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 January 3, 2021

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, Including Zip Code of Principal Executive Offices)

(706-663-8744)

(Issuer's telephone number)

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	[   ]	Smaller reporting company	[X]
(Do not check if a smaller reporting company)

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 February 8, 2021, the issuer had 75,124,087 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 – January 3, 2021 and September 27, 2020	3
	Consolidated Statements of Operations – three months ended January 3, 2021 and December 29, 2019	4
	Consolidated Statement of Changes in Stockholders’ Equity –  three months ended January 3, 2021 and December 29, 2019	5
	Consolidated Statements of Cash Flows – three months ended  January 3, 2021 and December 29, 2019	6
	Notes to the Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.	Controls and Procedures	21
	PART II. OTHER INFORMATION:
Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 3.	Defaults Upon Senior Securities	25
Item 4.	Mine Safety Disclosures	25
Item 5.	Other Information	25
Item 6.	Exhibits	25
	Signatures	26

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PARKS! AMERICA, INC. and SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of January 3, 2021 and September 27, 2020

	January 3, 2021		September 27, 2020
ASSETS
Cash	$	5,615,622	$	5,505,716
Inventory		299,631		200,891
Prepaid expenses		195,570		148,732
Total current assets		6,110,823		5,855,339
Property and equipment, net		13,713,382		13,654,800
Other assets		12,144		12,144
Total assets	$	19,836,349	$	19,522,283
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Accounts payable	$	145,442	$	178,485
Other current liabilities		764,939		599,390
Current portion of long-term debt, net		1,274,580		1,221,009
Total current liabilities		2,184,961		1,998,884
Long-term debt, net		5,697,446		5,797,392
Total liabilities		7,882,407		7,796,276
Stockholders’ equity
Common stock; 300,000,000 shares authorized,
at $.001 par value; 75,021,537 and 75,021,537
shares issued and outstanding, respectively		75,021		75,021
Capital in excess of par		4,889,316		4,889,316
Treasury stock		(3,250)		(3,250)
Retained earnings		6,992,855		6,764,920
Total stockholders’ equity		11,953,942		11,726,007
Total liabilities and stockholders’ equity	$	19,836,349	$	19,522,283

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

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PARKS! AMERICA, INC. and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the Three Months Ended January 3, 2021 and December 29, 2019

	For the three months ended
	January 3, 2021		December 29, 2019
Net sales	$	2,155,475	$	983,408
Sale of animals		71,724		12,077
Total net sales		2,227,199		995,485
Cost of sales		259,995		126,860
Selling, general and administrative		1,399,845		851,217
Depreciation and amortization		167,200		117,500
Loss on disposal of operating assets		4,675		-
Income (loss) from operations		395,484		(100,092)
Other income, net		14,564		7,962
Interest expense		(91,413)		(17,721)
Income (loss) before income taxes		318,635		(109,851)
Income tax provision		90,700		(20,700)
Net income (loss)	$	227,935	$	(89,151)
Income per share - basic and diluted	$	0.00	$	(0.00)
Weighted average shares
outstanding (in 000's) - basic and diluted		75,021		74,821

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

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PARKS! AMERICA, INC. and SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

For the Three Months Ended January 3, 2021 and December 29, 2019

				Capital in Excess of Par		Treasury Stock		Retained Earnings		Total
	Shares	Amount
Balance at September 27, 2020	75,021,537	$	75,021	$	4,889,316	$	(3,250)	$	6,764,920	$	11,726,007
Net income for the three months
ended January 3, 2021	-		-		-		-		227,935		227,935
Balance at January 3, 2021	75,021,537	$	75,021	$	4,889,316	$	(3,250)	$	6,992,855	$	11,953,942
				Capital in Excess of Par		Treasury Stock		Retained Earnings		Total
	Shares	Amount
Balance at September 29, 2019	74,821,537	$	74,821	$	4,855,516	$	(3,250)	$	3,997,451	$	8,924,538
Net loss for the three months
ended December 29, 2019	-		-		-		-		(89,151)		(89,151)
Balance at December 29, 2019	74,821,537	$	74,821	$	4,855,516	$	(3,250)	$	3,908,300	$	8,835,387

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

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PARKS! AMERICA, INC. and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Three Months Ended January 3, 2021 and December 29, 2019

	For the three months ended
	January 3, 2021		December 29, 2019
OPERATING ACTIVITIES:
Net income (loss)	$	227,935	$	(89,151)
Reconciliation of net income (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization expense		167,200		117,500
Interest expense - debt financing cost amortization		1,978		560
Interest expense - loan discount amortization		4,640		-
Loss on disposal of assets		4,675		-
Changes in assets and liabilities
(Increase) decrease in inventory		(98,740)		(28,000)
(Increase) decrease in prepaid expenses		(46,838)		(74,823)
Increase (decrease) in accounts payable		(33,043)		(54,917)
Increase (decrease) in other current liabilities		165,549		81,775
Net cash provided by (used in) operating activities		393,356		(47,056)
INVESTING ACTIVITIES:
Acquisition of property and equipment		(245,365)		(142,315)
Proceeds from the disposition of property and equipment		15,434		-
Net cash used in investing activities		(229,931)		(142,315)
FINANCING ACTIVITIES:
Payments on 2018 Term Loan		(53,519)		(50,895)
Net cash used in financing activities		(53,519)		(50,895)
Net increase (decrease) in cash		109,906		(240,266)
Cash at beginning of period		5,505,716		3,787,815
Cash at end of period	$	5,615,622	$	3,547,549
Supplemental Cash Flow Information:
Cash paid for interest	$	99,743	$	17,120
Cash paid for income taxes	$	-	$	-

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

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PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

January 3, 2021

NOTE 1. ORGANIZATION

Parks! America, Inc. (“Parks!” or the “Company”) was originally incorporated on July 30, 1954 as Painted Desert Uranium & Oil Co., Inc. in Washington State. On October 1, 2002, Painted Desert Uranium & Oil Co., Inc. changed its name to Royal Pacific Resources, Inc. and its corporate domicile to the State of Nevada.

On December 19, 2003, Royal Pacific Resources, Inc. acquired the assets of Great Western Parks LLC pursuant to a Share Exchange Agreement that resulted in the Company assuming control and changing the corporate name to Great American Family Parks, Inc. The acquisition was accounted for as a reverse acquisition in which Great Western Parks was considered to be the acquirer of Royal Pacific Resources for reporting purposes. On June 11, 2008, the Company changed its name from Great American Family Parks, Inc. to Parks! America, Inc.

The Company owns and operates through wholly owned subsidiaries three regional theme parks and is in the business of acquiring, developing and operating local and regional theme parks and attractions in the United States. The Company’s wholly owned subsidiaries are Wild Animal Safari, Inc. a Georgia corporation (“Wild Animal – Georgia”), Wild Animal, Inc., a Missouri corporation (“Wild Animal – Missouri”), and Aggieland-Parks, Inc., a Texas corporation (“Aggieland Wild Animal – Texas”). Wild Animal – Georgia owns and operates the Wild Animal Safari theme park in Pine Mountain, Georgia (the “Georgia Park”). Wild Animal – Missouri owns and operates the Wild Animal Safari theme park located in Strafford, Missouri (the “Missouri Park”). Aggieland Wild Animal – Texas owns and operates the Aggieland Wild Animal Safari theme park near Bryan/College Station, Texas (the “Texas Park”). The Company acquired the Georgia Park on June 13, 2005, the Missouri Park on March 5, 2008, and the Texas Park on April 27, 2020.

The Parks are open year round but experience increased seasonal attendance, typically beginning in the latter half of March through early September. As a result, our combined third and fourth quarter net sales have historically ranged from 68% to 72% of our annual net sales.

COVID-19

In March 2020, the World Health Organization characterized COVID-19, a disease caused by a novel strain of a coronavirus, as a pandemic. The rapid spread of COVID-19 has resulted in governmental authorities throughout the United States implementing a variety of containment measures with the objective of slowing the spread of the virus, including travel restrictions, shelter-in-place orders and business shutdowns. The COVID-19 pandemic and these containment measures have had, and could continue to have, a material impact on the Company’s business.

The rapid acceleration of the COVID-19 pandemic in the United States occurred at the beginning of the Company’s annual high season. The Company began to see a significant reduction in paid attendance at its Georgia and Missouri Parks beginning the week of March 9, 2020. Effective April 3, 2020, the Company’s Georgia and Missouri Parks were closed as a result of shelter-in-place mandates in Georgia and Missouri. Also note that prior to the Company’s acquisition of the Texas Park, its operations were suspended for the majority of April 2020 due to a shelter-in-place mandate in Texas.

In compliance with respective state issued guidelines, the Georgia Park and the Texas Park each reopened on May 1, 2020, and the Missouri Park reopened on May 4, 2020. Subsequent to reopening, attendance levels were strong at each of the Company’s three Parks for the balance of its 2020 fiscal year, which has continued through the first three months of its 2021 fiscal year. However, there may be longer-term negative impacts to the Company’s business, results of operations and cash flows, and financial condition as a result of the COVID-19 pandemic. These negative impacts include changes in customer behavior and preferences causing significant volatility or reductions in Park attendance, increases in operating expenses to comply with additional hygiene-related protocols, limitations in our ability to recruit and maintain staffing, limitations on our employees ability to work and travel, and significant changes in the economic or political conditions in the areas the Company’s Parks are located. Despite the Company’s efforts to manage these impacts, the ultimate impact may be material, and will depend on a number of factors beyond its control, including the duration and severity of the COVID-19 pandemic and actions by governmental authorities taken to contain its spread and mitigate its public health effects.

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PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

January 3, 2021

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation: The Company’s unaudited consolidated financial statements for the three months ended January 3, 2021 and December 29, 2019 are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes that the disclosures made are adequate to make the information presented not misleading. The information reflects all adjustments that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods set forth herein. In the opinion of management interim results reflect all normal and recurring adjustments, and are not necessarily indicative of the results for a full fiscal year.

These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 27, 2020.

Principles of Consolidation: The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries (Wild Animal – Georgia, Wild Animal – Missouri and Aggieland Wild Animal – Texas). 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 2021 fiscal year, October 3 will be the closest Sunday, and for 2020 fiscal year, September 27 was the closest Sunday. The 2021 fiscal year will be comprised of 53-weeks, while the 2020 fiscal year was comprised of 52-weeks. This fiscal calendar aligns the Company’s fiscal periods 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.

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 January 3, 2021 and September 27, 2020, respectively.

Inventory: Inventory consists of gift shop items, animal food, and concession and park supplies, and is stated at the lower of cost or net realizable value. Cost is determined on the first-in, first-out method. The gross profit method is used to determine the change in gift shop inventory for interim periods. Inventories are reviewed and reconciled annually, because inventory levels turn over rapidly. The Company had inventory of $299,631 and $200,891 as of January 3, 2021 and September 27, 2020, respectively.

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PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

January 3, 2021

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Property and Equipment: Property and equipment are 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.

	January 3, 2021		September 27, 2020		Depreciable Lives
Land	$	6,389,470	$	6,389,470	not applicable
Mineral rights		276,000		276,000	25 years
Ground improvements		2,334,172		2,334,172	7-25 years
Buildings and structures		3,798,098		3,798,098	10-39 years
Animal shelters and habitats		2,098,947		2,098,947	10-39 years
Park animals		1,147,833		1,166,583	5-10 years
Equipment - concession and related		232,281		232,281	3-15 years
Equipment and vehicles - yard and field		556,168		556,168	3-15 years
Vehicles - buses and rental		237,075		237,075	3-5 years
Rides and entertainment		224,578		224,578	5-7 years
Furniture and fixtures		26,057		26,057	5-10 years
Projects in process		277,905		34,290
Property and equipment, cost		17,598,584		17,373,719
Less accumulated depreciation		(3,885,202)		(3,718,919)
Property and equipment, net	$	13,713,382	$	13,654,800

Depreciation expense for the three months ended January 3, 2021 and December 29, 2019 totaled $167,200 and $117,300, respectively.

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:

	January 3, 2021		September 27, 2020
Deferred revenue	$	299,254	$	273,386
Accrued wages and payroll taxes		182,243		42,774
Accrued income taxes		138,602		46,402
Accrued sales taxes		50,759		69,101
Accrued property taxes		931		68,530
Other accrued liabilities		93,150		99,197
Other current liabilities	$	764,939	$	599,390

Financial Instruments: The carrying amounts of financial instruments are considered by management to be their estimated fair values due to their short-term maturities or due to the fact they were entered into during the Company’s 2020 fiscal year. Securities that are publicly traded are valued at their fair market value as of the balance sheet date presented.

Revenue Recognition: The Company recognizes revenues in accordance with ASC 606, Revenues from Contracts with Customers. Under ASC 606, the Company recognizes revenue when a customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocation the transaction price to the performance obligation in the contract; and (5) recognize revenue when (or as) the Company satisfies the performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer.

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PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

January 3, 2021

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Revenues from park admission fees are recognized at the point in time control transfers to the customer, which is generally when the customer accepts access to the park and the Company is entitled to payment. Park admission fee revenues from advance online ticket purchases are deferred until the customers’ visit to the parks. Revenues from retail and concession sales are generally recognized upon the concurrent receipt of payment and delivery of goods to the customer. Sales taxes billed and collected are not included in revenue.

