10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 2, 2017

OR

[   ]. TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

COMMISSION FILE NUMBER 000-51254

Parks! America, Inc.

(Exact Name of small business issuer as specified in its charter)

Nevada	91-0626756
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

1300 Oak Grove Road

Pine Mountain, GA 31822

(Address of principal executive offices) (Zip Code)

Issuer's telephone Number: (706) 663-8744

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X]. No [   ].

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	[   ]	Accelerated filer	[   ]
Non-accelerated filer	[   ] (Do not check if a smaller reporting company)	Smaller reporting company	[X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [   ]. No [X]

As of August 7, 2017, the issuer had 74,671,537 outstanding shares of Common Stock. 

1

Table of Contents

PARKS! AMERICA, INC and SUBSIDIARIES

INDEX

		Page
PART I. FINANCIAL INFORMATION:
Item 1.	Unaudited Consolidated Financial Statements
	Consolidated Balance Sheets – July 2, 2017 and October 2, 2016	3
	Consolidated Statements of Operations – Three months and nine months ended July 2, 2017 and July 3, 2016	4
	Consolidated Statement of Changes in Stockholders’ Equity – Nine months ended July 2, 2017 and year ended October 2, 2016	5
	Consolidated Statements of Cash Flows – Nine months ended July 2, 2017 and July 3, 2016	6
	Notes to the Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	19
Item 4.	Controls and Procedures	19
PART II. OTHER INFORMATION:
Item 1.	Legal Proceedings	20
Item 1A.	Risk Factors	21
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3.	Defaults Upon Senior Securities	23
Item 4.	Mine Safety Disclosures	23
Item 5.	Other Information	23
Item 6.	Exhibits	23
	Signatures	24

2

PARKS! AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of July 2, 2017 and October 2, 2016
			July 2, 2017		October 2, 2016
ASSETS
Cash – unrestricted		$	2,785,664	$	1,482,777
Cash – restricted (Note 3)			-		456,492
Inventory			133,573		107,573
Prepaid expenses			34,066		87,760
	Total current assets		2,953,303		2,134,602
Property and equipment, net			6,555,394		6,432,897
Intangible assets, net			2,400		3,000
Deferred tax asset			375,405		777,124
Other assets			9,199		8,500
	Total assets	$	9,895,701	$	9,356,123
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Accounts payable		$	42,330	$	24,106
Other current liabilities			355,765		231,392
Accrued judgment award (Note 9)			-		372,416
Current portion of long-term debt, net			120,113		104,652
	Total current liabilities		518,208		732,566
Long-term debt, net			3,026,384		3,113,603
	Total liabilities		3,544,592		3,846,169
Stockholders’ equity
Common stock; 300,000,000 shares authorized,
	at $.001 par value; 74,671,537 and 74,531,537
	shares issued and outstanding, respectively		74,671		74,531
Capital in excess of par			4,825,666		4,809,606
Treasury stock			(3,250)		(3,250)
Retained earnings			1,454,022		629,067
Total stockholders’ equity			6,351,109		5,509,954
Total liabilities and stockholders’ equity		$	9,895,701	$	9,356,123

The accompanying notes are an integral part of these consolidated financial statements.

3

PARKS! AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months and Nine Months Ended July 2, 2017 and July 3, 2016
			For the three months ended				For the nine months ended
			July 2, 2017		July 3, 2016		July 2, 2017		July 3, 2016
Net sales		$	2,110,476	$	1,819,140	$	4,259,657	$	3,459,277
Sale of animals			4,027		-		74,134		16,327
Total net sales			2,114,503		1,819,140		4,333,791		3,475,604
Cost of sales			189,151		182,141		440,245		390,078
Selling, general and administrative			808,363		717,261		2,226,862		1,960,395
Depreciation and amortization			89,450		85,200		268,350		255,800
(Gain) loss on disposal of operating assets, net			-		2,623		(309)		2,623
Income from operations			1,027,539		831,915		1,398,643		866,708
Other income (expense), net			82,472		1,978		87,131		6,000
Interest expense			(49,799)		(52,144)		(150,819)		(163,375)
Income before income taxes			1,060,212		781,749		1,334,955		709,333
Income tax provision			406,000		50,100		510,000		55,500
Net income		$	654,212	$	731,649	$	824,955	$	653,833
Income per share - basic and diluted		$	0.01	$	0.01	$	0.01	$	0.01
	Weighted average shares outstanding (in 000's) - basic and diluted		74,674		74,531		74,632		74,488

The accompanying notes are an integral part of these consolidated financial statements.

4

Parks! America, Inc. and Subsidiaries
Consolidated Statements Changes in Stockholders' Equity
For the Nine Months Ended July 2, 2017 and Year Ended October 2, 2016
										Retained Earnings (Accumulated Deficit)
						Capital in Excess of Par		Treasury Stock
		Shares		Amount								Total
Balance at September 27, 2015		74,381,537	$	74,381	$	4,801,506	$	(3,250)	$	(1,272,490)	$	3,600,147
Issuance of common stock to Directors		150,000		150		8,100		-		-		8,250
Net income for the year
	ended October 2, 2016	-		-		-		-		1,901,557		1,901,557
Balance at October 2, 2016		74,531,537		74,531		4,809,606		(3,250)		629,067		5,509,954
Issuance of common stock to Directors		150,000		150		16,050		-		-		16,200
Common stock returned to the Company
	in conjunction with a legal settlement	(10,000)		(10)		10		-		-		-
Net income for the nine months
	ended July 2, 2017	-		-		-		-		824,955		824,955
Balance at July 2, 2017		74,671,537	$	74,671	$	4,825,666	$	(3,250)	$	1,454,022	$	6,351,109

The accompanying notes are an integral part of these condensed financial statements.

5

Parks! America, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
For the Nine Months Ended July 2, 2017 and July 3, 2016
				For the nine months ended
				July 2, 2017		July 3, 2016
OPERATING ACTIVITIES:
Net income			$	824,955	$	653,833
Reconciliation of net income to net cash provided by operating activities:
	Depreciation and amortization expense			268,350		255,800
	Interest expense - loan fee amortization			7,806		7,806
	(Gain) loss on disposal of assets			(309)		2,623
	Stock-based compensation			16,200		8,250
Changes in assets and liabilities
	(Increase) decrease in inventory			(26,000)		3,900
	(Increase) decrease in prepaid expenses			53,694		45,878
	Increase (decrease) in accounts payable			18,224		(32,094)
	Increase (decrease) in other current liabilities			124,373		49,079
	Increase (decrease) in accrued judgment award			(372,416)		-
	(Increase) decrease in deferred tax asset			401,719		-
		Net cash provided by operating activities		1,316,596		995,075
INVESTING ACTIVITIES:
Acquisition of property and equipment				(390,637)		(277,042)
(Increase) decrease in restricted cash				456,492		-
		Net cash provided by (used in) investing activities		65,855		(277,042)
FINANCING ACTIVITIES:
Proceeds from lines of credit and related party borrowings				-		220,000
Repayment of lines of credit and related party borrowings				-		(220,000)
Payments on notes payable				(79,564)		(89,384)
		Net cash used in financing activities		(79,564)		(89,384)
Net increase in cash				1,302,887		628,649
Cash at beginning of period				1,482,777		563,096
Cash at end of period			$	2,785,664	$	1,191,745
Supplemental Cash Flow Information:
Cash paid for interest			$	131,192	$	150,220
Cash paid for income taxes			$	116,770	$	76,525

The accompanying notes are an integral part of these consolidated financial statements.

6

PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

July 2, 2017

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 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”). The Company acquired the Georgia Park on June 13, 2005, and the Missouri Park on March 5, 2008.

The Parks are open year round but experience increased seasonal attendance, typically beginning in the latter half of March through early September. On a combined basis, net sales for the third and fourth quarter of the last two fiscal years represented approximately 67% to 72% of annual net sales.

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation: The Company’s unaudited consolidated financial statements for the three months and nine months ended July 2, 2017 and July 3, 2016 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 audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 2, 2016.

Principles of Consolidation: The accompanying consolidated financial statements include the accounts of the Company and its wholly owned 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 2017 fiscal year, October 1 will be the closest Sunday, and for the 2016 fiscal year, October 2 was the closest Sunday. The 2017 fiscal year will be comprised of 52-weeks, while the 2016 fiscal year was comprised of 53-weeks. 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.

7

PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

July 2, 2017

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 theme parks are a payment upfront business; therefore, the Company typically carries little or no accounts receivable. The Company had no accounts receivable as of July 2, 2017 and October 2, 2016, respectively.

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 thirty-nine years. A summary is included below.

		July 2, 2017		October 2, 2016	Depreciable Lives
Land	$	2,507,180	$	2,507,180	not applicable
Ground improvements		893,433		824,427	7-25 years
Buildings and structures		2,882,285		2,882,285	10-39 years
Animal shelters and habitats		1,270,224		1,219,023	10-39 years
Park animals		727,705		642,769	5-10 years
Equipment - concession and related		221,493		221,493	3-15 years
Equipment and vehicles - yard and field		545,381		512,445	3-15 years
Vehicles - buses and rental		209,626		186,932	3-5 years
Rides and entertainment		181,867		181,867	5-10 years
Furniture and fixtures		60,485		60,485	5-10 years
Projects in process		124,974		-
Property and equipment, cost		9,624,653		9,238,906
Less accumulated depreciation		(3,069,259)		(2,806,009)
Property and equipment, net	$	6,555,394	$	6,432,897

Intangible assets: Intangible assets consist of franchising fees, which are reported at cost and are being amortized over a period of 60 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.

Other Current Liabilities: The following is a breakdown of other current liabilities:

		July 2, 2017		October 2, 2016
Accrued sales taxes	$	53,911	$	28,928
Accrued wages and payroll taxes		47,821		23,814
Accrued income taxes		37,400		45,426
Deferred revenue		33,798		16,532
Accrued property taxes		29,174		37,408
Other accrued liabilities		153,661		79,284
Other current liabilities	$	355,765	$	231,392

8

PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

July 2, 2017

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 as of the balance sheet date presented.

Revenue Recognition: The Company’s major source of income is from theme park admissions. Theme park revenues from admission fees are generally recognized upon receipt of payment at the time of the customers’ visit to the parks. Theme park revenues from advance online ticket purchases are deferred until the customers’ visit to the parks. Short-term seasonal passes are sold primarily during the spring and summer seasons, are negligible to our results of operations and are not material. 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.

Advertising and Market Development: The Company expenses advertising and marketing costs as incurred.

Stock Based Compensation: The Company recognizes 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 of its common stock to members of 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.

Basic and diluted net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the 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: Except as noted in “NOTE 4. LONG-TERM DEBT”, 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.

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”) and on July 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). On November 8, 2016, $372,416 was paid out to the Harper Defendants against the Letter of Credit as a final settlement of the judgment and award of costs. As a result, the balance of the security amount, net of fees, was no longer restricted and on November 17, 2016 approximately $79,300 was returned to the Company as unrestricted funds.

9

PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

July 2, 2017

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 is secured by substantially all the assets of the Company and its wholly owned subsidiaries. The Refinancing Loan bears interest at the rate of Prime Rate plus 2.50%, resulting in a rate of 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.

