Yes Yes false Q2 0000216877 2025 --09-30 0000216877 pcv:ResortOperationsMember 2024-10-01 2025-03-31 0000216877 pcv:ResortOperationsMember 2023-10-01 2024-03-31 0000216877 pcv:RetailOperationsMember 2024-10-01 2025-03-31 0000216877 pcv:RetailOperationsMember 2023-10-01 2024-03-31 0000216877 pcv:PropertyLeaseIncomeMember 2024-10-01 2025-03-31 0000216877 pcv:PropertyLeaseIncomeMember 2023-10-01 2024-03-31 0000216877 2024-10-01 2025-03-31 0000216877 2023-10-01 2024-03-31 0000216877 pcv:ResortOperationsMember 2025-01-01 2025-03-31 0000216877 pcv:ResortOperationsMember 2024-01-01 2024-03-31 0000216877 pcv:RetailOperationsMember 2025-01-01 2025-03-31 0000216877 pcv:RetailOperationsMember 2024-01-01 2024-03-31 0000216877 pcv:PropertyLeaseIncomeMember 2025-01-01 2025-03-31 0000216877 pcv:PropertyLeaseIncomeMember 2024-01-01 2024-03-31 0000216877 2025-01-01 2025-03-31 0000216877 2024-01-01 2024-03-31 0000216877 2025-03-31 0000216877 2024-09-30 0000216877 2023-09-30 0000216877 2024-03-31 0000216877 us-gaap:CommonStockMember 2024-09-30 0000216877 us-gaap:RetainedEarningsMember 2024-09-30 0000216877 us-gaap:CommonStockMember 2023-09-30 0000216877 us-gaap:RetainedEarningsMember 2023-09-30 0000216877 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-10-01 2024-03-31 0000216877 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-09-30 0000216877 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-09-30 0000216877 us-gaap:RetainedEarningsMember 2023-10-01 2024-03-31 0000216877 us-gaap:CommonStockMember 2024-03-31 0000216877 us-gaap:RetainedEarningsMember 2024-03-31 0000216877 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-03-31 0000216877 us-gaap:RetainedEarningsMember 2024-10-01 2025-03-31 0000216877 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-10-01 2025-03-31 0000216877 us-gaap:CommonStockMember 2025-03-31 0000216877 us-gaap:RetainedEarningsMember 2025-03-31 0000216877 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-03-31 0000216877 us-gaap:LandMember 2025-03-31 0000216877 us-gaap:BuildingAndBuildingImprovementsMember 2025-03-31 0000216877 pcv:FurnitureFixturesAndEquipmentMember 2025-03-31 0000216877 us-gaap:TransportationEquipmentMember 2025-03-31 0000216877 us-gaap:ConstructionInProgressMember 2025-03-31 0000216877 us-gaap:LandMember 2024-09-30 0000216877 us-gaap:BuildingAndBuildingImprovementsMember 2024-09-30 0000216877 pcv:FurnitureFixturesAndEquipmentMember 2024-09-30 0000216877 us-gaap:TransportationEquipmentMember 2024-09-30 0000216877 us-gaap:ConstructionInProgressMember 2024-09-30 0000216877 pcv:OperatingLeaseRightOfUseAssetMember 2024-09-30 0000216877 pcv:OperatingLeaseRightOfUseAssetMember 2025-03-31 0000216877 2023-01-01 2023-03-31 0000216877 2023-04-01 2023-06-30 0000216877 2024-04-01 2024-06-30 0000216877 2023-07-01 2023-09-30 0000216877 2024-07-01 2024-09-30 0000216877 2023-10-01 2023-12-31 0000216877 2024-10-01 2024-12-31 0000216877 pcv:RVCampingSiteRentalsMember 2024-10-01 2025-03-31 0000216877 pcv:RVCampingSiteRentalsMember 2023-10-01 2024-03-31 0000216877 pcv:RVStorageAndTowingFeesMember 2023-10-01 2024-03-31 0000216877 pcv:RVStorageAndTowingFeesMember 2024-10-01 2025-03-31 0000216877 pcv:RetailStoreSalesMember 2023-10-01 2024-03-31 0000216877 pcv:RetailStoreSalesMember 2024-10-01 2025-03-31 0000216877 pcv:OtherAncillaryServicesMember 2023-10-01 2024-03-31 0000216877 pcv:OtherAncillaryServicesMember 2024-10-01 2025-03-31 0000216877 pcv:RVCampingSiteRentalsMember 2024-01-01 2024-03-31 0000216877 pcv:RVCampingSiteRentalsMember 2025-01-01 2025-03-31 0000216877 pcv:RVStorageAndTowingFeesMember 2024-01-01 2024-03-31 0000216877 pcv:RVStorageAndTowingFeesMember 2025-01-01 2025-03-31 0000216877 pcv:RetailStoreSalesMember 2024-01-01 2024-03-31 0000216877 pcv:RetailStoreSalesMember 2025-01-01 2025-03-31 0000216877 pcv:OtherAncillaryServicesMember 2024-01-01 2024-03-31 0000216877 pcv:OtherAncillaryServicesMember 2025-01-01 2025-03-31 0000216877 2024-07-31 0000216877 2024-07-01 2024-07-31 iso4217:USD xbrli:shares xbrli:pure xbrli:shares iso4217:USD

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2025

OR

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

For the transition period from __________ to ___________

Commission file number 0-8463

PISMO COAST VILLAGE, INC.

(Exact name of registrant as specified in its charter)

California 95-2990441
(State or other jurisdiction of (IRS Employer ID No.)
incorporation or organization)  
   
165 South Dolliver Street, Pismo Beach, CA  93449
(Address of Principal Executive Offices)    (Zip Code)

             

(805) 773-5649

Registrant's telephone number, including area code.

____________________________________________________________________________________

(Former name, former address, and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Act of 1934 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 Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Subsection 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, a smaller reporting company, or an emerging growth company.

