Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Mar. 29, 2015 | 1-May-15 | |
Document and Entity Information: | ||
Entity Registrant Name | PARKS AMERICA, INC | |
Entity Trading Symbol | PRKA | |
Document Type | 10-Q | |
Document Period End Date | 29-Mar-15 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1297937 | |
Current Fiscal Year End Date | -18 | |
Entity Common Stock, Shares Outstanding | 74,381,537 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED_BALANCE_SHEETS_UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Mar. 29, 2015 | Sep. 28, 2014 |
ASSETS | ||
Cash - unrestricted | $283,236 | $661,842 |
Cash - restricted (Note 3) | 456,492 | |
Inventory | 160,994 | 136,334 |
Prepaid expenses | 85,178 | 87,899 |
Total current assets | 985,900 | 886,075 |
Property and equipment, net | 6,125,631 | 6,117,869 |
Intangible assets, net | 163,865 | 169,070 |
Other assets | 8,500 | 8,500 |
Total assets | 7,283,896 | 7,181,514 |
Liabilities | ||
Accounts payable | 69,024 | 118,523 |
Accrued expenses | 196,918 | 193,042 |
Accrued judgment under appeal (Note 9) | 304,328 | 304,328 |
Notes payable - line of credit | 350,000 | |
Notes payable - related parties | 200,000 | |
Current maturities of long-term debt | 105,679 | 102,739 |
Total current liabilities | 1,225,949 | 718,632 |
Long-term debt | 3,434,583 | 3,491,984 |
Total liabilities | 4,660,532 | 4,210,616 |
Stockholders' equity | ||
Common stock; 300,000,000 shares authorized, at $.001 par value; 74,381,537 and 74,231,537 shares issued and outstanding, respectively | 74,381 | 74,231 |
Capital in excess of par | 4,801,506 | 4,797,006 |
Treasury stock | -3,250 | -3,250 |
Accumulated deficit | -2,249,273 | -1,897,089 |
Total stockholders' equity | 2,623,364 | 2,970,898 |
Total liabilities and stockholders' equity | $7,283,896 | $7,181,514 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS PARENTHETICALS (USD $) | Mar. 29, 2015 | Sep. 28, 2014 |
Parentheticals | ||
Common stock, shares par value | $0.00 | $0.00 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 74,381,537 | 74,231,537 |
Common stock, shares outstanding | 74,381,537 | 74,231,537 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 | |
Sales | ||||
Net sales | $583,000 | $526,525 | $1,204,975 | $1,052,977 |
Sale of animals | 30,623 | 24,067 | 64,813 | |
Total net sales | 583,000 | 557,148 | 1,229,042 | 1,117,790 |
Cost of sales | 95,187 | 95,075 | 166,034 | 180,374 |
Selling, general and administrative | 575,334 | 587,611 | 1,140,938 | 1,158,817 |
Depreciation and amortization | 81,250 | 78,105 | 162,500 | 155,415 |
(Gain) loss on disposal of operating assets, net | -3,964 | -3,964 | ||
Loss from operations | -168,771 | -199,679 | -240,430 | -372,852 |
Other income, net | 1,371 | 1,379 | 3,437 | 5,257 |
Interest expense | -57,027 | -55,452 | -109,987 | -111,525 |
Amortization of loan fees | -2,602 | -2,602 | -5,204 | -5,204 |
Loss before income taxes | -227,029 | -256,354 | -352,184 | -484,324 |
Income tax provision | 0 | |||
Net loss | ($227,029) | ($256,354) | ($352,184) | ($484,324) |
Loss per share - basic and diluted | $0 | $0 | $0 | ($0.01) |
Weighted average shares outstanding (in 000's) - basic and diluted | 74,381 | 74,232 | 74,314 | 74,177 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (USD $) | Common Stock Shares | Common Stock Amount | Capital in Excess of Par | Treasury Stock | Accumulated Deficit | Total |
USD ($) | USD ($) | |||||
Balance at Sep. 29, 2013 | 74,106,537 | 74,106 | 4,794,006 | -3,250 | -1,889,507 | 2,975,355 |
Issuance of common stock to Directors | 125,000 | 125 | 3,000 | 3,125 | ||
Net loss for the year ended September 28, 2014 | ($7,582) | ($7,582) | ||||
Balance at Sep. 28, 2014 | 74,231,537 | 74,231 | 4,797,006 | -3,250 | -1,897,089 | 2,970,898 |
Issuance of common stock to Directors | 150,000 | 150 | 4,500 | 4,650 | ||
Net loss for the six months ended March 29, 2015 | ($352,184) | ($352,184) | ||||
Balance at Mar. 29, 2015 | 74,381,537 | 74,381 | 4,801,506 | -3,250 | -2,249,273 | 2,623,364 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 6 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
OPERATING ACTIVITIES: | ||
Net loss | ($352,184) | ($484,324) |
Reconciliation of net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 162,500 | 155,415 |
Amortization of loan fees | 5,204 | 5,204 |
(Gain) loss on disposal of assets | -3,964 | |
Stock-based compensation | 4,650 | 3,125 |
Changes in assets and liabilities | ||
(Increase) decrease in accounts receivable | 10,875 | |
(Increase) decrease in inventory | -24,660 | -25,900 |
(Increase) decrease in prepaid expenses | 2,721 | -5,480 |
Increase (decrease) in accounts payable | -49,499 | 4,287 |
Increase (decrease) in accrued expenses | 3,876 | -9,695 |
Net cash used in operating activities | -247,392 | -350,457 |
INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | 170,261 | 120,732 |
Proceeds from the disposition of property and equipment | 4,700 | |
(Increase) decrease in restricted cash | 456,492 | |
Net cash used in investing activities | -626,753 | -116,032 |
FINANCING ACTIVITIES: | ||
Proceeds from lines of credit | 350,000 | 200,000 |
Proceeds from related party borrowings | 200,000 | 200,000 |
Payments on notes payable | -54,461 | -53,315 |
Net cash provided by financing activities | 495,539 | 346,685 |
Net increase (decrease) in cash | -378,606 | -119,804 |
Cash at beginning of period | 661,842 | 313,529 |
Cash at end of period | 283,236 | 193,725 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 108,803 | 109,833 |
Cash paid for income taxes | $9,000 | $20,000 |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Mar. 29, 2015 | |
ORGANIZATION | |
ORGANIZATION | NOTE 1. ORGANIZATION |
Parks! America, Inc. (“Parks!” or the “Company”) was originally incorporated on July 30, 1954 as Painted Desert Uranium & Oil Co., Inc. in Washington State. On October 1, 2002, Painted Desert Uranium & Oil Co., Inc. changed its name to Royal Pacific Resources, Inc. and its corporate domicile to the State of Nevada. | |
On December 19, 2003, Royal Pacific Resources, Inc. acquired the assets of Great Western Parks LLC pursuant to a Share Exchange Agreement that resulted in the Company assuming control and changing the corporate name to Great American Family Parks, Inc. The acquisition was accounted for as a reverse acquisition in which Great Western Parks was considered to be the acquirer of Royal Pacific Resources for reporting purposes. The Company’s common stock outstanding increased from 2,533,000 to 29,600,000 as a result of the acquisition. On June 11, 2008, the Company changed its name from Great American Family Parks, Inc. to Parks! America, Inc. | |