		July 2, 2017		October 2, 2016
Refinancing Loan principal outstanding	$	3,286,943	$	3,366,507
Less: unamortized debt closing costs		(140,446)		(148,252)
Gross long-term debt		3,146,497		3,218,255
Less current portion of long-term debt, net of unamortized debt closing costs		(120,113)		(104,652)
Long-term debt	$	3,026,384	$	3,113,603

As of July 2, 2017, the scheduled future principal maturities by fiscal year are as follows:

2017	$	31,932
2018		132,406
2019		140,223
2020		148,502
2021		157,270
thereafter		2,676,610
Total	$	3,286,943

Interest expense of $49,799 and $52,144 for the three month period ended July 2, 2017 and July 3, 2016, respectively, includes $2,602 of amortization of debt closing costs in each period. Interest expense of $150,819 and $163,375 for the nine month period ended July 2, 2017 and July 3, 2016, respectively, includes $7,806 of amortization of debt closing costs in each period.

Effective October 3, 2016, the Company retroactively adopted the requirements of ASU No. 2015-03, Interest – Imputation of Interest (Subtopic 835-50): Simplifying the Presentation of Debt Issuance Costs, to present debt issuance costs as a reduction of the carrying amount of the related debt rather than an asset. Long-term debt and the current portion long-term debt as of October 2, 2016 were previously reported on the balance sheet as $3,251,447 and $115,060, respectively, with the associated $148,252 of unamortized debt closing costs reported in intangible assets. Amortization of debt closing costs of $2,602 and $7,806 for the three month and nine month periods ended July 2, 2017 and July 3, 2016, respectively, is reported as interest expense in the Consolidated Statements of Operations. Such amortization of debt closing costs was previously reported as amortization expense in the Consolidated Statement of Operations for the three month and nine month periods ended July 3, 2016, respectively.

NOTE 5. LINES OF CREDIT

The Company maintains a $350,000 line of credit loan (the “LOC”) from CB&T for working capital purposes. This LOC has an initial term of seven years, ending on January 8, 2020, and is subject to the satisfactory performance by the Company. The LOC interest rate is tied to the prime rate and was 6.00% as of July 2, 2017, with 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 July 2, 2017 and October 2, 2016, respectively, there was no outstanding balance against the LOC. When applicable, all advances on the Company’s LOC are recorded as current liabilities.

10

PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

July 2, 2017

NOTE 6. STOCKHOLDERS’ EQUITY

Shares of common stock issued for service to the Company are valued based on market price on the date of issuance. On December 20, 2016, 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 $0.108 per share or $16,200, which was reported as an expense in the first quarter of the 2017 fiscal year. On December 18, 2015, the Company awarded 150,000 shares of its common stock to six Directors for their service on the Board of Directors at a fair market value of $0.055 per share or $8,250, which was reported as an expense in the first quarter of the 2016 fiscal year.

Officers, Directors and their controlled entities own approximately 55.6% of the outstanding common stock of the Company as of July 2, 2017.

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. Effective June 1, 2016, the Company and Mr. Van Voorhis entered into the “2016 Van Voorhis Employment Agreement”. Pursuant to the 2016 Van Voorhis Employment Agreement, Mr. Van Voorhis receives an initial base annual compensation in the amount of $90,000 per year, subject to annual review by the Board of Directors. The 2016 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, 2017, the Company and Mr. Meikle entered into the “2017 Meikle Employment Agreement”. Pursuant to the 2017 Meikle Employment Agreement, Mr. Meikle receives an initial base annual compensation in the amount of $135,000 per year, subject to annual review by the Board of Directors. The 2017 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 April 2, 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 annual compensation of $50,000 per year, subject to annual review by the Board of Directors. Mr. White also received a $10,000 signing bonus. Effective April 2, 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.

NOTE 8. INCOME TAXES

For the nine month period ended July 2, 2017, the Company reported a pre-tax income of $1,334,955. For the fiscal year ending October 1, 2017 the Company expects to generate pre-tax income and to record a tax provision at an effective rate of approximately 38%. As such, the Company recorded a tax provision of $510,000 for the nine month period ended July 2, 2017.

The Company’s cumulative Federal net operating loss carry-forward was approximately $1,913,000 at October 2, 2016 and will expire beginning in the year 2026. For the fiscal year ending October 1, 2017 the Company expects to utilize a portion of its Federal net tax operating loss carry-forwards to offset regular Federal cash tax due in its 2017 fiscal year. However, the Company will likely owe Federal alternative minimum tax for its 2017 fiscal year. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $1,913,000 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.

11

PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

July 2, 2017

NOTE 9. COMMITMENTS AND CONTINGENCIES

Background

In September 2009, the Company filed an action against Larry Eastland, 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 to obtain a Temporary Restraining Order and injunctive relief against Mr. Eastland and his related companies as to their 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 original 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 (LEA Capital Advisors, LLC and the original defendants are collectively referred to herein as 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 regard to the Company’s purchase of TempSERV on September 30, 2007, its subsequent re-conveyance of TempSERV to Computer Contact Service, Inc. as of January 1, 2009, and other conduct of management at that time. The Company was seeking damages in excess of $1.8 million.

Discovery was conducted on the claims between the parties, after which the Harper Defendants filed a Motion for Summary Judgment asking that the claims against them be dismissed and that the counterclaims asserted by the Harper Defendants against the Company be granted. After briefing and argument, the Court granted summary judgment in favor of the Harper Defendants. Because one of the contracts at issue contained a legal fee provision, the Harper Defendants filed a motion seeking to recover legal fees and costs. On October 24, 2014, the Court granted the Harper Defendants’ motion in part and ordered the Company to pay $304,328 in costs and attorney’s fees to the Harper Defendants.

The Company appealed the summary judgment orders and the award of costs and attorney’s fees. On July 28, 2016, the Supreme Court of the State of Nevada issued an order mostly affirming the Eighth Judicial District Court’s summary judgment rulings and award of attorney’s fees and costs in favor of the Harper Defendants. After exhausting the Company’s options to further pursue its action against the Harper Defendants, the Company reached a final settlement with the Harper Defendants totaling $372,416, inclusive of additional attorney’s fees, costs and interest (the “Harper Judgment Award”), which was paid on November 8, 2016.

The separate claims against the Eastland Defendants then remained for trial in Nevada District Court.

Settlement with the Eastland Defendants

The Company entered into a settlement and release agreement dated March 30, 2017 (the “Eastland Settlement Agreement”) with certain the Eastland Defendants to settle the District Court Action. Pursuant to the Eastland Settlement Agreement, the Eastland Defendants agreed to make a settlement payment of $80,000 to the Company and assign 10,000 shares of the Company’s common stock beneficially owned by one of the Eastland Defendants to the Company (the “Settlement Shares”), and the Company consented to the sale of 10,010,000 shares of common stock beneficially owned by the Eastland Defendants to Nicholas Parks (the “NP Transaction”). On April 21, 2017, the Company received the $80,000 settlement payment and the Settlement Shares. A Stipulation and Order to Dismiss the Litigation with Prejudice was filed on April 24, 2017.

As part of the NP Transaction, the Company and Nicholas Parks entered into a Settlement Agreement and Release dated March 30, 2017 (the “NP Settlement Agreement”). This Agreement also has been released from escrow and is effective. As a result of the NP Transaction, Nicholas Parks holds shares representing approximately 13.4% of the outstanding common stock of the Company.

Other Matters

Except as described 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 Company’s directors, officers or affiliates is involved in a proceeding adverse to its business or has a material interest adverse to its business.

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PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

April 2, 2017

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 Company’s reportable segments:

			For the three months ended				For the nine months ended
			July 2, 2017		July 3, 2016		July 2, 2017		July 3, 2016
Total net sales:
	Georgia	$	1,766,845	$	1,481,336	$	3,715,226	$	2,888,325
	Missouri		347,658		337,804		618,565		587,279
	Consolidated	$	2,114,503	$	1,819,140	$	4,333,791	$	3,475,604
Income (loss) before income taxes:
	Georgia	$	1,134,511	$	894,443	$	2,078,277	$	1,366,769
	Missouri		42,034		65,610		(97,429)		(95,482)
	Segment total		1,176,545		960,053		1,980,848		1,271,287
	Corporate		(149,006)		(128,138)		(582,205)		(404,579)
	Other income (expense), net		82,472		1,978		87,131		6,000
	Interest expense		(49,799)		(52,144)		(150,819)		(163,375)
	Consolidated	$	1,060,212	$	781,749	$	1,334,955	$	709,333
							As of
							July 2, 2017		October 2, 2016
Total assets:
	Georgia					$	6,538,463	$	5,350,266
	Missouri						2,656,184		2,633,066
	Corporate						701,054		1,372,791
	Consolidated					$	9,895,701	$	9,356,123

NOTE 11. SUBSEQUENT EVENTS

In accordance with ASC 855-10 the Company has analyzed its operations subsequent to July 2, 2017 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.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

Management’s discussion and analysis of results of operations and financial condition (“MD&A”) is a supplement to the accompanying unaudited consolidated financial statements and provides additional information on the Company’s businesses, current developments, financial condition, cash flows and results of operations. The following discussion should be read in conjunction with our unaudited consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”) and with our Annual Report on Form 10-K for the fiscal year ended October 2, 2016.

Forward-Looking Statements

Except for the historical information contained herein, this Quarterly Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve risks and uncertainties, including, among other things, statements concerning: our business strategy; liquidity and capital expenditures; future sources of revenues and anticipated costs and expenses; and trends in industry activity generally. Such forward-looking statements include, among others, those statements including the words such as "may," "will," "should," "expect," "plan," "could," "anticipate," "intend," "believe," "estimate," "predict," "potential," "goal," or "continue" or similar language or by discussions of our outlook, plans, goals, strategy or intentions.

Our actual results may differ significantly from those projected in the forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including, but not limited to, the risks outlined under "RISK FACTORS" in this Quarterly Report, that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. For example, assumptions that could cause actual results to vary materially from future results include, but are not limited to: competition from other parks, weather conditions during our primary tourist season, the price of animal feed and the price of gasoline. Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, we cannot guarantee future results, levels of activity, performance or achievements.

The forward-looking statements we make in this Quarterly Report are based on management’s current views and assumptions regarding future events and speak only as of the date of this report. We assume no obligation to update any of these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements, except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission.

Overview

Through our wholly owned subsidiaries, we own and operate two regional theme parks and are in the business of acquiring, developing and operating local and regional theme parks and attractions in the United States. Our 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”).

Our Parks are open year round but experience increased seasonal attendance, typically beginning in the latter half of March through early September. On a combined basis, net sales for the third and fourth quarter of our last two fiscal years represented approximately 67% to 72% of annual net sales.

Our goal is to build a family of theme parks primarily through acquisitions of small, local and regional, privately owned existing parks and to develop a series of compatible, themed attractions. When evaluating possible acquisitions, we rely on the following primary criteria:

Properties that have an operating history; 

Properties that our management team believes have the potential to increase profits and operating efficiencies; and 

Properties where there is additional, underutilized land available for expansion of operations. 

