Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 04, 2021 | May 10, 2021 | |
Details | ||
Registrant Name | PARKS AMERICA, INC | |
Registrant CIK | 0001297937 | |
Fiscal Year End | --10-03 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 4, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-51254 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 91-0626756 | |
Entity Address, Address Line One | 1300 Oak Grove Road | |
Entity Address, City or Town | Pine Mountain | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 31822 | |
Entity Address, Address Description | Address, Including Zip Code of Principal Executive Offices | |
City Area Code | 706 | |
Local Phone Number | 663-8744 | |
Phone Fax Number Description | Issuer's telephone number | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 75,124,087 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Apr. 04, 2021 | Sep. 27, 2020 |
ASSETS | ||
Cash | $ 5,640,643 | $ 5,505,716 |
Inventory | 344,671 | 200,891 |
Prepaid expenses | 118,002 | 148,732 |
Total current assets | 6,103,316 | 5,855,339 |
Property and equipment, net | 13,978,878 | 13,654,800 |
Intangible assets, net | 10,966 | 0 |
Other assets | 12,144 | 12,144 |
Total assets | 20,105,304 | 19,522,283 |
Liabilities | ||
Accounts payable | 140,689 | 178,485 |
Other current liabilities | 628,258 | 599,390 |
Current portion of long-term debt, net | 1,362,097 | 1,221,009 |
Total current liabilities | 2,131,044 | 1,998,884 |
Long-term debt, net | 5,437,271 | 5,797,392 |
Total liabilities | 7,568,315 | 7,796,276 |
Stockholders' equity | ||
Common Stock, Value, Issued | 75,124 | 75,021 |
Capital in excess of par | 4,934,212 | 4,889,316 |
Treasury stock | (3,250) | (3,250) |
Retained earnings | 7,530,903 | 6,764,920 |
Total stockholders' equity | 12,536,989 | 11,726,007 |
Total liabilities and stockholders' equity | $ 20,105,304 | $ 19,522,283 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - Parenthetical - $ / shares | Apr. 04, 2021 | Sep. 27, 2020 |
Details | ||
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares, Issued | 75,124,087 | 75,021,537 |
Common Stock, Shares, Outstanding | 75,124,087 | 75,021,537 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 04, 2021 | Mar. 29, 2020 | Apr. 04, 2021 | Mar. 29, 2020 | |
Details | ||||
Net sales | $ 2,471,733 | $ 730,522 | $ 4,627,208 | $ 1,713,930 |
Sale of animals | 4,450 | 12,435 | 76,174 | 24,512 |
Total net sales | 2,476,183 | 742,957 | 4,703,382 | 1,738,442 |
Cost of sales | 309,852 | 122,905 | 569,847 | 249,765 |
Selling, general and administrative | 1,337,649 | 763,628 | 2,737,494 | 1,614,845 |
Depreciation and amortization | 172,807 | 117,500 | 340,007 | 235,000 |
Tornado damage insurance recovery | 0 | (24,373) | 0 | (24,373) |
Loss on disposal of operating assets | 26,046 | 0 | 30,721 | 0 |
Income (loss) from operations | 629,829 | (236,703) | 1,025,313 | (336,795) |
Other income, net | 12,755 | 7,542 | 27,319 | 15,504 |
Gain on extinguishment of debt | 125,371 | 0 | 125,371 | 0 |
Interest expense | (84,207) | (17,191) | (175,620) | (34,912) |
Income (loss) before income taxes | 683,748 | (246,352) | 1,002,383 | (356,203) |
Income tax provision | 145,700 | (56,200) | 236,400 | (76,900) |
Net income (loss) | $ 538,048 | $ (190,152) | $ 765,983 | $ (279,303) |
Income per share - basic and diluted | $ 0.01 | $ 0 | $ 0.01 | $ 0 |
Weighted average shares outstanding (in 000's) - basic and diluted | 75,112 | 75,005 | 75,065 | 74,808 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Total |
Stockholders' Equity at Sep. 29, 2019 | $ 74,821 | $ 4,855,516 | $ (3,250) | $ 3,997,451 | $ 8,924,538 |
Shares Outstanding at Sep. 29, 2019 | 74,821,537 | ||||
Net Income (Loss) | $ 0 | 0 | 0 | (89,151) | (89,151) |
Shares Outstanding at Dec. 29, 2019 | 74,821,537 | ||||
Stockholders' Equity at Dec. 29, 2019 | $ 74,821 | 4,855,516 | (3,250) | 3,908,300 | 8,835,387 |
Stock Issued During Period, Value, New Issues | $ 200 | 33,800 | 0 | 0 | 34,000 |
Stock Issued During Period, Shares, New Issues | 200,000 | ||||
Net Income (Loss) | $ 0 | 0 | 0 | (190,152) | (190,152) |
Shares Outstanding at Mar. 29, 2020 | 75,021,537 | ||||
Stockholders' Equity at Mar. 29, 2020 | $ 75,021 | 4,889,316 | (3,250) | 3,718,148 | 8,679,235 |
Stockholders' Equity at Sep. 27, 2020 | $ 75,021 | 4,889,316 | (3,250) | 6,764,920 | 11,726,007 |
Shares Outstanding at Sep. 27, 2020 | 75,021,537 | ||||
Net Income (Loss) | $ 0 | 0 | 0 | 227,935 | 227,935 |
Shares Outstanding at Jan. 03, 2021 | 75,021,537 | ||||
Stockholders' Equity at Jan. 03, 2021 | $ 75,021 | 4,889,316 | (3,250) | 6,992,855 | 11,953,942 |
Stock Issued During Period, Value, New Issues | $ 103 | 44,896 | 0 | 0 | 44,999 |
Stock Issued During Period, Shares, New Issues | 102,550 | ||||
Net Income (Loss) | $ 0 | 0 | 0 | 538,048 | 538,048 |
Shares Outstanding at Apr. 04, 2021 | 75,124,087 | ||||
Stockholders' Equity at Apr. 04, 2021 | $ 75,124 | $ 4,934,212 | $ (3,250) | $ 7,530,903 | $ 12,536,989 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 765,983 | $ (279,303) |
Reconciliation of net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization expense | 340,007 | 235,000 |
Interest expense - debt financing cost amortization | 3,956 | 1,120 |
Interest expense - loan discount amortization | 9,279 | 0 |
Loss on disposal of operating assets | 30,721 | 0 |
Stock-based compensation | 44,999 | 34,000 |
Gain on extinguishment of debt | (125,371) | 0 |
Changes in assets and liabilities | ||
(Increase) decrease in accounts receivable | 0 | (24,373) |
(Increase) decrease in inventory | (143,780) | (43,600) |
(Increase) decrease in prepaid expenses | 30,730 | (132,654) |
Increase (decrease) in accounts payable | (37,796) | (59,946) |
Increase (decrease) in other current liabilities | 28,868 | (57,431) |
Net cash provided by (used in) operating activities | 947,596 | (327,187) |
INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (710,651) | (312,929) |
Tradename registrations | (10,966) | 0 |
Deposit on pending acquisition of Aggieland Safari | 0 | (103,235) |
Proceeds from the disposition of property and equipment | 16,634 | 0 |
Net cash used in investing activities | (704,983) | (416,164) |
FINANCING ACTIVITIES: | ||
Payments on 2018 Term Loan | (107,686) | (102,427) |
Net cash used in financing activities | (107,686) | (102,427) |
Net increase (decrease) in cash | 134,927 | (845,778) |
Cash at beginning of period | 5,505,716 | 3,787,815 |
Cash at end of period | 5,640,643 | 2,942,037 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 177,040 | 33,602 |
Cash paid for income taxes | $ 276,750 | $ 50,000 |
NOTE 1. ORGANIZATION
NOTE 1. ORGANIZATION | 6 Months Ended |
Apr. 04, 2021 | |
Notes | |