The Company owns and operates through it's wholly owned subsidiaries two regional theme parks and is in the business of acquiring, developing and operating local and regional theme parks and attractions in the United States. The Company’s wholly owned subsidiaries are Wild Animal Safari, Inc. a Georgia corporation (“Wild Animal – Georgia”) and Wild Animal, Inc., a Missouri corporation (“Wild Animal – Missouri”). Wild Animal – Georgia owns and operates the Wild Animal Safari theme park in Pine Mountain, Georgia (the “Georgia Park”). Wild Animal – Missouri owns and operates the Wild Animal Safari theme park located in Strafford, Missouri (the “Missouri Park”). On June 13, 2005, the Company acquired the Georgia Park and on March 5, 2008, the Company acquired the Missouri Park. | |
The Parks are open year round but experience increased seasonal attendance during the months of April through August. On a combined basis, net sales for the third and fourth quarter of the last two fiscal years represented approximately 70% to 72% of annual net sales. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | ||||||
Mar. 29, 2015 | |||||||
SIGNIFICANT ACCOUNTING POLICIES | |||||||
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SIGNIFICANT ACCOUNTING POLICIES | ||||||
Basis of Presentation: The Company’s unaudited consolidated financial statements for the three months and six months ended March 29, 2015 and March 30, 2014 are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes that the disclosures made are adequate to make the information presented not misleading. The information reflects all adjustments that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods set forth herein. In the opinion of management interim results reflect all normal and recurring adjustments, and are not necessarily indicative of the results for a full fiscal year. | |||||||
These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2014. | |||||||
Principles of Consolidation: The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries (Wild Animal – Georgia and Wild Animal – Missouri). All material inter-company accounts and transactions have been eliminated in consolidation. | |||||||
Accounting Method: The Company recognizes income and expenses based on the accrual method of accounting. | |||||||
Estimates and Assumptions: Management uses estimates and assumptions in preparing financial statements in accordance with GAAP. Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were assumed in preparing these financial statements. | |||||||
Fiscal Year End: The Company’s fiscal year-end is the Sunday closest to September 30, and its quarterly close dates are also determined by the Sunday closest to the end of each quarterly reporting period. For the 2015 fiscal year, September 27 will be the last Sunday, and for the 2014 fiscal year, September 28 was the last Sunday. This fiscal calendar aligns the Company’s fiscal periods more closely with the seasonality of its business. The high season typically ends after the Labor Day holiday weekend. The period from October through early March is geared towards maintenance and preparation for the next busy season, which typically begins at Spring Break and runs through Labor Day. | |||||||
Uncertainties: The accompanying financial statements have been prepared on a going concern basis. The January 9, 2013 refinancing of all the Company’s then outstanding debt lowered the Company’s required annual debt service payments by approximately $174,000, see “NOTE 4. LONG-TERM DEBT” for more information. Management believes this refinancing provides the Company additional margin to continue to fund its operations and meet its debt service obligations. However, the ability of the Company to continue as a going concern during the next twelve months continues to depend on the ability of the Company to generate revenues from operations, to maintain its existing sources of capital and to meet its existing debt service obligations or obtain additional sources of capital. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. | |||||||
Reclassifications: Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements. | |||||||
Financial and Concentrations Risk: The Company does not have any concentration or related financial credit risks. The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. | |||||||
Trade Accounts Receivable: The Parks are cash businesses; therefore, the Company typically carries little or no accounts receivable. Periodically the Company will carry accounts receivable primarily from animal sales. The Company had no accounts receivable as of March 29, 2015 and September 28, 2014. | |||||||
Inventory: Inventory consists of park supplies, and is stated at the lower of cost or market. Cost is determined on the first-in, first-out method. Inventories are reviewed and reconciled annually, because inventory levels turn over rapidly. | |||||||
Property and Equipment: Property and equipment is stated at cost. Depreciation is computed on the straight-line method over the estimated useful lives of the assets, which range from three to forty years. A summary is included below. | |||||||
March 29, | September 28, | Depreciable | |||||
2015 | 2014 | Lives | |||||
Land | $ | 2,507,180 | $ | 2,507,180 | not applicable | ||
Buildings and structures | 3,160,867 | 3,108,495 | 15 - 40 years | ||||
Facilities and equipment | 996,117 | 935,854 | 5 - 15 years | ||||
Furniture and fixtures | 76,646 | 75,189 | 7 years | ||||
Ground improvements | 785,336 | 785,336 | 15 years | ||||
Park animals | 616,878 | 609,578 | 5 - 10 years | ||||
Rides and entertainment | 52,747 | 22,000 | 7 years | ||||
Vehicles | 332,574 | 314,451 | 3-5 years | ||||
Total cost | 8,528,345 | 8,358,083 | |||||
Less accumulated depreciation | -2,402,714 | -2,240,214 | |||||
Property and equipment, net | $ | 6,125,631 | $ | 6,117,869 | |||
Other Intangible Assets: Other intangible assets include franchising fees, loan fees, payroll software, which are reported at cost. Loan fees are amortized over the life of the respective loan, currently 20 years for the term loan and seven years for the line-of-credit. See “NOTE 4. LONG-TERM DEBT” for more information. Franchising fees are amortized over a period of 60 months and payroll software over a period of 36 months. | |||||||
Impairment of Long-Lived Assets: The Company reviews its major assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an asset is considered impaired, then impairment will be recognized in an amount determined by the excess of the carrying amount of the asset over its fair value. | |||||||