The Company periodically sells surplus animals created from the natural breeding process that occurs within the parks. All animal sales are reported as a separate revenue line item. Animal sales are recognized at a point in time when control transfer to the customer, which is generally determined when title, ownership and risk of loss pass to the customer, all of which generally occurs upon delivery of the animal. Based on the Company’s assessment of control indicators, sales are recognized when animals are delivered to the customer.

The Company provides disaggregation of revenue based on geography in “NOTE 10: BUSINESS SEGMENTS”, as it believes this best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

Deferred revenues from advance online admission tickets were $299,254 and $273,386 as of January 3, 2021 and September 27, 2020, respectively, and are included within Other Current Liabilities in the accompanying consolidated balance sheets.

Advertising and Marketing Costs: The Company expenses advertising and marketing costs as incurred. Advertising and marketing expense for the three months ended January 3, 2021 and December 29, 2019 totaled $212,145 and $121,338, respectively.

Stock Based Compensation: The Company recognizes stock based compensation costs on a straight-line basis over the requisite service period associated with the grant. The Company awards shares to its Board of Directors for service on the Board. The shares issued to the Board are “restricted” and are not to be re-sold unless an exemption is available, such as the exemption afforded by Rule 144 promulgated under the Securities Act of 1933, as amended (the “Securities Act”). The Company recognizes the expense based on the fair market value at time of the grant. The Company typically awards its annual Director compensation around the end of each calendar year.

A Stock Option and Award Plan (the “Plan”) providing for incentive stock options and performance bonus awards for executives, employees, and directors was approved by the Company’s Board of Directors on February 1, 2005, however, the Plan has not been submitted to the stockholders for approval. The Plan sets aside five million (5,000,000) shares for award of stock options, including qualified incentive stock options and performance stock bonuses. To date, no grants or awards have been made pursuant to the Plan and the Company did not submit the Plan for consideration to the Company’s stockholders at its last meeting of stockholders.

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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PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

January 3, 2021

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than fifty percent likely of being realized on examination. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. The Company has no unrecognized tax benefits under guidance related to tax uncertainties. The Company does not anticipate the unrecognized tax benefits will significantly change in the next twelve months. Any tax penalties or interest expense will be recognized in income tax expense. No interest and penalties related to unrecognized tax benefits were accrued as of January 3, 2021 or September 27, 2020.

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 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 applicable weighted average number of common shares outstanding in each period.

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

Recent Accounting Pronouncements:

Income Taxes

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes (“Update 2019-12”), which removes certain exceptions for investments, intraperiod allocations and interim tax calculations, and adds guidance to reduce the complexity in accounting for income taxes. Update 2019-12 is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The various amendments in Update 2019-12 are applied on a retrospective basis, modified retrospective basis and prospective basis, depending upon the amendment. The Company is in the process of evaluating the impact of this amendment on its consolidated financial statements; however, it is not anticipated to be material.

Financial Instruments – Credit Losses

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASC 2016-16 is effective for annual reporting periods beginning after December 15, 2023, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company has determined this ASU will not have a material impact on its consolidated financial statements and related disclosures.

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional relief through specific exceptions and practical expedients for transitioning away from reference rates that are expected to be discontinued. The relief generally applies to eligible modifications of contractual terms that change (or have the potential to change) the amount or timing of contractual cash flows related to replacement of a reference rate. The relief allows such modifications to be accounted for as continuations of existing contracts without additional analysis. The optional relief is available from March 2020 through December 31, 2022. The The Company has determined this ASU will not have a material impact on its consolidated financial statements and related disclosures.

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PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

January 3, 2021

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Equity Securities, Equity Method Investments and Certain Derivatives

In January 2020, the FASB issued ASU 2020-01, Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815. This ASU clarifies the interaction between accounting standards related to equity securities, equity method investments and certain derivatives. The effective date of the standard will be for annual periods beginning after December 15, 2020, and interim periods within those fiscal years. The Company has determined this ASU will not have a material impact on its consolidated financial statements and related disclosures.

Except as noted, 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. ACQUISITION

On April 27, 2020, the Company, through a newly formed subsidiary, Aggieland-Parks, Inc., a Texas corporation, acquired substantially all the assets of Aggieland Safari LLC, Ferrill Creek Ranch LLC, and Vernell Investments LLC (combined the “Aggieland Assets”), primarily consisting of the Aggieland Safari Adventure Zoo and Safari Park (“Aggieland Safari”), including animal inventory, real estate, mineral rights, and certain equipment and other assets necessary to operate Aggieland Wild Animal – Texas. Aggieland Wild Animal – Texas is situated on 250 acres of a 450-acre property, located approximately 25 miles northeast of Bryan/College Station, Texas and 120 miles northwest of downtown Houston. The total purchase price for the Aggieland Assets was $7,102,000, after determination of the fair value of the seller note. The transaction was financed with a $5,000,000 loan (the “2020 Term Loan”) from First Financial Bank, N.A. (“First Financial”), a seller note with a face value of $750,000 (the “Aggieland Seller Note”), and cash totaling $1,375,000. The 2020 Term Loan is secured by substantially all of the Aggieland Assets, as well as guarantees from the Company and its subsidiaries. The 2020 Term Loan bears interest at a rate of 5.0% per annum, has a maturity date of April 27, 2031, with interest only payable monthly through April 2021. The Aggieland Seller Note represents a deferred portion of the purchase price, bears no interest, has a maturity date of June 30, 2021, and is secured by a second priority subordinated lien and security interest in the acquired mineral rights and the animal inventory. The Company applied a 2.5% discount rate to determine a fair value of $728,500 for the Aggieland Seller Note as of April 27, 2020.

The following table sets forth the purchase consideration paid to the members of Aggieland Safari and the amount of assets acquired and liabilities assumed as of the acquisition date:

Sources of consideration paid to Aggieland Safari Members:
Cash advances	$	125,000
Cash at closing		1,250,000
2020 Term Loan		5,000,000
Aggieland Seller Note		728,500
Less cash received		(1,500)
Total consideration	$	7,102,000
Purchase price allocation:
Inventories	$	10,000
Property and equipment		7,131,000
Deferred revenue		(39,000)
Total net assets acquired	$	7,102,000

The purchase price has been allocated based on an estimate of the fair value of assets acquired and liabilities assumed as of the acquisition date. The determination of estimated fair value requires management to make significant estimates and assumptions.

12

PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

January 3, 2021

NOTE 3. ACQUISITION (CONTINUED)

The following table presents supplemental pro forma information for the three month period ended December 29, 2019 as if the acquisition had occurred at the beginning of the Company’s 2019 fiscal year. The unaudited pro forma information includes adjustments for depreciation expense on property and equipment acquired, interest expense on debt incurred related to the acquisition, and the related income tax effects, as well as the elimination of property and equipment impairment charges recorded by Aggieland Safari prior to the acquisition. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected at the beginning of the Company’s 2019 fiscal year.

	For the three months ended December 29, 2019
Total net sales	$	1,331,998
Net loss	$	(218,378)
Income per share - basic and diluted	$	(0.00)

NOTE 4. LONG-TERM DEBT

On April 27, 2020, the Company acquired Aggieland Wild Animal – Texas, see “NOTE 3. ACQUISITION”, financing the transaction with the 2020 Term Loan from First Financial and the Aggieland Seller Note. The 2020 Term Loan in the original principal amount of $5,000,000 from First Financial is secured by substantially all of the Aggieland Wild Animal – Texas assets, as well as guarantees from the Company and its subsidiaries. The 2020 Term Loan bears interest at a rate of 5.0% per annum, has a maturity date of April 27, 2031, with interest only payable monthly through April 2021. The Company paid a total of approximately $62,375 in fees and expenses in connection with the 2020 Term Loan. The Aggieland Seller Note represents a deferred portion of the purchase price, has a face value of $750,000, bears no interest, has a maturity date of June 30, 2021, and is secured by a second priority subordinated lien and security interest in the acquired mineral rights and the animal inventory. The Company applied a 2.5% discount rate to determine a fair value of $728,500 for the Aggieland Seller Note as of April 27, 2020 and the resulting $21,500 discount will be amortized as interest expense over the 14 month period until the note matures. Including the remaining unamortized discount, the recorded value of the Aggieland Seller Note as of January 3, 2021 was $740,655.

On July 11, 2018, the Company, through its wholly owned subsidiary Wild Animal – Georgia, completed a refinancing transaction (the “2018 Refinancing”) with Synovus Bank (“Synovus”). The 2018 Refinancing included a term loan in the original principal amount of $1,600,000 (the “2018 Term Loan”). The 2018 Term Loan bears interest at a rate of 5.0% per annum and is payable in monthly payments of approximately $22,672, based on a seven year amortization period. The 2018 Term Loan has a maturity date of June 11, 2021, with an option to renew at 5.0% per annum for an additional 49-month term. The 2018 Term Loan is secured by a security deed on the assets of Wild Animal – Georgia. The Company paid a total of approximately $15,680 in fees and expenses in connection with the 2018 Refinancing. The outstanding balance of the 2018 Term Loan was $1,110,594 as of January 3, 2021.

As a result of the initial negative economic impacts and uncertainties caused by the COVID-19 pandemic, Wild Animal – Georgia and Wild Animal – Missouri each applied for Paycheck Protection Program (“PPP”) loans. On April 14, 2020 and April 16, 2020, the Company received two unsecured PPP loans totaling $188,087. Including accrued interest, the principal outstanding on the Company’s PPP loans was $189,451 as of January 3, 2021. The PPP was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27, 2020, and is administered by the U.S. Small Business Administration (the “SBA”). The term of the PPP loans is two years, with an interest rate of 1.0% per annum. All payments are deferred for the first twelve months of these PPP loans, with accrued interest being added to the principal during the payment deferral period. After the initial twelve-month deferral period, monthly principal and interest payments will be due until maturity for any portion of the PPP loans not forgiven. Under the terms of the CARES Act, some or all of the PPP loan proceeds are eligible to be forgiven. The amount of the PPP loans eligible to be forgiven are based on the use of the proceeds for payroll costs, mortgage interest, rent or utility costs, and the maintenance of employee and compensation levels, subject to limitations and ongoing rulemaking by the SBA. While not assured, the Company believes a substantial portion of its PPP loan proceeds were used for costs that are eligible for forgiveness, based on the current SBA guidelines. The Company will continue to account for its PPP loans under their defined terms until such time as forgiveness is granted by the SBA.

13

PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

January 3, 2021

NOTE 4. LONG-TERM DEBT (CONTINUED)

Interest expense of $91,413 and $17,721 for the three ended January 3, 2021 and December 29, 2019, respectively, includes $1,978 and $560, respectively, of amortization of debt closing costs in each period. In addition, interest expense for the three months ended January 3, 2021 includes $4,640 of loan discount amortization.

The following table represents the aggregate of the Company’s outstanding long-term debt:

	As of
	January 3, 2021		September 27, 2020
Loan principal outstanding	$	7,040,700	$	7,089,053
Less: unamortized debt financing costs		(68,674)		(70,652)
Gross long-term debt		6,972,026		7,018,401
Less current portion of long-term debt,
net of unamortized costs and discount		(1,274,580)		(1,221,009)
Long-term debt	$	5,697,446	$	5,797,392

As of January 3, 2021, the scheduled future principal maturities of the Company’s long-term debt by fiscal year are as follows:

2021		1,127,929
2022		755,927
2023		661,976
2024		696,466
2025		688,895
thereafter		3,109,507
Total	$	7,040,700

NOTE 5. LINE OF CREDIT

On July 11, 2018, the Company, through its wholly owned subsidiary Wild Animal – Georgia, completed the 2018 Refinancing with Synovus. The 2018 Refinancing includes a line of credit of up to $350,000 (the “2018 LOC”). The 2018 LOC bears interest at a rate of 4.75% and interest only payments are due monthly. The 2018 LOC is secured by a security deed on the assets of Wild Animal – Georgia. The 2018 LOC matures on July 11, 2021, with an option to renew for an additional three-year term. If necessary, the Company intends to utilize the 2018 LOC to fund seasonal working capital needs. As of January 3, 2021 and September 27, 2020, respectively, there was no outstanding balance against the Company’s LOC. When applicable, any advance on a Company LOC is recorded as a current liability.

NOTE 6. STOCKHOLDERS’ EQUITY

Shares of common stock issued for service to the Company are valued based on market price on the date of the award.

On December 18, 2020, the Company declared its annual compensation award to six Directors for their service on the Board of Directors. Each Director was awarded $10,000, to be paid all in shares, all in cash or a combination thereof, at each Director’s election. Four Directors elected to receive all shares of the Company’s common stock, one Director elected to receive 50% in shares and 50% in cash, and one Director elected all cash. Based on the closing stock price of $0.4388 per share on December 18, 2020, a total of 102,550 shares were distributed on January 11, 2021. The total compensation award cost of $60,000 was reported as an expense in the first quarter of the 2021 fiscal year.