We believe that acquisitions, if any, should not unnecessarily encumber the Company with additional debt that cannot be justified by current operations. By using a combination of equity, debt and other financing options, we intend to carefully monitor stockholder value in conjunction with the pursuit of growth.

We may also pursue contract management opportunities for themed attractions owned by third parties.

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We are committed to leveraging the strong operating model we have established at our Georgia Park, with a focus on increasing attendance, as well as increasing the average revenue generated per guest visit via concession and gift shop revenues.

Among our highest priorities is the continued improvement of the operating performance and profit at our Missouri Park. Since we acquired our Missouri Park in March 2008, we have worked to upgrade the Park’s physical facilities and dramatically improve its concessions. During our 2015 fiscal year, we completed the installation of five amusement park “kiddie” rides at our Missouri Park. These rides are targeted toward families with children between the ages of three and twelve years old. The addition of these rides is a continuation of our ongoing effort to improve the overall guest experience, as well as public perception of our Missouri Park, and it is our belief that the addition of these rides will help increase attendance and average spending per guest visit. We will continue to focus our efforts to promote our Missouri Park and make additional improvements as our capital budget allows. We expect that over the course of several years these efforts will ultimately yield favorable results.

On January 9, 2013, we completed a $3,752,000 loan transaction (the “Refinancing Loan”), the proceeds of which were used primarily to refinance the Company’s then-outstanding debt and fund $230,000 of new construction and renovations at our Parks. Over the last four fiscal years, the Refinancing Loan lowered our annual debt service payments by approximately $170,000, freeing up cash flow to fund operations and capital improvements at our Parks.

Our income from operations and operating cash flow have improved significantly over the past three fiscal years, including the first nine months of our 2017 fiscal year. These improvements are primarily attributable to a combination of increased attendance revenues and strong operating cost controls. The Refinancing Loan has also provided us with incremental cash flow margin. However, our current size and operating model leave us little room for error. Any future capital raised by us is likely to result in dilution to existing stockholders. It is possible that cash generated by, or available to, us may not be sufficient to fund our capital and liquidity needs for the near-term.

Our 2017 fiscal year will end on October 1, 2017 and will be comprised of 52 weeks. Our 2016 fiscal year ended on October 2, 2016 and was comprised of 53 weeks. The additional week in our 2016 fiscal year occurred within the three months ended January 2, 2016. As such, we will discuss Park attendance based net sales on both a reported, as well as a comparable 39-week, basis for the nine months ended July 2, 2017 as compared to the prior year. (Note, reported attendance based net sales for the three month periods ended July 2, 2017 and July 3, 2016 are already on a comparable 13-week basis).

Results of Operations For the Three Month Period Ended July 2, 2017 as Compared to Three Month Period Ended July 3, 2016

We manage our operations on an individual location basis. Discrete financial information is maintained for each Park and provided to our corporate 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. We use this measure of operating profit to gauge segment performance because we believe this measure is the most indicative of performance trends and the overall earnings potential of each reportable segment.

The following table shows our consolidated and segment operating results for the three month periods ended July 2, 2017 and July 3, 2016:

	Georgia Park		Missouri Park		Consolidated
	Fiscal 2017	Fiscal 2016	Fiscal 2017	Fiscal 2016	Fiscal 2017	Fiscal 2016
Total net sales	$1,766,845	$1,481,336	$347,658	$337,804	$2,114,503	$1,819,140
Segment income from operations	1,134,511	894,443	42,034	65,610	1,176,545	960,053
Segment operating margin %	64.2%	60.4%	12.1%	19.4%	55.6%	52.8%
Corporate expenses					(149,006)	(128,138)
Other income (expense), net					82,472	1,978
Interest expense					(49,799)	(52,144)
Income before income taxes					$1,060,212	$781,749

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Total Net Sales

On a reported basis, our total net sales for the three month period ended July 2, 2017 increased by $295,363, or 16.2%, to $2,114,503 versus the three month period ended July 3, 2016. Our Parks’ combined attendance based net sales increased by $291,336 or 16.0%, and animal sales increased $4,027.

Our Georgia Park’s net sales increased by $285,509 or 19.3%. Our Georgia Park’s attendance based net sales increased by $281,482 or 19.0%. Our Missouri Park’s attendance based net sales increased by $9,854 or 2.9%.

For the three month period ended July 2, 2017, attendance at our Georgia Park increased by 12.0%, while attendance at our Missouri Park decreased by 1.3%. We believe positive seasonal weather and overall favorable customer perception of our Georgia Park contributed to the higher attendance during the three month period ended July 2, 2017, while attendance at our Missouri Park for the same period was negatively impacted by unfavorable weather.

Segment Operating Margin

Our consolidated segment operating margin increased by $216,492, resulting in segment income from operations of $1,176,545 for the three month period ended July 2, 2017 compared to $960,053 for the three month period ended July 3, 2016. Our Georgia Park’s segment income was $1,134,511, resulting in an increase of $240,068, principally as a result of higher attendance based net sales, partially offset by higher cost of sales, and higher compensation and general operating expenses. Our Missouri Park generated segment income of $42,034, a decrease of $23,576, as higher overall operating expenses more than offset higher attendance based net sales.

Corporate Expenses and Other

Corporate spending increased by $20,868 to $149,006 during the three month period ended July 2, 2017, primarily due to higher legal fees.

Other Income (Expense), Net

Pursuant to a legal settlement, we received a settlement payment of $80,000 on April 20, 2017, which has been included in other income. For additional information, see “NOTE 9. COMMITMENTS AND CONTINGENCIES” of the Notes to the Consolidated Financial Statements (Unaudited).

Interest Expense

Interest expense for the three month period ended July 2, 2017 was $49,799, a decrease of $2,345 compared with the three month period ended July 3, 2016, as a result of lower average term loan borrowing and no seasonal borrowing during the 2017 fiscal year.

Income Taxes

For the fiscal year ending October 1, 2017, we expect to generate pre-tax income and to record a tax provision at an effective rate of approximately 38%. As such, we recorded a tax provision of $406,000 for the three month period ended July 2, 2017.

Our cumulative Federal net operating loss carry-forward was approximately $1,913,000 at October 2, 2016 and will expire beginning in the year 2026. For the fiscal year ending October 1, 2017, we expect to utilize a portion of its Federal net tax operating loss carry-forwards to offset regular Federal cash tax due in its 2017 fiscal year. However, the Company will likely owe Federal alternative minimum tax for its 2017 fiscal year.

For additional information, see “NOTE 8. INCOME TAXES” of the Notes to the Consolidated Financial Statements (Unaudited).

Net Income and Income Per Share

During the three month period ended July 2, 2017, we generated net income of $654,212 or $0.01 per basic share and per fully diluted share, compared to net income of $731,649 or $0.01 per basic share and per fully diluted share, for the three month period ended July 3, 2016, resulting in an decrease of $77,437. Two significant one-time items impacted this year-over-year net income comparison, an increase in our income tax provision of $355,900, partially offset by the $80,000 one-time gain from the legal settlement. Excluding the $80,000 one-time gain from the legal settlement for the three month period ended July 2, 2017 and applying a comparable effective income tax rate to the three month period ended July 3, 2016, our net income for the three month period ended July 2, 2017 would have increased by approximately $122,600. The primary drivers for this improvement are a $240,068 increase in operating income for our Georgia Park and a $2,345 reduction in interest expense, partially offset by a $75,800 increase in our normalized income tax provision, a $23,576 decrease in the operating income for our Missouri Park and a $20,868 increase in Corporate spending.

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Results of Operations For the Nine Month Period Ended July 2, 2017 as Compared to Nine Month Period Ended July 3, 2016

The following table shows our consolidated and segment operating results for the nine month periods ended July 2, 2017 and July 3, 2016:

	Georgia Park		Missouri Park		Consolidated
	Fiscal 2017	Fiscal 2016	Fiscal 2017	Fiscal 2016	Fiscal 2017	Fiscal 2016
Total net sales	$3,715,226	$2,888,325	$618,565	$587,279	$4,333,791	$3,475,604
Segment income from operations	2,078,277	1,366,769	(97,429)	(95,482)	1,980,848	1,271,287
Segment operating margin %	55.9%	47.3%	-15.8%	-16.3%	45,7%	36.6%
Corporate expenses					(582,205)	(404,579)
Other income (expense), net					87,131	6,000
Interest expense					(150,819)	(163,375)
Income before income taxes					$1,334,955	$709,333

Total Net Sales

On a reported basis, our total net sales for the nine month period ended July 2, 2017 increased by $858,187, or 24.7%, to $4,333,791 versus the nine month period ended July 3, 2016. On a reported basis, our Parks’ combined attendance based net sales increased by $800,380 or 23.1%, and animal sales increased $57,807. On a comparable 39-week basis, our Parks’ combined attendance based net sales increased by $832,129 or 24.3%.

Our Georgia Park’s reported net sales increased by $826,901 or 28.6%. Our Georgia Park’s attendance based net sales increased by 27.3% and 28.3%, on a reported and comparable 39-week basis, respectively. Our Missouri Park’s reported net sales increased by $31,286 or 5.3%. Our Missouri Park’s attendance based net sales increased by 2.0% and 3.9%, on a reported and comparable 39-week basis, respectively.

On a comparable 39-week basis for the nine month period ended July 2, 2017, attendance at our Georgia Park increased by 20.1%, while attendance at our Missouri Park decreased 2.3%. We believe positive seasonal weather and overall favorable customer perception of our Georgia Park contributed to the higher attendance during the 39-week comparable period ended July 2, 2017, while attendance at our Missouri Park for the same period was negatively impacted by unfavorable weather.

Segment Operating Margin

Our consolidated segment operating margin increased by $709,561, resulting in segment income from operations of $1,980,848 for the nine month period ended July 2, 2017 compared to $1,271,287 for the nine month period ended July 3, 2016. Our Georgia Park’s segment income was $2,078,277, resulting in an increase of $711,508, principally as a result of higher attendance based net sales and higher animal sales, partially offset by higher cost of sales, and higher compensation and general operating expenses. The segment loss for our Missouri Park was $97,429, a decrease of $1,947, primarily as a result of higher general operating expenses, largely offset by higher animal sales and higher attendance based net sales.

Corporate Expenses and Other

Corporate spending increased by $177,626 to $582,205 during the nine month period ended July 2, 2017, primarily due to higher legal fees and compensation expense.

Other Income (Expense), Net

Pursuant to a legal settlement, we received a settlement payment of $80,000 on April 20, 2017, which has been included in other income. For additional information, see “NOTE 9. COMMITMENTS AND CONTINGENCIES” of the Notes to the Consolidated Financial Statements (Unaudited).

Interest Expense

Interest expense for the nine month period ended July 2, 2017 was $150,819, a decrease of $12,556 compared with the nine month period ended July 3, 2016, as a result of lower average term loan borrowing and no seasonal borrowing during the 2017 fiscal year.

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Income Taxes

For the fiscal year ending October 1, 2017, we expect to generate pre-tax income and to record a tax provision at an effective rate of approximately 38%. As such, we recorded a tax provision of $510,000 for the nine month period ended July 2, 2017.