Financial Instruments: The carrying amounts of financial instruments are considered by management to be their estimated fair values due to their short-term maturities. Securities that are publicly traded are valued at their fair market value based as of the balance sheet date presented. | |||||||
Revenue Recognition: The major source of income is received from Park admissions. Park revenues from admission fees are recognized upon receipt of the cash at the time of our customers’ visit to the Parks. Park ticket sales are typically not made in advance. Short-term seasonal passes are sold primarily during the summer season and are negligible to our results of operations and are not material. The Company has developed a business of selling surplus animals created from the natural breeding process that occurs within the parks. All animal sales are reported as a separate line item. | |||||||
Advertising and Market Development: The Company expenses advertising and marketing costs as incurred. | |||||||
Stock Based Compensation: The Company recognizes stock based compensation costs on a straight-line basis over the requisite service period associated with the grant. No activity has occurred in relation to stock options during any period presented. The Company awards shares to its Board of Directors for service on the Board. The shares issued to the Board are “restricted” and are not to be re-sold unless an exemption is available, such as the exemption afforded by Rule 144 promulgated under the Securities Act of 1933, as amended (the “Securities Act”). The Company recognizes the expense based on the fair market value at time of the grant. Each director is typically granted 25,000 restricted shares annually, usually toward the end of the calendar year. | |||||||
Income Taxes: The Company utilizes the asset and liability method of accounting for income taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting basis and the tax basis of the assets and liabilities, and are measured using the enacted tax rates and laws. Management periodically reviews the Company’s deferred tax assets to determine whether their value can be realized based on available evidence. A valuation allowance is established when management believes it is more likely than not, that such tax benefits will not be realized. Changes in valuation allowances from period to period are included in the Company’s income tax provision in the period of change. | |||||||
Basic and Diluted Net Income (Loss) Per Share: Basic net income (loss) per share amounts are computed based on the weighted average number of shares actually outstanding. Diluted net income (loss) per share amounts are computed using the weighted average number of common shares and common equivalent shares outstanding as if shares had been issued on the exercise of any common share rights unless the exercise becomes anti-dilutive and then only the basic per share amounts are shown in the report. | |||||||
Basic and diluted net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the applicable weighted average number of common shares outstanding in each period. | |||||||
Dividend Policy: The Company has not yet adopted a policy regarding payment of dividends. | |||||||
Recent Accounting Pronouncements: The Company does not expect recently issued accounting standards or interpretations to have a material impact on the Company’s financial position, results of operations, cash flows or financial statement disclosures. |
RESTRICTED_CASH
RESTRICTED CASH | 6 Months Ended |
Mar. 29, 2015 | |
RESTRICTED CASH | |
RESTRICTED CASH | NOTE 3. RESTRICTED CASH |
As of February 5, 2015, the Company was required to post a security of $456,492 (the “Security Amount”) in connection with the Company’s appeal of a summary judgment and award of costs more fully described in “NOTE 9. COMMITMENTS AND CONTINGENCIES” herein. The Company deposited the Security Amount, in cash, in a newly established account with Fifth Third Bank, an Ohio Banking Corporation (“Fifth Third”). On April 8, 2015, Fifth Third issued a “Letter of Credit” equal to the Security Amount to the “Harper Defendants” (as that term is defined in Note 9). The Company anticipates the Letter of Credit will be in place until the appeal of the summary judgment award is resolved. The Company is restricted from using the Security Amount in its Fifth Third Bank deposit account as long as the Letter of Credit is outstanding. |
LONGTERM_DEBT
LONG-TERM DEBT | 6 Months Ended | ||||
Mar. 29, 2015 | |||||
LONG - TERM DEBT | |||||
LONG-TERM DEBT | NOTE 4. LONG-TERM DEBT | ||||
On January 9, 2013, the Company completed a refinancing transaction (the “Refinancing Loan”) with Commercial Bank & Trust Company of Troup County (“CB&T”) as lender. The Refinancing Loan was for a principal amount of $3,752,000 and has a 20-year term. The Refinancing Loan bears interest at the rate of Prime Rate plus 2.50% or 5.75% during the first five years of the loan term. Thereafter, the interest rate will be re-priced every five years based on the then-Prime Rate plus 2.50%. During the first four months following the closing of the Refinancing Loan the Company was required to make interest-only payments. The minimum required monthly payment is approximately $26,343 during the first five years of the Refinancing Loan term. The closing costs for the Refinancing Loan totaled $175,369 and are being amortized over the 20-year life of the loan. | |||||
As a result of the Refinancing Loan, the Company lowered its anticipated annual debt service payments. Prior to the Refinancing Loan, the Company’s then outstanding mortgages required annual payments totaling $490,000 as compared to new estimated annual payments totaling $316,000, reducing our annual debt service payments by $174,000 compared with the previous year. | |||||
March 29, | September 28, | ||||
2015 | 2014 | ||||
On January 9, 2013, the Company completed a refinancing transaction with CB&T as lender. The Refinancing Loan was for a principal amount of $3,752,000 and has a 20-year term. | $ | 3,540,262 | $ | 3,594,723 | |
Less current portion of long-term debt | -105,679 | -102,739 | |||
Long-term debt | $ | 3,434,583 | $ | 3,491,984 | |
At March 29, 2015, the scheduled future principal maturities by fiscal year are as follows: | |||||
2015 | $ | 57,491 | |||
2016 | 118,360 | ||||
2017 | 125,348 | ||||
2018 | 132,749 | ||||
2019 | 140,587 | ||||
thereafter | 2,965,727 | ||||
Total | $ | 3,540,262 |
LINES_OF_CREDIT
LINES OF CREDIT | 6 Months Ended |
Mar. 29, 2015 | |
LINES OF CREDIT | |
LINES OF CREDIT | NOTE 5. LINES OF CREDIT |