[   ] Large accelerated filer [   ] Accelerated filer
[X] Non-accelerated filer [X] Smaller reporting company
[   ] Emerging growth company  

 


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

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

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13, or 15 (d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
YES [X ] NO [   ]

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
1,774

2


TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION 4
   
ITEM 1. Financial Statements 4
   
Balance Sheets as of March 31, 2025 (unaudited) and September 30, 2024 4
   
Statements of Comprehensive Income (Loss) for the Three and Six Months Ended March 31, 2025 and 2024 (unaudited) 5
   
Statements of Changes in Stockholders' Equity & Accumulated Other Comprehensive Income  for the Six Months Ended March 31, 2025 and 2024 (unaudited) 6
   
Statements of Cash Flows for the Six Months Ended March 31, 2025 and 2024 (unaudited) 7
   
Notes to Unaudited Financial Statements 8
   
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 16
   
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 24
   
ITEM 4. Controls and Procedures 25
   
PART II -- OTHER INFORMATION 27
   
ITEM 1. Legal Proceedings 27
   
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 27
   
ITEM 3. Defaults Upon Senior Securities 27
   
ITEM 4. Mine Safety Disclosures 27
   
ITEM 5. Other Information 27
   
ITEM 6. Exhibits 28
   
SIGNATURES 29

 

3


PART I - FINANCIAL INFORMATION

ITEM 1. Financial Statements

Pismo Coast Village, Inc.

Balance Sheets
as of March 31, 2025 (unaudited) and September 30, 2024

     March 31,       September 30,   
    2025     2024  
    (unaudited)        
Assets            
Current assets            
Cash and cash equivalents $ 401,000   $ 333,000  
Cash reserved for capital improvements and deferred maintenance   12,704,000     10,453,000  
Investments   -     1,098,000  
Accounts receivable, net of allowance for credit losses of $17,000 and $20,000, respectively   45,000     45,000  
Inventories, net   102,000     81,000  
Prepaid income taxes   300,000     396,000  
Prepaid expenses   155,000     389,000  
Total current assets   13,707,000     12,795,000  
             
Property and equipment, net   16,541,000     16,738,000  
             
  $ 30,248,000   $ 29,533,000  
             
Liabilities and Stockholders' Equity            
Current liabilities            
Accounts payable and accrued liabilities $ 387,000   $ 390,000  
Accrued wages and related   97,000     304,000  
Customer deposits   3,629,000     2,310,000  
Notes payable   62,000     210,000  
Current portion of operating lease obligation   44,000     41,000  
Current portion of finance lease obligations   105,000     113,000  
Total current liabilities   4,324,000     3,368,000  
             
Long-term liabilities            
Deferred income taxes   468,000     468,000  
Building security deposits   25,000     25,000  
Operating lease obligation, net of current portion   8,000     34,000  
Finance lease obligations, net of current portion   494,000     543,000  
Total liabilities   5,319,000     4,438,000  
             
Stockholders' equity            
Common stock - no par value, 1,800 shares authorized, 1,774 shares issued and outstanding   5,566,000     5,566,000  
Retained earnings   19,363,000     19,523,000  
Accumulated other comprehensive income   -     6,000  
Total stockholders' equity   24,929,000     25,095,000  
             
Total liabilities and stockholders' equity $ 30,248,000   $ 29,533,000  

The accompanying notes are an integral part of these (unaudited) financial statements.

4


Pismo Coast Village, Inc.

Statements of Comprehensive Income (Loss)
for the Three and Six Months Ended March 31, 2025 and 2024
(unaudited)

     Three months ended March 31,       Six months ended March 31,   
    2025     2024     2025     2024  
Revenue                        
Resort operations $ 1,769,000   $ 1,719,000   $ 3,615,000   $ 3,594,000  
Retail operations   140,000     136,000     290,000     287,000  
Property lease income   57,000     80,000     114,000     139,000  
Total revenue   1,966,000     1,935,000     4,019,000     4,020,000  
                         
Cost and expenses                        
Operating expenses   1,941,000     1,768,000     3,942,000     3,719,000  
Cost of goods sold   72,000     80,000     148,000     167,000  
Depreciation and amortization   140,000     100,000     277,000     207,000  
Total cost and expenses   2,153,000     1,948,000     4,367,000     4,093,000  
                         
Loss from operations   (187,000 )   (13,000 )   (348,000 )   (73,000 )
                         
Other income and expense, net   82,000     54,000     184,000     133,000  
                         
Income (loss) before provision for income tax   (105,000 )   41,000     (164,000 )   60,000  
                         
Income tax provision (benefit)   -     24,000     (4,000 )   27,000  
                         
Net income (loss) $ (105,000 ) $ 17,000   $ (160,000 ) $ 33,000  
                         
Weighted average shares (basic and diluted)   1,774     1,774     1,774     1,774  
                         
Net income (loss) per share (basic and diluted) $ (59 ) $ 10   $ (90 ) $ 19  
                         
Net income (loss) $ (105,000 ) $ 17,000   $ (160,000 ) $ 33,000  
                         
Other comprehensive income (loss)                        
       Change in unearned gain on investments   -     14,000     (6,000 )   21,000  
Comprehensive income (loss) $ (105,000 ) $ 31,000   $ (166,000 ) $ 54,000  
                         
Total comprehensive income (loss) per share  $ (59 ) $ 17   $ (94 ) $ 30  

 

The accompanying notes are an integral part of these (unaudited) financial statements.

5


Pismo Coast Village, Inc.

Statements of Changes in Stockholders' Equity & Accumulated Other Comprehensive Income
for the Six Months Ended March 31, 2025 and 2024
(unaudited)

                      Accumulated        
                      Other        
    Common Stock     Retained     Comprehensive        
    Shares     Amount     Earnings     Income     Total  
                               
Balance - September 30, 2023   1,774   $ 5,566,000   $ 18,423,000   $ 35,000   $ 24,024,000  
                               
Net income   -     -     33,000     -     33,000  
                               
Other comprehensive income   -     -     -     21,000     21,000  
                               
Balance - March 31, 2024   1,774   $ 5,566,000   $ 18,456,000   $ 56,000   $ 24,078,000  
                               
Balance - September 30, 2024   1,774   $ 5,566,000   $ 19,523,000   $ 6,000   $ 25,095,000  
                               
Net loss   -     -     (160,000 )   -     (160,000 )
                               
Other comprehensive loss   -     -     -     (6,000 )   (6,000 )
                               
Balance - March 31, 2025   1,774   $ 5,566,000   $ 19,363,000   $ -   $ 24,929,000  

The accompanying notes are an integral part of these (unaudited) financial statements.