Our cumulative Federal net operating loss carry-forward was approximately $1,913,000 at October 2, 2016 and will expire beginning in the year 2026. For the fiscal year ending October 1, 2017, we expect to utilize a portion of its Federal net tax operating loss carry-forwards to offset regular Federal cash tax due in its 2017 fiscal year. However, the Company will likely owe Federal alternative minimum tax for its 2017 fiscal year.

For additional information, see “NOTE 8. INCOME TAXES” of the Notes to the Consolidated Financial Statements (Unaudited).

Net Income and Income Per Share

During the nine month period ended July 2, 2017, we generated net income of $824,955 or $0.01 per basic share and per fully diluted share, compared to net income of $653,833 or $0.01 per basic share and per fully diluted share, for the nine month period ended July 3, 2016, resulting in an increase of $171,122. Two significant one-time items impacted this year-over-year net income comparison, a $454,500 increase in our provision for income taxes and other income of $80,000 from the legal settlement. Excluding the $80,000 one-time gain from the legal settlement for the nine month period ended July 2, 2017 and applying a comparable effective income tax rate to the nine month period ended July 3, 2016, our net income for the nine month period ended July 2, 2017 would have increased by approximately $338,200. The primary drivers for this improvement are a $711,508 increase in operating income for our Georgia Park and a $12,556 reduction in interest expense, partially offset by $207,400 increase in our normalized income tax provision, a $177,626 increase in Corporate spending and a $1,947 decrease in the operating loss of our Missouri Park

Financial Condition, Liquidity and Capital Resources

Financial Condition and Liquidity

Our primary sources of liquidity are cash generated by operations and borrowings under our loan agreements. Our slow season starts after Labor Day in September and runs until Spring Break, which typically begins toward the end of March. The first and second quarters of our fiscal year have historically generated negative cash flow and require us to borrow to fund operations and prepare our Parks for the busy season during the third and fourth quarters of our fiscal year.

We believe that our performance has improved to the point that annual cash flow from operations will be sufficient to fund operations, make debt-service payments and spend modestly on capital improvements in the near-term. During the next twelve months, our focus will continue on increasing Park attendance revenues. Any slowdown in revenue or unusual capital outlays may require us to seek additional capital.

Our working capital was $2.44 million as of July 2, 2017, compared to $1.40 million as of October 2, 2016. This increase in working capital primarily reflects strong operating cash flow offset by capital expenditures and scheduled payments on our term debt during the first nine months of our 2017 fiscal year.

Total loan debt, including current maturities, as of July 2, 2017 was $3.15 million compared to $3.22 million as of October 2, 2016. The decrease in total loan debt was a result of scheduled payments against our term loan during the nine month period ended July 2, 2017. Our LOC balance was $0 as of July 2, 2017 and October 2, 2016, respectively.

As of July 2, 2017, we had equity of $6.35 million and total loan debt of $3.15 million, resulting in a debt to equity ratio of 0.50 to 1.0. Our debt to equity ratio was 0.58 to 1.0 as of October 2, 2016.

Operating Activities

Net cash provided by operating activities was $1,316,596 for the nine month period ended July 2, 2017, compared to $995,075 for the nine month period ended July 3, 2016. Excluding the $372,416 of restricted cash paid out for the Harper Judgment Award (as further described in PART II, ITEM 1-“LEGAL PROCEEDINGS” herein) and the $401,719 deferred tax asset utilization, cash flow provided by operating activities improved by $292,218 for the nine month period ended July 2, 2017, primarily as a result of an increase in net income and lower working capital requirements.

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Investing Activities

Net cash provided by investing activities was $65,855 for the nine month period ended July 2, 2017, compared to net cash used in investing activities of $277,042 for the nine month period ended July 3, 2016. Excluding the one-time reduction in restricted cash associated with the payout of the Harper Judgment Award, investing activities in property and equipment were $390,637 for the nine month period ended July 2, 2017, compared to $277,042 in the comparable period in the prior year, resulting in an increase of $113,595.

Financing Activities

Net cash used in financing activities was $79,564 for the nine month period ended July 2, 2017, compared to $89,384 for the nine month period ended July 3, 2016, with the total for each period reflecting scheduled payments on our term loan.

Subsequent Events

None

Off Balance Sheet Arrangements

We do not have any off balance sheet arrangements that are reasonably likely to have a current or future effect on our financial condition, results of operations, liquidity or capital expenditures.

Critical Accounting Policies and Estimates

The preceding discussion and analysis of our consolidated financial condition and results of operations should be read in conjunction with our unaudited consolidated financial statements included elsewhere in this Quarterly Report. Our significant accounting policies are set forth in “NOTE 2. SIGNIFICANT ACCOUNTING POLICIES” of the Notes to the Consolidated Financial Statements (Unaudited) included in this Quarterly Report, which should be reviewed as they are integral to understanding results of operations and financial position. The Parks! America, Inc. Annual Report on Form 10-K for the fiscal year ended October 2, 2016 includes additional information about us, our operations, our financial condition, our critical accounting policies and accounting estimates, and should be read in conjunction with this Quarterly Report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable

ITEM 4. CONTROLS AND PROCEDURES

Parks! America, Inc. (the “Registrant”) maintains “controls and procedures,” as such term is defined under the Securities Exchange Act of 1934, as amended (“the Exchange Act”) in Rule 13a-15(e) promulgated thereunder, that are designed to ensure that information required to be disclosed in the Registrant’s Exchange Act filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, the Registrant’s management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and in reaching a reasonable level of assurance, the Registrant’s management was necessarily required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

With the participation of its principal executive officer and principal financial officer of the Registrant, the Registrant’s management has evaluated the effectiveness of the Registrant’s disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Exchange Act) as of the end of the fiscal quarter covered by this Quarterly Report. Based upon the evaluation, the Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures were effective at a reasonable assurance level.

In addition, there were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 13a-15(e) promulgated under the Exchange Act) that occurred during the Registrant’s fiscal quarter ended July 2, 2017 that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

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PART II

ITEM 1. LEGAL PROCEEDINGS

Background

In September 2009, we filed an action against Larry Eastland, the Company’s 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). We brought this action to obtain a Temporary Restraining Order and injunctive relief against Mr. Eastland and his related companies as to their 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, we amended our complaint against the original 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 (LEA Capital Advisors, LLC and the original defendants are collectively referred to herein as 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 regard to the Company’s purchase of TempSERV on September 30, 2007, its subsequent re-conveyance of TempSERV to Computer Contact Service, Inc. as of January 1, 2009, and other conduct of management at that time. We were seeking damages in excess of $1.8 million.

Discovery was conducted on the claims between the parties, after which the Harper Defendants filed a Motion for Summary Judgment asking that the claims against them be dismissed and that the counterclaims asserted by the Harper Defendants against the Company be granted. After briefing and argument, the Court granted summary judgment in favor of the Harper Defendants. Because one of the contracts at issue contained a legal fee provision, the Harper Defendants filed a motion seeking to recover legal fees and costs. On October 24, 2014, the Court granted the Harper Defendants’ motion in part and ordered the Company to pay $304,328 in costs and attorney’s fees to the Harper Defendants.

We appealed the summary judgment orders and the award of costs and attorney’s fees. On July 28, 2016, the Supreme Court of the State of Nevada issued an order mostly affirming the Eighth Judicial District Court’s summary judgment rulings and award of attorney’s fees and costs in favor of the Harper Defendants. After exhausting the options to further pursue our action against the Harper Defendants, we reached a final settlement with the Harper Defendants totaling $372,416, inclusive of additional attorney’s fees, costs and interest (the “Harper Judgment Award”), which was paid on November 8, 2016.

The separate claims against the Eastland Defendants then remained for trial in Nevada District Court.

Settlement with the Eastland Defendants

We entered into a settlement and release agreement dated as of March 30, 2017 (the “Eastland Settlement Agreement”) with certain the Eastland Defendants to settle the District Court Action. Pursuant to the Eastland Settlement Agreement, the Eastland Defendants agreed to make a settlement payment of $80,000 to the Company and assign 10,000 shares of the Company’s common stock beneficially owned by one of the Eastland Defendants to the Company (the “Settlement Shares”), and we consented to the sale of 10,010,000 shares of common stock beneficially owned by the Eastland Defendants to Nicholas Parks (the “NP Transaction”). On April 21, 2017, the Company received the $80,000 settlement payment and the Settlement Shares. A Stipulation and Order to Dismiss the Litigation with Prejudice was filed on April 24, 2017.

As part of the NP Transaction, we entered into a Settlement Agreement and Release with Nicholas Parks, dated as of March 30, 2017 (the “NP Settlement Agreement”). This Agreement also has been released from escrow and is effective. As a result of the NP Transaction, Nicholas Parks holds shares representing approximately 13.4% of the outstanding common stock of the Company.

Other Matters

Except as described above, we are 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 our directors, officers or affiliates is involved in a proceeding adverse to its business or has a material interest adverse to its business.

20

ITEM 1A. RISK FACTORS

You should read the MD&A together with our unaudited consolidated financial statements and related notes, each included elsewhere in this Quarterly Report, in conjunction with the Parks! America, Inc. Annual Report on Form 10-K for the fiscal year ended October 2, 2016. Some of the information contained in the MD&A or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategies for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "RISK FACTORS" below for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in this report. If any of the following risks actually occur, our business, financial condition and results of operations could be adversely affected.

Risk Factors Relating to Our Business:

The Theme Park Industry is highly competitive and we may be unable to compete effectively.

The theme park industry is highly competitive, highly fragmented, rapidly evolving, and subject to technological change and intense marketing by providers with similar products. One of our competitors for attracting general recreation dollars, Callaway Gardens, is located within five miles of our Georgia Park. Branson, Missouri is located just 45 minutes from our Missouri Park. Many of our current competitors are significantly larger and have substantially greater market presence as well as greater financial, technical, operational, marketing and other resources and experience than we have. In the event that such a competitor expends significant sales and marketing resources in one or several markets we may not be able to compete successfully in such markets. We believe that competition will continue to increase, potentially placing downward pressure on prices. Such pressure could adversely affect our gross margins if we are not able to reduce costs commensurate with such price reductions. In addition, the pace of technological change makes it impossible for us to predict whether we will face new competitors using different technologies to provide the same or similar products offered or proposed to be offered by us. If our competitors were to provide better and more cost effective products, our business could be materially and adversely affected.

We face strong competition from numerous entertainment alternatives.

In addition to competing with other themed and amusement parks, our venues compete with other types of recreational venues and entertainment alternatives, including but not limited to movies, sports attractions, vacation travel and video games. There can be no assurance that we will successfully differentiate ourselves from these entertainment alternatives or that consumers will consider our entertainment offerings to be more appealing than those of our competitors. The increasing availability and quality of technology-based entertainment has provided families with a wider selection of entertainment alternatives in their homes, including home entertainment units, in-home and online gaming, as well as on-demand streaming video and related access to various forms of entertainment. In addition, traditional theme parks have been able to reduce the cost and increase the variety of their attractions by implementing technologies that cannot be readily incorporated by wild animal attractions such as our Georgia and Missouri Parks.

The suspension or termination of any of our business licenses may have a negative impact on our business.