The Company maintains a $350,000 line of credit (the “LOC”) loan from CB&T for working capital purposes. This LOC has an initial term of seven years, through January 8, 2020, subject to the satisfactory performance by the Company. The LOC interest rate is tied to prime but has a minimum rate of 5.25%. The closing costs for the LOC totaled $11,482 and are being amortized over the initial seven-year term of the loan. As of March 29, 2015, the Company had drawn $350,000 on the LOC. The LOC was not utilized as of September 28, 2014. | |
Effective March 13, 2015, the Company established an additional $100,000 line of credit with CB&T for working capital purposes. This line of credit will expire on September 13, 2015, subject to the satisfactory performance by the Company and bears interest at a rate of 5.75%. The closing costs for this line of credit were $1,031. As of March 29, 2015, the Company had not utilized this line of credit. | |
During the Company’s 2015 and 2014 fiscal years, the Company’s Board of Directors approved the offer of two of the Company’s Directors to loan the Company additional funds to support its seasonal working capital requirements. These loans have been made on the same terms and conditions as the LOC with CB&T. As of March 29, 2015, $200,000 was the outstanding balance for these Director loans. As of September 28, 2014, there was no outstanding balance against these Director loans. | |
When applicable, all advances on the Company’s LOCs and Director loans are recorded as current liabilities. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Mar. 29, 2015 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 6. STOCKHOLDERS’ EQUITY |
Common stock shares issued for service to the Company are valued based on market price on the date of issuance. On December 18, 2014, the Company awarded a total of 150,000 shares of its common stock to six Directors for their service on the Board of Directors at a fair market value of $0.031 per share or $4,650, which was reported as an expense in the first quarter of the 2015 fiscal year. On December 19, 2013, the Company awarded 125,000 shares of its common stock to five Directors for their service on the Board of Directors at a fair market value of $0.025 per share or $3,125, which was reported as an expense in the first quarter of the 2014 fiscal year. | |
Officers, Directors and their controlled entities own approximately 43.5% of the outstanding common stock of the Company as of March 29, 2015. | |
SIGNIFICANT_TRANSACTIONS_WITH_
SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES | 6 Months Ended |
Mar. 29, 2015 | |
SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES | |
SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES | NOTE 7. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES |
Employment Agreements: | |
Effective June 1, 2009, the Company entered into an employment agreement with Dale Van Voorhis (the “2009 Van Voorhis Employment Agreement”) to serve as the Company’s Chief Operating Officer. Effective January 27, 2011, Mr. Van Voorhis was appointed as the Company’s Chief Executive Officer. The 2009 Van Voorhis Employment Agreement expired on May 31, 2014 and was replaced by an employment agreement between the Company and Mr. Van Voorhis dated as of June 1, 2014 (the “2014 Van Voorhis Employment Agreement”). Pursuant to the 2014 Van Voorhis Employment Agreement, Mr. Van Voorhis receives an initial base compensation in the amount of $90,000 per year, which is reviewed annually by the Board of Directors. The 2014 Van Voorhis Employment Agreement has a term of two years and entitles Mr. Van Voorhis to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company. | |
On April 1, 2008, the Company entered into an employment agreement with Jim Meikle (the “2008 Meikle Employment Agreement”) pursuant to which Mr. Meikle was hired to serve as the President and Chief Executive Officer of each of the Company’s wholly owned subsidiaries. Effective January 27, 2011, Mr. Meikle was appointed as the Company’s Chief Operating Officer. Effective April 1, 2015, the Company and Mr. Meikle entered into the “2015 Meikle Employment Agreement”. Pursuant to the 2015 Meikle Employment Agreement, Mr. Meikle receives an initial base compensation in the amount of $135,000 per year, which is reviewed annually by the Board of Directors. The 2015 Meikle Employment Agreement has a term of two years and entitles Mr. Meikle to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company. | |
Effective January 1, 2014, the Company entered into an employment agreement with Todd R. White (the “White Employment Agreement”) to serve as the Company’s Chief Financial Officer. Pursuant to the White Employment Agreement, Mr. White received an initial base compensation of $50,000 per year, which is to be reviewed annually by the Board of Directors. Mr. White also received a $10,000 signing bonus. Effective January 1, 2015, Mr. White’s annual base compensation was increased to $60,000. The White Employment Agreement has a term of five years and entitles Mr. White to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company. | |
Each of the foregoing employment agreements contains provisions for severance compensation in the event an agreement is (i) terminated early by the Company without cause or (ii) in the event of a change in control of the Company. This additional severance compensation payable totals $455,000. | |
Lines of Credit: | |
During the Company’s 2015 and 2014 fiscal years, the Company’s Board of Directors approved the offer of two of the Company’s Directors to loan the Company additional funds to support its seasonal working capital requirements. These loans have been made on the same terms and conditions as the LOC with CB&T. As of March 29, 2015, $200,000 was the outstanding balance for these Director loans. As of September 28, 2014, there was no outstanding balance against these Director loans. |
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Mar. 29, 2015 | |
INCOME TAXES | |
INCOME TAXES | NOTE 8. INCOME TAXES |
For the six month period ended March 29, 2015, the Company has reported a pre-tax loss of $352,184. For the year ending September 27, 2015, the Company expects to generate pre-tax income and expects to utilize a portion of its Federal net tax operating loss carry-forwards to offset any Federal taxable income in its 2015 fiscal year. The Company expects to generate 2015 fiscal year income that will be subject to State of Georgia income taxes at a rate of approximately 6%. | |