6


Pismo Coast Village, Inc.

Statements of Cash Flows
for the Six Months Ended March 31, 2025 and 2024
(unaudited)

     Six months ended March 31,   
    2025     2024  
Cash flows from operating activities            
Net income (loss) $ (160,000 ) $ 33,000  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:            
Depreciation and amortization   277,000     207,000  
Deferred income tax expense   -     (2,000 )
Amortization of operating lease right-of-use asset   21,000     -  
Other non-cash expenses   13,000     23,000  
Changes in operating assets and liabilities:            
Accounts receivable   (1,000 )   (22,000 )
Inventories   (21,000 )   (48,000 )
Prepaid income taxes   96,000     (124,000 )
Prepaid expenses   234,000     211,000  
Accounts payable and accrued liabilities   (3,000 )   37,000  
Accrued wages and related   (207,000 )   (262,000 )
Customer deposits   1,319,000     1,282,000  
Operating lease liability   (23,000 )   -  
Net cash provided by operating activities   1,545,000     1,335,000  
             
Cash flows from investing activities            
Capital expenditures   (113,000 )   (201,000 )
Redemption (purchase) of investments, net   1,092,000     (7,000 )
Net cash provided by (used in) investing activities   979,000     (208,000 )
             
Cash flows from financing activities            
Principal payments on finance lease obligations   (57,000 )   (73,000 )
Principal payments on notes payable   (148,000 )   -  
Net cash used in financing activities   (205,000 )   (73,000 )
             
Net increase in cash and cash equivalents   2,319,000     1,054,000  
             
Cash and cash equivalents - beginning of period   10,786,000     9,293,000  
             
Cash and cash equivalents - end of period $ 13,105,000   $ 10,347,000  
             
Schedule of payments of interest and taxes            
Cash paid for income tax $ 50,000   $ 150,000  
Cash paid for interest $ 40,000   $ 4,000  

 The accompanying notes are an integral part of these (unaudited) financial statements.

7


Pismo Coast Village, Inc.

Notes to Unaudited Financial Statements

March 31, 2025

Note 1:  Nature of Business and Basis of Presentation

Description of Business

Pismo Coast Village, Inc. (the "Company" or "we" or "our" or "Resort") owns and manages a recreational vehicle ("RV") camping resort. Its revenue streams originate primarily from camping site rentals, recreational vehicle storage, tow services, and retail sales through a general store.

The Company operates in one operating segment, as an RV resort.  We determine our operating segment considering our overall management structure, how forecasts are approved, and how executive compensation is determined, as well as how our board of directors, who represent our chief operating decision maker, regularly review our operating results, assess performance, allocate resources, and make decisions regarding the Company's operations.

Basis of Presentation

The accompanying unaudited Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions on Form 10-Q pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. In accordance with these rules and regulations, we have omitted certain information and notes normally provided in our annual financial statements. The Company qualifies as a "smaller reporting company" as defined in Rule 12b-2 under the Securities Exchange Act of 1934, and, as such, may take advantage of specified reduced reporting requirements and deferred accounting standards adoption dates, and is relieved of other requirements that are otherwise generally applicable to other public companies.

In the opinion of management, the unaudited Financial Statements contain all adjustments, consisting only of normal recurring items, necessary for the fair presentation of our financial position and results of operations for the interim periods. The results of operations for the three and six months ended March 31, 2025 are not necessarily indicative of the results expected for the entire fiscal year.

Certain prior period amounts have been reclassified to conform to current year presentation. Namely, revenue from property leases is presented as a separate revenue line on the Statements of Comprehensive Income (Loss).

These unaudited Financial Statements should be read in conjunction with the audited Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024.

8

Pismo Coast Village, Inc.

Notes to Unaudited Financial Statements
March 31, 2025

Seasonality

The Company's business is seasonal in nature with the three months ending September 30, the summer, being its busiest quarter, as can be seen by the following table which depicts quarterly revenue and income (loss) from operations for the past nine quarters:

      2025     2024     2023  
Revenue for the three months ended                  
  March 31 $ 1,966,000   $ 1,935,000   $ 2,013,000  
  June 30       $ 2,680,000   $ 2,701,000  
  September 30       $ 3,027,000   $ 2,875,000  
  December 31       $ 2,053,000   $ 2,085,000  
                     
Income (loss) from operations for the three months ended              
  March 31 $ (187,000 ) $ (13,000 ) $ (33,000 )
  June 30       $ 832,000   $ 653,000  
  September 30       $ 481,000   $ 537,000  
  December 31       $ (161,000 ) $ (60,000 )

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect certain reported amounts and disclosures.  We base our estimates on both positive and negative evidence, historical experience and information available at the time these estimates are made. Examples of such estimates include estimates of the useful life of long-lived assets, assessments of long-lived asset impairments and allowances for credit losses. Actual results could differ materially from these estimates.

 

Note 2:  Significant Accounting Policies

During the six months ended March 31, 2025, there have been no changes in our significant accounting policies as described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024.

Disaggregation of Revenue

The following table summarizes disaggregated revenue totals and percentages of revenue for the three and six months ended March 31, 2025 and 2024 (unaudited):

    Three months ended March 31,           Six months ended March 31,        
    2025           2024           2025           2024        
                                                 
RV camping site rentals   1,246,000     63%   $ 1,237,000     64%   $ 2,586,000     64%   $ 2,572,000     64%  
RV storage and towing fees   481,000     25%     443,000     23%     945,000     24%     947,000     24%  
Retail store sales   140,000     7%     136,000     7%     290,000     7%     287,000     7%  
Property lease income   57,000     3%     80,000     4%     114,000     3%     139,000     3%  
Other ancillary services   42,000     2%     39,000     2%     84,000     2%     75,000     2%  
    1,966,000     100%   $ 1,935,000     100%   $ 4,019,000     100%   $ 4,020,000     100%  
9

Pismo Coast Village, Inc.

Notes to Unaudited Financial Statements
March 31, 2025

Tourism Taxes

As of March 31, 2025 and September 30, 2024, the Company had $68,000, and $80,000 in Transient Occupancy Taxes (TOT) and Tourism Business Improvement District (TBID) assessments due to the City of Pismo Beach and the County of San Luis Obispo included in accrued liabilities on the Balance Sheets, respectively.