On December 5, 2019, the Company declared its annual compensation award to four Directors for their service on the Board of Directors. Each Director was awarded $8,500, to be paid all in shares, all in cash or a combination thereof, at each Director’s election. All four Directors elected to receive shares of the Company’s common stock, totaling 50,000 each, based on the closing stock price of $0.17 per share on December 5, 2019. The total award cost of $34,000 was reported as an expense in the first quarter of the 2020 fiscal year, and the Company distributed each award on January 8, 2020.

Officers, Directors and their controlled entities own approximately 52.6% of the outstanding common stock of the Company as of January 3, 2021.

14

PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

January 3, 2021

NOTE 7. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES

Employment Agreements:

Effective as of June 1, 2020, the Company and Dale Van Voorhis, the Company’s Chairman and Chief Executive Officer, entered into an employment agreement (the “2020 Van Voorhis Employment Agreement”). Pursuant to the 2020 Van Voorhis Employment Agreement, Mr. Van Voorhis receives an initial base annual compensation in the amount of $100,000 per year, subject to annual review by the Board of Directors. The 2020 Van Voorhis Employment Agreement has a term of two years and entitles Mr. Van Voorhis to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company.

Effective as of January 1, 2019, the Company and Todd R. White, the Company’s Chief Financial Officer, entered into an employment agreement (the “2019 White Employment Agreement”). The 2019 White Employment Agreement has a term of three years, with minimum annual compensation of $70,000 in year one, $75,000 in year two and $80,000 in year three. Effective January 1, 2021, Mr. White’s annual compensation was changed to $90,000. Mr. White is also entitled to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company.

Effective as of May 1, 2018, the Company entered into an employment agreement with Michael D. Newman (the “Newman Employment Agreement”) to serve as the Company’s Vice President of Safari Operations. Mr. Newman had been the general manager of Wild Animal – Georgia since February 2011. Pursuant to the Newman Employment Agreement, Mr. Newman received an initial base annual compensation of $95,000 per year, subject to annual review by the Board of Directors. Mr. Newman also received a $5,000 signing bonus. Effective as of May 1, 2020, Mr. Newman’s annual compensation was changed to $108,000. The Newman Employment Agreement has a term of five years and entitles Mr. Newman to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company.

As of January 3, 2021, the Company has not adopted any deferred compensation plans. Each of the foregoing employment agreements contains provisions for severance compensation in the event an agreement is (i) terminated early by the Company without cause ($241,667 in aggregate) or (ii) in the event of a change in control of the Company ($506,667 in aggregate), as well as disability and death payment provisions ($141,500 in aggregate).

NOTE 8. INCOME TAXES

For the three month period ended January 3, 2021, the Company reported pre-tax income of $318,635. For the fiscal year ending October 3, 2021, the Company expects to generate pre-tax income and to record a tax provision at a blended effective federal and state income tax rate of approximately 27.0%. The Company recorded a net income tax provision of $90,700 for the three month period ended January 3, 2021, comprised of a federal expense of $60,700 and a State of Georgia expense of $30,000. The Company’s net income tax provision for the three month period ended December 29, 2019 was a tax benefit of $20,700, comprised of a federal benefit of $23,900 and a State of Georgia expense of $3,200.

NOTE 9. COMMITMENTS AND CONTINGENCIES

On May 21, 2019, the Company’s Missouri Park was struck by a tornado and sustained property damage, primarily to the “walk about”, the more traditional zoo-like section of the park, as well as to several auxiliary buildings. The park was closed at the time of this event and no employees were injured. While a few animals sustained non-life threatening injuries, no animals were killed or escaped.

As a result of the tornado damage, through September 29, 2019, the Company had written-off $56,339 related to the net book value of property destroyed and damaged, and incurred $24,105 of cleanup and repair expenses. Through September 29, 2019, the Company had capitalized $66,376 of expenditures related to improvements associated with the tornado damage. The Company capitalized an additional $71,478 of improvements associated with the tornado damage during the year ended September 27, 2020. On April 15, 2020, the Company received $24,373 of insurance proceeds, partially offsetting the costs and expenses incurred in the recovery from the tornado damage.

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)

January 3, 2021

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
	January 3, 2021			December 29, 2019
Total net sales:
Georgia	$	1,569,011	$	898,436
Missouri		220,028		97,049
Texas		438,160		-
Consolidated	$	2,227,199	$	995,485
Income (loss) before income taxes:
Georgia	$	861,697	$	332,773
Missouri		(130,467)		(163,417)
Texas		(18,945)		-
Segment total		712,285		169,356
Corporate		(316,801)		(269,448)
Other income, net		14,564		7,962
Interest expense		(91,413)		(17,721)
Consolidated	$	318,635	$	(109,851)
	As of
	January 3, 2021		September 27, 2020
Total assets:
Georgia	$	8,928,183	$	8,352,457
Missouri		2,965,927		3,120,166
Texas		7,788,823		7,919,577
Corporate		153,416		130,083
Consolidated	$	19,836,349	$	19,522,283

NOTE 11. SUBSEQUENT EVENTS

The Company has analyzed its operations subsequent to January 3, 2021 to the date these financial statements were issued and has determined that no material subsequent events have occurred from the date of these unaudited consolidated financial statements through the date of filing. However, subsequent to the period covered by this filing, on January 14, 2021, William Jump, a member of the Company’s Board of Directors, passed away.

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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 September 27, 2020.

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. Additional risks have been added to our business by the near-term and long-term impacts of the COVID-19 pandemic on the operations of our Parks, including customers perceptions of engaging in the activities involved in visiting our Parks, our ability to hire and retain employees in light of the issues posed by the COVID-19 pandemic, and our ability to maintain sufficient cash to fund operations due to the possible negative impact on our Park revenues associated with potential future disruptions in demand as a result of the pandemic.

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 three 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”), Wild Animal, Inc., a Missouri corporation (“Wild Animal – Missouri”), and Aggieland-Parks, Inc., a Texas corporation (“Aggieland Wild Animal – Texas”). Wild Animal – Georgia owns and operates the Wild Animal Safari theme park in Pine Mountain, Georgia (the “Georgia Park”). Wild Animal – Missouri owns and operates the Wild Animal Safari theme park located in Strafford, Missouri (the “Missouri Park”). Aggieland Wild Animal – Texas owns and operates the Aggieland Wild Animal Safari theme park near Bryan/College Station, Texas (the “Texas Park”). On April 27, 2020, we acquired substantially all the assets of Aggieland Safari LLC and related entities (“Aggieland Safari”), for additional information see “NOTE 3. ACQUISITION” of the Notes to the Consolidated Financial Statements (Unaudited).

Our Parks are open year round but experience increased seasonal attendance, typically beginning in the latter half of March through early September. As a result, our combined third and fourth quarter net sales have historically ranged from 68% to 72% of our annual net sales.

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Through our fiscal year ended September 27, 2020, our annual net sales, adjusted income before income taxes and net cash provided by operating activities have improved significantly over the past five to six fiscal years. These improvements are primarily attributable to a combination of increased attendance revenues and strong operating cost controls. Our Georgia Park in particular has benefitted from several positive factors including strong and stable management, the addition of online ticket sales in June 2015, growth and positive economic conditions in the greater Atlanta area, as well as positive guest perceptions of this Park. Our strong results through our 2019 fiscal year and the resulting improvements in our financial position provided us with the resources to pursue and ultimately close the Aggieland Safari acquisition during our 2020 fiscal year.

The rapid acceleration of the COVID-19 pandemic in the United States occurred at the beginning of our 2020 fiscal year annual high season. We began to see a significant reduction in paid attendance at our Georgia and Missouri Parks beginning the week of March 9, 2020. Effective April 3, 2020, both Parks were closed as a result of shelter-in-place mandates in Georgia and Missouri. Also note that prior to our acquisition of our Texas Park, its operations were suspended for the majority of April 2020 due to a shelter-in-place mandate in Texas.

In compliance with respective state issued guidelines, our Georgia Park and our Texas Park each reopened on May 1, 2020, and our Missouri Park reopened on May 4, 2020. Attendance levels were strong at each of our three Parks for the balance of our 2020 fiscal year end, which has continued through the first quarter of our 2021 fiscal year. We believe the strong year-over-year attendance growth each of our Parks experienced during the last five months of our 2020 fiscal year is a reflection of the principally outdoor nature of the family-friendly, wild animal education and entertainment experience provided at each of our Parks. The experience offered at each of our Parks is particularly attractive during the COVID-19 pandemic as potential guests are seeking outdoor entertainment options. While we have seen many repeat customers since reopening in May 2020, we have also experienced an increase in first time visitors seeking an outdoor entertainment alternative. We believe this has increased the local and regional awareness for each of our Parks, which we believe will have longer-term, positive ramifications for our business.

However, there is also the possibility of longer-term negative impacts to our business, results of operations and cash flows, and financial condition as a result of the COVID-19 pandemic. These negative impacts include changes in customer behavior and preferences causing significant volatility or reductions in attendance at one or more of our Parks, increases in operating expenses to comply with additional hygiene-related protocols, limitations in our ability to recruit and maintain staffing, limitations on our employees ability to work and travel, and significant changes in the economic or political conditions in the areas our Parks are located. Despite our efforts to manage these impacts, the ultimate impact may be material, and will depend on a number of factors beyond our control, including the duration and severity of the COVID-19 pandemic and actions by governmental authorities taken to contain its spread and mitigate its public health effects. There is also the potential for our attendance levels to decline after other attractions have reopened to full capacity once the COVID-19 pandemic has run its course or vaccines are in use and made widely available.

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 over the next several years is continuing the integration our Texas Park. Because our Texas Park first opened to the public in May 2019, we believe there remains tremendous potential to increase attendance by increasing the local and regional awareness of this facility via advertising and promotion. We are pleased with the expanded attendance at our Missouri Park during the latter half of our 2020 fiscal year. We plan on leveraging the increased exposure of this facility to continue to build on this recent success.

Our business plan includes expansion via the acquisition of additional local or regional theme parks and attractions, if attractive opportunities arise. We believe acquisitions, if any, should not unnecessarily encumber the Company with additional debt that cannot be justified by current operations. We may also pursue contract management opportunities for themed attractions owned by third parties. 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.

Strong growth in our annual operating cash flow over the past five to six fiscal years has provided us with incremental cash flow, and provided us with the financial strength to complete the Aggieland Safari acquisition. 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.

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.

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Results of Operations For the Three Month Period Ended January 3, 2021 as Compared to Three Month Period Ended December 29, 2019

Our 2021 fiscal year will be comprised of 53-weeks, compared to our 2020 fiscal year which was comprised of 52-weeks. The extra week in our 2021 fiscal year occurred in the three months ended January 3, 2021. As such, attendance based sales analyses will include comparable 14-week sales comparisons, as well as reported sales comparisons.

The following table shows our consolidated and segment operating results for the three month periods ended January 3, 2021 and December 29, 2019:

	Georgia Park				Missouri Park				Texas Park				Consolidated
	Fiscal 2021		Fiscal 2020		Fiscal 2021		Fiscal 2020		Fiscal 2021		Fiscal 2020		Fiscal 2021		Fiscal 2020
Total net sales	$	1,569,011	$	898,436	$	220,028	$	97,049	$	438,160	$	-	$	2,227,199	$	995,485
Segment income from operations		861,697		332,773		(130,467)		(163,417)		(18,945)		-		712,285		169,356
Segment operating margin %		54.9%		37.0%		-59.3%		-168.4%		-4.3%		na		32.0%		17.0%
Corporate expenses														(316,801)		(269,448)
Other income, net														14,564		7,962
Interest expense														(91,413)		(17,721)
Income before income taxes													$	318,635	$	(109,851)

Total Net Sales

Our total net sales for the three month period ended January 3, 2021 were $2,227,199, an increase of $1,231,714 versus the three month period ended December 29, 2019. Our Parks’ combined attendance based net sales increased by $1,172,067 or 119.2%, and animal sales increased by $59,647. Excluding our recently acquired Texas Park, our attendance based net sales increased by $754,346 or 76.7%, and animal sales increased by $39,208. For the comparable 14-weeks ended January 3, 2021 excluding our Texas Park, our attendance based sales increased by $654,394 or 60.4%.

Our Georgia Park’s attendance based net sales increased by $634,655 or 71.3%, to $1,524,576, while animal sales increased by $35,920 to $44,435. On a comparable 14-week basis, our Georgia Park’s attendance based sales increased by $544,814 or 55.6%. Our Missouri Park’s attendance based net sales increased by $119,692 or 128.0%, to $213,178, and animal sales increased by $3,287 to $6,850. On a comparable 14-week basis, our Missouri Park attendance based sales increased by $109,580 or 105.8%. Our Texas Park generated attendance based sales of $417,721 and animal sales of $20,439.

On a comparable 14-week basis, paid attendance at our Georgia Park and our Missouri Park increased by 49.1% and 77.4%, respectively.

Segment Operating Margin

Our consolidated segment income from operations was $712,285 for the three month period ended January 3, 2021, an increase of $542,929, compared to segment income from operations of $169,356 for the three month period ended December 29, 2019. Our Georgia Park’s segment operating income was $861,697, resulting in an increase of $528,924, 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. Our Missouri Park generated a segment operating loss of $130,467, an improvement of $32,950, primarily as a result of higher attendance based net sales, partially offset by higher cost of sales, and higher compensation, advertising and general operating expenses. Our Texas Park generated a segment operating loss of $18,945.