NOTE 1. 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. 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 wholly owned subsidiaries three 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 Companys wholly owned subsidiaries are Wild Animal Safari, Inc. a Georgia corporation (Wild Animal Georgia), Wild Animal, Inc., a Missouri corporation (Wild Animal Missouri), and Aggieland-Parks, Inc., a Texas corporation (Aggieland Wild Animal Texas). 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). Aggieland Wild Animal Texas owns and operates the Aggieland Wild Animal Safari theme park near Bryan/College Station, Texas (the Texas Park). The Company acquired the Georgia Park on June 13, 2005, the Missouri Park on March 5, 2008, and the Texas Park on April 27, 2020. The Parks are open year round but experience increased seasonal attendance, typically beginning in the latter half of March through early September. As a result, our combined third and fourth quarter net sales have historically ranged from 68% to 72% of our annual net sales. COVID-19 In March 2020, the World Health Organization characterized COVID-19, a disease caused by a novel strain of a coronavirus, as a pandemic. The rapid spread of COVID-19 has resulted in governmental authorities throughout the United States implementing a variety of containment measures with the objective of slowing the spread of the virus, including travel restrictions, shelter-in-place orders and business shutdowns. The COVID-19 pandemic and these containment measures have had, and could continue to have, a material impact on the Companys business. The rapid acceleration of the COVID-19 pandemic in the United States occurred at the beginning of the Companys annual high season. Beginning the week of March 9, 2020, the Company began to see a significant reduction in paid attendance at its Georgia and Missouri Parks. Effective April 3, 2020, the Companys Georgia and Missouri Parks were closed as a result of shelter-in-place mandates in Georgia and Missouri. Also note that prior to the acquisition of the Texas Park, its operations were suspended for the majority of April 2020 due to a shelter-in-place mandate in Texas. In compliance with respective state issued guidelines, the Georgia Park and the Texas Park each reopened on May 1, 2020, and the Missouri Park reopened on May 4, 2020. Subsequent to reopening, attendance levels were strong at each of the Companys three Parks for the balance of its 2020 fiscal year, which has continued through the first six months of its 2021 fiscal year. However, there may be longer-term negative impacts to the Companys business, results of operations and cash flows, and financial condition as a result of the COVID-19 pandemic. These negative impacts include changes in customer behavior and preferences causing significant volatility or reductions in Park attendance, increases in operating expenses to comply with additional hygiene-related protocols, limitations in our ability to recruit and maintain staffing, limitations on our employees ability to work and travel, and significant changes in the economic or political conditions in the areas the Companys Parks are located. Despite the Companys efforts to manage these impacts, the ultimate impact may be material, and will depend on a number of factors beyond its control, including the duration and severity of the COVID-19 pandemic and actions by governmental authorities taken to contain its spread and mitigate its public health effects. There is also the potential for attendance levels at the Companys Parks to decline as alternative entertainment venues reopen to full capacity once the COVID-19 pandemic has run its course or vaccines are in use and made widely available. |
NOTE 2. SIGNIFICANT ACCOUNTING
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Apr. 04, 2021 | |
Notes | |
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation: Principles of Consolidation: Accounting Method: Estimates and Assumptions: Fiscal Year End: Financial and Concentrations Risk: Trade Accounts Receivable: Inventory: Property and Equipment: April 4, 2021 September 27, 2020 Depreciable Lives Land $ 6,389,470 $ 6,389,470 not applicable Mineral rights 276,000 276,000 25 years Ground improvements 2,486,503 2,334,172 7-25 years Buildings and structures 3,874,199 3,798,098 10-39 years Animal shelters and habitats 2,246,869 2,098,947 10-39 years Park animals 1,188,618 1,166,583 5-25 years Equipment - concession and related 255,426 232,281 3-15 years Equipment and vehicles - yard and field 612,160 556,168 3-15 years Vehicles - buses and rental 286,656 237,075 3-5 years Rides and entertainment 227,574 224,578 5-7 years Furniture and fixtures 26,057 26,057 5-10 years Projects in process 165,209 34,290 Property and equipment, cost 18,034,741 17,373,719 Less accumulated depreciation (4,055,863) (3,718,919) Property and equipment, net $ 13,978,878 $ 13,654,800 Depreciation expense for the three months ended April 4, 2021 and March 29, 2020 totaled $172,807 and $117,500, respectively, and depreciation expense for the six months ended April 4, 2021 and March 29, 2020 totaled $340,007 and $235,000, respectively. Impairment of Long-Lived Assets: Other Current Liabilities: April 4, 2021 September 27, 2020 Deferred revenue $ 343,813 $ 273,386 Accrued sales taxes 120,208 69,101 Accrued wages and payroll taxes 117,426 42,774 Accrued property taxes 10,717 68,530 Accrued income taxes - 46,402 Other accrued liabilities 35,991 99,197 Other current liabilities $ 628,155 $ 599,390 Financial Instruments: Revenue Recognition: Revenues from Contracts with Customers Revenues from park admission fees are recognized at the point in time control transfers to the customer, which is generally when the customer accepts access to the park and the Company is entitled to payment. Park admission fee revenues from advance online ticket purchases are deferred until the customers visit to the parks. Revenues from retail and concession sales are generally recognized upon the concurrent receipt of payment and delivery of goods to the customer. Sales taxes billed and collected are not included in revenue. Deferred revenues from advance online admission tickets were $343,813 and $273,386 as of April 4, 2021 and September 27, 2020, respectively, and are included within Other Current Liabilities in the accompanying consolidated balance sheets. The Company periodically sells surplus animals created from the natural breeding process that occurs within the parks. All animal sales are reported as a separate revenue line item. Animal sales are recognized at a point in time when control transfer to the customer, which is generally determined when title, ownership and risk of loss pass to the customer, all of which generally occurs upon delivery of the animal. Based on the Companys assessment of control indicators, sales are recognized when animals are delivered to the customer. The Company provides disaggregation of revenue based on geography in NOTE 10: BUSINESS SEGMENTS, as it believes this best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Advertising and Marketing Costs: Stock Based Compensation: A Stock Option and Award Plan (the Plan) providing for incentive stock options and performance bonus awards for executives, employees, and directors was approved by the Companys Board of Directors on February 1, 2005, however, the Plan has not been submitted to the stockholders for approval. The Plan sets aside five million (5,000,000) shares for award of stock options, including qualified incentive stock options and performance stock bonuses. To