We maintain a variety of business licenses issued by federal, state and local government agencies that are required to be renewed periodically. We cannot guarantee that we will be successful in renewing all of our licenses on a periodic basis. The suspension, termination or expiration of one or more of these licenses could have a significant adverse affect on our revenues and profits. In addition, any changes to the licensing requirements for any of our licenses could affect our ability to maintain the licenses.

Our insurance coverage may not be adequate to cover all possible losses that we could suffer, and our insurance costs may increase.

Companies engaged in the theme park business may be sued for substantial damages in the event of an actual or alleged accident. An accident occurring at our Parks or at competing parks may reduce attendance, increase insurance premiums, and negatively impact our operating results. Our properties contain drive-through, safari style animal parks, and there are inherent risks associated with allowing the public to interact with animals. Although we carry liability insurance to cover this risk, there can be no assurance that our coverage will be adequate to cover liabilities, or that we will be able to afford or obtain adequate coverage should a catastrophic incident occur.

We currently have $5.0 million of liability insurance per occurrence and in aggregate, per Park. We will continue to use reasonable commercial efforts to maintain policies of liability, fire and casualty insurance sufficient to provide reasonable coverage for risks arising from accidents, fire, weather, other acts of God, and other potential casualties. There can be no assurance that we will be able to obtain adequate levels of insurance to protect against suits and judgments in connection with accidents or other disasters that may occur in our Parks.

21

We may not identify or complete acquisitions in a timely, cost-effective manner, if at all.

Our business plan is predicated upon the acquisition of additional local or regional theme parks and attractions, and upon the expansion of our current facilities and offerings. However, there can be no assurance that we will be successful in acquiring and operating additional local or regional theme parks and attractions. Competition for acquisition opportunities in the theme park industry is intense as there are a limited number of parks within the United States that could reasonably qualify as acquisition targets for us. Our acquisition strategy is dependent upon, among other things, our ability to: identify acquisition opportunities; obtain debt and equity financing; and obtain necessary regulatory approvals. Our ability to pursue our acquisition strategy may be hindered if we are not able to successfully identify acquisition targets or obtain the necessary financing or regulatory approvals, including but not limited to those arising under federal and state antitrust and environmental laws.

Significant amounts of additional financing may be necessary for the implementation of our Business Plan.

We may require additional debt and equity financing to pursue our business plan. There can be no assurance that we will be successful in obtaining additional financing. Lack of additional funding could force us to substantially curtail our expansion plans. Furthermore, the issuance by the Company of any additional securities would dilute the ownership of existing stockholders and may affect the price of our common stock.

Our ownership of real property subjects us to environmental regulation, which creates uncertainty regarding future environmental expenditures and liabilities.

We may be required to incur costs to comply with environmental requirements, such as those relating to discharges to air, water and land; the handling and disposal of solid and hazardous waste; and the cleanup of properties affected by hazardous substances. Under these and other environmental requirements we may be required to investigate and clean up hazardous or toxic substances or chemical releases at one of our properties. As an owner or operator, we could also be held responsible to a governmental entity or third party for property damage, personal injury and investigation and cleanup costs incurred by them in connection with any contamination. Environmental laws typically impose cleanup responsibility and liability without regard to whether the owner or operator knew of or caused the presence of the contaminants. The liability under environmental laws has been interpreted to be joint and several unless the harm is divisible and there is a reasonable basis for allocation of the responsibility. The costs of investigation, remediation or removal of those substances may be substantial, and the presence of those substances, or the failure to remediate a property properly, may impair our ability to use our property. We are not currently aware of any material environmental risks regarding our properties. However, we may be required to incur costs to remediate potential environmental hazards or to mitigate environmental risks in the future.

We are dependent upon the services of our Executive Officers and consultants.

Our success is heavily dependent on the continued active participation of our executive officers. Loss of the services of one or more of these officers could have a material adverse effect upon our business, financial condition or results of operations. In particular, we place substantial reliance upon the efforts and abilities of Dale Van Voorhis, Chairman of the Board of Directors and Chief Executive Officer of the Company and Jim Meikle, Chief Operating Officer and a Director of the Company, and President of Wild Animal – Missouri and Wild Animal – Georgia. The loss of Mr. Van Voorhis’ or Mr. Meikle’s services could have a serious adverse effect on our business, operations, revenues or prospects.

Further, our success and achievement of our growth plans depend on our ability to recruit, hire, train and retain other highly qualified technical and managerial personnel. Competition for qualified employees among companies in the theme park industry is intense, and the loss of any such persons, or an inability to attract, retain and motivate any additional highly skilled employees required for the expansion of the Company’s activities, could have a materially adverse effect on the Company. The inability of the Company to attract and retain the necessary personnel, and consultants and advisors could have a material adverse effect on the Company’s business, financial condition or results of operations.

Risk Factors Relating to Our Common Stock:

Our Common Stock is subject to the “penny stock” rules of the SEC and the trading market in our Common Stock is limited, which makes transactions in our Common Stock cumbersome and may reduce the value of an investment in our Common Stock.

Our common stock is considered a "penny stock" and the sale of our stock by you will be subject to the "penny stock rules" of the SEC. The penny stock rules require broker-dealers to take steps before making any penny stock trades in customer accounts. As a result, the market for our shares could be illiquid and there could be delays in the trading of our stock, which would negatively affect your ability to sell your shares and could negatively affect the trading price of your shares.

22

We do not expect to pay dividends for some time, if at all.

As of the date of this report, no cash dividends have been paid on our common stock. We expect that any income received from operations will be devoted to our future operations and growth, as well as to service our debt. We do not expect to pay cash dividends in the near future. Any future determination as to the payment of dividends on our common stock will be at the discretion of our Board of Directors and will depend on our earnings, operating and financial condition, capital requirements and other factors deemed relevant by our Board of Directors. The provisions of credit agreements, which we may enter into from time to time, may also restrict the declaration of dividends on our common stock.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS

Exhibit Number	Description of Exhibit
31.1	Certification by Chief Executive Officer as required by Rule 13a-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification by Chief Financial Officer as required by Rule 13a-14 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C.§ 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Certification of Chief Financial Officer pursuant to 18 U.S.C.§ 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

23

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	PARKS! AMERICA, INC.
August 9, 2017	By: /s/ Dale Van Voorhis Dale Van Voorhis Chief Executive Officer (Principal Executive Officer)

24

EX-31.1

Exhibit 31.1 Section 302 Certification

EX-31.2

Exhibit 31.2 Section 302 Certification

EX-32.1

Exhibit 32.1

CERTIFICATION

PURSUANT TO 18 U.S.C SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of Parks! America, Inc. (the "Company"), does hereby certify, to such officer's knowledge, that:

The Quarterly Report on Form 10-Q for the quarter ended July 2, 2017 (the “Form 10-Q”) of the Company fully complies with the requirement of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 9, 2017

/s/ Dale Van Voorhis

Dale Van Voorhis

Chief Executive Officer

(Principal Executive Officer)

Parks! America, Inc.

Dated: August 9, 2017

/s/ Todd R. White

Todd R. White

Chief Financial Officer

(Principal Financial Officer)

Parks! America, Inc.

A signed original of this written statement required by Section 906 has been provided to Parks! America, Inc. and will be retained by Parks! America, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

1

XML

Document and Entity Information - shares	9 Months Ended
	Jul. 02, 2017	Aug. 07, 2017
Details
Registrant Name	PARKS AMERICA, INC
Registrant CIK	0001297937
SEC Form	10-Q
Period End date	Jul. 02, 2017
Fiscal Year End	--09-30
Trading Symbol	prka
Tax Identification Number (TIN)	910626756
Number of common stock shares outstanding		74,671,537
Filer Category	Smaller Reporting Company
Current with reporting	Yes
Voluntary filer	No
Well-known Seasoned Issuer	No
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Entity Incorporation, State Country Name	Nevada
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
City Area Code	(706)
Local Phone Number	663-8744

XML

Consolidated Balance Sheets - USD ($)		Jul. 02, 2017	Oct. 02, 2016
ASSETS
Cash - unrestricted		$ 2,785,664	$ 1,482,777
Cash - restricted	[1]	0	456,492
Inventory		133,573	107,573
Prepaid expenses		34,066	87,760
Total current assets		2,953,303	2,134,602
Property and equipment, net		6,555,394	6,432,897
Intangible assets, net		2,400	3,000
Deferred tax asset		375,405	777,124
Other assets		9,199	8,500
Total assets		9,895,701	9,356,123
Liabilities
Accounts payable		42,330	24,106
Other current liabilities		355,765	231,392
Accrued judgment award	[2]	0	372,416
Current portion of long-term debt, net		120,113	104,652
Total current liabilities		518,208	732,566
Long-term debt, net		3,026,384	3,113,603
Total liabilities		3,544,592	3,846,169
Stockholders' equity
Common Stock, Value, Issued		74,671	74,531
Capital in excess of par		4,825,666	4,809,606
Treasury stock		(3,250)	(3,250)
Retained earnings		1,454,022	629,067
Total stockholders' equity		6,351,109	5,509,954
Total liabilities and stockholders' equity		$ 9,895,701	$ 9,356,123

[1] Note 3.

[2] Note 9.

XML

Consolidated Balance Sheets - Parenthetical - $ / shares	Jul. 02, 2017	Oct. 02, 2016
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	74,671,537	74,531,537
Common Stock, Shares, Outstanding	74,671,537	74,531,537

XML

Consolidated Statements of Operations - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Jul. 02, 2017	Jul. 03, 2016	Jul. 02, 2017	Jul. 03, 2016
Details
Net sales	$ 2,110,476	$ 1,819,140	$ 4,259,657	$ 3,459,277
Sale of animals	4,027	0	74,134	16,327
Total net sales	2,114,503	1,819,140	4,333,791	3,475,604
Cost of sales	189,151	182,141	440,245	390,078
Selling, general and administrative	808,363	717,261	2,226,862	1,960,395
Depreciation and amortization	89,450	85,200	268,350	255,800
(Gain) loss on disposal of operating assets, net	0	2,623	(309)	2,623
Income from operations	1,027,539	831,915	1,398,643	866,708
Other income (expense), net	82,472	1,978	87,131	6,000
Interest expense	(49,799)	(52,144)	(150,819)	(163,375)
Income before income taxes	1,060,212	781,749	1,334,955	709,333
Income tax provision	406,000	50,100	510,000	55,500
Net income	$ 654,212	$ 731,649	$ 824,955	$ 653,833
Income per share - basic and diluted	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Weighted average shares outstanding (in 000's) - basic and diluted	74,674	74,531	74,632	74,488