The cumulative Federal net operating loss carry-forward is approximately $3,951,000 at September 28, 2014 and will expire beginning in the year 2026. The net deferred tax asset generated by the Federal net operating loss carry-forward has been fully reserved. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $3,951,000 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, Federal net operating loss carry forwards may be limited as to use in future years. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Mar. 29, 2015 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 9. COMMITMENTS AND CONTINGENCIES |
In September 2009, the Company filed an action against its former President and CEO in the Eighth Judicial District Court of the State of Nevada (Parks! America, Inc. vs. Eastland; et al., Case No. 09-A-599668). The Company brought this action in an attempt to obtain a Temporary Restraining Order and injunctive relief against the Eastland Defendants (Former President and CEO Larry Eastland and his related companies) as to the Eastland Defendants attempt to install a new board of directors for the Company. The Temporary Restraining Order was granted, as was the Preliminary Injunction. | |
In June 2012, the Company amended its complaint against the Eastland Defendants to, among other things, add new claims for relief, as well as join as defendants, LEA Capital Advisors, LLC, an entity controlled by Mr. Eastland (together the Eastland Defendants), and Stanley Harper and Computer Contact Service, Inc., an entity controlled by Mr. Harper (together the Harper Defendants) for breaches of contract and fiduciary duty with regards to the Company’s purchase of TempSERV on September 30, 2007 and its subsequent re-conveyance of TempSERV to Computer Contact Service, Inc. as of January 1, 2009. The Company is seeking damages in excess of $1.8 million. | |
Discovery was conducted on the claims between the parties, after which the Harper Defendants filed for summary judgment asking that the claims against them be dismissed. After briefing and argument, the Court granted summary judgment in favor of the Harper Defendants. Because one of the contracts involved had a provision for legal fees, the Harper Defendants also filed a motion for legal fees and costs. On October 24, 2014, the Court ordered the Company to pay approximately $304,328 in costs and attorney’s fees in favor of the Harper Defendants. | |
The Company is in the process of appealing the summary judgment and the award of costs. Although we cannot predict the ultimate outcome of this lawsuit, the Company believes the Court’s summary judgment and award of costs in favor of the Harper Defendants is in error and is vigorously pursuing its position on appeal. However, as the award of legal fees and costs has been granted, the Company recorded a liability for this award as of September 28, 2014. As detailed in “NOTE 3. RESTRICTED CASH”, as of February 5, 2015 the Company was required to post a security in the amount of 150%, or $456,492, of the judgment during its appeal of the summary judgment and award of costs. | |
The remainder of the District Court case against the Eastland Defendants has been stayed pending the result of the appeal. The Company intends to proceed with its case against the Eastland Defendants regardless of the result of the appeal. If the summary judgment decision is reversed upon appeal, that action will proceed against both the Eastland Defendants and the Harper Defendants. | |
Except as described above, we are not a party to any pending legal proceeding, nor is our property the subject of a pending legal proceeding, that is not in the ordinary course of business or otherwise material to the financial condition of our business. None of our directors, officers or affiliates is involved in a proceeding adverse to our business or has a material interest adverse to our business. |
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended | |||||||||
Mar. 29, 2015 | ||||||||||
BUSINESS SEGMENTS | ||||||||||
BUSINESS SEGMENTS | NOTE 10. BUSINESS SEGMENTS | |||||||||
The Company manages its operations on an individual location basis. Discrete financial information is maintained for each Park and provided to management for review and as a basis for decision-making. The primary performance measures used to allocate resources are Park earnings before interest and tax expense, and free cash flow. This measure of operating profit is used to gauge segment performance because management believes this measure is the most indicative of performance trends and the overall earnings potential of each reportable segment. The following tables present financial information regarding each of the Company’s reportable segments: | ||||||||||
For the three months ended | For the six months ended | |||||||||
March 29, | March 30, | March 29, | March 30, | |||||||
2015 | 2014 | 2015 | 2014 | |||||||
Total net sales: | ||||||||||
Georgia | $ | 487,652 | $ | 481,693 | $ | 1,027,235 | $ | 937,964 | ||
Missouri | 95,348 | 75,455 | 201,807 | 179,826 | ||||||
Consolidated | $ | 583,000 | $ | 557,148 | $ | 1,229,042 | $ | 1,117,790 | ||
Income (loss) before income taxes: | ||||||||||
Georgia | $ | 78,343 | $ | 89,277 | $ | 225,122 | $ | 134,847 | ||
Missouri | -90,658 | -111,965 | -181,043 | -213,627 | ||||||
Segment total | -12,315 | -22,688 | 44,079 | -78,780 | ||||||
Corporate | -156,456 | -176,991 | -284,509 | -294,072 | ||||||
Other income, net | 1,371 | 1,379 | 3,437 | 5,257 | ||||||
Interest expense | -57,027 | -55,452 | -109,987 | -111,525 | ||||||
Amortization of loan fees | -2,602 | -2,602 | -5,204 | -5,204 | ||||||
Consolidated | $ | -227,029 | $ | -256,354 | $ | -352,184 | $ | -484,324 | ||
As of | ||||||||||
March 29, | September 28, | |||||||||
2015 | 2014 | |||||||||
Total assets: | ||||||||||
Georgia | $ | 4,413,957 | $ | 4,590,809 | ||||||
Missouri | 2,224,710 | 2,386,301 | ||||||||
Corporate | 645,229 | 204,404 | ||||||||
Consolidated | $ | 7,283,896 | $ | 7,181,514 | ||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Mar. 29, 2015 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 11. SUBSEQUENT EVENTS |
In accordance with ASC 855-10, except as noted in “NOTE 3. RESTRICTED CASH” and “NOTE 7. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES”, the Company has analyzed its operations subsequent to March 29, 2015 to the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these unaudited consolidated financial statements. | |
ACCOUNTING_POLICIES_POLICIES
ACCOUNTING POLICIES (POLICIES) | 6 Months Ended | ||||||
Mar. 29, 2015 | |||||||
ACCOUNTING POLICIES | |||||||