date, no grants or awards have been made pursuant to the Plan and the Company did not submit the Plan for consideration to the Companys stockholders at its last meeting of stockholders. Income Taxes: A tax position is recognized as a benefit only if it is more-likely-than-not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than fifty percent likely of being realized on examination. For tax positions not meeting the more-likely-than-not test, no tax benefit is recorded. The Company has no unrecognized tax benefits under guidance related to tax uncertainties. The Company does not anticipate the unrecognized tax benefits will significantly change in the next twelve months. Any tax penalties or interest expense will be recognized in income tax expense. No interest and penalties related to unrecognized tax benefits were accrued as of April 4, 2021 or September 27, 2020. Basic and Diluted Net Income (Loss) Per Share: 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: Recent Accounting Pronouncements: Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes (Update 2019-12) Except as noted, the Company does not expect recently issued accounting standards or interpretations to have a material impact on the Companys financial position, results of operations, cash flows or financial statement disclosures. |
NOTE 3. ACQUISITION
NOTE 3. ACQUISITION | 6 Months Ended |
Apr. 04, 2021 | |
Notes | |
NOTE 3. ACQUISITION | NOTE 3. ACQUISITION On April 27, 2020, the Company, through a newly formed subsidiary, Aggieland-Parks, Inc., a Texas corporation, acquired substantially all the assets of Aggieland Safari LLC, Ferrill Creek Ranch LLC, and Vernell Investments LLC (combined the Aggieland Assets), primarily consisting of the Aggieland Safari Adventure Zoo and Safari Park (Aggieland Safari), including animal inventory, real estate, mineral rights, and certain equipment and other assets necessary to operate Aggieland Wild Animal Texas. Aggieland Wild Animal Texas is situated on 250 acres of a 450-acre property, located approximately 25 miles northeast of Bryan/College Station, Texas and 120 miles northwest of downtown Houston. The total purchase price for the Aggieland Assets was $7,102,000, after determination of the fair value of the seller note. The transaction was financed with a $5,000,000 loan (the 2020 Term Loan) from First Financial Bank, N.A. (First Financial), a seller note with a face value of $750,000 (the Aggieland Seller Note), and cash totaling $1,375,000. The 2020 Term Loan is secured by substantially all of the Aggieland Assets, as well as guarantees from the Company and its subsidiaries. The 2020 Term Loan bears interest at a rate of 5.0% per annum, has a maturity date of April 27, 2031, with interest only payable monthly through April 2021. The Aggieland Seller Note represents a deferred portion of the purchase price, bears no interest, has a maturity date of June 30, 2021, and is secured by a second priority subordinated lien and security interest in the acquired mineral rights and the animal inventory. The Company applied a 2.5% discount rate to determine a fair value of $728,500 for the Aggieland Seller Note as of April 27, 2020. The following table sets forth the purchase consideration paid to the members of Aggieland Safari and the amount of assets acquired and liabilities assumed as of the acquisition date: Sources of consideration paid to Aggieland Safari Members: Cash advances $ 125,000 Cash at closing 1,250,000 2020 Term Loan 5,000,000 Aggieland Seller Note 728,500 Less cash received (1,500) Total consideration $ 7,102,000 Purchase price allocation: Inventories $ 10,000 Property and equipment 7,131,000 Deferred revenue (39,000) Total net assets acquired $ 7,102,000 The purchase price has been allocated based on an estimate of the fair value of assets acquired and liabilities assumed as of the acquisition date. The determination of estimated fair value requires management to make significant estimates and assumptions. The following table presents supplemental pro forma information for the six month period ended March 29, 2020 as if the acquisition had occurred at the beginning of the Companys 2019 fiscal year. The unaudited pro forma information includes adjustments for depreciation expense on property and equipment acquired, interest expense on debt incurred related to the acquisition, and the related income tax effects, as well as the elimination of property and equipment impairment charges recorded by Aggieland Safari prior to the acquisition. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected at the beginning of the Companys 2019 fiscal year. For the six months ended March 29, 2020 Total net sales $ 2,393,835 Net loss $ (427,289) Income per share - basic and diluted $ (0.01) |
NOTE 4. LONG-TERM DEBT
NOTE 4. LONG-TERM DEBT | 6 Months Ended |
Apr. 04, 2021 | |
Notes | |
NOTE 4. LONG-TERM DEBT | NOTE 4. LONG-TERM DEBT On April 27, 2020, the Company acquired Aggieland Wild Animal Texas, see NOTE 3. ACQUISITION, financing the transaction with the 2020 Term Loan from First Financial and the Aggieland Seller Note. The 2020 Term Loan in the original principal amount of $5,000,000 from First Financial is secured by substantially all of the Aggieland Wild Animal Texas assets, as well as guarantees from the Company and its subsidiaries. The 2020 Term Loan bears interest at a rate of 5.0% per annum, has a maturity date of April 27, 2031, with interest only payable monthly through April 2021. The Company paid a total of approximately $62,375 in fees and expenses in connection with the 2020 Term Loan. The Aggieland Seller Note represents a deferred portion of the purchase price, has a face value of $750,000, bears no interest, has a maturity date of June 30, 2021, and is secured by a second priority subordinated lien and security interest in the acquired mineral rights and the animal inventory. The Company applied a 2.5% discount rate to determine a fair value of $728,500 for the Aggieland Seller Note as of April 27, 2020 and the resulting $21,500 discount will be amortized as interest expense over the 14 month period until the note matures. Including the remaining unamortized discount, the recorded value of the Aggieland Seller Note as of April 4, 2021 was $745,294. On July 11, 2018, the Company, through its wholly owned subsidiary Wild Animal Georgia, completed a refinancing transaction (the 2018 Refinancing) with Synovus Bank (Synovus). The 2018 Refinancing included a term loan in the original principal amount of $1,600,000 (the 2018 Term Loan). The 2018 Term Loan bears interest at a rate of 5.0% per annum and is payable in monthly payments of approximately $22,672, based on a seven year amortization period. The 2018 Term Loan has a maturity date of June 11, 2021, with an option to renew at 5.0% per annum for an additional 49-month term. The 2018 Term Loan is secured by a security deed on the assets of Wild Animal Georgia. The Company paid a total of approximately $15,680 in fees and expenses in connection with the 2018 Refinancing. The outstanding balance of the 2018 Term Loan was $1,056,244 as of April 4, 2021. As a result of the initial