Corporate Expenses

Corporate spending increased by $47,353 to $316,801 during the three month period ended January 3, 2021, primarily due to higher compensation expense partially offset by lower professional fees.

Other Income, Net

Other income, net increased by $6,602, to $14,564, primarily as a result of mineral rights royalty income for our Texas Park, partially offset by lower interest income.

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Interest Expense

Interest expense for the three month period ended January 3, 2021 was $91,413, an increase of $73,692 compared to the three month period ended December 29, 2019, primarily as a result of debt incurred related to the Texas Park acquisition on April 27, 2020.

Income Taxes

For the three month period ended January 3, 2021, we reported pre-tax income of $318,635. For the fiscal year ending October 3, 2021 we expect to generate pre-tax income and to record a tax provision at a blended effective federal and state income tax rate of approximately 27.0%. Based on the year-to-date mix of federal and state income, we recorded an income tax expense of $90,700 for the three month period ended January 3, 2021.

Net Income and Income Per Share

For the three month period ended January 3, 2021, we reported net income of $227,935 or $0.00 per basic share and per fully diluted share, compared to a net loss of $89,151 or $(0.00) per basic share and per fully diluted share, for the three month period ended December 29, 2019, resulting in a net increase of $317,086. The increase in our net income is attributable to a $528,924 increase in segment income for our Georgia Park, a $32,950 decrease in the segment loss for our Missouri Park, as well as an increase of $6,602 in other income, partially offset by a segment loss of $18,945 for our Texas Park, a $47,353 increase in Corporate expenses, a $73,692 increase in interest expense, and a $111,400 increase in our income tax provision.

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. Historically, 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, requiring us to use cash generated from prior fiscal years, as well as borrowing on a seasonal basis, to fund operations and prepare our Parks for the busy season during the third and fourth quarters of our fiscal year. As a result of our improved cash position, during our 2020 and 2019 fiscal years we did not utilize any seasonal borrowing.

As a result of the initial negative impacts of the COVID-19 pandemic on our attendance revenues, we took actions to reduce spending while our Parks were closed to the public during the majority of April 2020. We also secured Paycheck Protection Program (“PPP”) loans primarily to support the payroll for our employees during the Park closures and uncertainties of when we would be able to reopen our Parks. The PPP was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27, 2020, and is administered by the U.S. Small Business Administration (the “SBA”). During the next twelve to eighteen months our focus will be on running our Parks in a manner that supports the health and safety of our guests, employees and animals, at the same time prudently managing our cash flows. Any significant slowdown in revenues or unusual capital outlays may require us to reduce spending and potentially seek additional capital.

Our working capital was $3.93 million as of January 3, 2021, compared to $3.86 million as of September 27, 2020. This increase in working capital primarily relates to cash flow provided by operating activities, partially offset by net cash used in capital investment spending during the three month period ended January 3, 2021.

Total loan debt, including current maturities, as of January 3, 2021 was $6.97 million compared to $7.02 million as of September 27, 2020. There were no borrowings on our Synovus Bank line of credit as of January 3, 2021 and September 27, 2020, respectively.

As of January 3, 2021, we had equity of $11.95 million and total loan debt of $6.97 million, resulting in a debt to equity ratio of 0.58 to 1.0 compared to 0.60 to 1.0 as of September 27, 2020.

Operating Activities

Net cash provided by operating activities was $393,356 for the three month period ended January 3, 2021, compared to cash used in operating activities of $47,056 for the three month period ended December 29, 2019, resulting in a net improvement of $440,412, primarily as a result of a higher net income and lower net working capital uses.

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Investing Activities

Net cash used in investing activities was $229,931 for the three month period ended January 3, 2021, compared to $142,315 for the three month period ended December 29, 2019, an increase of $87,616, primarily related to an increase in capital improvement spending at our Parks.

Financing Activities

Net cash used in financing activities was $53,519 for the three month period ended January 3, 2021, compared to net cash used in financing activities of $50,894 for the three month period ended December 29, 2019. In each period, cash used in financing activities was for scheduled payments against our 2018 Term Loan.

Subsequent Events

Subsequent to the period covered by this filing, on January 14, 2021, William Jump, a member of the Company’s Board of Directors, passed away.

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 September 27, 2020 includes additional information about us, and our operations, financial condition, 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 January 3, 2021 that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

21

PART II

ITEM 1. LEGAL PROCEEDINGS

We are not a party to any pending legal proceeding, nor are any of our properties 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 our business or has a material interest adverse to our business.

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 September 27, 2020. 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 COVID-19 pandemic and measures taken in response thereto may have a material negative impact on our business, results of operations and cash flows, and financial condition. The extent of the impact is dependent upon future developments, which are highly uncertain and difficult to predict.

In March 2020, the World Health Organization characterized COVID-19, a disease caused by a novel strain of a coronavirus, as a pandemic. The rapid spread of COVID-19 has resulted in governmental authorities throughout the United States implementing a variety of containment measures with the objective of slowing the spread of the virus, including travel restrictions, shelter-in-place orders and business shutdowns. The COVID-19 pandemic and these containment measures have the potential to have a material impact on the Company’s business.

We began to see a significant reduction in paid attendance at our Georgia and Missouri Parks beginning the week of March 9, 2020. Effective April 3, 2020, both Parks were closed to the public as a result of shelter-in-place mandates in Georgia and Missouri. Also note that prior to the Company’s acquisition of the Texas Park, its operations were also closed to the public for the majority of April 2020 due to a shelter-in-place mandate in Texas. In compliance with respective state issued guidelines, our Georgia Park reopened on May 1, 2020 and our Missouri Park reopened on May 4, 2020, with the drive-through portion of our Texas Park reopening on May 1, 2020 and the park fully reopened on May 15, 2020. Since we reopened each of our Parks, attendance levels at each facility were strong for the balance of our 2020 fiscal year, which has continued through the first quarter of our 2021 fiscal year. However, there is the potential for our attendance levels to decline after other attractions have reopened to full capacity once the COVID-19 pandemic has run its course or vaccines are in use and made widely available.

While our business has experienced a rebound subsequent to the reopening of our Parks, there may be longer-term negative impacts to our business, results of operations and cash flows, and financial condition as a result of the COVID-19 pandemic. These negative impacts include changes in customer behavior and preferences causing significant volatility or reductions in Park attendance, increases in operating expenses to comply with additional hygiene-related protocols, limitations in our ability to recruit and maintain staffing, limitations on our employees ability to work and travel, and significant changes in the economic or political conditions in the areas our Parks are located. Despite our efforts to manage these impacts, the ultimate impact may be material, and will depend on a number of factors beyond our control, including the duration and severity of the COVID-19 pandemic and actions by governmental authorities taken to contain its spread and mitigate its public health effects.

22

The extent and duration of longer-term impacts of the COVID-19 pandemic on customer perceptions of our Parks are largely uncertain and dependent upon future developments that cannot be accurately predicted. There is no recent historical precedent that provides insights into the longer-term impacts that the COVID-19 pandemic will have on consumer behavior. As a result, the ultimate impact is highly uncertain and subject to change. We do not yet know the full extent COVID-19 will have on our overall business, results of operations and cash flows, and financial position. COVID-19 and the resulting economic disruptions have also led to significant volatility in the capital markets. As a smaller public company, our ability to access cash is already difficult and the impacts of COVID-19 on capital markets has likely had negatively impacted our ability to raise additional capital at a reasonable cost.

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. In May 2018, Great Wolf Resorts opened an expansive lodge and indoor waterpark within 10 miles of our Georgia Park. In September 2017, the founder of Bass Pro Shops opened “Johnny Morris’ Wonders of Wildlife National Museum and Aquarium”, approximately 12 miles from our Missouri Park in Springfield, Missouri. Branson, Missouri is located just 45 minutes from our Missouri Park. There are a variety of animal attractions throughout southeastern Texas; the nearest is Franklin Drive Thru Safari, within a 35-40 minute drive of our Texas 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 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 $6.0 million of liability insurance per occurrence, which is capped at $10.0 million in aggregate. 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.

23

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

Our business plan includes expansion via the acquisition of additional local or regional theme parks and attractions, if attractive opportunities arise. 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.

The Company may require additional debt and equity financing to pursue its 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, key personnel 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.

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.

24

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 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, required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act, promulgated pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification by Chief Financial Officer, required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act, promulgated pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification by Chief Executive Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, promulgated pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	Certification by Chief Financial Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, promulgated pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

25

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.
February 9, 2021	By:	/s/ Dale Van Voorhis
		Dale Van Voorhis
		Chief Executive Officer
		(Principal Executive Officer)

26

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULES 13a-14(a)/15d-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Dale Van Voorhis, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Parks! America, Inc. (the “registrant”) for the quarter ended January 3, 2021; 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: 

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and 

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): 

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and 

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 

Date: February 9, 2021

/s/ Dale Van Voorhis

Dale Van Voorhis

Chief Executive Officer

(Principal Executive Officer)

Parks! America, Inc.

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULES 13a-14(a)/15d-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Todd R. White, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Parks! America, Inc. (the “registrant”) for the quarter ended January 3, 2021; 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: 

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and 

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): 

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and 

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 

Date: February 9, 2021

/s/ Todd R. White

Todd R. White

Chief Financial Officer

(Principal Financial Officer)

Parks! America, Inc.

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 January 3, 2021 (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: February 9, 2021

/s/ Dale Van Voorhis

Dale Van Voorhis

Chief Executive Officer

(Principal Executive Officer)

Parks! America, Inc.

Dated: February 9, 2021

/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.

XML

Document and Entity Information - shares	3 Months Ended
	Jan. 03, 2021	Feb. 08, 2021
Details
Registrant Name	PARKS AMERICA, INC
Registrant CIK	0001297937
Fiscal Year End	--10-03
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jan. 03, 2021
Document Transition Report	false
Entity File Number	000-51254
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	91-0626756
Entity Address, Address Line One	1300 Oak Grove Road
Entity Address, City or Town	Pine Mountain
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	31822
Entity Address, Address Description	Address, Including Zip Code of Principal Executive Offices
City Area Code	706
Local Phone Number	663-8744
Phone Fax Number Description	Issuer's telephone number
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		75,124,087
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1

XML

Consolidated Balance Sheets (unaudited) - USD ($)	Jan. 03, 2021	Sep. 27, 2020
ASSETS
Cash	$ 5,615,622	$ 5,505,716
Inventory	299,631	200,891
Prepaid expenses	195,570	148,732
Total current assets	6,110,823	5,855,339
Property and equipment, net	13,713,382	13,654,800
Other assets	12,144	12,144
Total assets	19,836,349	19,522,283
Liabilities
Accounts payable	145,442	178,485
Other current liabilities	764,939	599,390
Current portion of long-term debt, net	1,274,580	1,221,009
Total current liabilities	2,184,961	1,998,884
Long-term debt, net	5,697,446	5,797,392
Total liabilities	7,882,407	7,796,276
Stockholders' equity
Common Stock, Value, Issued	75,021	75,021
Capital in excess of par	4,889,316	4,889,316
Treasury stock	(3,250)	(3,250)
Retained earnings	6,992,855	6,764,920
Total stockholders' equity	11,953,942	11,726,007
Total liabilities and stockholders' equity	$ 19,836,349	$ 19,522,283

XML

Consolidated Balance Sheets (unaudited) - Parenthetical - $ / shares	Jan. 03, 2021	Sep. 27, 2020
Details
Common Stock, Shares Authorized	300,000,000	300,000,000
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares, Issued	75,021,537	75,021,537
Common Stock, Shares, Outstanding	75,021,537	75,021,537

XML

Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands	3 Months Ended
	Jan. 03, 2021	Dec. 29, 2019
Details
Net sales	$ 2,155,475	$ 983,408
Sale of animals	71,724	12,077
Total net sales	2,227,199	995,485
Cost of sales	259,995	126,860
Selling, general and administrative	1,399,845	851,217
Depreciation and amortization	167,200	117,500
Loss on disposal of operating assets	4,675	0
Income (loss) from operations	395,484	(100,092)
Other income, net	14,564	7,962
Interest expense	(91,413)	(17,721)
Income (loss) before income taxes	318,635	(109,851)
Income tax provision	90,700	(20,700)
Net income (loss)	$ 227,935	$ (89,151)
Income per share - basic and diluted	$ 0.00	$ (0.00)
Weighted average shares outstanding (in 000's) - basic and diluted	75,021	74,821

XML

Consolidated Statements Changes in Stockholders' Equity (unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Total
Stockholders' Equity at Sep. 29, 2019	$ 74,821	$ 4,855,516	$ (3,250)	$ 3,997,451	$ 8,924,538
Shares Outstanding at Sep. 29, 2019	74,821,537
Net Income (Loss)	$ 0	0	0	(89,151)	(89,151)
Stockholders' Equity at Dec. 29, 2019	$ 74,821	4,855,516	(3,250)	3,908,300	8,835,387
Shares Outstanding at Dec. 29, 2019	74,821,537
Stockholders' Equity at Sep. 27, 2020	$ 75,021	4,889,316	(3,250)	6,764,920	11,726,007
Shares Outstanding at Sep. 27, 2020	75,021,537
Net Income (Loss)	$ 0	0	0	227,935	227,935
Stockholders' Equity at Jan. 03, 2021	$ 75,021	$ 4,889,316	$ (3,250)	$ 6,992,855	$ 11,953,942
Shares Outstanding at Jan. 03, 2021	75,021,537