Basis of Presentation | Basis of Presentation: The Company’s unaudited consolidated financial statements for the three months and six months ended March 29, 2015 and March 30, 2014 are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes that the disclosures made are adequate to make the information presented not misleading. The information reflects all adjustments that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods set forth herein. In the opinion of management interim results reflect all normal and recurring adjustments, and are not necessarily indicative of the results for a full fiscal year. | ||||||
These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2014. | |||||||
Principles of Consolidation | Principles of Consolidation: The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries (Wild Animal – Georgia and Wild Animal – Missouri). All material inter-company accounts and transactions have been eliminated in consolidation. | ||||||
Accounting Method | Accounting Method: The Company recognizes income and expenses based on the accrual method of accounting. | ||||||
Estimates and Assumptions | Estimates and Assumptions: Management uses estimates and assumptions in preparing financial statements in accordance with GAAP. Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were assumed in preparing these financial statements. | ||||||
Fiscal Year End | Fiscal Year End: The Company’s fiscal year-end is the Sunday closest to September 30, and its quarterly close dates are also determined by the Sunday closest to the end of each quarterly reporting period. For the 2015 fiscal year, September 27 will be the last Sunday, and for the 2014 fiscal year, September 28 was the last Sunday. This fiscal calendar aligns the Company’s fiscal periods more closely with the seasonality of its business. The high season typically ends after the Labor Day holiday weekend. The period from October through early March is geared towards maintenance and preparation for the next busy season, which typically begins at Spring Break and runs through Labor Day. | ||||||
Uncertainties | Uncertainties: The accompanying financial statements have been prepared on a going concern basis. The January 9, 2013 refinancing of all the Company’s then outstanding debt lowered the Company’s required annual debt service payments by approximately $174,000, see “NOTE 4. LONG-TERM DEBT” for more information. Management believes this refinancing provides the Company additional margin to continue to fund its operations and meet its debt service obligations. However, the ability of the Company to continue as a going concern during the next twelve months continues to depend on the ability of the Company to generate revenues from operations, to maintain its existing sources of capital and to meet its existing debt service obligations or obtain additional sources of capital. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. | ||||||
Reclassifications | Reclassifications: Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements. | ||||||
Financial and Concentrations Risk | Financial and Concentrations Risk: The Company does not have any concentration or related financial credit risks. The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. | ||||||
Trade Accounts Receivable | Trade Accounts Receivable: The Parks are cash businesses; therefore, the Company typically carries little or no accounts receivable. Periodically the Company will carry accounts receivable primarily from animal sales. The Company had no accounts receivable as of March 29, 2015 and September 28, 2014. | ||||||
Inventory | Inventory: Inventory consists of park supplies, and is stated at the lower of cost or market. Cost is determined on the first-in, first-out method. Inventories are reviewed and reconciled annually, because inventory levels turn over rapidly. | ||||||
Property and Equipment | Property and Equipment: Property and equipment is stated at cost. Depreciation is computed on the straight-line method over the estimated useful lives of the assets, which range from three to forty years. A summary is included below. | ||||||
March 29, | September 28, | Depreciable | |||||
2015 | 2014 | Lives | |||||
Land | $ | 2,507,180 | $ | 2,507,180 | not applicable | ||
Buildings and structures | 3,160,867 | 3,108,495 | 15 - 40 years | ||||
Facilities and equipment | 996,117 | 935,854 | 5 - 15 years | ||||
Furniture and fixtures | 76,646 | 75,189 | 7 years | ||||
Ground improvements | 785,336 | 785,336 | 15 years | ||||
Park animals | 616,878 | 609,578 | 5 - 10 years | ||||
Rides and entertainment | 52,747 | 22,000 | 7 years | ||||
Vehicles | 332,574 | 314,451 | 3-5 years | ||||
Total cost | 8,528,345 | 8,358,083 | |||||
Less accumulated depreciation | -2,402,714 | -2,240,214 | |||||
Property and equipment, net | $ | 6,125,631 | $ | 6,117,869 | |||
Other Intangible assets | Other Intangible Assets: Other intangible assets include franchising fees, loan fees, payroll software, which are reported at cost. Loan fees are amortized over the life of the respective loan, currently 20 years for the term loan and seven years for the line-of-credit. See “NOTE 4. LONG-TERM DEBT” for more information. Franchising fees are amortized over a period of 60 months and payroll software over a period of 36 months. | ||||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: The Company reviews its major assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an asset is considered impaired, then impairment will be recognized in an amount determined by the excess of the carrying amount of the asset over its fair value. | ||||||
Financial Instruments | Financial Instruments: The carrying amounts of financial instruments are considered by management to be their estimated fair values due to their short-term maturities. Securities that are publicly traded are valued at their fair market value based as of the balance sheet date presented. | ||||||
Revenue Recognition | Revenue Recognition: The major source of income is received from Park admissions. Park revenues from admission fees are recognized upon receipt of the cash at the time of our customers’ visit to the Parks. Park ticket sales are typically not made in advance. Short-term seasonal passes are sold primarily during the summer season and are negligible to our results of operations and are not material. The Company has developed a business of selling surplus animals created from the natural breeding process that occurs within the parks. All animal sales are reported as a separate line item. | ||||||
Advertising and Market Development | Advertising and Market Development: The Company expenses advertising and marketing costs as incurred. | ||||||