XML

Consolidated Statements Changes in Stockholders' Equity - USD ($)	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings
Stockholders' Equity at Sep. 27, 2015	$ 3,600,147	$ 74,381	$ 4,801,506	$ (3,250)	$ (1,272,490)
Shares Outstanding at Sep. 27, 2015		74,381,537
Stock Issued During Period, Value, New Issues	8,250	$ 150	8,100	0	0
Stock Issued During Period, Shares, New Issues		150,000
Net Income (Loss)	1,901,557	$ 0	0	0	1,901,557
Stockholders' Equity at Oct. 02, 2016	5,509,954	$ 74,531	4,809,606	(3,250)	629,067
Shares Outstanding at Oct. 02, 2016		74,531,537
Stock Issued During Period, Value, New Issues	16,200	$ 150	16,050	0	0
Stock Issued During Period, Shares, New Issues		150,000
Stock Redeemed or Called During Period, Value	0	$ (10)	10	0	0
Stock Redeemed or Called During Period, Shares		(10,000)
Net Income (Loss)	824,955	$ 0	0	0	824,955
Stockholders' Equity at Jul. 02, 2017	$ 6,351,109	$ 74,671	$ 4,825,666	$ (3,250)	$ 1,454,022
Shares Outstanding at Jul. 02, 2017		74,671,537

XML

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Jul. 02, 2017	Jul. 03, 2016
OPERATING ACTIVITIES:
Net income	$ 824,955	$ 653,833
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization expense	268,350	255,800
Interest expense - loan fee amortization	7,806	7,806
(Gain) loss on disposal of assets	(309)	2,623
Stock-based compensation	16,200	8,250
Changes in assets and liabilities
(Increase) decrease in inventory	(26,000)	3,900
(Increase) decrease in prepaid expenses	53,694	45,878
Increase (decrease) in accounts payable	18,224	(32,094)
Increase (decrease) in other current liabilities	124,373	49,079
Increase (decrease) in accrued judgment award	(372,416)	0
(Increase) decrease in deferred tax asset	401,719	0
Net cash provided by operating activities	1,316,596	995,075
INVESTING ACTIVITIES:
Acquisition of property and equipment	(390,637)	(277,042)
(Increase) decrease in restricted cash	456,492	0
Net cash provided by (used in) investing activities	65,855	(277,042)
FINANCING ACTIVITIES:
Proceeds from lines of credit and related party borrowings	0	220,000
Repayment of lines of credit and related party borrowings	0	(220,000)
Payments on notes payable	(79,564)	(89,384)
Net cash used in financing activities	(79,564)	(89,384)
Net increase in cash	1,302,887	628,649
Cash at beginning of period	1,482,777	563,096
Cash at end of period	2,785,664	1,191,745
Supplemental Cash Flow Information:
Cash paid for interest	131,192	150,220
Cash paid for income taxes	$ 116,770	$ 76,525

XML

NOTE 1. ORGANIZATION

9 Months Ended

Jul. 02, 2017

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 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”). The Company acquired the Georgia Park on June 13, 2005, and the Missouri Park on March 5, 2008.

The Parks are open year round but experience increased seasonal attendance, typically beginning in the latter half of March through early September. On a combined basis, net sales for the third and fourth quarter of the last two fiscal years represented approximately 67% to 72% of annual net sales.

XML

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Jul. 02, 2017

Notes

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation: The Company’s unaudited consolidated financial statements for the three months and nine months ended July 2, 2017 and July 3, 2016 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 audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 2, 2016.

Principles of Consolidation: The accompanying consolidated financial statements include the accounts of the Company and its wholly owned 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 2017 fiscal year, October 1 will be the closest Sunday, and for the 2016 fiscal year, October 2 was the closest Sunday. The 2017 fiscal year will be comprised of 52-weeks, while the 2016 fiscal year was comprised of 53-weeks. 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.

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 theme parks are a payment upfront business; therefore, the Company typically carries little or no accounts receivable. The Company had no accounts receivable as of July 2, 2017 and October 2, 2016, respectively.

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 thirty-nine years. A summary is included below.

		July 2, 2017		October 2, 2016	Depreciable Lives
Land	$	2,507,180	$	2,507,180	not applicable
Ground improvements		893,433		824,427	7 - 25 years
Buildings and structures		2,882,285		2,882,285	10 - 39 years
Animal shelters and habitats		1,270,224		1,219,023	10 - 39 years
Park animals		727,705		642,769	5 - 10 years
Equipment - concession and related		221,493		221,493	3 - 15 years
Equipment and vehicles - yard and field		545,381		512,445	3 - 15 years
Vehicles - buses and rental		209,626		186,932	3 - 5 years
Rides and entertainment		181,867		181,867	5 - 10 years
Furniture and fixtures		60,485		60,485	5 - 10 years
Projects in process		124,974		-
Property and equipment, cost		9,624,653		9,238,906
Less accumulated depreciation		(3,069,259)		(2,806,009)
Property and equipment, net	$	6,555,394	$	6,432,897

Intangible assets: Intangible assets consist of franchising fees, which are reported at cost and are being amortized over a period of 60 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.

Other Current Liabilities: The following is a breakdown of other current liabilities:

		July 2, 2017		October 2, 2016
Accrued sales taxes	$	53,911	$	28,928
Accrued wages and payroll taxes		47,821		23,814
Accrued income taxes		37,400		45,426
Deferred revenue		33,798		16,532
Accrued property taxes		29,174		37,408
Other accrued liabilities		153,661		79,284
Other current liabilities	$	355,765	$	231,392

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 as of the balance sheet date presented.

Revenue Recognition: The Company’s major source of income is from theme park admissions. Theme park revenues from admission fees are generally recognized upon receipt of payment at the time of the customers’ visit to the parks. Theme park revenues from advance online ticket purchases are deferred until the customers’ visit to the parks. Short-term seasonal passes are sold primarily during the spring and summer seasons, are negligible to our results of operations and are not material. 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.

Advertising and Market Development: The Company expenses advertising and marketing costs as incurred.

Stock Based Compensation: The Company recognizes 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 of its common stock to members of 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.

Basic and diluted net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the 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: Except as noted in “NOTE 4. LONG-TERM DEBT”, 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.

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NOTE 3. RESTRICTED CASH

9 Months Ended

Jul. 02, 2017

Notes

NOTE 3. 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”) and on July 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). On November 8, 2016, $372,416 was paid out to the Harper Defendants against the Letter of Credit as a final settlement of the judgment and award of costs. As a result, the balance of the security amount, net of fees, was no longer restricted and on November 17, 2016 approximately $79,300 was returned to the Company as unrestricted funds.

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NOTE 4. LONG-TERM DEBT

9 Months Ended

Jul. 02, 2017

Notes

NOTE 4. 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 is secured by substantially all the assets of the Company and its wholly owned subsidiaries. The Refinancing Loan bears interest at the rate of Prime Rate plus 2.50%, resulting in a rate of 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.

		July 2, 2017		October 2, 2016
Refinancing Loan principal outstanding	$	3,286,943	$	3,366,507
Less: unamortized debt closing costs		(140,446)		(148,252)
Gross long-term debt		3,146,497		3,218,255
Less current portion of long-term debt, net of unamortized debt closing costs		(120,113)		(104,652)
Long-term debt	$	3,026,384	$	3,113,603

As of July 2, 2017, the scheduled future principal maturities by fiscal year are as follows:

2017	$	31,932
2018		132,406
2019		140,223
2020		148,502
2021		157,270
thereafter		2,676,610
Total	$	3,286,943

Interest expense of $49,799 and $52,144 for the three month period ended July 2, 2017 and July 3, 2016, respectively, includes $2,602 of amortization of debt closing costs in each period. Interest expense of $150,819 and $163,375 for the nine month period ended July 2, 2017 and July 3, 2016, respectively, includes $7,806 of amortization of debt closing costs in each period.

Effective October 3, 2016, the Company retroactively adopted the requirements of ASU No. 2015-03, Interest – Imputation of Interest (Subtopic 835-50): Simplifying the Presentation of Debt Issuance Costs, to present debt issuance costs as a reduction of the carrying amount of the related debt rather than an asset. Long-term debt and the current portion long-term debt as of October 2, 2016 were previously reported on the balance sheet as $3,251,447 and $115,060, respectively, with the associated $148,252 of unamortized debt closing costs reported in intangible assets. Amortization of debt closing costs of $2,602 and $7,806 for the three month and nine month periods ended July 2, 2017 and July 3, 2016, respectively, is reported as interest expense in the Consolidated Statements of Operations. Such amortization of debt closing costs was previously reported as amortization expense in the Consolidated Statement of Operations for the three month and nine month periods ended July 3, 2016, respectively.

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NOTE 5. LINES OF CREDIT

9 Months Ended

Jul. 02, 2017

Notes

NOTE 5. LINES OF CREDIT

NOTE 5. LINES OF CREDIT

The Company maintains a $350,000 line of credit loan (the “LOC”) from CB&T for working capital purposes. This LOC has an initial term of seven years, ending on January 8, 2020, and is subject to the satisfactory performance by the Company. The LOC interest rate is tied to the prime rate and was 6.00% as of July 2, 2017, with 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 July 2, 2017 and October 2, 2016, respectively, there was no outstanding balance against the LOC. When applicable, all advances on the Company’s LOC are recorded as current liabilities.

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NOTE 6. STOCKHOLDERS' EQUITY

9 Months Ended

Jul. 02, 2017

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 issuance. On December 20, 2016, 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 $0.108 per share or $16,200, which was reported as an expense in the first quarter of the 2017 fiscal year. On December 18, 2015, the Company awarded 150,000 shares of its common stock to six Directors for their service on the Board of Directors at a fair market value of $0.055 per share or $8,250, which was reported as an expense in the first quarter of the 2016 fiscal year.

Officers, Directors and their controlled entities own approximately 55.6% of the outstanding common stock of the Company as of July 2, 2017.

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NOTE 7. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES

9 Months Ended

Jul. 02, 2017

Notes

NOTE 7. 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. Effective June 1, 2016, the Company and Mr. Van Voorhis entered into the “2016 Van Voorhis Employment Agreement”. Pursuant to the 2016 Van Voorhis Employment Agreement, Mr. Van Voorhis receives an initial base annual compensation in the amount of $90,000 per year, subject to annual review by the Board of Directors. The 2016 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, 2017, the Company and Mr. Meikle entered into the “2017 Meikle Employment Agreement”. Pursuant to the 2017 Meikle Employment Agreement, Mr. Meikle receives an initial base annual compensation in the amount of $135,000 per year, subject to annual review by the Board of Directors. The 2017 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 April 2, 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 annual compensation of $50,000 per year, subject to annual review by the Board of Directors. Mr. White also received a $10,000 signing bonus. Effective April 2, 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.

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NOTE 8. INCOME TAXES

9 Months Ended

Jul. 02, 2017

Notes

NOTE 8. INCOME TAXES

NOTE 8. INCOME TAXES

For the nine month period ended July 2, 2017, the Company reported a pre-tax income of $1,334,955. For the fiscal year ending October 1, 2017 the Company expects to generate pre-tax income and to record a tax provision at an effective rate of approximately 38%. As such, the Company recorded a tax provision of $510,000 for the nine month period ended July 2, 2017.

The Company’s cumulative Federal net operating loss carry-forward was approximately $1,913,000 at October 2, 2016 and will expire beginning in the year 2026. For the fiscal year ending October 1, 2017 the Company expects to utilize a portion of its Federal net tax operating loss carry-forwards to offset regular Federal cash tax due in its 2017 fiscal year. However, the Company will likely owe Federal alternative minimum tax for its 2017 fiscal year. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $1,913,000 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.