XML

Consolidated Statements of Cash Flows (unaudited) - USD ($)	3 Months Ended
	Jan. 03, 2021	Dec. 29, 2019
OPERATING ACTIVITIES:
Net income (loss)	$ 227,935	$ (89,151)
Reconciliation of net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization expense	167,200	117,500
Interest expense - debt financing cost amortization	1,978	560
Interest expense - loan discount amortization	4,640	0
Loss on disposal of operating assets	4,675	0
Changes in assets and liabilities
(Increase) decrease in inventory	(98,740)	(28,000)
(Increase) decrease in prepaid expenses	(46,838)	(74,823)
Increase (decrease) in accounts payable	(33,043)	(54,917)
Increase (decrease) in other current liabilities	165,549	81,775
Net cash provided by (used in) operating activities	393,356	(47,056)
INVESTING ACTIVITIES:
Acquisition of property and equipment	(245,365)	(142,315)
Proceeds from the disposition of property and equipment	15,434	0
Net cash used in investing activities	(229,931)	(142,315)
FINANCING ACTIVITIES:
Payments on 2018 Term Loan	(53,519)	(50,895)
Net cash used in financing activities	(53,519)	(50,895)
Net increase (decrease) in cash	109,906	(240,266)
Cash at beginning of period	5,505,716	3,787,815
Cash at end of period	5,615,622	3,547,549
Supplemental Cash Flow Information:
Cash paid for interest	99,743	17,120
Cash paid for income taxes	$ 0	$ 0

XML

Note 1 - Organization

3 Months Ended

Jan. 03, 2021

Notes

Note 1 - Organization

NOTE 1. ORGANIZATION

Parks! America, Inc. (“Parks!” or the “Company”) was originally incorporated on July 30, 1954 as Painted Desert Uranium & Oil Co., Inc. in Washington State. On October 1, 2002, Painted Desert Uranium & Oil Co., Inc. changed its name to Royal Pacific Resources, Inc. and its corporate domicile to the State of Nevada.

On December 19, 2003, Royal Pacific Resources, Inc. acquired the assets of Great Western Parks LLC pursuant to a Share Exchange Agreement that resulted in the Company assuming control and changing the corporate name to Great American Family Parks, Inc. The acquisition was accounted for as a reverse acquisition in which Great Western Parks was considered to be the acquirer of Royal Pacific Resources for reporting purposes. On June 11, 2008, the Company changed its name from Great American Family Parks, Inc. to Parks! America, Inc.

The Company owns and operates through wholly owned subsidiaries three regional theme parks and is in the business of acquiring, developing and operating local and regional theme parks and attractions in the United States. The Company’s wholly owned subsidiaries are Wild Animal Safari, Inc. a Georgia corporation (“Wild Animal – Georgia”), Wild Animal, Inc., a Missouri corporation (“Wild Animal – Missouri”), and Aggieland-Parks, Inc., a Texas corporation (“Aggieland Wild Animal – Texas”). Wild Animal – Georgia owns and operates the Wild Animal Safari theme park in Pine Mountain, Georgia (the “Georgia Park”). Wild Animal – Missouri owns and operates the Wild Animal Safari theme park located in Strafford, Missouri (the “Missouri Park”). Aggieland Wild Animal – Texas owns and operates the Aggieland Wild Animal Safari theme park near Bryan/College Station, Texas (the “Texas Park”). The Company acquired the Georgia Park on June 13, 2005, the Missouri Park on March 5, 2008, and the Texas Park on April 27, 2020.

The Parks are open year round but experience increased seasonal attendance, typically beginning in the latter half of March through early September. As a result, our combined third and fourth quarter net sales have historically ranged from 68% to 72% of our annual net sales.

COVID-19

In March 2020, the World Health Organization characterized COVID-19, a disease caused by a novel strain of a coronavirus, as a pandemic. The rapid spread of COVID-19 has resulted in governmental authorities throughout the United States implementing a variety of containment measures with the objective of slowing the spread of the virus, including travel restrictions, shelter-in-place orders and business shutdowns. The COVID-19 pandemic and these containment measures have had, and could continue to have, a material impact on the Company’s business.

The rapid acceleration of the COVID-19 pandemic in the United States occurred at the beginning of the Company’s annual high season. The Company began to see a significant reduction in paid attendance at its Georgia and Missouri Parks beginning the week of March 9, 2020. Effective April 3, 2020, the Company’s Georgia and Missouri Parks were closed as a result of shelter-in-place mandates in Georgia and Missouri. Also note that prior to the Company’s acquisition of the Texas Park, its operations were suspended for the majority of April 2020 due to a shelter-in-place mandate in Texas.

In compliance with respective state issued guidelines, the Georgia Park and the Texas Park each reopened on May 1, 2020, and the Missouri Park reopened on May 4, 2020. Subsequent to reopening, attendance levels were strong at each of the Company’s three Parks for the balance of its 2020 fiscal year, which has continued through the first three months of its 2021 fiscal year. However, there may be longer-term negative impacts to the Company’s business, results of operations and cash flows, and financial condition as a result of the COVID-19 pandemic. These negative impacts include changes in customer behavior and preferences causing significant volatility or reductions in Park attendance, increases in operating expenses to comply with additional hygiene-related protocols, limitations in our ability to recruit and maintain staffing, limitations on our employees ability to work and travel, and significant changes in the economic or political conditions in the areas the Company’s Parks are located. Despite the Company’s efforts to manage these impacts, the ultimate impact may be material, and will depend on a number of factors beyond its control, including the duration and severity of the COVID-19 pandemic and actions by governmental authorities taken to contain its spread and mitigate its public health effects.

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Note 2 - Significant Accounting Policies

3 Months Ended

Jan. 03, 2021

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 ended January 3, 2021 and December 29, 2019 are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes that the disclosures made are adequate to make the information presented not misleading. The information reflects all adjustments that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods set forth herein. In the opinion of management interim results reflect all normal and recurring adjustments, and are not necessarily indicative of the results for a full fiscal year.

These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 27, 2020.

Principles of Consolidation: The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries (Wild Animal – Georgia, Wild Animal – Missouri and Aggieland Wild Animal – Texas). 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 2021 fiscal year, October 3 will be the closest Sunday, and for 2020 fiscal year, September 27 was the closest Sunday. The 2021 fiscal year will be comprised of 53-weeks, while the 2020 fiscal year was comprised of 52-weeks. This fiscal calendar aligns the Company’s fiscal periods 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.

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 January 3, 2021 and September 27, 2020, respectively.

Inventory: Inventory consists of gift shop items, animal food, and concession and park supplies, and is stated at the lower of cost or net realizable value. Cost is determined on the first-in, first-out method. The gross profit method is used to determine the change in gift shop inventory for interim periods. Inventories are reviewed and reconciled annually, because inventory levels turn over rapidly. The Company had inventory of $299,631 and $200,891 as of January 3, 2021 and September 27, 2020, respectively.

Property and Equipment: Property and equipment are 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.

	January 3, 2021		September 27, 2020		Depreciable Lives
Land	$	6,389,470	$	6,389,470	not applicable
Mineral rights		276,000		276,000	25 years
Ground improvements		2,334,172		2,334,172	7-25 years
Buildings and structures		3,798,098		3,798,098	10-39 years
Animal shelters and habitats		2,098,947		2,098,947	10-39 years
Park animals		1,147,833		1,166,583	5-10 years
Equipment - concession and related		232,281		232,281	3-15 years
Equipment and vehicles - yard and field		556,168		556,168	3-15 years
Vehicles - buses and rental		237,075		237,075	3-5 years
Rides and entertainment		224,578		224,578	5-7 years
Furniture and fixtures		26,057		26,057	5-10 years
Projects in process		277,905		34,290
Property and equipment, cost		17,598,584		17,373,719
Less accumulated depreciation		(3,885,202)		(3,718,919)
Property and equipment, net	$	13,713,382	$	13,654,800

Depreciation expense for the three months ended January 3, 2021 and December 29, 2019 totaled $167,200 and $117,300, respectively.

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:

	January 3, 2021		September 27, 2020
Deferred revenue	$	299,254	$	273,386
Accrued wages and payroll taxes		182,243		42,774
Accrued income taxes		138,602		46,402
Accrued sales taxes		50,759		69,101
Accrued property taxes		931		68,530
Other accrued liabilities		93,150		99,197
Other current liabilities	$	764,939	$	599,390

Financial Instruments: The carrying amounts of financial instruments are considered by management to be their estimated fair values due to their short-term maturities or due to the fact they were entered into during the Company’s 2020 fiscal year. Securities that are publicly traded are valued at their fair market value as of the balance sheet date presented.

Revenue Recognition: The Company recognizes revenues in accordance with ASC 606, Revenues from Contracts with Customers. Under ASC 606, the Company recognizes revenue when a customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocation the transaction price to the performance obligation in the contract; and (5) recognize revenue when (or as) the Company satisfies the performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer.

Revenues from park admission fees are recognized at the point in time control transfers to the customer, which is generally when the customer accepts access to the park and the Company is entitled to payment. Park admission fee revenues from advance online ticket purchases are deferred until the customers’ visit to the parks. Revenues from retail and concession sales are generally recognized upon the concurrent receipt of payment and delivery of goods to the customer. Sales taxes billed and collected are not included in revenue.

The Company periodically sells surplus animals created from the natural breeding process that occurs within the parks. All animal sales are reported as a separate revenue line item. Animal sales are recognized at a point in time when control transfer to the customer, which is generally determined when title, ownership and risk of loss pass to the customer, all of which generally occurs upon delivery of the animal. Based on the Company’s assessment of control indicators, sales are recognized when animals are delivered to the customer.

The Company provides disaggregation of revenue based on geography in “NOTE 10: BUSINESS SEGMENTS”, as it believes this best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

Deferred revenues from advance online admission tickets were $299,254 and $273,386 as of January 3, 2021 and September 27, 2020, respectively, and are included within Other Current Liabilities in the accompanying consolidated balance sheets.

Advertising and Marketing Costs: The Company expenses advertising and marketing costs as incurred. Advertising and marketing expense for the three months ended January 3, 2021 and December 29, 2019 totaled $212,145 and $121,338, respectively.

Stock Based Compensation: The Company recognizes stock based compensation costs on a straight-line basis over the requisite service period associated with the grant. The Company awards shares to its Board of Directors for service on the Board. The shares issued to the Board are “restricted” and are not to be re-sold unless an exemption is available, such as the exemption afforded by Rule 144 promulgated under the Securities Act of 1933, as amended (the “Securities Act”). The Company recognizes the expense based on the fair market value at time of the grant. The Company typically awards its annual Director compensation around the end of each calendar year.

A Stock Option and Award Plan (the “Plan”) providing for incentive stock options and performance bonus awards for executives, employees, and directors was approved by the Company’s Board of Directors on February 1, 2005, however, the Plan has not been submitted to the stockholders for approval. The Plan sets aside five million (5,000,000) shares for award of stock options, including qualified incentive stock options and performance stock bonuses. To date, no grants or awards have been made pursuant to the Plan and the Company did not submit the Plan for consideration to the Company’s stockholders at its last meeting of stockholders.

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.

A tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than fifty percent likely of being realized on examination. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. The Company has no unrecognized tax benefits under guidance related to tax uncertainties. The Company does not anticipate the unrecognized tax benefits will significantly change in the next twelve months. Any tax penalties or interest expense will be recognized in income tax expense. No interest and penalties related to unrecognized tax benefits were accrued as of January 3, 2021 or September 27, 2020.

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 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 applicable weighted average number of common shares outstanding in each period.

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

Recent Accounting Pronouncements:

Income Taxes

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes (“Update 2019-12”), which removes certain exceptions for investments, intraperiod allocations and interim tax calculations, and adds guidance to reduce the complexity in accounting for income taxes. Update 2019-12 is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The various amendments in Update 2019-12 are applied on a retrospective basis, modified retrospective basis and prospective basis, depending upon the amendment. The Company is in the process of evaluating the impact of this amendment on its consolidated financial statements; however, it is not anticipated to be material.

Financial Instruments – Credit Losses

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASC 2016-16 is effective for annual reporting periods beginning after December 15, 2023, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company has determined this ASU will not have a material impact on its consolidated financial statements and related disclosures.

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional relief through specific exceptions and practical expedients for transitioning away from reference rates that are expected to be discontinued. The relief generally applies to eligible modifications of contractual terms that change (or have the potential to change) the amount or timing of contractual cash flows related to replacement of a reference rate. The relief allows such modifications to be accounted for as continuations of existing contracts without additional analysis. The optional relief is available from March 2020 through December 31, 2022. The The Company has determined this ASU will not have a material impact on its consolidated financial statements and related disclosures.