Concentration of Credit Risk

The Company maintains its cash at several commercial banks in the United States and has significantly more cash and cash equivalents than would be covered by Federal Deposit Insurance Corporate ("FDIC") insurance with one bank.  To ensure that cash remains protected by FDIC insurance, the Company has placed its Cash Reserved for Capital Improvements and Deferred Maintenance in a Certificate of Deposit Account Registry Service ("CDARS") account.  By using a CDARS account, the Company's large deposits are divided into smaller amounts and placed with multiple FDIC insured banks that are members of the CDARS network.  Each member bank issues CDs in amounts under $250,000, so that the entire deposit balance is eligible for FDIC insurance.

The Company keeps day-to-day operating cash with a single bank in a non-CDARS account.  Due to large fluctuations in operating cash, there may be times when the amount of operating cash is above the $250,000 FDIC threshold. At September 30, 2024, the operating account balance was fully insured because it was less than the FDIC threshold. At March 31, 2025 the Company had cash deposits in the operating checking account with Pacific Premier Bank which exceeded the $250,000 federally insured limit by $141,000.

Fair Value Measurements

Our financial assets and liabilities consist principally of cash, cash equivalents, investments, accounts receivable, accounts payable, and rental deposits, and are reported at fair value.

The Company had no US Treasury instruments with an original maturity longer than three months as of March 31, 2025. The fair value of US Treasury instruments with an original maturity longer than three months as of September 30, 2024 was $1,098,000.

During the six months ended March 31, 2025, there was no material change in the items we measure and record at fair value on a recurring basis. Additionally, there were no transfers between levels of the fair value hierarchy for the six months ended March 31, 2025.

Advertising

Advertising expense was $10,000 and $4,000 for the three months ended March 31, 2025 and 2024, respectively.  Advertising expense was $20,000 and $18,000 for the six months ended March 31, 2025 and 2024, respectively.

10

Pismo Coast Village, Inc.

Notes to Unaudited Financial Statements
March 31, 2025

Recent Accounting Pronouncements Issued But Not Yet Adopted

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2024-03, Income Statement -Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"). ASU 2024-03 requires additional disclosures about the nature of expenses included in the income statement, such as purchases of inventory, employee compensation and depreciation. ASU 2024-03 is effective for public business entities for annual periods beginning after December 15, 2026 and interim reporting periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2024-03 on its financial statements and related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 expands income tax disclosures to provide information to better assess how an entity's operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of ASU 2023-09 on its financial statements and related disclosures.

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 expands segment disclosures for public companies. ASU 2023-07 is effective for public business entities for annual periods beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-07 on its financial statements and related disclosures.

 

Note 3:  Balance Sheet Components

Property and Equipment

At March 31, 2025 and September 30, 2024, property and equipment include the following:

     March 31,       September 30,   
    2025     2024  
    (unaudited)        
Land $ 11,609,000   $ 11,609,000  
Building and resort improvements   13,405,000     13,382,000  
Furniture, fixtures and equipment   1,033,000     1,033,000  
Transportation equipment   1,082,000     1,062,000  
Operating lease right-of-use asset   85,000     85,000  
Construction in progress   191,000     147,000  
    27,405,000     27,318,000  
Less accumulated depreciation and amortization   (10,864,000 )   (10,580,000 )
  $ 16,541,000   $ 16,738,000  

Transportation equipment includes assets under finance leases. Refer to Note 5 for additional information.

11

Pismo Coast Village, Inc.

Notes to Unaudited Financial Statements
March 31, 2025

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities include trade payables, tourism taxes payable, property taxes payable, and other liabilities. The following table summarizes accounts payable and accrued liabilities as of March 31, 2025 and September 30, 2024:

     March 31,       September 30,   
    2025     2024  
    (unaudited)        
Trade accounts payable $ 115,000   $ 73,000  
Accrued expenses   70,000     99,000  
Tourism taxes payable   68,000     80,000  
Property taxes payable   66,000     66,000  
Other   68,000     72,000  
  $ 387,000   $ 390,000  

Accrued expenses in the table above relate primarily to accrued utilities and other accrued operating expenses.  Other accrued liabilities in the table above relate primarily to unclaimed property and gift certificates.

Accrued Wages and Related

Accrued wages and related are primarily related to the Company's annual bonus and employee vacation liabilities. The Company's annual bonus for the prior fiscal year is typically paid during November of the following year.

 

Note 4:  Financing Transactions

Insurance Financing

During July 2024, the Company entered into an agreement to finance a portion of its commercial insurance premiums. The amount financed totaled $296,000 and carries a 12.9% interest rate. As of March 31, 2025 and September 30, 2024, the amount of this note totaled $62,000 and $210,000, respectively. This note is expected to be fully paid by May 2025.  Interest expense associated with this agreement totaled $3,000 and $9,000 during the three and six months ended March 31, 2025.

Line of Credit

The Company has a revolving line of credit with Pacific Premier Bank for $500,000, expiring April 1, 2026. There was no outstanding balance on the line of credit as of March 31, 2025 or September 30, 2024.

12

Pismo Coast Village, Inc.

Notes to Unaudited Financial Statements
March 31, 2025

Note 5:  Leases

The Company has both finance and operating leases.  Finance leases are primarily for transportation equipment and are generally 60-84 months in duration with maturities through September 2031. The Company's one operating lease is for a storage lot and has a maturity date in 2026.