negative economic impacts and uncertainties caused by the COVID-19 pandemic, Wild Animal Georgia and Wild Animal Missouri each applied for Paycheck Protection Program (PPP) loans. On April 14, 2020 and April 16, 2020, the Company received two unsecured PPP loans totaling $188,087. The PPP was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27, 2020, and is administered by the U.S. Small Business Administration (the SBA). The term of the PPP loans is two years, with an interest rate of 1.0% per annum. All payments are deferred for the first twelve months of these PPP loans, with accrued interest being added to the principal during the payment deferral period. After the initial twelve-month deferral period, monthly principal and interest payments will be due until maturity for any portion of the PPP loans not forgiven. Under the terms of the CARES Act, some or all of the PPP loan proceeds are eligible to be forgiven. The amount of the PPP loans eligible to be forgiven are based on the use of the proceeds for payroll costs, mortgage interest, rent or utility costs, and the maintenance of employee and compensation levels, subject to limitations and ongoing rulemaking by the SBA. The Company applied for forgiveness of the full amount of both the Wild Animal Georgia and Wild Animal Missouri PPP loans in March 2021. Effective March 29, 2021, the SBA approved the Forgiveness Application for Wild Animal Georgia, resulting in a gain on extinguishment of debt totaling $125,371 in the three months ended April 4, 2021. The Companys Forgiveness Application for the full amount of its Wild Animal Safari Missouri PPP loan remains pending as of the date of this report. Including accrued interest, the principal outstanding on the Wild Animal Missouri PPP loan was $64,526 as of April 4, 2021. The Company will continue to account for its outstanding PPP loan under their defined terms until such time as forgiveness is granted by the SBA. Interest expense of $84,207 and $17,191 for the three months ended April 4, 2021 and March 29, 2020, respectively, includes $1,978 and $560, respectively, of debt closing costs amortization in each period. Interest expense of $175,620 and $34,912 for the six months ended April 4, 2021 and March 29, 2020, respectively, includes $3,956 and $1,120, respectively, of debt closing costs amortization in each period. In addition, interest expense for the three months and six months ended April 4, 2021 includes $4,639 and $9,279 of loan discount amortization, respectively. The following table represents the aggregate of the Companys outstanding long-term debt: As of April 4, 2021 September 27, 2020 Loan principal outstanding $ 6,866,064 $ 7,089,053 Less: unamortized debt financing costs (66,696) (70,652) Gross long-term debt 6,799,368 7,018,401 Less current portion of long-term debt, net of unamortized costs and discount (1,362,097) (1,221,009) Long-term debt $ 5,437,271 $ 5,797,392 As of April 4, 2021, the scheduled future principal maturities of the Companys long-term debt by fiscal year are as follows: 2021 $ 1,047,553 2022 661,667 2023 661,976 2024 696,466 2025 688,895 thereafter 3,109,507 Total $ 6,866,064 |
NOTE 5. LINE OF CREDIT
NOTE 5. LINE OF CREDIT | 6 Months Ended |
Apr. 04, 2021 | |
Notes | |
NOTE 5. LINE OF CREDIT | NOTE 5. LINE OF CREDIT On July 11, 2018, the Company, through its wholly owned subsidiary Wild Animal Georgia, completed the 2018 Refinancing with Synovus. The 2018 Refinancing includes a line of credit of up to $350,000 (the 2018 LOC). The 2018 LOC bears interest at a rate of 4.75% and interest only payments are due monthly. The 2018 LOC is secured by a security deed on the assets of Wild Animal Georgia. The 2018 LOC matures on July 11, 2021, with an option to renew for an additional three-year term. If necessary, the Company intends to utilize the 2018 LOC to fund seasonal working capital needs. As of April 4, 2021 and September 27, 2020, respectively, there was no outstanding balance against the Companys LOC. When applicable, any advance on a Company LOC is recorded as a current liability. |
NOTE 6. STOCKHOLDERS' EQUITY
NOTE 6. STOCKHOLDERS' EQUITY | 6 Months Ended |
Apr. 04, 2021 | |
Notes | |
NOTE 6. STOCKHOLDERS' EQUITY | NOTE 6. STOCKHOLDERS EQUITY Shares of common stock issued for service to the Company are valued based on market price on the date of the award. On December 18, 2020, the Company declared its annual compensation award to six Directors for their service on the Board of Directors. Each Director was awarded $10,000, to be paid all in shares of the Companys common stock, all in cash or a combination thereof, at each Directors election. Four Directors elected to receive all shares, one Director elected to receive 50% in shares and 50% in cash, and one Director elected all cash. Based on the closing stock price of $0.4388 per share on December 18, 2020, a total of 102,550 shares were distributed on January 11, 2021. The total compensation award cost of $60,000 was reported as an expense in the first quarter of the 2021 fiscal year. On December 5, 2019, the Company declared its annual compensation award to four Directors for their service on the Board of Directors. Each Director was awarded $8,500, to be paid all in shares of the Companys common stock, all in cash or a combination thereof, at each Directors election. All four Directors elected to receive all shares, totaling 200,000 shares, based on the closing stock price of $0.17 per share on December 5, 2019. The total award cost of $34,000 was reported as an expense in the first quarter of the 2020 fiscal year, and the Company distributed each award on January 8, 2020. Officers, Directors and their controlled entities own approximately 52.8% of the outstanding common stock of the Company as of April 4, 2021. |
NOTE 7. SIGNIFICANT TRANSACTION
NOTE 7. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES | 6 Months Ended |
Apr. 04, 2021 | |
Notes | |
NOTE 7. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES | NOTE 7. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES Effective as of June 1, 2020, the Company and Dale Van Voorhis, the Companys Chairman and Chief Executive Officer, entered into an employment agreement (the 2020 Van Voorhis Employment Agreement). Pursuant to the 2020 Van Voorhis Employment Agreement, Mr. Van Voorhis receives an initial base annual compensation in the amount of $100,000 per year, subject to annual review by the Board of Directors. The 2020 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. Effective as of January 1, 2019, the Company and Todd R. White, the Companys Chief Financial Officer, entered into an employment agreement (the 2019 White Employment Agreement). The 2019 White Employment Agreement has a term of three years, with minimum annual compensation of $70,000 in year one, $75,000 in year two and $80,000 in year three. Effective January 1, 2021, Mr. Whites annual compensation was changed to $90,000. Mr. White is entitled to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company. Effective as of May 1, 2018, the Company entered into an employment agreement with Michael D. Newman (the Newman Employment Agreement) to serve as the Companys Vice President of Safari Operations. Mr. Newman had been the general manager of Wild Animal Georgia since February 2011. Pursuant to the Newman Employment Agreement, Mr. Newman received an initial base annual compensation of $95,000 per year, subject to annual review by the Board of Directors. Mr. Newman also received a $5,000 signing bonus. Effective as of May 1, 2020, Mr. Newmans annual compensation was changed to $108,000. The Newman Employment Agreement has a term of five years and entitles Mr. Newman to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company. As of April 4, 2021, the Company has not adopted any deferred compensation plans. 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 ($216,667 in aggregate) or (ii) in the event of a change in control of the Company ($481,667 in aggregate), as well as disability and death payment provisions ($141,500 in aggregate). |