Equity Securities, Equity Method Investments and Certain Derivatives

In January 2020, the FASB issued ASU 2020-01, Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815. This ASU clarifies the interaction between accounting standards related to equity securities, equity method investments and certain derivatives. The effective date of the standard will be for annual periods beginning after December 15, 2020, and interim periods within those fiscal years. The Company has determined this ASU will not have a material impact on its consolidated financial statements and related disclosures.

Except as noted, 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. ACQUISITION

3 Months Ended

Jan. 03, 2021

Notes

NOTE 3. ACQUISITION

NOTE 3. ACQUISITION

On April 27, 2020, the Company, through a newly formed subsidiary, Aggieland-Parks, Inc., a Texas corporation, acquired substantially all the assets of Aggieland Safari LLC, Ferrill Creek Ranch LLC, and Vernell Investments LLC (combined the “Aggieland Assets”), primarily consisting of the Aggieland Safari Adventure Zoo and Safari Park (“Aggieland Safari”), including animal inventory, real estate, mineral rights, and certain equipment and other assets necessary to operate Aggieland Wild Animal – Texas. Aggieland Wild Animal – Texas is situated on 250 acres of a 450-acre property, located approximately 25 miles northeast of Bryan/College Station, Texas and 120 miles northwest of downtown Houston. The total purchase price for the Aggieland Assets was $7,102,000, after determination of the fair value of the seller note. The transaction was financed with a $5,000,000 loan (the “2020 Term Loan”) from First Financial Bank, N.A. (“First Financial”), a seller note with a face value of $750,000 (the “Aggieland Seller Note”), and cash totaling $1,375,000. The 2020 Term Loan is secured by substantially all of the Aggieland Assets, as well as guarantees from the Company and its subsidiaries. The 2020 Term Loan bears interest at a rate of 5.0% per annum, has a maturity date of April 27, 2031, with interest only payable monthly through April 2021. The Aggieland Seller Note represents a deferred portion of the purchase price, bears no interest, has a maturity date of June 30, 2021, and is secured by a second priority subordinated lien and security interest in the acquired mineral rights and the animal inventory. The Company applied a 2.5% discount rate to determine a fair value of $728,500 for the Aggieland Seller Note as of April 27, 2020.

The following table sets forth the purchase consideration paid to the members of Aggieland Safari and the amount of assets acquired and liabilities assumed as of the acquisition date:

Sources of consideration paid to Aggieland Safari Members:
Cash advances	$	125,000
Cash at closing		1,250,000
2020 Term Loan		5,000,000
Aggieland Seller Note		728,500
Less cash received		(1,500)
Total consideration	$	7,102,000
Purchase price allocation:
Inventories	$	10,000
Property and equipment		7,131,000
Deferred revenue		(39,000)
Total net assets acquired	$	7,102,000

The purchase price has been allocated based on an estimate of the fair value of assets acquired and liabilities assumed as of the acquisition date. The determination of estimated fair value requires management to make significant estimates and assumptions.

The following table presents supplemental pro forma information for the three month period ended December 29, 2019 as if the acquisition had occurred at the beginning of the Company’s 2019 fiscal year. The unaudited pro forma information includes adjustments for depreciation expense on property and equipment acquired, interest expense on debt incurred related to the acquisition, and the related income tax effects, as well as the elimination of property and equipment impairment charges recorded by Aggieland Safari prior to the acquisition. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected at the beginning of the Company’s 2019 fiscal year.

	For the three months ended December 29, 2019
Total net sales	$	1,331,998
Net loss	$	(218,378)
Income per share - basic and diluted	$	(0.00)

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NOTE 4. LONG-TERM DEBT

3 Months Ended

Jan. 03, 2021

Notes

NOTE 4. LONG-TERM DEBT

NOTE 4. LONG-TERM DEBT

On April 27, 2020, the Company acquired Aggieland Wild Animal – Texas, see “NOTE 3. ACQUISITION”, financing the transaction with the 2020 Term Loan from First Financial and the Aggieland Seller Note. The 2020 Term Loan in the original principal amount of $5,000,000 from First Financial is secured by substantially all of the Aggieland Wild Animal – Texas assets, as well as guarantees from the Company and its subsidiaries. The 2020 Term Loan bears interest at a rate of 5.0% per annum, has a maturity date of April 27, 2031, with interest only payable monthly through April 2021. The Company paid a total of approximately $62,375 in fees and expenses in connection with the 2020 Term Loan. The Aggieland Seller Note represents a deferred portion of the purchase price, has a face value of $750,000, bears no interest, has a maturity date of June 30, 2021, and is secured by a second priority subordinated lien and security interest in the acquired mineral rights and the animal inventory. The Company applied a 2.5% discount rate to determine a fair value of $728,500 for the Aggieland Seller Note as of April 27, 2020 and the resulting $21,500 discount will be amortized as interest expense over the 14 month period until the note matures. Including the remaining unamortized discount, the recorded value of the Aggieland Seller Note as of January 3, 2021 was $740,655.

On July 11, 2018, the Company, through its wholly owned subsidiary Wild Animal – Georgia, completed a refinancing transaction (the “2018 Refinancing”) with Synovus Bank (“Synovus”). The 2018 Refinancing included a term loan in the original principal amount of $1,600,000 (the “2018 Term Loan”). The 2018 Term Loan bears interest at a rate of 5.0% per annum and is payable in monthly payments of approximately $22,672, based on a seven year amortization period. The 2018 Term Loan has a maturity date of June 11, 2021, with an option to renew at 5.0% per annum for an additional 49-month term. The 2018 Term Loan is secured by a security deed on the assets of Wild Animal – Georgia. The Company paid a total of approximately $15,680 in fees and expenses in connection with the 2018 Refinancing. The outstanding balance of the 2018 Term Loan was $1,110,594 as of January 3, 2021.

As a result of the initial negative economic impacts and uncertainties caused by the COVID-19 pandemic, Wild Animal – Georgia and Wild Animal – Missouri each applied for Paycheck Protection Program (“PPP”) loans. On April 14, 2020 and April 16, 2020, the Company received two unsecured PPP loans totaling $188,087. Including accrued interest, the principal outstanding on the Company’s PPP loans was $189,451 as of January 3, 2021. The PPP was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27, 2020, and is administered by the U.S. Small Business Administration (the “SBA”). The term of the PPP loans is two years, with an interest rate of 1.0% per annum. All payments are deferred for the first twelve months of these PPP loans, with accrued interest being added to the principal during the payment deferral period. After the initial twelve-month deferral period, monthly principal and interest payments will be due until maturity for any portion of the PPP loans not forgiven. Under the terms of the CARES Act, some or all of the PPP loan proceeds are eligible to be forgiven. The amount of the PPP loans eligible to be forgiven are based on the use of the proceeds for payroll costs, mortgage interest, rent or utility costs, and the maintenance of employee and compensation levels, subject to limitations and ongoing rulemaking by the SBA. While not assured, the Company believes a substantial portion of its PPP loan proceeds were used for costs that are eligible for forgiveness, based on the current SBA guidelines. The Company will continue to account for its PPP loans under their defined terms until such time as forgiveness is granted by the SBA.

Interest expense of $91,413 and $17,721 for the three months ended January 3, 2021 and December 29, 2019, respectively, includes $1,978 and $560, respectively, of amortization of debt closing costs in each period. In addition, interest expense for the three months ended January 3, 2021 includes $4,640 of loan discount amortization.

The following table represents the aggregate of the Company’s outstanding long-term debt:

	As of
	January 3, 2021		September 27, 2020
Loan principal outstanding	$	7,040,700	$	7,089,053
Less: unamortized debt financing costs		(68,674)		(70,652)
Gross long-term debt		6,972,026		7,018,401
Less current portion of long-term debt,
net of unamortized costs and discount		(1,274,580)		(1,221,009)
Long-term debt	$	5,697,446	$	5,797,392

As of January 3, 2021, the scheduled future principal maturities of the Company’s long-term debt by fiscal year are as follows:

2021		1,127,929
2022		755,927
2023		661,976
2024		696,466
2025		688,895
thereafter		3,109,507
Total	$	7,040,700

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NOTE 5. LINES OF CREDIT

3 Months Ended

Jan. 03, 2021

Notes

NOTE 5. LINES OF CREDIT

NOTE 5. LINE OF CREDIT

On July 11, 2018, the Company, through its wholly owned subsidiary Wild Animal – Georgia, completed the 2018 Refinancing with Synovus. The 2018 Refinancing includes a line of credit of up to $350,000 (the “2018 LOC”). The 2018 LOC bears interest at a rate of 4.75% and interest only payments are due monthly. The 2018 LOC is secured by a security deed on the assets of Wild Animal – Georgia. The 2018 LOC matures on July 11, 2021, with an option to renew for an additional three-year term. If necessary, the Company intends to utilize the 2018 LOC to fund seasonal working capital needs. As of January 3, 2021 and September 27, 2020, respectively, there was no outstanding balance against the Company’s LOC. When applicable, any advance on a Company LOC is recorded as a current liability.

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NOTE 6. STOCKHOLDERS' EQUITY

3 Months Ended

Jan. 03, 2021

Notes

NOTE 6. STOCKHOLDERS' EQUITY

NOTE 6. STOCKHOLDERS’ EQUITY

Shares of common stock issued for service to the Company are valued based on market price on the date of the award.

On December 18, 2020, the Company declared its annual compensation award to six Directors for their service on the Board of Directors. Each Director was awarded $10,000, to be paid all in shares, all in cash or a combination thereof, at each Director’s election. Four Directors elected to receive all shares of the Company’s common stock, one Director elected to receive 50% in shares and 50% in cash, and one Director elected all cash. Based on the closing stock price of $0.4388 per share on December 18, 2020, a total of 102,550 shares were distributed on January 11, 2021. The total compensation award cost of $60,000 was reported as an expense in the first quarter of the 2021 fiscal year.

On December 5, 2019, the Company declared its annual compensation award to four Directors for their service on the Board of Directors. Each Director was awarded $8,500, to be paid all in shares, all in cash or a combination thereof, at each Director’s election. All four Directors elected to receive shares of the Company’s common stock, totaling 50,000 each, based on the closing stock price of $0.17 per share on December 5, 2019. The total award cost of $34,000 was reported as an expense in the first quarter of the 2020 fiscal year, and the Company distributed each award on January 8, 2020.

Officers, Directors and their controlled entities own approximately 52.6% of the outstanding common stock of the Company as of January 3, 2021.

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Note 7. - Significant Transactions With Related Parties

3 Months Ended

Jan. 03, 2021

Notes

Note 7. - Significant Transactions With Related Parties

NOTE 7. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES

Employment Agreements:

Effective as of June 1, 2020, the Company and Dale Van Voorhis, the Company’s Chairman and Chief Executive Officer, entered into an employment agreement (the “2020 Van Voorhis Employment Agreement”). Pursuant to the 2020 Van Voorhis Employment Agreement, Mr. Van Voorhis receives an initial base annual compensation in the amount of $100,000 per year, subject to annual review by the Board of Directors. The 2020 Van Voorhis Employment Agreement has a term of two years and entitles Mr. Van Voorhis to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company.

Effective as of January 1, 2019, the Company and Todd R. White, the Company’s Chief Financial Officer, entered into an employment agreement (the “2019 White Employment Agreement”). The 2019 White Employment Agreement has a term of three years, with minimum annual compensation of $70,000 in year one, $75,000 in year two and $80,000 in year three. Effective January 1, 2021, Mr. White’s annual compensation was changed to $90,000. Mr. White is also entitled to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company.

Effective as of May 1, 2018, the Company entered into an employment agreement with Michael D. Newman (the “Newman Employment Agreement”) to serve as the Company’s Vice President of Safari Operations. Mr. Newman had been the general manager of Wild Animal – Georgia since February 2011. Pursuant to the Newman Employment Agreement, Mr. Newman received an initial base annual compensation of $95,000 per year, subject to annual review by the Board of Directors. Mr. Newman also received a $5,000 signing bonus. Effective as of May 1, 2020, Mr. Newman’s annual compensation was changed to $108,000. The Newman Employment Agreement has a term of five years and entitles Mr. Newman to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company.

As of January 3, 2021, the Company has not adopted any deferred compensation plans. Each of the foregoing employment agreements contains provisions for severance compensation in the event an agreement is (i) terminated early by the Company without cause ($241,667 in aggregate) or (ii) in the event of a change in control of the Company ($506,667 in aggregate), as well as disability and death payment provisions ($141,500 in aggregate).

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Note 8. - Income Taxes

3 Months Ended

Jan. 03, 2021

Notes

Note 8. - Income Taxes

NOTE 8. INCOME TAXES

For the three month period ended January 3, 2021, the Company reported pre-tax income of $318,635. For the fiscal year ending October 3, 2021, the Company expects to generate pre-tax income and to record a tax provision at a blended effective federal and state income tax rate of approximately 27.0%. The Company recorded a net income tax provision of $90,700 for the three month period ended January 3, 2021, comprised of a federal expense of $60,700 and a State of Georgia expense of $30,000. The Company’s net income tax provision for the three month period ended December 29, 2019 was a tax benefit of $20,700, comprised of a federal benefit of $23,900 and a State of Georgia expense of $3,200.