The following table summarizes the future minimum payments under lease liabilities as of March 31, 2025:

For the Fiscal Year Ending Sept. 30,      Finance Leases     Operating Lease  
2025 (6 months)   $ 86,000   $ 24,000  
2026     162,000     32,000  
2027     154,000     -  
2028     154,000     -  
2029     131,000     -  
Thereafter     107,000     -  
Total future minimum payments     794,000     56,000  
Less amount representing interest     (195,000 )   (4,000 )
Total lease obligations     599,000     52,000  
Less current portion of lease obligations     (105,000 )   (44,000 )
Lease obligations, net of current portion   $ 494,000   $ 8,000  

The following table summarizes the components of the lease cost for the three and six months ended March 31, 2025 and 2024 (unaudited): 

    Three months ended March 31,     Six months ended March 31,
    2025     2024     2025     2024  
Finance lease cost:                        
Amortization of right-of-use assets $ 33,000   $ 13,000   $ 67,000   $ 27,000  
Interest on lease liabilities   18,000     1,000     35,000     2,000  
Total finance lease cost $ 51,000   $ 14,000   $ 102,000   $ 29,000  
                         
Operating lease cost $ 11,000   $ 11,000   $ 25,000   $ 22,000  

Supplemental balance sheet information related to leases as of March 31, 2025 and September 30, 2024 is as follows:

     March 31,       September 30,   
    2025     2024  
    (unaudited)        
Right-of-use assets, gross $ 836,000   $ 836,000  
Accumulated amortization   (276,000 )   (210,000 )
Net asset value included in property and equipment, net $ 560,000   $ 626,000  

 

13

Pismo Coast Village, Inc.

Notes to Unaudited Financial Statements
March 31, 2025

The following table summarizes the weighted-average remaining lease term and weighted-average discount rate as of March 31, 2025 and September 30, 2024:

   March 31,     September 30, 
  2025   2024
  (unaudited)    
Weighted-average remaining lease term      
       Finance leases 5.5 years   4.5 years
       Operating lease 1.25 years   1.75 years
       
Weighted-average discount rate      
       Finance leases 11.1%   8.7%
       Operating lease 12.0%   12.0%

 

Note 6:  Property Leases - Lessor

The Company is the lessor on various property leases, which currently represent approximately $19,000 in monthly income and extend over periods through 2038. These leases relate to two buildings, as well as several cell towers and a billboard on our storage properties.  The leases have durations ranging from two to twenty years and are generally renewable for additional five-year durations. The following table summarizes the future minimum operating lease income under these leases:

For the Fiscal Year Ending Sept. 30,         
2025 (6 months)   $ 115,000  
2026     193,000  
2027     153,000  
2028     154,000  
2029     156,000  
Thereafter     717,000  
    $ 1,488,000  

 

Note 7:  Common Stock

Each share of stock is intended to provide the shareholder with free use of the resort for a maximum of 45 days per year.  If the Company is unable to generate sufficient funds from the public, the Company may be required to charge shareholders for services.

A shareholder is entitled to a pro rata share of any dividends as well as a pro rata share of the assets of the Company in the event of its liquidation or sale. The shares are personal property that provide each shareholder rights to certain benefits as described above and do not constitute an interest in real property. The ownership of a share does not entitle the owner to any interest in any particular site or camping period.

14

Pismo Coast Village, Inc.

Notes to Unaudited Financial Statements
March 31, 2025

Note 8:  Income Taxes

Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. The majority of the balance is due to timing differences of depreciation expense, caused by the use of accelerated depreciation methods for tax calculations.

 

Note 9:  Employee Retirement Plans

The Company is the sponsor of a 401(k) profit sharing pension plan, which covers substantially all full-time employees.  Employer contributions are discretionary and are determined on an annual basis.  The Company's matching portion of the 401(k) safe harbor plan was $20,000 and $25,000 for the three months ended March 31, 2025 and 2024, respectively, and $38,000 and $54,000 for the six months ended March 31, 2025 and 2024, respectively.

 

Note 10: Subsequent Events

Events subsequent to March 31, 2025 have been evaluated through May 15, 2025, which is the date the financial statements were issued, and management did not identify any subsequent events that require adjustment or disclosure in the financial statements.

15


ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Statement on Forward Looking Information

The following analysis discusses the Company's financial condition as of March 31, 2025, compared with March 31, 2024. The discussion should be read in conjunction with the unaudited financial statements and the related notes to the financial statements included elsewhere in this Form 10-Q. 

Certain information included herein contains statements that may be considered forward-looking statements, such as statements relating to anticipated expenses, capital spending and financing sources. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made herein. These risks and uncertainties include, but are not limited to, those relating to competitive industry conditions, California tourism and weather conditions, dependence on existing management, leverage and debt service, the regulation of the recreational vehicle industry, domestic or global economic conditions, and changes in federal or state tax laws or the administration of such laws.

Management's Discussion and Analysis of Financial Condition and Results of Operations

This section is organized as follows:

  • Overview: A discussion of the Company's business operations.
  • Liquidity and Capital Resources: An analysis of changes in our balance sheets and cash flows, and a discussion of our financial condition and potential sources of liquidity.
  • Results of Operations: An analysis and discussion of our financial results comparing our results of operations for the current fiscal year to the prior fiscal year, and of the prior fiscal year compared to the previous fiscal year.
  • Critical Accounting Estimates: A discussion of the accounting estimates that we believe are most important to understand the assumptions and judgments incorporated in our reported financial results and forecasts, as well as recent accounting pronouncements that have had or are expected to have a material impact on our results of operations.

16


Overview

Pismo Coast Village, Inc. operates as a 400-space recreational vehicle resort located along the coast of Central California. The resort offers a full range of services, such as a general store, video arcade, laundromat, and an RV storage operation.

The Company is authorized to issue 1,800 shares of one class, all with equal voting rights and all being without par value. Transfers of shares are restricted by Company bylaws. One such restriction is that transferees must acquire shares with intent to hold the same for the purpose of enjoying camping rights and other benefits to which a shareholder is entitled. Each share of stock is intended to provide the shareholder with the opportunity for 45 nights of free site use per year. However, if the Company is unable to generate sufficient funds from the public, the Company may be required to charge shareholders for services.

Management is charged with the task of developing sufficient funds to operate the Resort through site sales to general public guests by allocating a minimum of 175 sites for general public use and allocating a maximum of 225 sites for shareholder free use. The other service centers are expected to generate sufficient revenue to support themselves and/or produce a profit.

The Company continues to promote and depend upon recreational vehicle camping as the primary source of revenue. The rental of campsites to the general public provides income to cover expenses, complete capital improvements, and allow shareholders up to 45 free nights camping annually. Additional revenues come from RV storage and spotting, an on-site convenience store, property leases and other ancillary activities such as a restaurant, laundromat, arcade, and recreational activities.

The Central Coast remains a highly sought-after destination for RV enthusiasts actively seeking quality accommodations. RVing continues to provide an affordable and immersive outdoor experience, and the Company is proud to deliver top-tier facilities and services in this popular location.

