Company: BTBDW
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001477932-25-008407
Chunk: 18

Company: BT Brands, Inc.
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 1
Chunk 18
---
 one-year options and 40,000 options, with 20% vesting on the date of grant and an additional 20% vesting on each of the following four anniversary dates.   In 2024, we issued a total of 15,000 ten-year options to the then-existing outside member of our Board of Directors to purchase shares at $1.61 per share; we also granted 5,000 fully vested options to purchase shares at $1.70 per share to a new member of the Board in 2024. In 2022, we granted 216,000 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 for over five years, provided the consultant continues in this capacity. Assuming the consulting agreement continues to its full term, we project that approximately $112,000 in stock-based compensation will be recognized, with $32,000 per year for each of the next three years, and $16,000 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 for the 39-week periods in 2025 and 2024 were $83,304 and $110,000, respectively. Based on current estimates, we project that approximately $142,000 in stock-based compensation expense for stock options will be recognized over the next three years: $21,000 in the remainder of 2025, $49,000 in 2026, and $72,000 thereafter. Subject to the discretion of the Compensation Committee of the board of directors at the time of grant, generally,  stock options granted to employees and directors vest 20% upon grant and 20% in annual installments for four years. Unless modified by the Board of Directors, options expire ten years from the date of the grant and terminate 90 days after the termination of employment. The options granted July 30, 2025, include 40,000 options that immediately vested and expire one year from the date of grant.  We utilize the Black-Scholes option pricing model when determining the compensation cost associated with stock options issued using the