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NOTE 9. COMMITMENTS AND CONTINGENCIES

3 Months Ended

Jan. 03, 2021

Notes

NOTE 9. COMMITMENTS AND CONTINGENCIES

NOTE 9. COMMITMENTS AND CONTINGENCIES

On May 21, 2019, the Company’s Missouri Park was struck by a tornado and sustained property damage, primarily to the “walk about”, the more traditional zoo-like section of the park, as well as to several auxiliary buildings. The park was closed at the time of this event and no employees were injured. While a few animals sustained non-life threatening injuries, no animals were killed or escaped.

As a result of the tornado damage, through September 29, 2019, the Company had written-off $56,339 related to the net book value of property destroyed and damaged, and incurred $24,105 of cleanup and repair expenses. Through September 29, 2019, the Company had capitalized $66,376 of expenditures related to improvements associated with the tornado damage. The Company capitalized an additional $71,478 of improvements associated with the tornado damage during the year ended September 27, 2020. On April 15, 2020, the Company received $24,373 of insurance proceeds, partially offsetting the costs and expenses incurred in the recovery from the tornado damage.

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

3 Months Ended

Jan. 03, 2021

Notes

NOTE 10. BUSINESS SEGMENTS

NOTE 10. BUSINESS SEGMENTS

The Company manages its operations on an individual location basis. Discrete financial information is maintained for each Park and provided to management for review and as a basis for decision-making. The primary performance measures used to allocate resources are Park earnings before interest and tax expense, and free cash flow.

The following tables present financial information regarding each of the Company’s reportable segments:

	For the three months ended
	January 3, 2021			December 29, 2019
Total net sales:
Georgia	$	1,569,011	$	898,436
Missouri		220,028		97,049
Texas		438,160		-
Consolidated	$	2,227,199	$	995,485
Income (loss) before income taxes:
Georgia	$	861,697	$	332,773
Missouri		(130,467)		(163,417)
Texas		(18,945)		-
Segment total		712,285		169,356
Corporate		(316,801)		(269,448)
Other income, net		14,564		7,962
Interest expense		(91,413)		(17,721)
Consolidated	$	318,635	$	(109,851)
	As of
	January 3, 2021		September 27, 2020
Total assets:
Georgia	$	8,928,183	$	8,352,457
Missouri		2,965,927		3,120,166
Texas		7,788,823		7,919,577
Corporate		153,416		130,083
Consolidated	$	19,836,349	$	19,522,283

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NOTE 11. SUBSEQUENT EVENTS

3 Months Ended

Jan. 03, 2021

Notes

NOTE 11. SUBSEQUENT EVENTS

NOTE 11. SUBSEQUENT EVENTS

The Company has analyzed its operations subsequent to January 3, 2021 to the date these financial statements were issued and has determined that no material subsequent events have occurred from the date of these unaudited consolidated financial statements through the date of filing. However, subsequent to the period covered by this filing, on January 14, 2021, William Jump, a member of the Company’s Board of Directors, passed away.

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Note 2 - Significant Accounting Policies: Basis of Presentation (Policies)

3 Months Ended

Jan. 03, 2021

Policies

Basis of Presentation

Basis of Presentation: The Company’s unaudited consolidated financial statements for the three months ended January 3, 2021 and December 29, 2019 are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes that the disclosures made are adequate to make the information presented not misleading. The information reflects all adjustments that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods set forth herein. In the opinion of management interim results reflect all normal and recurring adjustments, and are not necessarily indicative of the results for a full fiscal year.

These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 27, 2020.

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Note 2 - Significant Accounting Policies: Principles of Consolidation (Policies)

3 Months Ended

Jan. 03, 2021

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, Wild Animal – Missouri and Aggieland Wild Animal – Texas). All material inter-company accounts and transactions have been eliminated in consolidation.

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Note 2 - Significant Accounting Policies: Accounting Method (Policies)

3 Months Ended

Jan. 03, 2021

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)

3 Months Ended

Jan. 03, 2021

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)

3 Months Ended

Jan. 03, 2021

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 2021 fiscal year, October 3 will be the closest Sunday, and for 2020 fiscal year, September 27 was the closest Sunday. The 2021 fiscal year will be comprised of 53-weeks, while the 2020 fiscal year was comprised of 52-weeks. This fiscal calendar aligns the Company’s fiscal periods 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: Financial and Concentrations Risk (Policies)

3 Months Ended

Jan. 03, 2021

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)

3 Months Ended

Jan. 03, 2021

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 January 3, 2021 and September 27, 2020, respectively.

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Note 2 - Significant Accounting Policies: Inventory (Policies)

3 Months Ended

Jan. 03, 2021

Policies

Inventory

Inventory: Inventory consists of gift shop items, animal food, and concession and park supplies, and is stated at the lower of cost or net realizable value. Cost is determined on the first-in, first-out method. The gross profit method is used to determine the change in gift shop inventory for interim periods. Inventories are reviewed and reconciled annually, because inventory levels turn over rapidly. The Company had inventory of $299,631 and $200,891 as of January 3, 2021 and September 27, 2020, respectively.

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Note 2 - Significant Accounting Policies: Property and Equipment (Policies)

3 Months Ended

Jan. 03, 2021

Policies

Property and Equipment

Property and Equipment: Property and equipment are 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.

	January 3, 2021		September 27, 2020		Depreciable Lives
Land	$	6,389,470	$	6,389,470	not applicable
Mineral rights		276,000		276,000	25 years
Ground improvements		2,334,172		2,334,172	7-25 years
Buildings and structures		3,798,098		3,798,098	10-39 years
Animal shelters and habitats		2,098,947		2,098,947	10-39 years
Park animals		1,147,833		1,166,583	5-10 years
Equipment - concession and related		232,281		232,281	3-15 years
Equipment and vehicles - yard and field		556,168		556,168	3-15 years
Vehicles - buses and rental		237,075		237,075	3-5 years
Rides and entertainment		224,578		224,578	5-7 years
Furniture and fixtures		26,057		26,057	5-10 years
Projects in process		277,905		34,290
Property and equipment, cost		17,598,584		17,373,719
Less accumulated depreciation		(3,885,202)		(3,718,919)
Property and equipment, net	$	13,713,382	$	13,654,800

Depreciation expense for the three months ended January 3, 2021 and December 29, 2019 totaled $167,200 and $117,300, respectively.

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Note 2 - Significant Accounting Policies: Impairment of Long-Lived Assets (Policies)

3 Months Ended

Jan. 03, 2021

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)

3 Months Ended

Jan. 03, 2021

Policies

Other Current Liabilities

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

	January 3, 2021		September 27, 2020
Deferred revenue	$	299,254	$	273,386
Accrued wages and payroll taxes		182,243		42,774
Accrued income taxes		138,602		46,402
Accrued sales taxes		50,759		69,101
Accrued property taxes		931		68,530
Other accrued liabilities		93,150		99,197
Other current liabilities	$	764,939	$	599,390

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Note 2 - Significant Accounting Policies: Financial Instruments (Policies)

3 Months Ended

Jan. 03, 2021

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 or due to the fact they were entered into during the Company’s 2020 fiscal year. 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)

3 Months Ended

Jan. 03, 2021

Policies

Revenue Recognition

Revenue Recognition: The Company recognizes revenues in accordance with ASC 606, Revenues from Contracts with Customers. Under ASC 606, the Company recognizes revenue when a customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocation the transaction price to the performance obligation in the contract; and (5) recognize revenue when (or as) the Company satisfies the performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer.

Revenues from park admission fees are recognized at the point in time control transfers to the customer, which is generally when the customer accepts access to the park and the Company is entitled to payment. Park admission fee revenues from advance online ticket purchases are deferred until the customers’ visit to the parks. Revenues from retail and concession sales are generally recognized upon the concurrent receipt of payment and delivery of goods to the customer. Sales taxes billed and collected are not included in revenue.

The Company periodically sells surplus animals created from the natural breeding process that occurs within the parks. All animal sales are reported as a separate revenue line item. Animal sales are recognized at a point in time when control transfer to the customer, which is generally determined when title, ownership and risk of loss pass to the customer, all of which generally occurs upon delivery of the animal. Based on the Company’s assessment of control indicators, sales are recognized when animals are delivered to the customer.

The Company provides disaggregation of revenue based on geography in “NOTE 10: BUSINESS SEGMENTS”, as it believes this best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

Deferred revenues from advance online admission tickets were $299,254 and $273,386 as of January 3, 2021 and September 27, 2020, respectively, and are included within Other Current Liabilities in the accompanying consolidated balance sheets.

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Note 2 - Significant Accounting Policies: Advertising and Market Development (Policies)

3 Months Ended

Jan. 03, 2021

Policies

Advertising and Market Development

Advertising and Marketing Costs: The Company expenses advertising and marketing costs as incurred. Advertising and marketing expense for the three months ended January 3, 2021 and December 29, 2019 totaled $212,145 and $121,338, respectively.

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Note 2 - Significant Accounting Policies: Stock Based Compensation (Policies)

3 Months Ended

Jan. 03, 2021

Policies

Stock Based Compensation

Stock Based Compensation: The Company recognizes stock based compensation costs on a straight-line basis over the requisite service period associated with the grant. The Company awards shares to its Board of Directors for service on the Board. The shares issued to the Board are “restricted” and are not to be re-sold unless an exemption is available, such as the exemption afforded by Rule 144 promulgated under the Securities Act of 1933, as amended (the “Securities Act”). The Company recognizes the expense based on the fair market value at time of the grant. The Company typically awards its annual Director compensation around the end of each calendar year.

A Stock Option and Award Plan (the “Plan”) providing for incentive stock options and performance bonus awards for executives, employees, and directors was approved by the Company’s Board of Directors on February 1, 2005, however, the Plan has not been submitted to the stockholders for approval. The Plan sets aside five million (5,000,000) shares for award of stock options, including qualified incentive stock options and performance stock bonuses. To date, no grants or awards have been made pursuant to the Plan and the Company did not submit the Plan for consideration to the Company’s stockholders at its last meeting of stockholders.

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Note 2 - Significant Accounting Policies: Income Taxes (Policies)

3 Months Ended

Jan. 03, 2021

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.

A tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than fifty percent likely of being realized on examination. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. The Company has no unrecognized tax benefits under guidance related to tax uncertainties. The Company does not anticipate the unrecognized tax benefits will significantly change in the next twelve months. Any tax penalties or interest expense will be recognized in income tax expense. No interest and penalties related to unrecognized tax benefits were accrued as of January 3, 2021 or September 27, 2020.

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Note 2 - Significant Accounting Policies: Basic and Diluted Net Income (Loss) Per Share (Policies)

3 Months Ended

Jan. 03, 2021

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 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 applicable weighted average number of common shares outstanding in each period.

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Note 2 - Significant Accounting Policies: Dividend Policy (Policies)

3 Months Ended

Jan. 03, 2021

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)

3 Months Ended

Jan. 03, 2021

Policies

Recent Accounting Pronouncements

Recent Accounting Pronouncements:

Income Taxes

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes (“Update 2019-12”), which removes certain exceptions for investments, intraperiod allocations and interim tax calculations, and adds guidance to reduce the complexity in accounting for income taxes. Update 2019-12 is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The various amendments in Update 2019-12 are applied on a retrospective basis, modified retrospective basis and prospective basis, depending upon the amendment. The Company is in the process of evaluating the impact of this amendment on its consolidated financial statements; however, it is not anticipated to be material.

Financial Instruments – Credit Losses

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASC 2016-16 is effective for annual reporting periods beginning after December 15, 2023, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company has determined this ASU will not have a material impact on its consolidated financial statements and related disclosures.

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional relief through specific exceptions and practical expedients for transitioning away from reference rates that are expected to be discontinued. The relief generally applies to eligible modifications of contractual terms that change (or have the potential to change) the amount or timing of contractual cash flows related to replacement of a reference rate. The relief allows such modifications to be accounted for as continuations of existing contracts without additional analysis. The optional relief is available from March 2020 through December 31, 2022. The The Company has determined this ASU will not have a material impact on its consolidated financial statements and related disclosures.

Equity Securities, Equity Method Investments and Certain Derivatives

In January 2020, the FASB issued ASU 2020-01, Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815. This ASU clarifies the interaction between accounting standards related to equity securities, equity method investments and certain derivatives. The effective date of the standard will be for annual periods beginning after December 15, 2020, and interim periods within those fiscal years. The Company has determined this ASU will not have a material impact on its consolidated financial statements and related disclosures.

