet of restaurant and bakery production space. The terms of the 60-month lease provide for an initial rent of $10,000 per month with an annual escalation of 3% after 24 months. The PIE lease includes three five-year renewal option periods. The PIE lease is accounted for as an operating lease. At the inception of the lease, we recorded an operating lease obligation and a right-of-use asset of $1,055,000. The present value, discounted at 4.5% of the remaining lease obligation of approximately $828,000, is reflected as a liability in the accompanying financial statements at March 30, 2025.  In May 2024, with the acquisition of Schnitzel Haus assets, we assumed the remaining 44 months on the restaurant’s lease obligation for approximately $5,400 per month. The Schnitzel Haus lease is accounted for as an operating lease. At its inception, we recorded an operating lease obligation and a right-of-use asset of $182,878. The present value, discounted at 6.5% of the remaining lease obligation of $156,000, is reflected as a liability in the accompanying financial statements at March 30, 2025. Following is a schedule of the approximate minimum future lease payments on the operating leases as of March 30, 2025:   Total Remainder 2025 $192,439 2026  267,996 2027  220,251 2028  222,507 2029  225,193