Stock Based Compensation | Stock Based Compensation: The Company recognizes stock based compensation costs on a straight-line basis over the requisite service period associated with the grant. No activity has occurred in relation to stock options during any period presented. The Company awards shares to its Board of Directors for service on the Board. The shares issued to the Board are “restricted” and are not to be re-sold unless an exemption is available, such as the exemption afforded by Rule 144 promulgated under the Securities Act of 1933, as amended (the “Securities Act”). The Company recognizes the expense based on the fair market value at time of the grant. Each director is typically granted 25,000 restricted shares annually, usually toward the end of the calendar year. | ||||||
Income Taxes | Income Taxes: The Company utilizes the asset and liability method of accounting for income taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting basis and the tax basis of the assets and liabilities, and are measured using the enacted tax rates and laws. Management periodically reviews the Company’s deferred tax assets to determine whether their value can be realized based on available evidence. A valuation allowance is established when management believes it is more likely than not, that such tax benefits will not be realized. Changes in valuation allowances from period to period are included in the Company’s income tax provision in the period of change. | ||||||
Basic and Diluted Net Income (Loss) Per Share | Basic and Diluted Net Income (Loss) Per Share: Basic net income (loss) per share amounts are computed based on the weighted average number of shares actually outstanding. Diluted net income (loss) per share amounts are computed using the weighted average number of common shares and common equivalent shares outstanding as if shares had been issued on the exercise of any common share rights unless the exercise becomes anti-dilutive and then only the basic per share amounts are shown in the report. | ||||||
Basic and diluted net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the applicable weighted average number of common shares outstanding in each period. | |||||||
Dividend Policy | Dividend Policy: The Company has not yet adopted a policy regarding payment of dividends. | ||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements: The Company does not expect recently issued accounting standards or interpretations to have a material impact on the Company’s financial position, results of operations, cash flows or financial statement disclosures. | ||||||
PROPERTY_AND_EQUIPMENT_TABLES
PROPERTY AND EQUIPMENT (TABLES) | 6 Months Ended | ||||||
Mar. 29, 2015 | |||||||
PROPERTY AND EQUIPMENT (TABLES) | |||||||
PROPERTY AND EQUIPMENT (TABLES) | A summary is included below. | ||||||
March 29, | September 28, | Depreciable | |||||
2015 | 2014 | Lives | |||||
Land | $ | 2,507,180 | $ | 2,507,180 | not applicable | ||
Buildings and structures | 3,160,867 | 3,108,495 | 15 - 40 years | ||||
Facilities and equipment | 996,117 | 935,854 | 5 - 15 years | ||||
Furniture and fixtures | 76,646 | 75,189 | 7 years | ||||
Ground improvements | 785,336 | 785,336 | 15 years | ||||
Park animals | 616,878 | 609,578 | 5 - 10 years | ||||
Rides and entertainment | 52,747 | 22,000 | 7 years | ||||
Vehicles | 332,574 | 314,451 | 3-5 years | ||||
Total cost | 8,528,345 | 8,358,083 | |||||
Less accumulated depreciation | -2,402,714 | -2,240,214 | |||||
Property and equipment, net | $ | 6,125,631 | $ | 6,117,869 |
SCHEDULE_OF_LONGTERM_DEBT_Tabl
SCHEDULE OF LONG-TERM DEBT (Tables) | 6 Months Ended | ||||
Mar. 29, 2015 | |||||
SCHEDULE OF LONG-TERM DEBT | |||||
SCHEDULE OF LONG-TERM DEBT | Prior to the Refinancing Loan, the Company’s then outstanding mortgages required annual payments totaling $490,000 as compared to new estimated annual payments totaling $316,000, reducing our annual debt service payments by $174,000 compared with the previous year. | ||||
March 29, | September 28, | ||||
2015 | 2014 | ||||
On January 9, 2013, the Company completed a refinancing transaction with CB&T as lender. The Refinancing Loan was for a principal amount of $3,752,000 and has a 20-year term. | $ | 3,540,262 | $ | 3,594,723 | |
Less current portion of long-term debt | -105,679 | -102,739 | |||
Long-term debt | $ | 3,434,583 | $ | 3,491,984 |
SCHEDULE_OF_FUTURE_PRINCIPAL_M
SCHEDULE OF FUTURE PRINCIPAL MATURITIES BY FISCAL YEAR (TABLES) | 6 Months Ended | ||
Mar. 29, 2015 | |||
SCHEDULE OF FUTURE PRINCIPAL MATURITIES BY FISCAL YEAR (TABLES) | |||
SCHEDULE OF FUTURE PRINCIPAL MATURITIES BY FISCAL YEAR (TABLES) | At March 29, 2015, the scheduled future principal maturities by fiscal year are as follows: | ||
2015 | $ | 57,491 | |
2016 | 118,360 | ||
2017 | 125,348 | ||
2018 | 132,749 | ||
2019 | 140,587 | ||
thereafter | 2,965,727 | ||
Total | $ | 3,540,262 |
SCHEDULE_OF_BUSINESS_SEGMENTS_
SCHEDULE OF BUSINESS SEGMENTS (Tables) | 6 Months Ended | |||||||||
Mar. 29, 2015 | ||||||||||
SCHEDULE OF BUSINESS SEGMENTS | ||||||||||
SCHEDULE OF BUSINESS SEGMENTS | The following tables present financial information regarding each of the Company’s reportable segments: | |||||||||
For the three months ended | For the six months ended | |||||||||
March 29, | March 30, | March 29, | March 30, | |||||||
2015 | 2014 | 2015 | 2014 | |||||||
Total net sales: | ||||||||||
Georgia | $ | 487,652 | $ | 481,693 | $ | 1,027,235 | $ | 937,964 | ||
Missouri | 95,348 | 75,455 | 201,807 | 179,826 | ||||||
Consolidated | $ | 583,000 | $ | 557,148 | $ | 1,229,042 | $ | 1,117,790 | ||
Income (loss) before income taxes: | ||||||||||
Georgia | $ | 78,343 | $ | 89,277 | $ | 225,122 | $ | 134,847 | ||
Missouri | -90,658 | -111,965 | -181,043 | -213,627 | ||||||
Segment total | -12,315 | -22,688 | 44,079 | -78,780 | ||||||
Corporate | -156,456 | -176,991 | -284,509 | -294,072 | ||||||
Other income, net | 1,371 | 1,379 | 3,437 | 5,257 | ||||||
Interest expense | -57,027 | -55,452 | -109,987 | -111,525 | ||||||
Amortization of loan fees | -2,602 | -2,602 | -5,204 | -5,204 | ||||||
Consolidated | $ | -227,029 | $ | -256,354 | $ | -352,184 | $ | -484,324 | ||
As of | ||||||||||
March 29, | September 28, | |||||||||
2015 | 2014 | |||||||||
Total assets: | ||||||||||
Georgia | $ | 4,413,957 | $ | 4,590,809 | ||||||
Missouri | 2,224,710 | 2,386,301 | ||||||||
Corporate | 645,229 | 204,404 | ||||||||
Consolidated | $ | 7,283,896 | $ | 7,181,514 |
ORGANIZATION_DETAILS
ORGANIZATION (DETAILS) | Mar. 29, 2015 | Dec. 19, 2003 |
ORGANIZATION DETAILS | ||
Common stock outstanding | 2,533,000 | |
Common stock outstanding increase | 29,600,000 | |