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NOTE 9. COMMITMENTS AND CONTINGENCIES

9 Months Ended

Jul. 02, 2017

Notes

NOTE 9. COMMITMENTS AND CONTINGENCIES

NOTE 9. COMMITMENTS AND CONTINGENCIES

Background

In September 2009, the Company filed an action against Larry Eastland, 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 to obtain a Temporary Restraining Order and injunctive relief against Mr. Eastland and his related companies as to their 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 original 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 (LEA Capital Advisors, LLC and the original defendants are collectively referred to herein as 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 regard to the Company’s purchase of TempSERV on September 30, 2007, its subsequent re-conveyance of TempSERV to Computer Contact Service, Inc. as of January 1, 2009, and other conduct of management at that time. The Company was seeking damages in excess of $1.8 million.

Discovery was conducted on the claims between the parties, after which the Harper Defendants filed a Motion for Summary Judgment asking that the claims against them be dismissed and that the counterclaims asserted by the Harper Defendants against the Company be granted. After briefing and argument, the Court granted summary judgment in favor of the Harper Defendants. Because one of the contracts at issue contained a legal fee provision, the Harper Defendants filed a motion seeking to recover legal fees and costs. On October 24, 2014, the Court granted the Harper Defendants’ motion in part and ordered the Company to pay $304,328 in costs and attorney’s fees to the Harper Defendants.

The Company appealed the summary judgment orders and the award of costs and attorney’s fees. On July 28, 2016, the Supreme Court of the State of Nevada issued an order mostly affirming the Eighth Judicial District Court’s summary judgment rulings and award of attorney’s fees and costs in favor of the Harper Defendants. After exhausting the Company’s options to further pursue its action against the Harper Defendants, the Company reached a final settlement with the Harper Defendants totaling $372,416, inclusive of additional attorney’s fees, costs and interest (the “Harper Judgment Award”), which was paid on November 8, 2016.

The separate claims against the Eastland Defendants then remained for trial in Nevada District Court.

Settlement with the Eastland Defendants

The Company entered into a settlement and release agreement dated March 30, 2017 (the “Eastland Settlement Agreement”) with certain the Eastland Defendants to settle the District Court Action. Pursuant to the Eastland Settlement Agreement, the Eastland Defendants agreed to make a settlement payment of $80,000 to the Company and assign 10,000 shares of the Company’s common stock beneficially owned by one of the Eastland Defendants to the Company (the “Settlement Shares”), and the Company consented to the sale of 10,010,000 shares of common stock beneficially owned by the Eastland Defendants to Nicholas Parks (the “NP Transaction”). On April 21, 2017, the Company received the $80,000 settlement payment and the Settlement Shares. A Stipulation and Order to Dismiss the Litigation with Prejudice was filed on April 24, 2017.

As part of the NP Transaction, the Company and Nicholas Parks entered into a Settlement Agreement and Release dated March 30, 2017 (the “NP Settlement Agreement”). This Agreement also has been released from escrow and is effective. As a result of the NP Transaction, Nicholas Parks holds shares representing approximately 13.4% of the outstanding common stock of the Company.

Other Matters

Except as described 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 Company’s directors, officers or affiliates is involved in a proceeding adverse to its business or has a material interest adverse to its business.

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NOTE 10. BUSINESS SEGMENTS

9 Months Ended

Jul. 02, 2017

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 Company’s reportable segments:

		For the three months ended				For the nine months ended
		July 2, 2017		July 3, 2016		July 2, 2017		July 3, 2016
Total net sales:
Georgia	$	1,766,845	$	1,481,336	$	3,715,226	$	2,888,325
Missouri		347,658		337,804		618,565		587,279
Consolidated	$	2,114,503	$	1,819,140	$	4,333,791	$	3,475,604
Income (loss) before income taxes:
Georgia	$	1,134,511	$	894,443	$	2,078,277	$	1,366,769
Missouri		42,034		65,610		(97,429)		(95,482)
Segment total		1,176,545		960,053		1,980,848		1,271,287
Corporate		(149,006)		(128,138)		(582,205)		(404,579)
Other income (expense), net		82,472		1,978		87,131		6,000
Interest expense		(49,799)		(52,144)		(150,819)		(163,375)
Consolidated	$	1,060,212	$	781,749	$	1,334,955	$	709,333
						As of
						July 2, 2017		October 2, 2016
Total assets:
Georgia					$	6,538,463	$	5,350,266
Missouri						2,656,184		2,633,066
Corporate						701,054		1,372,791
Consolidated					$	9,895,701	$	9,356,123

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NOTE 11. SUBSEQUENT EVENTS

9 Months Ended

Jul. 02, 2017

Notes

NOTE 11. SUBSEQUENT EVENTS

NOTE 11. SUBSEQUENT EVENTS

In accordance with ASC 855-10 the Company has analyzed its operations subsequent to July 2, 2017 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.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation (Policies)

9 Months Ended

Jul. 02, 2017

Policies

Basis of Presentation

Basis of Presentation: The Company’s unaudited consolidated financial statements for the three months and nine months ended July 2, 2017 and July 3, 2016 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 audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 2, 2016.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation (Policies)

9 Months Ended

Jul. 02, 2017

Policies

Principles of Consolidation

Principles of Consolidation: The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries (Wild Animal – Georgia and Wild Animal – Missouri). All material inter-company accounts and transactions have been eliminated in consolidation.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Accounting Method (Policies)

9 Months Ended

Jul. 02, 2017

Policies

Accounting Method

Accounting Method: The Company recognizes income and expenses based on the accrual method of accounting.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Estimates and Assumptions (Policies)

9 Months Ended

Jul. 02, 2017

Policies

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.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Fiscal Year End (Policies)

9 Months Ended

Jul. 02, 2017

Policies

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 2017 fiscal year, October 1 will be the closest Sunday, and for the 2016 fiscal year, October 2 was the closest Sunday. The 2017 fiscal year will be comprised of 52-weeks, while the 2016 fiscal year was comprised of 53-weeks. 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.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Reclassifications (Policies)

9 Months Ended

Jul. 02, 2017

Policies

Reclassifications

Reclassifications: Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Financial and Concentrations Risk (Policies)

9 Months Ended

Jul. 02, 2017

Policies

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.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Trade Accounts Receivable (Policies)

9 Months Ended

Jul. 02, 2017

Policies

Trade Accounts Receivable

Trade Accounts Receivable: The theme parks are a payment upfront business; therefore, the Company typically carries little or no accounts receivable. The Company had no accounts receivable as of July 2, 2017 and October 2, 2016, respectively.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Inventory (Policies)

9 Months Ended

Jul. 02, 2017

Policies

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.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Policies)

9 Months Ended

Jul. 02, 2017

Policies

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 thirty-nine years. A summary is included below.

		July 2, 2017		October 2, 2016	Depreciable Lives
Land	$	2,507,180	$	2,507,180	not applicable
Ground improvements		893,433		824,427	7 - 25 years
Buildings and structures		2,882,285		2,882,285	10 - 39 years
Animal shelters and habitats		1,270,224		1,219,023	10 - 39 years
Park animals		727,705		642,769	5 - 10 years
Equipment - concession and related		221,493		221,493	3 - 15 years
Equipment and vehicles - yard and field		545,381		512,445	3 - 15 years
Vehicles - buses and rental		209,626		186,932	3 - 5 years
Rides and entertainment		181,867		181,867	5 - 10 years
Furniture and fixtures		60,485		60,485	5 - 10 years
Projects in process		124,974		-
Property and equipment, cost		9,624,653		9,238,906
Less accumulated depreciation		(3,069,259)		(2,806,009)
Property and equipment, net	$	6,555,394	$	6,432,897

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Intangible assets (Policies)

9 Months Ended

Jul. 02, 2017

Policies

Intangible assets

Intangible assets: Intangible assets consist of franchising fees, which are reported at cost and are being amortized over a period of 60 months.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Impairment of Long-Lived Assets (Policies)

9 Months Ended

Jul. 02, 2017

Policies

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.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Other Current Liabilities (Policies)

9 Months Ended

Jul. 02, 2017

Policies

Other Current Liabilities

Other Current Liabilities: The following is a breakdown of other current liabilities:

		July 2, 2017		October 2, 2016
Accrued sales taxes	$	53,911	$	28,928
Accrued wages and payroll taxes		47,821		23,814
Accrued income taxes		37,400		45,426
Deferred revenue		33,798		16,532
Accrued property taxes		29,174		37,408
Other accrued liabilities		153,661		79,284
Other current liabilities	$	355,765	$	231,392

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Financial Instruments (Policies)

9 Months Ended

Jul. 02, 2017

Policies

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 as of the balance sheet date presented.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies)

9 Months Ended

Jul. 02, 2017

Policies

Revenue Recognition

Revenue Recognition: The Company’s major source of income is from theme park admissions. Theme park revenues from admission fees are generally recognized upon receipt of payment at the time of the customers’ visit to the parks. Theme park revenues from advance online ticket purchases are deferred until the customers’ visit to the parks. Short-term seasonal passes are sold primarily during the spring and summer seasons, are negligible to our results of operations and are not material. 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.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Advertising and Market Development (Policies)

9 Months Ended

Jul. 02, 2017

Policies

Advertising and Market Development

Advertising and Market Development: The Company expenses advertising and marketing costs as incurred.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Stock Based Compensation (Policies)

9 Months Ended

Jul. 02, 2017

Policies

Stock Based Compensation

Stock Based Compensation: The Company recognizes 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 of its common stock to members of 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.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies)

9 Months Ended

Jul. 02, 2017

Policies

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.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Net Income (Loss) Per Share (Policies)

9 Months Ended

Jul. 02, 2017

Policies

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.

Basic and diluted net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding in each period.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Dividend Policy (Policies)

9 Months Ended

Jul. 02, 2017

Policies

Dividend Policy

Dividend Policy: The Company has not yet adopted a policy regarding payment of dividends.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Recent Accounting Pronouncements (Policies)

9 Months Ended

Jul. 02, 2017

Policies

Recent Accounting Pronouncements

Recent Accounting Pronouncements: Except as noted in “NOTE 4. LONG-TERM DEBT”, 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.