NOTE 8. INCOME TAXES
NOTE 8. INCOME TAXES | 6 Months Ended |
Apr. 04, 2021 | |
Notes | |
NOTE 8. INCOME TAXES | NOTE 8. INCOME TAXES For the six month period ended April 4, 2021, the Company reported pre-tax income of $1,002,383. For the fiscal year ending October 3, 2021, the Company expects to generate pre-tax income and to record a tax provision at a blended effective federal and state income tax rate of approximately 25.0%. The Company recorded a net income tax provision of $236,400 for the six month period ended April 4, 2021, comprised of a federal expense of $171,000 and a State of Georgia expense of $65,400. The Companys net income tax provision for the six month period ended March 29, 2020 was a tax benefit of $76,900, comprised of a federal benefit of $74,200 and a State of Georgia benefit of $2,700. |
NOTE 9. COMMITMENTS AND CONTING
NOTE 9. COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Apr. 04, 2021 | |
Notes | |
NOTE 9. COMMITMENTS AND CONTINGENCIES | NOTE 9. COMMITMENTS AND CONTINGENCIES On February 17, 2021, two children of James Meikle, the Companys former President and Chief Operating Officer, filed a Complaint in the Eighth Judicial District Court, Clark County, Nevada (case no. A-21-829563-C), alleging the Company was obligated under Mr. Meikles Employment Agreement to purchase at least $540,000 of life insurance for Mr. Meikle, who passed away on November 28, 2018. The Complaint seeks damages of $540,000, as well as interest and expenses. The Company believes the Complaint is without merit and is vigorously opposing this claim. On May 21, 2019, the Companys Missouri Park was struck by a tornado and sustained property damage, primarily to the walk about, the more traditional zoo-like section of the park, as well as to several auxiliary buildings. The park was closed at the time of this event and no employees were injured. While a few animals sustained non-life threatening injuries, no animals were killed or escaped. As a result of the tornado damage, through September 29, 2019, the Company had written-off $56,339 related to the net book value of property destroyed and damaged, and incurred $24,105 of cleanup and repair expenses. Through September 29, 2019, the Company had capitalized $66,376 of expenditures related to improvements associated with the tornado damage. The Company capitalized an additional $71,478 of improvements associated with the tornado damage during the year ended September 27, 2020. On April 15, 2020, the Company received $24,373 of insurance proceeds, partially offsetting the costs and expenses incurred in the recovery from the tornado damage. Except as noted above, the Company is not a party to any pending legal proceeding, nor is its 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 its business. None of the Companys directors, officers or affiliates is involved in a proceeding adverse to its business or has a material interest adverse to its business. |
NOTE 10. BUSINESS SEGMENTS
NOTE 10. BUSINESS SEGMENTS | 6 Months Ended |
Apr. 04, 2021 | |
Notes | |
NOTE 10. 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. The following tables present financial information regarding each of the Companys reportable segments: For the three months ended For the six months ended April 4, 2021 March 29, 2020 April 4, 2021 March 29, 2020 Total net sales: Georgia $ 1,609,777 $ 631,622 $ 3,178,788 $ 1,530,058 Missouri 319,649 111,335 539,677 208,384 Texas 546,757 - 984,917 - Consolidated $ 2,476,183 $ 742,957 $ 4,703,382 $ 1,738,442 Income (loss) before income taxes: Georgia $ 818,557 $ 78,849 $ 1,680,254 $ 411,622 Missouri (29,720) (150,272) (160,187) (313,689) Texas 23,479 - 4,534 - Segment total 812,316 (71,423) 1,524,601 97,933 Corporate (182,487) (165,280) (499,288) (434,728) Other income, net 12,755 7,542 27,319 15,504 Gain on extinguishment of debt 125,371 - 125,371 - Interest expense (84,207) (17,191) (175,620) (34,912) Consolidated $ 683,748 $ (246,352) $ 1,002,383 $ (356,203) As of April 4, 2021 September 27, 2020 Total assets: Georgia $ 9,095,177 $ 8,352,457 Missouri 2,963,501 3,120,166 Texas 7,847,934 7,919,577 Corporate 198,692 130,083 Consolidated $ 20,105,304 $ 19,522,283 |
NOTE 11. SUBSEQUENT EVENTS
NOTE 11. SUBSEQUENT EVENTS | 6 Months Ended |
Apr. 04, 2021 | |
Notes | |
NOTE 11. SUBSEQUENT EVENTS | NOTE 11. SUBSEQUENT EVENTS The Company has analyzed its operations subsequent to April 4, 2021 to the date these financial statements were issued and has determined that no material subsequent events have occurred from the date of these unaudited consolidated financial statements through the date of filing. |
NOTE 2. SIGNIFICANT ACCOUNTIN_2
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Basis of Presentation | Basis of Presentation: |
NOTE 2. SIGNIFICANT ACCOUNTIN_3
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Principles of Consolidation | Principles of Consolidation: |
NOTE 2. SIGNIFICANT ACCOUNTIN_4
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Accounting Method (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Accounting Method | Accounting Method: |
NOTE 2. SIGNIFICANT ACCOUNTIN_5
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Estimates and Assumptions (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Estimates and Assumptions | Estimates and Assumptions: |
NOTE 2. SIGNIFICANT ACCOUNTIN_6
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Fiscal Year End (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Fiscal Year End | Fiscal Year End: |
NOTE 2. SIGNIFICANT ACCOUNTIN_7
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Financial and Concentrations Risk (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Financial and Concentrations Risk | Financial and Concentrations Risk: |
NOTE 2. SIGNIFICANT ACCOUNTIN_8
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Trade Accounts Receivable (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Trade Accounts Receivable | Trade Accounts Receivable: |
NOTE 2. SIGNIFICANT ACCOUNTIN_9
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Inventory (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Inventory | Inventory: |
NOTE 2. SIGNIFICANT ACCOUNTI_10