According to the 2025 KOA Camping & Outdoor Hospitality Report, the outlook for the industry remains strong, with 71% of campers planning trips. Among them, 54% have already booked or plan to book

their stay within five weeks of their trip.  Of those planning to camp, 63% are staying within 150 miles of their home.

Many first-time campers prefer campgrounds or outdoor resorts that offer a variety of amenities and services.  As a result, they often have good to great experiences.  In fact, 87% who report having a great experience are likely to continue to camp in the future. Beach camping has emerged as the top wellness trend, with more campers seeking the calming effects of the ocean.  Boomers (68%) and Gen X (63%) are especially drawn to beach walks as a way to unwind.

The rising costs of travel have impacted 8-in-10 campers.  Campers are adjusting their travel plans, spending less while traveling without giving up their trips, with only 9% planning fewer nights under the stars compared to last year.  Earlier in the year, travelers were optimistic about their ability to spend more on travel experiences, with 74% planning to spend the same or more than in 2024.  With recent shifts in the economy, the percentage of travelers who say they plan to spend less while traveling has doubled from 13% to 26% in just three months.

17


RV storage remains in demand and a primary revenue source for the Company. As of March 2025, the waitlist for new storage clients exceeds 300. To meet this demand, the Company is progressing with plans to develop an estimated 150-unit storage facility on a new 4.42 acre property in Nipomo. RV storage offers customers several advantages, including eliminating the stress of towing, reducing the need to own a tow vehicle, enabling shared use among family members, and providing added convenience.

Continued investment in resort enhancements remains a top priority to ensure a premier experience for both guests and shareholders. The resort is recognized as a leader in the industry, with accolades from reputable organizations such as Good Sam for its exceptional facilities and high standards. The Company's dedication to quality, value, and customer satisfaction is reflected in its success, driven by repeat business, positive word of mouth, and guest referrals.

The Company's marketing strategy focuses on digital platforms, social media content, advertising in national directories, and placements in leading trade magazines. These initiatives are designed to strengthen the Company's visibility and ensure sustained growth in the highly competitive outdoor hospitality market.

Liquidity and Capital Resources

The Company's policy is to use its ability to generate operating cash flow to meet its expected future needs for internal growth. The Company has continued to maintain sufficient cash so as to not require the use of a short-term line of credit during the off-season period, and the Company expects to be able to do so (although no assurance of continued cash flow can be given).

Net cash provided by operating activities was approximately $1.5 million in the six months ended March 31, 2025, compared to $1.3 million in the same period of 2024. The increase in net cash provided by operating activities is due to the timing of customer deposits, which are generally required six months in advance, so significant deposits are received in the six months prior to the summer season.

Working capital was $9.4 million at the end of both March 31, 2025 and September 30, 2024.

The Company plans approximately $1.1 million of additional capital expenditures in fiscal year 2025 to further enhance the Resort facilities and services. The most significant capital project is development of the 4.42 acre property in Nipomo for RV Storage. In addition, the Company is in the process of renovating the mini golf course. Funding for these projects is expected to come from normal operating cash flows and cash reserves. These capital expenditures are expected to increase the Resort's value to its shareholders and the general public.

18


With the possibility of requiring additional funds for planned capital improvements and the winter season, the Company maintains a $500,000 Line of Credit to ensure funds will be available if required. In anticipation of future large projects, the Board of Directors has instructed management to build operational cash balances. The Company has no other liabilities to creditors other than current accounts payable arising from its normal day-to-day operations, financing associated with the company's annual corporate insurance policy and financing leases, and advance Resort rental reservation deposits, none of which are in arrears.

 

The Board of Directors continues its previously established policy of adopting a stringent conservative budget for fiscal year 2025, which projects a positive cash flow of approximately $1.0 million from operations. This projection is based on paid site occupancy reflecting similar occupancy as experienced in fiscal year 2024. While the Company projects a positive cash flow, this cannot be assured for fiscal year 2025.

Results of Operations

The Company's revenue streams originate primarily from three sources: (a) RV camping site rentals, (b) RV storage & towing fees, and (c) retail sales through a general store. In addition, the Company generates revenue from leases of real property, such as our RV retail storefront, RV repair facility and cell towers on our real property and from other ancillary services, such as the restaurant, arcade and laundromat.

Three months ended March 31, 2025 compared to the three months ended March 31, 2024

    Three months ended March 31,        
    2025           2024        
RV camping site rentals $ 1,246,000     63%   $ 1,237,000     64%  
RV storage and towing fees   481,000     25%     443,000     23%  
Retail store sales   140,000     7%     136,000     7%  
Property lease income   57,000     3%     80,000     4%  
Other ancillary services   42,000     2%     39,000     2%  
  $ 1,966,000     100%   $ 1,935,000     100%  

 

Overall, total revenue was relatively flat in the three months ended March 31, 2025 compared to the same period of 2024 (a $31,000 or 2% increase). 

RV camping site rental revenues increased $9,000 to $1,246,000 in the three months ended March 31, 2025 compared to $1,237,000 in the same period of 2024 primarily due to a $5 per night rate increase (7%) offset by the impact of 2% lower occupancy during 2025 than 2024.  Occupancy was lower in 2025 than 2024 because of the timing of weekends and holidays during the calendar quarter.

    Three months ended March 31,        
    2025           2024        
Paid RV camping site nights   14,571     68%     14,958     68%  
Unpaid shareholder nights   6,747     32%     7,029     32%  
Total Occupancy   21,318     100%     21,987     100%  
                         
Occupancy %   59%           61%        
                         
Sites Not Occupied   14,682     41%     14,013     39%  
Total Capacity   36,000           36,000        

 

19


RV storage & towing fees increased $38,000 to $481,000 in the three months ended March 31, 2025 compared to $443,000 in the same period of 2024, due to a $5 per month rate increase effective January 2025 while our storage lots continued to be at full capacity and fluctuations in occupancy that impact towing fees.

Retail store revenues increased $4,000 to $140,000 in the three months ended March 31, 2025 compared to $136,000 in the same period of 2024 due to the offsetting impact of occupancy and product mix.  The company strives to maintain consistent pricing, which leads to moderate margins for staples such as groceries, ice, wood, and RV parts. Demand for logo-based merchandise drove up revenue as guests purchased newly offered premium apparel items.