Except as noted, 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)

3 Months Ended

Jan. 03, 2021

Tables/Schedules

Property, Plant and Equipment

	January 3, 2021		September 27, 2020		Depreciable Lives
Land	$	6,389,470	$	6,389,470	not applicable
Mineral rights		276,000		276,000	25 years
Ground improvements		2,334,172		2,334,172	7-25 years
Buildings and structures		3,798,098		3,798,098	10-39 years
Animal shelters and habitats		2,098,947		2,098,947	10-39 years
Park animals		1,147,833		1,166,583	5-10 years
Equipment - concession and related		232,281		232,281	3-15 years
Equipment and vehicles - yard and field		556,168		556,168	3-15 years
Vehicles - buses and rental		237,075		237,075	3-5 years
Rides and entertainment		224,578		224,578	5-7 years
Furniture and fixtures		26,057		26,057	5-10 years
Projects in process		277,905		34,290
Property and equipment, cost		17,598,584		17,373,719
Less accumulated depreciation		(3,885,202)		(3,718,919)
Property and equipment, net	$	13,713,382	$	13,654,800

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Note 2 - Significant Accounting Policies: Other Current Liabilities: Other Current Liabilities (Tables)

3 Months Ended

Jan. 03, 2021

Tables/Schedules

Other Current Liabilities

	January 3, 2021		September 27, 2020
Deferred revenue	$	299,254	$	273,386
Accrued wages and payroll taxes		182,243		42,774
Accrued income taxes		138,602		46,402
Accrued sales taxes		50,759		69,101
Accrued property taxes		931		68,530
Other accrued liabilities		93,150		99,197
Other current liabilities	$	764,939	$	599,390

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NOTE 3. ACQUISITION: Schedule of Sources of consideration paid to Aggieland Safari Members (Tables)

3 Months Ended

Jan. 03, 2021

Tables/Schedules

Schedule of Sources of consideration paid to Aggieland Safari Members

Sources of consideration paid to Aggieland Safari Members:
Cash advances	$	125,000
Cash at closing		1,250,000
2020 Term Loan		5,000,000
Aggieland Seller Note		728,500
Less cash received		(1,500)
Total consideration	$	7,102,000
Purchase price allocation:
Inventories	$	10,000
Property and equipment		7,131,000
Deferred revenue		(39,000)
Total net assets acquired	$	7,102,000

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NOTE 3. ACQUISITION: Schedule of supplemental pro forma information (Tables)

3 Months Ended

Jan. 03, 2021

Tables/Schedules

Schedule of supplemental pro forma information

	For the three months ended December 29, 2019
Total net sales	$	1,331,998
Net loss	$	(218,378)
Income per share - basic and diluted	$	(0.00)

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

3 Months Ended

Jan. 03, 2021

Tables/Schedules

Schedule of Debt

	As of
	January 3, 2021		September 27, 2020
Loan principal outstanding	$	7,040,700	$	7,089,053
Less: unamortized debt financing costs		(68,674)		(70,652)
Gross long-term debt		6,972,026		7,018,401
Less current portion of long-term debt,
net of unamortized costs and discount		(1,274,580)		(1,221,009)
Long-term debt	$	5,697,446	$	5,797,392

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

3 Months Ended

Jan. 03, 2021

Tables/Schedules

Schedule of Maturities of Long-term Debt

2021		1,127,929
2022		755,927
2023		661,976
2024		696,466
2025		688,895
thereafter		3,109,507
Total	$	7,040,700

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NOTE 10. BUSINESS SEGMENTS: Schedule of Revenue by Reporting Segments (Tables)

3 Months Ended

Jan. 03, 2021

Tables/Schedules

Schedule of Revenue by Reporting Segments

	For the three months ended
	January 3, 2021			December 29, 2019
Total net sales:
Georgia	$	1,569,011	$	898,436
Missouri		220,028		97,049
Texas		438,160		-
Consolidated	$	2,227,199	$	995,485
Income (loss) before income taxes:
Georgia	$	861,697	$	332,773
Missouri		(130,467)		(163,417)
Texas		(18,945)		-
Segment total		712,285		169,356
Corporate		(316,801)		(269,448)
Other income, net		14,564		7,962
Interest expense		(91,413)		(17,721)
Consolidated	$	318,635	$	(109,851)
	As of
	January 3, 2021		September 27, 2020
Total assets:
Georgia	$	8,928,183	$	8,352,457
Missouri		2,965,927		3,120,166
Texas		7,788,823		7,919,577
Corporate		153,416		130,083
Consolidated	$	19,836,349	$	19,522,283

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Note 1 - Organization (Details)	3 Months Ended
	Jan. 03, 2021
Details
Entity Incorporation, Date of Incorporation	Jul. 30, 1954
Entity Information, Former Legal or Registered Name	Painted Desert Uranium & Oil Co., Inc.
Entity Incorporation, State or Country Code	NV

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Note 2 - Significant Accounting Policies: Property and Equipment: Property, Plant and Equipment (Details) - USD ($)	3 Months Ended
	Jan. 03, 2021	Sep. 27, 2020
Land
Property, Plant and Equipment, Gross	$ 6,389,470	$ 6,389,470
Depreciable Lives	not applicable
Mineral rights
Property, Plant and Equipment, Gross	$ 276,000	276,000
Depreciable Lives	25 years
Ground Improvements
Property, Plant and Equipment, Gross	$ 2,334,172	2,334,172
Depreciable Lives	7-25 years
Building
Property, Plant and Equipment, Gross	$ 3,798,098	3,798,098
Depreciable Lives	10-39 years
Animal shelters and habitats
Property, Plant and Equipment, Gross	$ 2,098,947	2,098,947
Depreciable Lives	10-39 years
Park animals
Property, Plant and Equipment, Gross	$ 1,147,833	1,166,583
Depreciable Lives	5-10 years
Equipment - concession and related
Property, Plant and Equipment, Gross	$ 232,281	232,281
Depreciable Lives	3-15 years
Equipment and vehicles - yard and field
Property, Plant and Equipment, Gross	$ 556,168	556,168
Depreciable Lives	3-15 years
Vehicles - buses and rental
Property, Plant and Equipment, Gross	$ 237,075	237,075
Depreciable Lives	3-5 years
Rides and entertainment
Property, Plant and Equipment, Gross	$ 224,578	224,578
Depreciable Lives	5-7 years
Furniture and Fixtures
Property, Plant and Equipment, Gross	$ 26,057	26,057
Depreciable Lives	5-10 years
Projects in process
Property, Plant and Equipment, Gross	$ 277,905	34,290
Property, Plant and Equipment, Gross	17,598,584	17,373,719
Less accumulated depreciation	(3,885,202)	(3,718,919)
Property and equipment, net	$ 13,713,382	$ 13,654,800

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Note 2 - Significant Accounting Policies: Other Current Liabilities: Other Current Liabilities (Details) - USD ($)	Jan. 03, 2021	Sep. 27, 2020
Details
Deferred revenue	$ 299,254	$ 273,386
Accrued wages and payroll taxes	182,243	42,774
Accrued income taxes	138,602	46,402
Accrued sales taxes	50,759	69,101
Accrued property taxes	931	68,530
Other accrued liabilities	93,150	99,197
Other current liabilities	$ 764,939	$ 599,390

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NOTE 4. LONG-TERM DEBT (Details)	3 Months Ended
	Jan. 03, 2021 USD ($)
Long-term Debt	$ 7,040,700
2020 Term Loan from First Financial
Debt Instrument, Issuance Date	Apr. 27, 2020
Debt Instrument, Description	2020 Term Loan
Debt Instrument, Issuer	First Financial
Debt Instrument, Face Amount	$ 5,000,000
Debt Instrument, Collateral	secured by substantially all of the Aggieland Wild Animal – Texas assets, as well as guarantees from the Company and its subsidiaries
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Maturity Date	Apr. 27, 2031
Aggieland Seller Note
Debt Instrument, Issuance Date	Apr. 27, 2020
Debt Instrument, Description	Aggieland Seller Note
Debt Instrument, Face Amount	$ 750,000
Debt Instrument, Collateral	secured by a second priority subordinated lien and security interest in the acquired mineral rights and the animal inventory
Debt Instrument, Interest Rate, Stated Percentage	0.00%
Debt Instrument, Maturity Date	Jun. 30, 2021
Long-term Debt, Fair Value	$ 728,500
Debt Instrument, Discount	21,500
Long-term Debt	$ 740,655
2018 Term Loan
Debt Instrument, Issuance Date	Jul. 11, 2018
Debt Instrument, Description	2018 Term Loan
Debt Instrument, Face Amount	$ 1,600,000
Debt Instrument, Collateral	secured by a security deed on the assets of Wild Animal – Georgia
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Maturity Date	Jun. 11, 2021
Debt Instrument, Fee Amount	$ 15,680
Paycheck Protection Program ('PPP') loans
Debt Instrument, Description	Paycheck Protection Program (“PPP”) loans
Debt Instrument, Face Amount	$ 188,087
Debt Instrument, Collateral	unsecured
Debt Instrument, Interest Rate, Stated Percentage	1.00%
Long-term Debt	$ 189,451
Debt Instrument, Payment Terms	All payments are deferred for the first twelve months of these PPP loans, with accrued interest being added to the principal during the payment deferral period. After the initial twelve-month deferral period, monthly principal and interest payments will be due until maturity for any portion of the PPP loans not forgiven. Under the terms of the CARES Act, some or all of the PPP loan proceeds are eligible to be forgiven.
Paycheck Protection Program ('PPP') loans | Minimum
Debt Instrument, Issuance Date	Apr. 14, 2020
Paycheck Protection Program ('PPP') loans | Maximum
Debt Instrument, Issuance Date	Apr. 16, 2020

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NOTE 4. LONG-TERM DEBT: Interest Expense and Amortization of Debt Closing Costs (Details) - USD ($)	3 Months Ended
	Jan. 03, 2021	Dec. 29, 2019
Details
Long-term debt, Interest Expense	$ 91,413	$ 17,721
Amortization of debt closing costs	1,978	560
Amortization of Loan Discount	$ 4,640	$ 0

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NOTE 4. LONG-TERM DEBT: Schedule of Debt (Details) - USD ($)	Jan. 03, 2021	Sep. 03, 2020
Details
Term Loan principal outstanding	$ 7,040,700	$ 7,089,053
Less: unamortized debt closing costs	(68,674)	(70,652)
Gross long-term debt	6,972,026	7,018,401
Less current portion of long-term debt, net of unamortized debt closing costs	(1,274,580)	(1,221,009)
Long-term debt	$ 5,697,446	$ 5,797,392

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NOTE 4. LONG-TERM DEBT: Schedule of Maturities of Long-term Debt (Details)	Jan. 03, 2021 USD ($)
Details
Long-Term Debt, Maturity, Year One	$ 1,127,929
Long-Term Debt, Maturity, Year Two	755,927
Long-Term Debt, Maturity, Year Three	661,976
Long-Term Debt, Maturity, Year Four	696,466
Long-Term Debt, Maturity, Year Five	688,895
Long-Term Debt, Maturity, after Year Five	3,109,507
Long-term Debt	$ 7,040,700

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NOTE 5. LINES OF CREDIT (Details) - 2018 Refinancing with Synovus	3 Months Ended
	Jan. 03, 2021 USD ($)
Debt Instrument, Issuance Date	Jul. 11, 2018
Line of Credit Facility, Description	2018 Refinancing with Synovus
Line of Credit Facility, Maximum Borrowing Capacity	$ 350,000
Line of Credit Facility, Interest Rate Description	interest at a rate of 4.75% and interest only payments are due monthly
Debt Instrument, Interest Rate, Stated Percentage	4.75%
Debt Instrument, Maturity Date	Jul. 11, 2021

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Note 7. - Significant Transactions With Related Parties (Details)	3 Months Ended
	Jan. 03, 2021
2020 Van Voorhis Employment Agreement
Related Party Transaction, Date	Jun. 01, 2020
Related Party Transaction, Description of Transaction	Company and Dale Van Voorhis, the Company’s Chairman and Chief Executive Officer, entered into an employment agreement
2019 White Employment Agreement
Related Party Transaction, Date	Jan. 01, 2019
Related Party Transaction, Description of Transaction	Company and Todd R. White, the Company’s Chief Financial Officer, entered into an employment agreement (the “2019 White Employment Agreement”)
Newman Employment Agreement
Related Party Transaction, Date	May 01, 2018
Related Party Transaction, Description of Transaction	Company entered into an employment agreement with Michael D. Newman

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Note 8. - Income Taxes (Details) - USD ($)	3 Months Ended
	Jan. 03, 2021	Dec. 29, 2019
Details
Income (loss) before income taxes	$ 318,635	$ (109,851)

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NOTE 10. BUSINESS SEGMENTS: Schedule of Revenue by Reporting Segments (Details) - USD ($)			3 Months Ended
	Jan. 03, 2021	Sep. 27, 2020	Jan. 03, 2021	Dec. 30, 2018
Georgia
Total net sales:			$ 1,569,011	$ 898,436
Income (loss) before income taxes:			861,697	332,773
Total assets:	$ 8,928,183	$ 8,352,457
Missouri
Total net sales:			220,028	97,049
Income (loss) before income taxes:			(130,467)	(163,417)
Total assets:	2,965,927	3,120,166
Texas
Total net sales:			438,160	0
Income (loss) before income taxes:			(18,945)	0
Total assets:			7,788,823	7,919,577
Total net sales:			2,227,199	995,485
Income (loss) before income taxes:			318,635	(109,851)
Total assets:	19,836,349	19,522,283
Segment total
Income (loss) before income taxes:			712,285	169,356
Corporate
Income (loss) before income taxes:			(316,801)	(269,448)
Total assets:	$ 153,416	$ 130,083
Other income (expense), net
Income (loss) before income taxes:			14,564	7,962
Interest expense
Income (loss) before income taxes:			$ (91,413)	$ (17,721)