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Property, Plant and Equipment (Tables)

9 Months Ended

Jul. 02, 2017

Tables/Schedules

Property, Plant and Equipment

		July 2, 2017		October 2, 2016	Depreciable Lives
Land	$	2,507,180	$	2,507,180	not applicable
Ground improvements		893,433		824,427	7 - 25 years
Buildings and structures		2,882,285		2,882,285	10 - 39 years
Animal shelters and habitats		1,270,224		1,219,023	10 - 39 years
Park animals		727,705		642,769	5 - 10 years
Equipment - concession and related		221,493		221,493	3 - 15 years
Equipment and vehicles - yard and field		545,381		512,445	3 - 15 years
Vehicles - buses and rental		209,626		186,932	3 - 5 years
Rides and entertainment		181,867		181,867	5 - 10 years
Furniture and fixtures		60,485		60,485	5 - 10 years
Projects in process		124,974		-
Property and equipment, cost		9,624,653		9,238,906
Less accumulated depreciation		(3,069,259)		(2,806,009)
Property and equipment, net	$	6,555,394	$	6,432,897

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Other Current Liabilities: Other Current Liabilities (Tables)

9 Months Ended

Jul. 02, 2017

Tables/Schedules

Other Current Liabilities

		July 2, 2017		October 2, 2016
Accrued sales taxes	$	53,911	$	28,928
Accrued wages and payroll taxes		47,821		23,814
Accrued income taxes		37,400		45,426
Deferred revenue		33,798		16,532
Accrued property taxes		29,174		37,408
Other accrued liabilities		153,661		79,284
Other current liabilities	$	355,765	$	231,392

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NOTE 4. LONG-TERM DEBT: Schedule of Debt (Tables)

9 Months Ended

Jul. 02, 2017

Tables/Schedules

Schedule of Debt

		July 2, 2017		October 2, 2016
Refinancing Loan principal outstanding	$	3,286,943	$	3,366,507
Less: unamortized debt closing costs		(140,446)		(148,252)
Gross long-term debt		3,146,497		3,218,255
Less current portion of long-term debt, net of unamortized debt closing costs		(120,113)		(104,652)
Long-term debt	$	3,026,384	$	3,113,603

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NOTE 4. LONG-TERM DEBT: Schedule of Maturities of Long-term Debt (Tables)

9 Months Ended

Jul. 02, 2017

Tables/Schedules

Schedule of Maturities of Long-term Debt

2017	$	31,932
2018		132,406
2019		140,223
2020		148,502
2021		157,270
thereafter		2,676,610
Total	$	3,286,943

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NOTE 10. BUSINESS SEGMENTS: Schedule of Segment Reporting Information, by Segment (Tables)

9 Months Ended

Jul. 02, 2017

Tables/Schedules

Schedule of Segment Reporting Information, by Segment

		For the three months ended				For the nine months ended
		July 2, 2017		July 3, 2016		July 2, 2017		July 3, 2016
Total net sales:
Georgia	$	1,766,845	$	1,481,336	$	3,715,226	$	2,888,325
Missouri		347,658		337,804		618,565		587,279
Consolidated	$	2,114,503	$	1,819,140	$	4,333,791	$	3,475,604
Income (loss) before income taxes:
Georgia	$	1,134,511	$	894,443	$	2,078,277	$	1,366,769
Missouri		42,034		65,610		(97,429)		(95,482)
Segment total		1,176,545		960,053		1,980,848		1,271,287
Corporate		(149,006)		(128,138)		(582,205)		(404,579)
Other income (expense), net		82,472		1,978		87,131		6,000
Interest expense		(49,799)		(52,144)		(150,819)		(163,375)
Consolidated	$	1,060,212	$	781,749	$	1,334,955	$	709,333
						As of
						July 2, 2017		October 2, 2016
Total assets:
Georgia					$	6,538,463	$	5,350,266
Missouri						2,656,184		2,633,066
Corporate						701,054		1,372,791
Consolidated					$	9,895,701	$	9,356,123

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NOTE 1. ORGANIZATION (Details)	9 Months Ended
	Jul. 02, 2017
Details
Entity Incorporation, Date of Incorporation	Jul. 30, 1954
Entity Information, Former Legal or Registered Name	Painted Desert Uranium & Oil Co.
Entity Incorporation, State Country Name	Nevada

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Property, Plant and Equipment (Details) - USD ($)	9 Months Ended
	Jul. 02, 2017	Oct. 02, 2016
Property, Plant and Equipment, Gross	$ 9,624,653	$ 9,238,906
Less accumulated depreciation	(3,069,259)	(2,806,009)
Property and equipment, net	6,555,394	6,432,897
Land
Property, Plant and Equipment, Gross	2,507,180	2,507,180
Land Improvements
Property, Plant and Equipment, Gross	893,433	824,427
Building
Property, Plant and Equipment, Gross	2,882,285	2,882,285
Animal shelters and habitats
Property, Plant and Equipment, Gross	1,270,224	1,219,023
Park animals
Property, Plant and Equipment, Gross	727,705	642,769
Equipment - concession and related
Property, Plant and Equipment, Gross	221,493	221,493
Equipment and vehicles - yard and field
Property, Plant and Equipment, Gross	545,381	512,445
Vehicles - buses and rental
Property, Plant and Equipment, Gross	209,626	186,932
Rides and entertainment
Property, Plant and Equipment, Gross	181,867	181,867
Furniture and Fixtures
Property, Plant and Equipment, Gross	60,485	60,485
Projects in process
Property, Plant and Equipment, Gross	$ 124,974	$ 0
Minimum | Land Improvements
Depreciable Lives	7 years
Minimum | Building
Depreciable Lives	10 years
Minimum | Animal shelters and habitats
Depreciable Lives	10 years
Minimum | Park animals
Depreciable Lives	5 years
Minimum | Equipment - concession and related
Depreciable Lives	3 years
Minimum | Equipment and vehicles - yard and field
Depreciable Lives	3 years
Minimum | Vehicles - buses and rental
Depreciable Lives	3 years
Minimum | Rides and entertainment
Depreciable Lives	5 years
Minimum | Furniture and Fixtures
Depreciable Lives	5 years
Maximum | Land Improvements
Depreciable Lives	25 years
Maximum | Building
Depreciable Lives	39 years
Maximum | Animal shelters and habitats
Depreciable Lives	39 years
Maximum | Park animals
Depreciable Lives	10 years
Maximum | Equipment - concession and related
Depreciable Lives	15 years
Maximum | Equipment and vehicles - yard and field
Depreciable Lives	15 years
Maximum | Vehicles - buses and rental
Depreciable Lives	5 years
Maximum | Rides and entertainment
Depreciable Lives	10 years
Maximum | Furniture and Fixtures
Depreciable Lives	10 years

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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Other Current Liabilities: Other Current Liabilities (Details) - USD ($)	Jul. 02, 2017	Oct. 02, 2016
Details
Accrued sales taxes	$ 53,911	$ 28,928
Accrued wages and payroll taxes	47,821	23,814
Accrued income taxes	37,400	45,426
Deferred revenue	33,798	16,532
Accrued property taxes	29,174	37,408
Other accrued liabilities	153,661	79,284
Other current liabilities	$ 355,765	$ 231,392

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NOTE 4. LONG-TERM DEBT: Debt issued on January 9, 2013 (Details)	9 Months Ended
	Jul. 02, 2017 USD ($)
Details
Debt Instrument, Description	Refinancing Loan
Debt Instrument, Face Amount	$ 3,752,000
Debt Instrument, Term	20 years
Debt Instrument, Interest Rate Terms	The Refinancing Loan bears interest at the rate of Prime Rate plus 2.50%, resulting in a rate of 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%.
Debt Instrument, Fee Amount	$ 175,369

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NOTE 4. LONG-TERM DEBT: Schedule of Debt (Details) - USD ($)	Jul. 02, 2017	Oct. 02, 2016
Details
Refinancing Loan principal outstanding	$ 3,286,943	$ 3,366,507
Less: unamortized debt closing costs	(140,446)	(148,252)
Gross long-term debt	3,146,497	3,218,255
Less current portion of long-term debt, net of unamortized debt closing costs	(120,113)	(104,652)
Long-term debt	$ 3,026,384	$ 3,113,603

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NOTE 4. LONG-TERM DEBT: Schedule of Maturities of Long-term Debt (Details)	Jul. 02, 2017 USD ($)
Details
Long-term Debt, Maturities, Repayments of Principal in remainder of current fiscal year	$ 31,932
Long-term Debt, Maturities, Repayments of Principal in Year Two	132,406
Long-term Debt, Maturities, Repayments of Principal in Year Three	140,223
Long-term Debt, Maturities, Repayments of Principal in Year Four	148,502
Long-term Debt, Maturities, Repayments of Principal in Year Five	157,270
Long-term Debt, Maturities, Repayments of Principal after Year Five	2,676,610
Long-term Debt	$ 3,286,943

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NOTE 4. LONG-TERM DEBT: Interest Expense and Amortization of Debt Closing Costs (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 02, 2017	Jul. 03, 2016	Jul. 02, 2017	Jul. 03, 2016
Details
Long-term debt, Interest Expense	$ 49,799	$ 52,144	$ 150,819	$ 163,375
Long-term debt, Amortization and Closing Costs	$ 2,602	$ 2,602	$ 7,806	$ 7,806

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NOTE 5. LINES OF CREDIT (Details) - USD ($)	9 Months Ended
	Jul. 02, 2017	Oct. 02, 2016
Details
Line of Credit Facility, Maximum Borrowing Capacity	$ 350,000
Line of Credit Facility, Description	line of credit loan (the “LOC”) from CB&T for working capital purposes
Line of Credit, Initial Term	7 years
Line of Credit Facility, Expiration Date	Jan. 08, 2020
Line of Credit Facility, Covenant Terms	subject to the satisfactory performance by the Company
Line of Credit Facility, Interest Rate Description	The LOC interest rate is tied to the prime rate and was 6.00% as of July 2, 2017, with a minimum rate of 5.25%
Line of Credit Facility, Fair Value of Amount Outstanding	$ 0	$ 0

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NOTE 8. INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 02, 2017	Jul. 03, 2016	Jul. 02, 2017	Jul. 03, 2016
Details
Income before income taxes	$ 1,060,212	$ 781,749	$ 1,334,955	$ 709,333
Income tax provision	$ 406,000	$ 50,100	$ 510,000	$ 55,500

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NOTE 9. COMMITMENTS AND CONTINGENCIES (Details)	9 Months Ended
	Jul. 02, 2017
Defendant 1
Loss Contingency, Name of Defendant	Larry Eastland, its former President and CEO
Defendant 2
Loss Contingency, Name of Defendant	LEA Capital Advisors, LLC
Defendant 3
Loss Contingency, Name of Defendant	Stanley Harper and Computer Contact Service, Inc.

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NOTE 10. BUSINESS SEGMENTS: Schedule of Segment Reporting Information, by Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 02, 2017	Jul. 03, 2016	Jul. 02, 2017	Jul. 03, 2016
Total net sales:	$ 2,114,503	$ 1,819,140	$ 4,333,791	$ 3,475,604
Income (loss) before income taxes:	1,060,212	781,749	1,334,955	709,333
Total assets:			9,895,701	9,356,123
Georgia
Total net sales:	1,766,845	1,481,336	3,715,226	2,888,325
Income (loss) before income taxes:	1,134,511	894,443	2,078,277	1,366,769
Total assets:			6,538,463	5,350,266
Missouri
Total net sales:	347,658	337,804	618,565	587,279
Income (loss) before income taxes:	42,034	65,610	(97,429)	(95,482)
Total assets:			2,656,184	2,633,066
Segment total
Income (loss) before income taxes:	1,176,545	960,053	1,980,848	1,271,287
Corporate
Income (loss) before income taxes:	(149,006)	(128,138)	(582,205)	(404,579)
Total assets:			701,054	1,372,791
Other income (expense), net
Income (loss) before income taxes:	82,472	1,978	87,131	6,000
Interest expense
Income (loss) before income taxes:	$ (49,799)	$ (52,144)	$ (150,819)	$ (163,375)