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Property and Equipment | Property and Equipment: April 4, 2021 September 27, 2020 Depreciable Lives Land $ 6,389,470 $ 6,389,470 not applicable Mineral rights 276,000 276,000 25 years Ground improvements 2,486,503 2,334,172 7-25 years Buildings and structures 3,874,199 3,798,098 10-39 years Animal shelters and habitats 2,246,869 2,098,947 10-39 years Park animals 1,188,618 1,166,583 5-25 years Equipment - concession and related 255,426 232,281 3-15 years Equipment and vehicles - yard and field 612,160 556,168 3-15 years Vehicles - buses and rental 286,656 237,075 3-5 years Rides and entertainment 227,574 224,578 5-7 years Furniture and fixtures 26,057 26,057 5-10 years Projects in process 165,209 34,290 Property and equipment, cost 18,034,741 17,373,719 Less accumulated depreciation (4,055,863) (3,718,919) Property and equipment, net $ 13,978,878 $ 13,654,800 Depreciation expense for the three months ended April 4, 2021 and March 29, 2020 totaled $172,807 and $117,500, respectively, and depreciation expense for the six months ended April 4, 2021 and March 29, 2020 totaled $340,007 and $235,000, respectively. |
NOTE 2. SIGNIFICANT ACCOUNTI_11
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Impairment of Long-Lived Assets (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: |
NOTE 2. SIGNIFICANT ACCOUNTI_12
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Other Current Liabilities (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Other Current Liabilities | Other Current Liabilities: April 4, 2021 September 27, 2020 Deferred revenue $ 343,813 $ 273,386 Accrued sales taxes 120,208 69,101 Accrued wages and payroll taxes 117,426 42,774 Accrued property taxes 10,717 68,530 Accrued income taxes - 46,402 Other accrued liabilities 35,991 99,197 Other current liabilities $ 628,155 $ 599,390 |
NOTE 2. SIGNIFICANT ACCOUNTI_13
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Financial Instruments (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Financial Instruments | Financial Instruments: |
NOTE 2. SIGNIFICANT ACCOUNTI_14
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Revenue Recognition | Revenue Recognition: Revenues from Contracts with Customers Revenues from park admission fees are recognized at the point in time control transfers to the customer, which is generally when the customer accepts access to the park and the Company is entitled to payment. Park admission fee revenues from advance online ticket purchases are deferred until the customers visit to the parks. Revenues from retail and concession sales are generally recognized upon the concurrent receipt of payment and delivery of goods to the customer. Sales taxes billed and collected are not included in revenue. Deferred revenues from advance online admission tickets were $343,813 and $273,386 as of April 4, 2021 and September 27, 2020, respectively, and are included within Other Current Liabilities in the accompanying consolidated balance sheets. The Company periodically sells surplus animals created from the natural breeding process that occurs within the parks. All animal sales are reported as a separate revenue line item. Animal sales are recognized at a point in time when control transfer to the customer, which is generally determined when title, ownership and risk of loss pass to the customer, all of which generally occurs upon delivery of the animal. Based on the Companys assessment of control indicators, sales are recognized when animals are delivered to the customer. The Company provides disaggregation of revenue based on geography in NOTE 10: BUSINESS SEGMENTS, as it believes this best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. |
NOTE 2. SIGNIFICANT ACCOUNTI_15
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Advertising and Marketing Costs (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Advertising and Marketing Costs | Advertising and Marketing Costs: |
NOTE 2. SIGNIFICANT ACCOUNTI_16
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Stock Based Compensation (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Stock Based Compensation | Stock Based Compensation: A Stock Option and Award Plan (the Plan) providing for incentive stock options and performance bonus awards for executives, employees, and directors was approved by the Companys Board of Directors on February 1, 2005, however, the Plan has not been submitted to the stockholders for approval. The Plan sets aside five million (5,000,000) shares for award of stock options, including qualified incentive stock options and performance stock bonuses. To date, no grants or awards have been made pursuant to the Plan and the Company did not submit the Plan for consideration to the Companys stockholders at its last meeting of stockholders. |
NOTE 2. SIGNIFICANT ACCOUNTI_17
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Income Taxes | Income Taxes: A tax position is recognized as a benefit only if it is more-likely-than-not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than fifty percent likely of being realized on examination. For tax positions not meeting the more-likely-than-not test, no tax benefit is recorded. The Company has no unrecognized tax benefits under guidance related to tax uncertainties. The Company does not anticipate the unrecognized tax benefits will significantly change in the next twelve months. Any tax penalties or interest expense will be recognized in income tax expense. No interest and penalties related to unrecognized tax benefits were accrued as of April 4, 2021 or September 27, 2020. |
NOTE 2. SIGNIFICANT ACCOUNTI_18
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Net Income (Loss) Per Share (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Basic and Diluted Net Income (Loss) Per Share | Basic and Diluted Net Income (Loss) Per Share: 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. |
NOTE 2. SIGNIFICANT ACCOUNTI_19
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Dividend Policy (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Dividend Policy | Dividend Policy: |
NOTE 2. SIGNIFICANT ACCOUNTI_20
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Apr. 04, 2021 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes (Update 2019-12) Except as noted, the Company does not expect recently issued accounting standards or interpretations to have a material impact on the Companys financial position, results of operations, cash flows or financial statement disclosures. |
NOTE 2. SIGNIFICANT ACCOUNTI_21
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Property, Plant and Equipment (Tables) | 6 Months Ended |
Apr. 04, 2021 | |
Tables/Schedules | |
Property, Plant and Equipment | April 4, 2021 September 27, 2020 Depreciable Lives Land $ 6,389,470 $ 6,389,470 not applicable Mineral rights 276,000 276,000 25 years Ground improvements 2,486,503 2,334,172 7-25 years Buildings and structures 3,874,199 3,798,098 10-39 years Animal shelters and habitats 2,246,869 2,098,947 10-39 years Park animals 1,188,618 1,166,583 5-25 years Equipment - concession and related 255,426 232,281 3-15 years Equipment and vehicles - yard and field 612,160 556,168 3-15 years Vehicles - buses and rental 286,656 237,075 3-5 years Rides and entertainment 227,574 224,578 5-7 years Furniture and fixtures 26,057 26,057 5-10 years Projects in process 165,209 34,290 Property and equipment, cost 18,034,741 17,373,719 Less accumulated depreciation (4,055,863) (3,718,919) Property and equipment, net $ 13,978,878 $ 13,654,800 |