Property lease income, which is primarily associated with rental of the RV repair facilities, decreased $23,000 to $57,000 in the three months ended March 31, 2025 compared to $80,000 in same period of 2024 due to a delayed lease renewal from 2023.

Operating expenses increased $173,000 to $1,941,000 in the three months ended March 31, 2025 compared to $1,768,000 in same period of 2024. The increase is primarily due an $87,000 increase in professional fees associated with accounting, payroll and compliance, a $43,000 increase in energy costs, and a $34,000 increase in storage operating costs.

Cost of goods sold decreased $8,000 to $72,000 in the three months ended March 31, 2025 compared to $80,000 in the same period of 2024 primarily due to the mix of products sold in the store.  During 2024 we sold an increased proportion of higher margin apparel as our guests are enjoying new logo apparel.

Depreciation and amortization expense increased $40,000 to $140,000 in the three months ended March 31, 2025 compared to $100,000 in the same period of 2024 due primarily to depreciation on three new tow vehicles that were put in service and additional equipment leases in late 2024.

Other income and expense, net increased $28,000 to $82,000 in the three months ended March 31, 2025, compared to $54,000 in the same period of 2024, primarily because of additional interest on increased cash reserves, as well as increased interest rates in 2025 compared to 2024.

Although the supply-demand balance generally remains favorable, future-operating results could be impacted by changes in inflation and the economy that lead to increases or decreases in demand. Depending on the nature of business and economic cycles and trends, rates may be adjusted accordingly, if deemed necessary. Changes in demand could limit the Company's ability to pass through inflationary increases in operating costs as higher rates.

Additionally, increases in transportation and fuel costs or sustained recessionary periods could unfavorably impact future results. However, the Company believes that its financial strength and market presence will enable it to remain extremely competitive. The company intends to continue to market site usage at its highest value and believes that currently this will not negatively impact the Company's ability to capture an optimum market share.

20


Six months ended March 31, 2025 compared to the six months ended March 31, 2024

    Six months ended March 31,        
    2025           2024        
                         
RV camping site rentals $ 2,586,000     64%   $ 2,572,000     64%  
RV storage and towing fees   945,000     24%     947,000     24%  
Retail store sales   290,000     7%     287,000     7%  
Property lease income   114,000     3%     139,000     3%  
Other ancillary services   84,000     2%     75,000     2%  
  $ 4,019,000     100%   $ 4,020,000     100%  

 

Overall, total revenue was flat in the six months ended March 31, 2025 compared to the same period of 2024 (a $1,000 decrease). 

RV camping site rental revenues increased $14,000 to $2,586,000 in the six months ended March 31, 2025 compared to $2,572,000 in the same period of 2024 primarily due to a $5 per night rate increase (7%) offset by the impact of 3% lower occupancy during 2025 than 2024.  Occupancy was lower in 2025 than 2024 because of the timing of weekends and holidays during the calendar quarter.

    Six months ended March 31,        
    2025           2024        
                         
Paid RV camping site nights   30,492     66%     32,847     67%  
Unpaid shareholder nights   15,916     34%     15,943     33%  
    Total Occupancy   46,408     100%     48,790     100%  
                         
Occupancy %   64%           67%        
                         
Sites Not Occupied   26,392     36%     24,010     33%  
Total Capacity   72,800           72,800        

RV storage & towing fees decreased $2,000 to $945,000 in the six months ended March 31, 2025 compared to $947,000 in the same period of 2024, consistent with our storage lots being at full capacity and fluctuations in occupancy that impact towing fees.

Retail store revenues increased $3,000 to $290,000 in the six months ended March 31, 2025 compared to $287,000 in the same period of 2024 due to the offsetting impact of occupancy and product mix.  The company strives to maintain consistent pricing, which leads to moderate margins for staples such as groceries, ice, wood, and RV parts. Demand for logo-based merchandise drove up revenue as guests purchased newly offered premium apparel items.

Property lease income, which is primarily associated with rental of the RV repair facilities, decreased $25,000 to $114,000 in the six months ended March 31, 2025 compared to $139,000 in same period of 2024 due to a delayed lease renewal from 2023.

21


Operating expenses increased $223,000 to $3,942,000 in the six months ended March 31, 2025 compared to $3,719,000 in same period of 2024. The increase is primarily due a $277,000 increase in professional fees associated with accounting, audit and compliance and a $46,000 increase in utilities expenses.  These additional expenses were offset by a $101,000 decrease in facility related costs due to fewer maintenance projects.

Cost of goods sold decreased $19,000 to $148,000 in the six months ended March 31, 2025 compared to $167,000 in the same period of 2024 primarily due to the mix of products sold in the store.  During 2024 we sold an increased proportion of higher margin apparel as our guests are enjoying new logo apparel.

Depreciation and amortization expense increased $70,000 to $277,000 in the six months ended March 31, 2025 compared to $207,000 in the same period of 2024 due primarily to depreciation on three new tow vehicles that were put in service and additional equipment leases in late 2024.

Other income and expense, net increased $51,000 to $184,000 in the six months ended March 31, 2025, compared to $133,000 in the same period of 2024, primarily because of additional interest on increased cash reserves, as well as increased interest rates in 2025 compared to 2024.

Although the supply-demand balance generally remains favorable, future-operating results could be impacted by changes in inflation and the economy that lead to increases or decreases in demand. Depending on the nature of business and economic cycles and trends, rates may be adjusted accordingly, if deemed necessary. Changes in demand could limit the Company's ability to pass through inflationary increases in operating costs as higher rates.

Additionally, increases in transportation and fuel costs or sustained recessionary periods could unfavorably impact future results. However, the Company believes that its financial strength and market presence will enable it to remain extremely competitive. The company intends to continue to market site usage at its highest value and believes that currently this will not negatively impact the Company's ability to capture an optimum market share.

22


Seasonality

The business of the Company is seasonal and is concentrated on prime days of the year which are defined as follows: President's Day weekend, Easter week, Memorial Day weekend, summer vacation months, Labor Day weekend, Thanksgiving week, and Christmas/New Year's week.

Occupancy is impacted by weather patterns, as demand decreases during the rainy season and also in years with more rain. Additionally, occupancy within any particular quarter is impacted by the timing of weekends and holidays within that calendar quarter.