Minimum net sales for third and fourth quarter of last two years | 70.00% | |
Maximum net sales for third and fourth quarter of last two years | 72.00% |
UNCERTAINTIES_GOING_CONCERN_DE
UNCERTAINTIES - GOING CONCERN (DETAILS) (USD $) | Jan. 09, 2013 |
Uncertain details | |
Outstanding debt lowered the Company's required annual debt service payments | $174,000 |
PROPERTY_AND_EQUIPMENT_STRAIGH
PROPERTY AND EQUIPMENT STRAIGHT LINE METHOD (DETAILS) (USD $) | Mar. 29, 2015 | Sep. 28, 2014 |
Summary of Property and Equipment: | ||
Land | $2,507,180 | $2,507,180 |
Buildings and structures depreciable Lives from 15 to 40 years | 3,160,867 | 3,108,495 |
Facilities and equipment depreciable Lives from 5 to 15 years | 996,117 | 935,854 |
Furniture and fixtures depreciable Lives 7 years | 76,646 | 75,189 |
Ground improvements depreciable Lives from15 years | 785,336 | 785,336 |
Park animals depreciable Lives from 5 to10 years | 616,878 | 609,578 |
Rides and entertainment depreciable Lives 7 years | 52,747 | 22,000 |
Vehicles depreciable Lives from 3 to 5 years | 332,574 | 314,451 |
Total cost | 8,528,345 | 8,358,083 |
Less accumulated depreciation | -2,402,714 | -2,240,214 |
Property and equipment, net | $6,125,631 | $6,117,869 |
STOCK_BASED_COMPENSATION_DETAI
STOCK BASED COMPENSATION (DETAILS) | Mar. 29, 2015 |
Stock Based Compensation {1} | |
Granted restricted shares annually | 25,000 |
RESTRICTED_CASH_DETAILS
RESTRICTED CASH (DETAILS) (USD $) | Feb. 05, 2015 |
Restricted Cash Details | |
Company required to post security | $456,492 |
REFINANCING_LOAN_DETAILS
REFINANCING LOAN (DETAILS) (USD $) | Jan. 09, 2013 |
REFINANCING LOAN DETAILS | |
Refinancing loan for a principal amount | $3,752,000 |
Refinancing Loan bears interest at the rate of Prime Rate plus minimum | 2.50% |
Refinancing Loan bears interest at the rate of Prime Rate plus maximum | 5.75% |
InterestRateWillRePricedAfterYearsOfLoanTerm | 5 |
Interest rate will repriced after 5 years at the rate of Prime Rate plus | 2.50% |
The minimum required monthly payment of loan | 26,343 |
Refinancing loans closing costs | 175,369 |
Annual debt service payments under prior mortgages | 490,000 |
Estimated annual debt service payments under new term loan | 316,000 |
Reduction in annual debt service payments | $174,000 |
DEBT_INSTRUMENTS_DETAILS
DEBT INSTRUMENTS (DETAILS) (USD $) | Mar. 29, 2015 | Sep. 28, 2014 |
DEBT INSTRUMENTS DETAILS | ||
Company completed a refinancing transaction with Commercial Bank And Trust Company (20 Year Term) | $3,540,262 | $3,594,723 |
Less current portion of long-term debt | -105,679 | -102,739 |
Long-term debt | $3,434,583 | $3,491,984 |
FUTURE_PRINCIPAL_MATURITIES_BY
FUTURE PRINCIPAL MATURITIES BY FISCAL YEAR ARE AS FOLLOWS (DETAILS) (USD $) | Mar. 29, 2015 |
Future principal maturities by fiscal year are as follows: | |
Future principal maturities 2015 | $57,491 |
Future principal maturities 2016 | 118,360 |
Future principal maturities 2017 | 125,348 |
Future principal maturities 2018 | 132,749 |
Future principal maturities 2019 | 140,587 |
Thereafter | 2,965,727 |
Total principal maturities | $3,540,262 |
LINES_OF_CREDIT_DETAILS
LINES OF CREDIT (DETAILS) (USD $) | Mar. 29, 2015 | Mar. 13, 2015 |
WORKING CAPITAL CREDIT DETAILS | ||
Loan obtained for working capital | $350,000 | |
Closing costs for the LOC totaled | 11,482 | 1,031 |
Line of credit interest rate | 5.25% | 5.25% |
Company had drawn on Line of credit | 350,000 | |
Additional line of credit for working capital | 100,000 | |
Outstanding balance for Director loans | $200,000 |
COMMON_STOCK_TRANSACTIONS_DETA
COMMON STOCK TRANSACTIONS (DETAILS) (USD $) | Dec. 18, 2014 | Dec. 19, 2013 |
COMMON STOCK TRANSACTIONS DETAILS | ||
Company awarded shares to directors for services | 150,000 | 125,000 |
Board of Directors at a fair market value per share | $0.03 | $0.03 |
Board of Directors at a fair market value | $4,650 | $3,125 |
Percentage of Common stock outstanding of the company held by Officer, directors and their controlled entities | 43.50% |
RELATED_PARTY_TRANSACTIONS_DET
RELATED PARTY TRANSACTIONS (DETAILS) (USD $) | Mar. 29, 2015 |
RELATED PARTY TRANSACTIONS: | |
Mr. Van Voorhis receives an initial base compensation | $90,000 |
Mr. Meikle receives an initial base compensation | 135,000 |
Mr. White receives an initial base compensation | 50,000 |
Employment agreements additional severance compensation payable totals | 455,000 |
Mr. White received signing bonus | 10,000 |
Mr. White's annual base compensation was increased to | 60,000 |
Director loans outstanding balance | $200,000 |
INCOME_TAXES_DETAILS
INCOME TAXES (DETAILS) (USD $) | 6 Months Ended |
Mar. 29, 2015 | |
Income tax details | |
Company has Reported a pre- tax loss | $352,184 |
State of Georgia income taxes at a rate of approximately | 6.00% |
FEDERAL_NET_OPERTAING_LOSS_DET
FEDERAL NET OPERTAING LOSS (DETAILS) (USD $) | Sep. 28, 2014 |
Federal Net Operating loss Details | |
Cumulative Federal Net Operating loss carry forward Approximately | $3,951,000 |
Net operating loss carry forwards for Federal income tax reporting purposes | $3,951,000 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (DETAILS) (USD $) | Feb. 05, 2015 | Oct. 24, 2014 | Jan. 01, 2009 |
COMMITMENTS AND CONTINGENCIES DETAILS | |||
Company seeking damages in excess | $1,800,000 | ||
Costs and attorney's fees | 304,328 | ||
Company was required to post a bond or other security in the percentage of judgement | 150.00% | ||
Company was required to post a bond or other security in amount | $456,492 |
BUSINESSSEGMENTS_DETAILS
BUSINESS-SEGMENTS (DETAILS) (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 | |
Total net sales: | ||||
Georgia | $487,652 | $481,693 | $1,027,235 | $937,964 |
Missouri | 95,348 | 75,455 | 201,807 | 179,826 |
Consolidated | 583,000 | 557,148 | 1,229,042 | 1,117,790 |
Income (loss) before income taxes: | ||||
Georgia | 78,343 | 89,277 | 225,122 | 134,847 |
Missouri | -90,658 | -111,965 | -181,043 | -213,627 |
Segment total | -12,315 | -22,688 | 44,079 | -78,780 |
Corporate | -156,456 | -176,991 | -284,509 | -294,072 |
Other income, net | 1,371 | 1,379 | 3,437 | 5,257 |
Interest expense | -57,027 | -55,452 | -109,987 | -111,525 |
Amortization of loan fees | -2,602 | -2,602 | -5,204 | -5,204 |
Consolidated | ($227,029) | ($256,354) | ($352,184) | ($484,324) |
BUSINESS_SEGMENTS_ASSETS_DETAI
BUSINESS SEGMENTS ASSETS (DETAILS) (USD $) | Mar. 29, 2015 | Sep. 28, 2014 |
Business Segments Assets Details | ||
Georgia | $4,413,957 | $4,590,809 |
Missouri | 2,224,710 | 2,386,301 |
Corporate | 645,229 | 204,404 |
Consolidated | $7,283,896 | $7,181,514 |