NOTE 2. SIGNIFICANT ACCOUNTI_22
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Other Current Liabilities: Other Current Liabilities (Tables) | 6 Months Ended |
Apr. 04, 2021 | |
Tables/Schedules | |
Other Current Liabilities | April 4, 2021 September 27, 2020 Deferred revenue $ 343,813 $ 273,386 Accrued sales taxes 120,208 69,101 Accrued wages and payroll taxes 117,426 42,774 Accrued property taxes 10,717 68,530 Accrued income taxes - 46,402 Other accrued liabilities 35,991 99,197 Other current liabilities $ 628,155 $ 599,390 |
NOTE 3. ACQUISITION_ Schedule o
NOTE 3. ACQUISITION: Schedule of Sources of consideration paid to Aggieland Safari Members (Tables) | 6 Months Ended |
Apr. 04, 2021 | |
Tables/Schedules | |
Schedule of Sources of consideration paid to Aggieland Safari Members | Sources of consideration paid to Aggieland Safari Members: Cash advances $ 125,000 Cash at closing 1,250,000 2020 Term Loan 5,000,000 Aggieland Seller Note 728,500 Less cash received (1,500) Total consideration $ 7,102,000 Purchase price allocation: Inventories $ 10,000 Property and equipment 7,131,000 Deferred revenue (39,000) Total net assets acquired $ 7,102,000 |
NOTE 3. ACQUISITION_ Schedule_2
NOTE 3. ACQUISITION: Schedule of supplemental pro forma information (Tables) | 6 Months Ended |
Apr. 04, 2021 | |
Tables/Schedules | |
Schedule of supplemental pro forma information | For the six months ended March 29, 2020 Total net sales $ 2,393,835 Net loss $ (427,289) Income per share - basic and diluted $ (0.01) |
NOTE 4. LONG-TERM DEBT_ Schedul
NOTE 4. LONG-TERM DEBT: Schedule of Debt (Tables) | 6 Months Ended |
Apr. 04, 2021 | |
Tables/Schedules | |
Schedule of Debt | As of April 4, 2021 September 27, 2020 Loan principal outstanding $ 6,866,064 $ 7,089,053 Less: unamortized debt financing costs (66,696) (70,652) Gross long-term debt 6,799,368 7,018,401 Less current portion of long-term debt, net of unamortized costs and discount (1,362,097) (1,221,009) Long-term debt $ 5,437,271 $ 5,797,392 |
NOTE 4. LONG-TERM DEBT_ Sched_2
NOTE 4. LONG-TERM DEBT: Schedule of Maturities of Long-term Debt (Tables) | 6 Months Ended |
Apr. 04, 2021 | |
Tables/Schedules | |
Schedule of Maturities of Long-term Debt | 2021 $ 1,047,553 2022 661,667 2023 661,976 2024 696,466 2025 688,895 thereafter 3,109,507 Total $ 6,866,064 |
NOTE 10. BUSINESS SEGMENTS_ Sch
NOTE 10. BUSINESS SEGMENTS: Schedule of Revenue by Reporting Segments (Tables) | 6 Months Ended |
Apr. 04, 2021 | |
Tables/Schedules | |
Schedule of Revenue by Reporting Segments | For the three months ended For the six months ended April 4, 2021 March 29, 2020 April 4, 2021 March 29, 2020 Total net sales: Georgia $ 1,609,777 $ 631,622 $ 3,178,788 $ 1,530,058 Missouri 319,649 111,335 539,677 208,384 Texas 546,757 - 984,917 - Consolidated $ 2,476,183 $ 742,957 $ 4,703,382 $ 1,738,442 Income (loss) before income taxes: Georgia $ 818,557 $ 78,849 $ 1,680,254 $ 411,622 Missouri (29,720) (150,272) (160,187) (313,689) Texas 23,479 - 4,534 - Segment total 812,316 (71,423) 1,524,601 97,933 Corporate (182,487) (165,280) (499,288) (434,728) Other income, net 12,755 7,542 27,319 15,504 Gain on extinguishment of debt 125,371 - 125,371 - Interest expense (84,207) (17,191) (175,620) (34,912) Consolidated $ 683,748 $ (246,352) $ 1,002,383 $ (356,203) As of April 4, 2021 September 27, 2020 Total assets: Georgia $ 9,095,177 $ 8,352,457 Missouri 2,963,501 3,120,166 Texas 7,847,934 7,919,577 Corporate 198,692 130,083 Consolidated $ 20,105,304 $ 19,522,283 |
NOTE 1. ORGANIZATION (Details)
NOTE 1. ORGANIZATION (Details) | 6 Months Ended |
Apr. 04, 2021 | |
Details | |
Entity Incorporation, Date of Incorporation | Jul. 30, 1954 |
Entity Information, Former Legal or Registered Name | Painted Desert Uranium & Oil Co., Inc. |
Entity Incorporation, State or Country Code | NV |
NOTE 2. SIGNIFICANT ACCOUNTI_23
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Property, Plant and Equipment (Details) - USD ($) | 6 Months Ended | |
Apr. 04, 2021 | Sep. 27, 2020 | |
Land | ||
Property, Plant and Equipment, Gross | $ 6,389,470 | $ 6,389,470 |
Depreciable Lives | not applicable | |
Mineral rights | ||
Property, Plant and Equipment, Gross | $ 276,000 | 276,000 |
Depreciable Lives | 25 years | |
Ground Improvements | ||
Property, Plant and Equipment, Gross | $ 2,486,503 | 2,334,172 |
Depreciable Lives | 7-25 years | |
Building | ||
Property, Plant and Equipment, Gross | $ 3,874,199 | 3,798,098 |
Depreciable Lives | 10-39 years | |
Animal shelters and habitats | ||
Property, Plant and Equipment, Gross | $ 2,246,869 | 2,098,947 |
Depreciable Lives | 10-39 years | |
Park animals | ||
Property, Plant and Equipment, Gross | $ 1,188,618 | 1,166,583 |
Depreciable Lives | 5-25 years | |
Equipment - concession and related | ||
Property, Plant and Equipment, Gross | $ 255,426 | 232,281 |
Depreciable Lives | 3-15 years | |
Equipment and vehicles - yard and field | ||
Property, Plant and Equipment, Gross | $ 612,160 | 556,168 |
Depreciable Lives | 3-15 years | |
Vehicles - buses and rental | ||
Property, Plant and Equipment, Gross | $ 286,656 | 237,075 |
Depreciable Lives | 3-5 years | |
Rides and entertainment | ||
Property, Plant and Equipment, Gross | $ 227,574 | 224,578 |
Depreciable Lives | 5-7 years | |
Furniture and Fixtures | ||
Property, Plant and Equipment, Gross | $ 26,057 | 26,057 |
Depreciable Lives | 5-10 years | |
Projects in process | ||
Property, Plant and Equipment, Gross | $ 165,209 | 34,290 |
Property, Plant and Equipment, Gross | 18,034,741 | 17,373,719 |
Less accumulated depreciation | (4,055,863) | (3,718,919) |
Property and equipment, net | $ 13,978,878 | $ 13,654,800 |
NOTE 2. SIGNIFICANT ACCOUNTI_24
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 04, 2021 | Mar. 29, 2020 | Apr. 04, 2021 | Mar. 29, 2020 | |
Details | ||||
Depreciation and amortization | $ 172,807 | $ 117,500 | $ 340,007 | $ 235,000 |
NOTE 2. SIGNIFICANT ACCOUNTI_25
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Other Current Liabilities: Other Current Liabilities (Details) - USD ($) | Apr. 04, 2021 | Sep. 27, 2020 |
Details | ||
Deferred revenue | $ 343,813 | $ 273,386 |
Accrued sales taxes | 120,208 | 69,101 |
Accrued wages and payroll taxes | 117,426 | 42,774 |
Accrued property taxes | 10,717 | 68,530 |
Accrued income taxes | 0 | 46,402 |
Other accrued liabilities | 35,991 | 99,197 |
Other current liabilities | $ 628,155 | $ 599,390 |
NOTE 2. SIGNIFICANT ACCOUNTI_26
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Advertising and Marketing Costs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 04, 2021 | Mar. 29, 2020 | Apr. 04, 2021 | Mar. 29, 2020 | |
Details | ||||
Marketing and Advertising Expense | $ 234,290 | $ 115,976 | $ 446,435 | $ 237,314 |
NOTE 4. LONG-TERM DEBT (Details