Due the seasonal impact, fall and winter months derive less revenue and profit than the rest of the year. Revenue, paid occupancy and income (loss) from operations for the past nine quarters were as follows:

      2025     2024     2023  
Revenue for the three months ended              
  March 31 $ 1,966,000   $ 1,935,000   $ 2,013,000  
  June 30       $ 2,680,000   $ 2,701,000  
  September 30       $ 3,027,000   $ 2,875,000  
  December 31       $ 2,053,000   $ 2,085,000  
                     
Paid Occupancy for the three months ended (nights)              
  March 31   14,571     14,958     15,833  
  June 30         20,339     22,665  
  September 30         22,914     22,961  
  December 31         15,921     17,889  
                     
Income (loss) from operations for the three months ended              
  March 31 $ (187,000 ) $ (13,000 ) $ (33,000 )
  June 30       $ 832,000   $ 653,000  
  September 30       $ 481,000   $ 537,000  
  December 31       $ (161,000 ) $ (60,000 )

Occupancy during the three months ended March 31, 2025 was slightly less than the same period of 2024 due primarily to the timing of weekends and holidays. Revenue for the three months ended March 31, 2025 was slightly up from the same period of 2024, due primarily to the $5 per night rate increase established during 2024. Loss from operations for the three months ended March 31, 2025 increased compared to the same period of 2024 due primarily to increased professional advisor fees associated with the annual independent audit.

Occupancy during the quarter ending June 30, 2025 is expected to be seasonally higher than the three months ended March 31, 2025, because it is spring, resulting in higher revenue and profitability.

23


Critical Accounting Estimates

The Company's consolidated financial statements are prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, as well as related disclosure of contingent assets and liabilities. In some cases, management could reasonably have used different accounting policies and estimates. In some cases, changes in the accounting estimates are reasonably likely to occur from period to period. Accordingly, actual results could differ materially from our estimates. To the extent that there are material differences between these estimates and actual results, the Company's financial condition or results of operations will be affected.

Management bases estimates upon past experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis. We refer to accounting estimates of this type as critical accounting policies and estimates. Our critical accounting policies are described in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, of our 2024 Annual Report on Form 10-K.

Management's Discussion and Analysis of Financial Condition and Results of Operations is based upon our Financial Statements, which have been prepared in accordance with U.S. GAAP. Our significant accounting policies are more fully described in Note 2, Significant Accounting Policies, in the Notes to Financial Statements of our 2024 Annual Report on Form 10-K. There were no changes to our significant accounting policies during the six months ended March 31, 2025.

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

Not Applicable.

24


ITEM 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management is responsible for establishing internal control over financial reporting ("ICFR") as defined in Rules 13a-I5(f) and 15(d)-15(f) under the 1934 Act. Our ICFR is intended to be designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP. Our ICFR is expected to include policies and procedures that management believes are necessary that:

1. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company

2. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and our directors; and

3. provide reasonable assurance regarding the prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.

Inherent Limitations on Effectiveness of Controls

Management recognizes that there are inherent limitations in the effectiveness of any system of internal control, and accordingly, even effective internal control can provide only reasonable assurance with respect of financial statement preparation and may not prevent or detect misstatements. In addition, effective internal control at a point in time may become ineffective in future periods because of changes in conditions or due to deterioration in the degree of compliance with our established policies and procedures.

Controls Assessment

As of September 30, 2024, management with the participation of our CEO, General Manager and CFO, assessed the effectiveness of the Company's internal control over financial reporting (ICFR) based on the criteria for effective ICFR established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and SEC guidance on conducting such assessments by smaller reporting companies and non-accelerated filers. Based on that assessment, management concluded that our disclosure controls and procedures were effective during periods covered by this report (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act).

In connection with our management's assessment of controls over financial reporting during the years ended September 30, 2023 and 2024, we identified a material weakness. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

25


The material weakness that we identified is that we did not have sufficient qualified internal resources related to internal controls over financial reporting. To address this material weakness, during the first quarter of 2024 we evaluated our ongoing staffing requirements, appointed a new CFO and implemented additional review controls to ensure timely and accurate reconciliations, as well as proper financial reporting.  During the quarter ended September 30, 2024, management further supplemented the company's internal accounting resources with an experienced temporary controller consultant who was responsible for reviewing our internal control processes and performing second level reviews of financial reporting under the oversight of the recently appointed Chief Financial Officer. As of March 31, 2025, we conclude that we have not sufficiently remediated this control deficiency because the additional controls have not been operating effectively for a sufficient period of time.

Changes in Internal Control over Financial Reporting

Except for the remediation efforts described above, there were no changes to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

26


PART II -- OTHER INFORMATION

ITEM 1. Legal Proceedings

There are no pending legal proceedings against the Company other than routine litigation incidental to the business.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not Applicable

ITEM 3. Defaults Upon Senior Securities

Not Applicable

ITEM 4. Mine Safety Disclosures

Not Applicable

ITEM 5. Other Information

Not Applicable

27


ITEM 6. Exhibits

Exhibit No. Description of Exhibit
   
31.1 Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (George Pappi, President and Chairman of the Board, and Chief Executive Officer/principal executive officer)
   
31.2 Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Suzanne M Colvin, Chief Financial Officer, principal financial officer, and principal accounting officer)
   
32.1 Certification Pursuant to 18 U. S. C. Subsection 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (George Pappi, President and Chairman of the Board, and Chief Executive Officer/principal executive officer and Suzanne M Colvin, Chief Financial Officer, principal financial officer, and principal accounting officer)
   
101.INS Inline XBRL Instance Document–the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document
   
101.SCH Inline XBRL Taxonomy Extension Schema Document
   
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document
   
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document
   
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document
   
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document
   
104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

28


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.

 

PISMO COAST VILLAGE, INC.

(Registrant)

 

Date: May 15, 2025 

Signature:     /s/ GEORGE PAPPI

George Pappi, President, and Chairman of the Board

 (Chief Executive Officer/Principal executive officer)

 

 

Date: May 15, 2025 

Signature:     /s/ SUZANNE M COLVIN

Suzanne M Colvin, V.P. - Finance/Chief Financial Officer

(Principal financial officer and principal accounting officer)

 

 

29