NOTE 4. LONG-TERM DEBT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Apr. 04, 2021 | Mar. 29, 2020 | Apr. 04, 2021 | Apr. 04, 2021 | Mar. 29, 2020 | |
Long-term Debt | $ 6,866,064 | $ 6,866,064 | $ 6,866,064 | ||
Gain on extinguishment of debt | 125,371 | $ 0 | 125,371 | $ 0 | |
2020 Term Loan from First Financial | |||||
Debt Instrument, Issuance Date | Apr. 27, 2020 | ||||
Debt Instrument, Description | 2020 Term Loan | ||||
Debt Instrument, Issuer | First Financial | ||||
Debt Instrument, Face Amount | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | ||
Debt Instrument, Collateral | secured by substantially all of the Aggieland Wild Animal – Texas assets, as well as guarantees from the Company and its subsidiaries | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | 5.00% | ||
Debt Instrument, Maturity Date | Apr. 27, 2031 | ||||
Aggieland Seller Note | |||||
Debt Instrument, Issuance Date | Apr. 27, 2020 | ||||
Debt Instrument, Description | Aggieland Seller Note | ||||
Debt Instrument, Face Amount | $ 750,000 | $ 750,000 | $ 750,000 | ||
Debt Instrument, Collateral | secured by a second priority subordinated lien and security interest in the acquired mineral rights and the animal inventory | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | 0.00% | 0.00% | ||
Debt Instrument, Maturity Date | Jun. 30, 2021 | ||||
Long-term Debt, Fair Value | $ 728,500 | $ 728,500 | $ 728,500 | ||
Debt Instrument, Discount | 21,500 | 21,500 | 21,500 | ||
Long-term Debt | 745,294 | 745,294 | $ 745,294 | ||
2018 Term Loan | |||||
Debt Instrument, Issuance Date | Jul. 11, 2018 | ||||
Debt Instrument, Description | 2018 Term Loan | ||||
Debt Instrument, Face Amount | $ 1,600,000 | $ 1,600,000 | $ 1,600,000 | ||
Debt Instrument, Collateral | secured by a security deed on the assets of Wild Animal – Georgia | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | 5.00% | ||
Debt Instrument, Maturity Date | Jun. 11, 2021 | ||||
Long-term Debt | $ 1,056,244 | $ 1,056,244 | $ 1,056,244 | ||
Debt Instrument, Fee Amount | 15,680 | 15,680 | $ 15,680 | ||
Paycheck Protection Program ('PPP') loans | |||||
Debt Instrument, Description | Paycheck Protection Program (“PPP”) loans | ||||
Debt Instrument, Face Amount | $ 188,087 | $ 188,087 | $ 188,087 | ||
Debt Instrument, Collateral | unsecured | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | 1.00% | 1.00% | ||
Long-term Debt | $ 64,526 | $ 64,526 | $ 64,526 | ||
Debt Instrument, Payment Terms | All payments are deferred for the first twelve months of these PPP loans, with accrued interest being added to the principal during the payment deferral period. After the initial twelve-month deferral period, monthly principal and interest payments will be due until maturity for any portion of the PPP loans not forgiven. Under the terms of the CARES Act, some or all of the PPP loan proceeds are eligible to be forgiven. | ||||
Gain on extinguishment of debt | $ 125,371 | ||||
Paycheck Protection Program ('PPP') loans | Minimum | |||||
Debt Instrument, Issuance Date | Apr. 14, 2020 | ||||
Paycheck Protection Program ('PPP') loans | Maximum | |||||
Debt Instrument, Issuance Date | Apr. 16, 2020 |
NOTE 4. LONG-TERM DEBT_ Sched_3
NOTE 4. LONG-TERM DEBT: Schedule of Debt (Details) - USD ($) | Apr. 04, 2021 | Sep. 27, 2020 |
Details | ||
Term Loan principal outstanding | $ 6,866,064 | $ 7,089,053 |
Less: unamortized debt closing costs | (66,696) | (70,652) |
Gross long-term debt | 6,799,368 | 7,018,401 |
Less current portion of long-term debt, net of unamortized debt closing costs | (1,362,097) | (1,221,009) |
Long-term debt | $ 5,437,271 | $ 5,797,392 |
NOTE 4. LONG-TERM DEBT_ Sched_4
NOTE 4. LONG-TERM DEBT: Schedule of Maturities of Long-term Debt (Details) | Apr. 04, 2021USD ($) |
Details | |
Long-Term Debt, Maturity, Year One | $ 1,047,553 |
Long-Term Debt, Maturity, Year Two | 661,667 |
Long-Term Debt, Maturity, Year Three | 661,976 |
Long-Term Debt, Maturity, Year Four | 696,466 |
Long-Term Debt, Maturity, Year Five | 688,895 |
Long-Term Debt, Maturity, after Year Five | 3,109,507 |
Long-term Debt | $ 6,866,064 |
NOTE 5. LINE OF CREDIT (Details
NOTE 5. LINE OF CREDIT (Details) - 2018 Refinancing with Synovus | 6 Months Ended |
Apr. 04, 2021USD ($) | |
Debt Instrument, Issuance Date | Jul. 11, 2018 |
Line of Credit Facility, Description | 2018 Refinancing with Synovus |
Line of Credit Facility, Maximum Borrowing Capacity | $ 350,000 |
Line of Credit Facility, Interest Rate Description | interest at a rate of 4.75% and interest only payments are due monthly |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% |
Debt Instrument, Maturity Date | Jul. 11, 2021 |
NOTE 7. SIGNIFICANT TRANSACTI_2
NOTE 7. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES (Details) | 6 Months Ended |
Apr. 04, 2021 | |
2020 Van Voorhis Employment Agreement | |
Related Party Transaction, Date | Jun. 1, 2020 |
Related Party Transaction, Description of Transaction | Company and Dale Van Voorhis, the Company’s Chairman and Chief Executive Officer, entered into an employment agreement |
2019 White Employment Agreement | |
Related Party Transaction, Date | Jan. 1, 2019 |
Related Party Transaction, Description of Transaction | Company and Todd R. White, the Company’s Chief Financial Officer, entered into an employment agreement (the “2019 White Employment Agreement”) |
Newman Employment Agreement | |
Related Party Transaction, Date | May 1, 2018 |
Related Party Transaction, Description of Transaction | Company entered into an employment agreement with Michael D. Newman |
NOTE 10. BUSINESS SEGMENTS_ S_2
NOTE 10. BUSINESS SEGMENTS: Schedule of Revenue by Reporting Segments (Details) - USD ($) | Apr. 04, 2021 | Sep. 27, 2020 | Apr. 04, 2021 | Mar. 29, 2020 | Apr. 04, 2021 | Mar. 29, 2020 |
Georgia | ||||||
Total net sales: | $ 1,609,777 | $ 631,622 | $ 3,178,788 | $ 1,530,058 | ||
Income (loss) before income taxes: | 818,557 | 78,849 | 1,680,254 | 411,622 | ||
Total assets: | $ 9,095,177 | $ 8,352,457 | ||||
Missouri | ||||||
Total net sales: | 319,649 | 111,335 | 539,677 | 208,384 | ||
Income (loss) before income taxes: | (29,720) | (150,272) | (160,187) | (313,689) | ||
Total assets: | 2,963,501 | 3,120,166 | ||||
Texas | ||||||
Total net sales: | 546,757 | 0 | 984,917 | 0 | ||
Income (loss) before income taxes: | 23,479 | 0 | 4,534 | 0 | ||
Total assets: | 7,847,934 | 7,919,577 | ||||
Total net sales: | 2,476,183 | 742,957 | 4,703,382 | 1,738,442 | ||
Income (loss) before income taxes: | 683,748 | (246,352) | 1,002,383 | (356,203) | ||
Total assets: | 20,105,304 | 19,522,283 | ||||
Segment total | ||||||
Income (loss) before income taxes: | 812,316 | (71,423) | 1,524,601 | 97,933 | ||
Corporate | ||||||
Income (loss) before income taxes: | (182,487) | (165,280) | (499,288) | (434,728) | ||
Total assets: | $ 198,692 | $ 130,083 | ||||
Other income (expense), net | ||||||
Income (loss) before income taxes: | 12,755 | 7,542 | 27,319 | 15,504 | ||
Gain on extinguishment of debt | ||||||
Income (loss) before income taxes: | 125,371 | 0 | 125,371 | 0 | ||
Interest expense | ||||||
Income (loss) before income taxes: | $ (84,207) | $ (17,191) | $ (175,620) | $ (34,912) |